Issuu

ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF BELTON, TEXAS For the Fiscal Year Ended September 30, 2023 CITY MANAGER Sam A. Listi Prepared by: William Michael Rodgers, CPA Director of Finance

Megan M. Odiorne, CGFO Assistant Director of Finance

Christina L. Sparks Senior Accountant

Amanda F. Cox Senior Accountant

Margaret L. Van de Plas Court Administrator

Gwen L. Curry Deputy Court Clerk

Silvia R. Ramos Customer Service Representative II

Amanda R. Hernandez Customer Service Representative II

Mary Katherine Crawford Customer Service Representative I

Please visit us at our website: www.beltontexas.gov

City of Belton Texas Year Ended September 30, 2023 Table of Contents Page Number

Introductory Section Letter of Transmittal Organization Chart Principal Officials GFOA Certificate of Achievement for Excellence in Financial Reporting

i–v vi vii ix

Financial Section Independent Auditor’s Report

Management’s Discussion and Analysis

Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position

Statement of Activities

20 - 21

Fund Financial Statements: Balance Sheet – Governmental Funds

Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities

Statement of Net Position – Proprietary Funds

Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds

Statement of Cash Flows – Proprietary Funds

City of Belton Texas Year Ended September 30, 2023 Table of Contents Page Number

Financial Section (continued) Basic Financial Statements: (continued) Notes to Financial Statements

Required Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Budgetary Basis - General Fund

Schedule of Changes in the City’s Net Pension Liability and Related Ratios – Employees’ Pension Plan

Schedule of Contributions – Employees’ Pension Plan

Schedule of Changes in the City’s Total OPEB Liability and Related Ratios – Employees’ OPEB Plan

Schedule of Contributions – Employees’ OPEB Plan

Combining and Individual Fund Statements and Schedules: Nonmajor Governmental Funds: Combining Balance Sheet – Nonmajor Governmental Funds

Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Budgetary Basis – Hotel/Motel Tax Fund

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Budgetary Basis – Debt Service Fund

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Budgetary Basis – TIRZ Fund

City of Belton Texas Year Ended September 30, 2023 Table of Contents Page Number

Financial Section (continued) Internal Service Funds: Combining Statement of Net Position – Internal Service Funds

Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds

Combining Statement of Cash Flows – Internal Service Funds

Statistical Section Net Position by Component

100

Changes in Net Position

102

Fund Balances of Governmental Funds

106

Changes in Fund Balances of Governmental Funds

108

General Governmental Tax Revenues by Source

110

Municipal Sales Tax History

111

Principal Property Taxpayers

113

Assessed Value and Adjusted Taxable Value of Property

114

Property Tax Levies and Collections

116

Direct and Overlapping Governments

118

Direct and Overlapping Governmental Activities Debt – General Obligation Bonds

120

Valuation, Exemptions and Ad Valorem Tax Debt

121

Tax Adequacy

123

Ratios of Outstanding Debt by Type

124

Ratios of General Bonded Debt Outstanding

126

City of Belton Texas Year Ended September 30, 2023 Table of Contents Page Number

Statistical Section (continued) Legal Debt Margin Information

128

Demographic and Economic Statistics

130

Principal Employers

131

Top Ten Water Customers

132

Full-Time Equivalent City Government Employees by Function

133

Operating Indicators by Function

134

Capital Asset Statistics by Function

136

City of Belton  Founded 1850 

February 14, 2024

To the Honorable Mayor, Members of the City Council, and Citizens of the City of Belton, Texas: The City Charter and State statutes require that the City of Belton (City) publish, at the close of each fiscal year, a complete set of financial statements presented in conformity with generally accepted accounting principles and audited in accordance with generally accepted auditing standards by a firm of licensed Certified Public Accountants. Pursuant to that requirement, we hereby issue the annual comprehensive financial report (ACFR) of the City of Belton, Texas, for the fiscal year ended September 30, 2023. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Jaynes, Reitmeier, Boyd & Therrell, P.C., Certified Public Accountants, has issued an unmodified (“clean”) opinion on the City of Belton’s financial statements for the year ended September 30, 2023. The independent auditor’s report is located at the front of the financial section of this report. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal, and should be read in conjunction with it. Profile of the City The City of Belton was founded in 1850 and chartered in 1852. On July 13, 1877, Belton was incorporated by the Texas Legislature. Located in Central Texas on Interstate Highways 35 and 14, Belton is approximately 65 miles north of Austin and 40 miles south of Waco. The city occupies a land area of 21 square miles and serves a population of approximately 25,000. i

Belton is the county seat of Bell County. Two large lakes adjacent to the city, Belton Lake and Stillhouse Hollow Lake, offer excellent fishing, camping, and water sports with 168 miles of shoreline. The City of Belton is a home rule city and operates under the council-manager form of government. Comprised of the Mayor and six councilmembers, the City Council is responsible for enacting ordinances, resolutions, and regulations governing the City. City Council also appoints the City Manager, City Attorney, Municipal Judge, City Clerk, and members of various boards. As the chief administrative officer, the City Manager is responsible for enforcing the laws and ordinances of the city. The City Manager appoints and supervises Department Heads. The City of Belton is empowered to levy a property tax on both real and personal properties located within its boundaries. It is also empowered by State statute to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing body in accordance with State law. The City of Belton provides a full range of services, including police and fire protection, construction and maintenance of streets, roads and other infrastructure, solid waste collection, planning and zoning, parks programming and maintenance, library services, and administrative services necessary to serve the citizens of our community. Water, sewer, and drainage services are operated under an enterprise fund concept, with user charges set to ensure adequate coverage of operating expenses and payments on outstanding debt. In addition, the City of Belton is also financially accountable for a legally separate economic development corporation, which is reported separately within the City of Belton’s financial statements. Additional information on this legally separate entity can be found in the notes to the financial statements. The annual budget serves as the foundation for the City’s financial planning and control. It defines the type, quality, and quantity of city goods and services that will be provided to citizens. The budget is also a control device that serves as a system of "checks and balances" between levels of city government. The City Charter establishes the fiscal year as the twelve-month period beginning October 1 and ending September 30. Department Heads submit to the City Manager a budget of estimated expenditures for the ensuing fiscal year by March 1. The City Manager then submits a proposed budget of estimated expenditures and revenues to the City Council no later than July 15. Afterwards, the City Council sets the time and place of a public hearing on the budget. A notice of the hearing is published at least five days before the day of the hearing. The budget shall be finally adopted by ordinance no later than the twenty-seventh day of September. If City Council takes no final action on or prior to such day, the budget submitted by the City Manager shall be deemed to have been finally adopted by the Council until such time as the City Council adopts a budget pursuant to the provisions of the Charter. After adoption of the budget, the City Manager may transfer any unencumbered appropriation or portion thereof between general classifications of expenditures within a division or department. At the request of the City Manager, the Council may by resolution, transfer any unencumbered appropriation or portion thereof from one division or department to another. After adoption, the City Council may amend the budget at any time by ordinance.

Budget-to-actual comparisons are provided in this report for governmental funds for which an annual budget has been adopted. For the General Fund, this comparison is presented as part of the required supplementary information. Local Economy The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Belton operates. Belton is a proactive, business-friendly community, located deep in the heart of Central Texas and in the core of the Temple-Killeen-Ft Hood MSA. Belton is located at the crossroads of IH-35 and the newly-designated IH-14 (U.S. Highway 190), within 180 miles of every major market in Texas. This location provides easy access to the estimated 450,000 people in the region. Military, government, medical/healthcare, agricultural/agribusiness, and retail trades are thriving industry sectors in the MSA that continue to be a major economic influence contributing to the growth and prosperity of Belton. Belton is proud to be the home of the University of Mary Hardin-Baylor (UMHB), a private fouryear college with an enrollment of over 3,800 students representing 30 foreign countries. UMHB was chartered by the Republic of Texas in 1845, making it the oldest continuously operated college in the State of Texas. Belton Independent School District (BISD) is the largest employer in the City. BISD serves over 13,000 students on 19 campuses, 9 of which are in the city limits of Belton. The unemployment rate for the Temple-Killeen-Ft Hood MSA increased to 4.5% from 4.2% one year ago. Notwithstanding the recent slowing, labor shortages and hiring difficulties persist. Property values and sales taxes have risen as the development of residential and commercial property continues throughout the area. Long-Term Financial Planning The City of Belton Strategic Plan is the City’s primary planning document. It outlines the City’s vision and goals for the long term. There are seven goal categories: governance, public safety, quality of life, economic development, connectivity, parks/natural beauty, and service delivery. The Strategic Plan focuses on the City of Belton’s vision of being the “Community of Choice in Central Texas, providing an Exceptional Quality of Life.” Each year, the Plan is reviewed, revised and updated as needs and conditions dictate. The revised plan forms the framework upon which the budget is built. Performance of Strategic Plan initiatives is measured regularly during the year. Additionally, each department measures success and progress by tying both accomplishments for the prior year and goals for the upcoming year to the various Strategic Plan goals and tasks. The Strategic Plan leads to the development of a Capital Improvements Program (CIP). The CIP lists major projects that are expected within the next five years. It includes cost estimates and funding methods. The City of Belton has identified $76 million in capital projects for the 20242028 timeframe. The timing of these projects may be advanced or postponed depending upon development and funding availability.

iii

Major Initiatives A strong, thriving community requires continual investment in its people, facilities, and infrastructure to deliver an exceptional quality of life. A goal in the Strategic Plan, the City of Belton implemented a street maintenance plan. The plan should elevate the quality of streets and create long-term savings through the systematic use of preventive maintenance. The cost of maintenance and other corrective actions each year are analyzed and typically included in the annual budget. Street maintenance funding in FY 2024 will reach $1,000,000, potentially increasing beyond that in the years to come. Belton implemented a capital equipment replacement plan and a capital improvements plan. By identifying potential projects and critical machinery today, funds can be accumulated over time to meet future demand. The plans include an analysis of the timing of expenditures and the various sources of funding that may be available. The impact upon future operating budgets should also be considered. To become a “quality of life” city, a municipality must provide ample opportunities for residents and visitors to retreat from the rigors of daily life by enjoying the outdoors. The City of Belton addressed this by creating a Parks and Recreation Strategic Master Plan. This visionary document guides the development of parks and recreation amenities within the city. Priorities over a tenyear period are recognized. Feasibility studies are prepared that envision usage of these quality of life facilities. The result of this master plan will be a parks system that is harmonious with its surroundings and enjoyed by all. Recent acquisition of land for the expansion of Heritage Park, and its development, will be a principal focus in years to come. Relevant Financial Policies The City’s adopted fund balance policy requires a reserve balance of no less than least three months of operating expenditures plus any fund-supported debt service. Balances in excess of this reserve requirement can be directed by City Council towards capital improvements. As of September 30, 2023, all operating funds were compliant with this policy. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Belton, Texas, for its annual comprehensive financial report for the fiscal year ended September 30, 2022. This was the thirty-seventh consecutive year that the City of Belton has achieved this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

In addition, the GFOA presented a Distinguished Budget Presentation Award to the City of Belton, Texas, for its annual budget document for the fiscal year beginning October 1, 2022. 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. This was the thirty-first consecutive year that the City of Belton has received the budget award. Acknowledgements The preparation of this report was made possible with the proficient and dedicated work of the entire staff of the Finance Department. We would also like to thank the Mayor and the City Council for their continued interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted,

Sam A. Listi City Manager

William Michael Rodgers, CPA Director of Finance

CITY OF BELTON ELECTED OFFICIALS CITY COUNCIL Three-Year Terms

NAME

TERM EXPIRES

David K. Leigh, Mayor

May 2024

John Holmes, Sr., Mayor Pro Tem

May 2026

Dave Covington

May 2026

Stephanie O’Banion

May 2025

Craig Pearson

May 2024

Daniel Bucher

May 2025

Wayne Carpenter

May 2025

APPOINTED OFFICALS CITY ADMINISTRATION POSITION City Manager City Attorney City Clerk Assistant City Manager/Police Chief Executive Director of Economic Development Fire Chief Director of Finance Director of Parks & Recreation/ Public Works Director of Library Director of Planning Director of Human Resources Director of Information Technology Director of Communications Grants & Special Projects Coordinator Retail Development Coordinator

NAME

DATE APPOINTED

Sam Listi John Messer Amy Casey Gene Ellis

March 12, 2001 September 1, 1978 June 29, 2015 April 20, 2009

Cynthia Hernandez Jonathon Fontenot William Michael Rodgers

September 27, 2011 June 15, 2020 December 9, 2019

Matt Bates Kim Kroll Robert Van Til Charlotte Walker Chris Brown Paul Romer Jo-Ell Guzman Judy Garrett

October 1, 2014 October 2, 2000 June 26, 2017 October 1, 2010 April 18, 2016 October 31, 2012 April 29, 2021 January 3, 2017

vii

viii

INDEPENDENT AUDITOR’S REPORT

The Honorable Mayor and Members of the City Council City of Belton, Texas:

Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Belton, Texas (the “City”) as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of September 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibility under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1

Responsibilities of Management for the Financial Statements Management of the City 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, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  



 

Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 2

Change in Accounting Principle As discussed in Note I to the financial statements, the City adopted Governmental Accounting Standards Board (“GASB”) Statement No. 96, Subscription-based Information Technology Arrangements effective October 1, 2022. Our opinion is not modified with respect to this matter. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 5 through 16, the schedule of budgetary comparisons for the General Fund on pages 70 to 71, the schedules of changes in the City’s net pension liability and related ratios and contributions on pages 72 to 76, and the schedule of changes in the City’s total OPEB liability and related ratios and contributions on pages 78 to 80 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, 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 GAAS, 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. Supplementary 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 financial statements and schedules, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules 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 GAAS. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Included in the Annual Comprehensive Financial Report Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections of the annual comprehensive financial report but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. 3

In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 14, 2024 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 solely 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.

February 14, 2024

Management’s Discussion and Analysis As management of the City of Belton, Texas, we offer readers of the financial statements this narrative discussion and analysis of the financial activities of the City of Belton for the fiscal year ended September 30, 2023. 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 through v of this report. Financial Highlights 

The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $107,913,629 (net position). Of this amount, $27,637,487 represents unrestricted net position, which may be used to meet the City’s ongoing obligations to citizens and creditors.



The City’s total net position increased by $10,061,485 primarily due to grants and contributions from third parties, earnings from investments and greater general revenues such as property and sales taxes. Additionally, the change was also attributable to increased charges for services due to a growing customer base and higher water and sewer rates.



At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $19,354,390, an increase of $517,422 in comparison with the prior year. Of this total amount, $8,695,912 (44.9 percent) is available for spending at the City’s discretion (unassigned fund balance).



At the end of the current fiscal year, unrestricted fund balance (total of the committed, assigned, and unassigned components of fund balance) for the General Fund was $9,567,912, or 44.4 percent of budgeted General Fund expenditures.

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 includes other supplementary information intended to furnish additional detail to support the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a privatesector business. The statement of net position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference 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 showing how the City’s net position changed during the most recent 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. 5

Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other 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, planning, culture and recreation, solid waste collection, economic development, and maintenance. The business-type activities of the City include a water and sewer utility and a drainage utility. The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate economic development corporation for which the City is financially accountable. Financial information for this component unit is reported separately from the financial information presented for the primary government itself. The government-wide financial statements can be found on pages 19 - 21 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 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 two categories: governmental funds and proprietary 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 nearterm inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing 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 City's near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains approximately thirty individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Debt Service Fund, TIRZ Capital Projects Fund, and American Rescue Plan Grant Fund, which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the combining and individual fund statements and schedules section of this report.

The basic governmental fund financial statements can be found on pages 22 - 24 of this report. 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 water and sewer utility and for its drainage utility. 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 information technology and building maintenance services. These internal service functions have been included within governmental activities in the government-wide financial statements. Proprietary fund financial statements provide the same type of information as the governmentwide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer Fund and for the Drainage Fund, both of which 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 and individual fund statements and schedules section of this report. The basic proprietary fund financial statements can be found on pages 25 - 27 of this report. Notes to the financial statements. The notes provide additional information that is necessary to acquire 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 31 – 68 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City’s progress in funding its obligation to provide pension and OPEB benefits to its employees. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule has been provided for the General Fund to demonstrate compliance with the budget. The TIRZ Capital Projects Fund and the American Rescue Plan Grant Fund are not budgeted. Required supplementary information can be found on pages 70 - 80 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 86 through 97 of this report. Government-Wide Overall Financial Analysis As noted earlier, net position over time may serve as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $107,913,629 at the close of the most recent fiscal year.

City of Belton Statement of Net Position Governmental Activities 2023 2022 Current and other assets Capital and right-of-use assets Total assets

Business-Type Activities 2023 2022

Totals 2023

2022

$ 25,592,452 47,750,622 73,343,074

$ 25,878,746 42,250,260 68,129,006

$ 19,536,767 57,064,634 76,601,401

$ 18,647,514 56,291,872 74,939,386

$ 45,129,219 104,815,256 149,944,475

$ 44,526,260 98,542,132 143,068,392

2,933,331

932,809

454,944

179,587

3,388,275

1,112,396

Long-term liabilities outstanding Other liabilities Total liabilities

14,853,441 6,872,478 21,725,919

11,557,673 8,039,293 19,596,966

20,716,374 2,639,554 23,355,928

21,652,969 3,133,580 24,786,549

35,569,815 9,512,032 45,081,847

33,210,642 11,172,873 44,383,515

Total deferred inflows of resources

286,211

1,621,051

51,063

324,078

337,274

1,945,129

38,253,910 4,392,843 11,617,522

32,230,617 6,859,323 8,753,858

37,629,389 16,019,965

37,626,249 12,382,097

75,883,299 4,392,843 27,637,487

69,856,866 6,859,323 21,135,955

$ 54,264,275

$ 47,843,798

$ 53,649,354

$ 50,008,346

$ 107,913,629

$ 97,852,144

Total deferred outflows of resources

Net position: Net investment in capital assets Restricted Unrestricted Total net position

By far the largest portion of the City’s net position ($75,883,299 or 70.3 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, leases, subscriptions, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, 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 that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position ($4,392,843 or 4.1 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance ($27,637,487 or 25.6 percent) is unrestricted and may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all reported categories of net position, both for the City as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. The City's total net position increased $10,061,485 from the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental and business-type activities.

City of Belton’s Changes in Net Position Governmental Activities 2023 2022 Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Sales taxes Franchise taxes Other taxes Investment earnings Gain on sale of assets Other income Total revenues

Business-type Activities 2023 2022

$ 16,902,311

$ 14,644,826

$ 3,568,509

1,973,113

2,205,343

1,973,113

2,205,343

4,368,371

1,045,229

2,082,358

1,441,835

6,450,729

2,487,064

10,796,469 6,128,828 1,350,128 422,607 1,263,192 11,250 687,360 30,885,945

9,776,118 5,721,518 1,320,018 362,357 173,436 36,941 264,505 24,473,974

796,196 5,700 15,901,938

140,551 12,658,703

10,796,469 6,128,828 1,350,128 422,607 2,059,388 16,950 687,360 46,787,883

9,776,118 5,721,518 1,320,018 362,357 313,987 36,941 264,505 37,132,677

Expenses: General government Public safety Highways and streets Planning Culture and recreation Solid waste Economic development Maintenance Interest and other fiscal charges Water and sewer Drainage Total expenses

2,869,141 11,205,902 3,796,008 938,176 2,988,778 1,825,819 1,087,562 522,999 267,813 25,502,198

2,538,856 9,478,735 2,857,347 552,775 2,683,622 1,694,189 408,870 547,620 322,675 21,084,689

10,612,384 611,816 11,224,200

11,986,427 648,130 12,634,557

2,869,141 11,205,902 3,796,008 938,176 2,988,778 1,825,819 1,087,562 522,999 267,813 10,612,384 611,816 36,726,398

2,538,856 9,478,735 2,857,347 552,775 2,683,622 1,694,189 408,870 547,620 322,675 11,986,427 648,130 33,719,246

Changes in net position before transfers Transfers Changes in net position

5,383,747 1,036,730 6,420,477

3,389,285 1,053,200 4,442,485

4,677,738 (1,036,730) 3,641,008

24,146 (1,053,200) (1,029,054)

10,061,485 10,061,485

3,413,431 3,413,431

Net position, beginning of year

47,843,798

43,401,313

50,008,346

51,037,400

97,852,144

94,438,713

$ 54,264,275

$ 47,843,798

$ 53,649,354

$ 50,008,346

$ 107,913,629

$ 97,852,144

$ 11,076,317

2022

$ 3,884,627

Net position, end of year

$ 13,017,684

Total 2023

Governmental activities. During the current fiscal year, net position for governmental activities increased $6,420,477 from the prior fiscal year for an ending balance of $54,264,275. This increase was partially driven by revenue of $2,580,500 from the American Rescue Plan Grant and $335,731 in contributions to the TDHCA Housing Grant Fund which in turn led to an increase in expenditures from these grant funds. Developer contributions of assets added another $698,140. Property and sales tax revenue also increased by $1,427,661 over the previous year as property values and retail spending continued to grow. Earnings from investments increased by $1,089,756 as a result of higher yields on investments.

Business-type activities. For the City’s business-type activities, the overall net position increased by $3,641,008 to an ending balance of $53,649,354. Key changes year over year included: 

Charges for business-type activities totaled $13,017,684, an increase of $1,941,367 over the prior year. This reflects a growing customer base and higher water and sewer rates.



Expenses for business-type activities totaled $11,224,200, an 11.2 percent decrease from the prior year. Expenses declined due to a reduction in major maintenance projects compared to the prior year.



Capital grants and contributions from developers totaled $2,082,358, an increase of $640,523 from the prior year.

Financial Analysis of the City’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City’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 discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for particular purposes by the City Council. 10

At September 30, 2023, the City’s governmental funds reported combined ending fund balances of $19,354,390, an increase of $517,422 in comparison with the prior year. Approximately 44.9 percent ($8,695,912) of this amount constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of fund balance is non-spendable, restricted, committed, or assigned to indicate that it is: 1) Not in spendable form ($71,832); 2) Restricted for particular purposes: a. Debt service ($26,716); b. Public, educational, or governmental access facilities ($478,944); c. Public safety training, equipment, and security facilities ($48,105); d. Court technology and security ($147,396) e. Capital projects ($1,333,124); and f. Economic development ($2,313,243). 3) Committed for particular purposes: a. Economic development ($6,907). 4) Assigned for particular purposes: a. Future civil service costs ($872,000); b. Culture and recreation ($547,735); and c. Capital projects and equipment ($4,812,476).

The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $8,695,912, while total fund balance increased by $1,925,849 to $9,630,184. Property tax revenue increased by 9.6% over the previous year to $7,768,792 due to rising property values within the City. Sales tax revenue increased 7.1% to $6,128,828 with strong growth in construction and retail sales. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund budgeted expenditures. Unassigned fund balance represents 40.4 percent of total General Fund budgeted expenditures (including transfers), while total fund balance represents 44.7 percent of that same amount.

Assigned other governmental funds consists primarily of capital project and capital equipment replacement funds. The $1,091,061 increase to assigned fund balance is the result of transfers into these funds exceeding capital expenditures during the year. Committed other governmental funds consist of the City funding dedicated to projects under the Texas Department of Housing and Community Affairs home replacement program and to special events that draw tourists. Expenditures surpassed revenues during the year by $30,282. Restricted governmental funds relate to funds restricted to a specific purpose such as bond funds, Tax Increment Reinvestment Zone funds, and hotel occupancy taxes. The fund balance increase from 2022 to 2023 was the result of rising contributions into the Tax Increment Reinvestment Zone Capital Projects Fund. The Debt Service Fund, a major fund, reported an increase in fund balance during the current year of $15,175, to bring the year-end fund balance to $26,716. This increase was due to growing property tax values within the City. Fund balance in the TIRZ Capital Projects Fund, a major fund, decreased by $3,247,629 to $1,333,124. This decline was due to the Heritage Park Improvements Project and Southwest Parkway construction.

The American Rescue Plan Grant Fund, a major fund, reported an increase in fund balance during the current year of $256,831, to $278,109. Grant funds totaling $2,580,500 were received during the year and will be expended in future fiscal years to respond to and recover from the COVID-19 public health emergency. 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. Net position of the Water and Sewer Fund at the end of the year was $48,313,642, and the net position of the Drainage Fund amounted to $5,335,712. The total change in net position was $3,455,104 and $185,904, respectively. Notable changes in the Water and Sewer Fund activity include: 

Charges for sales and services grew by 13.5 percent to $11,772,863, due to increased consumption from an expanding customer base and higher utility rates.



Operating expenses totaled $10,073,198, a decrease of $1,244,559 or 11 percent from the prior year. The decrease was due to lower depreciation and personnel costs; and



Capital contributions were $1,812,803 for the dedication of water and sewer lines in new subdivisions.

Notable changes in the Drainage Fund activity include: 

An increase in revenue of $12,346 or 2.2 percent due to an increased number of customers in the current year;



Operating expenses totaled $606,546, a decrease of $35,537 or 6.4 percent from the prior year. The decrease was primarily driven by lower personnel costs; and



There was $269,555 in capital contributions for the dedication of drainage facilities in new subdivisions.

Budgetary Highlights Original Budget Compared to Final Budget. Budgeted uses of funds, inclusive of expenditures and transfers out, increased by $761,700 between the original budget and final General Fund budget. The increase in uses was attributable to costs related to personnel, grants, building maintenance, and equipment maintenance. Budgeted sources of funds, inclusive of revenues and other financial sources, increased by $928,000 between the original and final General Fund budget. The increase in sources was attributable to refuse collection, public safety reimbursements, interest income, and grant revenue. Final budget compared to actual results. For the General Fund, actual revenues surpassed budgeted revenues by $222,357, primarily driven by franchise fees and municipal court fines and fees. Parks and recreation revenue as well as the sale of effluent water exceeded budget. Actual expenditures ended the year $812,740 under budget with significant savings in various divisions due to personnel and services. 13

Capital Asset and Debt Administration Capital assets. The City’s investment in capital assets for its governmental and business type activities as of September 30, 2023, amounts to $104,815,256 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, machinery and equipment, leases, subscriptions, park facilities, streets, bridges, drainage structures, and water and sewer system infrastructure to include pumps, pipes, storage tanks, and associated fittings and fixtures. The total increase in the City’s investment in capital assets for the current fiscal year was 6.4 percent (a 13.0 percent increase for governmental activities and a 1.4 percent increase for business-type activities). City of Belton’s Capital Assets (net of depreciation) Governmental Activities 2023 2022 Land $ 5,586,442 Buildings 5,128,500 Improvements other than buildings 2,172,662 3,933,018 Machinery and equipment Equipment - right-to-use lease assets 68,521 Software - right-to-use subscription assets 280,366 Infrastructure 28,772,038 Construction in progress 1,809,075 Total

$ 47,750,622

$ 4,799,921 4,543,424

Business-Type Activities 2023 2022 $

285,175 4,060,659

Totals 2023

2022

285,175 4,282,735

$ 5,871,617 9,189,159

$ 5,085,096 8,826,159

1,174,609 3,358,483

1,486,698

1,606,551

2,172,662 5,419,716

1,174,609 4,965,034

83,305

95,206

151,826

95,206

27,525,323 848,500

50,649,486 499,311

39,048,179 10,974,026

280,366 79,421,524 2,308,386

66,573,502 11,822,526

$ 42,250,260

$ 57,064,634

$ 56,291,872

$ 104,815,256

$ 98,542,132

Major capital asset events during the current fiscal year included the following: 

Work was completed on: o Heritage Park expansion; o Skeeter brush truck; o PD patrol vehicles; o Freightliner truck; o N. East street & 5th water line; o Rockwool sewer line; o N. Belton water tank; o E. 6th Avenue water line; o McFarland Estates wastewater improvements; and o South Belton sewer line.



Work began/continued on: o Standpipe Park; o Southwest Parkway; o N. College St. & 13th Ave reconstruction; o 13th Ave sidewalks; and o IH-14 sewer line.

Additional information on the City’s capital assets can be found in Note V on pages 47 - 50 of this report. Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $29,049,993, excluding bond premiums. All of this debt is secured by the full faith and credit of the City. Of the total, $20,523,655 is pledged with water and sewer revenue and storm water drainage revenue. City of Belton’s Outstanding Debt General Obligation and Revenue Bonds Governmental Activities 2023 2022 General obligation bonds Certificates of obligation Total

Business-Type Activities 2023 2022

Totals 2023

2022

$ 5,310,000 3,216,338

$ 6,265,000 3,391,725

$ 435,000 20,088,655

$ 540,000 21,333,268

$ 5,745,000 23,304,993

$ 6,805,000 24,724,993

$ 8,526,338

$ 9,656,725

$ 20,523,655

$ 21,873,268

$ 29,049,993

$ 31,529,993

The City’s total bonded debt decreased by $2.5 million (7.9 percent) during the current fiscal year. The decrease was due to regularly scheduled principal payments. No direct funded debt limitation is imposed on the City under current State law or the City Charter. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem rate to $2.50 per $100 of assessed valuation for all City purposes. The City Charter limits the tax rate to $1.90 per $100 of assessed valuation for all City purposes. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the maximum tax rate for general obligation debt service. The City’s fiscal year 2023 tax rate is well below all of the aforementioned limits. Additional information on the City’s long-term debt can be found in Note VI on pages 51 - 55 of this report. Economic Factors and Next Year's Budget The following economic factors currently affect the City of Belton and were considered in developing the 2024 fiscal year budget: 

Measures taken by various governments to contain the COVID-19 pandemic have affected economic activity. The impact on future market conditions, however, remains uncertain and cannot be estimated at this time.



The local economy is experiencing growth as evidenced by elevated property values, sales tax revenue, and construction activity. Several large projects are underway, and the City continues to make infrastructure improvements and conduct master planning which will position the City for future expansion.



Growth does create new challenges which must be addressed, and the Strategic Plan provides a framework for the future. Meeting these challenges takes the vision of Council to guide the Strategic Plan, financial resources to fund the Plan, and a management team and staff to implement the Plan. The Belton City Council, management, and staff remain dedicated to the purposes of planning and providing for the future of the City.



The fiscal year 2024 annual budget is noteworthy as both revenues and expenditures increase significantly. A strong demand for housing, along with limited supply, has driven property values higher. Consumer spending continues to push sales tax revenue upwards. Yields on investments have grown at a remarkable pace compared to previous years. These growing revenues in fiscal year 2024 provide the resources to fund several Strategic Plan priorities, such as enhanced staffing to meet essential needs, sustained street maintenance, infrastructure rehabilitation, and employee compensation.

Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Director of Finance City of Belton P.O. Box 120 Belton, Texas, 76513

Basic Financial Statements

City of Belton, Texas Statement of Net Position September 30, 2023 Primary Government

Assets Cash and cash equivalents Receivables (net of allowance for uncollectibles) Due from other governments Prepaid items Note receivable Capital assets not being depreciated: Land Construction in progress Capital assets, net of accumulated depreciation: Buildings Improvements other than buildings Machinery and equipment Lease right-of-use asset Subscription right-of-use asset Infrastructure Total assets

Deferred Outflows of Resources Deferred outflows of resources Total deferred outflows of resources Liabilities Accounts and retainages payable Accrued interest payable Other accrued liabilities Customer deposits payable Unearned revenue Noncurrent liabilities: Due within one year Due in more than one year Total liabilities Deferred Inflows of Resources Deferred inflows of resources Total deferred inflows of resources Net Position Net investment in capital assets Restricted for: Debt service Capital projects Economic development Court Public safety Public access facilities Unrestricted Total net position

Component Unit Belton Economic Development Corporation, Inc.

Governmental Activities

Business-type Activities

22,040,887

17,859,848

39,900,735

16,447,446

2,186,951 1,197,731 166,883 -

1,594,762 82,157 -

3,781,713 1,197,731 249,040 -

566,783 1,020 46,711

5,586,442 1,809,075

285,175 499,311

5,871,617 2,308,386

816,334 815,780

5,128,500 2,172,662 3,933,018 68,521 280,366 28,772,038 73,343,074

4,060,659 1,486,698 83,305 50,649,486 76,601,401

9,189,159 2,172,662 5,419,716 151,826 280,366 79,421,524 149,944,475

435,782 4,071 19,133,927

2,933,331 2,933,331

454,944 454,944

3,388,275 3,388,275

64,385 64,385

2,467,030 47,158 327,263 24,510 2,468,015

585,625 98,127 67,299 404,750 -

3,052,655 145,285 394,562 429,260 2,468,015

19,251 5,334 2,200 -

1,538,502 14,853,441 21,725,919

1,483,753 20,716,374 23,355,928

3,022,255 35,569,815 45,081,847

26,856 119,373 173,014

286,211 286,211

51,063 51,063

337,274 337,274

5,940 5,940

38,253,910

37,629,389

75,883,299

2,071,967

71,851 1,333,124 2,313,423 147,396 48,105 478,944 11,617,522

16,019,965

71,851 1,333,124 2,313,423 147,396 48,105 478,944 27,637,487

16,947,391

54,264,275

53,649,354

107,913,629

19,019,358

See accompanying notes to financial statements.

Total

City of Belton, Texas Statement of Activities For the Fiscal Year Ended September 30, 2023 Program Revenues

Functions/Programs Primary government: Governmental activities: General government Public safety Highways and streets Planning Culture and recreation Solid waste Economic development Maintenance Interest and other fiscal charges Total governmental activities Business-type activities: Water and sewer Drainage Total business-type activities

Expenses

Charges for Services

Operating Grants and Contributions

Capital Grants and Contributions

2,869,141 11,205,902 3,796,008 938,176 2,988,778 1,825,819 1,087,562 522,999 267,813 25,502,198

131,931 358,377 503,990 110,876 2,474,690 304,763 3,884,627

999,550 15,337 958,226 1,973,113

4,028,640 4,000 335,731 4,368,371

10,612,384 611,816 11,224,200

12,445,945 571,739 13,017,684

1,812,803 269,555 2,082,358

1,973,113

6,450,729

Total primary government

36,726,398

16,902,311

Component unit: Belton Economic Development Corporation, Inc.

699,080

61,296

699,080

61,296

Total component unit

General revenues: Property taxes Sales taxes Franchise taxes Hotel/motel taxes Alcoholic beverage taxes Unrestricted investment earnings Miscellaneous Gain on sale of assets Transfers Total general revenues and transfers Change in net position Net position, beginning of year Net position, end of year

See accompanying notes to financial statements.

Net Revenues (Expenses) and Changes in Net Position Primary Government Governmental Activities

Business-type Activities

(2,737,210) (9,847,975) 232,632 (434,186) (2,858,565) 648,871 206,395 (218,236) (267,813) (15,276,087)

Total

Component Unit Belton Economic Development Corporation, Inc.

(2,737,210) (9,847,975) 232,632 (434,186) (2,858,565) 648,871 206,395 (218,236) (267,813) (15,276,087)

3,646,364 229,478 3,875,842

(15,276,087)

3,875,842

(11,400,245)

(637,784) (637,784) $

10,796,469 6,128,828 1,350,128 350,072 72,535 1,263,192 687,360 11,250 1,036,730 21,696,564

796,196 5,700 (1,036,730) (234,834)

10,796,469 6,128,828 1,350,128 350,072 72,535 2,059,388 687,360 16,950 21,461,730

3,063,954 686,223 1,110,697 4,860,874

6,420,477

3,641,008

10,061,485

4,223,090

47,843,798

50,008,346

97,852,144

14,796,268

54,264,275

53,649,354

107,913,629

19,019,358

City of Belton, Texas Balance Sheet Governmental Funds September 30, 2023

General

Debt Service

TIRZ Capital Projects

American Rescue Plan Grant

Other Governmental Funds

Total Governmental Funds

Assets Cash and cash equivalents Receivables (net of allowance for uncollectibles) Due from other governments Prepaid items Total assets

8,387,968

25,022

1,625,315

2,911,005

8,508,363

21,457,673

2,061,586 374,944 62,272

46,829 -

750,000 -

78,536 72,787 9,560

2,186,951 1,197,731 71,832

10,886,770

71,851

2,375,315

2,911,005

8,669,246

24,914,187

607,546 315,876 24,510 6,464 954,396

1,042,191 1,042,191

226,920 2,405,976 2,632,896

527,414 55,575 582,989

2,404,071 315,876 24,510 2,468,015 5,212,472

302,190 302,190

45,135 45,135

347,325 347,325

62,272 872,000 8,695,912 9,630,184

26,716 26,716

1,333,124 1,333,124

278,109 278,109

9,560 2,709,579 6,907 5,360,211 8,086,257

71,832 4,347,528 6,907 6,232,211 8,695,912 19,354,390

10,886,770

71,851

2,375,315

2,911,005

8,669,246

Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities: Accounts and retainages payable Accrued liabilities Customer deposits payable Unearned revenue Total liabilities Deferred inflows of resources: Unavailable revenue Total deferred inflows of resources Fund balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources and fund balances

Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. Internal service funds are used by management to charge the costs of certain services to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position. Long-term liabilities, including bonds payable and the net pension and total OPEB liabilities, are not due and payable in the current period, and therefore, are not reported in the funds. Net position of governmental activities

47,401,833 328,686

664,566

(13,485,200) $

See accompanying notes to financial statements.

54,264,275

City of Belton, Texas Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Fiscal Year Ended September 30, 2023

Revenues: Taxes: Ad valorem Sales Franchise Hotel/motel Alcoholic beverage Licenses and permits Intergovernmental Charges for services Fines Interest Contributions and donations Payments in lieu of taxes Miscellaneous Total revenues

TIRZ Capital Projects

American Rescue Plan Grant

Other Governmental Funds

Total Governmental Funds

General

Debt Service

7,768,792 6,128,828 1,321,668 72,535 503,990 836,852 2,654,422 350,592 481,624 11,887 266,555 20,397,745

1,178,278 31,119 1,209,397

750,000 127,013 877,013

2,580,500 256,831 2,837,331

1,769,884 28,460 350,072 1,451,026 36,481 353,316 24,966 176,084 4,190,289

10,716,954 6,128,828 1,350,128 350,072 72,535 503,990 5,618,378 2,654,422 387,073 1,249,903 24,966 11,887 442,639 29,511,775

Expenditures: Current: General government Public safety Highways and streets Planning Culture and recreation Solid waste Economic development Maintenance services Debt service: Principal Interest and fiscal charges Capital outlay Total expenditures

2,520,735 9,603,015 834,686 909,889 1,992,810 1,800,557 494,370

942,232 616,626 -

183,976 165,931 154,020 470,936 -

2,704,711 9,768,946 1,776,918 909,889 2,146,830 1,800,557 1,087,562 494,370

82,518 2,685 313,255 18,554,520

875,387 318,835 1,194,222

6,324,642 6,324,642

79,722 1,638,580

255,000 10,270 1,498,466 2,738,599

1,212,905 331,790 8,216,085 30,450,563

Excess (deficiency) of revenues over (under) expenditures

1,843,225

15,175

(5,447,629)

1,198,751

1,451,690

(938,788)

24,071 77,571 88,628 884 2,046,790 (2,155,320)

2,200,000 -

(941,920)

214,956 11,250 2,160,120 (2,270,820)

239,027 77,571 88,628 12,134 6,406,910 (5,368,060)

82,624

2,200,000

(941,920)

115,506

1,456,210

Net change in fund balances

1,925,849

15,175

(3,247,629)

256,831

1,567,196

517,422

Fund balances, beginning of year

7,704,335

11,541

4,580,753

21,278

6,519,061

18,836,968

9,630,184

26,716

1,333,124

278,109

8,086,257

19,354,390

Other financing sources (uses): Insurance proceeds Issuance of leases Issuance of subscriptions Proceeds from the sale of capital assets Transfers in Transfers out Total other financing sources (uses)

Fund balances, end of year

See accompanying notes to financial statements.

City of Belton, Texas Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended September 30, 2023 Net change in fund balances - total governmental funds

517,422

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 as depreciation expense. This is the amount by which capital outlays ($8,216,085) exceeds depreciation expense ($3,635,558) in the current period.

4,580,527

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, donations, etc.) is to increase net position. This is capital assets contributed ($698,140) less the net book value of capital assets sold ($0) in the current period.

698,140

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.

77,024

Internal service funds are used by management to charge the costs of certain services to individual funds. The change in net position of internal service funds is reported with governmental activities.

304,763

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported in governmental funds. This amount is the net effect of change in the net pension liability and the related deferred outflows and inflows of resources ($400,306), less the net effect of change in the total OPEB liability and the related deferred outflows and inflows of resources ($18,988) less the change in accrued interest payable ($1,732) plus the change in compensated absences ($453,105).

(870,667)

The issuance of long-term debt (e.g., bonds and leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes current financial resources of governmental funds. Neither transaction, however, has any effect on net position. This is the amount by which principal repayments and bond premium amortization ($1,279,467) exceeds increases in long-term debt ($166,199) in the current year.

1,113,268

Change in net position of governmental activities

See accompanying notes to financial statements.

6,420,477

City of Belton, Texas Statement of Net Position – Proprietary Funds September 30, 2023 Business-type Activities - Enterprise Funds Water and Sewer Drainage Total Assets Current assets: Cash and cash equivalents Receivables (net of allowance for uncollectibles) Prepaid items Total current assets

Governmental Activities Internal Service Funds

16,597,440 1,531,868 82,157 18,211,465

1,262,408 62,894 1,325,302

17,859,848 1,594,762 82,157 19,536,767

583,214 95,051 678,265

Less accumulated depreciation/amortization Total capital assets, net

285,045 4,785,262 85,351,916 4,102,539 106,115 499,311 95,130,188 (42,241,221) 52,888,967

130 6,139,253 319,123 6,458,506 (2,282,839) 4,175,667

285,175 4,785,262 91,491,169 4,421,662 106,115 499,311 101,588,694 (44,524,060) 57,064,634

231,370 237,360 468,730 (119,941) 348,789

Total noncurrent assets

52,888,967

4,175,667

57,064,634

348,789

Total assets

71,100,432

5,500,969

76,601,401

1,027,054

412,938

42,006

454,944

128,776

Liabilities Current liabilities: Accounts and retainages payable Accrued interest payable Other accrued liabilities Customer deposits payable Lease liability - current Subscription liabilities - current Compensated absences - current Bonds payable - current Total current liabilities

582,175 97,361 63,689 404,750 10,701 82,983 1,365,800 2,607,459

3,450 766 3,610 4,169 20,100 32,095

585,625 98,127 67,299 404,750 10,701 87,152 1,385,900 2,639,554

62,959 11,387 83,818 10,144 168,308

Noncurrent liabilities: Lease liability Subscription liabilities Compensated absences Net pension liability Total OPEB liability Bonds payable Total noncurrent liabilities

75,629 39,961 679,497 61,483 19,689,977 20,546,547

4,227 68,502 7,486 89,612 169,827

75,629 44,188 747,999 68,969 19,779,589 20,716,374

69,738 12,802 214,250 14,516 311,306

23,154,006

201,922

23,355,928

479,614

45,722

5,341

51,063

11,650

33,563,434 14,750,208

4,065,955 1,269,757

37,629,389 16,019,965

195,233 469,333

48,313,642

5,335,712

53,649,354

664,566

Noncurrent assets: Capital assets: Land Buildings Infrastructure Machinery and equipment Lease right-of-use asset Subscription right-of-use assets Construction in progress

Deferred Outflows of Resources Deferred outflows of resources

Total liabilities Deferred Inflows of Resources Deferred inflows of resources Net Position Net investment in capital assets Unrestricted Total net position

See accompanying notes to financial statements.

City of Belton, Texas Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds For the Fiscal Year Ended September 30, 2023 Business-type Activities - Enterprise Funds Water and Sewer Drainage Total Operating revenues: Charges for sales and services: Water service Sewer service Internal services Storm drainage fees Reconnect and late fees Tap fees Intergovernmental revenue Other operating revenue Total operating revenues

Operating expenses: Salaries and wages Employee benefits Supplies Repairs and maintenance Water, sewage treatment, and other charges Depreciation and amortization Other operating expenses Total operating expenses

5,720,282 5,494,435 132,160 425,986 275,000 398,082 12,445,945

571,739 571,739

5,720,282 5,494,435 571,739 132,160 425,986 275,000 398,082 13,017,684

1,591,890 1,591,890

1,372,463 445,886 175,049 249,211 3,790,017 4,040,572 10,073,198

139,955 51,842 17,283 39,582 28,593 329,291 606,546

1,512,418 497,728 192,332 288,793 3,818,610 4,369,863 10,679,744

433,726 161,039 125,737 381,545 111,634 70,480 9,818 1,293,979

2,372,747

(34,807)

2,337,940

297,911

5,700 741,720 (539,186) 208,234

54,476 (5,270) 49,206

5,700 796,196 (544,456) 257,440

13,289 (4,317) 8,972

2,580,981

14,399

2,595,380

306,883

1,812,803 90,640 (1,029,320)

269,555 2,500 (100,550)

2,082,358 93,140 (1,129,870)

6,340 (8,460)

3,455,104

185,904

3,641,008

304,763

44,858,538

5,149,808

50,008,346

359,803

48,313,642

5,335,712

53,649,354

664,566

Operating income (loss) Nonoperating revenues (expenses): Gain on sale of capital assets Interest earnings Interest expense Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Capital contributions Transfers in Transfers out Change in net position Total net position, beginning of year Total net position, end of year

Governmental Activities Internal Service Funds

See accompanying notes to financial statements.

City of Belton, Texas Statement of Cash Flows – Proprietary Funds For the Fiscal Year Ended September 30, 2023 Governmental Activities Internal Service Funds

Business-type Activities - Enterprise Funds Water and Sewer Drainage Total Cash flows from operating activities: Receipts from customers and users Payments to suppliers Payments to employees Net cash provided by operating activities

1,591,890 (715,722) (441,039) 435,129

$ 12,092,167 (5,280,550) (1,350,097) 5,461,520

566,582 (146,298) (136,199) 284,085

12,658,749 (5,426,848) (1,486,296) 5,745,605

(938,680) (938,680)

(98,050) (98,050)

(1,036,730) (1,036,730)

(2,120) (2,120)

(3,031,670) (11,836) 5,700 (1,330,350) (626,469)

(28,596) (19,263) (5,405)

(3,060,266) (11,836) 5,700 (1,349,613) (631,874)

(54,814) (88,121) -

(4,994,625)

(53,264)

(5,047,889)

(142,935)

Cash flows from investing activities: Interest received Net cash provided by investing activities

741,720 741,720

54,476 54,476

796,196 796,196

13,289 13,289

Net increase in cash and cash equivalents

269,935

187,247

457,182

303,363

16,327,505

1,075,161

17,402,666

279,851

$ 16,597,440

1,262,408

17,859,848

583,214

2,372,747

(34,807)

2,337,940

297,911

4,040,572 (353,778) (73,136) (595,535) 12,067 40,125 22,366

329,291 (5,157) (3,008) 673 3,756

4,369,863 (358,935) (73,136) (598,543) 12,740 40,125 26,122

70,480 446 32,766 3,744 7,313

(7,528)

(7,104)

(14,632)

21,615

3,620 3,088,773

441 318,892

4,061 3,407,665

854 137,218

5,461,520

284,085

5,745,605

435,129

1,812,803

269,555

2,082,358

237,360

Cash flows from noncapital financing activities: Transfer to other funds Net cash used in noncapital financing activities Cash flows from capital and related financing activities: Purchases and construction of capital assets Principal and interest payments on lease Principal and interest payments on subscriptions Proceeds from the sale of assets Principal paid on debt Interest paid on debt Net cash used in capital and related financing activities

Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation and amortization Increase in receivables Decrease (increase) in prepaid items Increase (decrease) in accounts and retainages payable Increase in other accrued liabilities Increase in customer deposits payable Increase in compensated absences Increase (decrease) in net pension liability and pension-related deferred outflows and inflows of resources Increase in total OPEB liability and OPEB-related deferred outflows of resources Total adjustments Net cash provided by operating activities Noncash capital and related financing activities: Contributions of capital assets Acquisition of right-of-use asset

See accompanying notes to financial statements.

City of Belton, Texas Notes to Financial Statements

Page I.

Summary of Significant Accounting Policies

II.

Deposits and Investments

III.

Receivables

IV.

Property Taxes

Capital Assets

VI.

Long-Term Debt

VII.

Interfund Transfers

VIII.

Employee Benefits

IX.

Deferred Outflows and Inflows of Resources

Risk Management

XI.

Commitments and Contingencies

XII.

Related Organizations

XIII.

Tax Abatements

XIV.

Authoritative Pronouncements Not Yet Effective

City of Belton, Texas Notes to Financial Statements September 30, 2023

Summary of Significant Accounting Policies A.

Reporting Entity The City of Belton, Texas (the “City”) was founded in 1850 and chartered in January of 1852 under provisions of the Constitution of the State of Texas. The City operates under a home rule charter which was first approved by the electorate on August 20, 1951. Subsequent revisions to the charter occurred in 1990, 2005, and 2020. The charter provides for the Council-Manager form of government for the City. The Council is the legislative and governing body of the City and has control of all the City finances, property, functions, services, affairs and programs, subject to the terms and provisions of the City Charter. The City Manager is the chief executive and administrative officer of the City and is responsible to the Council for the proper administration of all the affairs and business of the City. As authorized by its charter, the City provides the following services: public safety (police and fire), highways and streets, sanitation and health, public improvements, planning and zoning, recreation, general administrative services, and water, sewer, and drainage utilities. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government's operations and so data from these units are combined with data of the primary government. The City did not have any blended component units. A discretely presented component unit, on the other hand, is reported in a separate column in the government-wide financial statements to emphasize it is legally separate from the government. Discretely presented component unit - The Belton Economic Development Corporation, Inc. (the “Development Corporation”) is a governmental nonprofit corporation organized for the purpose of promoting, assisting, and enhancing economic development activities of the City of Belton, Texas. The City Council appoints a governing body that is not substantively the same as the governing body of the primary government. Budgets of the Development Corporation and debt to be incurred must be approved by the Council. Financial statements for the Development Corporation may be obtained from the finance department of the City.

Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the primary government and its component unit. Governmental activities, which normally are 31

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) B.

Government-Wide and Fund Financial Statements (continued) 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. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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 or segment; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

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 financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. 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. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt is reported as an other financing source. 32

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) C.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) Property taxes, sales 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. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City'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 Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. The TIRZ Capital Projects Fund accounts for capital projects in the City’s tax increment and reinvestment zones. Financing is provided by transfer of funds from the TIRZ special revenue fund. The American Rescue Plan Grant Fund accounts for the resources received from the American Rescue Plan Act of 2021 to respond to and recover from the COVID-19 public health emergency. The City reports the following major proprietary funds: The Water and Sewer Fund accounts for the provision of water and sewer services to the residents of the City. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, financing and related debt service, billing, and collection. The Drainage Fund accounts for operations related to providing storm drainage service to the citizens of Belton. All activities necessary to provide such services are accounted for in this fund including, but not limited to, operations, maintenance, financing and related debt service, billing, and collection.

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) C.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) Additionally, the City reports the following major fund type: The Internal Service Funds account for information technology and building maintenance services provided to other departments of the government on a cost reimbursement basis. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes and other charges between the government’s water and sewer function and various other functions of the government. 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. 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 internal service funds are charges to customers for sales and services. The water and sewer fund 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 the enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Budgets and Budgetary Accounting The City’s procedures in establishing the budgetary data reflected in the financial statements are as follows. Between thirty and ninety days prior to the beginning of each fiscal year, the City Manager submits a proposed budget to the City Council. The operating budget includes proposed expenditures and the means of financing them.

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) D.

Budgets and Budgetary Accounting (continued) Public hearings are held on the proposed budget and on the revised budget, if applicable. Prior to September 27, but no sooner than five days after the final public hearing, the budget is legally enacted through passage of an ordinance. If not accepted and formally approved by the City Council before September 27, the budget as submitted by the City Manager is automatically adopted. The City Manager is authorized to transfer budgeted amounts within departments within any fund and with Council authorization, between departments within any fund during the last three months of the fiscal year. Any revisions that alter the total expenditures of any fund must be approved by the City Council. Supplemental appropriations during the year were not significant. A provision is made in the annual budget of the General Fund for a contingent appropriation not to exceed three percent of the total General Fund expenditures to be used in the case of unforeseen expenditures. This contingency is under the control of the City Manager and distributed by him. Disbursements of this appropriation are transferred to the department incurring the expenditure. Annual budgets are legally adopted for the General Fund, the Hotel/Motel Tax Special Revenue Fund, the Debt Service Fund, the TIRZ Special Revenue Fund, the Water and Sewer Fund, the Drainage Fund as well as the Information Technology and Building Maintenance Internal Service Funds. Certain differences exist between the basis of accounting used for budgetary purposes and that used for financial reporting in accordance with generally accepted accounting principles (“GAAP”). Budgets are not prepared for capital project funds because all significant expenditures are based on fixed-bid contracts, which are controlled by management in the initial project planning stages. Budget appropriations lapse at year-end and do not carry forward to future periods. The reported budgetary data has been revised for amendments authorized during the year. The level of control (level at which expenditures may not exceed budget) is the division level of each fund. The City prepares its annual appropriated budgets on a budgetary basis which differs from the GAAP basis. The budget and all transactions of the General Fund are presented in accordance with the City’s budgetary basis in the Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Budgetary Basis to provide a meaningful comparison of actual results with the budget. The major difference between the budgetary basis and the GAAP basis is that revenues, expenditures and other financing sources (uses) of certain activities are not budgeted. 35

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) D.

Budgets and Budgetary Accounting (continued) Adjustments necessary to convert the net change in fund balance on the budgetary basis to a GAAP basis for the General Fund are provided below:

Net change in fund balance - budgetary basis Activities not included in the General Fund budget

1,732,148 193,701

Net change in fund balance - GAAP basis

1,925,849

Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in governmental funds. Encumbrances do not constitute expenditures or liabilities because the commitments lapse at year-end and must be budgeted in the following year. At year-end, the amounts of encumbrances expected to be honored upon performance by the vendor in the next year were as follows:

Nonmajor governmental funds Water and sewer fund

$ 3,935,889 1,090,655

Total primary government

$ 5,026,544

Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand and time deposits, external investment pools and deposits in the City’s internal cash and investment pool. State statutes and the City’s investment policy authorize the City to invest in obligations of the United States and its agencies, certificates of deposit, and public funds investment pools. Investments are reported at fair value. The City invests in public funds investment pools that were created to function as money market mutual funds within appropriate state laws and regulations. Each of these public funds investment pools seek to maintain a constant $1.00 net asset value per share.

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) G.

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" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent 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." All trade and property tax receivables are shown net of an allowance for uncollectibles. The property tax receivable allowance is equal to approximately 30 percent of outstanding property taxes at September 30, 2023.

Inventory and Prepaid Items The City does not maintain any significant amount of supplies. Supplies are expensed when the purchase is made. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

Capital Assets Capital assets, which include land, buildings, improvements other than buildings, machinery and 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. Effective October 1, 2021, capital assets, other than infrastructure assets, are defined by the City as assets with an initial, individual cost of more than $20,000 and an estimated useful life in excess of two years. Effective October 1, 2021, infrastructure assets are defined by the City as assets with an initial, individual cost of more than $50,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized.

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) I.

Capital Assets (continued) Capital assets of the primary government, as well as the component unit, are depreciated using the straight-line method over the following estimated useful lives:

Assets

Years

Buildings Improvements other than buildings Machinery and equipment Infrastructure

40 4 – 50 5 – 25 10 – 30

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 assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. 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 assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Net Position Flow Assumption Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

Fund Balance Flow Assumptions Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance).

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) L.

Fund Balance Flow Assumptions (continued) In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

Pensions For purposes of measuring the net pension asset or liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Texas Municipal Retirement System (“TMRS”) and additions to/deductions from TMRS’s fiduciary net position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Postemployment Benefits Other than Pensions (“OPEB”) For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments are recognized when due and payable in accordance with the benefit terms. There are no investments as this is a payas-you-go plan.

Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave for employees other than those employed under the civil service statute, outlined in local government code chapter 143. Those employed under the rules of civil service may accumulate sick leave that is payable upon their separation from the City, up to the maximum prescribed under the statute. All vacation pay is accrued when incurred in the government-wide and

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) O.

Compensated Absences (continued) proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Accumulated vacation leave, which is expected to be liquidated with expendable available financial resources, is reported as a program expense and fund liability in the general fund. Amounts of accumulated vacation leave within the governmental funds that are not expected to be liquidated with expendable available financial resources are reported as a long-term liability on the statement of net position. No expenditure is reported for these amounts in the fund financial statements. Accumulated vacation leave of proprietary fund types are recorded as an expense and liability of those funds as the benefits accrue to employees.

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. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Fund Balance In the fund financial statements, governmental funds fund balances classified as restricted are balances with constraints placed on the use of resources by creditors, grantors, contributors, or laws or regulations of other governments. Fund balances classified as committed can only be used for specific purposes pursuant to constraints imposed by the City Council (the City’s highest level of decision-making authority)

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) Q.

Fund Balance (continued) by adoption of an ordinance prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken to remove or revise the limitation. Assigned fund balances are constrained by intent to be used for specific purposes but are neither restricted nor committed. Through a provision in the City’s charter, the City Manager may assign fund balance. The City Council may also assign fund balance by ordinance. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. For the classification of governmental fund balances, the City considers expenditures to be made from the most restrictive first when more than one classification is available.

Nonspendable: Prepaid items Restricted for: Court technology and security Public safety Public access facilities Debt service Capital projects Economic development Committed for: Economic development Assigned for: Civil service sick pay and appeals Culture and recreation Capital projects and equipment Unassigned

General

Debt Service

TIRZ Capital Projects

American Rescue Plan Grant

62,272

26,716 -

1,333,124 -

278,109

872,000 8,695,912

$ 9,630,184

26,716

Other Funds

Totals

9,560

71,832

147,396 48,105 478,944 2,035,134

147,396 48,105 478,944 26,716 1,333,124 2,313,243

6,907

547,735 4,812,476 -

872,000 547,735 4,812,476 8,695,912

1,333,124

278,109

8,086,257

19,354,390

Net Position In the government-wide and proprietary fund financial statements, net position represents the difference between assets, deferred outflows and inflows of resources, and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets, and adding back unspent proceeds.

City of Belton, Texas Notes to Financial Statements (Continued)

Summary of Significant Accounting Policies (continued) R.

Net Position (continued) Net position is reported as restricted when there are limitations imposed on its use either through the enabling legislations adopted by the City or through external restrictions imposed by creditors, grantors, laws or regulations of other governments.

Reconciliation of Government-wide and Fund Financial Statements The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains, “long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.” The details of this $13,485,200 difference are as follows: General obligation bonds Premium on general obligation bonds Deferred charge on refunding Compensated absences Accrued interest payable Lease liability Subscription liability Net pension liability Total OPEB liability Pension-related deferred outflows of resources Pension-related deferred inflows of resources OPEB-related deferred outflows of resources OPEB-related deferred inflows of resources

8,526,338 335,537 (50,228) 2,142,189 47,158 39,057 44,624 4,576,393 322,537 (2,659,895) 72,708 (94,432) 183,214

13,485,200

Change in Accounting Principle As of October 1, 2022, the City adopted the provisions of Governmental Accounting Standards Board (“GASB”) Statement No. 96, Subscription-based Information Technology Arrangements. Accordingly, the City has recognized right-of-use subscription assets and subscription liabilities for agreements in the Internal Service Funds and at the government-wide financial statements for an agreement in the General Fund. Adoption of this standard enhances the relevant and consistency of information about the City’s subscription activities. There was no impact on beginning net position or fund balance upon implementation.

City of Belton, Texas Notes to Financial Statements (Continued)

II.

Deposits and Investments Investments of the City at September 30, 2023, consist of investments in Texas Local Government Investment Pool (“TexPool”), Texas Local Government Investment Pool Prime (“TexPool Prime”), Texas Short-Term Asset Reserve Program (“TexSTAR”), TexSTAR Local Government Investment Cooperative (“LOGIC”), and Texas Cooperative Liquid Assets Securities System (“Texas CLASS”) of $24,271,359, $7,685,188, $1,090,005, $7,681,319, and $13,830,916 respectively. Credit Risk: For an investment, credit risk is the risk that an investment issuer or other counterparty to an investment will not fulfill obligations. The Public Funds Investment Act (Government Code Chapter 2256) restricts the types of investments in which the City may invest. The City’s investment policy addresses credit quality by further restricting authorized investments to obligations of the United States and its agencies, and public funds investment pools rated no lower than AAA or an equivalent rating by at least one nationally recognized rating service. The City’s investments in TexPool, TexPool Prime, TexSTAR, LOGIC, and Texas CLASS are rated AAAm by Standard & Poors. Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the City will not invest in securities maturing more than two years from the date of purchase, and the composite portfolio will have a weighted average maturity of 365 days or less. The weighted average maturities of TexPool, TexPool Prime, TexSTAR, LOGIC, and Texas CLASS are 28, 46, 29, 39, and 49 days, respectively, as of September 30, 2023. Custodial Credit Risk: The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. City policy requires all deposits to be fully secured in accordance with state law, by either surety bonds, letters of credit of the United States or its agencies and instrumentalities, or by eligible securities held by an independent third-party custodian. For an investment, custodial credit risk is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investment or collateralized securities that are in the possession of an outside third party. The City’s investment policy requires that the purchase of investment securities be settled on a delivery basis and that ownership of all securities be perfected in the name of the City. The City uses the following external public funds investment pools: TexPool and TexPool Prime: The Texas Local Government Investment Pool (“TexPool”) and the Texas Local Government Investment Pool Prime (“TexPool Prime”) were created by an inter-local contract under the laws of the State of Texas and are governed by the Public Funds Investment Act, Chapter 2256 of the Texas Government Code. TexPool and TexPool Prime are governed by the Comptroller of 43

City of Belton, Texas Notes to Financial Statements (Continued)

II.

Deposits and Investments (continued) Public Accounts as public funds investments pools through the Texas Treasury Safekeeping Trust Company. The Comptroller is the sole officer, director, and shareholder of the Trust Company. The Comptroller and the Texas Treasury Safekeeping Trust Company have contracted with Federated Investors, Inc., as administrator and investment manager for the TexPool Portfolios. There are no maximum transaction amounts and withdrawals from TexPool and TexPool Prime may be made daily. TexPool and TexPool Prime use amortized cost rather than the fair value to report net position to compute share prices. TexSTAR: The Texas Short-Term Asset Reserve Program (“TexSTAR”) was organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment Act, Chapter 2256 of the Texas Government Code. TexStar’s governing body is a five-member Board of Directors consisting of representatives of three participants and one member designated by each of the co-administrators. JPMorgan Investment Management, Inc. (the investment manager) and First Southwest Company, LLC serve as co-administrators for TexSTAR. There are no maximum transaction amounts and withdrawals from TexStar may be made daily. TexSTAR uses amortized cost rather than the fair value to report net position to compute share prices. LOGIC: The Local Government Investment Cooperative (“LOGIC”) was organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and operates under the Public Funds Investment Act, Chapter 2256 of the Texas Government Code. LOGIC’s governing body is a five-member Board of Directors comprised of employees, officers or elected officials of participant government entities or individuals who do not have a business relationship with LOGIC and are qualified to advise it. A maximum of two advisory board members represent the co-administrators for LOGIC. JPMorgan Investment Management, Inc. (the investment manager) and First Southwest Company, LLC serve as co-administrators. There are no maximum transaction amounts and withdrawals from LOGIC may be made daily. LOGIC uses amortized cost rather than the fair value to report net position to compute share prices. Texas CLASS: The Texas Cooperative Liquid Assets Securities System (“Texas CLASS”) was organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment Act, Chapter 2256 of the Texas Government Code. Texas CLASS’s governing body is a threemember Board of Trustees. Public Trust Advisors, LLC serve as the pool’s administrator and investment adviser. There are no maximum transaction amounts and withdrawals from Texas CLASS may be made daily. Texas CLASS uses amortized cost rather than the fair value to report net position to compute share prices. 44

City of Belton, Texas Notes to Financial Statements (Continued)

II.

Deposits and Investments (continued) A reconciliation of deposits and investments as shown on the statement of net position: Cash on hand Carrying amount of deposits Carrying amount of investments Total Per the statement of net position for the City: Cash and cash equivalents

26,240 1,763,154 54,558,787

56,348,181

39,900,735

Per the statement of net position for the Belton Economic Development Corporation, Inc.: Cash and cash equivalents

16,447,446

Total

56,348,181

III. Receivables Receivables as of year-end for the City's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Enterprise Funds

Receivables: Taxes Water/sewer Storm drainage Other

Less: Allowance for uncollectibles $

Drainage

Nonmajor Governmental Funds

Total

1,724,954 1,724,954

72,422 72,422

71,824 6,712 78,536

2,010,397 1,724,954 72,422 494,484 4,302,257

23,099

193,086

9,528

520,544

46,829

1,531,868

62,894

78,536

3,781,713

General

Debt Service

Water and Sewer

1,868,645 487,772 2,356,417

69,928 69,928

294,831 2,061,586

Included in other receivables for the General Fund is a lease receivable in the amount of $18,907. The City entered into a lease agreement in September 2022 in which it leases building space to a corporation as part of an ambulance service contract. The lease has an imputed interest rate of 2.8% and an initial term of two years with monthly rent due of $1,600 starting October 2022. For the year ended September 30, 2023, the total amount of lease revenue recognized was $18,648.

City of Belton, Texas Notes to Financial Statements (Continued)

III. Receivables (continued) Future payment that are included in the measurement of the lease receivable as of September 30, 2023 are as follows: Year Ended September 30, 2024

Principal

Interest

18,907

293

IV. Property Taxes The City's property taxes are levied each October 1 on the assessed value listed as of the previous January 1 for all real and personal property located in the City. The assessed value for the tax roll of January 1, 2022, upon which the 2023 fiscal year levy was based, was $1,869,200,496. The tax rate for fiscal year 2023 was $0.5850 per $100 of assessed valuation at 100 percent of assumed market value. The City may levy a tax of up to $1.90 per $100 of assessed valuation. Taxes were due January 31, 2023, at which time a lien attaches for unpaid taxes. Tax collections during the fiscal year ended September 30, 2023, for the tax year 2022 levy, were 98.3 percent of the total tax levy for that year. Legislation has been passed by the Texas Legislature, which affects the method of property assessment and tax collection in the City. This legislation, with certain exceptions, exempts intangible personal property and household goods. In addition, this legislation creates a "property tax code" and provides, among other things, for the establishment of county appraisal districts and for a state property tax board. The appraisal of property within the City is the responsibility of the county appraisal district. The appraisal district is required under the property tax code to assess all property within the appraisal district on the basis of 100 percent of its appraised value and is prohibited from applying any assessment ratios. The value of property within the appraisal district must be reviewed at least every five years. The City may challenge appraised values established by the appraisal district through various appeals and, if necessary, legal action. State law provides that the City Council sets the ad valorem tax rates on taxable property within the City. With some exceptions, if the adopted maintenance and operations tax rate (which excludes the tax rate necessary to service the debt obligations of the City) exceeds the nonew-revenue maintenance and operations tax rate by more than 3.5 percent, qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than 3.5 percent above the no-new-revenue tax rate. 46

City of Belton, Texas Notes to Financial Statements (Continued)

Capital Assets Capital asset activity for the year ended September 30, 2023, was as follows: Primary Government Beginning Balance

Increases

4,799,921 848,500

786,521 1,809,076

(848,501)

5,586,442 1,809,075

5,648,421

2,595,597

(848,501)

7,395,517

Capital assets, being depreciated and amortized: Buildings $ Improvements other than buildings Machinery and equipment Equipment - right-to-use lease asset Software - right-to-use subscription assets Infrastructure Total capital assets, being depreciated and amortized

10,135,097 4,089,851 8,934,144 50,311,427

909,964 1,141,663 1,312,985 77,571 325,987 3,691,134

(67,838) -

11,045,061 5,231,514 10,179,291 77,571 325,987 54,002,561

73,470,519

7,459,304

(67,838)

80,861,985

Less accumulated depreciation and amortization for: Buildings Improvements other than buildings Machinery and equipment Equipment - right-to-use lease asset Software - right-to-use subscription assets Infrastructure Total accumulated depreciation/ amortization

(5,591,673) (2,915,242) (5,575,661) (22,786,104)

(324,888) (143,610) (738,450) (9,050) (45,621) (2,444,419)

67,838 -

(5,916,561) (3,058,852) (6,246,273) (9,050) (45,621) (25,230,523)

(36,868,680)

(3,706,038)

67,838

(40,506,880)

36,601,839

3,753,266

40,355,105

42,250,260

6,348,863

(848,501)

47,750,622

Governmental activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets not being depreciated

Total capital assets, being depreciated and amortized, net $

Decreases

Ending Balance

City of Belton, Texas Notes to Financial Statements (Continued) V.

Capital Assets (continued) Primary Government (continued) Beginning Balance

Increases

Decreases

Ending Balance

Business-type activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets not being depreciated

285,175 10,974,026

358,851

(10,833,566)

285,175 499,311

11,259,201

358,851

(10,833,566)

784,486

Capital assets, being depreciated and amortized: Buildings Machinery and equipment Equipment - right-to-use lease assets Infrastructure Total capital assets being depreciated and amortized

4,785,262 4,184,946 106,115 76,126,466

252,637 15,364,703

(15,921) -

4,785,262 4,421,662 106,115 91,491,169

85,202,789

15,617,340

(15,921)

100,804,208

Less accumulated depreciation and amortization for: Buildings Machinery and equipment Equipment - right-to-use lease assets Infrastructure Total accumulated depreciation/ amortization:

(502,527) (2,578,395) (10,909) (37,078,287)

(222,076) (372,490) (11,901) (3,763,396)

15,921 -

(724,603) (2,934,964) (22,810) (40,841,683)

(40,170,118)

(4,369,863)

15,921

(44,524,060)

Total capital assets, being depreciated and amortized, net

45,032,671

11,247,477

56,280,148

56,291,872

11,606,328

(10,833,566)

57,064,634

Depreciation and amortization expense was charged to functions/programs of the City as follows: Governmental activities: General government Public safety Highways and streets, including depreciation Planning Culture and recreation Solid waste Maintenance Total depreciation expense - governmental activities Business-type activities: Water and sewer Drainage

135,602 687,774 2,010,928 7,549 794,447 23,284 46,454

$ 3,706,038 $ 4,040,572 329,291

Total depreciation and amortization expense - business-type activities

$ 4,369,863

City of Belton, Texas Notes to Financial Statements (Continued)

Capital Assets (continued) Primary Government (continued) The City has active construction projects as of September 30, 2023. At year-end, the City’s construction commitments for governmental activities are as follows: Expended to Date

Project Title 13th Ave Sidewalks N College St & 13th Ave Reconstruction Standpipe Park Southwest Parkway

Remaining Commitment

79,063 287,181 79,722 1,363,109

250,937 1,145,540 1,420,278 544,498

1,809,075

3,361,253

The projects will be financed with available resources. At September 30, 2023, the City’s construction commitments for business-type activities are as follows: Expended to Date

Project Title Temple-Belton Wastewater Treatment Plant Rockwool Water Line Rockwool Sewer Line Ave S Water Line Standby Generator Project HWY 190/FM 1670 Northeast Addition Loop 121 Pump Station Total

The projects will be financed with available resources.

Remaining Commitment

149,835 105,950 105,950 6,000 38,690 3,900 88,986

333,985 254,440 2,034,230 264,000 351,310 215,100 55,585

499,311

3,508,650

City of Belton, Texas Notes to Financial Statements (Continued)

Capital Assets (continued) Discretely Presented Component Unit Capital asset activity for the Development Corporation for the year ended September 30, 2023, was as follows: Beginning Balance Capital assets, not being depreciated: Land Construction in progress Total capital assets not being depreciated

Increases

Ending Balance

Decreases

906,896 454,272

361,508

(90,562) -

816,334 815,780

1,361,168

361,508

(90,562)

1,632,114

644,218 6,577 1,220,798

1,871,593

Less accumulated depreciation for: Buildings Machinery and equipment Infrastructure Total accumulated depreciation

(163,750) (1,566) (1,220,798) (1,386,114)

(44,686) (940) (45,626)

(208,436) (2,506) (1,220,798) (1,431,740)

Total capital assets, being depreciated, net

485,479

(45,626)

439,853

1,846,647

315,882

(90,562)

2,071,967

Capital assets, being depreciated: Buildings Machinery and equipment Infrastructure Total capital assets being depreciated

At September 30, 2023, the City’s construction commitments for the discretely presented component unit are as follows: Expended to Date

Remaining Commitment

10,000 238,780 115,970 382,415 68,615

1,242,838 1,831,221 384,030 842,883 1,231,384

815,780

5,532,356

Project Title Mays Land Purchase Avenue D Engineering I-14 Water Line I-14 Sewer Line S. Pearl Reconstruction Total

The projects will be financed with available resources.

City of Belton, Texas Notes to Financial Statements (Continued)

VI. Long-Term Debt The City issues general obligation bonds and combination tax and revenue certificates of obligation to provide funds for the acquisition and construction of major capital facilities for both governmental and business-type activities. The amount of this debt that is reported in proprietary funds is that portion that directly relates to a given proprietary fund and that is expected to be repaid from the resources of a proprietary fund. Surplus water and sewer revenues are pledged for the combination tax and revenue certificates of obligation; however, the pledge is limited to only an amount not to exceed $1,000. The following is a summary of changes in long-term debt for the City for the year ended September 30, 2023: Beginning Balance Governmental activities: General obligation bonds Premium Lease liability Subscription liabilities Net pension liability Total OPEB liability Compensated absences

Business-type activities: General obligation bonds Premium Lease liability Net pension liability Total OPEB liability Compensated absences

Additions

Reductions

Ending Balance

Due Within One Year

9,656,725 402,099 890,018 474,260 1,704,718

77,571 325,987 4,825,058 73,428 1,035,302

(1,130,387) (66,562) (38,514) (127,807) (924,433) (210,635) (574,885)

8,526,338 335,537 39,057 198,180 4,790,643 337,053 2,165,135

914,100 39,057 128,442 456,903

13,127,820

6,337,346

(3,073,223)

16,391,943

1,538,502

21,873,268 724,627 96,485 182,120 97,046 105,218

747,679 15,024 101,593

(1,349,613) (82,793) (10,155) (181,800) (43,101) (75,471)

20,523,655 641,834 86,330 747,999 68,969 131,340

1,385,900 10,701 87,152

23,078,764

864,296

(1,742,933)

22,200,127

1,483,753

Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. At year-end, $153,556, $214,250, $14,516 and $22,946 of internal service funds’ subscription liability, net pension liability, total OPEB liability, and compensated absences, respectively, are included in the above governmental amounts. Pension and OPEB liabilities and compensated absences for governmental activities are generally liquidated by the General Fund. Bonds Bonds of the City’s governmental activities at September 30, 2023, are comprised of the following:

City of Belton, Texas Notes to Financial Statements (Continued) VI. Long-Term Debt (continued) $4,500,000 Series 2005 general obligation bonds due in annual installments of $140,000 to $275,000 through 2025; interest at 3.54%

290,000

$1,485,000 Series 2008 combination tax and revenue certificates of obligation due in annual installments of $59,400 to $107,663 through 2028; interest at 4.19%

486,338

$1,070,000 Series 2015 combination tax and revenue certificates of obligation due in annual installments of $45,000 to $65,000 through 2035; interest at 2.00%

700,000

$2,270,000 Series 2017 general obligation refunding certificates of obligation due in annual installments of $135,000 to $175,000 through 2027; interest at 1.65%

690,000

$2,185,000 Series 2018 combination tax and revenue certificates of obligation due in annual installments of $25,000 to $445,000 through 2030; interest at 5.00%

2,030,000

$5,575,000 Series 2019 general obligation refunding bonds due in annual installments of $45,000 to $500,000 through 2033; interest at 4.00%

4,330,000

8,526,338

Annual debt service requirements for governmental activities to maturity are as follows: Year Ended September 30, 2024 2025 2026 2027 2028 2029-2033 2034-2035

Principal

Interest

914,100 947,812 981,525 1,015,238 1,002,663 3,535,000 130,000

282,949 250,759 217,030 184,186 150,011 308,050 5,850

8,526,338

1,398,835

City of Belton, Texas Notes to Financial Statements (Continued) VI. Long-Term Debt (continued) Bonds of the City’s business-type activities at September 30, 2023, are comprised of the following: $515,000 Series 2008 combination tax and revenue certificates of obligation due in annual installments of $20,600 to $37,337 through 2028; interest at 4.19%

168,655

$8,595,000 Series 2015 combination tax and revenue certificates of obligation due in annual installments of $345,000 to $550,000 through 2035; interest at 2.00%

5,635,000

$9,585,000 Series 2016 combination tax and revenue certificates of obligation due in annual installments of $85,000 to $665,000 through 2036; interest at 3.00%

8,215,000

$1,350,000 Series 2017 general obligation refunding certificates of obligation due in annual installments of $105,000 to $170,000 through 2027; interest at 1.50%

435,000

$6,295,000 Series 2022 combination tax and revenue certificates of obligation due in annual installments of $225,000 to $390,000 through 2042; interest at 2.00% to 4.00%

6,070,000 $

20,523,655

Annual debt service requirements to maturity for business-type activities are as follows: Year Ended September 30, 2024 2025 2026 2027 2028 2029-2033 2034-2038 2039-2042

Principal

Interest

1,385,900 1,427,188 1,468,475 1,509,762 1,622,330 6,830,000 4,760,000 1,520,000

588,765 549,780 509,441 463,539 416,173 1,400,640 429,840 80,571

$ 20,523,655

4,438,749

The City's bond indentures contain restrictions concerning the maintenance of accounting records as well as reporting the results of the City's operations to specified major bond holders. The City is in compliance with all significant requirements and restrictions. 53

City of Belton, Texas Notes to Financial Statements (Continued)

VI. Long-Term Debt (continued) Leases The City entered into an operating lease for body cameras used by the Police Department beginning in February 2023. The lease has an imputed interest rate of 4.33% and a lease term of five years requiring two equal payments in April 2023 and February 2024. The lease is funded by the General Fund. The City also leases space on a communication tower for its utility metering system under an operating lease agreement through 2030 funded by the Water and Sewer Fund. The lease has an imputed interest rate of 1.83% with a monthly payment term of $984 in 2023. The lease contains a 3% annual rent escalator. Future principal and interest requirements for the lease liabilities are as follows: Governmental activities: Year Ended September 30,

Principal

2024

39,057

Interest 710

Business-type activities: Year Ended September 30,

Principal

2024 2025 2026 2027 2028 2029-2030

Interest

10,701 11,267 11,855 12,465 13,098 26,944

1,491 1,290 1,079 857 624 499

86,330

5,840

Subscription-Based Information Technology Arrangements (“SBITAs”) The City has entered into subscription-based information technology arrangements (“SBITAs”) for computer software subscriptions through 2027. The SBITAs have imputed interest rates ranging from 4.33% to 5.42%.

City of Belton, Texas Notes to Financial Statements (Continued)

VI. Long-Term Debt (continued) As of September 30, 2023, the principal and interest requirements for the SBITAs liability are as follows: Governmental activities: Year Ended September 30, 2024 2025 2026 2027

Principal

Interest

128,442 54,499 7,423 7,816

6,968 2,749 702 309

198,180

10,728

Discretely Presented Component Unit The following is a summary of changes in long-term debt of the Development Corporation for the year ended September 30, 2023: Beginning Balance

Additions

Reductions

Ending Balance

Due Within One Year

Net pension liability $ Total OPEB liability Compensated absences

19,709 10,502 29,691

107,960 1,627 20,859

(20,651) (4,665) (18,803)

107,018 7,464 31,747

26,856

59,902

130,446

(44,119)

146,229

26,856

VII. Interfund Transfers Interfund transfers for 2023 are as follows: Transfers in

General

TIRZ Capital Projects

Other Nonmajor Governmental

Water and Sewer

Transfers out: General $ American Rescue Plan grant Other nonmajor governmental Water and sewer Drainage Internal service

900,000 70,820 1,029,320 46,650 -

2,200,000 -

2,155,320 4,800 -

28,280 53,900 8,460

2,500 -

6,340 -

2,155,320 941,920 2,270,820 1,029,320 100,550 8,460

2,046,790

2,200,000

2,160,120

90,640

2,500

6,340

6,506,390

Drainage

Internal Service

Total

Transfers are used to: (1) move revenues from the fund responsible for collecting them to the fund responsible for expending them as required by statute or budget; and (2) move unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 55

City of Belton, Texas Notes to Financial Statements (Continued)

VIII. Employee Benefits Pension Plan Plan Description - The City participates as one of 919 plans in the defined benefit cashbalance plan administered by the Texas Municipal Retirement System (“TMRS”). TMRS is a statewide public retirement plan created by the State of Texas and administered in accordance with the Texas Government Code, Title 8, Subtitle G (the “TMRS Act”) as an agent multiple-employer retirement system for employees of Texas participating cities. The TMRS Act places the general administration and management of TMRS with a six-member, Governor-appointed Board of Trustees; however, TMRS is not fiscally dependent on the State of Texas. TMRS issues a publicly available Annual Comprehensive Financial Report (“Annual Report”) that can be obtained at www.tmrs.com. All eligible employees of the City are required to participate in TMRS. 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 member’s benefit is calculated based on the sum of the member’s contributions with interest, and the City-financed monetary credits with interest. The retiring member may select one of seven monthly benefit payment options. Members may also choose to receive a portion of their benefit as a lump sum distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the total member contributions and interest. Employees Covered by Benefit Terms – At the December 31, 2022 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees

96 168 177 441

Contributions – Member contribution rates in TMRS are either 5%, 6%, or 7% of the member’s total compensation, 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 City’s contribution rate is based on the liabilities created from the benefit plan options selected by the City and any changes in benefits or actual experience over time. 56

City of Belton, Texas Notes to Financial Statements (Continued)

VIII. Employee Benefits (continued) Pension Plan (continued) Employees for the City were required to contribute 7.00% of their annual compensation during the fiscal year. The contribution rates for the City were 10.54% and 10.51% in calendar years 2022 and 2023, respectively. The City’s contributions to TMRS for the year ended September 30, 2023 were $1,148,057 and were equal to the required contributions. Net Pension Liability – The City’s net pension liability was measured as of December 31, 2022, and the total pension liability 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, 2022 actuarial valuation was determined using the following actuarial assumptions: Inflation

2.5% per year

Overall payroll growth

2.75% per year, adjusted down for population declines, if any

Investment rate of return

6.75%, net of pension plan investment expense, including inflation

Salary increases were based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees are used with a 4-year set-forward for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and females, respectively, to reflect the impairment for younger members who become disabled. The rates are projected on a fully generation basis by Scale UMP to account for future mortality improvements subject to the 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 Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. 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 longterm funding needs of TMRS. 57

City of Belton, Texas Notes to Financial Statements (Continued)

VIII. Employee Benefits (continued) Pension Plan (continued) 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 weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In order to determine the best estimate of investment return under the various alternative asset allocation portfolios, the actuarial firm 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 2023 are summarized in the following table:

Global Public Equity Core Fixed Income Non-Core Fixed Income Other Public and Private Markets Real Estate Hedge Funds Private Equity Total

Target Allocation

Long-Term Expected Real Rate of Return (Arithmetic)

35.0% 6.0% 20.0% 12.0% 12.0% 5.0% 10.0%

7.70% 4.90% 8.70% 8.10% 5.80% 6.90% 11.80%

100.0%

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 member 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 members. 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.

City of Belton, Texas Notes to Financial Statements (Continued)

VIII. Employee Benefits (continued) Pension Plan (continued) Increase (Decrease) Total Pension Plan Fiduciary Liability Net Position (a) (b) Balance at December 31, 2021

Changes for the year: Service cost Interest (on the Total Pension Liability) Difference between expected and actual experience Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net changes Balance at December 31, 2022

Net Pension Liability (a) - (b)

30,608,686

29,516,839

1,091,847

1,537,638 2,076,522

617,172 -

1,089,423 738,235 (2,153,743)

617,172 (1,089,423) (738,235) 2,153,743

(1,228,444) -

(1,228,444) (18,645) 22,249

18,645 (22,249)

3,002,888

(1,550,925)

4,553,813

33,611,574

27,965,914

5,645,660

$107,018 of the net pension liability of $5,645,660 is the liability of the Development Corporation, the discretely presented component unit. Detailed information regarding the deferred outflows and inflows of resources related to pensions of the component unit can be found in Note IX. 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 one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate: 1% Decrease (5.75%) City's net pension liability

$ 10,701,505

Current Rate Assumption (6.75%) 5,645,660

1% Increase (7.75%) 1,532,198

City of Belton, Texas Notes to Financial Statements (Continued) VIII. Employee Benefits (continued) Pension Plan (continued) Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s Fiduciary Net Position is available in the Schedule of Changes in Fiduciary Net Position, by Participating City. 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, 2023, the City recognized pension expense of $1,572,838 of which $31,659 is the expense of the Development Corporation. At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Differences between expected and actual economic experience Difference between projected and actual investment earnings, net Difference in assumption changes Contributions subsequent to the measurement date

Total

Deferred Outflows of Resources

Deferred Inflows of Resources

490,050

89,696

1,902,348 9,621

879,355

3,281,374

89,696

The $879,355 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, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Measurement Year Ended December 31, 2023 2024 2025 2026

Total

$ 2,312,323

265,893 583,990 633,214 829,226

City of Belton, Texas Notes to Financial Statements (Continued) VIII. Employee Benefits (continued) OPEB Plan Description – The City also participates in a defined benefit group-term life insurance plan administered by TMRS known as the Supplemental Death Benefits Fund (“SDBF”). The City elected, by ordinance, to provide group-term life insurance coverage to both current and retired employees. The City may terminate coverage by adopting an ordinance before November 1 of any year to be effective the following January 1. As the SDBF covers both active and retired members, with no segregation of assets, the SDBF does not meet the definition of a trust under paragraph 4 of Governmental Accounting Standards Board (“GASB”) No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (i.e. no assets are accumulated for OPEB). As such, the SDBF is considered to be a single-employer unfunded OPEB plan with benefit payments treated as being equal to the City’s yearly contributions for retirees. Benefits Provided – 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 a fixed amount of $7,500. Employees Covered by Benefit Terms – At the December 31, 2022 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees

65 35 177 277

Contributions – The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is equal to the cost of providing oneyear 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 term life insurance during employees’ entire careers. The City’s contributions to the SDBF for the year ended September 30, 2023 were $35,755 and were equal to the required contributions. Total OPEB Liability – The City’s total OPEB liability was measured as of December 31, 2022 and the total was determined by an actuarial valuation as of that date.

City of Belton, Texas Notes to Financial Statements (Continued) VIII. Employee Benefits (continued) OPEB (continued) Actuarial assumptions – The total OPEB liability in the December 31, 2022 actuarial valuation was determined using the following actuarial assumptions: Inflation Salary increases Discount rate Administrative expenses

2.5% per year 3.5% to 11.5%, including inflation 4.05% (based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of December 31, 2022) All administrative expenses are paid through the TMRS Pension Trust and accounted for under reporting requirements of GASB Statement No. 68.

Mortality rates for service retirees were based on the 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. For disabled retirees, the 2019 Municipal Retirees of Texas Mortality Tables were used with a 4 year set-forward for males and a 3 year set-forward for females. In addition, a 3.5% and 3% minimum mortality rate will be 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 by scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions used in the December 31, 2022 valuation were based on the results of an actuarial experience study for the period December 31, 2014 to December 31, 2018. The changes in the total OPEB liability for the measurement period ending December 31, 2022 was as follows: Total OPEB Liability Balance at December 31, 2021

Changes for the year: Service cost Interest on total OPEB liability Differences between expected and actual experience Changes in assumptions or other inputs Benefit payments **

581,808 51,676 11,074 8,638 (228,109) (11,601)

Net changes

(168,322)

Balance at December 31, 2022

413,486

** Due to the plan being considered an unfunded OPEB plan under GASB 75, benefit payments are treated as being equal to the employer's yearly contributions for retirees.

City of Belton, Texas Notes to Financial Statements (Continued) VIII. Employee Benefits (continued) OPEB (continued) $7,464 of the total OPEB liability of $413,486 is the liability of the Development Corporation, the discretely presented component unit. Detailed information regarding the deferred outflows and inflows of resources related to OPEB of the component unit can be found in Note IX. 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 4.05%, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (3.05%) or once percentage point (5.05%) higher than the current rate. 1% Decrease (3.05%) City's total OPEB liability

Current Rate Assumption (4.05%)

499,567

413,486

1% Increase (5.05%) 347,835

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2023, the City recognized OPEB expense of $24,344 of which $440 is the expense of the Development Corporation. At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources $ 90,766

Changes in assumptions Differences between expected and actual economic experience Contributions subsequent to the measurement date Total

Deferred Inflows of Resources 199,163

35,716

30,292

121,058

234,879

The $30,292 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, 2024. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: 63

City of Belton, Texas Notes to Financial Statements (Continued) VIII. Employee Benefits (continued) OPEB (continued) Measurement Year Ended December 31, 2023 2024 2025 2026 2027 Thereafter

(20,416) (23,538) (20,644) (36,461) (39,811) (3,243)

Total

(144,113)

IX. Deferred Outflows and Inflows of Resources The statements of financial position and the balance sheet include the following deferred outflows/inflows of resources at September 30, 2023: Statements of Net Position Belton Economic Governmental Business-Type Development Activities Activities Corporation, Inc. Deferred outflows of resources: Deferred charge on refunding Pension - post measurement date contributions Pension - differences in assumption changes Pension - differences between expected and actual experience Pension - net differences between projected and actual earnings OPEB - post measurement date contributions OPEB - differences in assumption changes

Deferred inflows of resources: Unavailable revenue - property taxes Unavailable revenue - fines Unavailable revenue - leases Pension - differences between expected and actual experience OPEB - differences in assumption changes OPEB - differences between expected and actual experience

Balance Sheet Governmental Funds Debt General Service Fund Fund

50,228

746,179

116,507

16,669

8,164

1,275

182

415,834

64,927

9,289

1,614,244

252,044

36,060

24,693

5,052

547

73,989

15,139

1,638

$ 2,933,331

454,944

64,385

18,639

282,255 1,296 18,639

45,135 -

76,112

11,884

1,700

162,347

33,221

3,595

29,113

5,958

645

286,211

51,063

5,940

302,190

45,135

City of Belton, Texas Notes to Financial Statements (Continued) IX. Deferred Outflows and Inflows of Resources (continued) Deferred Outflows of Resources. The deferred charge on refunding, resulting from the difference in the carrying value of the refunded debt and its reacquisition price, is amortized as interest expense over the shorter of the life of the refunded or refunding debt. Postmeasurement date contributions will be recognized as a reduction of the net pension liability and total OPEB liability in the following fiscal year. The changes in assumptions will be recognized in pension and OPEB expense over 3.79 and 6.09 years, respectively. The pension-related differences between expected and actual experience will be recognized in pension expense over 3.79 years. The pension-related difference between projected and actual earnings will be recognized in pension expense over five years. Deferred Inflows of Resources. The governmental funds, under the modified accrual basis of accounting, report unavailable revenues from property taxes, ambulance services, fines, and leases, which is deferred and recognized as an inflow of resources in the period that the amounts become available. The difference between expected and actual experience will be recognized in pension and OPEB expense over 3.79 years and 6.09 years, respectively. The changes in assumptions will be recognized in OPEB expense over 6.09 years. X.

Risk Management The City is a member of the Texas Municipal League's Intergovernmental Risk Pool (the “Pool”). The Pool was created for the purpose of providing coverage against risks, which are inherent in operating a political subdivision. The City pays annual premiums to the Pool for liability, property, and workers' compensation coverage. The City's agreement with the Pool provides that the Pool will be self-sustaining through member premiums and will provide through commercial companies’ reinsurance contracts. The Pool agrees to handle all liability, property, and workers' compensation claims and provide any defense as is necessary. The Pool makes available to the City loss control services to assist the City in following a plan of loss control that may result in reduced losses. The City agrees that it will cooperate in instituting any and all reasonable loss control recommendations made by the Pool. The City also carries commercial insurance on all other risks of loss, including employee health and accident insurance. The City has experienced no significant reductions in coverage through the Pool over the past year. There have been no insurance settlements exceeding Pool coverage for any of the past three years.

XI. Commitments and Contingencies Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies. 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 grantors cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. 65

City of Belton, Texas Notes to Financial Statements (Continued)

XI. Commitments and Contingencies (continued) The Development Corporation has entered into several economic development agreements with business that will provide financial incentives to the businesses based on specific capital investment, employment or other economic development measures. Commitments made under the agreements total approximately $1.94 million. The City has entered into a long-term agreement to purchase water from the Brazos River Authority (the “Authority”). The agreement requires the City to pay for a certain portion of the water rights, whether or not it actually withdraws the full amount of water to which it is entitled. The cost of the water may be adjusted each year based on changes in the consumer price index. Further, additional costs imposed on the Authority (by taxation or as a result of new regulations) may be passed through to the City. The agreement expires in 2042. The City's cost under the agreement for the year ended September 30, 2023 was $37,400. The City has entered into a long-term agreement to purchase water from Bell County Water Control and Improvement District No. 1 (the “District”). The District serves six civilian resale customers (cities and water districts) and the Fort Hood Military Reservation. Under the agreement, the City pays its proportionate share of fixed capital costs (debt service) and operating costs (purchasing, producing, treating and delivering water) of the District. Consequently, the price of the water will vary over the term of the agreement. In addition to capital and operating costs, the contract with the District requires the City to pay for water rights, both for water currently being used (election use water) and for rights to future water (option water). The cost of option water is paid whether or not the City actually withdraws the full amount of water to which it is entitled. The cost of both election use and option water may be adjusted annually each year based on changes in the consumer price index. The original agreement remained in effect until all bonds of the District were repaid, which occurred in 2018. The agreement has been extended through the evaluation of plant expansion and related debt repayment. Charges for water under the agreement for the year ended September 30, 2023 were $1,672,030. Also, the City entered into a tri-party agreement with the City of Temple, Texas (“Temple”) and the Authority, whereby the Authority operates and maintains a wastewater treatment plant for Temple and the City (currently known as the Temple Belton Regional Sewerage System). The City is charged an amount equal to a pro-rata portion of actual expenditures based on its percentage of flow through the plant. The plant is jointly owned by Temple and the City but a separate legal entity was not created. Consequently, Temple and the City each report their proportionate share of capital assets of the plant. The City's expense under the tri-party agreement for the year ended September 30, 2023 was $874,913. Finally, the City has entered into a Development Agreement with Belton Hwy 190/FM 1670 Northeast Partnership, Ltd. (“Partnership”) for the extension of certain water and sewer lines at or near the intersection of Interstate Highway 14 and Boxer Road. The City and Partnership 66

City of Belton, Texas Notes to Financial Statements (Continued)

XI. Commitments and Contingencies (continued) will share the cost of design and construction. The total cost estimated for the project is $260,000. Upon completion, the Partnership will provide an easement and reimburse the City up to $57,500. The City’s expense under this agreement for the year ended September 30, 2023 was $0. The City is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate outcome of these claims will not have a material adverse effect on the City's financial position. XII. Related Organizations The following entities are related organizations to which the City appoints board members but for which the City has no significant financial accountability: Central Texas Housing Consortium, Texas; Public Property Finance Corporation of Texas; and Texas Dormitory Finance Authority. XIII. Tax Abatements The City enters into ad valorem tax abatement agreements with businesses pursuant to its Tax Abatement Policy and Texas Tax Code Chapter 311, Texas Tax Code Chapter 312, Texas Local Government Code Chapter 380 and Section 52-a of the State Constitution of Texas. Under its policy, the City may grant ad valorem tax abatements up to 100% of a business’ ad valorem tax bill for the purpose of the promotion of high quality commercial and industrial development in all parts of the City, and an ongoing improvement of the quality of life of its citizens. For the fiscal year ended September 30, 2023, the City abated ad valorem taxes totaling $9,087, as detailed below: 

A declining ad valorem tax abatement of 90% to 50% over a five-year period to USA Capitol, formerly CSC Group, LP, for the construction of a new facility. The fiscal year 2023 abatement amounted to $-0-. The City may recapture the abated taxes should USA Capitol become delinquent in its payment to the City of any ad valorem taxes not abated or breach any other terms set form in the abatement agreement.



A 70% ad valorem tax abatement on certain improvements to BELLTEC Industries for the construction of a new facility. The fiscal year 2023 abatement amounted to $9,087. The City may recapture the abated taxes should BELLTEC Industries become delinquent in its payment to the City of any ad valorem taxes not abated or breach any other terms set form in the abatement agreement. 67

City of Belton, Texas Notes to Financial Statements (Continued)

XIII. Tax Abatements (continued) Incentive agreements may rebate a flat amount or percentage of property taxes or sales taxes that are received by the City or the Development Corporation. This may result in fee reductions such as utility charges or building inspection fees. Some agreements may take the form of one-time incentive payments to offset expenses. 

The Development Corporation will rebate one-half of its sales tax revenues generated from Glass Expanse for a five-year period upon completion of its facility located in Belton. For fiscal year 2023, the rebate amounted to $-0-.

XIV. Authoritative Pronouncements Not Yet Effective A summary of pronouncements issued by the Governmental Accounting Standards Board (“GASB”), which may impact the City but are not yet effective follows. The City has not yet determined the effects of the adoption of these pronouncements on the financial statements. GASB Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB 62 (Statement 100) – The objective of Statement 100 is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The provisions of Statement 100 are effective for financial statements for fiscal years beginning after June 15, 2023. GASB Statement No. 101, Compensated Absences (Statement 101) – The objective of Statement 101 is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences through a unified recognition and measurement model and amendment of certain previously required disclosures. The provisions of Statement 101 are effective for financial statements for fiscal years beginning after December 15, 2023.

Required Supplementary Information

City of Belton, Texas General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Budgetary Basis For the Fiscal Year Ended September 30, 2023

Budgeted Amounts Original Final

Actual Amounts (Budgetary Basis)

Variance with Final Budget

7,834,360 63,550 68,200 7,966,110 6,113,840 1,209,020 46,760 15,335,730

7,624,360 63,550 68,200 7,756,110 6,113,840 1,209,020 46,760 15,125,730

7,644,478 45,081 79,233 7,768,792 6,128,828 1,321,668 72,535 15,291,823

20,118 (18,469) 11,033 12,682 14,988 112,648 25,775 166,093

Licenses and permits: Building Electrical Plumbing Mechanical Swimming pool Rezoning fees Subdivision fees Technology fees Miscellaneous Total licenses and permits

252,390 72,690 83,490 29,450 2,400 6,350 11,070 7,440 9,560 474,840

254,720 78,534 80,467 44,491 2,830 6,955 10,807 2,945 22,241 503,990

2,330 5,844 (3,023) 15,041 430 605 (263) (4,495) 12,681 29,150

Intergovernmental

337,610

835,610

863,576

27,966

8,600 24,990 109,690 10,000 217,110 17,580 226,310 1,930,080 2,544,360

8,600 84,990 109,690 10,000 217,110 17,580 226,310 2,030,080 2,704,360

6,193 65,758 123,882 (10,000) 291,523 880 224,345 1,941,768 2,644,349

(2,407) (19,232) 14,192 (20,000) 74,413 (16,700) (1,965) (88,312) (60,011)

195,080 81,210 276,290

241,862 108,730 350,592

46,782 27,520 74,302

Interest

8,500

488,500

474,707

(13,793)

Contributions and donations

Payments in lieu of taxes

11,030

11,887

857

Miscellaneous

56,030

54,003

(2,027)

19,044,390

19,972,390

20,194,927

222,537

Revenues: Taxes: Current ad valorem Delinquent ad valorem Penalty and interest Total ad valorem Sales Franchise Alcoholic beverage Total taxes

Charges for services: Library Ambulance Parks and recreation PPFC/TDFA Finance Fees Sale of Efflucent Water Code Enforcement Brush collection Refuse collection Total charges for services Fines: Municipal court Court fees Total fines

Total revenues

City of Belton, Texas General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Budgetary Basis For the Fiscal Year Ended September 30, 2023 (continued)

Budgeted Amounts Original Final

Actual Amounts (Budgetary Basis)

Variance with Final Budget

248,030 1,112,810 615,520 348,020 230,730 2,555,110

248,030 1,144,810 615,520 348,020 230,730 2,587,110

246,930 1,119,344 602,870 323,949 217,639 2,510,732

(1,100) (25,466) (12,650) (24,071) (13,091) (76,378)

Public safety: Police Fire Total public safety

6,071,780 3,475,740 9,547,520

6,519,680 3,520,740 10,040,420

6,342,320 3,471,849 9,814,169

(177,360) (48,891) (226,251)

Highways and streets

1,919,660

934,660

834,686

(99,974)

926,600

1,053,600

909,889

(143,711)

Culture and recreation: Parks Library Total culture and recreation

1,695,860 481,440 2,177,300

1,695,860 461,440 2,157,300

1,549,727 464,192 2,013,919

(146,133) 2,752 (143,381)

Solid waste

1,798,940

1,900,640

1,800,556

(100,084)

Maintenance services

472,330

517,330

494,369

(22,961)

Total expenditures

19,397,460

19,191,060

18,378,320

(812,740)

Excess (deficiency) of revenues over (under) expenditures

(353,070)

781,330

1,816,607

1,035,277

Other financing sources (uses): Insurance proceeds Transfers in Transfers out Total other financing sources (uses)

2,243,030 (1,386,560) 856,470

2,243,030 (2,354,660) (111,630)

24,071 2,243,030 (2,351,560) (84,459)

24,071 3,100 27,171

Net change in fund balances Fund balances, beginning of year

503,400 7,582,826

669,700 7,582,826

1,732,148 7,582,826

1,062,448 -

8,086,226

8,252,526

9,314,974

1,062,448

Expenditures: General government: City council City administration Finance Human Resources Legal Total general government

Planning

Fund balances, end of year

See accompanying independent auditor’s report.

City of Belton, Texas Schedule of Changes in Net Pension Liability and Related Ratios – Employees’ Pension Plan Last Nine Measurement Dates

2022

2021

2020

December 31, 2019

1,537,638 2,076,522 617,172 (1,228,444)

1,286,036 1,944,419 (180,300) (1,209,321)

1,311,159 1,805,889 1,156,532 127,208 (1,149,484)

1,071,723 1,611,792 47,913 133,749 (1,382,322)

Net change in Total Pension Liability

3,002,888

1,840,834

3,251,304

1,482,855

Total Pension Liability - beginning

30,608,686

28,767,852

25,516,548

24,033,693

33,611,574

30,608,686

28,767,852

25,516,548

1,089,423 738,235 (2,153,743) (1,228,444) (18,645) 22,249

899,252 619,563 3,368,454 (1,209,321) (15,595) 107

870,847 542,549 1,804,665 (1,149,484) (11,689) (456)

711,639 511,970 3,208,114 (1,382,322) (18,141) (544)

Net change in Plan Fiduciary Net Position

(1,550,925)

3,662,460

2,056,432

3,030,716

Plan Fiduciary Net Position - beginning

29,516,839

25,854,379

23,797,947

20,767,231

Total Pension Liability Service cost Interest (on the Total Pension Liability) Change in benefit terms including substantively automatic status Difference between expected and actual experience Changes of assumptions Benefit payments, including refunds of employee contributions

Total Pension Liability - ending (a)

Plan Fiduciary Net Position Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other

Plan Fiduciary Net Position - ending (b)

27,965,914

29,516,839

25,854,379

23,797,947

Net Pension Liability - ending (a) - (b)

5,645,660

1,091,847

2,913,473

1,718,601

83.20%

96.43%

89.87%

93.26%

10,546,211

8,850,904

9,042,479

8,532,827

53.53%

12.34%

32.22%

20.14%

Plan Fiduciary Net Position as a percentage of Total Pension Liability Covered-employee payroll

Net Pension Liability as a percentage of covered-employee payroll

Note: The City adopted GASB Statement No. 68, Accounting and Financial Reporting Reporting for Pensions, effective October 1, 2014. Information for years prior to 2014 is not available.

See accompanying independent auditor’s report.

2018

2017

2016

2015

2014

1,052,574 1,532,001 115,219 (191,864) (1,058,081)

891,715 1,439,110 (90,945) (1,060,641)

862,169 1,361,691 (111,361) (900,011)

826,770 1,307,310 (80,818) 351,416 (950,060)

697,959 1,245,375 (172,175) (951,498)

1,449,849

1,179,239

1,212,488

1,454,618

819,661

22,583,844

21,404,605

20,192,117

18,737,499

17,917,838

24,033,693

22,583,844

21,404,605

20,192,117

18,737,499

642,579 424,425 (641,418) (1,058,081) (12,396) (648)

609,271 403,491 2,614,129 (1,060,641) (13,547) (686)

536,111 391,895 1,193,044 (900,011) (13,474) (726)

561,505 397,104 26,023 (950,060) (15,851) (783)

476,627 359,990 961,087 (951,498) (10,034) (825)

(645,539)

2,552,017

1,206,839

17,938

835,347

21,412,770

18,860,753

17,653,914

17,635,976

16,800,629

20,767,231

21,412,770

18,860,753

17,653,914

17,635,976

3,266,462

1,171,074

2,543,852

2,538,203

1,101,523

86.41%

94.81%

88.12%

87.43%

94.12%

8,488,498

8,069,816

7,837,901

7,942,074

7,199,806

38.48%

14.51%

32.46%

31.96%

15.30%

City of Belton, Texas Schedule of Contributions – Employees’ Pension Plan Fiscal Years Ended

Actuarially Determined Contributions

Contributions in relation to the actuarially determined contributions

September 30, 2018

2015

2016

2017

527,669

542,064

586,051

636,453

527,669

542,064

586,051

636,453

Contribution deficiency (excess)

Covered-employee payroll Contributions as a percentage of covered-employee payroll

$ 7,561,577

7,865,451

7,928,962

8,409,865

7.0%

6.9%

7.4%

7.6%

See accompanying independent auditor’s report.

2019

2020

2021

2022

2023

704,034

812,119

906,268

1,077,406

1,148,057

704,034

812,119

906,268

1,077,406

1,148,057

8,567,031

8,662,089

9,062,334

10,471,451

11,256,250

8.2%

9.4%

10.0%

10.3%

10.2%

City of Belton, Texas Schedule of Contributions – Employees’ Pension Plan (continued)

Notes to Schedule of Contributions Valuation Date: Notes

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 Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 23 years (longest amortization ladder) Asset Valuation Method 10 year smoothed fair market value, 12% soft corridor Inflation 2.50% Salary Increases 3.50% to 11.50%, including inflation Investment 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 an experience study 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.

Note: The City of Belton adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions, effective October 1, 2014. Information for years prior to 2015 is not available.

See accompanying independent auditor’s report.

City of Belton, Texas Schedule of Changes in Total OPEB Liability and Related Ratios – Employees’ OPEB Plan Last Six Measurement Dates

2022

2021

December 31, 2020 2019

2018

2017

51,676 11,074 8,638 (228,109) (11,601)

37,174 11,199 (20,591) 18,400 (11,506)

27,127 13,130 (30,445) 75,244 (3,617)

20,479 13,809 (4,216) 75,370 (3,413)

22,070 12,587 (10,688) (27,421) (4,244)

17,754 12,161 30,214 (3,228)

Net change in Total OPEB Liability

(168,322)

34,676

81,439

102,029

(7,696)

56,901

Total OPEB Liability - beginning

581,808

547,132

465,693

363,664

371,360

314,459

Total OPEB Liability Service cost Interest (on the Total OPEB Liability) Changes in benefit terms including TMRS plan participation Differences between expected and actual experience Changes in assumptions or other inputs Benefit payments**

Total OPEB Liability - ending (a)

413,486

581,808

547,132

465,693

363,664

371,360

Covered-employee payroll

$ 10,546,211

8,850,904

9,042,479

8,532,827

8,488,498

8,069,816

3.92%

6.57%

6.05%

5.46%

4.28%

4.60%

Total OPEB Liability as a percentage of covered-employee payroll

** There are no assets accumulated in a trust for the OPEB plan to pay related benefits. Due to the plan being considered an unfunded OPEB plan under GASB 75, benefit payments are treated as being equal to the employer's yearly contributions for retirees.

Note: The City adopted GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions , effective October 1, 2017. Information for years prior to 2017 is not available.

See accompanying independent auditor’s report.

City of Belton, Texas Schedule of Contributions – Employees’ OPEB Plan Fiscal Years Ended

Actuarially Determined Contributions

Contributions in relation to the actuarially determined contributions

2018

2019

September 30, 2020 2021

2022

2023

15,105

14,181

11,514

18,572

22,243

35,755

15,105

14,181

11,514

18,572

22,243

35,755

Contribution deficiency (excess)

Covered-employee payroll Contributions as a percentage of covered-employee payroll

$ 8,409,865

8,567,031

8,662,089

9,062,334

0.2%

0.1%

0.2%

10,471,451 11,256,250 0.2%

0.3%

City of Belton, Texas Schedule of Contributions – Employees’ OPEB Plan (continued)

Notes to Schedule of Contributions Valuation Date: Notes

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: Inflation 2.5% Salary increases 3.5% to 11.5%, including inflation 4.05% Discount rate Retirees' share of benefit-related costs $0 Administrative expenses All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements under GASB Statement No. 68. Mortality rates-services retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with Scale UMP. Mortality rates-disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4 year set-forward for males and a 3 year set-forward for females. In addition, a 3.5% and 3% minimum mortality rate will be 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 by Scale UMP to account for future mortality improvements subject to the floor. Note: The City of Belton adopted GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, effective October 1, 2017. Information for fiscal years prior to 2018 is not available.

See accompanying independent auditor’s report.

Combining and Individual Fund Statements and Schedules

Nonmajor Governmental Funds Special Revenue Funds

Special Revenue Funds are used to account for specific revenue that is legally restricted to expenditure for particular purposes. Hotel/Motel Tax Fund: This fund is used to account for the levy and utilization of the local hotel occupancy tax. State law requires that revenue from this tax be used for advertising and promotion of the City. TIRZ Fund: This fund accounts for economic development projects in the City's tax increment and reinvestment zone. Financing is provided by certain tax revenues collected within the City's tax increment and reinvestment zone pursuant to state tax code statutes and county contributions. Grant Fund: This fund is used to account for the City's grant expenditures and reimbursements from various federal and state grants received. Municipal Court Funds: These funds are used to account for court technology and security fees collected in connection with citations issued by the City. State law requires that revenue from these fees be used for technological and security enhancements of the municipal court and/or the building that houses the court. In addition, these funds are used to account for fees collected for truancy prevention. TDHCA Home Grants Fund: This fund is used to account for the City's Texas Department of Housing and Community Affairs HOME Program which provides payment assistance to qualified first-time home buyers within the City of Belton and funding for the rehabilitation and replacement of dilapidated owneroccupied housing within the City of Belton. Other Special Revenue Funds: These funds are used to account for various other revenues of the City that are legally or contractually restricted for specific purposes that include donations to the police and fire departments, collection of public access fees, donations for improving and equipping City parks, developer fees for tree removal, maintenance of the Far North Belton Cemetery, and special events hosted by the City and funded in whole or in part by hotel occupancy tax with the intent to increase overnight tourism.

Capital Projects Funds Capital Projects Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. General Capital Projects Fund: This fund accounts for construction of various facility and infrastructure projects which extend over several fiscal years. Financing is provided primarily by the transfer of funds from the General Fund. General Capital Equipment Fund: This fund accounts for acquisition of various capital equipment. Financing is provided primarily by the transfer of funds from the General Fund. Vehicle and Equipment Replacement Funds: These funds account for the systematic replacement of fire and police department fleet vehicles, and public works fleet vehicles and equipment based on age, condition, and usable life. Financing is provided by the transfer of funds from the General Fund.

City of Belton, Texas Combining Balance Sheet Nonmajor Governmental Funds September 30, 2023 Special Revenue Hotel/ Motel Tax

TIRZ

Grant

Municipal Court

TDHCA Home Grants

Other Special Revenue Funds

Special Revenue Funds Total

Assets Cash and cash equivalents Receivables Due from other governments Prepaid items

739,659 71,824 9,560

1,199,384 -

27,330 31,361 -

147,396 -

6,907 41,426 -

1,103,216 6,712 -

3,223,892 78,536 72,787 9,560

Total assets

821,043

1,199,384

58,691

147,396

48,333

1,109,928

3,384,775

5,130 5,575 10,705

172 172

8,691 50,000 58,691

41,426 41,426

55,419 55,575 110,994

9,560 800,778 810,338

1,199,212 1,199,212

147,396 147,396

6,907 6,907

562,193 547,735 1,109,928

9,560 2,709,579 6,907 547,735 3,273,781

821,043

1,199,384

58,691

147,396

48,333

1,109,928

3,384,775

Liabilities and Fund Balances Liabilities: Accounts and retainages payable Unearned revenue Total liabilities Fund balances: Nonspendable Restricted Committed Assigned Total fund balances Total liabilities and fund balances

See accompanying independent auditor’s report.

City of Belton, Texas Combining Balance Sheet Nonmajor Governmental Funds (continued)

General Capital Projects

Capital Projects Vehicle and General Equipment Capital Replacement Equipment Funds

Capital Project Funds Total

Total Nonmajor Governmental Funds

3,979,692 -

337,457 -

967,322 -

5,284,471 -

8,508,363 78,536 72,787 9,560

3,979,692

337,457

967,322

5,284,471

8,669,246

140,314

38,000

293,681

140,314

38,000

293,681

471,995 471,995

527,414 55,575 582,989

3,839,378 3,839,378

299,457 299,457

673,641 673,641

4,812,476 4,812,476

9,560 2,709,579 6,907 5,360,211 8,086,257

3,979,692

337,457

967,322

5,284,471

8,669,246

City of Belton, Texas Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds For the Fiscal Year Ended September 30, 2023 Special Revenue

Revenues: Taxes Franchise Intergovernmental Fines Interest Contributions and donations Miscellaneous revenue Total revenues

Expenditures: Current: General government Public safety Culture and recreation Economic development Debt service: Principal Interest and fiscal charges Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures

Other Special Revenue Funds

Special Revenue Funds Total

Hotel/ Motel Tax

TIRZ

Grant

Municipal Court

TDHCA Home Grants

350,072 31,775 1,400 383,247

1,769,884 958,226 61,653 2,789,763

131,184 131,184

36,481 4,404 40,885

335,731 52 335,783

28,460 25,885 48,356 24,966 3,325 130,992

2,119,956 28,460 1,451,026 36,481 146,240 24,966 4,725 3,811,854

159,583 -

90,948

8,800 127,184 -

2,955 -

379,988

21,097 24,058 -

159,583

255,000 10,270 356,218

135,984

2,955

379,988

45,155

171,338 148,281 24,058 470,936 255,000 10,270 1,079,883

223,664

2,433,545

(4,800)

37,930

(44,205)

85,837

2,731,971

Other financing sources (uses): Insurance proceeds Sale of capital assets Transfers in Transfers out Total other financing sources (uses)

16,122 (35,410)

(2,235,410)

4,800 -

30,000 -

(16,122)

50,922 (2,286,942)

(19,288)

(2,235,410)

4,800

30,000

(16,122)

(2,236,020)

Net change in fund balances

204,376

198,135

37,930

(14,205)

69,715

495,951

Fund balances, beginning of year

605,962

1,001,077

109,466

21,112

1,040,213

2,777,830

810,338

1,199,212

147,396

6,907

1,109,928

3,273,781

Fund balances, end of year

See accompanying independent auditor’s report.

City of Belton, Texas Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds (continued)

General Capital Projects

Capital Projects Vehicle and General Equipment Capital Replacement Equipment Funds

Capital Project Funds Total

Total Nonmajor Governmental Funds

134,492 153,334 287,826

16,151 18,025 34,176

56,433 56,433

207,076 171,359 378,435

2,119,956 28,460 1,451,026 36,481 353,316 24,966 176,084 4,190,289

12,638 17,650 79,228 -

50,734 -

12,638 17,650 129,962 -

183,976 165,931 154,020 470,936

393,139 502,655

67,266 118,000

1,038,061 1,038,061

1,498,466 1,658,716

255,000 10,270 1,498,466 2,738,599

(214,829)

(83,824)

(981,628)

(1,280,281)

1,451,690

214,956 1,065,000 -

11,250 1,060,320 -

214,956 11,250 2,125,320 -

214,956 11,250 2,176,242 (2,286,942)

1,279,956

1,071,570

2,351,526

115,506

1,065,127

(83,824)

89,942

1,071,245

1,567,196

2,774,251

383,281

583,699

3,741,231

6,519,061

3,839,378

299,457

673,641

4,812,476

8,086,257

City of Belton, Texas Hotel/Motel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Budgetary Basis For the Fiscal Year Ended September 30, 2023

Budgeted Amounts Original Final Revenues: Hotel/motel taxes Interest Miscellaneous Total revenues

Variance With Final Budget

288,100 500 288,600

318,100 500 318,600

350,072 31,775 1,400 383,247

31,972 31,275 1,400 64,647

Expenditures: General government Total expenditures

132,770 132,770

164,540 164,540

159,583 159,583

4,957 4,957

Excess of revenues over expenditures

155,830

154,060

223,664

69,604

Other financing sources (uses): Transfers in Transfers out

(35,410)

16,122 (35,410)

16,122 -

Net change in fund balance

120,420

118,650

204,376

85,726

Fund balance, October 1

605,962

726,382

724,612

810,338

85,726

Fund balance, September 30

Actual Amounts (Budgetary Basis)

See accompanying independent auditor’s report.

City of Belton, Texas Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Budgetary Basis For the Fiscal Year Ended September 30, 2023

Budgeted Amounts Original Final Revenues: Taxes Interest Total revenues

Actual Amounts (Budgetary Basis)

Variance With Final Budget

$ 1,209,320 830 1,210,150

1,209,320 830 1,210,150

1,178,278 31,119 1,209,397

(31,042) 30,289 (753)

Expenditures: Principal Interest and fiscal charges Other costs Total expenditures

875,390 312,790 8,200 1,196,380

875,387 312,782 6,053 1,194,222

3 8 2,147 2,158

Excess (deficiency) of revenues over (under) expenditures

13,770

15,175

1,405

Other financing sources (uses): Transfers in

Net change in fund balance

13,770

15,175

1,405

Fund balance, October 1

11,541

25,311

26,716

1,405

Fund balance, September 30

See accompanying independent auditor’s report.

City of Belton, Texas TIRZ Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Budgetary Basis For the Fiscal Year Ended September 30, 2023

Budgeted Amounts Original Final

Actual Amounts (Budgetary Basis)

Variance With Final Budget

1,789,550 1,037,940 700 2,828,190

1,769,884 958,226 61,653 2,789,763

(19,666) (79,714) 60,953 (38,427)

170,000

90,948

79,052

255,000 10,800 435,800

255,000 10,270 356,218

530 79,582

Excess of revenues over expenditures

2,392,390

2,433,545

41,155

Other financing sources (uses): Transfers out

(2,235,410)

Net change in fund balance

156,980

198,135

41,155

Fund balance, October 1

1,001,077

1,158,057

1,199,212

41,155

Revenues: Taxes Intergovernmental Interest Total revenues

Expenditures: Current: Economic development Debt service: Principal Interest and fiscal charges Total expenditures

Fund balance, September 30

See accompanying independent auditor’s report.

Internal Service Funds Internal Service Funds are used to account for financing of goods and services provided by one department or agency to other departments or agencies of the City and to other government units on a cost reimbursement basis. Information Technology Fund: This fund accounts for all costs of providing general information technology services to City divisions. These activities are financed through charges for services rendered. Building Maintenance Fund: This fund accounts for all costs of providing routine building maintenance services to City divisions. These activities are financed through charges for services rendered.

City of Belton, Texas Combining Statement of Net Position Internal Service Funds September 30, 2023 Information Technology

Building Maintenance

Total

Assets Current assets: Cash and cash equivalents Prepaid items Total current assets

303,808 95,051 398,859

279,406 279,406

583,214 95,051 678,265

Noncurrent assets: Capital assets: Machinery and equipment Subscription right-of-use assets Less: accumulated depreciation/amortization Total capital assets

231,370 237,360

(119,941) 348,789

Total noncurrent assets

348,789

Total assets

747,648

279,406

1,027,054

Deferred outflows of resources Deferred outflows of resources

68,996

59,780

128,776

Liabilities Current liabilities: Accounts payable Accrued liabilities Subscription liabilities - current Compensated absences - current Total current liabilities

50,263 6,013 83,818 9,490 149,584

12,696 5,374 654 18,724

62,959 11,387 83,818 10,144 168,308

Noncurrent liabilities: Subscription liabilities Compensated absences payable Net pension liability Total OPEB liability Total noncurrent liabilities

69,738 7,487 115,263 6,842 199,330

5,315 98,987 7,674 111,976

69,738 12,802 214,250 14,516 311,306

348,914

130,700

479,614

5,718

5,932

11,650

195,233 266,779

202,554

195,233 469,333

462,012

202,554

664,566

Total liabilities Deferred inflows of resources Deferred inflows of resources Net position Net investment in capital assets Unrestricted Total net position

See accompanying independent auditor’s report.

City of Belton, Texas Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds For the Year Ended September 30, 2023 Information Technology

Building Maintenance

1,100,610 1,100,610

491,280 491,280

1,591,890 1,591,890

Operating expenses: Salaries and wages Employee benefits Supplies Repairs and maintenance Other charges Depreciation and amortization Other operating expenses Total operating expenses

233,039 78,112 89,117 333,466 83,603 70,480 6,040 893,857

200,687 82,927 36,620 48,079 28,031 3,778 400,122

433,726 161,039 125,737 381,545 111,634 70,480 9,818 1,293,979

Operating income

206,753

91,158

297,911

Nonoperating revenues: Interest earnings Interest expense

5,675 (4,317)

7,614 -

13,289 (4,317)

1,358

7,614

8,972

208,111

98,772

306,883

3,130 -

3,210 (8,460)

6,340 (8,460)

Change in net position

211,241

93,522

304,763

Total net position, beginning of year

250,771

109,032

359,803

462,012

202,554

664,566

Operating revenues: Charges for services Total operating revenues

Total nonoperating revenues Income before transfers Transfers in Transfers out

Total net position, end of year

See accompanying independent auditor’s report.

Total

City of Belton, Texas Combining Statement of Cash Flows Internal Service Funds For the Year Ended September 30, 2023 Information Technology Cash flows from operating activities: Receipts from customers Payments to suppliers Payments to employees Net cash provided by operating activities

Building Maintenance

Total

1,100,610 (535,699) (236,755) 328,156

491,280 (180,023) (204,284) 106,973

1,591,890 (715,722) (441,039) 435,129

3,130

(5,250)

(2,120)

3,130

(5,250)

(2,120)

(54,814) (88,121)

(142,935)

Cash flows from investing activities: Interest received Net cash provided by investing activities

5,675 5,675

7,614 7,614

13,289 13,289

Net increase in cash and cash equivalents

194,026

109,337

303,363

Cash and cash equivalents, beginning of year

109,782

170,069

279,851

303,808

279,406

583,214

206,753

91,158

297,911

70,480 446 27,851 2,114 3,716

4,915 1,630 3,597

70,480 446 32,766 3,744 7,313

16,393

5,222

21,615

403 121,403

451 15,815

854 137,218

Cash flows from noncapital financing activities: Transfers from (to) other funds Net cash provided by (used in) noncapital financing activities Cash flows from capital and related financing activities: Purchases of capital assets Principal and interest payments on subscription Net cash used in capital and related financing activities

Cash and cash equivalents, end of year

Reconciliation of operating income to net cash provided by operating activities: Operating income $ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization Decrease in prepaid items Increase in accounts payable Increasee in accrued liabilities Increase in compensated absences payable Increase in net pension liability and pension-related deferred outflows and inflows of resources Increase in total OPEB liability and OPEB-related deferred outflows of resources Total adjustments Net cash provided by operating activities

328,156

106,973

435,129

Noncash capital and related financing activities: Acquisition of subscription asset

237,360

See accompanying independent auditor’s report.

City of Belton, Texas Statistical Section This part of the City of Belton's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Contents

Page

Financial Trends

100

These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue sources.

110

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.

120

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.

130

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 government provides and the activities it performs.

134

Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.

City of Belton, Texas Net Position by Component Last Ten Years (Accrual Basis of Accounting) (Unaudited)

Fiscal Year 2014

2015

2016

2017

Governmental activities Net investment in capital assets Restricted Unrestricted

$ 16,461,658 2,701,028 6,963,750

20,253,143 2,846,948 6,462,523

24,492,141 2,300,596 5,385,680

24,735,870 1,123,142 6,115,680

Total governmental activities net position

$ 26,126,436

29,562,614

32,178,417

31,974,692

Business-type activities Net investment in capital assets Restricted Unrestricted

$ 18,121,998 6,334,986

21,325,320 4,941,679

27,592,280 7,176,189

31,298,115 6,348,421

Total business-type activities net position

$ 24,456,984

26,266,999

34,768,469

37,646,536

Primary government Net investment in capital assets Restricted Unrestricted

$ 34,583,656 2,701,028 13,298,736

41,578,463 2,846,948 11,404,202

52,084,421 2,300,596 12,561,869

56,033,985 1,123,142 12,464,101

Total primary government net position

$ 50,583,420

55,829,613

66,946,886

69,621,228

100

Fiscal Year 2021

2018

2019

2020

2022

2023

25,577,477 2,245,552 5,570,034

26,552,859 3,115,867 5,966,036

29,333,704 3,527,740 7,386,442

31,392,391 5,008,535 7,000,387

32,230,617 6,859,323 8,753,858

38,253,910 4,392,843 11,617,522

33,393,063

35,634,762

40,247,886

43,401,313

47,843,798

54,264,275

33,628,880 7,284,409

33,448,863 9,508,311

37,888,290 10,359,174

41,254,526 9,782,874

37,626,249 12,382,097

37,629,389 16,019,965

40,913,289

42,957,174

48,247,464

51,037,400

50,008,346

53,649,354

59,206,357 2,245,552 12,854,443

60,001,722 3,115,867 15,474,347

67,221,994 3,527,740 17,745,616

72,646,917 5,008,535 16,783,261

69,856,866 6,859,323 21,135,955

75,883,299 4,392,843 27,637,487

74,306,352

78,591,936

88,495,350

94,438,713

97,852,144

107,913,629

101

City of Belton, Texas Changes in Net Position Last Ten Years (Accrual Basis of Accounting) (Unaudited) Fiscal Year Expenses Governmental activities: General government Public safety Highways and streets Planning Culture and recreation Solid waste Economic development Maintenance Interest Total governmental activities expenses

2014

2015

2016

2017

1,542,268 6,274,184 1,979,832 349,526 1,700,193 996,945 461,622 400,394 552,290 14,257,254

1,534,183 6,513,269 2,176,849 352,821 1,873,363 1,039,691 180,440 398,974 540,242 14,609,832

1,689,517 7,542,557 2,092,553 346,111 2,174,373 1,096,528 209,272 432,894 524,277 16,108,082

1,716,860 7,267,041 3,748,290 410,159 2,287,621 1,149,978 303,486 488,765 530,523 17,902,723

5,577,444 312,075 5,889,519

5,912,553 280,317 6,192,870

6,612,667 438,375 7,051,042

7,587,275 467,002 8,054,277

$ 20,146,773

20,802,702

23,159,124

25,957,000

1,577,432 205,792 71,857 1,191,335 646,637 2,283,115 5,976,168

1,744,958 188,172 76,672 1,207,841 747,749 3,758,025 7,723,417

1,656,931 221,395 83,249 1,271,762 1,044,637 2,783,748 7,061,722

1,724,140 331,412 84,260 1,330,093 1,031,482 1,756,063 6,257,450

5,550,825 367,956 348,298 6,267,079

6,164,279 360,021 1,764,757 8,289,057

6,898,744 377,991 8,588,839 15,865,574

7,857,459 389,231 3,296,277 11,542,967

$ 12,243,247

16,012,474

22,927,296

17,800,417

(6,886,415) 2,096,187 (4,790,228)

(9,046,360) 8,814,532 (231,828)

(11,645,273) 3,488,690 (8,156,583)

Business-type activities: Water and sewer Drainage Total business-type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services: General government Public safety Planning Culture and recreation Solid waste Maintenance Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business-type activities: Charges for services: Water and sewer Drainage Capital grants and contributions Total business-type activities program revenues Total primary government program revenues Net (expense)/revenue Governmental activities Business-type activities Total primary government net expense

(8,281,086) 774,522 (7,506,564)

102

City of Belton, Texas Changes in Net Position Last Ten Years (Accrual Basis of Accounting) (Unaudited) Fiscal Year 2018

2019

2020

2021

2022

2023

1,708,939 7,583,124 3,048,186 376,194 2,231,611 1,233,457 20,538 551,823 500,946 17,254,818

1,922,535 7,732,691 2,931,121 420,375 2,263,114 1,375,670 254,749 620,433 444,005 17,964,693

2,148,096 7,549,450 2,901,276 461,414 2,338,802 1,446,642 332,050 657,567 415,010 18,250,307

2,720,745 8,402,934 3,410,000 522,439 2,775,670 1,533,809 75,715 568,396 333,711 20,343,419

2,538,856 9,478,735 2,857,347 552,775 2,683,622 1,694,189 408,870 547,620 322,675 21,084,689

2,869,141 11,205,902 3,796,008 938,176 2,988,778 1,825,819 1,087,562 522,999 267,813 25,502,198

7,292,722 583,665 7,876,387

7,399,552 518,216 7,917,768

7,914,735 520,771 8,435,506

10,102,907 612,115 10,715,022

11,986,427 648,130 12,634,557

10,612,384 611,816 11,224,200

25,131,205

25,882,461

26,685,813

31,058,441

33,719,246

36,726,398

1,256,344 249,596 100,485 1,411,823 935,743 1,960,463 5,914,454

1,284,306 265,243 118,731 1,567,214 1,004,165 2,186,550 6,426,209

84,653 234,209 47,610 1,677,146 2,318,475 3,183,589 7,545,682

174,336 328,168 347,166 111,787 2,033,848 69,252 1,707,513 1,465,540 6,237,610

128,461 310,275 566,050 145,816 2,222,750 195,157 2,205,343 1,045,229 6,819,081

131,931 358,377 503,990 110,876 2,474,690 304,763 1,973,113 4,368,371 10,226,111

8,506,124 452,795 2,404,750 11,363,669

8,467,402 492,638 1,104,514 10,064,554

9,002,210 517,462 4,624,032 14,143,704

9,396,990 544,076 3,940,303 13,881,369

10,516,924 559,393 1,441,835 12,518,152

12,445,945 571,739 2,082,358 15,100,042

17,278,123

16,490,763

21,689,386

20,118,979

19,337,233

25,326,153

(11,340,364) 3,487,282 (7,853,082)

(11,538,484) 2,146,786 (9,391,698)

(10,704,625) 5,708,198 (4,996,427)

(14,105,809) 3,166,347 (10,939,462)

(14,265,608) (116,405) (14,382,013)

(15,276,087) 3,875,842 (11,400,245)

103

City of Belton, Texas Changes in Net Position Last Ten Years (Accrual Basis of Accounting – Continued) (Unaudited) 2014 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes $ 5,581,133 Sales taxes 3,069,314 Franchise taxes 1,183,602 Hotel/motel taxes 177,932 Alcoholic beverage taxes 40,579 Unrestricted investment earnings 13,715 Miscellaneous 88,762 Gain (loss) on sale of capital assets 191,869 Transfers 367,659 Total governmental activities 10,714,565

Fiscal Year 2015 2016

2017

5,916,916 3,205,411 1,148,273 157,454 39,204 28,003 102,773 36,937 294,516 10,929,487

6,355,718 3,155,659 1,171,669 147,230 38,434 42,668 399,537 17,821 333,427 11,662,163

6,608,619 3,276,982 1,164,334 167,691 40,811 113,232 276,195 (981,302) 774,986 11,441,548

5,118 24,668 (367,659) (337,873)

16,624 108,079 (294,516) (169,813)

33,343 (36,600) (309,805) (313,062)

149,443 14,920 (774,986) (610,623)

Total primary government

$ 10,376,692

10,759,674

11,349,101

10,830,925

Change in Net Position Governmental activities Business-type activities

2,433,479 436,649

4,043,072 1,926,374

2,615,803 8,501,470

(203,725) 2,878,067

Total primary government

2,870,128

5,969,446

11,117,273

2,674,342

Business-type activities: Unrestricted investment earnings Miscellaneous Gain on sale of capital assets Transfers Total business-type activities

104

Fiscal Year 2018

2019

2020

2021

2022

2023

7,014,638 3,510,105 1,248,967 162,032 46,951 168,241 355,287 503,778 13,009,999

7,417,023 3,573,712 1,252,492 189,851 55,115 281,580 312,387 140,266 557,757 13,780,183

8,374,239 4,085,122 1,243,128 172,435 43,241 146,401 564,626 89,331 599,226 15,317,749

9,009,410 4,896,247 1,238,870 234,924 61,008 19,147 113,680 58,805 562,731 16,194,822

9,776,118 5,721,518 1,320,018 289,819 72,538 173,436 264,505 36,941 1,053,200 18,708,093

10,796,469 6,128,828 1,350,128 350,072 72,535 1,263,192 687,360 11,250 1,036,730 21,696,564

285,490 2,637 43,061 (503,778) (172,590)

369,904 5,481 36,007 (514,293) (102,901)

167,618 13,700 (599,226) (417,908)

19,867 11,500 (562,731) (531,364)

140,551 (1,053,200) (912,649)

796,196 5,700 (1,036,730) (234,834)

12,837,409

13,677,282

14,899,841

15,663,458

17,795,444

21,461,730

1,669,635 3,314,692

2,241,699 2,043,885

4,613,124 5,290,290

2,089,013 2,634,983

4,442,485 (1,029,054)

6,420,477 3,641,008

4,984,327

4,285,584

9,903,414

4,723,996

3,413,431

10,061,485

105

City of Belton, Texas Fund Balances of Governmental Funds Last Ten Years (Modified Accrual Basis of Accounting) (Unaudited) Fiscal Year 2014

2015

General fund 7,519 Nonspendable prepaid expense $ Restricted for: Public access facilities 177,076 Public safety 20,370 Cemetery 3,082 Assigned to: Civil service sick pay 722,099 Other purposes 17,163 Unreserved/Unassigned 4,657,271 Total general fund

$ 5,604,580

All other governmental funds Nonspendable prepaid expense $ Restricted for: Debt service 172,923 Capital projects 6,314,205 Economic development 1,596,879 Public access facilities Public safety 137,804 Other purposes 36,416 Committed to: Economic development 20,730 Assigned to capital projects Capital projects 1,763,345 Other purposes Unassigned Total all other governmental funds

$ 10,042,302

106

2016

2017

8,169

7,829

4,409

204,307 10,894 3,106

233,434 10,995 3,115

264,425 10,936 3,140

719,391 29,511 4,768,975

704,950 32,233 5,029,559

824,834 35,744 5,104,032

5,744,353

6,022,115

6,247,520

132,462 5,310,080 1,826,018 114,421 42,959

158,685 4,484,401 1,192,880 162,757 36,293

169,940 1,310,998 541,585 68,645 37,976

23,859

21,680

7,034

1,617,003

1,088,912

1,912,218

(1,218)

(4,830)

(584)

9,065,584

7,140,778

4,047,812

Fiscal Year 2018 2019

2020

2021

2022

2023

6,699

7,392

7,511

4,899

6,407

62,272

299,494 4,693 3,189

785,547 33,658 5,122,832

759,785 44,522 5,077,904

872,000 40,479 7,128,597

872,000 5,454,084

872,000 6,825,928

872,000 8,695,912

6,256,112

5,889,603

8,048,587

6,330,983

7,704,335

9,630,184

2,000

9,560

306,462 1,434,099 133,575 36,898

236,154 1,673,625 590,801 335,911 184,467 45,857

30,511 2,199,282 650,597 368,665 181,800 62,511

74,204 3,115,834 1,123,890 397,590 182,038 83,146

11,541 4,580,753 1,641,057 430,133 50,825 109,985

26,716 1,333,124 2,313,243 478,944 48,105 147,396

5,082

43,650

33,816

41,142

37,189

6,907

1,985,455

2,415,820

(96,497)

(20,364)

1,959,629 49,660 -

4,133,972 89,881 -

3,741,231 527,919 -

4,812,476 547,735 -

3,805,074

5,505,921

5,536,471

9,241,697

11,132,633

9,724,206

107

City of Belton, Texas Changes in Fund Balance of Governmental Funds Last Ten Years (Modified Accrual Basis of Accounting) (Unaudited)

Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines Rental Interest Contributions and donations Payments in lieu of taxes Miscellaneous Total revenues

2014 10,051,287 205,792 2,630,028 2,434,770 419,299 11,800 13,715 194,298 7,515 86,003 16,054,507

Fiscal Year 2015 2016 10,467,602 10,878,885 188,172 221,395 3,308,812 2,523,212 2,526,593 2,589,725 377,875 389,614 15,600 14,300 28,003 44,564 279,926 406,507 9,164 9,489 93,967 385,988 17,295,714 17,463,679

2017 11,259,914 331,412 1,122,211 2,743,579 333,039 113,232 267,036 9,532 277,542 16,457,497

1,460,528 5,963,512 1,029,737 327,937 1,155,054 986,098 461,622 391,983

1,475,263 6,278,268 1,061,613 337,730 1,196,792 1,027,958 186,379 363,981

1,588,236 6,492,045 924,047 325,475 1,281,494 1,079,976 209,272 388,027

1,580,289 6,711,922 946,466 375,071 1,357,934 1,123,844 321,695 440,884

629,399 533,035

841,824 533,119 5,841,144 19,504,659

906,824 510,588 35,682 5,906,783 20,217,982

Expenditures General government Public safety Highways and streets Planning Culture and recreation Solid waste Economic development Maintenance Debt service Principal Interest and fiscal charges Bond issuance cost Capital outlay Total expenditures

4,672,441 17,611,346

733,112 541,331 15,234 6,366,845 19,584,506

Excess of revenues over (under) expenditures

(1,556,839)

(2,288,792)

(2,040,980)

(3,760,485)

99,777 177,139 2,616,554 (2,248,895) 644,575 (912,264)

18,601 31,775 1,715,681 (1,421,165) 1,070,000 36,955 1,451,847 (836,945)

25,360 35,149 1,576,500 (1,243,073) 393,936 (1,647,044)

49,458 18,480 2,458,921 (1,683,935) 50,000 892,924 (2,867,561)

8.98%

9.64%

10.06%

10.15%

Other financing sources (uses) Insurance proceeds Sale of capital assets Transfers in Transfers out Issuance of leases Issuance of subscriptions Issuance of debt Premium on issuance of debt Payments to refunding escrow agents Other uses Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures

108

2018 11,969,151 249,596 1,155,895 2,692,984 301,237 168,241 270,332 9,375 359,222 17,176,033

2019 12,467,060 265,243 2,514,469 2,216,309 384,661 281,580 240,789 9,118 314,712 18,693,941

Fiscal Year 2020 2021 13,868,310 15,456,659 234,209 347,166 2,232,140 2,408,017 1,911,644 2,196,422 308,271 295,708 146,401 19,101 86,335 15,093 10,333 10,851 345,091 71,506 19,142,734 20,820,523

2022 17,145,073 566,050 2,395,652 2,401,104 319,888 172,557 89,721 11,900 203,827 23,305,772

1,249,903 24,966 11,887 442,639 29,511,775

1,665,115 7,030,556 1,561,526 360,172 1,585,759 1,205,209 20,538 507,201

1,777,826 6,936,055 1,294,284 391,355 1,587,938 1,342,432 254,749 545,038

2,038,418 6,890,563 1,271,603 441,831 1,620,003 1,429,589 332,050 602,186

2,472,428 7,193,703 1,562,728 471,912 1,920,206 1,511,814 75,715 473,616

2,397,066 8,901,282 901,266 564,325 2,074,496 1,684,639 408,870 536,696

2,704,711 9,768,946 1,776,918 909,889 2,146,830 1,800,557 1,087,562 494,370

1,010,538 413,177 1,527 4,790,466 20,151,784

1,104,250 459,583 2,409,366 18,102,876

1,217,963 379,357 121,174 1,657,426 18,002,163

1,181,675 408,048 2,266,894 19,538,739

1,211,675 370,258 2,172,570 21,223,143

1,212,905 331,790 8,216,085 30,450,563

(2,975,751)

591,065

1,140,571

1,281,784

2,082,629

(938,788)

26,065 41,186 2,412,836 (1,909,058) 2,170,576 2,741,605 (234,146)

46,753 138,763 3,439,234 (2,881,477) 743,273 1,334,338

245,800 81,546 1,723,042 (1,123,816) 5,575,000 521,559 (5,974,168) 1,048,963 2,189,534

37,102 178,066 5,179,667 (4,603,073) 791,762 2,073,546

58,009 56,170 4,170,391 (3,102,911) 1,181,659 3,264,288

239,027 12,134 6,406,910 (5,368,060) 77,571 88,628 1,456,210 517,422

9.27%

9.96%

9.77%

9.20%

8.30%

6.95%

109

2023 18,618,517 503,990 5,618,378 2,654,422 387,073

City of Belton, Texas General Governmental Tax Revenues By Source Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (Unaudited)

Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (1)

Property Tax (1)

Sales Tax

Franchise Tax

Hotel/Motel Occupancy Tax

5,587,375 5,926,424 6,375,382 6,619,628 7,010,469 7,405,006 8,334,717 9,036,460 9,753,080 10,716,954

3,069,314 3,205,411 3,155,659 3,276,982 3,510,105 3,573,712 4,085,122 4,896,247 5,721,518 6,128,828

1,183,601 1,148,273 1,171,668 1,164,334 1,248,967 1,252,492 1,243,128 1,238,870 1,320,018 1,350,128

177,932 157,454 147,230 167,691 162,032 189,851 172,435 234,924 289,819 350,072

Alcoholic Beverage Tax 40,579 39,204 38,434 40,811 46,951 55,115 43,241 61,008 72,538 72,535

Includes penalty and interest on delinquent taxes and payments in lieu of taxes.

110

Total

% Change

10,058,802 10,476,766 10,888,373 11,269,446 11,978,524 12,476,176 13,878,643 15,467,509 17,156,973 18,618,517

6.86% 4.16% 3.93% 3.50% 6.29% 4.15% 11.24% 11.45% 10.92% 8.52%

City of Belton, Texas Municipal Sales Tax History Last Ten Fiscal Years (Unaudited)

Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Total Collected 3,069,314 3,205,411 3,155,659 3,276,982 3,510,105 3,573,712 4,085,122 4,896,247 5,721,518 6,128,828

Percent of Ad Valorem Tax Levy 56% 55% 50% 50% 50% 49% 49% 55% 59% 57%

Equivalent Ad Valorem Tax Rate 0.3683 0.3604 0.3314 0.3292 0.3325 0.3201 0.3246 0.3446 0.3712 0.3332

Per Capita 155 156 149 151 159 159 179 199 233 241

Notes: The City has adopted the Municipal Sales and Use Tax Act V.A.T.C.S., Tax Code, Chapter 321, which grants the City the power to impose and levy a 1% Local Sales and Use Tax within the City. Proceeds are credited to the General Fund and are not pledged to the payment of the Bonds. Collections and enforcements are effective through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds of the tax, after deducting a 2% service fee, to the City monthly.

111

112

City of Belton, Texas Principal Property Taxpayers Current Year and Nine Years Ago (Unaudited)

2023 Taxable Assessed Value

Taxpayer River Springs at Barge Ranch $ Turtle Creek Investments Oncor Electric Delivery Chappell Hill Equity III Legacy Landing Group Colonial Crossing Company Wal-Mart Stratasys Direct Manufacturing CMH Manufacturing 2007 Belton Shady Lane Lp HEB Grocery Company Airgas Southwest, Inc. Tarco of Texas Belco Manufacturing

36,328,138 29,549,378 22,261,160 17,726,352 17,193,760 16,377,917 10,850,000 9,877,808 9,376,427 9,031,573 -

Subtotal

Other Taxpayers Total

Rank 1 2 3 4 5 6 7 8 9 10

2014 Percentage of Total Taxable Assessed Value

Taxable Assessed Value

1.94% 1.58% 1.19% 0.95% 0.92% 0.88% 0.58% 0.53% 0.50% 0.48% -

178,572,513

9.55%

1,690,627,983

90.45%

1,869,200,496

100%

14,608,424 11,381,599 7,457,563 11,789,562 14,205,576 5,675,750 15,227,439 7,219,639 5,740,029 4,490,905

2 5 6 4 3 9 1 7 8 10

1.75% 1.36% 0.89% 1.41% 0.00% 1.70% 0.00% 0.68% 0.00% 1.82% 0.86% 0.69% 0.54%

97,796,486

11.70%

738,101,541

88.30%

835,898,027

100%

Source: Bell County Appraisal District, Top 10 Taxpayer Report and Certified 2022 Tax Roll.

113

Rank

Percentage of Total Taxable Assessed Value

City of Belton, Texas Assessed Value and Adjusted Taxable Value of Property Last Ten Years (Unaudited) Fiscal Year 2014

2015

2016

2017

Single-Family Residential Property Other Property

$ 522,384,977 653,254,439

$ 554,335,813 715,752,062

$ 586,835,143 748,363,534

$ 617,668,260 786,091,839

Total Assessed Value (1)

1,175,639,416

1,270,087,875

1,335,198,677

1,403,760,099

Exemptions and Reductions

(339,741,389)

(375,226,179)

(388,827,555)

(406,166,184)

Certified Taxable Value

835,898,027

894,861,696

946,371,122

997,593,915

Adjustments After Certification

(2,563,532)

(5,363,818)

5,882,894

(2,289,883)

$ 833,334,495

$ 889,497,878

$ 952,254,016

$ 995,304,032

$5,498,341

$5,868,907

$6,282,972

$6,567,016

70.9%

70.0%

71.3%

70.9%

Adjusted Taxable Value

Adjusted Tax Levy Adjusted Taxable Value % of Assessed Ad Valorem Tax Rate (2)

0.6598

Source: Bell County Appraisal District, Certified Tax Rolls and Year-to-Date Recap Report as of September 30, 2023. (1)

Chapter 23, Section 23.01 (a) of the Texas Tax Code states that all taxable property is assessed at 100% of its market value. (2)

Per $100 of taxable value.

Assessed and taxable values reflect the certified and uncertified values of each fiscal year as of September 30, 2023.

114

Fiscal Year 2018

2019

2020

2021

2022

2023

$ 665,420,476 811,985,942

$ 706,346,298 845,579,588

$ 808,110,348 1,042,499,490

$ 906,641,580 1,179,756,119

$ 1,047,686,312 1,117,217,836

$1,396,892,070 1,269,490,422

1,477,406,418

1,551,925,886

1,850,609,838

2,086,397,699

2,164,904,148

2,666,382,492

(420,159,125)

(431,772,543)

(583,756,203)

(621,307,925)

(608,314,328)

(797,181,996)

1,057,247,293

1,120,153,343

1,266,853,635

1,465,089,774

1,556,589,820

1,869,200,496

(1,539,654)

(3,670,166)

(8,488,524)

(44,092,155)

(15,141,725)

(29,876,906)

$ 1,055,707,639

$ 1,116,483,177

$ 1,258,365,111

$ 1,420,997,619

$ 1,541,448,095

$ 1,839,323,590

$6,965,559

$7,366,556

$8,302,693

$8,952,285

$9,711,123

$10,760,043

71.5%

71.9%

68.0%

68.1%

71.2%

69.0%

0.6598

115

0.6300

0.5850

City of Belton, Texas Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) Fiscal Year Taxes levied: Fiscal year levy Adjustments in subsequent years Total of taxes levied (1)

2014

2015

2016

2017

$ 5,515,442 (17,101) 5,498,341

$ 5,886,071 (17,164) 5,868,907

$ 6,242,079 40,893 6,282,972

$ 6,586,489 (19,473) 6,567,016

Taxes collected: Fiscal year collections Collections in subsequent years (2) Total of taxes collected

5,426,284

5,780,783

6,213,465

6,493,885

62,291 $5,488,575

78,055 $5,858,838

57,446 $6,270,911

58,857 $6,552,742

Collection rates: Percentage collected in fiscal year Percentage collected of total levy

98.69% 99.82%

98.50% 99.83%

98.89% 99.81%

98.89% 99.78%

Delinquent taxes: Total outstanding balance Percentage of total levy outstanding

9,766 0.18%

10,069 0.17%

12,061 0.19%

14,274 0.22%

Notes: (1)

The tax levy reflects the certified and uncertified property values of each fiscal year as of September 30, 2023.

(2)

Negative tax collections in subsequent years reflect refunds due to losses in property tax hearings.

116

Fiscal Year 2018

2019

2020

2021

2022

2023

$ 7,009,948 (44,389) 6,965,559

$ 7,386,463 (19,907) 7,366,556

$ 8,341,442 (38,749) 8,302,693

$ 9,102,329 (150,044) 8,952,285

$ 9,777,074 (65,951) 9,711,123

$ 10,980,333 (220,290) 10,760,043

6,881,333

7,282,464

8,181,665

8,839,461

9,581,195

10,583,055

67,789 $6,949,122

64,051 $7,346,515

76,676 $8,258,341

42,419 $8,881,880

37,506 $9,618,701

$10,583,055

98.79% 99.76%

98.86% 99.73%

98.54% 99.47%

98.74% 99.21%

98.66% 99.05%

98.36% 98.36%

16,437 0.24%

20,041 0.27%

44,352 0.53%

70,405 0.79%

92,422 0.95%

176,988 1.64%

117

City of Belton, Texas Property Tax Rates Direct and Overlapping Governments Last Ten Years (Unaudited) Fiscal Year 2014

2015

2016

2017

City of Belton by Fund: General Debt Service Total Direct Rates (1)

0.5488 0.1110 0.6598

0.5425 0.1173 0.6598

0.5332 0.1266 0.6598

0.5393 0.1205 0.6598

Belton ISD Bell County Bell County Road District Bell County WCID #6 Clear Water Underground Wtr. Cons. Dist. Total Direct and Overlapping Rates (1) (2)

1.4500 0.4212 0.0299 0.0000 0.0040 2.5649

1.4400 0.4212 0.0299 0.0000 0.0040 2.5549

1.4400 0.4212 0.0299 0.0300 0.0039 2.5848

Source: Bell County Appraisal District (1)

Tax rates per $100 of assessed value.

(2)

Overlapping rates and levies are those of local and county governments that apply to property owners within the City of Belton. Not all overlapping rates and levies apply to all City of Belton property owners (e.g., the rates for special districts apply only to the proportion of the city's property owners whose property is located within the geographic boundaries of the special district).

118

Fiscal Year 2018

2019

2020

2021

2022

2023

0.5545 0.1053 0.6598

0.5650 0.0948 0.6598

0.5712 0.0886 0.6598

0.5289 0.1011 0.6300

0.5466 0.0834 0.6300

0.5080 0.0770 0.5850

1.6030 0.4212 0.0299 0.0300 0.0038 2.7477

1.4651 0.4208 0.2920 0.0297 0.0036 2.8710

1.3651 0.3968 0.0285 0.0300 0.0033 2.4537

1.3571 0.3680 0.0263 0.0280 0.0031 2.4125

1.3371 0.3160 0.0233 0.0266 0.0027 2.2907

119

City of Belton, Texas Direct and Overlapping Governmental Activities Debt General Obligation Bonds September 30, 2023 (Unaudited)

Debt Outstanding

Governmental Unit City Direct Debt (1) Overlapping Debt : Belton Independent School District Salado Independent School District Bell County Total overlapping Total direct and overlapping debt

(1) (2)

Estimated Share of Overlapping Debt

Estimated Percentage Applicable (2)

9,099,112 (1)

100.00 %

378,025,000 55,390,000 134,990,000

32.47% 1.58% 6.71%

122,744,718 875,162 9,057,829

568,405,000 $ 577,504,112

9,099,112

132,677,709 $

141,776,821

City Direct Debt is comprised of debt obligations supported by a pledge of ad valorem taxes. Overlapping debt estimates provided by Municipal Advisory Council of Texas

120

City of Belton, Texas Valuation, Exemptions and Ad Valorem Tax Debt September 30, 2023 (Unaudited) 2022 Tax Year, 2023 Fiscal Year Market Valuation (1) Less Exemptions/Reductions 2022 Tax Year, 2023 Fiscal Year Net Taxable Assessed Valuation

$ $

Debt Payable from Ad Valorem Taxes as of 09/30/2023 Less Self-Supporting Debt (2) Net Debt Payable from Ad Valorem Taxes Interest & Sinking Fund as of 9/30/2023 Ratio Net Tax Supported Debt to Taxable Assessed Valuation 2023 Estimated Population Per Capita Taxable Assessed Valuation Per Capita Net Debt Payable from Ad Valorem Taxes

$ $ $

$ $

2,666,382,492 (797,181,996) 1,869,200,496 30,350,931 (21,251,819) 9,099,112

26,716 0.49% 25,466 73,400 357

(1)

Valuations established by Bell County Tax Appraisal District.

(2)

Self-supporting debt payable from the City's water & sewer utility fund and the drainage fund.

121

122

City of Belton, Texas Tax Adequacy September 30, 2023 (Unaudited) (1)

2023 Net Principal and Interest Requirements $0.0649 Tax Rate at 98% Collection Produces

$ 1,188,169 $ 1,188,849

Average Annual Net Principal and Interest Requirements, 2023-2035 $0.0405 Tax Rate at 98% Collection Produces

$ $

(1)

Excludes self-supporting ad valorem tax debt.

123

740,889 741,886

City of Belton, Texas Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited)

Fiscal Year 2014

2015

2016

2017

Governmental Activities General Obligation Bonds General Obligation Premium Certificates of Obligation Certificates of Obligation Premium Lease Liability SBITA Liability Total Governmental Activities

4,060,000 10,829,588 14,889,588

3,695,000 11,531,476 36,955 15,263,431

3,320,000 11,064,651 33,301 14,417,952

2,930,000 10,597,826 30,436 13,558,262

Business-Type Activities General Obligation Bonds Certificates of Obligation Certificates of Obligation Premium Lease Liability Total Business-Type Activities

682,800 4,315,409 4,998,209

406,300 12,603,518 296,853 13,306,671

126,850 11,945,343 267,819 12,340,012

1,350,000 19,327,168 517,240 21,194,408

Total Primary Government

19,887,797

28,570,102

26,757,964

34,752,670

4.82

6.68

5.45

6.91

1,004

1,393

1,261

1,600

Percentage of Personal Income Per Capita

(1)

Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. See the Schedule of Demographic and Economic Statistics for personal income and population data.

(1)

124

. Fiscal Year 2018

2019

2020

2021

2022

2023

2,525,000 12,177,288 92,312 14,794,600

3,830,000 9,768,039 82,260 13,680,299

8,340,000 475,298 3,710,076 72,690 12,598,064

7,320,000 409,630 3,548,400 63,339 11,341,369

6,265,000 347,875 3,391,725 54,224 10,058,824

5,310,000 290,160 3,216,338 45,377 39,057 198,180 9,099,112

1,180,000 18,337,550 472,055 19,989,605

1,015,000 17,706,956 427,852 19,149,808

855,000 16,844,919 384,719 18,084,638

695,000 15,956,593 341,929 16,993,522

540,000 21,333,268 724,627 96,485 22,694,380

435,000 20,088,655 641,834 86,330 21,251,819

34,784,205

32,830,107

30,682,702

28,334,891

32,753,204

30,350,931

6.58

5.82

4.99

4.27

4.81

3.58

1,576

1,457

1,344

1,151

1,334

1,192

125

City of Belton, Texas Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited)

Fiscal Year 2014

2015

2016

2017

$ 833,334,495

$ 889,497,878

$ 952,254,016

$ 995,304,032

14,889,588 (172,923) 14,716,665

15,263,431 (132,462) 15,130,969

14,417,952 (158,685) 14,259,267

13,558,262 (169,940) 13,388,322

Ratio of Net Bonded Debt to Taxable Value

1.77%

1.70%

1.50%

1.35%

Population (3)

19,809

20,517

21,214

21,721

Taxable Value of Property All property

(1)

Net Bonded Debt (2) Gross bonded debt Debt service funds Net Bonded Debt

Net Bonded Debt Per Capita

743

737

672

Note: The values reflect adjusted taxable value as of September 30, 2023. See Assessed Value and Adjusted Taxable Value of Property for more details. (1)

Taxable values reflect the certified and uncertified values of each fiscal year as of September 30, 2023.

(2)

Net bonded debt reflects obligations supported by a pledge of ad valorem taxes.

(3)

Population data can be found in the Schedule of Demographic and Economic Statistics.

126

616

Fiscal Year 2018

2019

2020

2021

2022

2023

$1,055,707,639

$1,116,483,177

$1,258,365,111

$1,420,997,619

$ 1,541,448,095

$ 1,839,323,590

14,794,600 (306,462) 14,488,138

13,680,299 (236,154) 13,444,145

12,598,064 (30,512) 12,567,552

11,341,369 (74,203) 11,267,166

10,058,824 (11,541) 10,047,283

9,099,112 (26,716) 9,072,396

1.37%

1.20%

1.00%

0.79%

0.65%

0.49%

22,078

22,532

22,833

24,610

24,553

25,466

656

597

550

127

458

409

356

City of Belton, Texas Legal Debt Margin Information Last Ten Years (Unaudited) Fiscal Year 2014

2015

2016

2017

117,563,942

127,008,788

133,519,868

140,376,010

Total net debt applicable to limit

14,716,665

15,130,969

14,259,267

13,388,322

Legal debt margin

102,847,277

111,877,819

119,260,601

126,987,688

14.31%

13.52%

11.96%

10.54%

$ 1,175,639,416

1,270,087,875

1,335,198,677

1,403,760,099

117,563,942

127,008,788

133,519,868

140,376,010

19,887,797

28,570,102

26,757,964

34,752,670

(4,998,209)

(13,306,671)

(12,340,012)

(21,194,408)

(172,923) 14,716,665 $ 102,847,277

(132,462) 15,130,969 $ 111,877,819

(158,685) 14,259,267 $ 119,260,601

(169,940) 13,388,322 $ 126,987,688

Debt limit

(1)

Total net debt applicable to the limit as a percentage of debt limit Legal Debt Margin Calculation Assessed Value Debt limit (10% of assessed value) Debt applicable to limit: General obligation bonds Less: pledged utility revenues Less: amount set aside for repayment of debt Total net debt applicable to limit Legal debt margin

(1) All taxable property in the City of Belton is subject to the assessment, levy, and collection by the City of an annual ad valorem tax levied, within the limits prescribed by law, sufficient to provide for the payment of principal and interest on debt issued by the government. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.5 per $100 of assessed valuation for all City purposes. The City operates under a Home-Rule Charter, which limits its tax rate to $1.90 per $100 Assessed Valuation for all City purposes. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the maximum tax rate for general obligation debt service, as calculated at the time of issuance. The City's total rate of $0.5850 and debt rate of $0.0770 are well below the maximum rates allowed by law.

128

Fiscal Year 2018

2019

2020

2021

2022

2023

147,740,642

155,192,589

185,060,984

208,639,770

216,490,415

266,638,249

14,488,138

13,444,145

12,567,552

11,267,166

10,047,283

9,072,396

133,252,504

141,748,443

172,493,432

197,372,604

206,443,132

257,565,853

10.87%

9.48%

7.29%

5.71%

4.87%

3.52%

1,477,406,418

1,551,925,886

1,850,609,838

2,086,397,699

2,164,904,148

2,666,382,492

147,740,642

155,192,589

185,060,984

208,639,770

216,490,415

266,638,249

34,784,205

32,830,107

30,682,702

28,334,891

32,753,204

30,350,931

(19,989,605)

(19,149,808)

(18,084,638)

(16,993,522)

(22,694,380)

(21,251,819)

(306,462) 14,488,138 $ 133,252,504

(236,154) 13,444,145 $ 141,748,443

(30,512) 12,567,552 $ 172,493,432

(74,203) 11,267,166 $ 197,372,604

(11,541) 10,047,283 $ 206,443,132

(26,716) 9,072,396 $ 257,565,853

129

City of Belton, Texas Demographic and Economic Statistics Last Ten Years (Unaudited)

Fiscal Year

Population

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Personal Income

(1)

19,809 20,517 21,214 21,721 22,078 22,532 22,833 24,610 24,553 25,466

412,958,223 427,717,899 490,913,174 502,645,661 528,591,476 563,998,492 615,166,686 663,042,620 680,510,948 847,024,626

Per Capita (2) Income

Median (2) Age

20,847 20,847 23,141 23,141 23,942 25,031 26,942 26,942 27,716 33,261

29 29 29 36 28 28 28 28 27 26

School (3) Enrollment

Unemployment (4) Rate

10,305 10,488 10,828 11,077 11,488 11,681 12,195 12,621 13,327 13,597

5.8 4.7 4.8 4.1 4.2 3.7 7.0 5.1 4.3 4.5

Data Sources: City of Belton

(1) (2)

U.S. Census Bureau Belton Independent School District, Fall 2023 Demographic Report (4) Texas Labor Market Information, Local Area Unemployment Statistics as of September 2023 (Bell County). (3)

130

City of Belton, Texas Principal Employers Current Year and Nine Years Ago (Unaudited)

2023

Employer

Employees

Belton Independent School District Bell County University of Mary Hardin-Baylor HEB Grocery TruMH (a Clayton Homes Co) CGI United Parcel Service Wal-Mart Cedar Crest Hospital & Clinic PSC (Primoris Industrial & Civil) James Construction Group Belco Manufacturing

2,100 1,222 662 650 500 350 315 295 293 200 -

Total

6,587

Source: Belton Economic Development Corporation, Entities

131

2014

Rank

Employees

Rank

1 2 3 4 5 6 7 8 9 10 -

1,700 1,180 543 295 176 200 323 175 380 173

1 2 3 6 8 7 5 9 4 10

5,145

City of Belton, Texas Top Ten Water Customers Current Year and Nine Years Ago (Unaudited) 2014

2023

Customer UMHB Belton ISD Bell County Turtle Creek Village Tex Mix Partners Today's Car Wash Legacy Landing Riversprings At Barge Ranch D R Horton Bell County Expo Center Belle Oaks Apartments Montrose II Apartments H.E.B. Grocery Company Belton Housing Authority

Annual Sales

Customer Type Education Education Government Apartment Construction Retail Apartment Apartment Construction Event Center Apartment Apartment Retail Government

Totals

387,714 136,684 129,586 93,927 65,857 49,897 45,723 43,895 42,270 42,023 -

$ 1,037,576

Source: Finance Department, City of Belton, Texas

132

Rank 1 2 3 4 5 6 7 8 9 10

Percentage of Total Sales

Annual Sales

6.85 % 2.41 2.29 1.66 1.16 0.88 0.81 0.78 0.75 0.74 -

255,146 141,938 229,876 103,193 69,571 54,862 66,412 46,030 44,299 43,179

18.33 %

$ 1,054,506

Rank 1 3 2 4

7 6 8 9 10

Percentage of Total Sales 7.57 4.21 6.82 3.06 2.06 1.63 1.97 1.37 1.31 1.28 31.28%

City of Belton, Texas Full-Time Equivalent City Government Employees by Function Last Ten Years (Unaudited)

Function

2014

2015

2016

2017

Fiscal Year 2018 2019

2020

2021

2022

2023

General government Public safety: Police Fire Highways and streets Planning Culture and recreation Solid waste Maintenance Water and sewer Economic development Drainage

18.0

19.0

16.0

15.0

16.0

18.0

42.0 33.0 9.0 4.5 17.0 1.0 8.0 22.0 2.0 2.0

46.0 34.0 9.0 4.5 17.0 1.0 8.0 22.0 2.0 2.0

46.0 35.0 9.0 4.5 18.0 1.0 7.0 24.0 2.5 3.0

47.0 35.0 8.0 6.5 19.0 1.0 8.5 22.5 2.5 3.0

48.0 35.0 8.0 6.5 19.0 1.0 9.0 24.5 2.5 3.0

48.0 35.0 8.0 6.5 19.0 1.0 9.0 25.0 2.5 3.0

48.5 29.0 7.0 7.5 19.5 1.0 9.0 28.0 2.5 4.0

51.5 28.0 7.0 7.8 19.5 1.0 9.0 28.0 2.5 4.0

52.5 28.0 7.0 7.8 19.5 1.0 9.0 29.0 2.5 4.0

54.5 28.0 7.0 8.0 19.5 1.0 9.0 29.0 2.8 4.0

158.5

164.5

166.0

168.0

171.5

172.0

171.0

174.3

176.3

180.8

Total

Source: Finance Department, City of Belton, Texas

133

City of Belton, Texas Operating Indicators by Function Last Ten Years (Unaudited) Fiscal Year Function Police: Alarms responded to Calls for Service Code Inspections * Code Citations issued * Fire: Fires Inspections Investigations Highways and streets: Signs erected Planning: Permits issued Inspections Culture and recreation: Library circulation Maintenance: Work orders completed Water: New connections Water main breaks Avg. daily water consumption (millions of gallons) Sewer: Avg. daily sewage treatment (millions of gallons)

2014

2015

2016

2017

1,350 50,000 -

1,050 39,322 -

1,088 38,642 -

1,101 36,805 -

123 165 43

130 175 50

67 200 45

127 249 13

460

496

352

254

1,725 3,760

1,210 2,290

1,932 3,812

2,518 4,842

86,624

88,694

83,880

84,607

2,758

1,850

2,590

2,803

175 35 3.09

150 15 2.78

150 11 2.84

270 10 3.06

1.53

1.77

1.86

1.53

Sources: Various city departments. Note: Indicators are not all available for the general government, refuse collection, and economic development * Beginning in FY 2018, Code Enforcement began a new compliance-encouraged approach to addressing properties in violation. Therefore, the appropriate metrics have been adjusted and data prior to FY 2018 is not available.

134

Fiscal Year 2018

2019

2020

2021

2022

2023

925 36,658 1,831 3

1,100 35,800 2,012 10

1,150 33,400 2,950 8

950 33,600 3,925 8

1,128 35,452 3,184 73

1,149 33,929 3,146 138

81 235 21

99 228 35

100 175 27

126 350 24

136 310 10

104 268 44

275

400

393

440

318

333

2,541 4,837

2,489 4,982

2,801 5,711

1,390 4,158

1,315 8,662

912 5,031

90,076

87,023

58,122

53,356

85,912

97,514

2,658

1,469

2,425

1,213

1,225

1,025

335 18 3.09

385 15 2.69

422 18 3.0

358 16 3.3

453 31 3.8

309 12 3.7

1.27

1.73

1.78

1.66

1.54

1.71

135

City of Belton, Texas Capital Asset Statistics by Function Last Ten Years (Unaudited)

Function Public safety: Police: Stations Substations Patrol units Fire stations Highways and streets: Streets (miles) Culture and recreation: Parks acreage Playgrounds Irrigated ball fields Trails (miles) Water: Service connections Water mains (miles) Water pump stations Fire hydrants Plant capacity (millions of gallons) Sewer: Service connections Sanitary sewers (miles) Number of lift stations Treatment plant capacity (millions of gallons)

Fiscal Year 2015 2016

2014

2017

1 1 15 2

1 1 17 2

106

107

109

111

194 15 15 7

174 18 15 7

177 18 15 4

186 18 15 4.06

6,105 121 2 890 8.3

6,387 144 2 1016 8.3

6,324 144 2 1016 8.3

6,596 152 2 1098 8.3

4,782 134 17 2.5

4,750 135 17 2.5

4,843 100 17 2.5

5,068 112 17 2.5

Sources: Various city departments. Note: Capital asset indicators are not available for the general government, refuse collection, planning, maintenance, and economic development functions.

136

2018

Fiscal Year 2020 2021

2019

2022

2023

1 1 20 2

1 1 21 2

1 1 23 2

1 2 23 2

1 2 22 2

1 2 23 2

115

114

115

117

118.5

275 18 15 4

349 18 15 5.2

349 20 15 6.08

349 20 15 7.96

6,885 156 2 1138 8.3

7,729 160 2 1188 8.3

8,566 162 2 1208 8.3

8,591 168 2 1175 10

8,702 164 2 1183 10

8,763 166 2 1207 10

5,332 114 17 2.5

5,702 118 17 2.5

6,020 119 17 2.5

6,458 132 17 2.5

6,905 131 17 2.5

7,058 135 18 2.5

137

138