COUNTY OF VICTORIA, TEXAS

COMPREHENSIVE ANNUAL FINANCIAL REPORT
For tile year ended December 31, 2007
Prepared by: County Auditor's Ofice
Judy McAdams, CPA
Victoria County Auditor
COUNTY OF VICTORIA, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the year ended December 31, 2007
TABLE OF CONTENTS
INTRODUCTORY SECTION
County Auditor's Letter of Transmittal . . . . . .. .. .. . . . . . . . . .. . . . . . . . . . . . .
Certificate of Achievement for
Excellence in Financial Reporting.
Organizational Chart
Directory of Principal Officials . . . . . . . . . . . . . . . . . . . . . . . . . . »
FINANCIAL SECTION
Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management's Discussion and Analysis .
Basic Fi nancial Statements
Government-Wide Financial Statements
Statement of Net Assets . . . . . . . . . . . . . . . . . . . »
Statement of Activities . . . . . . . . . . . . . . . . . . .
Fund Financial Statements
v
vi
vii
1
3
1 3
1 5
Balance Sheet - Governmental Funds. . . . . . . æ . . æ . . ¤ . . . . . . . . . . . + . . + + . . . . . . . . . . . . . . . . . . . . . . . . 1 7
Reconciliation of Total Governmental Fund Balance to Net Assets of
Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds . » . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures,
and Changes i n Fund Balances to Statement of Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Statement of Net Assets - Proprietary Funds . » . . . . . . ¤ ¤ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Statement of Revenues, Expenses, and Changes i n Fund Net Assets -
Proprietary Funds . » . . » . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Statement of Cash Flows - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . 23
Statement of Fiduciary Net Assets - Fiduciary Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Statement of Changes i n Fiduciary Net Assets - Fiduciary Funds . . » . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Statement of Net Assets - Component Units . . . ¤ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Statement of Activities - Component Units . . » . . . . . . æ . . . . . . . . ¤ . . . . æ . . ¤ . . . æ . ¤ æ . . . » . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Notes to Financial Statements . . . . . . . . . .
Required Suplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual - General Fund » ¤ ¤ ¤ » æ æ » æ ¤ + æ æ + æ æ ¤ « æ ¤ + « « ¬ « 4 a » væ ¤ & » » ¤ ¤ » æ ¤ » ¤ æ ¤ « æ æ ¤ ¤ ¤ ¤ ¤ ¤ ¤ ¤ « ¤ » × » » æ » » æ » ¤ æ + æ ¤ ¤ × ¤ + ¤ « « 4 ¤ æ æ 4
Notes to Required Suppl ementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¤
Combining and Individual Fund Statements and Schedules
Govermental Funds
Combining Statements
Combining Balance Sheet - All Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . æ
30
71
72
73
FI NANCIAL SECTION· (Continued)
TABLE OF CONTENTS
(Continued)
Combining and Individual Fund Statements and Schedules · (Continued)
Governmental Funds - (Continued)
Combining Statements - (Continued)
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances - All Nonmajor Governmental Funds . . . ¤ + » » ¤ « » ¤ + » ¤ » » » ¤ « » ¤ « » » ¤ « » ¤ . » ¤ . » ¤ . » ¤ + + ¤
Nonmajor Special Revenue Funds . . . . . » æ . » æ . » ¤ +
Combi ni ng Balance Sheet - All Nonmajor Special Revenue Funds .
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balance - All Nonmajor Special Revenue Funds . . . . . . . . . . . . . . . . . »
Combining Balance Sheet - Nonmajor Road and Bridge Special Revenue Funds . . . . . . . .
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balance - Nonmajor Road and Bridge Special Revenue Funds
Combining Balance Sheet - Nonmajor Other Special Revenue Funds . . . . . »
Combining Statement of Revenues, Expenditures, and Changes
i n Fund Balance - Nonmajor Other Special Revenue Funds
Nonmajor Debt Service Funds . . . æ ¤ . . . ¤ . « ¤ . » . × ¬ ¬ . × ¬ * × » + × » + . » + ¤ « » ¤ + ¤ æ »
Combi ni ng Balance Sheet - Nonmajor Debt Service Funds
Combining Statement of Revenues, Expenditures, and Changes
i n Fund Balances· Nonmajor Debt Service Funds ¬ × ¬ + ¬ × » v ¤ » + » ¤ æ ¤ » ¤ ¤ « » ¤ + » » ¤ ¤ » ¤ + » ¤ » » × ¬ » × 4 ¬ 4 + » + 4 » + » » + ¤ ¤
Individual Statements and Schedules
General Fund
Schedule of Revenues, Expenditures, and Changes i n Fund
Balance - Budget (Non-GAAP Basis) and Actual . . . . . . . . . . . . . . . . . . . . . . . ¤
Nonmajor Special Revenue Funds
Road and Bridge Precinct No. 1
Schedule of Revenues, Expenditures, and Changes in Fund
74
75
79
80
81
83
85
91
97
98
99
1 00
Balance· Budget and Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 08
Road and Bridge Precinct No. 2
Schedule of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 09
Road and Bridge Precinct No. 3
Schedule of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 0
Road and Bridge Precinct NO . 4
Schedule of Revenues, Expenditures, and Changes in Fund
Bal ance - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1
FINANCIAL SECTION - (Continued)
TABLE OF CONTENTS
(Continued)
Combining and Individual Fund Statements and Schedules - (Continued)
Governmental Funds - (Continued)
Combining Statements - (Continued)
Nonmajor Debt Service Funds
Road Bonds Si nki ng Fund
Schedule of Revenues, Expenditures, and Changes i n Fund
Balance - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . × .
Jai l Bonds Si nki ng Fund
Schedule of Revenues, Expenditures, and Changes i n Fund
Balance - Budget and Actual . . . . . . . . . « « . « 4 4 » ¤ 4 « » « » 4 4 »
Courthouse Restoration Bonds Si nki ng Fund
Schedule of Revenues, Expenditures, and Changes i n Fund
Balance - Budget and Actual . . . . . 4 æ + æ æ æ 4 + æ + æ » + æ
Bridge Street Annex Si nki ng Fund
Schedule of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual . . . . . . . . . . . . .. . . . . . «. . « + «
Fiduciary Funds
Agency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 .
Combining Statement of Changes in Assets and
Liabil ities . . . . . . . . » . « 4 . ææ+ » 4 » » æ » 4 » 4 » . » » » » » » » 4 4 » . » 4 . » æ 4 » . æ » » æ .
STATISTICAL SECTION . . . .. . . .............. ... .
Financial Trends
Net Assets by Component . . . . . . . . . . . . . . . . » »
Changes i n Net Assets . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. . . . . . . «
Fund Balances, Governmental Funds . . . . . . .
Changes i n Fund Balances, Governmental Funds
Tax Revenues by Source, Governmental Funds . . . . . . . . . . . . . æ
Revenue Capacity
Assessed and Estimated Actual Value of Taxable Property - General and I &S . .
Assessed and Estimated Actual Value of Taxable Property - Road and Bridge . . . . .
Direct and Overlapping Property Tax Rates æ + » + » × 4 » + » 4 » æ æ » » » + » » 4 » » + æ 4 æ 4 4 « æ » 4 ¤ » 4 æ » ¤ 4 » » » + 4 4 « ¤ 4 « » « » « » 4 « «
Principal Property Taxpayers (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . » æ
Property Tax Levies and Collections - General and I &S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¤ 4
1 1 2
1 1 3
1 1 4
1 1 5
1 1 6
1 1 7
1 20
1 21
1 22
1 24
1 25
1 26
1 27
1 29
1 31
1 33
1 34
STATISTICAL SECTION - (Continued)
Revenue Capacity - (Continued)
TABLE OF CONTENTS
(Continued)
Property Tax Levies and Collections - Road and Bridge .
Sales Tax Revenue . .
Direct and Overlapping Sales Tax Rates
Debt Capacity
Ratios of Outstanding Debt by Type . . .
Ratios of Net General Bonded Debt Outstanding . . . . . . . . . «
Direct and Overlapping Governmental Activities Debt (Unaudited)
Legal Debt Margin I nformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . »
Demographic and Economic Information
Demographic and Economic Statistics (Unaudited) . . .
Principal Employers ( Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . »
Operating Information
Full-Time-Equivalent City Governmental Employees by Function/Program
Operating I ndicators by Function/Program . . . . . . . . . . . 4
Capital Asset Statistics by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . »
SINGLE AUDIT SECTION
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit Of Financial
Statements Performed i n Accordance With Goverment Auditing
Standards ¤ 4 4 » ¬ » w 4 » + » « 4 «¬¬æ 4 « × æ ¬ æ æ 4 ¤ 4 ¤ ¤ 4 » æ æ 4 æ 4 4 4 » + » « » æ + æ « 4 ææ¬æ¬ææ¬+ « × ææ × ¤ » « » æ » æ æ 4 » ¤ æ 4 æ æ 4 « 4 ¤ + 4 ¤ « 4 » æ 4 ¤ 4 » ¤ ¬ 4 « 4 æ » » » + æ 4 » « 4 æ « 4 4 « + » » « 4 » 4 4 « 4 « 4 » » « × × « + ¬ « » « + 4 æ
Report on Compliance With Requirements Applicable to Each Major
Program and Internal Control Over Compliance in Accordance With
OMB Circular A-133 ¤ 4 ¤ 4 » + 4 w 4 æ + »æ æ 4 æ « ׬æ4 » ¬æÞ æ+ 4 æ» ææ 4 æ 4 4 « ¤ æ « 4 . ¬ » w 4 » » ¤ 4 ¤ « ¤ « ¬ 4 » « » æ ¤ 4 ¤ 4 ¤ » + » ¤ » » æ » æ + » » + 4 « + æ
Schedule of Expenditures of Federal and State Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Notes to Schedule of Expenditures of Federal and State Awards . . . . . «
Schedule of Findings and Questioned Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¤
Schedule of Prior Audit Findings . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . »
1 36
1 38
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1 58
1 59
1 60
INTRODUCTORY SECTION
JULY MCPLPMU, ÛlP
COUNTY AUDITOR
VICTORIA COUNTY, TEXAS
115 N. Bridge, Room 122
Victoria, Texas 77901
Honorable District Judges
Honorable County Judge
Honorable County Commissioners
County of Victoria
Victoria, Texas
June 25, 2008
Tel: (361)575-8451
Fax: (361)573-0636
The County Auditor's Office i s pleased to present the Comprehensive Annual Financial Report (CAFR) of
the County of Victoria, Texas (the "County"), for the year ended December 31, 2007. Responsibility for
both the accuracy of the presented data and the completeness and fairness of the presentation, including
al l disclosures, rests with the County. We believe the data, as presented, i s accurate i n al l material
aspects, that i t i s presented in a manner designed to fairly set forth the financial position and results of
operations of the County as measured by the financial activity of its various funds, and that all disclosures
necessary to enable the reader to gain the maximur understanding of the County's financial affairs have
been included.
The CAFR uses the financial reporting model promulgated by the Government Accounting Standards
Board (GASB) Staterent Number 34, Basic Financial Statements - And Management's Discussion and
Analysis - For State and Local Goverments (GASB No. 34).
The County's CAFR was prepared i n conformity with generally accepted accounting principles (GAAP)
and audited i n accordance with generally accepted auditing standards by a firm of licensed certified public
accountants, and is in compliance with V. T. CA, Local Government Code Section 114. 025. GAAP
requires that management provide a narrative, introduction, overview, and analysis to accompany the
basic financial statements i n the form of management's discussion and analysis (MD&A). This letter of
transmittal is designed to complement and should be read in conjunction with the MD&A. The County's
MD&A can be found i mmediately following the independent auditors' report.
The County's financial statements of the governmental activities, the business-type activities, the
aggregate di scretely presented component units, each major fund, and the aggregate remaining fund
information have been audited by Harrison, Waldrop and Uherek, L. L. P. , a firm of licensed certified public
accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the County, for the year ended December 31, 2007, are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion
that the County's financial statements for the year ended December 31 , 2007, are fairly presented in
conformity with GAAP. The independent auditors' report i s presented as the first component of the
financial section of this report.
Honorable District Judges
Honorable County Judge
Honorable County Commissioners
County of Victoria
June 25, 2008
The independent audit of the financial statements of the County was part of a broader, federally mandated
"Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair presentation of the
financial statements, but also on the audited government's internal controls and compliance with legal
reqUirements, with special emphasi s on internal controls and legal requirements involving the
administration of federal awards.
PROFILE OF VICTORIA COUNTY
The County i s located i n southeastern Texas on the Coastal pl ai n about midway between the southern
and eastern extremities of the Texas Gulf Coast. The County was created in 1 836 from a Mexican
municipality named for Mexican President Guadalupe Victoria. The County encompasses an area of 892
square mi l es and serves a population of 85, 648.
The County is a public corporation and political subdivision of the State of Texas. The general governing
body of the County i s the elected five-member Commissioners' Court in accordance with Article 5,
Paragraph 18 of the Texas Constitution. Commissioners serve four-year staggered terms, two members
elected every two years. The County Judge is elected at large to serve a four-year term.
The Commissioners' Cour sets the tax rates, establishes policies for County operations, approves
contracts for the County, and develops and adopts the County budget. The Commissioners' Court is also
responsible for development of policies and orders, approving financial commitments, and appointment of
various department heads. The management and leadership provided by members of the
Commissioners' Court and the elected and appointed officials of other key County offices i s crucial to the
success of the County i n financial management and growth.
The County Auditor has responsibilities for prescribing the systems and procedures for handl i ng the
finances of tile County and "examining, auditing, and approving" all disbursements from County funds
prior to their submission to the Commissioners' Court for approval.
The County provides a full range of services. The County provides many services not ordinarily provided
by any other entity of government and provides additional services in cooperation with other local
govermental units. A primary service is the administration of justice, which includes the civil and criminal
county and district courts, justices of the peace, constables, district attorney, investigators, clerks of the
courts, sheriff, jail, security, and emergency management and grand jury bailiffs. Other functions
performed by the County include the construction and maintenance of roads and bridges, either
independently or in cooperation with other entities; administration of public health services; assistance to
indigents; and the provision of juvenile, health, education, and welfare services involving the care and
correction of dependent or del i nquent chi l dren as wel l as property tax collections for mul ti pl e agencies.
The annual budget serves as the foundation for the County's financial planning and control. Budget
hearings are posted annual l y i n July and August by the County Judge, with the final budget approved by
the Commi ssioners' Court following the hearings. The final budget includes contingency line items. Most
appropriated budgets are prepared by fund, department, and category. The level of budgetary control (the
level at whi ch expenditures cannot legally exceed the appropriated amount) i s established at the line-item
level within an individual fund. The original budget may be amended by Commissioners' Court under
conditions prescribed by Texas Local Government Code, Section 11 1 .010. Budget-to-actual comparisons
are provided i n this report for each governmental fund for which an appropriated budget has been
adopted.
i i
Honorable District Judges
Honorable County Judge
Honorable County Commissioners
County of Victoria
June 25, 2008
In developing and evaluating the County's accounting system, consideration is given to the adequacy of
internal accounting controls. Internal accounting controls are designed to provide reasonable, but not
absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or
disposition, and the reliability of financial records for preparing financial statements. The concept of
reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be
derived, and the evaluation of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the County's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper recording
of financial transactions.
Various potential component units were evaluated to determine whether they should be included i n the
County's reporting entity because of the significance of their operational and financial relationsllip with the
County. Based upon standards established by the Governmental Accounting Standards Board (see
Note 1 to the financial statements), three component units have been included in this year's report: tile
Victoria County Navigation District, the Victoria County Child Welfare Board, and Citizens Medical Center.
These entities are discretely presented and are not considered part of the prirar government of the
County. This reporting method was used because, while the entities are financially accountable to the
County, they do not have substantively the same governing body as the County nor do they provide
services exclusively to the County.
FACTORS AFFECTING FI NANCIAL CONDITION
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 County of Victoria operates.
Local Economy The County is one of the leading regional economies in the seven-county Golden
Crescent region. The County has developed into a primary business center with growth in services and
retail employment. The County's principal economic activities include petrochemical and industrial
chemical plants, plastics manufacturers, heavy steel fabrication, pre-stressed concrete, oil and gas
exploration, medical services, professional and financial services, retail trade, and hi gher education.
Although the oil and gas petrochemical industries remain a vital component of the area employment base,
diversification within these i ndustries into production of ancillary goods and plastics has reduced economic
vulnerability to energy price fluctuations.
The County records reflect modest debt levels, rapid principal amortization, and acceptable reserve levels
that have benefited from sound fiscal management practices. The County practices conservative
budgeting and sets general fund reserve targets at 8% to 1 0% of annual expenditures. I n the past fiscal
year the County incurred a si gnificant increase i n the general fund unreserved fund balance as a result of
additional revenues and reducing general fund expenditures. The County's General Fund reserve target
is based on the County's policy of deferring ad valorem property taxes. The resulting unreserved fund
balance does not include $3. 0 million i n ad valorem taxes collected i n October, November, and December
of 2007, and are instead reported as deferred revenues.
Long-Term Financial Planning The County of Victoria has identified several long-term issues that need
to be prioritized and funded by the Commissioners' Court. These priorities include upgrading software for
all courts and the Sheriff, adding an additional courtroom for the increasing caseload of jury trials, and
resolving inadequate parking around the Courthouse complex. The County Airport has identified many
aging bui ldi ngs that also need to be demolished. The Airport Traffic Control Tower i s in the process of
being refurbished and pl ans are to bring it into service i n 2008, which has gained the County Airport the
award of a Government fueling contract.
iii
Honorable District Judges
Honorable County Judge
Honorabl e County Commissioners
County of Victoria
'
June 25, 2008
Cash Management - The Commissioners' Court has adopted a formal investment policy for the County
consistent
w
ith State statutes governing the investment of County funds and has designated the County
Treasurer as the County's investment·officer. The policy is updated annual l y. The general objectives set
forth in the policy provide for financial security and optimum liquidity of County funds while achieving the
maximum yield on funds invested and maxirum levels of invested funds. Authorized investments are
consistent with those investments authorized by State law for Texas counties. Generally, tile County has
limited i ts investments to vari ous U. S. Government obligations and mortgage-backed instruments.
Risk Management - The County has risk exposure i n various areas including general liability, worker's
compensation, automobile liability, and property damage. To reduce its risk exposure i n these areas, the
County purchases commercial insurance policies from a private carrier. The related policies carry various
deductibles and aggregate maximum loss totals.
The County i s also exposed to risk of loss i n the area of employee health coverage. I n this area, the
County bears al l risk of loss up to $85, 000 per participant per year. Co-insurance through a private
insurance carrier assumes all risk for individual participants past that level. Please refer to the notes to
the financial statements for a complete discussion of the County's employee health insurance operations.
Pension And Other Post Employment Benefits The County provides retirement, di sabi l ity and deatll
benefits for all of its full-time employees through a nontraditional defined benefit pension plan in the
statewide Texas County and District Retirement System (TCDRS). Specific plan provisions are adopted
by the County wi thi n the options available in the state statutes governing the TCDRS. Benefit amounts
are determined by the sum of the employee's contributions to the pl an, with interest and employer­
financed monetary credits. The level of these monetary credits is adopted within the constraints imposed
by the TCDRS Act so that the resulting benefits can be expected to be adequately financed.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achieverent for
Excellence i n Fi nanci al Reporting to Victoria County, Texas for its comprehensive annual financial report
(CAFR) for the fiscal year ended December 31 , 2006. This was the fourteenth consecutive year that the
government has received this prestigious award. I n order to be awarded a Certificate of Achievement, the
government published an easily readable and efficiently organized CAFR. Thi s report satisfied both
GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report 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.
The preparation of the CAFR could not have been accomplished without the efficient and dedicated efforts
of the staff of the County Auditor's Office. We express our appreciation to al l the members of the office
who assisted in and contributed to its preparation. We would also like to thank the accounting firm of
Harrison, Waldrop & Uherek, L. L. P. for sharing their knowledge, and extending their cooperation and
support to the County Auditor's Office. Appreciation must also be expressed to the County Judge,
members of the Commissioners' Court, the County Treasurer, and al l other officials of the County for their
assistance i n pl anni ng and conducting the financial operations of the County i n a progressive and
responsible manner.
Respectfully submitted,
qc 0LOC
Judy McAdams, CPA
Victoria County Auditor
iv
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
County of Victoria
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31,2006
A CCltificate of Achievement for Excellence in Financial
Reporting is presented by the Goverment Finance Offcers
Association of the United States and Canada to
goverment units and public employee retirement
systems whose comprehensive annual financial
rcports (CArRs) achieve the highest
standards in government accounting
and financial reporting.
/

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President
Executive Director
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COUNTY OF VICTORIA, TEXAS
DIRECTORY OF PRINCIPAL OFFICIALS
December 31, 2007
Donald R. Pozzi
Chris Rivera
Kevin Janak
NAME
Gary Burns
Wayne D. Dierlam
Stephen Tyler
Val D. Huvar
Cathy Stuart
Sean Kennedy
Rena Scherer
T. Michael O'Connor
Laura A. Weiser
Juan Velasquez, III
Joseph P. Kelly
K. Stephen Williams, III
Juergen "Skipper" Koetter, Jr.
Robert C. Cheshire
Annie Ramos
Stuart Posey
Robert Whitaker
Henry Welfel
Javier O. Duran
James E. Calaway
Kenneth Easley, Jr.
John G. Miller
NAME
Judy McAdams, CPA
Warren Kyle Young
ELECTED OFFICIALS
POSITION
County Judge
Commissioner, Precinct # 1
Commissioner, Precinct # 2
Commissioner, Precinct # 3
Commissioner, Precinct # 4
Criminal District Attorney
County Clerk
District Clerk
County Treasurer
County Tax Assessor-Collector
County Sheriff
Judge, County Court-at-Law # 1
Judge, County Court-at-Law # 2
Judge, 24th Judicial District
Judge, 135th Judicial District
Judge, 267th Judicial District
Judge, 377th Judicial District
Justice of the Peace # 1
Justice of the Peace # 2
Justice of the Peace # 3
Justice of the Peace # 4
Constable, Precinct # 1
Constable, Precinct # 2
Constable, Precinct # 3
Constable, Precinct # 4
APPOINTED OFFICIALS
vii
POSITION
County Auditor
County Fire Marshal
FINANCIAL SECTION
HARRISON, WALDROP & UHEREK, L.L.P.
HWU
CERTIFIED PUBLIC ACCOUNTANTS
101 S. MAIN. SUITE 40
VICTORIA, TEXAS 77901-8142
INDEPENDENT AUDITORS' REPORT
The Honorable County Judge and Members
of the Commissioners' Court
County of Victoria, Texas
STEPHEN W. VAN MANEN. CPA
HAMILTON H. REDMON. CPA
DENNIS C. CIHAL. CPA
ERiC L KUCERA, CPA
CLAYTON r'. VAN PEll. CPA
ROBERl W. SCIiAP.R. CPA
MELISSA M.TERRY. CPA
VOICE: 1361) 573-3255
FAX: 1361) 573-9531
We have audited the accompanying financial statements of the governmental activities, the busi ness-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remai ni ng fund information of County of Victoria, Texas (the "County") as of and for the year ended
December 31 , 2007, which collectively comprise the County's basic financial statements as listed i n the
table of contents. These financial statements are the responsibility of the County's management. Our
responsibility is to express an opinion on these financial statements based on oLlr audit. We did not audit
the financial statements of the Citizens Medical Center, which statements reflect total assets of
$203, 384,005 as of June 30, 2007, and total revenues of $137, 463, 691 for the year then ended. We also
did not audit the financial statements of the Victoria County Child Welfare Board, which statements reflect
total assets of $1 33,446 as of December 31 , 2007, and total revenues of $67, 1 41 for the year then ended.
Those statements were audited by other auditors whose reports have been furnished to us, and our
opinions on the financial statements, insofar as it relates to the amounts included for the Citizens Medical
Center and the Victoria County Child Welfare Board i n the component units' col umn, is based solely on
the reports of the other auditors.
We conducted our audit in accordance with auditing standards and standards generally accepted in the
United States of America applicable to financial audits contained i n Goverment Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audi t to obtain reasonable assurance about whether the basic financial statements are free of
material misstatement. The financial statements of the Citizens Medical Center and the Victoria County
Child Welfare Board were not audited in accordance with Goverment Auditing Standards. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures i n the financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that
our audit and the reports of other auditors provide a reasonable basis for our opinions.
I n our opinion, based on our audit and the reports of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of the County as of December 31 , 2007, and the
respective changes i n financial position and cash flows, where applicable, thereof for the year then ended
in conformity with accounting principles generally accepted in the United States of America.
The management's discussion and analysis and budgetary comparison information on pages 3 through 1 2
and 71 through 72, are not a required part of the basic financial statements but are supplementary
information required by accounting principles generally accepted i n the United States of America. We
have applied certain limited procedures, which consisted principally of inquiries of management regarding
the methods of measurement and presentation of the required supplementary information. However, we
did not audit the information and express no opinion on it.
MEMBERS OF
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
The Honorable County Judge and Members
of the Commi ssioners' Court
County of Victoria, Texas
In accordance with Goverment Auditing Standards, we have also issued our report dated June 1 7, 2008,
on our consideration of the County's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read i n conjunction with this report in
considering the results of our audit.
Our audit was performed for the purpose of forming opinions on the financial statements that collectively
comprise the County's basic financial statements. The introductory section, combining and individual
major and nonmajor fund financial statements and schedules, statistical data, and schedule of
expenditures of federal and state awards (as required by the U. S. Office of Management and Budget
Circular A-133, Auditing of States, Local Goverments, and Non-Profit Organizations and the State of
Texas Single Audit Circular) are presented for purposes of additional analysis and are not a required part
of the basic financial statements. The combining and individual major and nonmajor fund financial
statements and schedules and the schedule of expenditures of federal and state awards have been
subjected to the auditing procedures applied in the audit of the basic financial statements and, in our
opinion, are fairly stated i n all material respects i n relation to the basic financial statements taken as a
whole. The introductory section and statistical data have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.
�, u�-tLl
June 1 7, 2008
2
COUNTY OF VICTORIA, TEXAS
MANAGEMENT'S DISCUSSION AND ANAL YSIS
December 31, 2007
The discussion and analysis of the County of Victoria's (the " County") financial performance provides an overview
of the County's financial activities for the year ended December 31 , 2007. The discussion and anal ysis should be
read in conjunction with the accompanying transmittal letter, the basic financial statements and the accompanying
notes to those financial statements. The discussion and analysis includes comparative data for the prior year.
FI NANCIAL HI GHLIGHTS

The assets of the County exceeded its liabilities at the close of the year ended December 31, 2007 by
$41 , 745, 995. Of this amount $17,058,646 i s available to meet the County's ongoi ng obligations to
citizens and creditors.

At December 31, 2007, the County's governmental funds reported combined endi ng fund balances of
$1 5, 614, 544. The amount available for governmental discretion (unreserved fund balance) is
$1 5, 260, 672.

At December 31 , 2007, unreserved fund balance for the General Fund was $12, 267, 877 or 45. 60% of
total General Fund expenditures.

The County's general obligation debt netted a decrease of $1, 300,000. The key factor i n this decrease
was debt payments made during 2007.
OVERVIEW OF THE FINANCIAL STATEMENTS
The new financial reporting model instituted by Governmental Accounting Standards Board Statement 34 seeks
to i mprove operational accountability by highlighting an overall picture that was lost in the detail of fund
accounti ng. Instead of focusing on aggregations of similar individual funds, GASB 34 introduced government­
wide financial statements, which present the government as a si ngl e unified entity.
This discussion and analysis is intended to serve as an introduction to the County's basic financial statements.
The County's basic financial statements are comprised of four components: 1 ) government-wide financial
statements, 2) fund financial statements, 3) component unit financial statements, and 4) notes to financial
statements. This report also contains other required supplementary information i n addition to the basic financial
statements.
Organization and Flow of Financial Section Information
Independent Auditors' Report
Provides the opinion of the Independent Auditors on the fair
presentation of the basic financial statements.
Management's Discussion and Analysis
This supplementary information is required for state and local goverment
financial statements and is intended to provide a narrative introduction
and analysis.
Pages 3 to 12
Government·wide Financial Fund Financial Statements Component Unit Financial
Statements Provides information on the
Statements
Provides information on financial position of specifc funds
Provides information on the
governmental and business�type of the primary governments.
County's component units
activities of the primary
goverment.
Pages 13 to 16 Pages 17 to 26 Pages 27 to 29
c:
Notes to Financial Statements
Provides a summary of significant accounting policies and related disclosures.
Pages 30 to 70
3
OVERVIEW OF THE FINANCIAL STATEMENTS - (Continued)
Government-wide Financial Statements. The goverment-wide financial statements. which consist of the
following two statements, are designed to provide readers with a broad overview of the County's finances, i n a
manner si mi l ar to a private-sector business.
The statement of net assets presents information on all of the County's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the County is i mproving or deteriorating.
The statement of activities presents information showing how the government's net assets changed during 2007.
All changes i n net assets are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash fows. Thus, revenues and expenses are reported i n this statement 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 these financial statements distinguish functions of the County 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 cost through user fees and charges (business-type activities). The governmental
activities of the County include general government, public safety, hi ghways and streets, culture and recreation,
and publi c health. The busi ness-type activities of the County include the airport, Navarro project, and other
(commissary).
The government-wide financial statements include not only the County itself (known as the primary goverment)
but also the component units of Victoria County Navigation District, Victoria County Chil d Welfare Board, and
Citizens Medical Center. These component units are not included as part of the primary government.
The government-wide financial statements can be found on pages 1 3- 1 6 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 County, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds.
Govermental funds. Governmental funds are used to account for essentially the same functions reported as
govermental activities i n the government-wide financial statements. However, unl i ke the government-wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as a balance of spendable resources available at the end of the fiscal year. Such
information may be useful i n evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with si mi l ar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term fi nanci ng decisions. Both the governmental fund balance
sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between govermental funds and govermental activities.
The County mai ntai ns several individual governmental funds. Information is presented separately in the
governmental funds balance sheet and i n the governmental funds statement of revenues, expenditures, and
changes i n fund balances for the General Fund, which is considered a major fund. 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 i n the form of combining and individual statements and schedules
following the required supplementary information.
4
OVERVIEW OF THE FINANCIAL STATEMENTS (Continued)
The County adopts an annual appropriated budget for its General Fund, road and bridge special revenue funds
and debt service funds. A budgetary comparison schedule has been provided for the General Fund to
demonstrate compliance with this budget and is located on pages 1 00-1 07 of this report. Budget comparisons
are presented for the road and bridge special revenue funds and the debt service funds on pages 1 08-115 of this
report.
The basic governmental fund financial statements can be found on pages 17-20 of this report.
Proprietary funds. The County maintains two different 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
County uses enterprise funds to account for its airport, Navarro project, and other enterprise activities
(commissary). Interal service funds are an accounting device used to accumulate and allocate cost internally
among the County's various functions. The County uses an internal service fund to account for its employee
health insurance services. Because this service predominantly benefits governmental rather than business-type
functions, it has been included within govermental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only i n more
detail. The proprietary fund financial statements provide separate information for the airport and for the Navarro
project, both of which are considered to be major funds of the County, and other (commissary).
The basic proprietary fund financial statements can be found on pages 21 -24 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statement because the resources
of those funds are not available to support the County's own programs. The accounting used for fiduciary funds is
si mi l ar to proprietary funds.
The basic fiduciary fund financial statements can be found on pages 25-26 of this report.
Notes to financial statements. The notes provide additional information that is essential to a full understanding
of the data provided i n the government-wide and fund financial statements. The notes to financial statements can
be found on pages 30-70 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this reporl also
presents certain required supplementary information concerning the County's General Fund's budgetary
comparison schedule. Required supplementary information can be found on pages 71 -72 of thi s report.
The combini ng statements referred to earlier i n connection with nonmajor governmental funds and nonmajor
enterprise funds is presented i mmediately following the required supplementary information. Combining and
individual fund statements and schedules can be found on pages 73-1 1 9 of this report.
5
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful i ndicator of a government's financial position. I n the
case of the County, assels exceeded liabilities by $41 ,745,995 at the close of the year ended
December 31 , 2007.
Count� of Victoria, Texas
Net Assets
Governmental Business-type
Activities Activities Total
2007 2006 2007 2006 2007 2006
Current and other assets $ 37,656,760 $ 34,996,235 $ 666,219 $ 752,949 $ 38
.
322,979 $ 35,749,184
Capital assets (net)
24,622,711 24,812,723 10,963,870 10,666,904 35,586,581 35,479,627
Total Assets 62,279,471 59,808,958 11,630,089 11,419,853. 73,909,560 71,228,811
Current and other liabilities 21,705,396 19,838,013 665,897 910,780 22,371,293 20,748,793
Noncurrent liabilities 8,766,819 10,599,019 1,025,453 1,095,741 9,792,272 11,694,760
Total Liabilities
30,472,215 30,437,032 1,691,350 2,006,521 32,163,565 32,443,553
Net Assets:
Investment i n capital assets,
net of related debt 14,451,437 13,124,045 9,881,812 9,510,156 24,333,249 22,634,201
Restricted 354,100 436,788 354,100 436,788
Unrestricted 17,001,719 15,811,093 56,927 (96,824) 17,058,646 15,714,269
Total Net Assets $ 31,807,251.
L
?
9,37
.:,
926 £�93B,739 $ 9,413,332 $ 41,745,995 $ 38,785,2§!
.
The largest portion of the County's net assets (58.29%) reflects its investment in capital assets (e. g. , l and,
bui l di ngs, i mprovements, machinery and equipment), l ess any related debt used to acqui re those assets that is
still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the County's investment i n its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
The County has restricted net assets of $354, 100, which represent resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets ($17,058,646) may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current year, the County is able to report positive balances i n all three categories of net assets,
both for the government as a whole, as well as for its separate governmental and business-type activities.
6
GOVERNMENT -WIDE FINANCIAL ANALYSIS - (Continued)
REVENUES
Program revenues:
Charges for services $
Operating grants & contributions
Capital grants & contributions
General revenues:
Property taxes
Other taxes
Other
Total Revenues
EXPENSES
General governmental
Public safety
Highways and streets
Culture and recreation
Public health
Interest on long-term debt
Airpor
Navarro project
Commissar
Total Expenses
Change in net assets before transfers
Transfers
Change in net assets
Net assets - January 1 , 2007,
as restated
Net assets - December 31, 2007 $
Count) of Victoria, Texas
Changes i n Net Assets
Governmental
Activities
2007 2006
9,846,857 $ 10,977,848 $
3,868,765 3,410,606
61,764 7,584
16,774,618 15,637,488
7,600,233 7,370,552
1,954.715 1,711,384
40,106,952 39,115,462
15,640,516 14,575,456
11 ,518,191 10,942,218
3,804,550 4,244,523
1,504,003 1,340,356
4,157,317 3,860,870
398,919 390,875
37,023,496 35,354,298
3,083,456 3,761,164
(648,12E (130,000)
2,435,330 3,631,164
29,371,926 25,740,762
31,807,256 L�371,92( $
7
Business-type
Activities Total
2007 2006 2007 2006
2,323,208 $ 2,266,883 $ 12,170,065 $ 13,244,731
7,494 80,000 3,876,259 3,490,606
1,080,710 1,483,028 1,142,474 1,490,612
16,774,618 15,637,488
7,600,233 7,370,552
21,575 26,463 1,976,290 1,737,847
3,432,987 3,856,374 43,539,939 42,971,836
1 5,640,516 14,575,456
11,518,191 10,942,218
3,804,550 4,244,523
1,504,003 1,340,356
4,157,317 3,860,870
398,919 390,875
2,874,801 2,603,568 2,874,801 2,603,568
576,777 512,537 576,777 512,537
104,128 103,240 104,128 103,240
3,555,706 3,219,345 40,579,202 38,573,643
(122,719) 637,029 2,960,737 4,398,193
648,126 130,000
525,407 767,029 2,960,737 4,398,193
9,413,332 8,646,303 38,785,258 34,387,065
9,938,739 $ 9,413,332
,
$ 41. 745,995 $ 38,785,258
GOVERNMENT-WIDE FINANCIAL ANALYSIS - (Continued)
Governmental activities. Governmental activities increased the County's net assets by $2,435,330, thereby
accounting for 82.25% of the total growth in the net assets of the County. Key elements of this increase are as
follows:

Sales tax increased 3. 05% or $218, 314 from the prior year. This increase was due to an increase in the
revenue base.

Property taxes increased 7. 27% or $1 , 1 37, 1 30 in comparison with 2006. This increase was attributable
to the increase i n taxable assessed valuations of the County on the 2006 tax roll.

Depreciation expense for 2007 was $1 94, 737 or 1 0.92% greater than the depreciation expense for 2006,
as restated. This was due to the purchase of capital assets for governmental activities in 2007.

Transfers out to the Airport Fund increased $51 8, 1 26 from the prior year. This increase was due to a
decrease i n gas royalty income and an increase in Airport operating expenses.
Expenses and Program Revenues - Govermental Activities
18, 000,000
16, 000,000
14,000,000
1 2,000,000
10, 000,000
8,000,000
6,000,000
4,000,000
2,000,000
,��
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General Fblic safely Highways Culture and Pblic health Iterest on
governmnt
Revenues by Source - Govermental Activities
B
Proprly ta
41/0
and streets recreation

.. ..
. .. ..
o"
5%
Chrges for services
25%
long-term
debt
Oratin grants an
contributions
n
8
�tal g,an!s an
contribtions
<1
GOVERNMENT-WIDE FINANCIAL ANALYSIS - (Continued)
Busi ness-type activities. Business-type activities increased the County's net assets by $525,407, thereby
accounting for 1 7. 75% of the total growth i n the net assets of the County. Key elements of this increase are as
follows:

Capital grants in the Airport Fund were $1 ,080, 710, which was a decrease of $402, 318 or 27. 1 3%

Transfers in from the General Fund increased $51 8, 1 26 from the prior year. This increase was due to a
decrease in gas royalty income and an increase i n operating expenses.
Expenses and Program Revenues - Business-type Activities
3,500,000
3,000,000
2,500,000
2, 000,000
1 ,500,000
1,000,000
500,000
Airport
Revenues by Source - Business-type Activities
Operating grants
and contributions
<1%
: c: Expenses II Program revenues
Navarro Foject
Capital grants and
contributions
31%
Charges for
serices
68%
9
Clssary
Commissar
1%
l
I
!
i
J
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental funds. The focus of the County's governmental funds is to provide i nformation on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County's
financing requirements. I n particular, unreserved fund balance may serve as a useful measure of a government's
net resources available for spending at the end of the fiscal year.
As of the end of the current year, the County's governmental funds reported combined ending fund balances of
$1 5, 614, 544, an i ncrease of $1 , 245,792 in comparison with the prior year. Of the total fund balance, $1 5,378, 21 7
constitutes unreserved fund balance and is available for spending at t he County's discretion. The remainder of
fund balance is reserved to indicate that it is not available for new spending because it has already been
committed for a variety of other purposes ($236,327).
General Fund. The General Fund is the chief operating fund of the County. At the end of the current year,
unreserved fund balance of the General Fund was $1 2, 267, 877, while total fund balance reached $1 2, 504,204.
As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total
fund balance to total fund expenditures. Unreserved fund balance represents 45. 60% of total General Fund
expenditures, while total fund balance represents 46.48% of that same amount.
The fund balance of the County's General Fund increased by $565,313 during the current year. This increase is
due to certain revenues coming in higher than expected and expenditures coming in lower than expected.
Proprietary Funds. The County's proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
Unrestricted net assets of proprietary funds at the end of the year amounted to:
2007 2006
Unrestricted Unrestricted
Fund Net Assets Net Assets
Airport $ 46,633 $ 1 1 ,028
Navarro Project (43,486) (1 69, 215)
Commissary 53,780 61 , 363
Total $ 56, 927 $ (96,824 )
Other factors concerning the finances of these funds have been addressed in the discussion of the County's
business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget were relatively minor, resulting in an
increase of $2,756,879 and can be briefly summarized as follows:

$1, 5 1 1 , 922 in miscellaneous increases in general governmental activities, due to increases i n utility costs,
additional capital outlay projects and increases in personnel.

$505,658 in miscellaneous increases in public safety activities, due to vehicle purchases and jail repairs
and maintenance

$1 , 31 7 in miscellaneous increases in culture and recreation activities, due to relocation of the office.

$642,392 in miscellaneous increases in public health activities, capital outlay, and transfers out, due to
increases in operating expenses and capital asset purchases.
1 0
GENERAL FUND BUDGETARY HIGHLIGHTS - (Continued)
Of thi s increase, $880,509 was to be funded out of miscellaneous increases i n i ntergovernmental revenues, fines
and forfeitures revenues and other miscellaneous revenues. The remai ni ng $1 ,876,370 was to be funded from an
excess of revenues in the original budget.
For 2007, the General Fund' s actual expenditures came i n $2,329, 284 lower than the final budget. This positive
variance is mainly due to:
• $1 , 024,036 in non-departmental expenditures of which $892,000 was budgeted for the removal of old
Airport buildings and a majority of the work did not begin until 2008.

Payroll and other various expenditure accounts came in under budget for 2007.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets. The County's investment i n capital assets for its governmental and business-type activities as of
December 31 , 2007, amounts to $35,586, 581 (net of accumulated depreciation). This investment in capital
assets includes l and, buildings, i mprovements, and machi nery and equi pment. The total increase i n the County's
investment in capital assets for the current year was 0. 30% (a 0. 77% decrease for governmental activities and a
2. 78% increase for business-type activities). This increase was due to ongoing improvements to the airport.
County of Victoria, Texas
CaQital Assets
(Net of Depreciation)
Governmental Business-type
Activities Activities Total
2007 2006 2007 2006 2007 2006
Land $ 1,392,758 $ 1,376,758 $ 149,433 $ 149,433 $ 1,542,191 $ 1,526,191
Construction in progress 463,717 1,055,042 1,055,042 463,717
Buildings 1 1,664,147 11,933,673 889,968 1,000,550 12,554,115 12,934,223
I mprovements 6,399,985 6,339,214 8,728,052 9,361,139 15,128,037 15,700,353
Machinery and equipment 4,144,696 3,901,720 141,375 155,782 4,286,071 4,057,502
Infrastructure 1,021,125 797,641 1 ,021,125 797,641
Total $ 24,622,711
� ..
24,812,723 $ 10,963,870
L
�0,6.6,904 $ 35,586,581 $ 35,479,627
Additional information on the County's capital assets can be found in Note 6 of this report.
1 1
CAPITAL ASSETS AND DEBT ADMINISTRATION - (Continued)
Long-term debt. At the end of the current year, the County had total bonded debt outstanding of $8,850,000. Of
this amount, $7,765,000 comprises debt backed by the full faith and credit of the government and $1 , 085,000
secured solely by specific revenue sources (I . e. , revenue bonds).
Certificates of obligation
General obligation bonds
Revenue bonds
Bond discount
Total
$
$
Count� of Victoria, Texas
General Obligation and Revenue Bonds
Governmental Busi ness-type
Activities Activities
2007 2006 2007 2006
3,720,000 $ 4,060,000 $ $
4,045,000 5,005,000
1,085,000 1, 160,000
(2,942) (3,252)
7,765,000 !�Q�", OOO L .. 1,082,058 $ 1,156,748
Total
2007 2006
$ 3,720,000 $ 4,060,000
4,045,000 5,005,000
1,085,000 1,160,000
(2,942) (3,252)
$ 8,847,058 i.JO,221,748
The County's total debt decreased by $1 , 375,000 ( 1 3.45%) during the current year, this was due to debt
repayment.
The County maintains an "A+" rating from Standard & Poor's and an "A-" rating from Fitch for general obligation
debt.
Additional information on the County's long-term debt can be found i n Note 1 3.
Economic Factors and Next Year's Budgets and Rates
The annual budget is developed to provide efficient, effective and controlled use of the County's resources, as
well as a means to accomplish the highest priority objectives. Through the budget, the Commissioners' Court sets
the direction of the County, allocates its resources and establishes its priorities.
The final 2008 budget was adopted by Commissioners' Court on September 1 7, 2007. The budget included cost
of living salary increases of 4%, 5 new positions and the cost to demolish several old buildings located at the
County Airport. The property tax rate was set at $0.3986 (39.86 cents) per $1 00 assessed taxable valuation,
which reflects no change from the 2007 tax rate. However, the 2008 tax rate is $0.0208 cents (or 5.51 %) over the
County's effective tax rate. The taxable valuation increased for the 2008 year by $307, 1 71 ,41 1 .
Request for Information
This financial report is designed to provide a general overview of the County's finances for all those with an
interest i n the government's finances. Questions concerni ng any of the information provide i n this report or
requests for additional financial information should be addressed to the County Auditor's Office, 1 1 5 N. Bridge,
Room 1 22, Victoria, Texas 77901 .
1 2
Basi c Fi nanci al Statements
COUNTY OF VICTORIA, TEXAS
STA TEMENT OF NET ASSETS
December 31, 2007
Primar Government
Governmental Busi ness-type Component
Activities Activities Total Units
ASSETS
Current assets
Cash and cash equivalents $ 1 8, 703, 360 $ 368,486 $ 1 9, 07 1 , 846 $ 87, 899, 770
Cash and cash equivalents
-
restricted 695,879 695,879 2, 284, 501
Investments 14, 027, 635
Receivables (net) 1 6,687,006 1 1 ,251 16, 698, 257 1 6, 299, 041
Internal balances 21 4,696 ( 21 4,696)
Due from other governments 1 , 265, 790 427, 473 1 , 693, 263 1 27, 957
Due from external parties 35, 000 35, 000
I nventory 25, 728 25, 728 1 ,799, 221
Deferred expenditures/expenses 8,794 8, 794 374, 910
Total current assets 37, 61 0, 525 61 8, 242 38,228,767 1 22, 81 3,035
Noncurrent assets
Capital assets
Land and other assets not being
depreciated 1 , 392, 758 1 , 204, 475 2, 597, 233 23, 833, 1 75
Bui ldi ngs, i mprovements, and
equi pment (net) 23, 229, 953 9, 759, 395 32, 989, 348 70, 883, 876
I ssuance costs (net) 46, 235 47, 977 94, 21 2 2, 644, 377
Restricted assets
Cash and cash equivalents 4, 776, 275
I nvestments
Total noncurrent assets 24, 668,946 1 1 , 01 1 , 847 35,680, 793 1 02, 1 37,703
Total assets 62, 279, 471 1 1 , 630, 089 73, 909, 560 224, 950, 738
1 3
LIABILITIES
Current liabilities
Accounts payable
Accrued expenses
Accrued interest payable
Due to other governments
Clairs payable
Unearned revenue
Accrued compensated absences
Current portion of long-term
obligations
Total current liabilities
Noncurrent liabilities
Noncurrent portion of long-term
obligations
Total noncurrent liabilities
Total liabilities
NET ASSETS
I nvested in capital assets, net of
related debt
Restricted for:
Debt service
Other purposes
Unrestricted net assets
Total net assets
Governmental
Activities
$ 761 , 689
599,485
1 66, 476
259, 720
471 , 51 9
1 7,086,284
99,365
2, 260, 858
21 , 705, 396
8, 766, 81 9
8, 766, 81 9
30, 472, 21 5
1 4, 451 , 437
53, 820
300, 280
1 7, 001 , 71 9
$ 31 , 807, 256
Primar Governrent
Business-type
Activities
$ 536,606
20,780
21 ,224
7, 287
80, 000
665, 897
1 , 025,453
1 , 025,453
1 , 691 , 350
9, 881 , 81 2
56, 927
$ 9, 938, 739
The accompanying notes are an integral part of thi s statement.
1 4
Component
Total Units
$ 1 , 298, 295 $ 3,257, 500
620, 265 7, 276, 295
1 87, 700 924, 893
259, 720 2, 874, 389
471 , 51 9
1 7, 086,284 1 ,478, 81 1
1 06,652
2, 340, 858 2, 830,000
22, 371 , 293 1 8, 641 , 888
9, 792, 272 34, 905, 000
9, 792, 272 34, 905, 000
32, 1 63,565 53, 546,888
24,333,249 64,008,963
53,820 1 , 506,934
300,280
1 7, 058, 646 1 05, 887, 953
$ 41 , 745, 995 $ 1 71 , 403, 850
COUNTY OF VICTORIA, TEXAS
STATEMENT OF ACTIVITIES
For the year ended December 31, 2007
---'F--
u
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n
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c
'-'
tio
"'
n
"-.
P r
"'
og
"'
r
c
a
"'
m
--'
s
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Primary Government
Governmental activities
General government
Public safety
Highways and streets
Culture and recreation
Public Ilealth
I nterest on long-term debt
Total governmental activities
Business-type activities
Airport
Navarro Project
Commissary
Total business-type activities
Total primary government
Component Units
Expenses
$ 1 5, 640, 516
1 1 , 51 8, 1 91
3, 804, 550
1 , 504,003
4, 1 57, 31 7
398, 91 9
37, 023, 496
2, 874, 801
576, 777
1 04, 1 28
3,555,706
$ 40, 579,_2(2
$ 1 1 8, 213,468
The accompanyi ng notes are an integral part of this statement.
1 5
Charges for
Services
$ 5, 1 23 021
2, 303. 680
1 , 771 .764
648. 392
9, 846 857
1 , 685, 1 34
547, 1 57
90, 91 7
2, 323, 208

1 2, 1 70,065
l1 �"_,U8, 1 86
Program Revenues
Operating
Grants and
Contributions
$ 1 , 1 89,658
469,839
301 , 21 6
1 , 908, 052
3, 868, 765
7,494
7,494
$ 3,8?6,259
$ 60,658
General revenues:
Taxes:
Capital
Grants and
Contributions
$
61 ,764
61 , 764
1 , 080, 71 0
1 , 080, 71 0
$ 1 , 1 42, 474
$ 541 , 1 64
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales taxes
Other taxes
Grants and contributions not restricted to
specific programs
Investment earnings
Sale of water rights
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning, as restated
Net assets - ending
Net (Expense) Revenue and
Changes in Net Assets
Primar Government
Governmental
Activities
$ (9, 327, 837)
(8, 682,908)
( 1 , 731,570)
( 1 , 504,003)
(1 , 600, 873)
(398,919)
(23,246, 1 1 0)
(23,246, 1 1 0)
1 5, 164,999
1 ,609, 619
7, 371,870
228,363
328,962
1 ,21 5,536
41 0,217
(648, 1 26)
25, 681, 440
2, 435, 330
29,371,926
$ 31 , 807,256
$
$
Business­
type
Activities
( 1 01 ,463)
(29,620)
(13,21 1 )
(1 44,294)
(144, 294)
17,659
3, 91 6
648, 126
669, 701
525, 407
9,413,332
9, 938, 739
Total
$ (9, 327, 837)
(8, 682, 908)
( 1 , 731,570)
( 1 , 504,003)
(1,600,873)
(398,919)
(23, 246, 1 1 0)
( 1 01 ,463)
(29,620)
(13,21 1 )
(144, 294)
(23,390,404)
1 5, 1 64, 999
1, 609,61 9
7, 371,870
228,363
328,962
1, 233, 1 95
414,133
26, 351,141
2, 960,737
38, 785,258
$ 41, 745,995
$
$
Component
Units
1 7,166,540
1 , 222, 097
191 , 595
5,673, 866
2, 337, 800
27, 897
9, 453, 255
26, 61 9, 795
144, 784, 055
171 , 403, 850
1 6
COUNTY OF VICTORIA, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2007
ASSETS
Current assets
Cash and cash equivalents - unrestricted
Cash equivalents - restricted
Receivables (net)
Due from other governments
Due from other funds
Deferred expenditures
Advance to other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
Accrued expenditures
Due to other funds
Due to other governments
Deferred revenue
Total liabilities
Fund balances
Reserved for:
Advances
Adult Probation
Deferred expenditures
Unreserved, undesignated reported i n:
General fund
Special revenue funds
Debt service funds
Total fund balances
Total liabilities and fund balances
The accompanying notes are an integral part of this statement.
1 7
$
$
$
$
Other Total
Governmental Governmental
General Funds Funds
1 4,307,677 $ 4,395,683 $ 1 8, 703,360
695,879 695,879
1 3,697,700 2,960,536 1 6, 658,236
626,520 639,270 1 , 265,790
406,41 9 238 406,657
8, 794 8, 794
21 1 ,766 21 1 ,766
29, 954,755 $ 7, 995, 727 $ 37, 950,482
524,455 $ 220,990 $ 745,445
41 1 ,243 1 88, 242 599, 485
286, 31 7 286, 31 7
259,720 259, 720
1 6,255, 1 33 4, 1 89,838 20,444, 971
1 7,450, 551 4, 885,387 22,335,938
21 1 ,766 21 1 ,766
1 5, 767 1 5,767
8,794 8,794
1 2, 267,877 1 2,267,877
2,992,795 2, 992, 795
1 1 7, 545 1 1 7, 545
1 2, 504,204 3, 1 1 0,340 1 5, 614, 544
29,954,755 $ 7, 995, 727 $ 37,950,482
COUNTY OF VICTORIA, TEXAS
RECONCILIA TlON OF TOTAL GOVERNMENTAL FUND BALANCE TO NET ASSETS
OF GOVERNMENTAL ACTIVITIES
December 31, 2007
Total governmental fund balances
Amounts reported for govermental activities in the statement of net assets are
diferent because:
The internal service fund i s used by the County to charge the cost of health
insurance to individual funds. The assets and liabilities of the internal service fund
is included in governmental activities i n the statement of net assets.
Property taxes receivable will be collected this year, but are not available soon
enough to pay for the current period's expenditures, and therefore are deferred in
the funds.
Because the focus of governmental funds is on short-term financing, some assets
will not be available to pay for current-period expenditures. Those assets (for
example, receivables) are offset by deferred revenues in the governmental funds
and thus are not included in fund balance.
Capital assets used in governmental activities are reported as expenditures in
governmental funds when purchased or constructed. The cost of these assets i s
$1 59, 880,747 and the accumulated depreciation is $1 35,258,036.
Other noncurrent assets (for example, bond i ssue costs) used in governmental
activities are not financial resources and therefore are not reported in
governmental funds. The cost of these assets i s $1 62,872 and the accumulated
amortization i s $1 1 6, 637.
Long-term liabilities are not due and payable in the current period and therefore
are not reported as liabilities in the funds. Long-term liabilities at year-end consist
of:
Bonds payable
Capital leases payable
Accrued interest payable
Compensated absences
Net assets of governmental activities
The accompanying notes are an integral part of this statement.
1 8
$ (7, 765,000)
(2,406,274)
( 1 66,476)
(955, 768)
$ 1 5, 614,544
(541 , 403)
1 , 51 5, 548
1 ,843, 1 39
24,622, 7 1 1
46,235
(1 1 , 293, 51 8)
$ 31 ,807, 256
COUNTY OF VICTORIA, TEXAS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended December 31, 2007
REVENUES
Taxes
Fees of office and user fees
I ntergovernmental
Fi nes and forfeitures
Investment income
Licenses and permits
Contributions
Miscellaneous
Total revenues
EXPENDITURES
Current
General government
Public safety
Highways and streets
Culture and recreation
Public health
Capital outlay
Debt service
Principal retirement
I nterest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Sal e of assets
Capital lease issuance
Transfers in
Transfers out
Total other financing sources (uses)
Change i n fund balances
Fund balances at beginning of year
Fund balances at end of year
The accompanying notes are an integral part of this statement.
1 9
$
$
Other
Governmental
General Funds
20,360,065 $ 3,858,074
1 , 868,891 998,270
3,589,241 5,396,244
1 , 671 , 822 70,421
969,927 243,841
33,967
1 1 , 51 0
791 ,848 90,380
29, 285, 761 1 0,668,740
1 4, 086,836 1 , 683,669
1 1 , 1 09,965 296,624
4,048,835
1 ,439,285 21 , 351
1 70,254 3,982,425
94,590
1 , 300,000
337,967
26,900,930 1 1 , 670, 871
2, 384, 831 (1 , 002, 1 31 )
48,493 1 6,630
1 76, 261 269,834
277, 500 1 , 982, 783
(2, 321, 772) (586,637)
( 1 , 81 9, 51 8) 1 , 682, 610
565, 31 3 680,479
1 1 , 938, 891 2,429,861
1 2, 504,204 $ 3, 1 1 0, 340
Total
Governmental
Funds
$ 24, 21 8, 1 39
2, 867, 1 61
8,985, 485
1 , 742,243
1 , 21 3,768
33,967
1 1 , 51 0
882,228
39,954,501
1 5, 770, 505
1 1 ,406,589
4,048,835
1 ,460,636
4, 1 52,679
94,590
1 , 300,000
337,967
38, 571 , 801
1 , 382,700
65, 1 23
446,095
2,260,283
(2,908,409)
(1 36,908)
1 , 245,792
1 4, 368,752
$ 1 5, 61 4,544
COUNTY OF VICTORIA, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
For the year ended December 31, 2007
Total net change in fund balances - governmental funds
Amounts reported for govermental activities in the statement of activities are
different because:
The internal service fund is used by the County to charge the costs of health
insurance to individual funds. The net loss of the internal service fund is reported
with govermental activities.
The net effect of various transactions involving capital assets (I . e. , sales and
trade-ins) is to decrease net assets.
Current year capital outlays are expenditures in the fund financial statements, but
they should be shown as increases in capital assets i n the government-wide
financial statements. The net effect of removing the 2007 capital outlays is to
increase net assets.
Depreciation is not recognized as an expense on the governrental funds since it
does not require the use of current financial resources. The net effect of the
current year's depreciation is to decrease net assets.
Capital lease proceeds provide current financial resources to governrental funds;
however, issuing debt increases long-term liabilities i n the statement of net
assets.
Current year payrents on long-term debt are expenditures in the fund financial
statements, but they serve to reduce long-terrn liabilities i n the government-wide
financial staterents. In the current year, these arounts consist of:
Bond principal retirement $ 1 , 300,000
Capital lease principal retirement
663,499
Because some property taxes will not be collected for several months after the
County's fiscal year ends, they are not considered "available" revenues and are
deferred i n the governmental funds. Si mi larly, other revenues are not currently
available at year end and are not reported as revenue i n the governmental funds.
Property taxes
Other revenues
Some items reported i n the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in
governmental funds. These activities consist of:
1 03,066
(3, 1 94)
30,237
(32, 614)
$ 1 , 245, 792
(207, 009)
(21 , 965)
1 , 809, 237
( 1 ,977,285)
(446,095)
1 , 963,499
99, 872
Decrease i n compensated absences
I ncrease in accrued interest
Decrease i n issuance costs
(28,339) �30, 716)
Change in net assets of governmental activities
The accompanying notes are an integral part of this statement.
20
$ 2, 435, 330
COUNTY OF VICTORIA, TEXAS
STA TEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2007
Busi ness-t��e Activities
Govemmental
Activities-
Navarro Internal Service
Air�ort Project Commissar Total Fund
ASSETS
Current assets
Cash and cash equivalents $ 1 61 ,845 $ 1 49, 1 71 $ 57, 470 $ 368,486 $
Receivables (net) 1 , 046 1 0,205 1 1 ,251 28, 770
Due from other governments 427, 473 427, 473
I nventor 25, 728 25,728
Total current assets 61 6,092 1 59,376 57, 470 832,938 28, 770
Noncurrent assets
Capital assets
Land and other assets not being
depreciated 1 , 055, 042 149,433 1 ,204,475
Bui l di ngs, i mprovements, and
equipment (net) 7, 1 1 0,266 2,636,653 1 2,476 9, 759, 395
Bond i ssue costs (net) 47,977 47, 977
Total noncurrent assets 8, 1 65,308 2, 834,063 1 2, 476 1 1 , 01 1 ,847
Tota I assets 8, 781 ,400 2, 993,439 69,946 1 1 ,844,785 28, 770
LIABILITIES
Current liabilities
Accounts payable 524, 077 1 2, 234 295 536,606 1 6,244
Accrued expenses 16, 287 2,472 2, 021 20,780
Accrued interest payable 21 ,224 21 ,224
Due to other funds 2, 266 465 1 99 2, 930 82,41 0
Advance from other funds 21 1 ,766 21 1 , 766
Claims payable 471 , 51 9
Accrued compensated absences 6, 372 636 279 7, 287
Current portion of bonds payable 80,000 80,000
Total current liabilities 549,002 328,797 2, 794 880,593 570, 173
Noncurrent liabilities
Accrued compensated absences 20, 457 2,042 896 23,395
Bonds payable, net 1 , 002,058 1 , 002,058
Total noncurrent liabilities 20, 457 1 , 004, 1 00 896 1 , 025,453
Total liabilities 569,459 1 , 332,897 3,690 1 , 906,046 570, 1 73
NET ASSETS
Invested in capital assets,
net of related debt 8, 1 65,308 1 , 704,028 1 2, 476 9, 881 , 81 2
Unrestricted net assets 46,633 (43,486) 53,780 56,927 (541 ,403)
Total net assets $ 8, 2 1 1 , 941 $ 1 , 660,542 $ 6(,256 $ 9,938,739 $ (541 , 403)
The accompanying notes are an integral part of this statement.
21
COUNTY OF VICTORIA, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the year ended December 31, 2007
Business-t��e Activities
Navarro
Air�ort Project
OPERATING REVENUES
Charges for services $ 1 , 1 29, 569 $
Rents 542,452 547, 1 57
Miscellaneous 1 3, 1 1 3
Total operating revenues 1 ,685, 1 34 547, 1 57
OPERATING EXPENSES
Airport operations 2, 1 96, 080
Commissary operations
Lease operations 279, 409
Heal th services
Bad debts 1 7, 500
Depreciation and amortization 661 ,221 229, 657
Total operating expenses 2, 874, 801 509,066
Operating income (loss) before
nonoperating revenues (expenses)
and contributions and transfers ( 1 , 1 89, 667) 38, 091
NONOPERATING REVENUES
(EXPENSES)
Investment income
Interest 6, 937 7, 064
Gain (loss) on disposal of capital assets 3, 916
Noncapital grants and contributions 7,494
I nterest and debt costs (67, 71 1 )
Total nonoperating revenues
(expenses) 1 8,347 (60,647)
Income (loss) before contributions
and transfers ( 1 , 1 7 1 , 320) (22, 556)
Contributions and transfers
Capital grants and contributions 1 , 080, 71 0
Transfers in 648, 1 26
Total contributions and transfers 1 , 728, 836
Change in net assets
557, 51 6 (22, 556)
Total net assets at beginning of year 7, 654, 425 �83, 098
Total net assets at end of year $ 8,21 1 , 941 $ 1 , 660,542
The accompanying notes are an integral part of this statement.
22
Commissar
$ 90, 91 7
90, 91 7
1 02, 1 58
1 , 970
1 04, 1 28
( 1 3, 21 1 )
3, 658
3, 658
(9, 553)
(9, 553)
75, 809
$ 66,256
Governmental
Activities-
Internal Service
Total Fund
$ 1 , 220,486 $ 2, 259, 446
1 , 089,609
1 3, 1 1 3
2, 323, 208 2, 259, 446
2, 1 96, 080
1 02, 1 58
279, 409
2, 468, 223
1 7, 500
892, 848
3, 487, 995 2, 468, 223
( 1 , 164, 787) (208, 777)
1 7,659 1 , 768
3, 916
7, 494
(67, 71 1)
(38,642) 1 , 768
( 1 , 203, 429) (207, 009)
1 , 080, 71 0
648, 1 26
1 , 728, 836
525, 407 (207, 009)
9, 41 3, 332 (334,394)
$ 9, 938, 739 $ (541 , 40

)
COUNTY OF VICTORIA, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended December 31, 2007
Business-t�ee Activities
Governmental
Activities-
Navarro Internal
Aireort Project Commissar Total Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 1, 669, 190 $ 552,795 $ 90, 917 $ 2, 312,902 $ 2, 259, 446
Cash paid to suppliers for goods and services (1, 415, 907) ( 170,972) ( 1 6, 017) (1, 602,896) (2,258,891)
Cash paid to employees for services (740,807) (104,866) (88, 177) (933,850)
Net cash provided (used) by operating
activities (487, 524) 276,957 (13, 277) (223,844) 555
CASH FLOWS FROM NONCAPITAL
FI NANCING ACTIVITIES
Borrowing (repayments) to other funds 72 (150,409) 8 ( 1 50,329) (2,323)
Transfers in from other funds 648, 126 648, 126
Net cash provided (used) by noncapital
financing activities 648,198 (150,409) 8 497,797 (2,323)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Capital contributed by federal government 1 ,327,760 1, 327,760
Acquisition and construction of capital assets (1, 445, 214) (1,400) ( 1,446,614)
Principal paid on bonds (75,000) (75, 000)
Interest paid (68,739) (68,739)
Net cash provided (used) by capital and
related fi nanci ng activities (117,454) (145, 139) (262,593)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments 139, 1 35 139, 135
Investment income 6,937 7,064 3,658 17,659 1,768
Net cash provided (used) by
investing activities 6,937 146, 199 3,658 1 56,794 1,768
Net increase (decrease) in cash and cash
equivalents 50, 1 57 127,608 (9,611 ) 168, 154
Cash and cash equivalents at beginning of year 111,688 21, 563 67, 081 200,332
Cash and cash equivalents at end of year $ 161, 845 $ 149, 171 $ 57,470 $ 368,486 $
23
COUNTY OF VICTORIA, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended December 31, 2007
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY OPERATING
ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income to
net cash provided by operating activities
Depreciation and amortization
Bad debts expense
Changes in assets and l i abilities
(I ncrease) decrease i n accounts receivable
(I ncrease) decrease in inventory
Increase (decrease) in accounts payable
I ncrease (decrease) in accrued expenses
Increase (decrease) in compensated absences
Increase (decrease) in claims payable
Total adjustments
Net cash provided (used) by
operating activities
Business-type Activities
Airport
Navarro
Project Commi ssary Total
Governmental
Activities­
Interal
Service Fund
$ (1, 189,667) $ 38, 091 $
661, 221 229,657
17,500
(15,944) 5,638
14,046
18,236 2,654
2, 836 529
4, 248 388
702, 143 238,866
(13, 211) $ (1, 164,787) $ (208,777)
1,970
(242)
(143)
(1, 651)
(66)
892,848
17,500
(10,306)
14,046
20,648
3, 222
2, 985
940,943
51,954
(31, 091)
188,469
209, 332
$ (487,524) $ 276,957 $ (13, 27Z) $ (223,844) "�
The accompanying notes are an integral part of this statement.
24
COUNTY OF VICTORIA, TEXAS
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2007
ASSETS
Cash and cash equivalents
Receivables (net)
Other
Due from other governments
Seized assets
Total assets
LIABILITIES
Li abi l ities
Accounts payable
Due to other funds
Due to other governments
Total liabilities
NET ASSETS
Unrestricted net assets
The accompanying notes are an i ntegral part of this statement.
25
Private
Purpose Agency
Trust Funds
$ 66,358 $ 9,930,629
69,390
4,674
1 3, 220
66,358 1 0, 01 7, 91 3
1 5,074 3, 791 , 758
35,000
6, 226, 155
50,074 1 0, 01 7, 91 3
$ 1 6,284 $
COUNTY OF VICTORIA, TEXAS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the year ended December 31, 2007
ADDITIONS
I nvestment income
I nterest
Miscellaneous
Participants' contributions
Total additions
DEDUCTIONS
General government
Participants' withdrawals
Changes i n net assets
Net assets - beginning
Net assets - ending
The accompanying notes are an integral part of this statement.
26
$
$
Private
Purpose
Trust
1, 706
1 26,427
1 28, 1 33
1 23, 793
4, 340
1 1,944
1 6,284
COUNTY OF VICTORIA, TEXAS
STA TEMENT OF NET ASSETS
COMPONENT UNITS
December 31, 2007
Victoria
County
Navigation
District
ASSETS
Current assets
Cash and cash equivalents $ 4, 915, 143
Cash and cash equivalents-restricted
Investments
Receivables (net) 1 , 082,590
Due from other governments 1 27,957
Supplies inventory
Deferred expenditures/prepaid expenses
Total current assets 6, 1 25,690
Noncurrent assets
Capital assets
Land and other assets not being
depreciated 1 1 , 897, 356
Buildings, i mprovements, and
equipment ( net) 3, 360,667
Bond i ssue costs ( net) 49,574
Restricted assets
Cash and cash equivalents
Total noncurrent assets 1 5,307,597
Total assets 21 ,433,287
LIABILITIES
Current liabilities
Accounts payable 73, 1 54
Accrued expenditures/expenses
Accrued interest payable
27,246
Due to other governments
Unearned revenue
1 ,478,81 1
Current portion of long-term obligations 285,000
Total current liabilities 1 ,864, 21 1
Noncurrent liabilities
Noncurrent portion of long-term obligations 1 , 925,000
Total noncurrent liabilities 1 , 925,000
Total liabilities 3,789, 21 1
NET ASSETS
Invested i n capital assets, net of related debt 1 3,048,023
Restricted for:
Debt service
1 20,080
Unrestricted net assets 4,475,973
Total net assets
$ 1 7,644,076
The accompanying notes are an integral part of this statement.
27
Victoria
County Citizens
Child Welfare Medical
Board Center Total
$ 1 33,046 $ 82, 851 , 581 $ 87, 899, 770
2, 284, 501 2, 284, 501
1 4,027,635 1 4,027,635
1 5, 21 6, 451 1 6, 299, 041
1 27, 957
1 , 799, 221 1 , 799, 221
400 374, 51 0 374, 91 0
1 33,446 1 1 6,553,899 1 22, 81 3,035
1 1 , 935, 81 9 23,833, 1 75
67,523,209 70,883,876
2,594,803 2,644,377
4, 776, 275 4, 776, 275
86,830, 1 06 1 02, 1 37,703
1 33,446 203,384,005 224, 950, 738
905 3, 1 83,441 3,257,500
7,276,295 7,276,295
897,647 924,893
2,874,389 2,874,389
1 ,478, 81 1
2,545,000 2,830,000
905 1 6, 776, 772 1 8, 641, 888
32,980,000 34,905,000
32,980,000 34,905,000
905 49,756,772 53,546,888
50,960,940 64,008,963
1 , 386,854 1 , 506,934
1 32, 541 1 01 ,279,439 1 05, 887, 953
$ 1 32, 541 $ 1 53,627,233 $ 1 71 ,403,850
COUNTY OF VICTORIA, TEXAS
STA TEMENT OF ACTIVITIES
COMPONENT UNITS
For the year ended December 31, 2007
Function/Programs
Component Units
Victoria County Navigation District
Victoria County Child Welfare Board
Citizens Medical Center
Expenses
$ 6,670, 1 63
62, 1 87
1 1 1 ,481 , 1 1 8
Charges for
Services
Program Revenues
Operating
Grants and
Contributions
$ 3, 21 4, 307 $
2, 250
1 31 , 561 , 629
60,658
Capital
Grants and
Contributions
$
541 , 1 64
Total component units $ 1 1 8, 21 3,468 $ 1 34, 778, 1 86 $ 60, 658
.
$ 5

4

1

, 1
"
6

4
The accompanying notes are an integral part of this statement.
28
General revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Investment earnings
Sale of water rights
Miscellaneous
Total general revenues
Change i n net assets
Net assets - begi nni ng
Net assets - endi ng
Victoria County
Navigation
District
$ (3, 455, 856)
(3, 455, 856)
1 , 222, 097
1 91 ,595
308,735
2, 337,800
27, 897
4, 088, 1 24
632,268
1 7, 01 1 ,808
$ 1!,644,076
Net (Expense) Revenue
and Changes
in Net Assets
Component Units
Victoria County
Child Welfare
Board
Citizens
Medical
Center
$
721
721
4, 233
4, 233
4, 954
1 27, 587
$ 1 32, 541
$
$
20, 621, 675
20, 621 ,675
5,360,898
5,360,898
25, 982, 573
1 27, 644,660
1 53,627,233
29
Total
$ (3,455,856)
$
721
20, 621, 675
1 7, 1 66,540
1 , 222,097
1 91 ,595
5,673, 866
2, 337, 800
27, 897
9,453,255
26, 619, 795
1 44,784,055
1 71 ,403,850
COUNTY OF VICTORIA, TEXAS
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
1
2
3
4
5
6
7
8
9
1 0
1 1
1 2
1 3
1 4
1 5
1 6
1 7
1 8
1 9
20
21
22
I NDEX
Summary of Si gnificant Accounti ng Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 + 31
Stewardshi p, Compliance, and Accountability . . 38
Deposits and Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . × + 38
Receivables . . . . . . . . . . . . 39
Due from Other Governments . . . 40
Capital Assets . . ........ . . ... . . 41
Lessor Agreements . . . . 42
Employees' Retirement Plan . . . . . . 43
Other Post Employment Benefits . 45
Employees' Heal th I nsurance Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . « 45
Deferred Compensation Pl an . . . . . . . . æ . . . . . . . ... . ... 46
Risk Management . 46
Long-Term Debt . . . . 46
Prior Year Defeasance of Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 + 49
Interfund Receivables, Payables, and Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . » 49
Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + 4 50
Contingencies » » 4 » » ^ 9 » 4 × » + + + » 4 4 4 » 4 ¬ æ æ 4 + æ æ 4 4 ¬ æ » æ æ » æ æ æ 4 æ » 4 4 + æ 4 æ 4 » » 4 æ 4 ¬ 4 4 « » 4 æ 4 + » » « » » 4 « æ æ » + æ æ « 4 æ « » 4 « æ » 4 æ 4 4 » » » 4 » » 4 + » 4 = » » 4 » » + » 4 9 » 50
Adjustments to and Restatements of Beginning Balances 4 æ æ æ » + æ æ æ 4 æ æ æ » æ » » 4 æ 4 ..... .. ... . .. ...... . .. ... . .. .... 50
Subsequent Event . . . . . . . . . . . . . . . . . . . . . . . . . . . . « »
51
Victoria County Navigation District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . » » 51
Victoria County Chi l d Welfare Board .
56
Citizens Medical Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . »
57
30
COUNTY OF VICTORIA, TEXAS
NOTES T FINANCIAL STATEMENTS
December 31, 2007
NOTE 1 : SUMMARY OF SI GNI FICANT ACCOUNTING POLICIES
The County of Victoria, Texas (the "County") i s a political subdivision of the State of Texas. The County is
governed by the Commissioners' Court, composed of four (4) County Commissioners and the County Judge,
all of whom are elected officials.
A. Reporting Entity
I n evaluating how to define the government, for financial reporting purposes, the County's management
has considered all potential component units. The decision to include a potential component unit in the
reporting entity was made by applying the criteria set forth i n the Governmental Accounting Standards
Board (GASB) Statement No. 1 4, The Financial Reporting Entity, and as amended by GASB Statement
No. 39, Determining Whether Certain Organizations are Component Units. Under these guidelines, the
reporting entity consists of the primary government (all funds of the County), organizations for which the
primary government is financially accountable, organizations for which the primary government is not
financially accountable, organizations that raise and hold economic resources for the direct benefit of
the primary government, and any other organization for which the nature and significance of their
relationship with the primary government is such that exclusion could cause the County's financial
statements to be misleading or incomplete. Entities other than the primary government that are
included i n the primary government's financial statements are called component units. The component
units discussed i n this note are included i n the County's financial statements because of the
si gnificance of their financial relationships with the County and the County's ability to impose its will on
the organizations.
Component Units
The component units column i n the financial statements includes the financial data of the County's
three component units. They are reported in a separate column to emphasize that they are legally
separate from the County.
Victoria County Navigation District - Established to oversee and regulate the maintenance and
operations of the Victoria Barge Canal . The District is governed by a Board of Commissioners, each
member of which is appointed by the Commissioners' Court of the County. The Commissioners' Court
of Victoria also reviews and approves its annual budget. This entity is considered a Governmental
Fund Type for the County's reporting purposes and uses the same fiscal year as the County.
Victoria County Child Welfare Board - Established to provide various child protective services to
residents of the County. The Commissioners' Court of the County appoints each member of the entity's
board of di rectors and reviews and approves its annual budget. The programs of the Board are jointly
financed by the County and the State of Texas. This entity is considered a Governmental Fund Type
for the County's reporting purposes and uses the same fiscal year as the County.
Citizens Medical Center - A 368-bed acute care hospital owned by the County and established to
provide medical services to the residents of the County and surroundi ng areas. The Medical Center is
governed by a board of directors, each member of which is appointed by the Commissioners' Court of
the County. This Court also reviews and approves the annual operating budget of the Medical Center.
Citizens Medical Center operates on a fiscal year endi ng June 30 of each year. The amounts reported
for the Medical Center in the financial statements are as of June 30, 2007. The Medical Center is
reported as a Proprietary Fund Type in the accompanying financial statements.
31
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)
A. Reporting Entity - (Continued)
Complete financial statements for each of the above noted component units may be obtained by
contacting their respective admi nistrative offices at the following addresses:
Victoria County Navigation District
1 1 5 North Bridge, Room 241
Victoria, Texas 77901
Victoria County Chi l d Welfare Board
1 502 E. Airline Road
Victoria, Texas 77901
Citizens Medical Center
2701 Hospital Drive
Victoria, Texas 77901
B. Government-wide and Fund Financial Statements
The government-wide financial statements (I . e. , the statement of net assets and the statement of
changes in net assets) report information on all nonfiduciary activities of the County and its component
units. For the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes, and intergovernmental revenues are
reported separately from business-type activities, which rely to a si gnificant extent on fees and charges
for support. Likewise, the primary government is reported separately from its legally separate
component units.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function 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, proprietary funds, discretely
presented component units, and fiduciary funds, even though the latter are excluded from the
government-wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns i n the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported usi ng the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in
the year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibil ity requirements i mposed by the provider have been met.
32
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES " (Continued)
C. Measurement Focus, Basis of Accounti ng, and Financial Statement Presentation " (Continued)
Governmental fund financial statements are reported usi ng 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.
The County considers property taxes as available if they are collected within 60 days after year-end. A
120 day availability period is used for recognition of all other Governmental Fund revenues.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, except for interest payable accrued at the debt issuance date for
which cash is received with the debt proceeds, as well as expenditures related to compensated
absences and cl aims and judgments, are recorded onl y when payment i s due.
The revenues susceptible to accrual are property taxes, fi nes, licenses, charges for services, interest
income and intergovernmental revenues. Sales taxes collected and held by the state and other third
parties at year-end on behalf of the County are also recognized as revenue. All other revenue items
are considered to be measurable and available only when cash is received by the County.
The 2007 tax levy i s dedicated to pay for expenditures of the 2008 budget. The entire 2007 tax levy
has been recorded as deferred revenue as of December 31 , 2007.
The County reports the following major governmental fund:
The General Fund is the County's primary operating fund. I t accounts for all financial resources
of the general government, except those required to be accounted for i n another fund.
The County reports the following major proprietary funds:
Enterprise Funds are used to account for operations: 1 ) that are financed and operated i n a
manner simi l ar to private business enterprises - where the intent of the governing body is that the
costs (expenses, including depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges; or 2) where the
governing body has decided that periodic determination of revenues earned, expenses incurred,
and/or net income is appropriate for capital mai ntenance, public policy, management control,
accountability, or other purposes.
The Airport Fund, an enterprise fund, accounts for the operations of and i mprovements to the
County Airport.
The Navarro Project Fund, an enterprise fund, accounts for the operation of a large office
complex which was purchased and renovated by the County for the primary use of the County
Health Department. The building is also currently leasing space to other entities unrelated to the
County.
Additionally, the County reports the following funds:
The Internal Service Fund accounts for the financing of goods or services provided by one
department or agency to other departments or agencies of the County, or to other governments,
on a cost-reimbursement basis. The County mai ntai ns one Internal Service Fund: Employee
Health Insurance Fund.
33
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - (Continued)
The Private Purpose Trust Fund, or the Flexible Benefits Plan, is used to account for amounts
withheld from employee paychecks before FICA and withholding taxes are computed. All
resources of the fund, incl udi ng any earnings on invested resources, may be used to benefit
parties outside the County. All the above is according to the pl an document. The fund is
excluded from the government-wide financial statements.
The Agency Funds account for resources held by the County as an agent for various
governments and individuals. These resources include ad valorem taxes collected and to be
distributed to other local governments, pass-through grants, various fines and fees to be
distributed to other governments, etc. The funds are excluded from the government-Wide
financial statements.
The Special Revenue Funds account for the proceeds of specific revenue sources that are legally
restricted to expenditures for specified purposes.
The Debt Service Funds account for financial resources accumulated and payments made for
principal and interest on long-term general obligation debt of governmental funds.
Private-sector standards of accounting and financial reporting issued prior to December 1 , 1 989,
generally are followed i n both the government-wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of GASB. Governments also
have the option of following subsequent private-sector guidance for their business-type activities and
enterprise funds, subject to this same limitation. The County has elected not to follow subsequent
private-sector guidance.
As a general rule the effect of i nterfund activity has been el i mi nated from the government-wide financial
statements. Exceptions to this general rule are charges between various functions of the County.
El i mination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
Amounts reported as program revenues include 1 ) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. I nternally 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 County's enterprise funds and internal service fund are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service 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.
When both restricted and unrestricted resources are available for use, it is the County's policy to use
restricted resources first, then unrestricted resources as they are needed.
34
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)
D. Budgets and Budgetary Accounting
The County Judge is, by statute, the budget officer of the County. After being furnished budget
guidelines by the County Judge and Commissioners' Court, the County Auditor prepares an estimate of
revenues and a compilation of requested departmental expenditures. Department officials appear
before the County Judge and the County Auditor for departmental budget review. A proposed budget is
prepared by the County Auditor, then submitted to the Commissioners' Court. Before determi ni ng the
final budget, the Commissioners' Court may increase or decrease the amounts requested by the
various departments. Amounts finally budgeted may not exceed the County Auditor's estimate of
revenues and estimated cash balance at January 1 of the budgeted year.
Budgets are adopted for the General Fund, some of the Special Revenue Funds and Debt Service
Funds by the first regular session of the Commissioners' Court in September. All budgets adopted by
the County are on the cash basis of accounting rather than in conformity with generally accepted
accounting principles (GAAP). Under the budgetary basis, revenues are recognized as collected and
expenditures when pai d.
When the budget has been adopted by the Commissioners' Court, the County Auditor is responsible for
monitoring expenditures to keep them from exceeding budgeted appropriations and for keeping the
members of the Commissioners' Court advised of the condition of the various funds and accounts. The
level of control (the level on which expenditures may not exceed appropriations) for each legally
adopted annual operating budget is on a line-item basis. Any amendments above the l i ne-item level
must have the approval of the Commissioners' Court before i mplementation. The line-item level of
control is defined by the basic categories of salaries, fringe benefits, operating expenditures, other
services and charges, capital outlay, and debt service.
Budget revenue amendments made during the year in the County's governmental funds netted an
increase of $1 ,432,378. Budget expenditure amendments i n these funds netted an increase of
$3,532,825.
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 by the County as an extension of formal budgetary integration. Encumbrances outstanding
at year-end are not reported as reservations of fund balances. All encumbered appropriations lapse at
the end of the fiscal year. Encumbered appropriations are reappropriated i n the ensui ng year's budget.
E. Deposits and Investments
The County's cash and cash equivalents are considered to be cash on hand, demand deposits, and
short-term investments with original maturities of three months or less from the date of acquisition.
Investments for the County are reported at fair value.
The County may invest its excess funds i n any instruments authorized by the Public Funds Investment
Act of Texas. Investments authorized under this Act include, but are not limited to, the following:
Obligations of the United States or its agencies and instrumentalities; direct obligations of the State of
Texas or its agencies and instrumentalities; collateralized mortgage obligations directly issued by a
federal agency or instrumentality of the United States, the underlying security for which is guaranteed
by an agency or instrumentality of the United States; other obligations, the principal and interest of
which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of
Texas or the United States or their respective agencies and instrumentalities; certificates of deposit
issued by a state or financial institution domiciled i n the State of Texas which is guaranteed or insured
by the Federal Deposit Insurance Corporation (FDI C) or otherwise secured; and certai n repurchase
agreements.
35
NOTE 1 : SUMMARY OF SIGNI FICANT ACCOUNTING POLICIES - (Continued)
E. Deposits and Investments - (Continued)
The Commissioners' Court has adopted a written investment policy regarding the investment of its funds
as defined by the Public Funds Investment Act of 1 995. The investments of the County are i n compliance
with the Commissioners' Court's investment policies.
F. Restricted Assets
Unspent capital lease proceeds in the County's General Fund are classified as restricted assets on the
balance sheet because they are restricted for the purchase of additional computer equipment and
software for various County departments. The monies are held i n escrow by the Bank of New York.
G. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the
end of tile fiscal year are referred to as "due to/from other funds" (i . e. , the current portion of interfund
loans) or "advances to/from other funds" (i . e. , the non-current portion of interfund loans). All other
outstandi ng balances between funds are reported as "due to/from other funds". Any residual balances
outstandi ng between the governmental activities and business-type activities are reported i n the
government-wide financial statements as "internal balances." Advances between funds, as reported in
the fund financial statements, are offset by a fund balance reserve account i n applicable governmental
funds to i ndicate that they are not available for appropriation and are not expendable available financial
resources,
All trade and property tax receivables are shown net of an allowance for uncollectibles.
H. Inventory and Prepaid items
Inventories of supplies held by the Airport Fund, an enterprise fund, are valued at the lower of cost
(first-in, first-out) or market. Estimated cost is used when actual cost figures are not available.
Certain payments to vendors reflect costs applicable to future accounting periods. These payments are
reported as deferred expenditures (governmental funds) or prepaid expenses (proprietary funds) in the
fund financial statements and as deferred expenditures/expenses i n the government-wide statements.
I . Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e. g. , roads, bridges,
sidewalks, and similar items), are reported i n the applicable governmental or business-type activities
columns in the government-wide statement of net assets. The County defines capital assets, other
than infrastructure assets, as assets with an initial, individual cost of more than $5,000 and an
estimated useful life i n excess of one year. The County reports infrastructure assets on a system basis.
Accordingly, the amounts spent for the construction or acquisition of infrastructure assets are
capitalized and reported regardless of their amount. I n the case of the i ni tial capitalization of general
infrastructure assets, the County chose to include all such items acquired on or after January 1 , 2003.
The County reported i nfrastructure assets acquired prior to January 1 , 2003 beginning i n year ending
December 31 , 2007.
36
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)
I. Capital Assets - (Continued)
As the County constructs or acquires capital assets each period, they are capitalized and reported at
historical cost. Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal mai ntenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized. Major outlays for capital assets and improvements are capital ized as
projects are constructed. I nterest incurred during the construction phase of capital assets of business­
type activities is capital ized when acquired with tax-exempt debt. The amount of interest to be
capital ized i s calculated by offsetting interest expense incurred during the period of construction until
completion of the project wi th interest earned on invested proceeds over the same period.
Property, pl ant, and equipment of the primary government is depreciated usi ng the straight line method
over the following estimated useful lives:
Assets
Bui l di ngs
Improvements other than buildings
I nfrastructure
Machinery and equipment
Office equipment and fixtures
J. Compensated Absences
Years
1 0-50
1 0-50
20-40
5-1 5
5-1 0
Vacation benefits are accrued by County employees according to guidelines set in the County's personnel
policy. This policy states that after completion of one year of service, each employee will thereafter
accrue vacation according to the number of years of continuous service. Upon termination of
employment, if the employee has completed one year of service, he or she will be paid for accrued but
unused vacation leave. The payment of unused vacation may not exceed 80 hours. All vacation is
accrued when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements.
Employees are credited with sick leave according to the number of years of continuous service. Sick days
may be accumulated up to a maximum of 60 working days (480 hours). County personnel policies state
that unused sick leave benefits will not be paid to employees upon termination, therefore, no sick leave
benefits are accrued.
K. Long-Term Obligations
In the government-wide financial statements, and in proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as li abi l ities i n the applicable
governmental activities, busi ness-type activities, or proprietary fund type statement of net assets. Bond
premiums and discounts, as wel l as issuance costs, are deferred and amortized over the life of the
bonds using the straight-line method. Bonds payabl e are reported net of the applicable bond premium
or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the
related debt.
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.
37
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)
L. Fund Equity
I n the fund financial statements, governmental funds report reservations of fund balance for amounts
that are not available for appropriation or are legally restricted by outside parties for use for a specific
purpose. Designations of fund balance, if any, represent tentative ranagement plans that are subject
to change.
M. Restricted Net Assets
Net assets are reported as restricted when there are limitations i mposed on their use either through the
enabling legislations adopted by the County or through external restrictions by creditors, grantors or
laws or regulations of other governments.
N. Use of Estimates
The preparation of the government-wide and fund financial statements i n conformity with generally
accepted accounting principles requires the County to make estimates and assessments that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date
of financial statements and the reported amounts of revenues and expenditures during the reporting
period. Accordingly, actual results could differ from those estimates.
NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Deficit Fund Equity
As of December 31 , 2007, the following funds had deficit equity balances:
Fund Balance!
Fund Net Assets
Internal Service Fund
Erployee Health I nsurance $ 541,403
Steps will be taken to eliminate these deficits in the upcoming fiscal year.
NOTE 3: DEPOSITS AND INVESTMENTS
As of December 31 , 2007, the County had the following investments:
Investment Tye
Money Market Funds
Total
Interest Rate Risk
Fair Value
$
845,050
; 845,050
Weighted Average
Maturity (Months)
N/A
In accordance with the County's investment policy, the County manages its exposure to declines in fair values
by limiting the weighted average maturity of its investment portfolio for investments to less than five years from
the time of purchase. Specifically, investments of operating funds must have stated final maturities of three
years or less and investments in capital project funds must have stated final maturities that do not exceed the
expected completion date of the project for which the bonds were sold. The money market funds are
redeemable in full i mmediately and therefore do not have a stated weighted average maturity.
38
NOTE 3: DEPOSITS AND INVESTMENTS " (Continued)
Credit Risk
Credit risk is the risk that an issuer or counterparty to an investment will not fulfill its obligations. The ratings
of securities by nationally recognized rating agencies are designed to give an indication of credit ri sk. I t is the
County's policy to limit its investments to those with ratings of not less than A or its equivalent. At
December 31 , 2007, the County was not exposed to credit risk.
Concentration of Credit Risk
The County's investment policy requires that the investment portfolio shall be diversified in terms of
investment instruments, maturity scheduling, and financial institutions to reduce the risk of loss resulting from
over concentration of assets in a specific class of investments, specific maturity or specific user. At year-end,
the County was not exposed to concentration of credit risk.
Custodial Credit Risk - Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the County's deposits may not be
returned to it. The County's investment policy requires that deposits at financial institutions be insured by the
FDIC andlor collateralized by securities pledged to the County by the depository in an amount equal to at least
1 1 0% of the carrying value of deposits held. As of December 31 , 2007, $27,731 , 1 50 of the County's bank
balance of $29,822,786 was exposed to custodial credit risk because it was uninsured and collateralized with
securities held by the County's depository.
Custodial Credit Risk - Investments
For an investment, this is the risk that, i n the event of the failure of the counterparty, the County will not be
able to recover the value of its investments or collateral securities that are i n the possession of an outside
party. The County's investment policy requires that securities be held in the name of the County or held on
behalf of the County and that all securities are purchased using the delivery versus payment method. As of
December 31 , 2007, and for the year then ended, the County was not exposed to any custodial credit risk.
Please see Notes 20, 21 and 22 for discussions relative to the cash deposits of the County's three component
units.
NOTE 4: RECEIVABLES
Receivables at December 31 , 2007 for the County's individual major funds and nonmajor and internal service
funds in the aggregate, including the applicable allowances for uncollectible accounts are as follows:
Nonmajor
Navarro and Other
General Airport Project Funds Total
Gross receivables
Ad valorem taxes $ 1 0, 91 5,375 $ $ $ 3,089,075 $ 1 4,004,450
Sales taxes 1 ,405, 510 1 ,405,51 0
Fines 6,082,845 6,082,845
Other 34,079 53,546 1 0,205 54,684 1 52, 514
Total gross receivables 1 8,437,809 53,546 1 0,205 3, 1 43,759 21 ,645, 319
Less: allowances 4, 740, 109 52, 500 1 54,453 4,947,062
Total net receivables $ 1 3,697,700 $ 1 , 046 $ 1 0, 205 $ 2,989,306 $ 16, 698,257
39
NOTE 4: RECEIVABLES (Continued)
The only receivables not expected to be collected within one year are $251 ,490 of fines receivable reported i n
the General Fund.
The County's governmental funds report deferred revenue in connection wi th receivables for revenues that
are not considered to be available to liquidate liabilities of the current period. The govermental funds also
defer revenue recognition in connection with resources that have been received, but not yet earned. At the
end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in
the governmental funds were as follows:
Unavailable Unearned Total
General Fund
Ad valorem taxes receivable $ 1 , 249,488 $ 1 3, 1 62, 506 $ 14, 41 1 ,994
Fi nes receivable 1 , 843, 1 39 1 , 843, 1 39
Nonmajor Funds
Ad valorem taxes receivable 266,060 3,923,778 4,1 89,838
;
. :�687 L 1 7,086,284 $ 20,444,971
Property taxes attach as an enforceable lien on property as of January 1 . Taxes are levied on October 1 and
payable by the following January 31 , which comprises the collection dates for the current tax roll. The County
of Victoria Tax Assessor-Collector bills and collects its own property taxes.
The County is permitted by State Statute to levy taxes up to $. 80 per $1 00 of assessed valuation. The
combined tax rate for the budgetary year ended December 31 , 2007 was $0.3986 per $100, which means the
County has a tax margi n of $0. 4014 per $1 00.
NOTE 5: DUE FROM OTHER GOVERNMENTS
Various funds of the County reported amounts due from other governments as of the end of the current year.
These amounts are comprised of the following at December 31 , 2007:
Nonmajor
and Other
General Airport Funds Total
Contract reimbursements
$ 538,272 $ $ $ 538,272
Federal and state grants 38,253 427,473 639,270 1 , 1 04,996
Alcohol and bingo taxes 49,995 49,995
$ 626,520 $ 427,473 $ 639,270 $ 1 , 693,263
40
NOTE 6: CAPITAL ASSETS
The County's capital asset activity for the year ended December 31 , 2007, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets, not being depreciated
Land $ 1 , 376,758 $ 1 6,000 $ $ 1 , 392, 758
Construction i n progress
463, 71 7 463, 717
Total capital assets not being depreciated 1 ,840,475 1 6,000 463, 71 7 1 , 392,758
Capital assets, being depreciated
Machinery and equipment 1 1 ,071 ,488 1 , 1 33,064 624,697 1 1 , 579,855
Buildings 1 8,754,800 78,590 1 8,833,390
I mprovements 1 3, 21 9,090 71 7, 41 3 1 3,936,503
I nfrastructure 1 1 4, 121 ,084 327,888 31 0,731 1 1 4, 1 38,241
Total capital assets being depreciated 1 57, 1 66,462 2,256,955 935,428 1 58,487,989
Less accumulated depreciation for
Machinery and equipment 7, 1 69,768 868, 1 23 602,732 7,435, 1 59
Buildings 6,821 , 1 27 348, 1 1 6 7, 1 69,243
I mprovements 6,879,876 656,642 7,536, 51 8
I nfrastructure 1 1 3,323,443 1 04,404 31 0, 731 1 1 3, 1 1 7, 1 1 6
Total accumulated depreciation 1 34, 1 94, 214 1 , 977,285 91 3,463 1 35,258,036
Total capital assets being depreciated, net 22,972,248 279,670 21 ,965 23,229,953
Govenmental activities capital assets, net $ 24, 81 2,723 $ 295,670 $ 485,682 $ 24, 622, 71 1
Business-type activities
Capital assets, not being depreciated
Land
$ 1 49,433 $ $ $ 1 49, 433
Construction i n progress 1 ,055,042 1 , 055,042
Total capital assets not being depreciated 1 49,433 1 , 055,042 1 , 204,475
Capital assets, bei ng depreciated
Machinery and equipment 678,363 42,323 2,664 71 8,022
Buildings 2,642,790 2,642,790
I mprovements 1 5,607,630 87, 1 67 1 5, 694,797
Total capital assets being depreciated 1 8, 928,783 1 29,490 2,664 1 9,055,609
Less accumulated depreciation for
Machinery and equipment 522,581 56,730 2,664 576,647
Buildings
1 , 642,240 1 1 0,582 1 , 752,822
I mprovements 6,246,491 720,254 6,966,745
Total accumulated depreciation 8,41 1 , 31 2 887,566 2,664 9,296, 21 4
Total capital assets being depreciated, net 1 0, 51 7, 471 (758,076) 9,759,395
Business-type activites capital assets, net $ 1 0,666,904 $ 296,966 $ $ 1 0,963,870
41
NOTE 6: CAPITAL ASSETS - (Continued)
Depreciation expense was charged to functions/programs of the County as follows:
Governmental activities
General government
Public safety
Highways and streets
Culture and recreation
Public health
Total depreciation expense - governmental activities
Business-type activities
Airport
Commissary
Navarro project
Total depreciation expense - business-type activities
NOTE 7: LESSOR AGREEMENTS
$ 554,000
806,475
483, 1 81
50,293
83,336
$ 661, 221
1 , 970
224,375
$ 887,566
The Airport Fund, a major enterprise fund, leases land and buildings to various unrelated third parties.
Approximately 25 percent of the Airport Fund's capital assets are used to operate the Airport activities. The
total cost of the buildings is $1 , 275, 31 7 and the carrying value is $1 37,860. The total cost of the
i mprovements to the land and buildings is $1 2,596,354 and the carrying value is $6,854,677. Accumulated
depreciation on all assets i n the Airport Fund is $6,879, 1 34. Following is an analysis of mi ni mum future
rentals due the Airport Fund under noncancelable lease agreements as of December 31 , 2007:
Year Ending
December 31
2008
2009
201 0
201 1
201 2
Thereafter
$ 1 78,535
1 62, 577
1 37,327
1 05,321
97,033
680,793
650,380
W
3173
The Navarro Project Fund, a major enterprise fund, also leases bui ldi ng space. Approximately 50 percent of
the building space is used by the Victoria City/County Health Department. The remaini ng 50 percent is
leased to various unrelated third parties. The total cost of the building leased is $1 ,367,473 and the carrying
value is $752, 108. The total cost of the improvements to the building leased is $3,098,443 and the carrying
value is $1 ,225,065. Accumul ated depreciation on all leased assets i n the Navarro Project Fund is
$1 , 840,430. Following is an analysis of mi ni mum future rentals due the Navarro Project Fund under
noncancelable lease agreements as of December 31 , 2007:
Year Ending
December 31
2008 $ 233, 014
2009 1 84,693
201 0 56,821
201 1
1 6,900
$ 491 .428
42
NOTE 8: EMPLOYEES' RETIREMENT PLAN
The County provides retirement, disability, and death benefits for all of its full-time employees through a
nontraditional defined benefit pension plan in the statewide Texas County and District Retirement System
(TCDRS). The Board of Trustees of TCDRS is responsible for the admi nistration of the statewide agent
multiple-employer public employee retirement system consisting of 573 nontraditional defined benefit pension
plans. TCDRS i n the aggregate issues a comprehensive annual financial report (CAFR) on a calendar year
basi s. The CAFR is available upon written request from the TCDRS Board of Trustees at P. O. Box 2034,
Austin, Texas 78768-2034.
The plan provisions are adopted by the governing body of the employer, within the options available i n the
Texas state statutes governing TCDRS (TCDRS Act). Members can retire at ages 60 and above with 8 or
more years of service, with 20 years of service regardless of age, or when the sum of thei r age and years of
service equals 75 or more. Members are vested after 8 years of service but must leave their accumulated
contributions i n the plan to receive any employer-financed benefit. Members can withdraw contributions i n a
l ump sum via partial payments, however, these members are not entitled to any amounts contributed by their
employer.
Benefit amounts are determined by the sum of the employee's contributions to the pl an, with interest, and
employer-financed monetary credits. The level of these monetary credits is adopted by the governing body of
the employer within the actuarial constraints i mposed by the TCDRS Act so that the resulting benefits can be
expected to be adequately financed by the employer's commitment to contribute. At retirement, death, or
disability, the benefit is calculated by converting the sur of the employee's accumulated contributions and the
employer-financed ronetary credits to a monthly annui ty using annui ty purchase rates prescribed by the
TCDRS Act.
A. Funding Policy
The employer has elected the annually determined contribution rate (Variable-Rate) plan provisions of the
TCDRS Act. The plan is funded by monthly contributions from both employee members and the employer
based on the covered payroll of employee members. Under the TCDRS Act, the contribution rate of the
employer is actuarially determined annually. It was 1 1 .30% for calendar year 2007. The deposit rate
payable by the employee members is the rate of 7.00% as adopted by the governing body of the
employer. The employee deposit rate and the employer contribution rate may be changed by the
governing body of the employer within the options available i n the TCDRS Act.
B. Annual Pension Cost
For the employer's accounting year ending December 31 , 2007, the annual pension cost for the TCDRS
plan for its employees was $2,308,829 and the actual contributions were $2,308,829.
The annual required contributions were actuarially determined as a percent of the covered payroll of the
participating employees, and were i n compliance with GASB Statement No. 27 parameters based on the
actuarial valuation as of December 31 , 2006, the basis for determining the contribution rate for calendar
year 2007. The December 31 , 2006 actuarial valuation is the most recent valuation.
43
NOTE 8: EMPLOYEES' RETIREMENT PLAN - (Continued)
C. Actuarial Valuation and Trend Information
Actuarial Valuation Information
Actuarial cost method
Amortization method
Amortization period in years
Asset valuation method
Assumptions:
Investment return (1)
Projected salary increases (1)
Inflation
Cost of living adjustments
1 2/31 /04
entry age
level percentage
of payroll, open
20
long-term
appreciation
with adjustment
8.00%
5.5%
3.5%
0. 0%
(1) includes inflation at the stated rate
1 2/31/05
entry age
level percentage
of payroll, open
20
long-term
appreciation
with adjustment
8.00%
5.3%
3.5%
0.0%
Trend Information for the Retirement Plan for the
Employees of the County of Victoria, Texas
Fiscal Annual Percentage
1 2/31/06
entry age
level percentage
of payroll, closed
1 5
SAF; 1 O-yr smoothed
value
ESF; Fund value
8.00%
5.3%
3.5%
0.0%
Net
Year Ending Pension of APC Pension
December 31 Cost (APC) Contributed Obligation
2005 $1 ,948,643 100% $
2006 2,049,854 100%
2007 2,308,829 1 00%
Schedule of Funding Progress for the Retirement Plan
for the Employees of the County of Victoria, Texas
UAAL as a
Actuarial Actuarial Actuarial Unfunded Annual Percentage
Valuation Value of Accrued AAL Funded Covered of Covered
Date Assets Liability (AAL) (UAAL) Ratio Payroll
(1)
Payroll
(a) (b) (b-a) (alb) (c) ((b-a)/c)
1 2/31 /04 $41 , 978, 51 8
$ 51 ,297,495 $9, 31 8,977 81 .83% $ 1 7,709,859 52.62%
1 2/31 /05 45, 1 09,402 54,637, 145 9,527,743 82. 56% 1 7, 71 5,357 53.78%
1 2/31/06 49,547,664 57, 197, 41 1 7,649,747 86.63% 1 8,962,335 40.34%
( 1 ) The annual covered payroll is based on the employee contributions received by TCDRS for the year
ending with the valuation date.
44
NOTE 9: OTHER POST EMPLOYMENT BENEFITS
In addition to providing pension benefits, the County provides its retirees with post employment health care
benefits. In order for a County employee to be eligible for this benefit, their age combined with their years of
service must equal seventy-five (75), or they must have attained the age of sixty (60) and with ei ght (8) years
of service, or they must have twenty (20) or more years of service with Victoria County and can retire at any
age with full benefits.
The County pays 50% of the premium cost for each retiree under the age of 65 provided they worked for
Victoria County for twenty (20) or more years. If the retiree worked less than twenty (20) years for Victoria
County the County will pay 40% of the premium cost. The County also pays 1 0% of the premium cost for
dependents who may be covered under the retiree's (under 65) health insurance pl an.
The County pays 50% of the premi um cost for medical coverage onl y for each retiree over the age of 65. The
County does not contribute to the premi um cost for dependents for retirees over the age of 65.
Other post employment benefits are expensed and funded on a pay-as-you-go basi s. The County recognizes
the cost of providing these benefits as a payroll expense/expenditure in an operating fund with corresponding
revenue i n the Employee Health Insurance Fund. Payments for health insurance are shown as an expense in
the Employee Health Insurance Fund. The cost of providing these benefits for 54 and 50 retirees and active
employees for the years 2007 and 2006, respectively, is not separated. Total payments to the Employee
Health Insurance Fund by retirees were $1 04,496 in 2007 and $1 47, 390 in 2006.
NOTE 1 0: EMPLOYEES' HEALTH INSURANCE FUND
The County maintains a self-insurance internal service fund designed to pay comprehensive health benefits
incurred by its participants. The fund assumes all risk up to $85,000 of claims per participant annually; after
this a reinsurance policy pays any remai ni ng claims for the remainder of the year up to $91 5,000 of claims per
participant. Premiums are charged to the individual funds based on a predetermined cost per employee and
dependent. These amounts are recorded as operating revenue in the internal service fund and as operating
expenditures/expenses i n the respective funds. Any claims that have been incurred, but not reported, as of
the balance sheet date are shown as current liabil ities i n the internal service fund and have been charged as
an operating expense for that period. This amount was determined by the County's health plan admi nistrator.
As of December 31 , 2007, the fund had estimated liabilities for outstanding claims of $471 , 519. There was a
deficit unrestricted net assets of $541 ,403 as of December 31 , 2007, a decrease of $207,009 from 2006.
Below is a reconciliation of claims liabilities reported i n the Employee's Health Insurance Fund for the years
noted:
Payable Payable
Year 111 Incurred Paid 1 2/31
1 998 $330,568 $1 , 754,903 $ 1 , 81 0,932 $274,539
1 999 274,539 2,639,039 2, 71 9,839 1 93,739
2000 1 93,739 2,083,065 1 , 937,285 339, 519
2001 339, 51 9 2, 617,446 2, 21 1 ,485 745,480
2002 745,480 1 , 546,81 3 1 , 91 3,502 378,791
2003 378,791 1 , 635,920 1 , 742,01 3 272,698
2004 272,698 1 , 663,809 1 , 31 5,452 621 ,055
2005 621 ,055 1 , 548, 1 1 2 1 ,951 , 61 0 21 7,557
2006 21 7,557 2,969,408 2,903,91 5 283,050
2007 283,050 1 , 995, 710 1 ,807,241 471 , 519
The above schedule reflects only those claims for which the County was liable. I nformation on claims paid by
the insurance carrier under the reinsurance policy was not available. Settled claims resulting from insured
risks have not exceeded insurance coverage i n any of the past three fiscal years.
45
NOTE 1 1 : DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in accordance with Internal Revenue
Code Section 457. The plan, available to all County employees, permits them to defer a portion of their salary
until future years. Except in specified circumstances, the deferred compensation is not available to employees
until termination, retirement, death, or unforeseeable emergency.
During 1 998, the County transferred plan assets to an independent trust for the exclusive benefit of the
participants and their beneficiaries.
NOTE 1 2: RISK MANAGEMENT
The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The County purchased commercial
insurance to cover risks associated with potential claims in 2007. There were no significant reductions i n
coverage in the past fiscal year, and there were no settlements exceeding insurance coverage for each of the
past three fiscal years.
NOTE 1 3: LONG-TERM DEBT
A Changes I n Long-Term Liabilities
Long-term liability activity for the year ended December 31 , 2007, was as follows:
Begi nni ng Endi ng Due Within
Balance Additions Reductions Balance One Year
Governmental activities
Bonds and certificates payable
Certificates of obligation $ 4,060,000 $ $ 340,000 $ 3,720,000 $ 350,000
General obligation bonds 5,005,000 960,000 4,045,000 1 ,01 0,000
Total bonds payable 9,065,000 1 , 300,000 7,765,000 1 , 360,000
Capital leases payable 2,623,678 446,095 663,499 2,406,274 900,858
Compensated absences 986,005 1 ,066,662 1 ,096,899 955,768 99,365
Arbitrage earnings payable 3,867 3,867
Total governmental activity
long-term liabilities U,678,550 $ 1 ,51 2.757 $ 3,064,265 $ 1 1 ,1 27,042 l2, 360,223
Business-type activities
Bonds
Revenue bonds
$ 1 , 1 60,000 $ $ 75,000 $ 1 , 085,000 $ 80,000
Less: issuance discount 3,252 31 0 2,942
Total bonds payable 1 , 1 56,748 74,690 1 , 082,058 80,000
Compensated absences 27,697 40,240 37,255 30,682 7,287
Total busi ness-type activity
long-term liabilities
$_ 1
,
1
84
,, 45 $ 40,240 !L. JJ 1,941 LJ, 1 1 2,74 ] 87,287
For the governmental activities, compensated absences are generally liquidated by the General Fund.
46
NOTE 1 3: LONG-TERM DEBT (Continued)
B. General Obligation Certificates and Bonds
Long-term liabilities at December 31 , 2007 are comprised of the following issues:
$2, 590,000 2003 Limited Tax Refunding (Jail) Bonds due in annual
installments ranging from $440,000 to $455,000 through 2009; interest varying
between 2.0% and 3. 0%. $
895,000
$775,000 2003 Unl i mi ted Tax Refundi ng (Road) Bonds due in annual
installments ranging from $1 45,000 to $1 50,000 through 2009; interest varying
between 2. 0% and 3. 0%.
$1 ,650,000 1 998 Unl i mited Tax (Road) Bonds due i n annual installments
ranging from $1 60, 000 to $205,000 through 201 3; interests varying between
4. 5% and 4. 75%.
$2, 700,000 1 998 Limited Tax (Courthouse Restoration) Bonds due i n annual
installments ranging from $260,000 to $335,000 through 201 3; interest varying
between 4. 1 % and 4. 4%.
$5,000,000 2001 Certificates of Obligation (Bridge Street Annex) due in annual
installments ranging from $350,000 to $485,000 through 2016; interest varying
between 3. 55% and 4. 5%.
Total general obligation debt
Year Ending
December 31
2008
2009
201 0
201 1
201 2
201 3-2016
C. Capital Leases
Principal
$ 1 , 360,000
1 , 405,000
840,000
880,000
920,000
2,360,000
�7,765,000
Governmental Activities
Interest
$ 290, 418
241 , 925
1 98,685
1 62,278
1 23,637
1 77,404
l1 94,347
Total
$ 1 , 650, 41 8
1 ,646,925
1 ,038,685
1 ,042,278
1 , 043,637
2,537,404
1.J.59,347
295,000
1 ,085,000
1 , 770,000
3,720,000
$ 7.765,000
Capital leases payable at December 31 , 2007 are comprised of the following individual leases:
Lease purchase agreement on the construction of a regional juvenile detention
facility. The original amount of the lease, entered into in 1 995, was refinanced in
2004 for $2, 351, 458. It bears interest at a rate of 5.69% and requires monthly
installments of $41 ,626. $ 1 ,052,604
Lease purchase agreement on computer equipment and software for various
County departments. The original amount of the lease, entered into in 2006, was
$1 ,240,554. I t bears interest at a rate of 4. 32% and requires annual installments
of $273,909.
980,043
Lease purchase agreement on a vibrator roller used by Precinct #1 . The original
amount of the lease, entered into i n 2006, was $81 ,789. The lease is payable in
three annual installments of $28,530 and bears interest at a rate of 4.72%. 27,244
47
NOTE 1 3: LONG-TERM DEBT (Continued)
C. Capital Leases - (Continued)
Lease purchase agreement on seven 2006 four -door sedans used by the
Sheriff's Department. The original amount of the lease, entered into in 2006,
was $1 71 ,079. The lease is payable in three annual installments of $59,676 and
bears interest at a rate of 4. 72%. $
Lease purchase agreement on seven 2007 four-door sedans used by the
Sheriffs Department. The original amount of the lease, entered into in 2007,
was $1 76,261 . The lease is payable in three annual installments of $61 ,983 and
bears interest at a rate of 5.60%.
Lease purchase agreement on a tractor and mower used by Precinct #1 . The
original amount of the lease, entered into i n 2007, was $88,203. The lease is
payable i n three annual installments of $30,960 and bears interest at a rate of
5. 40%.
Lease purchase agreement on rollers used by Precinct #. The original amount
of the lease, entered into in 2007, was $181 ,631 . The lease is payable i n three
annual installments of $63,754 and bears interest at a rate of 5. 40%.
56,986
1 1 4,278
57,242
1 1 7,877
Total capital leases L406,274
The present value of the capital leases after deduction of imputed interest is $2,406,274.
Year Endi ng
December 31
2008
2009
201 0
201 1
D. Revenue Bonds
Principal
$ 900,858
867,457
375,396
262,563
l 2,406,274
Governmental Activities
I nterest
$ 1 1 7,472
62,666
23,393
1 1 ,343
§ 21 4,874
Revenue bonds payable is comprised of the following:
Total
$ 1 ,01 8,330
930, 1 23
398,789
273,906
$ 2 621 , 1 48
$1 ,650,000 1 997 Victoria County Public Facilities Corporation Lease Revenue
Bonds, Series 1 997 due in annual installments ranging from $80,000 to
$1 40,000 through 2017; interest rate varying between 5.35% and 6.00%.
$
1,085,000
Total revenue bonds
$ 1,085,000
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Endi ng
December 31
2008
2009
201 0
201 1
201 2
201 3-201 7
Principal
$ 80,000
85,000
90,000
1 00, 000
1 05, 000
625,000
$ 1 ,085,000
Busines-type Activities
48
I nterest
$ 61 ,452
56,874
51 ,928
46,465
40,545
98,550
$ 355,81 4
Total
$ 141 ,452
1 41 , 874
1 41 ,928
1 46,465
1 45,545
723,550
�.440,81 4
NOTE 14: PRIOR YEAR DEFEASANCE OF DEBT
I n pri or years the County defeased certain general obligation bonds by pl aci ng the proceeds of new bonds i n
an irrevocable trust to provide for all future debt service payments on the ol d bonds. Accordingly, the trust
account assets and the liability of the bonds are not included i n the County's financial statements. At
December 31 , 2007, $1 , 225,000 of bonds outstandi ng is considered defeased.
NOTE 15: INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
A. Interfund Receivables and Payables
At times during the fiscal year the various funds of the County were involved in transactions that created
interfund receivable and payable balances. These transactions related to such things as the purchase of
goods by one fund on behalf of another and the receipt of revenue in one fund that belongs to or is
designated for another fund. I n addition to the short-term amounts, the General Fund has made long-term
loans to the Navarro Project Fund, a proprietary enterprise fund type, during the years ended
December 31 , 1 998 through December 31 , 2007. The amounts of the loans total $1 ,01 0,690 and are
being used to finance the construction and operation of the Navarro lease project.
Interfund receivable and payable balances as of December 31 , 2007, were as follows:
Due to/from other funds:
Receivable Fund
General
Nonmajor Governmental
CDA Victims Assistance
Grant
Total
Advances from/to other funds:
Receivable Fund
General
Total
Payable Fund
Nonmajor Governmental
Airport
Navarro Project
Commissary
Internal Service
Private Purpose Trust
Nonmajor Governmental
CDA Processing Fee
Payable Fund
Navarro Project
49
$
$
$
$
Amount
286,079
2,266
465
1 99
82, 41 0
35,000
406, 41 9
238
406,657
Amount
21 1 ,766
21 1 ,766
NOTE 1 5: INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS - (Continued)
NOTE 1 6:
B. I nterfund Transfers
Each year various funds of the County transfer funds to other funds. The most si gnificant of these are
the planned transfers from the County's General Fund to the Health Department Fund, a Special
Revenue Fund. These transfers are intended to provide the necessary resources to meet the operating
obligations of the receiving fund. During the current fiscal year, transfers between funds consisted of
the following:
Transfers I n
Nonmajor
Transfers Out General Governmental Airport Total
General $ $ 1 ,673,646 $ 648, 126 $ 2, 321 , 772
Nonmajor Governmental 277,500 309,137 586,637
$ ?7,500 $ 1 , 982,783 $ 648, 126 $ 2,908,409
RELATED PARTY TRANSACTIONS
During fiscal year 2007, the County's General Fund entered into transactions with the Victoria County
Navigation District and the Victoria County Child Welfare Board, discretely presented component units of the
County, whereby the Navigation District contributed to the primary government a total of $4,200 for services
of the County and the County contributed to the Board $60,000 for operational purposes.
NOTE 1 7: CONTINGENCIES
The County is exposed to the risk of contingent liabilities in the ordinary course of its operations. Specifically,
such risks arise as a result of the County's participation i n various state and federal grant programs and as a
result of threatened and pending litigation. Disallowed costs could result if County expenditures made under its
grants programs are found to be improper i n that they violate state or federal regulations. Such disallowed costs
would have to be paid back to the granting agency from the County's General Fund. The County is not aware of
any costs that have been disallowed in the current year and does not anticipate that any will be.
As of December 31 , 2007, the County was involved i n various matters of litigation. I t is the opinion of the
County's legal counsel that any exposure faced by the County as a result of these matters was minimal.
Furthermore, any losses incurred would i n all probability be covered by liability insurance carried by the County.
Based on the above information, the accompanying financial statements do not reflect any accrual for contingent
liabilities as of the end of the current fiscal year.
NOTE 18: ADJUSTMENTS TO AND RESTATEMENTS OF BEGINNING BALANCES
Government-wide Net Assets
The begi nni ng governmental activities net assets in the government-wide financial statements was adjusted
for the followi ng: To properly reflect the capital assets, net of accumulated depreciation, at
December 31 , 2006 i n the amount of $797,641 . Management estimates that the changes described above to
the governmental activities of the County would have decreased the previously reported change in net assets
by $1 02,935 for the year ended December 31 , 2006.
50
NOTE 19: SUBSEQUENT EVENT
There were no events, which occurred subsequent to the fiscal year-end and prior to the issuance of this
report, which would have a material effect on the County's financial position as of December 31 , 2007.
NOTE 20: VICTORIA COUNTY NAVIGATION DISTRICT
As described in Note 1 , the Victoria County Navigation District is a component unit of the County. It is
reported in a separate column to emphasize that i t is legally separate for accounting purposes from the
County. Following are note disclosures relating to this component uni t.
A. Organization
Victoria County Navigation District (the " District") was created by a vote of the electorate of Victoria
County, Texas, at an election held on February 4, 1 947, under the provisions of Article 8263(h) VAT. S.
(now codified i nto Chapter 62, Texas Water Code). The Board of Navigation and the Canal
Commissioners (the "Di rectors") is the level of government which has oversight responsibility and
control over all activities related to the District's activities in the County.
The Directors are appointed by the Commissioners' Court of the County and have decision-making
authority, the power to designate management, the responsibility to significantly influence operations,
and primary accountability for fiscal matters including taxing authority.
B. Summary of Significant Accounting Policies
The accounting and reporting policies of the District conform to GAAP, as applicable to governmental
uni ts. For inclusion i n this report, the District's operations are reported in a single Governmental Fund
Type.
C. Deposits and Investments
Interest Rate Risk
I n accordance with the District's investment policy, the District manages its exposure to declines in fair
values by li mi ti ng the weighted average maturity of its investment portfolio for investments to less than
five years from the time of purchase. Specifically, investments of operating funds must have stated
final maturities of three years or less and investments i n capital project funds must have stated final
maturities that do not exceed the expected completion date of the project for which the bonds were
sold.
Credit Risk
It is the District's policy to limit its investments to those with ratings of not less than A or its equivalent.
The District's investments i n the U. S. Government Securities had AM ratings from both Standard &
Poor's and Moody and Fitch.
51
NOTE 20: VICTORIA COUNTY NAVIGATION DISTRICT - (Continued)
C. Deposits and Investments - (Continued)
D.
Concentration of Credit Risk
The District's investment policy requires that the investment portfolio shall be diversified in terms of
investment instruments, maturity scheduling, and financial institutions to reduce the risk of loss resulting
from over concentration of assets i n a specific class of investments, specific maturity or specific user.
At year-end, the District was not exposed to concentration of credit risk.
Custodial Credit Risk - Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the District's deposits may not
be returned to it. The District's investment policy requires that deposits at financial institutions be
insured by the FDI C and/or collateralized by securities pledged to the District by the depository in an
amount equal to at least 1 1 0% of the carrying value of deposits hel d. As of December 31 , 2007,
$4, 91 5, 043 of the District's bank balance of $4,939,094 was exposed to custodial credit risk because it
was uninsured and collateralized with securities held by the District's depository in other than the
District's name.
Custodial Credit Ri sk - Investments
For an investment, this is the risk that, in the event of the failure of the counterparty, the District will not
be able to recover the value of its investments or collateral securities that are i n the possession of an
outside party. The District's investment policy requires that securities be held i n the name of the District
or held on behalf of the District and that all securities are purchased using the delivery versus payment
method. As of December 31 , 2007, and for the year then ended, the District was not exposed to any
custodial credit risk.
Receivables
Receivables at December 31 , 2007 consist of the following:
Debt
General Service Total
Gross receivables:
Accounts
$ 27,408 $ $ 27,408
Ad valorem taxes 839,81 9 270,898 1,1 1 0,71 7
Total gross receivables 867,227 270,898 1 , 1 38, 125
Less: allowances 41 ,991 1 3,544 55,535
Total net receivables

821236 j 257, j 1 ,082,590
52
NOTE 20: VICTORIA COUNTY NAVIGATION DISTRICT (Continued)
D. Receivables - (Continued)
The District's governmental funds report deferred revenue i n connection with receivables for revenues
that are not considered to be available to liquidate liabilities of the current period. The governmental
funds also defer revenue recognition i n connection with resources that have been received, but not yet
earned.
At the end of the current fiscal year, the various components of deferred revenue and unearned
revenue reported i n the governmental funds were as follows:
Unavailable Unearned Total
General Fund
Ad valorem taxes receivable $ 49,503 $ 1 , 1 28,866 $ 1 , 1 78,369
Debt Service Fund
Ad valorem taxes receivable 25,338 349,945 375,283
!. . ¬~-
74,841 $
1,478,.1 1 $ 1 ,553,652
.+
The District's ad valorem property tax is levied each October 1 on the assessed value listed as of the
prior January 1 for all real and business personal property located in the District. Taxes are delinquent
by February 1 following the October 1 levy date. A statutory lien becomes effective on all property with
unpai d taxes as of January 1 of the year following the assessment.
E. Due From Other Governments
At December 31 , 2007, the Victoria County Tax Assessor and Collector held tax receipts that had been
collected for, but not yet remitted to, the District. These amounts are reported as due from other
governments in the government-wide and fund financial statements.
F. Prepaid Lease Relating to Land Purchase
The PFC purchased 1 800+ acres of land, inclusive of an appurtenant water rights permit i n March 2007
for a total of $5,604,871 . The PFC leased the land to the District for a 20-year period for $3,267,071
which was pai d i n advance. The PFC immediately sold the consumptive water rights permit to the
District for $2,337,800, which immediately sold them to the Ci ty of Victoria, Texas. The prepaid lease
amount as of December 31 , 2007 was $3, 1 44,555. This amount is recorded as an asset i n the General
Fund balance sheet at year-end. The PFC recorded the advance payment as deferred revenue as of
December 31 , 2007 in the same amount. The asset and deferred revenue amounts were el i minated i n
the government-wide financial statements since the cost of the land is included as part of the capital
assets of the governmental activities.
53
NOTE 20: VICTORIA COUNTY NAVIGATION DISTRICT - (Continued)
G. Capital Assets
The District's capital asset activity for the year ended December 31 , 2007 was as follows:
Beginning
Balance I ncreases Decreases
Governmental activities
Capital assets, not being depreciated
Land $ 8, 539, 317 $ 3,358,039 $
Total capital assets, not being depreciated
8,539,31 7 3,358,039
Capital assets, being depreciated
I mprovements 7,894,408 452, 745
M. PRR. Mai n Line Bridge 1 , 493, 1 34
Equi pment 8, 81 6
Total capital assets, being depreciated 9,396,358 452,745
Less accumulated depreciation for
I mprovements 5,002,875 31 3,235
M. P. R. R. Mai n Line Bridge 1 , 1 38,742 27,677
Equipment 4,845 1 , 062
Total accumulated depreciation 6, 1 46,462 341 , 974
Total capital assets being depreciated, net 3,249,896 1 1 0, 771
Governmental activities capital assets, net $ 1 1 ,789, 21 3 $ 3, 468, 810 $
Endi ng
Balance
$ 1 1 ,897,356
1 1 ,897,356
8, 347, 1 53
1 , 493, 1 34
8,81 6
9, 849, 103
5, 316, 1 1 0
1 , 1 66, 41 9
5,907
6,488,436
3,360,667
$1 5,258,023
Depreciation expense of $341 ,974 was charged to the general government function/program in 2007.
H. Long-Term Debt
The following is a summary of general obligation bond transactions for the year ended
December 31 , 2007 for governmental activities:
Bonds payable at January 1 , 2007
Additions
Retirements
Bonds payable at December 31 , 2007
Bonds payable at December 31 , 2007 is comprised of the following issue:
2003 General Obligation refunding bonds due i n annual
installments of various amounts beginning i n 2005 through
February 1 5, 2014; interest rate varies based on year of
maturity and ranges from 3. 0% to 3. 75%.
54
$ 2,480,000
(270,000)
$-21 0,000
12, 210,000
NOTE 20: VICTORIA COUNTY NAVIGATION DISTRICT (Continued)
H. Long-Term Debt - (Continued)
Annual debt service requirements to maturity for the general obligation bonds are as follows:
Maturities PrinciQal Interest Total
2008 $ 285,000 $ 68,381 $ 353,381
2009 295,000 59,681 354,681
201 0 305,000 50,881 355,881
201 1 310, 000 41 ,263 351 ,263
201 2 325,000 30,934 355,934
201 3-2014 690,000 25,850 71 5,850
Total L. 2, 2
10
,
000 $ 276,9� $ 2,48.6,il
0
In 2004, the District issued $2,860,000 of General Obligation Refunding Bonds with interest rates
varying from 3. 0% to 3. 75% to currently refund the District's General Obligation Bonds, Series 1 994
with interest rates varying from 5.0% to 7.0% and to provide fundi ng for costs of issuance. As a result,
the Series 1 994 bonds are considered defeased and the liabilities have been removed from the
governmental activities column on the statement of net assets. The 1 994 Series that was refunded has
$2, 1 60,000 of bonds outstanding at December 31 , 2007.
I . Risk Management
The District is exposed to various risks of loss related to torts, theft of, damage to and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The District purchased
commercial insurance to cover risks associated with potential clai ms during fiscal year 2007. There
were no significant reductions i n coverage i n the past fiscal year, and there were no settlements
exceeding insurance coverage for each of the past three fiscal years.
J. Budgetary Compliance
There was one category of expenditures exceeding the amount appropriated during 2007.
Fund Name ­
Department
General Fund
Operating expenditures
Budget
$ 1 , 079,649
55
Actual
$1 , 1 91 ,868
Negative
Variance
$ (1 1 2, 219)
NOTE 21 : VICTORIA COUNTY CHILD WELFARE BOARD
As described in Note 1 , the Victoria County Child Welfare Board (the "Board") is a component unit of the
County. I t is reported i n a separate column to emphasize that it is legally separate for accounting purposes
from the County. Following are note disclosures relating to this component uni t:
A. Organization
The Commissioners' Court of Victoria County, Texas established the Board on August 8, 1 938. The
Board is a countywide, jointly financed, state-administered program of child protection to meet the
needs of abused, neglected, and abandoned children, and children with special needs. The board
members of the Board have decision-making authority, the power to designate management, the
responsibility to significantly influence operations, and primary accountability for fiscal matters. The
Board is considered a component unit of the County under the guidelines established by GASB
Statement No. 1 4.
B. Summary of Significant Accounting Policies
The accounting and reporting policies of the Board conform to GAAP, as applicable to governmental units.
For inclusion i n this report, the Board's operations are reported i n a single Governmental Fund Type.
C. Deposits and Investments
The Board has deposits that are held by one financial institution within Victoria County, Texas. At
December 31 , 2007 and 2006, the carrying amount of the Board's deposits was $1 32,956 and
$1 22,782, respectively. The bank balances were $1 36, 1 65 and $1 23,466, respectively. The deposits
are collateralized by FDI C coverage as follows:
I nsured by FDI C
Amount of Board's deposits uncollateralized
by financial institutions
Total
Texas Statutes authorize the Board to invest i n:
1 . obligations of the U. S. Treasury or its agencies;
2. direct obligations of the State of Texas or i ts agencies;
2007 2006
$ 1 36, 165 $ 1 23,466
$ 1 36,1 6�
3. other obligations, the principal of and interest on which are unconditionally guaranteed or insured
by the State of Texas or the United States;
4. obligations of states, agencies, counties, or cities rated A or better by a national investment rating
fi rm;
5. certificates of deposit that are insured by the FDI C or secured by obligations havi ng a market value
of at least the principal amount of the certificates; and
6. fully collateralized direct repurchase agreements.
As of December 31 , 2007, the Board held $1 1 6,974 invested i n FDI C insured certificates of deposit.
The Board held no other investments during the current fiscal year.
56
NOTE 21 : VICTORIA COUNTY CHI LD WELFARE BOARD - (Continued)
D. Federal Title IV-E Reimbursement Program
The Federal Title IV-E Program, whereby the federal government reimburses the Board for monies
spent on childcare and general support costs during the year, began i n 1 997. The amount reimbursed
to the Board is determined based on a calculation made by the federal government. As of
December 31 , 2007, $0 was receivable pertaining to the Title IV-E Reimbursement Program.
E. Retirement Plan
The Board set up a retirement plan during 1 999 for their employees. Employees who are reasonably
expected to receive at least $5,000 in compensation for the calendar year and employees who have
received at least $5,000 in compensation during any one calendar year preceding the current calendar
year are eligible to participate in the plan. Employees may contribute up to $6,000 of their annual salary.
The Board matches up to three percent of an employee's annual salary. For the years ended
December 31 , 2007 and 2006, the Board made contributions of $551 and $1 ,01 7, respectively, on behalf
of its employees.
F. Budgetar Legal Compliance
For the fiscal year ended December 31 , 2007, the Board complied with budgetary restrictions except as
follows:
Fund
General Fund:
Accounting fees
Bank charges
Staff appreciation
NOTE 22: CITIZENS MEDICAL CENTER
$
Variance
4, 285
20
81 1
As described i n Note 1 , Citizens Medical Center i s a component unit of the County. I t is reported i n a separate
column to emphasize that it is legally separate for accounting purposes from the County. Following are note
disclosures relating to this component unit:
A. Organization
Citizens Medical Center (the "Medical Center") is a 368-bed acute care hospital that is a component unit
of the County. The Medical Center is operated by a Board of Directors that is appointed by the County
Commissioners' Court. Its primary mission is to provide health care services to the citizens of the County.
The Medical Center primarily earns revenues by providing inpatient, outpatient, skilled nursing, home
health, and emergency care services to patients i n the Victoria County and surrounding areas.
The financial statements of the Medical Center also include accounts of the Citizens Medical Center
Foundation (the "Foundation"). The Foundation was established to foster, support and encourage the
activities and purposes of the Medical Center, and to advance its objectives, including sponsorship of,
and assistance to, the Medical Center.
57
NOTE 22: CITIZENS MEDICAL CENTER - (Continued)
B. Summary of Significant Accounting Policies
The financial statements of the Medical Center have been prepared on the accrual basis of accounting
using the economic resources measurement focus. Revenues, expenses, gai ns, losses, assets, and
liabilities from exchange and exchange-like transactions are recognized when the exchange transaction
takes place. Operating revenues and expenses include exchange transactions. Investment income
and interest on capital assets-related debt are included i n nonoperating revenues and expenses. The
Medical Center first applies restricted net assets when an expense or outlay is incurred for purposes for
which both restricted and unrestricted net assets are available.
The Medical Center prepares its financial statements as a business-type activity i n conformity with
applicable pronouncements of GASB. Pursuant to GASB Statement No. 20, the Medical Center has
elected to apply the provisions of all relevant pronouncements of the Financial Accounting Standards
Board (FASB) that were issued on or before November 30, 1 989, and do not conflict with or contradict
GASB pronouncements.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses duri ng the reporting
period. Actual results could differ from those estimates.
Cash Equivalents
The Medical Center considers all liquid investments, with original maturities of three months or less, to be
cash equivalents. At June 30, 2007, cash equivalents consisted primarily of money market mutual funds.
Risk Management
The Medical Center is exposed to various risks of loss from torts; theft of, damage to, and destruction of
assets; business i nterruption; errors and omissions; employee injuries and illnesses; natural disasters;
and employee health, dental and accident benefits. Commercial insurance coverage is purchased for
claims arising from such matters other than general and professional liability, employee health claims
and workers' compensation. Settled claims have not exceeded this commercial insurance coverage i n
any of the three preceding years.
The Medical Center is self-insured for a portion of its exposure to risk of loss from general and
professional liability, employee health claims, and workers' compensation. Annual estimated provisions
are accrued for the self-insured portion of general and professional l i ability, employee health claims and
workers' compensation, and i ncl ude an estimate of the ul ti mate costs for both reported claims and
cl ai ms incurred but not yet reported.
Investments in Debt Securities
Investments in debt securities are carried at fair value, which is determined using quoted market prices.
Investment income includes dividend and interest income, realized gains and losses on i nvestments
sold and the net change for the year i n the fair value of investments carried at fair value.
58
NOTE 22: CITIZENS MEDICAL CENTER · (Continued)
B. Summary of Significant Accounting Policies - (Continued)
Suplies
Supply inventories are stated at the lower of cost, determined usi ng the first-in, first-out method, or
market.
Capital Assets
Capital assets are recorded at cost at the date of acquisition, or fair value at the date of donation if
acquired by gift. Depreciation is computed using the straight-line method over the estimated useful life
of each asset. Assets under capital lease obligations and leasehold improvements are depreciated
over the shorter of the lease term or their respective estimated useful lives.
The following estimated useful lives are being used by the Medical Center:
Land improvements
Buildings, building improvements, and fixed equipment
Major movable equipment
Net Assets
5 to 25 years
3 to 40 years
3 to 25 years
Net assets of the Medical Center are classified in three components. Net assets invested in capital
assets, net of related debt, consist of capital assets, net of accumulated depreciation, and reduced by
the outstanding balances of borrowings used to finance the purchase or construction of those assets.
Restricted expendable net assets are noncapital assets that must be used for a particular purpose, as
specified by creditors, grantors, or donors external to the Medical Center, i ncludi ng amounts deposited
with trustees as required by revenue bond indentures, reduced by the outstanding balances of any
related borrowings. Unrestricted net assets are remaining assets less remaining liabilities that do not
meet the definition of invested in capital assets, net of related debt, or restricted expendable.
Net Patient Service Revenue
The Medical Center has agreements with third-party payers that provide for payments to the Medical
Center at amounts different from its established rates. Net patient service revenue is reported at the
estimated net realizable amounts from patients, third-party payers, and others for services rendered
and includes estimated retroactive revenue adjustments and a provision for uncollectible accounts.
Retroactive adjustments are considered in the recognition of revenue on an estimated basis for the
period the related services are rendered and such estimated amounts are revised i n future periods as
adjustments become known.
Deferred Fi nancing Costs
Deferred financi ng costs represent costs incurred in connection with the issuance of long-term debt.
Such costs are being amortized over the term of the related bond issues using the straight-line method.
The unamortized amount of deferred financing costs is included in other assets on the balance sheet.
59
NOTE 22: CITIZENS MEDICAL CENTER - (Continued)
B. Summary of Significant Accounting Policies - (Continued)
Charity Care
The Medical Center provides care without charge or at amounts less than its established rates to
patients meeting certain criteria under its charity care policy. Because the Medical Center does not
pursue collection of amounts determined to qual ify as charity care, these amounts are not reported as
net patient service revenue.
Income Taxes
As an essential government function of the County, the Medical Center i s generally exempt from federal
and state income taxes under Section 1 1 5 of the Internal Revenue Code and a similar provision of state
law. However, the Medical Center is subject to federal income tax on any unrelated business taxable
income.
Estimated Professional Liabil ity Costs
The Medical Center has set aside certain assets for the payment of self-insured professional liability
losses and related costs. An annual estimated provision is accrued for the self-insured portion of
professional li abi lity claims and includes an estimate of the ultimate costs for both reported claims and
claims incurred but not reported.
Com pen sated Absences
Medical Center policies permit most employees to accumulate vacation benefits that may be realized as
paid time off or, in l i mi ted circumstances, as a cash payment. Expense and the related liability are
recognized as vacation benefits are earned. Compensated absence li abi lities are computed using the
regular pay and termination pay rates i n effect at the balance sheet date plus an additional amount for
compensation-related payments such as social security and Medicare taxes computed using rates in
effect at that date.
Patient Accounts Receivable
The Medical Center reports patient accounts receivable for services rendered at net realizable amounts
from third-party payers, patients, and others. The Medical Center provides an allowance for doubtful
accounts based upon a review of outstanding receivables, historical collection information, and existing
economic conditions. As a service to the patient, the Medical Center bills third-party payers directly and
bills the patient when the patient's liability is determined. Patient accounts receivable are due i n full
when billed. Accounts are considered delinquent and subsequently written off as bad debts based on
individual credit evaluation and specific circumstances of the account.
Reclassifications
Certain reclassifications have been made to the 2006 financial statements to conform to the 2007
financial statement presentation. The reclassifications had no effect on the results of operations.
60
NOTE 22: CITIZENS MEDI CAL CENTER - (Continued)
C. Net Patient Service Revenue
The Medical Center has a9reements with third-party payers that provide for payments to the Medical
Center at amounts different from its established rates. These payment arrangements include:
Medicare
Inpatient acute care, skilled nursing, and substantially all outpatient services rendered to Medicare
program beneficiaries are paid at prospectively determined rates. These rates vary according to a
patient classification system that is based on clinical, diagnostic, acuity, and other factors. The Medical
Center is reimbursed for certain services at tentative rates with final settlement determined after
submission of annual cost reports by the Medical Center and audits thereof by the Medicare fiscal
intermediary. The Medicare fiscal i ntermediary has audited the Medical Center's cost reports through
June 30, 2004.
Medicaid
Inpatient services are paid under a prospective payment system. Outpatient services rendered to
Medicaid program beneficiaries are primarily paid based on a cost reimbursement methodology. The
Medical Center is reimbursed for certain services at a tentative rate with final settlement determined
after submission of annual cost reports by the Medical Center and audits thereof by the Medicaid fiscal
intermediary.
Approximately 49% of net patient service revenues are from participation i n the Medicare and state­
sponsored Medicaid programs for the year ended June 30, 2007. Laws and regulations governing the
Medicare and Medicaid programs are complex and subject to interpretation and change. As a result, it
is reasonably possible that recorded estimates will change materially in the near term.
The Medical Center has also entered into payment agreements with certain commercial insurance
carriers, health maintenance organizations, and preferred provider organizations. The basis for
payment to the Medical Center under these agreements includes prospectively determined rates per
discharge, discounts from established charges, and prospectively determined daily rates.
In 2007, net patient service revenue includes approximately $1 1 , 952, 1 00 of funds received through the
Medicaid Upper Payment Limit program.
D. Accounts Receivable
The Medical Center grants credit without collateral to its patients, many of whom are area residents and
are insured under third-party payer agreements. Patient accounts receivable at June 30, 2007,
consisted of these amounts:
Patients and their insurance carriers
Medicare
Medicaid
Less allowance for uncollectible amounts
61
$ 28, 292, 568
4, 355, 745
868, 1 38
33, 516, 451
1 8,300,000
$ 1 5,21 6,.51
NOTE 22: CITIZENS MEDICAL CENTER - (Continued)
E.
F.
Capital Assets
Capital asset activity for the year ended June 30, 2007 was as follows:
Balance
June 30, 2006
Land and land improvements $ 5,596,851
Buildings, improvements, and
fixed equipment 87, 554, 130
Major moveable equipment 82,342,660
Construction i n progress
3, 1 1 4, 737
1 78,608,378
Less accumulated depreciation:
Land and land improvements 1 , 467, 1 24
Buildings, improvements, and
fixed equi pment 39, 851 , 344
Major moveable equi pment
66,606, 1 09
1 07, 924,577
Capital assets, net $ 70,683,801,
Deposits, I nvestments, and Investment Income
Deposits
Additions Transfers
$ 651 ,750 $ 706,847
457,455 6,931 , 61 5
4, 1 29,245 1 , 31 6,799
1 0, 820,895 (8, 955, 261 )
1 6, 059,345
68,644
2, 577,698
4, 637, 776
7,284, 1 1 8
$8, 775, 2:� $
Balance
Disposals June 30, 2007
$ $ 6,955,448
94,943,200
87,788,704
4,980,371
1 94,667,723
1 ,535,768
42,429,042
71 ,243,885
1 1 5,208,695
$ $ 79,459,028
Custodial credit risk is the risk that in the event of a bank failure, a government's deposits may not be
returned to it. The Medical Center's deposit policy for custodial credit risk requires compliance with the
provisions of state law.
State law requires collateralization of all deposits with federal depository insurance; bonds and other
obligations of the U. S. Treasury, U. S. agencies or instrumentalities of the State of Texas; bonds of any
city, county, school district or special road district of the State of Texas; bonds of any state; or a surety
bond having an aggregate value at least equal to the amount of the deposits.
At June 30, 2007, $23,833 of the Medical Center's bank balance of $82,856, 101 was exposed to custodial
credit risk as follows:
Uninsured and uncollateralized
Uni nsured and collateral held by pledging financial
institution's trust department or agent i n other
than the Medical Center's name.
62
$ 23,833
82,632,268
U2J56" 1 01
NOTE 22: CITIZENS MEDICAL CENTER - (Continued)
F. Deposits, Investments, and Investment Income - (Continued)
Investments
The Medical Center's internally designated investments are made by the Victoria County Treasurer and
either held by the County or bank trust departments in the County's name. I n accordance wi th the
Medical Center's investment policy, these investments are i n either money market mutual funds or
government obligations.
At June 30, 2007 the Medical Center had the following investments and maturities:
Maturities i n Years
Type Fair Value Less Than 1 1 -5 6-1 0
U. S. agencies and obligations $ 1 5, 954,240 $1 3, 91 7,369 $ 2,036, 871 $
Money market mutual funds
4,957,496 4,957,496
20, 91 1 , 736 1 8,874,865 2, 036, 871
Accrued investment income
1 76, 675 1 76, 675
$ 21 ,088, 41 1 $1 9, 051 ,54
Q $ 2,036,871 $

I nterest Rate Risk - As a means of li mi ti ng its exposure to fair value losses arising from rising
interest rates, the Medical Center's investment policy limits its investment portfolio to maturities of
four years or less. The money market mutual funds are presented as an investment with a maturity
of less than one year because they are redeemable i n full i mmedi ately.

Credit Risk - Credit risk is the risk that the issuer or other counterparty to an investment will not
fulfill its obligations. At June 30, 2007, the Medical Center's investments that were not directly
guaranteed by the U. S. government were rated as follows:
Investment
U. S. agencies obligations
Money market mutual funds
Moody's
Aaa
Aaa
S&P
AAA
AAA
Fitch
A
Not rated

Concentration of Credit Risk - The Medical Center places no limit on the amount that may be
invested in U. S. agencies obligations. At June 30, 2007, individual investments that exceeded 5%
of the total fair value of all investments are listed below.
Investment
Federal Home Loan Mortgage Corporation, August 27, 2007
Federal National Mortgage Association, September 28, 2007
Federal National Mortgage Association, October 29, 2007
Federal Home Loan Bank, December 28, 2007
Federal National Mortgage Association, January 1 5, 2009
63
Fair Value
$ 2,856,957
3, 483,431
2, 01 7,805
2, 1 25,787
2,036,871
L12,520,851
Percent
ol Total
1 3. 55%
1 6.52%
9. 57%
1 0.08%
9.66%
5
9
. 3
8%
NOTE 22: CITIZENS MEDICAL CENTER - (Continued)
F. Deposits, Investments, and Investment Income - (Continued)
Summary of Carrying Values
The carrying values of deposits and investments shown previously are included i n the balance sheets as
follows:
Carrying value
Deposits
I nvestments
Included i n the following balance sheet captions
Cash and cash equivalents
Restricted cash and cash equivalents - current
Restricted cash and cash equivalents - noncurrent
Other investments - current
Investment I ncome
Investment income consists of the followi ng:
I nterest and dividends
Unrealized gai n (loss) on investments
G. Long-term Obligations
$ 82, 851 , 581
21, 088,41 1
193M92
$ 82, 851 , 581
2,284,501
4,776,275
1 4,027,635
$ 103,939,992
$ 5, 010,462
350,436
$ 5, 360,898
The following is a summary of long-term obligation transactions for the Medical Center for the year
ended June 30, 2007:
Long-term debt
Series 1 994 Bonds (A)
Series 1 999 Bonds (8)
Total long-term debt
Balance
June 30, 2006
$ 1 9, 525,000
1 7, 51 0,000
� .7,035,000
Additions Deductions
$ $( 1 ,535,000)
(975, 000)
$ $(2, 510, 000)
Balance Current
June 30, 2007 Portion
$ 1 7, 990,000 $1 , 525,000
1 6,535,000 1 ,020,000
$ 34,525,000 $2,545,000
(A) Due January 1 , 2016; principal payable annually on January 1 ; interest payable semi annually at
i nterest rates varying between 4.00% to 6. 25%; secured by the Medical Center's net revenues
and trustee-held assets.
(8) Due February 1 5, 2019; principal and interest payable semi annual l y at interest rates varying
between 4. 30% and 6. 25%; secured by the Medical Center's net revenues and trustee-held
assets.
64
NOTE 22: CITIZENS MEDICAL CENTER (Continued)
G. Long-term Obligations - (Continued)
H.
Under the terms of the Revenue Bond Indentures, the Medical Center i s required to mai ntai n certain
funds with a trustee. Accordingly, these funds are included as assets held by trustee for debt service i n
the balance sheets. The Revenue Bond Indentures also place limits on the incurrence of additional
borrowings and require that the Medical Center satisfy certain measures of financial performance as
long as the bonds are outstandi ng.
The debt service requirements as of June 30, 2007, are as follows:
Years Ending June 30, Total PrinciQal Interest
2008 $ 4, 51 2,601 $ 2,545,000 $ 1 , 967,601
2009 4,651 ,036 2,835,000 1 , 81 6,036
201 0 4,639,598 2,990,000 1 , 649,598
201 1 4, 541 , 033 3, 01 0,000 1 , 531, 033
201 2 4,547,980 3, 1 95,000 1 , 352,980
201 3-201 7 20,099, 61 8 1 6, 41 5,000 3,684, 618
201 8-2021 3,829,250 3,535,000 294,250
$ _ ..6,821,1 1( $ 34,525,000 L
12,296,1 1 6
Derivative Instruments
Objective of the Derivative Instruments
The Medical Center's asseUliability strategy is to have a mixture of fixed and variable-rate debt to take
advantage of market fluctuations. As a strategy to maintain acceptable levels of exposure to the risk of
changes i n future cash flows due to i nterest rate fluctuations and to lower its borrowing costs when
compared against fixed-rate debt at the time of issuance, the Medical Center entered into six separate
total return swap agreements and one fixed pay interest rate swap agreement related to its Series 1 994
revenue bonds. The total return swap agreements effectively changed 1 00 percent of the Series 1 994
revenue bonds to a variable interest rate obligation. The fixed pay swap agreement effectively
converted $10, 000,000, or approximately 50 percent of the Series 1 994 debt, back to a fixed rate of
3. 05 percent, which is lower than the original effective fixed interest rate of the 1 994 bonds.
The agreements were entered into on September 30, 2004, and expire at various dates through
January 1 , 201 6. The agreements required no initial net cash receipt or payment by the Medical
Center. Under the fixed pay swap agreement, the Medical Center will receive interest from the
counterparty at 67 percent of the London Interbank Offering Rate (LiBOR) and will pay interest to the
counterparty at a fixed rate of 3. 05 percent on an amortizing notional amount of $1 0,000,000.
Under the total return swap agreements, the Medical Center will pay interest equal to the BMA Index plus
24 basis points, and will receive i nterest at rates ranging from 6.00 percent to 6.25 percent on an
amortizing notional amount, initially $20,855,000 At the termination date of each total return swap
agreement, the Medical Center will pay or receive the difference in the fair value of the underlying portion
of the Series 1 994 bonds and the base price of the swap's notional amount.
65
NOTE 22: CITIZENS MEDICAL CENTER - (Continued)
H. Derivative Instruments - (Continued)
Terms - (Continued)
The notional amount of the total return swap and the principal amount of the associated debt were
equal at inception of the swap. Each swap agreement expires prior to the payment of a corresponding
amount of principal on the Series 1 994 bonds. The fixed pay swap's notional amount was not directly
associated to any portion of the Series 1 994 bonds. Under the agreement, the Medical Center pays or
receives the net interest amount monthly, with the monthly settlements included i n interest expense.
Fair Value
As of June 30, 2007, the agreements had an aggregate fair value of $(253,789) as calculated by a
third-party financial advisor. For the fixed pay swap agreement, the fair value was calculated using the
par-value method, i. e. , the fixed rate on the swap was compared with the current fix rates that could be
achieved in the marketplace should the swap be unwound. The fixed-rate component was valued by
discounting the fixed-rate cash flows usi ng the current yield to maturity of a comparable bond. The
variabl e-rate component was assumed to be at par value because the interest rate resets to the market
rate at every reset date. The fair value was then calculated by subtracting the estimated market value
of the fixed component from the established market value of the variable component.
For the total return swaps, the fair value was based on the difference i n the total return base price
( 1 03 percent of the bonds par value) at June 30, 2007, compared to the fair market value of the
Series 1 994 bonds based on current traded value. The fair value of the total return swap agreements
includes the 1 percent premium payment due on January 1 , 2007. No additional premium payments
are due as of June 30, 2007.
I nterest Rate Risk
The total return swaps increase the Medical Center's exposure to interest rate risk. As the BMA index
increases, the Medical Center's net payments on the total return swaps increase.
Credit Risk
The swaps' fair values represent the Medical Center's credit exposure to the counterparty as of
June 30, 2007. Should the counterparty to this transaction fail to perform according to the terms of the
swap agreements, the Medical Center has a maximum possible loss equivalent to the swaps' fair value
at that date. As of June 30, 2007, the Medical Center was exposed to credit risk because the swap had
a negative fair value. The swap counterparty was rated A- by Fitch Ratings, A+ by Standard & Poor's,
and Aa3 by Moody's I nvestor Service as of June 30, 2007.
Basis Risk
The swaps expose the Medical Center to basis risk should the relationshi p between Ll BOR and BMA
rates bonds change i n a manner adverse to the Medical Center. If an adverse change occurs in the
relationship between these rates, the expected cost savings may not be realized.
66
NOTE 22: CITIZENS MEDICAL CENTER · (Continued)
H. Derivative Instruments · (Continued)
Termination Risk
The Medical Center or the counterparty may terminate the swap if the other party fails to perform under
the terms of the contract. If the swap is terminated, the synthetic variable rates under the total return
swap and fixed rate under the fixed pay swap would cease, increasing the net interest cost to the
Medical Center. Also, if the swap has a negative fair value at the time of termination, the Medical
Center would be liable to the counterparty for a payment equal to the swap's then fair value. Either
party may terminate any or all of the total return swaps with advance written notice.
Rollover Risk
The Medical Center is exposed to rollover risk on many of the total return swaps, which mature or may
be terminated prior to the maturity of the Series 1 994 revenue bonds. When these swaps terminate, or
in the case of the termination option, if the counter party exercises its option, the Medical Center will not
realize the synthetic rate offered by the total return swaps on the bonds. In addition, the Medical Center
will be subject to disproportionate interest rate risk subsequent to the last total return swap maturity (at
latest November 2, 201 1 , unl ess earlier terminated by the counterparty) as it is obligated to pay fixed
rates on the remai ni ng outstanding bonds and will also pay fixed rates and receive variable rates on the
interest rate swap through January 2016.
Swap Payments and Associated Debt
Using rates as of June 30, 2007, debt service requirements of the Series 1 994 bonds and net swap
payments, assumi ng current i nterest rates remain the same, for their term are set forth i n the table
shown below. As rates vary, net swap payments will vary.
Series 1 994 Bonds
I nterest Rate
Principal Interest Swap, Net Total
2008 $ 1 , 525,000 $ 1 , 072,436 $ (31 2,446) $ 2, 284,990
2009 1 , 765,000 971 , 871 (265,045) 2, 471, 826
201 0 1 ,865,000 860,003 (246,472) 2,478,531
201 1 1 ,825,000 802, 1 88 (246,472) 2,380,71 6
201 2 1 , 945,000 688,066 (53, 251 ) 2,579, 81 5
201 3·2026 9,065,000 1 ,458,437 1 31 ,41 1 1 0,654,848
$ 1 7,990,
0
@
§
5,853
,00.1.

(992,275) $ 22,850,726
67
NOTE 22: CITIZENS MEDICAL CENTER - (Continued)
I. Self-insured Claims
The Medical Center partially self-insures the cost for its general and professional liability, empl oyee
health care benefits, and workers' compensation. The Texas Tort Claims Act l i mits the Medical
Center's general and professional liability to $1 00,000 per claim and $300,000 per occurrence, with no
annual aggregate. The Medical Center purchases annual stop-loss insurance coverage for all employee
health care benefits and workers' compensation claims. Stop-loss coverage began at $300,000 for
workers compensation claims in 2007. Stop-loss coverage for employee health claims began at
$450,000 during 2007.
Losses from asserted and un asserted claims identified under the Medical Center's incident reporting
system are accrued based on estimates that incorporate the Medical Center's past experience, as well
as other considerations, including the nature of each claim or incident and relevant trend factors.
Management believes that the funds designated by the Medical Center related to self-insured general
and professional liability and the accrued liabilities for all self-insured claims are sufficient to cover any
losses it may incur. I t is reasonably possible that the Medical Center's estimate of losses will change
by a material amount i n the near term.
Activity in the Medical Center's self-insured claims liability accounts during 2007 and 2006 are
summarized as follows:
Balance, beginning of year
Current year claims i ncurred
and changes in estimates for
claims i ncurred in prior years
Claim and expenses paid, net
Balance, end of year
Balance, beginning of year
Current year claims incurred
and changes i n estimates for
claims incurred in prior years
Claim and expenses paid, net
Balance, end of year
Employee
Health Care
Benefits
$ 1 , 045,529
5,274,999
(5,236, 1 94)
l 1, 08,334
Employee
Health Care
Benefits
$ 2, 242, 190
3,998,073
(5,1 94,734)
lJ,j�
68
2007
Workers'
Compensation
$ 697, 531
1 92, 623
(230,894)
659.260
2006
Workers'
Compensation
$ 685,628
366,442
(354,539)
697,531
General and
Professional
Liability
$ 1 , 000,000
$ 1 ,000,000
General and
Professional
Liability
$ 21 0,000
790,000
�,O(D,QOQ
NOTE 22: CITIZENS MEDICAL CENTER - (Continued)
J. Charity Care
In support of its mission, the Medical Center voluntarily provides free care to patients who lack financial
resources and are deemed to be medically indigent. Because the Medical Center does not pursue
collection of amounts determined to qualify as charity care, they are not reported i n net patient service
revenue. I n addition, the Medical Center provides services to other medically indigent patients under
certain government-reimbursed public aid programs. Such programs pay providers amounts which are
less than established charges for the services provided to the recipients and many times the payments
are less than the cost of rendering the services provided.
I n addition to uncompensated charges, the Medical Center also commits significant time and resources
to endeavors and critical services which meet otherwise unfilled community needs. Many of these
activities are sponsored with the knowledge that they will not be self-supporting or financially viable.
Such programs include health screening and assessments, prenatal education and care, community
educational services and various support groups.
K. Related Party Transactions
The County maintains custody of the Medical Center's operating cash accounts and is responsible for
obtaining appropriate collateralization of such accounts. The County issues debt on behalf of the
Medical Center and invests the unadvanced proceeds. The investment income attributable to deposits
of the 1 994 and 1 999 bond funds, net of amounts capitalized, are included i n nonoperating income.
L. Pension Plan
The Medical Center sponsors The Texas Hospital Association Retirement Pl an for Citizens Medical
Center ("the Plan"), an agent mUlti-employer defined benefit pension plan that covers eligible
employees. The Plan is admi nistered by HealthSharelTHA, a wholly owned subsidiary of the Texas
Hospital Association. The Plan's assets are invested as a portion of the total HealthShare/THA
investment trust fund. Amendments to the Plan are made only with the authority of the Board of the
Medical Center. The Plan does not issue a stand-alone financial report. However, an annual actuarial
valuation report is available from the Medical Center or HealthShare/THA. That report may be obtained
by writing HealthShare/THA at P. O. Box 1 5587, Austin, Texas 78761-5587.
All Medical Center employees who work 20 or more hours per week for at least fi ve months duri ng a
year are eligible for the Plan. There is no mi ni mum age requirement for Plan participation.
The Plan provides retirement, death and disability benefits. Additionally, the Pl an provides fully-vested
benefits to terminated employees who have at least five years of vesting service. Employees may retire
(with reduced benefits) at age 60 with five years of vesting service. The monthly benefit at normal
retirement (age 65 plus five years of Plan participation), payable i n a lifetime annuity, ranges from 1 . 75
percent to 3. 25 percent times years of service times average monthly compensation, subject to certain
benefit limits.
Funding Policy
The Board has the sole authority to establish or amend the obligations to contribute to the Plan by
participants or the employer.
Pl an participants are required to contribute at rates ranging from 3.0 percent to 5. 5 percent i n 2007 of
their prior Plan year compensation. The Medical Center makes contributions at an actuarially
determined amount, which equaled 7. 4 percent of participant-covered compensation for 2007 and is
expected to be 5.8 percent of participant-covered compensation for 2008. The costs of administering
the Plan are paid by the Plan and are considered i n the determination of the employer contribution rate.
69
NOTE 22: CITIZENS MEDICAL CENTER - (Continued)
L. Pension Plan - (Continued)
Annual Pension Cost
For the fiscal year ended June 30, 2007, the Medical Center's Annual Pension Cost (APC) was
$1 ,828,350, which was equal to the Medical Center's annual contributions.
The required contributions for 2007 were determined based on the results of actuarial valuations as of
March 1 , 2007, using the aggregate actuarial cost method. The actuarial assumptions included (a) a
7. 75 percent investment rate of return (net of admi nistrative expenses) and (b) projected salary
increases ranging from 5.0 percent to 9.0 percent per year. Both (a) and (b) included an inflation
component of 4.0 percent. The assumptions for 2006 actuarial valuation did not include any
postretirement benefit increases. For the 2007 actuarial valuation, the assumptions included 2 per year
postretirement benefit increases for retirees whose benefit commences on or after March 1 , 2007. The
actuarial valuation of Plan assets was determined usi ng a five-year adjusted market val ue method for
both valuations.
Trend Information
Year Ended
2007
2006
2005
Annual Pension
Cost (APC)
$ 1 , 828,350
1 , 597,392
1 , 31 0,604
Percentage of APC
Contributed
1 30%
1 1 4%
88%
Net Pension
Obligation (Asset)
$ (987, 323)
(446,673)
(225, 315)
There was no separately determined unfunded actuarial accrued liability and no amortization period at
the March 1 , 2007 valuation date due to the actuarial cost method being used.
M. Designated Net Assets
At June 30, 2007 and 2006, unrestricted net assets have been designated by the Medical Center's
Board of Directors for the following purposes:
Capital acquisitions
Self-insured professional liability
Self-insured health care
$
2007
20,235, 1 79
881 ,81 6
1 23,833
$
2006
22,488,795
837,365
31 4,499
Designated net assets remai n under the control of the Board of Directors, which may at its discretion
later use these net assets for other purposes.
N. Contingencies
In the normal course of business, the Medical Center is, from ti me to ti me, subject to allegations that
may or do result i n litigation. Some of these allegations are i n areas not covered by the Medical
Center's self-insurance program (discussed elsewhere in these notes) or by commercial insurance; for
example, allegations regarding employment practices or performance of contracts. The Medical Center
evaluates such allegations by conducting investigations to determine the validity of each potential cl ai m.
Based upon the advice of legal counsel, management records an estimate of the amount of ultimate
expected loss, if any, for each. Events could occur that would cause the estimate of ultimate loss to
differ materially in the near term.
70
Required Suppl ementary I nformation
COUNTY OF VICTORIA, TEXAS
MAJOR GOVERNMENTAL FUND - GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
For the year ended December 31, 2007
Actual Budget
Amounts to GAAP
Original Final Budgetary Differences
Budget Budget Basis Over (Under)
REVENUES
Taxes $ 1 8,681 , 986 $ 1 9, 1 31 ,986 $ 20,306,397 $ (53,668)
Fees of office and user fees 1 , 828, 550 1 , 828,550 1 ,863,856 (5,035)
I ntergovernmental 4, 326, 100 4,585,379 3,666,071 76,830
Fines and forfeitures 1 , 605, 100 1 ,685, 100 1 ,683,454 1 1 ,632
I nvestment income
Interest 600,000 676,041 931 ,044 (38,883)
Licenses and permits 38, 1 00 38, 100 33,401 (566)
Contributions 400 400
Miscellaneous 776,277 791 , 466 800, 1 86 8,338
Total revenues 27,856, 51 3 28,737,022 29,284,409 ( 1 , 352)
EXPENDITURES
Current
General government 1 3, 586,098 1 5,098,020 1 3,574,054 ( 512, 782)
Public safety 1 1 , 1 57, 752 1 1 ,663,41 0 1 0,973,543 ( 1 36,422)
Culture and recreation 1 ,469,933 1 ,4 71 ,250 1 , 438,071 ( 1 , 214)
Public health 1 1 2, 81 9 1 87, 783 1 79,578 9,324
Capital outlay 95,590 94,590
Total expenditures 26, 326,602 28, 516, 053 26,259,836 (641 ,094)
Excess (deficiency) of revenues over
expenditures 1 , 529, 91 1 220,969 3,024,573 639,742
OTHER FINANCING SOURCES (USES)
Sal e of assets
20,000 20,000 48, 1 77 ( 316)
Capital lease issuance
1 76,261 1 76, 261
Transfers i n 277, 500 277, 500 277, 500
Transfers out (1 ,827, 41 1 ) (2,394,839) (2, 321, 772)
Total other financing sources (uses) (1, 529, 91 1 ) (1,921 ,078) (1 , 81 9,834) (316)
Change i n fund balance
( 1 , 700, 1 09) 1 ,204,739 639,426
Fund balance, January 1 9, 1 38, 145 9, 1 38, 1 45 9, 1 38, 145 (2,800,746)
Fund balance, December 31 $ 9, 1 38, 1 45 $ 7,438,036 $ 1 0, 342,884 $ (2, 1 61 ,320)
Explanation of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when pai d.
The accompanying notes to required supplementary information are an integral part of this schedule.
71
Actual
Amounts
GAAP Basis
$ 20,360,065
1 , 868,891
3,589,241
1 , 671 ,822
969,927
33,967
791 ,848
29,285,761
1 4,086,836
1 1 , 1 09,965
1 ,439,285
1 70,254
94,590
26,900,930
2, 384, 831
48, 493
1 76, 261
277,500
(2,321 , 772)
(1 , 81 9, 51 8)
565, 31 3
1 1 ,938,891
$ 1 2, 504,204
COUNTY OF VICTORIA, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMA TlON
December 31, 2007
NOTE 1 : BUDGETARY BASIS OF ACCOUNTING
The County annual l y adopts budgets that are prepared using the cash basis of accounting, which is not
consistent with GAAP. A reconciliation to GAAP basis is provided i n the preceding statement.
72
Combi ni ng and I ndi vi dual Fund Statements and Schedul es
COUNTY OF VICTORIA, TEXAS
ALL NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
December 31, 2007
Total Total Total
Nonmajor Nonmajor Nonmajor
Special Debt Governmental
Revenue Funds Service Funds Funds
ASSETS
Current assets
Cash and cash equivalents $ 3, 757, 272 $ 638, 41 1 $ 4,395,683
Receivables (net) 1 , 741 , 847 1 , 21 8, 689 2,960, 536
Due from other governments 639,270 639, 270
Due from other funds
238 238
Total assets $
¬ +·
6, 1 38,627 $ 1 , 857, 1 00
t
7, 995, 727
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable
$ 220,990 $ $ 220,990
Accrued expenditures 1 88,242 1 88, 242
Due to other funds 286, 317 286, 31 7
Deferred revenue 2, 450, 283 1 , 739,555 4, 1 89,838
Total l iabil ities 3, 1 45, 832 1 , 739,555 4, 885, 387
Fund balances
Unreserved, undesignated reported in:
Special revenue funds 2, 992, 795 2, 992, 795
Debt service funds 1 1 7,545 1 1 7, 545
Total fund balances 2,992, 795 1 1 7,545 3, 1 1 0,340
Total l i abi l ities and fund balances $ 6, 1 38,627 $ 1 , 857,1_00 $ 7, 995,]27
73
COUNTY OF VICTORIA, TEXAS
ALL NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES
For the year ended December 31. 2007
Total Total Total
Nonmajor Nonmajor Nonmajor
Special Debt Governmental
Revenue Funds Service Funds Funds
REVENUES
Taxes
$ 2, 247, 794 $ 1 , 61 0, 280 $ 3, 858, 074
Fees of office and user fees 998, 270 998, 270
I ntergovernmental 5,396,244 5, 396, 244
Fi nes and forfeitures 70, 421 70, 421
I nvestment income 225,41 6 1 8,425 243, 841
Contributions 1 1 , 51 0 1 1 , 51 0
Miscellaneous 90, 380 90,380
Total revenues 9, 040, 035 1 ,628,705 1 0,668,740
EXPENDITURES
Current
General government
1 , 683,669 1 , 683, 669
Public safety
296,624 296,624
Hi ghways and streets
4, 048, 835 4, 048, 835
Culture and recreation
21 , 351 21 , 351
Public health
3, 982,425 3, 982, 425
Debt service
Principal retirement
1 , 300,000 1 , 300,000
I nterest and fiscal charges 337,967 337, 967
Total expenditures 1 0, 032, 904 1 ,637, 967 1 1 , 670, 871
Excess (deficiency) of revenues
over expenditures (992,869) (9,262) (1 , 002, 1 31 )
OTHER FINANCING SOURCES (USES)
Sal e of assets
1 6,630 1 6, 630
Capital l ease proceeds
269,834 269,834
Transfers in
1 , 982,783 1 , 982, 783
Transfers out (586,637) (586, 637)
Total other financing sources (uses) 1 , 682, 61 0 1 ,682, 610
Change i n fund balances
689, 741 (9, 262) 680, 479
Fund balances at begi nni ng of year 2, 303, 054 1 26, 807 2, 429, 861
Fund balances at end of year
$ 2, 992, 795 $ 1 1 7,545 $ 3, 1 1 0, 340
74
NON MAJOR SPECIAL REVENUE FUNDS
Speci al Revenue Funds are used to account for the proceeds of specific revenue sources (other than
special assessments, private purpose trusts, or major capital projects) that are legally restricted to
expenditures for specific purposes. The County's Special Revenue Funds consists of Road and Bridge
and other funds.
ROAD AND BRI DGE FUNDS
The Road and Bridge Funds are constitutional funds established to account for current funds used for
the purpose of constructing and maintaining roads and bridges. The principal sources of revenues for
these funds are ad valorem taxes and intergovernmental revenues.
The County i s divided into four precincts, each of which i s admi nistered by one of the four County
Commissioners. Each precinct has a separate budget for construction and maintenance of roads and
bridges i n the precinct. The Road and Bridge Funds consists of the followi ng:
Road and Bridge Precinct Funds - Accounts for costs associated wi th the construction and
maintenance of roads and bridges i n the four Commissioners' precincts. Revenues are derived
primarily from ad valorem taxes, vehicle registration fees, and interest earnings.
Lateral Road Precinct Funds Also used to account for costs associated with the construction
and mai ntenance of roads and bridges i n the four Commissioners' precincts. However, the
primary source of revenue i n these funds is grant monies received by the County (and interest
earned thereon) which i s designated to be spent on roads and bridges.
OTHER SPECIAL REVENUE FUNDS
The Other Special Revenue Funds consists of various funds that account for particular functions and
activities as described below:
Records Management Fund - Accounts for monies received by the County under Local
Government Code Section 1 1 8. 01 1 . Expenditures of the fund are made to manage and preserve
documents filed i n the office of the County Clerk. Revenues come from filing charges assessed
by the County Clerk.
Courthouse Security Fund Accounts for funds received from various sources designated to be
used to enhance security in the County Courthouse.
Justice Court Buil ding Security Fund Accounts for funds received that are designated to be
used to enhance security in buildings that house justice court other than the County Courthouse.
District Clerk Records Management Fund Accounts for monies received by the County from
filing charges assessed by the District Clerk under Local Government Code Section 51 . 31 7.
Expenditures of the fund are made to manage and preserve documents filed i n the office of the
District Clerk.
Appellate Judicial System Fund Accounts for fees received by the County for court costs on
civil suits filed with the County Court, County Court at Law, Probate Court, or District Court under
Section 22. 21 4 and 22. 2141 of the Texas Government Code. The purpose of the fee is to
reimburse Nueces County for this County's share of supplemental salaries, automobile
allowances and fringe benefits for the Justices of the 1 3
1h
Court of Appeals.
FEMA Hazard Mitigation ( 1 624-020) Fund - Accounts for funds received from the Federal
Emergency Management Agency for the major disaster declaration FEMA 1 624-020 for the
acquisition of one parcel of l and and the creation of a detention pond to temporarily hol d storm
water run-off.
75
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
OTHER SPECIAL REVENUE FUNDS (Continued)
FEMA Hazard Mitigation ( 1 709 DR TX) Fund - Accounts for funds received from the Federal
Emergency Management Agency for the disaster declaration FEMA 1 709 DR TX to repair
damages and reimburse costs associated with floodi ng.
Juvenile Probation Fund - Records monies received by the County from the Texas Juvenile
Probation Commission as well as operating transfers from the General Fund of the County.
These monies are spent to provide various services related to the operation of the County
Juvenile Probation Department.
Drug Courts Program Fund - Accounts for the revenues/expenditures related to operations of
the state mandated programs for monitoring and rehabilitating violators of state drug laws.
Federal Foster Care Grant Fund - Accounts for the funds received from the Admi nistration for
Children and Families under the Department of Health and Human Services. The purpose of the
grant is to provide funds for admi nistrative and training costs, and equipment needs as it relates
to juvenile probation activities.
Juvenile Delinquency Prevention Fund - Accounts for funds received as a cost of court fee for
offenses committed under Section 28.08, Penal Code. These funds are admi nistered by or under
the direction of Commissioners' Court and are used to repair damage, provide educational and
intervention programs, and provide public rewards.
Justice Technology Fund - Accounts for funds received from a defendant convicted of a
misdemeanor offense in a Justice Court, pursuant to Article 1 02. 01 73, Code of Criminal
Procedures. These funds are admi nistered by or under the direction of the Commissioners' Court
and are used to finance the technological enhancements of the Justice Courts.
Family Protection Fee Fund - Accounts for funds received from individuals filing suit for
dissolution of a marriage. These funds are admi nistered by or under the direction of the
Commissioners' Court and are to be distributed to non-profit organizations in Victoria County.
CDA Processing Fee Fund - Accounts for fees earned by the office of the Cri mi nal District
Attorney from the collection of " hot" checks returned to County merchants. Expenditures of the
fund include normal operating costs of the District Attorney's Office.
CDA Victims Assistance Grant Fund - Accounts for the funds received from the U. S.
Department of Justice and admi nistered by the Office for Victims of Crime. The purpose of the
grant is to stimUlate State participation and support for victim service programs and promote
victim cooperation with law enforcement, in addition to the di rect benefit to crime victims with
Federal assistance monies.
Sherif Victims Assistance Grant Fund - Accounts for the funds received from the Office of the
Attorney General to provide funding for a full-time Crime Victim Liaison to work i n the Sheriff's
Department and the Victoria Police Department.
Sherif Victims Discretionary Assistance Grant Fund - Account for funds received from the
Office of the Attorney General to provide needed victim services to the residents of Bloomington
by placing a Victim Outreach Officer i n the area. This would insure that victimslresidents have
access to Victoria County Sheriff's Office Services.
76
NON MAJOR SPECIAL REVENUE FUNDS (Continued)
OTHER SPECIAL REVENUE FUNDS (Continued)
4-H Activity Center Fund Appropriation from Victoria County to help fund the shooting sports
bui l di ng for the Victoria County 4-H Department of the Texas Agricultural Extension Service.
Operation Border Star Fund Accounts for funds received from the Texas Department of Public
Safety to organize and deploy local government law enforcement personnel and equipment to
participate i n a project to enhance border security al ong the Texas-Mexico border by
supplementing the border security efforts of federal agencies.
DPS Operation Wrangler Grant Fund - Accounts for funds received from the Texas Department
of Public Safety to organize and deploy local government law enforcement personnel and
equipment to participate i n a project to enhance border security along the Texas-Mexico border
by supplementing the border security efforts of federal agencies.
SCAAP Award Fund - Accounts for funds received from the Bureau of Justice Assistance to
assist localities with the costs for incarcerating undocumented criminal aliens who have at least
one felony or two misdemeanor convictions for violations of state or local law and who are
incarcerated for at least 4 consecutive days.
Byrne Justice Assistance Grant Fund Accounts for funds received from the City of Victoria for
the purchase of equipment for the Victoria County Sheriff's Office.
TXDOT Cli ck It or Ticket Grant Fund - Accounts for funds received from the Texas Department
of Transportation to increase occupant restraint use in all passenger vehicles and trucks by
conducting an intense occupant protection enforcement and public information and education
effort during the Memorial Day holiday period.
TCDP WCID No. 2 Placedo Grant Fund Accounts for funds received from the Office of Rural
and Community Affairs on behalf of the Victoria County Water Control and I mprovement District
No. 2 Placedo. Grant funds are to be used for capital i mprovements to the existing water system.
Community Emergency Response Training Fund - Accounts for funds received from DOW
Chemicals to identify and train volunteers that will provide assistance to citizens in Victoria
County and surrounding counties i n response to disasters.
Homeland Security Fund - Accounts for funds received from the Department of Homeland
Security to provide law enforcement and emergency response to communities with enhanced
capabilities for detecting, deterring, disrupting, preventing and responding to potential threats of
manmade, natural disasters and acts of terrorism.
Sherif's Special Purpose Fund Accounts for the use of drug related monies awarded to the
Sheriff's Department via court proceedi ngs.
CDA Contraband Forfeiture Fund - Accounts for the use of drug related monies awarded to the
Cri mi nal District Attorney vi a court proceedi ngs post October 1 7, 1 989.
77
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
OTHER SPECIAL REVENUE FUNDS (Continued)
CDA Department of Treasury Federal Forfeiture Fund - Accounts for funds received from the
U. S. Department of Justice. The purpose of this program is for law enforcement; to deter crime
by depriving criminals of the profits and proceeds of their illegal activities and to weaken criminal
enterprises by removing the instrumentalities of crime.
VISD Juvenile Probation Officer Fund Accounts for funds received from Victoria I ndependent
School District (VISD) to employ four juvenile probation officers that are housed and working on
VISD campuses during the 2007-2008 school year.
Employee Benefit Fund - Accounts for funds received from commissions from vending
machines located on County property, donations, and interest earnings. These funds are used to
provide special benefits for employees.
Election Administrator's Special Fund Records the various fees received designated to be
used by the County Election Administrator in coordinating various County elections.
Hel p America Vote Act Grant Fund - Accounts for funds received from the U. S. Elections
Assistance Commission passed through the Texas Secretary of State - Elections Division. The
purpose of thi s grant fund is to provide reimbursement to Victoria County for expenses incurred i n
upgrading voting systems to compl y wi th new federal standards. Also, thi s grant provides
reimbursement for expenses incurred as a result of attending professional elections training such
as seminars and conferences.
Elections Chapter 1 9 Fund Accounts for funds received from the Secretary of State to
increase the number of registered voters in the state, maintain and report an accurate list of the
number of registered voters, and/or increase the efficiency of the voter registration office through
the use of technological equipment.
Tax Assessor-Collector Special Fund - Accounts for interest earnings on the Special Inventory
Escrow Account. These funds are the sole property of the collector and are used to defray the
cost of admi nistration of the prepayment procedure established by Texas Property Tax Code
Section 23, 1 22.
Historical Commission Fund - Accounts for moni es received through various promotional
activities, These funds are expended for the purpose of preparing the historical heritage of the
County of Victoria,
Law Library Fund Accounts for expenditures related to the establishment and maintenance of
a professional library for members of the Texas Bar Association. Revenues are derived from fees
assessed on civil cases filed in County and District Courts,
Health Department Fund Accounts for revenues and expenditures associated with services
provided to the public by the nursing division, special services division, and the environmental
services division located at the Victoria City/County Heath Department.
WIC Program Fund - Accounts for funds received from the Texas Department of State Health
Services for Victoria County's participation i n the WIC Card Program, These funds are used to
determine eligibility of applicants through assessment of their income, residence and nutritional
status and provide nutrition education and counseling to eligible participants,
Law Enforcement Officer Education Fund - Accounts for funds received from the State of
Texas, These funds are used for continuing education of persons licensed under Government
Code Chapter 415 or to provide necessary trai ni ng to full-time law enforcement support
personnel .
78
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December. 31, 2007
Other
Road and Special
Bridge Revenue Total
ASSETS
Cash and cash equivalents $ 2, 71 6,433 $ 1 , 040,839 $ 3,757,272
Receivables (net)
Ad valorem 1 , 71 5,933 1 , 71 5,933
Other 1 7, 1 07 8, 807 25, 914
Due from other governments 639,270 639,270
Due from other funds 238 238
Total assets $ 4,449, 47: $ . 1 ,689, 1 54 $ 6, 1 38,627
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $ 1 20, 516 $ 1 00,474 $ 220,990
Accrued expenditures 48, 872 1 39,370 1 88,242
Due to other funds 1 8,729 267, 588 286, 31 7
Deferred revenue 2,450,283 2,450,283
Total l iabi l ities 2,638,400 507,432 3, 1 45,832
Fund balance
Unreserved, undesignated 1 ,81 1 , 073 1 , 1 81 ,722 2,992,795
Total l i abi l ities and fund balance $ 4,449,473 $ 1 , 689, 154 $ 6, 1 38,627
79
COUNTY OF VI CTORI A, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
COMBINING STA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
For the year ended December 31, 2007
Other
Road and Special
Bridge Revenue Total
REVENUES
Taxes $ 2,247,794 $ $ 2, 247, 794
Fees of office and user fees 998, 270 998, 270
I ntergovernmental 1 , 806,686 3, 597, 21 3 5,403,899
Fines and forfeitures 70,421 70,421
I nvestment income
I nterest 1 56,959 68,457 225, 416
Contributions 1 1 , 51 0 1 1 , 51 0
Miscellaneous 59,352 31 ,028 90,380
Total revenues 4, 270, 791 4, 776,899 9, 047,690
EXPENDITURES
Current
General government 1 , 683,669 1 , 683,669
Public safety 304,279 304,279
Highways and streets 4, 048,835 4,048, 835
Culture and recreation 21 , 351 21 , 351
Public health 3,982,425 3,982, 425
Total expenditures 4,048,835 5, 991, 724 1 0,040,559
Excess (deficiency) of revenues
over expenditures 221 ,956 ( 1 , 21 4,825) (992,869)
OTHER FINANCING SOURCES (USES)
Sale of assets
1 6,630 1 6,630
Capital lease issuance
269,834 269,834
Transfers in
266,294 1 , 71 6,489 1 , 982, 783
Transfers out (230,000) (356,637) (586,637)
Total other financing sources (uses) 322,758 1 , 359,852 1 , 682, 610
Change i n fund balance
544, 714 1 45, 027 689, 741
Fund balance, January 1 1 , 266,359 1 , 036,695 2,303,054
Fund balance, December 31 $ 1 ,81 1 ,073 $ 1 , 1 81 , 722 $ 2,992,795
80
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
ROAD AND BRIDGE FUNDS
COMBINING BALANCE SHEET
December 31, 2007
Road and Bridge Funds
Pc\. 1 Pc\. 2 Pc\. 3 Pc\. 4
ASSETS
Cash and cash equivalents $ 748, 378 $ 594,831 $ 673,809 $ 61 1 ,922
Receivables (net)
Ad valorem 472, 221 386, 01 9 385,842 471 ,851
Other 4, 31 8 3,907 4,364 4, 51 8
T alai assels $ 1,224, 91 7 $ 984,757 $ 1 , 064, 01 5 $ 1 , 088, 291
LIABILITIES AND FUND BALANCE
Li abi li ties
Accounts payable $ 24, 1 1 5 $ 61 , 765 $ 1 5,552 $ 1 9,084
Accrued expenditures 1 2, 81 6 1 0, 754 1 2, 794 1 2,508
Due to other funds 4, 91 9 4, 1 04 4, 748 4,958
Deferred revenue 674, 1 67 551 , 248 551 , 071 673, 797
Total li abi li ti es 71 6, 01 7 627, 871 584, 1 65 71 0, 347
Fund balance
Unreserved, undesignated 508,900 356,886 479,850 377,944
Tolal liabil ities and fund balance $ 1 , 224, 917 $ 984,757 $ 1 ,064,01 5 $ 1 , 088,291
81
Lateral Road Funds
Pct. 1 Pet. 2 Pet. 3 Pct. 4 Total
$ 36,060 $ 25,844 $ 9,085 $ 1 6,504 $ 2, 71 6,433
1 , 71 5,933
1 7, 1 07
$ 36,060 $ 25,844 $ 9,085 $ 1 6,504 $ 4,449,473
$ $ $ $ $ 1 20, 51 6
48,872
1 8,729
2,450,283
2,638,400
36,060 25, 844 9,085 1 6,504 1 ,81 1 , 073
$ 36,060 $ 25,844 $ 9,085 $ 1 6,504 $ 4,449,473
82
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
ROAD AND BRIDGE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
For the year ended December 31, 2007
Road and Bridge Funds
Pet. 1 Pet. 2 Pct. 3 Pct. 4
REVENUES
Taxes $ 61 8, 1 42 $ 505,754 $ 505,754 $ 618, 1 44
I ntergovernmental 452,395 432,737 434,237 452,395
Investment income
Interest 43, 71 5 33,463 45,474 30, 61 7
Miscellaneous 1 , 275 6, 677 1 6, 727 34,673
Total revenues
1 , 1 1 5,527 978, 631 1 , 002, 192 1 , 1 35,829
EXPENDITURES
Current
Highways and streets 951 ,006 904, 816 91 7,859 1 , 262,31 9
Excess (deficiency) of revenues
over expenditures 1 64, 521 73, 81 5 84,333 (1 26,490)
OTHER FINANCING SOURCES (USES)
Sale of assets 9, 534 4,382 2, 714
Capital lease proceeds 88, 203 181 ,631
Transfers i n 1 1 3, 381 1 52, 91 3
Transfers out (50,000) (50,000) (80, 000) (50,000)
Total other financing sources (uses) 47, 737 67, 763 (80, 000) 287,258
Change i n fund balance 21 2,258 1 41 , 578 4,333 1 60, 768
Fund bal ance, January 1 296,642 21 5,308 475, 51 7 21 7, 1 76
Fund balance, December 31 $ 508,900 $ 356,886 $ 479,850 $ 377,944
83
Lateral Road Funds
Pet. 1 Pet. 2 Pet. 3 Pet. 4 Total
$ $ $ $ $ 2, 247, 794
8,730 8, 731 8,731 8,730 1 , 806,686
1 , 607 1 , 01 2 101 970 1 56,959
59,352
1 0, 337 9,743 8,832 9,700 4, 270, 791
2, 371 1 0,464 4,048,835
7,966 9, 743 8, 832 (764) 221 , 956
1 6,630
269,834
266,294
(230, 000)
322,758
7, 966 9, 743 8,832 (764) 544, 714
28,094 1 6, 1 01 253 1 7, 268 1 , 266,359
$ 36,060 $ 25,844 $ 9,085 $ 1 6,504 $ 1 , 81 1 , 073
84
COUNTY OF VI CTORI A, TEXS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
OTHER SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 2007
Justice
Court
Records Courthouse Building
Mgmt. Security Securit)
ASSETS
Cash and cash equivalents $ 1 21 , 793 $ 48, 593 $ 1 5, 1 75
Receivables (net)
Other 460 275 41
Due from other governments
Due from other funds
Total assets $ 1 22, 253 $ 48,868 $ 1 5, 21 6
¬�++
LIABILITIES AND FUND
BALANCE
Liabilities
Accounts payable $ 3,625 $ $
Accrued expenditures 1 , 340
Due to other funds 1 9
Total li abi lities 4, 984
Fund balance
Unreserved, undesignated 1 1 7, 269 48,868 1 5, 21 6
Total liabilities and fund
balance
$ 1 22, 253 $ 48,868 $ 1 5, 21 6
85
District FEMA
Clerk Appellate Hazard
Records Judicial Mitigation
Mgmt. System 1 624-020
$ 4, 692 $ 5,744 $ 1 , 348
20 30
$ 4, 71 � $ 5, 774 $ 1 , 348
$ $ 5,744 $
5, 744
4, 71 2 30 1 , 348
$ 4, 71 2 $ 5,774 $ 1 , 348
FEMA
Hazard Drug Federal Juvenile Family CDA
Mitigation Juvenile Courts Foster Care Delinquency Justice Protection Processing
1 709 DR TX Probation Program Grant Prevention Technology Fee Fee
$ $ 1 21 , 821 $ 877 $
250,959 $ 96 $ 43,084 $ 20,220 $ 1 1 7,064
1 62 30 2,808
21 ,277 93,229
$ $ 1 43,098 $ 877 $ 344, 1 88 $ 96
$ 43,246 $ 20,250 $ 1 1 9,872
$ $ 3, 31 3 $ $ 1 9, 1 49 $ $ 660 $ $ 6,590
1 3, 21 8 7, 1 1 2 2,206
1 54 97 263
1 6, 685 26,358 660 9,059
1 26,41 3 877 31 7,830 96 42,586 20,250 1 1 0, 81 3
$
¬
$ 1 43,098 $ 877 $ 344, 1 88 $ 96
$ 43,246 $ 20,250 $ 1 1 9,872
(continued)
86
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
OTHER SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 2007
Sheriff
CDA Sheriff Victims
Victims Victims Discretionary 4-H Operation TXDOT
Assistance Assistance Assistance Activity Border Click IV
Grant Grant Grant Center Star Ticket
ASSETS
Cash and cash equivalents
$ $ 1 , 631 $ $ 32,462 $ $
Receivables (net)
Other
Due from other governments 1 0,454 1 0,864 52, 361
Due from other funds 238
Total assets $ 1 0,692 $ 1 2,495 $ $ 32,462 $ 52,361 $
LIABILITIES AND FUND
BALANCE
Liabilities
Accounts payable
$ 44 $ 37 $ $ 366 $ $
Accrued expenditures 1 , 1 26 1 , 067 45,956
Due to other funds 9,522 1 67 6,405
Total liabilities 1 0,692 1 , 271 366 52, 361
Fund balance
Unreserved, undesignated 1 1 ,224 32,096
Total liabilities and fund
balance
$ 1 0,692 $
}2,495 $
+
$ 32,462 $ 52, 361 $
87
Community
DPS Byrne Emergency
Operation SCAAP JAG TCDP Response
Wrangler Award Program Grant Training
$ $ $ 7, 606 $ $ 1 0,000 $
1 6,204
$ $ 1 6,204 $ 7, 606 $ $ 1 0,000 $
$ $ $ $ $ $
1 6,204 7,606 1 0,000
,;
$
__ �
¯
$ 1 6, 204
$ 7, 606
",
$
___
¯
$ 1 0,000 $
88
Homeland
Security
$
2, 1 04
2, 1 04 $
2, 1 04 $
2, 1 04
2, 1 04 $
Sheriffs CDA
Special Contraband
Purpose Forfeiture
37,746 $ 58,584
37,746 $ 58, 5?�
88 $ 39
88 39
37,658 58,545
37,7 46
"
$

5
;
8
.
, 5
;
8
.
4
(continued)
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
OTHER SPECIAL REVENUE FUNDS
COMBINING BALANCE SI
-
IEET
December 31, 2007
CDA VI SD
Dept. of Treas, Juvenile
Federal Probation
Forfeiture Officer
ASSETS
Cash and cash equivalents $ $ $
Receivables (net)
Other
Due from other governments 1 5, 961
Due from other funds
Total assets $ $ 1 5,961 $
LIABILITIES AND FUND
BALANCE
Liabilities
Accounts payable $ $ 220 $
Accrued expenditures 3,597
Due to other funds 1 2, 1 44
Total l iabil ities 1 5, 961
Fund balance
Unreserved, undesignated
Total l i abi l ities and fund
balance
$
m
$ 1 5, 961 $
¬¬¬
89
Hel p
Election America
Employee Admin Vote Act
Benefit Special Grant
4,692 $ 2, 705 $
563 1 ,932
1 00
5, 255 $ 4, 637 $ 1 00
507 $ 90 $
23 1 00
507 1 1 3 1 00
4, 748 4, 524
5, 255 $ 4,637 $ 1 00
Elections
Chapter 1 9
$
2, 510
$
550
1 , 960
2, 51 0
$ 2, 510
Tax
Assessor-
Collector Historical
Special Commission
Law
Library
Health
Department
$
79, 551 $ 1 2, 841 $ 26, 1 96 $ 350 $
382
246,572
WIC
Program
1 69,738
LEOSE
$ 1 5,009
1 2,841 $ 26,578 $ 246,922 $ 1 69,738 $ 1 5,009
$ $ 67 $ 4,367 $ 47,578 $ 5, 561 $ 325
49,392 1 3,806
98,503 1 38, 231
67 4,367 1 95,473 1 57,598 325
79, 551 1 2,774 22, 21 1 51 ,449 1 2, 1 40 1 4,684
$ 79, 551 $ 1 2,841 $ 26,578 $ 246,922 $ 1 69,738 $ 1 t,009
90
Total
$ 1 ,040,839
8,807
639,270
238
$ 1 , 689, 154
$ 1 00,474
1 39,370
267,588
507,432
1 , 1 81 ,722
$ 1 ,6?9, 1 54
(concluded)
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
OTHER SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
For tile year ended December 31, 2007
Justice District
Court Clerk Appellate
Records Courthouse Building Records Judicial
Mgmt. Security Security Mgmt. System
REVENUES
Fees of office and user fees $ 91 , 491 $ 62, 286 $ 9,622 $ 5,756 $
5, 750
Intergovernmental
Fines and forfeitures
Investment income
Interest 8,302 2,023 684 203
Contributions
Miscellaneous
Total revenues 99,793 64, 309 1 0, 306 5,959 5, 750
EXPENDITURES
Current
General government 1 46,332 7, 871 3, 81 9 4,930 5,744
Public safety
Culture and recreation
Public health
Total expenditures 1 46, 332 7, 871 3, 81 9 4, 930 5,744
Excess (deficiency) of revenues
over expenditures (46, 539) 56,438 6, 487 1 , 029 6
OTHER FINANCING SOURCES
(USES)
Transfers i n
Transfers out (47,500)
Total other financing sources
(uses) (47, 500)
Change in fund balance (46,539) 8,938 6,487 1 , 029 6
Fund balance, January 1 1 63,808 39,930 8, 729 3,683 24
Fund balance, December 31 $ 1 1 7,269 $ 48,868 $ 1 5, 216
$ 4, 71 2 $ 30
91
FEMA
Hazard
Mitigation
1 624-020
$
78,352
78, 352
1 07,004
1 07,004
(28, 652)
30,000
30,000
1 , 348
$ 1 , 348
FEMA
Hazard Drug Federal Juvenile Family CDA
Mitigation Juvenile Courts Foster Care Delinquency Justice Protection Processing
1 709 DR TX Probation Program Grant Prevention Technology Fee Fee
$ $ $ 871 $ $ $
39,544
$
6,030 $
1 43,700
266,294 635,259 280,595
5, 450 6 1 5,928 5 2, 143 6, 51 5
7, 1 61 7,464
266,294 647,870 877 296,523 5 41 ,687 6,030 1 57, 679
602,254 357, 418 38, 020 1 34,624
602,254 357, 418 38,020 1 34,624
266,294 45,61 6 877 (60,895) 5 3,667 6,030 23,055
(266,294) (1 2,843)
(266, 294) ( 1 2,843)
45, 61 6 877 (60,895) 5 3,667 6,030 1 0, 21 2
80,797 378,725 91 38, 919 1 4,220 1 00, 601
$ $ 1 26,41 3 $ 877 $ 31 7,830 $ 96 $ 42,58?
$
20,250 $ 1 1 0, 81 3
(continued)
92
COUNTY OF VI CTORI A, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
OTHER SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
For the year ended December 31, 2007
Sheriff
CDA Sheriff Victims
Victims Victims Discretionary 4-H Operation TXDOT
Assistance Assistance Assistance Activity Border Click IV
Grant Grant Grant Center Star Ticket
REVENUES
Fees of office and user fees $ $ $ $ $ $
Intergovernmental 38, 1 36 39,252 32,625 52,361 7,655
Fines and forfeitures
Investment income
Interest 2,422
Contributions 4,200
Miscellaneous
Total revenues 38, 1 36 39,252 32,625 6,622 52,361 7, 655
EXPENDITURES
Current
General government 50,979 47,446 32,625
Public safety 52,361 7,655
Culture and recreation 1 7,906
Public health
Total expenditures 50,979 47,446 32,625 1 7,906 52,361 7,655
Excess (deficiency) of revenues
over expenditures ( 1 2,843) (8, 1 94) ( 1 1 ,284)
OTHER FINANCING SOURCES
(USES)
Transfers i n 1 2,843 1 3,724
Transfers out
Total other financing sources
(uses) 1 2,843 1 3,724
Change i n fund balance 5,530 ( 1 1 ,284)
Fund balance, January 1 5,694 43,380
Fund balance, December 31 $ $ 1 1 ,224
$ $ 32,096 $ $
93
DPS
Operation SCAAP
Wrangler Award
$ $ $
1 6,285 1 6,204
1 6, 285 1 6, 204
1 6,285
1 6, 285
1 6, 204
1 6, 204
$ $ 1 6, 204 $
Byrne
JAG TCDP
Program Grant
$
384
384
384
1 ,050
1 , 050 384
(1 ,050)
( 1 ,050)
8,656
7,606
��
$
$
94
Community
Emergency
Response Homeland
Training Security
$ $
48,066
1 0,000
1 0,000 48,066
48,066
48,066
1 0,000
1 0,000
1 0,000 �� $
Sherifs
Special
Purpose
1 9, 834
1 , 801
21 ,635
8,384
8,384
1 3, 251
1 3, 251
24,407
CDA
Contraband
$
Forfeiture
50,587
2,641
53,228
24,61 2
24, 61 2
28, 61 6
28,61 6
29,929
37,658 $
58,545
( continued)
COUNTY OF VI CTORI A, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
OTHER SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
For the year ended December 31, 2007
CDA VISD Help
Dept. of Treas. Juvenile Election America
Federal Probation Employee Admi n. Vote Act
Forfeiture Officer Benefit Special Grant
REVENUES
Fees of office and user fees
$ $ $ $ 1 8, 1 36 $
I ntergovernmental 1 57, 453 6,348
Fines and forfeitures
I nvestment income
Interest 51 318 404
Contributions 7, 310
Miscellaneous
2,444
Total revenues 51 1 57, 453 1 0, 072 1 8,540 6,348
EXPENDITURES
Current
General government 6,090 1 1 ,236 42, 688 6,348
Public safety 1 57, 453
Culture and recreation
Public health
Total expenditures 6,090 1 57, 453 1 1 , 236 42,688 6,348
Excess (deficiency) of revenues
over expenditures (6,039) ( 1 , 1 64) (24, 148)
OTHER FINANCI NG SOURCES
(USES)
Transfers in
1 2,989
Transfers out
Total other financing sources
(uses)
1 2,989
Change in fund balance
(6,039) ( 1 , 1 64) ( 1 1 , 1 59)
Fund bal ance, January 1
6,039 5, 91 2 1 5,683
Fund balance, December 31
$ $ $ 4, 748 $ 4, 524
$
95
Elections
Chapter 1 9
$ 5,458
5, 458
5,458
5, 458
$
Tax
Assessor-
Collector Historical Law Health WIC
Special Commission Library Department Pro9ram LEOSE Total
$ $ $ 67,245 $ 542,381 $ $ $
998,270
1 , 1 37,947 770, 1 05 1 3,892 3,597, 21 3
70,421
1 7, 530 758 1 , 273 68,457
1 1 , 510
944 464 2, 551 31 ,028
1 8,474 1 , 222 68, 51 8 1 , 682,879 770, 1 05 1 3,892 4, 776,899
6, 036 41 , 751 1 , 683,669
1 3, 025 304,279
3,445 21 , 351
3, 21 9, 1 69 763,256 3,982,425
6,036 3,445 41 , 751 3, 21 9, 1 69 763,256 1 3, 025 5, 991 ,724
1 2,438 (2, 223) 26, 767 (1 , 536,290) 6,849 867 (1, 21 4, 825)
3, 000 1 , 643,933 1 , 716,489
(30,000) (356,637)
3,000 (30,000) 1 ,643,933 1 , 359,852
1 2,438 777 (3, 233) 1 07,643 6,849 867 1 45, 027
67, 1 1 3 1 1 , 997 25, 444 (56, 1 94) 5, 291 1 3, 817 1 , 036,695
$ 79, 551
$ 1 2, 774_ $ 22, 21 1 $ 51 ,449
$ 1 2, 1 40 $ 1 4,684 $ 1 , 1 81 , 722
(concluded)
96
NONMAJOR DEBT SERVI CE FUNDS
Debt Service Funds are used to account for the accumulation of resources for and the payment of general
long-term debt principal, interest and related costs.
97
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 2007
Courthouse Bridge
Road Jai l Restoration Street
Bonds Bonds Bonds Annex
Sinking Si nking Sinking Sinking Total
ASSETS
Cash and cash equivalents $ 1 39,022 $ 1 74, 788 $
1 27,233
$
1 97,368 $ 638, 41 1
Receivables (net)
Ad valorem 264,660 350, 416 240,608 363,005 1 , 21 8,689
Total assets $
403,682_ $ 525,204 $ 367,841 $ 560,373 t1 , 857, 1 00
.-
LIABILITIES AND FUND BALANCE
Liabilities
Deferred revenue $ 378,428 $ 495, 71 1 $ 344,782
$ 520,634 $ 1 , 739,555
Total liabilities 378,428 495, 71 1 344,782 520,634 1 , 739,555
Fund balance
Reserved - debt service 25,254 29,493 23,059 39,739 1 1 7, 545
Total l i abi l ities and fund balance $ 403,682 $ 525,204
$
367,841
$ 560, 373 $ ], 857, 1 00
98
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
For the year ended December 31, 2007
Courthouse Bridge
Road Jail Restoration Street
Bonds Bonds Bonds Annex
Sinking Sinking Si nki ng Si nking Total
REVENUES
Taxes $ 31 4, 583 $ 463, 041 $ 331 , 381 $
501 , 275 $ 1 , 61 0,280
Investment income
Interest 3,904 4,068 3,825 6,628 1 8,425
Total revenues
31 8,487 467, 1 09 335,206 507,903 1 ,628, 705
EXPENDITURES
Debt service
Principal retirement 280,000 430,000 250,000 340,000 1 , 300,000
Interest and fiscal charges 64,035 29, 81 1 81 ,893 1 62, 228 337, 967
Total expenditures 344,035 459, 81 1 331 , 893 502,228 1 ,637, 967
Change i n fund balance (25,548) 7,298 3, 31 3 5, 675 (9, 262)
Fund balance, January 1 50,802 22, 1 95 1 9, 746 34,064 1 26, 807
Fund balance, December 31 $ 25, 2�4 $ 29,493 $ 23,059
$
39,739
$ 1 1 7,545
99
COUNTY OF VICTORIA, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Variance
Original Final Budgetary Positive
Budget BUdget Basis (Negative)
REVENUES
Taxes
Ad valorem
Current $ 1 2, 376,986 $
12, 376,986 $ 1 2, 572,21 6
$
1 95,230
Delinquent 300,000 300,000 279,945 (20,055)
Penalty and interest 1 30,000 1 30,000 1 36, 164 6, 1 64
Sales and use 5,875,000 6,325,000 7, 318,072 993,072
Total taxes 1 8,681 , 986 1 9, 1 31 ,986 20,306,397 1 , 1 74,41 1
Fees of office and user fees
Sheriffs department 500,000 500,000 509,204 9,204
Prisoner maintenance 5,000 5,000 3,924 (1 ,076)
County treasurer 1 3,400 1 3,400 9,392 (4,008)
Election admi nistrator 3,000 3,000 798 (2,202)
County clerk 500,000 500,000 495,669 (4,331 )
Probate personnel education fees 1 ,800 1 , 800 1 ,358 (442)
County courts at law 4,000 4,000 5, 1 77 1 , 1 77
Tax assessor -collector 450,000 450,000 460,739 1 0,739
Criminal district attorney 25,000 25,000 27,491 2, 491
District clerk
300,000 300,000 251 , 471 (48,529)
Justices of the peace
1 2,500 1 2,500 1 1 ,006 ( 1 ,494)
Deferred adjudication
7,000 7, 000 58, 001 51 ,001
Constables 6,850 6, 850 29,626 22,776
Total fees of office and user fees 1 ,828,550 1 , 828,550 1 ,863,856 35,306
I ntergovernmental
Payment in lieu of taxes
1 00 1 00 1 57 57
Alcohol beverage tax
1 50,000 1 50,000 1 48, 1 87 ( 1 , 81 3)
County courts at law
70,000 1 01 , 562 78, 707 (22,855)
Bingo gross receipts tax
75,000 75,000 80, 1 76 5, 1 76
Tobacco settlement
1 50,000 31 7, 452 31 7,452
Indigent defense grant
45,000 45,000 45,501 501
Titl e IV-E legal service
50,000 50,000 44,730 (5,270)
Jury fee reimbursemenUSB1 704
40,000 40,000 33,320 (6,680)
Juvenile detention contracts
1 ,250,000 1 ,250,000 1 , 1 05,400 (1 44,600)
State juveni l e detention funds
65,000 65,000 77,754 1 2,754
Jail inmate beds pace
2,320,000 2,320,000 1 , 523, 198 (796,802)
Jai l inmate contract medical
21 ,000 21 ,000 2,302 ( 1 8,698)
Jai l inmate contract other
40,000 40,000 59,392 1 9,392
Jail inmate extradition
20,000 20,000 33, 124 1 3, 1 24
General inmate medical
30,000 30,000 30, 185 1 85
Dept of Justice SCAAP program
1 8,990 1 8,990
Project lifesaver
350 350
GCRPC grants
60,265 61 , 764 1 , 499
Vest reimbursement
4,647 4,647
Project safe neighborhood 735 735
Total intergovernmental 4, 326, 100 4, 585, 379 3,666,071 (91 9,308)
( continued)
1 00
COUNTY OF VICTORIA, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
For the year ended December 31, 2007
REVENUES (continued)
Fines and forfeitures
District court fines
County court at law fines
Justice of the peace fines
Forfeitures
Total fines and forfeitures
I nterest
Licenses and permits
Marriage licenses
Beer and whiskey licenses
Miscellaneous
Total licenses and permits
Contributions
Miscellaneous
Records management preservation
WIC program admi nistrative fee
ORCA grant admi nistrative fee
Criminal justice pl anni ng commission
Crime stopper fee
LEOSEF collection
Victims of crime collection
JCPTF commission
Juveni l e probation diversion collections
Operators/chauffeurs license collection
General revenue/misdemeanor cost
Comprehensive rehabilitation collection
Cri mi nal assessment collection
Abused children fees
Legal service for indigents fees
Defensive driving course fee
Visual record by electronic device
Court reporter fees
Arrest warrant fees
Other fees
Personal recognizant fees
CJAD contract services
Rents and royalties
Telephone commissions
Election machines rental
Reimbursements
Refunds
Restitutions
Miscellaneous
Total miscellaneous
Total revenues
Original
�dget
m
$ 400,000
400,000
765,000
40, 100
1 , 605, 1 00
600,000
1 1 ,000
27,000
1 00
38, 1 00
400
40,000
20,000
300
5
1 0
1 , 500
1 00
200
25
25
25
25
25
600
20,000
500
30,000
45,000
224,750
7,000
6,000
33, 31 2
21 0,000
10, 000
39,660
1 00
1 ,000
86, 1 1 5
776, 277
27,856, 51 3
1 01
Final
Budget
$ 400,000
400,000
765,000
1 20, 100
1 ,685, 100
676,041
1 1 ,000
27,000
1 00
38, 100
400
40,000
20,000
300
5
1 0
1 , 500
1 00
200
25
25
25
25
25
600
20,000
500
30,000
45,000
224,750
7,000
6,000
33,312
21 0,000
1 0,000
54,849
1 00
1 ,000
86, 1 1 5
791 ,466
28,737,022
Actual Amounts Variance
Budgetary Positive
Basis (Negative)
$ 350,500 $ (49,500)
405,888 5,888
739,838 (25, 162)
1 87,228 67, 1 28
1 ,683,454 ( 1 ,646)
931 ,044 255,003
1 0,764 (236)
22,637 (4,363)
( 1 00)
33,401 (4,699)
(400)
44,362 4, 362
1 9,51 1 (489)
1 0,51 4 1 0, 51 4
1 1 8 (1 82)
2 (3)
6 (4)
506 (994)
47 (53)
300 1 00
4 (21 )
5 (20)
5 (20)
(25)
(25)
551 (49)
1 6,743 (3, 257)
31 (469)
28,921 ( 1 ,079)
42,469 (2,531 )
21 3,238 (1 1 , 512)
9, 575 2,575
5,693 (307)
32,862 (450)
1 84,520 (25,480)
8,357 ( 1 ,643)
79,888 25,039
(1 00)
1 , 369 369
1 00,589 1 4,474
800, 1 86 8, 720
29,284,409 547,387
(continued)
COUNTY OF VICTORIA, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
For the year ended December 31, 2007
Original Final
Budget Budget
EXPENDITURES
Current
General government
County judge
Salaries $ 1 54,306 $ 1 56,006
Fringe benefits 40,792 41 ,423
Operating expenditures
8,382 8,382
Total county judge
203,480 205, 81 1
Commi ssioners' court
Salaries 41 , 725 45,420
Fri nge benefits 1 1 ,825 1 2,538
Operating expenditures 1 3,000 1 3,000
Other services and charges
23,500 24,500
Total commissioners' court 90,050 95,458
Records management
Salaries 8,300 43,300
Fringe benefits 635 3,395
Operating expenditures 21 ,065 6,094
Total records management 30,000 52, 789
County clerk
Salaries 458,387 458,387
Fringe benefits 1 45,793 1 45, 793
Operating expenditures 9,390 1 0, 657
Other services and charges 1 , 200 697
Total county clerk 61 4, 770 61 5,534
Veterans' service officer
Salaries 41 ,970 41 , 970
Fringe benefits 8,080 8,080
Operating expenditures 5,400 5,400
Total veterans' service officer 55,450 55,450
Heritage director
Salaries 35,694 35,775
Fringe benefits 1 1 ,409 1 1 , 409
Operating expenditures 7,700 7,700
Total heritage director 54,803 54,884
Non-departmental
Operating expenditures 1 , 286,733 1 , 1 1 2,669
Other services and charges 81 9,445 1 , 848, 221
Capital outlay 350,000 357,007
Total non-departmental 2,456, 1 78 3, 31 7, 897
1 02
Actual Amounts Variance
Budgetary Positive
Basis (Negative)
$ 1 52, 502 $ 3,504
36,645 4,778
5,893 2,489
1 95,040 1 0, 771
41 , 725 3,695
1 1 , 761 777
8,364 4,636
22,420 2,080
84,270 1 1 , 1 88
40, 985 2, 315
3, 1 35 260
6,039 55
50, 1 59 2,630
41 9, 532 38,855
1 30, 692 1 5, 1 01
6, 926 3,731
697
557, 1 50 58,384
41 , 970
8,063 1 7
4, 243 1 , 1 57
54,276 1 , 1 74
35,775
1 1 , 21 5 1 94
1 , 1 88 6, 51 2
48, 1 78 6, 706
1 , 028,951 83, 71 8
922,749 925,472
342, 1 61 1 4,846
2,293,861 1 , 024,036
( continued)
COUNTY OF VICTORIA, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Variance
Original Final Budgetary Positive
Budget Budget Basis (Negative)
EXPENDITURES (continued)
Current (continued)
General government (continued)
County court at law # 1
Salaries $
1 42, 1 22 $ 1 55,354 $ 1 55,352 $ 2
Fri nge benefits 36,432 38, 981 35,591 3,390
Operating expenditures 3,955 4,530 3, 771 759
Other services and charges
39,000 38,682 36,432 2,250
Total county court at law # 1
221 , 509 237,547 231 , 1 46 6,401
County court at l aw # 2
Salaries 1 42, 1 87 1 55, 41 9 1 55,272 1 47
Fringe benefits 31 , 1 65 37,506 36,305 1 , 201
Operating expenditures 3,650 3,650 2,426 1 , 224
Other services and charges
29,000 46,883 46,787 96
Total county court at law # 2
206,002 243,458 240,790 2,668
District court
Salaries 21 8,846 21 8,846 207,051 1 1 , 795
Fringe benefits 91 ,286 91 ,286 87,768 3, 518
Operating expenditures 1 3, 750 1 4,250 1 1 , 822 2, 428
Other services and charges 603,788 598,840 572,061 26,779
Total district court 927,670 923,222 878,702 44,520
District clerk
Salaries 462,536 463,722 456,585 7, 1 37
Fringe benefits 1 41 , 312 1 41 , 31 2 1 31 , 709 9,603
Operating expenditures 24,604 24,647 23,470 1 , 1 77
Total district clerk 628,452 629,681 61 1 ,764 1 7, 91 7
Justice of the peace # 1
Salaries 70, 1 1 0 70, 1 1 0 70, 1 1 0
Fringe benefits 21 ,082 21 ,082 20,881 201
Operating expenditures 5,690 6,202 5,750 452
Other services and charges 1 2,540 1 2,278 1 2,224 54
Total justice of the peace # 1 1 09,422 1 09, 672 1 08,965 707
Justice of the peace # 2
Salaries 68,460 69, 1 55 69, 1 55
Fri nge benefits 20,764 20,764 1 6,931 3,833
Operating expenditures 3, 875 4,650 4,096 554
Other services and charges 1 4,400 1 4,025 1 4,022 3
Capital outlay 2,420 2,420
Total justice of the peace # 2 1 07,499 1 1 1 , 01 4 1 06,624 4,390
Justice of the peace # 3
Salaries 1 98, 918 1 98, 918 1 94,592 4,326
Fringe benefits 53,461 56, 1 35 54,623 1 , 51 2
Operating expenditures 5,590 5,590 4, 795 795
Other services and charges 2, 1 00 2, 1 00 1 , 260 840
Total justice of the peace # 3 260,069 262,743 255,270 7, 473
(continued)
1 03
COUNTY OF VICTORIA, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
For tile year ended December 31, 2007
Original Fi nal
Budget Budget
EXPENDITURES (continued)
Current (continued)
General government (continued)
Justice of the peace I 4
Salaries
$ 1 1 1 , 226 $ 1 09, 651
Fri nge benefits 29,740 29, 740
Operating expenditures 5,805 1 0, 826
Other services and charges 1 0,700 1 4, 800
Capital outlay 2, 1 73
Total justice of the peace 1 4 1 57, 471 1 67, 190
Criminal district attorney
Salaries 740,626 875, 21 6
Fri nge benefits 1 80,672 21 6, 676
Operating expenditures 1 0,000 1 0, 500
Capital outlay 26, 242
Total cri mi nal district attorney 931 , 298 1 , 1 28,634
Election administrator
Salaries 1 50,203 1 50, 203
Fri nge benefits 32, 71 9 36, 1 1 1
Operating expenditures 35,380 36, 91 3
Other services and charges 7, 700 6,567
Total election admi nistrator 226,002 229, 794
County auditor
Salaries 306,297 306,297
Fringe benefits 85, 507 85, 507
Operating expenditures 1 8, 385 1 8,385
Total county auditor 41 0, 1 89 41 0, 1 89
County treasurer
Salaries 1 97, 102 201 , 277
Fringe benefits 53,600 55, 762
Operating expenditures 34,750 28, 41 3
Total county treasurer 285,452 285, 452
Tax assessor-collector
Salaries 475,874 475, 874
Fri nge benefits 1 42,391 1 42, 391
Operating expenditures 1 8,050 1 8,050
Total tax assessor-collector 636, 31 5 636, 315
Administrative services
Salaries 1 78, 973 1 79, 473
Fri nge benefits 47, 31 7 50, 1 1 1
Operating expenditures 1 5,348 1 5,358
Total admi nistrative services 241 ,638 244,942
1 04
Actual Amounts Variance
Budgetary Positive
Basis (Negative)
$ 1 06,280 $ 3, 371
25, 1 43 4, 597
9, 847 979
1 4, 31 8 482
2, 1 73
1 57, 761 9,429
871 , 71 8 3, 498
21 4,329 2, 347
1 0, 500
20,843 5,399
1 , 1 1 7,390 1 1 ,244
1 48, 210 1 , 993
34,672 1 ,439
33, 1 50 3,763
6, 478 89
222, 51 0 7, 284
294, 487 1 1 , 81 0
81 , 033 4, 474
1 4, 857 3, 528
390, 377 1 9, 81 2
1 96,733 4,544
55,254 508
24,483 3,930
276,470 8,982
448,842 27,032
1 30,084 1 2,307
1 4,935 3, 1 1 5
593,861 42,454
1 74,349 5, 1 24
48,735 1 , 376
1 4,856 502
237, 940 7, 002
( continued)
COUNTY OF VICTORIA, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Variance
Original Final Budgetary Positive
Budget Budget Basis (Negative)
EXPENDITURES (continued)
Current (continued)
General government (continued)
I nformation technology
Salaries $
272,442 $
272,442 $
268,564 $
3, 878
Fri nge benefits 81 ,222 81 , 222 76,746 4,476
Operating expenditures 257,960 229,960 200, 1 51 29,809
Other services and charges 85,000 1 04,000 99,896 4, 1 04
Capital outlay
35,000 44,000 42, 831 1 , 1 69
Total information technology
731 ,624 731 , 624 688, 1 88 43,436
Building maintenance
Salaries 233,408 233,438 229, 602 3,836
Fringe benefits 64, 391 67,297 65, 563 1 , 734
Operating expenditures
839, 800 967,404 955,920 1 1 ,484
Total bui ldi ng maintenance
1 , 1 37, 599 1 , 268, 1 39 1 , 251 , 085 1 7,054
Adult probation department
Operating expenditures
8,540 22,066 21 ,545 521
Total adul t probation department
8, 540 22,066 21 ,545 521
Juvenile detention facility
Salaries 1 , 460, 145 1 , 545, 1 45 1 , 441 ,360 1 03,785
Fringe benefits 41 2, 508 41 2,508 380,352 32, 1 56
Operating expenditures 300,747 340,481 325,669 1 4, 81 2
Other services and charges 75,340 58, 1 95 55,707 2,488
Capital outlay 96, 1 21 95,241 880
Debt service 499, 51 8 499, 518 499, 51 7 1
Total juvenile detention facil ity 2, 748,258 2, 951 ,968 2, 797, 846 1 54, 1 22
Juveni l e board
Salaries 31 ,031 31 ,031 31 , 031
Fringe benefits 5, 975 5, 975 5,222 753
Other services and charges 69,352 69,541 66,633 2,908
Total juvenil e board 1 06,358 1 06,547 1 02,886 3,661
Total general government 1 3, 586,098 1 5,098,020 1 3, 574,054 1 , 523,966
Public safety
Fire marshal
Salaries 87,763 87,763 87,763
Fringe benefits 24,480 25,968 25,443 525
Operating expenditures 40,425 51 ,545 50,498 1 ,047
Other services and charges 67, 500 66,762 66, 274 488
Capital outlay 1 2, 200 1 4, 813 1 4, 81 2 1
Total fire marshal 232,368 246,851 244,790 2,061
(continued)
1 05
COUNTY OF VICTORIA, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Variance
Original Final Budgetary Positive
Budget Budget Basis (Negative)
EXPENDITURES (continued)
Current (continued)
Public safety (continued)
Sileriff
Salaries $ 6,444,255 $ 6,354,749 $ 6, 051, 882 $ 302,867
Fringe benefits 1 , 827,980 1 , 81 3,980 1 , 661 , 797 1 52, 1 83
Operating expenditures 1 , 880,709 1 ,894,674 1 , 694, 182 200,492
Otl1er services and charges 1 5,000 1 6,670 1 5,603 1 ,067
Capital outlay 69,300 634,833 604, 61 8 30, 21 5
Debt service
121 ,676 1 21 ,676 1 21 ,658 1 8
Total sheriff
1 0,358,920 1 0,836,582 1 0, 1 49,740 686,842
Constable # 1
Salaries 1 9, 51 9 1 9, 51 9 1 9, 519
Fringe benefits 8, 295 8, 295 7, 956 339
Operating expenditures
600 600 396 204
Total constable # 1 28, 414 28,41 4 27, 871 543
Constable # 2
Salaries 22,093 22,093 22,093
Fringe benefits 8, 791 8, 791 8,601 1 90
Operating expenditures
600 1 , 383 1 , 379 4
Total constable # 2 31 ,484 32,267 32,073 1 94
Constable # 3
Salaries 21 ,563 21 , 563 21 ,563
Fringe benefits 7,944 7,944 7,899 45
Operating expenditures 744 744 608 1 36
Total constable # 3 30,251 30,251 30,070 1 81
Constable # 4
Salaries 21 ,563 21 , 563 21 , 563
Fringe benefits 4, 1 52 4,530 4, 51 1 1 9
Operating expenditures 600 600 573 27
Total constable # 4 26, 31 5 26,693 26,647 46
Non-departmental
Other services and charges
CitylCounty interlocal agreement 450,000 462,352 462,352
Total non-departmental 450,000 462,352 462,352
Total public safety 1 1 , 1 57, 752 1 1 ,663,41 0 1 0,973,543 689,867
(continued)
1 06
COUNTY OF VICTORI A, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Variance
Original Fi nal Budgetary Positive
Budget Budget Basis (Negative)
EXPENDITURES (continued)
Current (continued)
Culture and recreation (continued)
Parks and recreation
Salaries
$
61 , 251 $ 61 , 31 8 $ 61 ,005 $ 31 3
Fringe benefits 1 9,376 1 9,376 1 9, 221 1 55
Operating expenditures 1 9,200 1 9,200 1 7,209 1 ,991
Capital outlay 1 , 000 1 , 000 1 ,000
Total parks and recreation 1 00, 827 1 00,894 97,435 3,459
Extension service
Salaries 1 85,534 1 84, 81 9 1 71 ,460 1 3,359
Fringe benefits 47, 837 47, 837 32,984 1 4,853
Operating expenditures 20,227 21 , 21 5 20,572 643
Other services and charges 31 ,600 32,577 31 , 71 2 865
Total extension service 285, 1 98 286,448 256,728 29,720
Non-departmental
Other services and charges
Victoria Public Library 1 , 083,908 1 , 083,908 1 , 083,908
Total culture and recreation 1 ,469,933 1 , 471 ,250 1 ,438,071 33, 1 79
Publ ic health
Emergency mgmt. I Flood plain
Salaries 79,879 99,304 96,450 2,854
Fringe benefits 1 8, 1 31 27,334 26, 1 80 1 , 1 54
Operating expenditures 8,809 28,054 25, 71 8 2,336
Other services and charges 6,000 28, 991 27, 1 30 1 , 861
Capi tal outlay 4, 1 00 4, 1 00
Total flood plain management 1 1 2, 81 9 1 87, 783 1 79, 578 8, 205
Total publ i c health 1 1 2, 81 9 1 87, 783 1 79, 578 8, 205
Capital outlay 95,590 94,590 1 ,000
Total expenditures 26,326,602 28, 51 6,053 26,259,836 2,256, 21 7
Excess (deficiency) of revenues over expenditures 1 , 529, 91 1 220,969 3,024,573 2,803,604
OTHER FI NANCING SOURCES (USES)
Sal e of assets
20,000 20,000 48, 1 77 28, 1 77
Capital lease issuance
1 76, 261 1 76, 261
Transfers i n
277, 500 277, 500 277,500
Transfers out (1 , 827, 41 1 ) (2,394,839) (2,321 , 772) 73,067
Total other financing sources (uses) (1 , 529, 91 1 ) (1, 921 , 078) (1 , 81 9,834) 1 01 , 244
Change in fund balance
( 1 , 700, 109) 1 ,204,739 2,904,848
Fund balance, January 1 9, 1 38, 1 45 9, 1 38, 145 9, 1 38, 1 45
Fund balance, December 31
$ 9, 1 38, 145 $ 7,438,036 $ 10,342,884 $ 2,904,848
(concluded)
1 07
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
ROAD AND BRIDGE PRECINCT NO. 1
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Budget to GMP
Final Budgetary Differences Actual Amounts
Budget Basis Over (Under) GMP Basis
REVENUES
Taxes
Current taxes $ 595,241 $ 600,280 $ $ 600,280
Delinquent taxes 1 2,000 1 1 , 852 (8) 1 1 ,860
Penalty and interest 6, 100 6,009 7 6,002
Intergovernmental
Vehicle license fees 21 5,000 228,702 228,702
Additional license fees 21 0,000 208,263 (264) 208,527
Permits 3,500 1 5, 1 66 1 5, 1 66
Investment income
Interest 1 8, 000 43, 71 5 43, 71 5
Miscellaneous 1 00 1 , 275 1 , 275
Total revenues 1 ,059,941 1 , 1 1 5,262 (265) 1 , 1 1 5,527
EXPENDITURES
Current
Highways and streets
Salaries 436,350 421 ,966 ( 1 ,976) 423,942
Fringe benefits 141 ,447 1 36,222 (709) 1 36,931
Operating expenditures 268,564 201 , 983 ( 1 7,466) 21 9,449
Other services and charges 2, 1 50 229 229
Capital outlay 1 90,234 1 1 0, 965 1 1 0,965
Debt service 59,499 59,490 59,490
Total expenditures 1 , 098,244 930,855 (20, 1 51 ) 951 ,006
Excess (deficiency) of revenues
over expenditures (38,303) 1 84, 407 1 9,886 1 64, 521
OTHER FINANCING SOURCES (USES)
Sal e of assets 1 00 9,534 9,534
Capital lease issuance 88,203 88, 203 88, 203
Transfers out (50,000) (50,000) (50,000)
Total other financing sources (uses) 38,303 47, 737 47,737
Change i n fund balance
232, 144 1 9,886 21 2, 258
Fund balance, January 1 350, 1 1 9 350, 1 1 9 53,477 296,642
Fund balance, December 31 $ 350, 1 1 9 $ 582,263 $ 73,363 $ 508,900
Explanation of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when paid.
1 08
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
ROAD AND BRIDGE PRECINCT NO. 2
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Budget to GAAP
Final Budgetary Differences Actual Amounts
Budget Basis Over ( Under) GAAP Basis
REVENUES
Taxes
Current taxes $ 487, 01 5 $ 491 , 1 39 $ $ 491 , 1 39
Deli nquent taxes 1 0,000 9, 698 (6) 9,704
Penalty and interest 4,900 4, 91 7 6 4, 91 1
Intergovernmental
Vehicle license fees 21 5,000 228,702 228,702
Additional license fees 1 95,000 1 88,000 (239) 1 88,239
Permits 3,500 1 5,796 1 5, 796
I nvestment income
Interest 1 5,000 33,463 33,463
Miscellaneous
1 00 6, 677 6, 677
Total revenues 930, 51 5 978,392 (239) 978,631
EXPENDITURES
Current
Hi ghways and streets
Salaries 362,564 358,701 ( 1 ,644) 360,345
Fringe benefits 1 1 8,980 1 1 6,964 (910) 1 1 7,874
Operati ng expenditures 343,871 284, 1 27 (47, 1 83) 331 , 31 0
Other services and charges 46,200 40,745 (850) 41 ,595
Capital outlay 60,000 53,692 53,692
Total expenditures 931 , 61 5 854,229 (50,587) 904, 816
Excess (deficiency) of revenues
over expenditures ( 1 , 1 00) 1 24, 1 63 50,348 73, 81 5
OTHER FINANCING SOURCES (USES)
Sale of assets 1 00 4,382 4,382
Transfers i n
1 1 3, 381 1 1 3,381
Transfers out (50,000) (50,000) (50,000)
Total other financing sources (uses) (49,900) 67,763 67,763
Change i n fund balance (51 ,000) 1 91 , 926 50,348 1 41 , 578
Fund bal ance, January 1 273, 1 76 273, 1 76 57,868 21 5,308
Fund balance, December 31 $ 222, 1 76 $ 465, 1 02 $ 1 08, 216 $ 356,886
Explanation of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when paid.
1 09
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
ROAD AND BRIDGE PRECINCT NO. 3
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Budget to GAAP
Final Budgetary Differences Actual Amounts
Budget Basis Over (Under) GAAP Basis
REVENUES
Taxes
Current taxes $ 487, 01 5 $
491 , 1 39 $ $ 491 , 1 39
Del i nquent taxes 1 0,000 9,698 (6) 9,704
Penalty and interest 4,900 4, 91 7 6 4, 91 1
I ntergovernmental
Vehicle license fees 21 5,000 228,702 228,702
Additional license fees 1 95,000 1 88,000 (239) 1 88, 239
Permits 3,500 1 7,296 1 7,296
I nvestment income
Interest 30,000 45,474 45, 474
Miscellaneous 1 5, 1 00 1 6,270 (457) 1 6, 727
Total revenues 960, 515 1 , 001 ,496 (696) 1 , 002, 1 92
EXPENDITURES
Current
Highways and streets
Salaries 445, 1 82 423,929 (2,584) 426, 51 3
Fri nge benefits 1 49, 797 1 43, 1 22 (1 ,077) 1 44, 1 99
Operating expenditures 283,885 273, 01 3 4, 100 268, 91 3
Other services and charges 4,000 1 , 467 1 , 467
Capital outlay 76,767 76,767 76,767
Total expenditures 959,631 91 8, 298 439 91 7, 859
Excess (deficiency) of revenues
over expenditures 884 83, 1 98 ( 1 , 1 35) 84,333
OTHER FINANCING SOURCES (USES)
Sale of assets 1 00
Transfers out (80,000) (80,000) (80,000)
Total other financing sources ( uses) (79,900) (80,000) (80,000)
Change i n fund balance (79, 016) 3, 1 98 (1 , 1 35) 4, 333
Fund bal ance, January 1 540,876 540,876 65,359 475, 51 7
Fund balance, December 31 $ 461 ,860

544,074 $ 64,224 $ 479,850
Explanation of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when pai d.
1 1 0
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
ROAD AND BRIDGE PRECINCT NO. 4
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Budget to GAAP
Final Budgetary Differences Actual Amounts
Budget Basi s Over (Under) GAAP Basis
REVENUES
Taxes
Current taxes
$ 595,241
$
600,280 $ $ 600,280
Delinquent taxes 1 2,000 1 1 , 853 (8) 1 1 , 861
Penalty and interest 6, 1 00 6, 01 0 7 6, 003
Intergovernmental
Vehicle license fees 21 5,000 228, 702 228, 702
Additional license fees 21 0, 000 208, 263 (264) 208,527
Permits 3,500 1 5, 1 66 1 5, 1 66
Investment income
Interest 1 5,000 30,61 7 30,61 7
Miscellaneous 22,200 34,637 (36) 34, 673
Total revenues 1 , 079,041 1 , 1 35, 528 (301 ) 1 , 1 35, 829
EXPENDITURES
Current
Hi ghways and streets
Salaries 456,061 435, 91 8 ( 1 , 81 0) 437, 728
Fri nge benefits 1 38, 1 60 1 25, 705 ( 1 ,044) 1 26, 749
Operating expenditures 338, 71 5 323,364 (4, 471 ) 327,835
Other services and charges 5, 200 972 972
Capital outlay
307,281 305,281 305,281
Debt service 63,755 63,754 63, 754
Total expenditures 1 , 309, 172 1 , 254,994 (7, 325) 1 , 262, 31 9
Excess (deficiency) of revenues
over expenditures (230, 1 31 ) (11 9, 466) 7,024 (1 26,490)
OTHER FINANCING SOURCES (USES)
Sale of assets
2, 71 4 2, 714
Capital lease issuance
1 81 ,631 1 81 ,631 1 81 , 631
Transfers in
1 52, 91 3 1 52, 91 3
Transfers out (50,000) (50,000) (50,000)
Total other financing sources (uses) 1 31 ,631 287, 258 287, 258
Change i n fund balance
(98,500) 1 67, 792 7, 024 1 60,768
Fund balance, January 1 278, 01 2 278, 012 60, 836 21 7, 1 76
Fund balance, December 31 $ 1 79, 51 2
$ 445,804 $ 67,860
$ 377,944
Explanation of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when paid.
1 1 1
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - DEBT SERVICE FUNDS
ROAD BONOS SINKING FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Budget to GAAP
Fi nal Budgetary Differences Actual Amounts
Budgel Basis Over (Under) GAAP Basis
REVENUES
Taxes
Current taxes $ 298,501 $ 304,337 $ $ 304,337
Delinquenl taxes 1 0,000 6, 91 9 ( 1 0) 6,929
Penalty and interest 4,300 3, 31 7 3, 31 7
Investment income
I nterest 3,200 3,904 3,904
Total revenues 31 6,001 31 8, 477 ( 1 0) 31 8,487
EXPENDITURES
Debt service
Principal retirement 280,000 280,000 280,000
I nterest and fiscal charges
64,21 2 64, 1 98 1 63 64,035
Total expenditures 344, 21 2 344, 1 98 1 63 344,035
Change in fund balance (28,21 1 ) (25, 721 ) ( 1 73) (25,548)
Fund balance, January 1 50,925 50,925 1 23 50,802
Fund balance, December 31 $ 22, 714
$ 25,204 $
(50) � 25,254
Explanation of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when paid.
1 1 2
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - DEBT SERVICE FUNDS
JAIL BONDS SINKING FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Budget to GAAP
Fi nal Budgetary Differences
Budget Basis Over (Under)
REVENUES
Taxes
Current taxes
$ 443, 1 36 $
448,274 $
Delinquent taxes 1 3,000 9, 935 2
Penalty and interest 6, 000 4, 841 7
I nvestment income
I nterest 4,000 4, 068
Total revenues 466, 1 36 467, 1 1 8 9
EXPENDITURES
Debt service
Principal retirement 430,000 430,000
I nterest and fiscal charges 29,838 29, 81 1
Total expenditures 459,838 459,81 1
Change i n fund balance 6,298 7,307 9
Fund balance, January 1 22, 122 22, 1 22 (73)
Fund balance, December 31 $ 28,420 $ 29, 429 $ (64)
Explanation of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when pai d.
1 1 3
Actual Amounts
GAAP Basis
$ 448,274
9,933
4,834
4,068
467, 109
430,000
29, 81 1
459, 81 1
7, 298
22, 1 95
$ 29,493
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - DEBT SERVICE FUNDS
COURTHOUSE RESTORA TlON BONDS SINKING FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Budget to GAAP
Final Budgetary Differences Actual Amounts
Budget Basis Over (Under) GAAP Basis
REVENUES
Taxes
Current taxes $ 31 6, 965 $
320,786 $ $
320,786
Delinquent taxes 9,000 7, 1 1 2 2 7, 1 1 0
Penalty and interest 4,200 3,489 4 3,485
Investment income
Interest
3,000 3,825 3,825
Total revenues
333, 1 65 335, 212 6 335,206
EXPENDITURES
Debt service
Principal retirement 250,000 250,000 250,000
Interest and fiscal charges
82,056 82,056 1 63 81 ,893
Total expenditures 332,056 332,056 1 63 331 ,893
Change i n fund balance 1 , 1 09 3, 1 56 ( 1 57) 3,31 3
Fund balance, January 1 1 9, 859 1 9, 859 1 1 3 1 9,746
Fund balance, December 31 $
20,968
$ 23, 01 5 $ (44) $
23,059
Explanation of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when paid.
1 1 4
COUNTY OF VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS - DEBT SERVICE FUNDS
BRIDGE STREET ANNEX SINKING FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
For the year ended December 31, 2007
Actual Amounts Budget to GAAP
Final Budgetary Differences Actual Amounts
Budget Basis Over (Under) GAAP Basis
REVENUES
Taxes
Current taxes
$ 477, 1 89 $ 485,283 $ $ 485,283
Delinquent taxes 1 4,000 1 0, 759 2 1 0, 757
Penalty and interest 6,200 5, 241 6 5,235
Investment income
Interest 4,200 6,628 6,628
Total revenues 501 , 589 507, 91 1 8 507,903
EXPENDITURES
Debt service
Principal retirement 340,000 340,000 340,000
Interest and fiscal charges 1 62,228 1 62,228 1 62,228
Total expenditures 502,228 502,228 502,228
Change i n fund balance (639) 5,683 8 5, 675
Fund bal ance, January 1 33,989 33,989 (75) 34,064
Fund balance, December 31 $ 33,350 $ 39,672 $ (67) $ 39,739
Explanation of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when paid.
1 1 5
AGENCY FUNDS
Agency Funds are used to account for the monies received and disbursed by the County i n the capacity
of trustee, custodian, or agent for individuals or other entities.
County Clerk-Trusts Fund Accounts for monies held by the County Clerk i n trust for various
mi nors of the County of Victoria.
Criminal District Attorney Fund Accounts for the merchants' portion of collections made on
"hot" checks.
District Clerk-Trusts Fund - Accounts for monies held by the District Clerk i n trust for various
minors of the County of Victoria.
District Clerk-Child Support Fund - Records the collection and disbursement of child support
payments made by residents of Victoria County.
Clerk's Special Fund Accounts for the collection and disbursement of excess fees collected by
both the County and District Clerks.
Jai l Inmate Trust Fund - Accounts for monies that are held for the benefit of and use by inmates
i n the County Jai l .
Sheriff Special Fund Records out-of-county cash bonds and various fines and fees collected
by the Sheriffs department. These funds are remitted to the State and other entities as
appropriate.
State Fees Fund - Accounts for statutory additions to various fines collected by the County.
These fees are transferred to the State and the General Fund of the County on a periodic basis.
Justice of the Peace Special Fund Records the disposition of cash bonds and miscellaneous
overpayments. These funds are disbursed according to court orders.
Tax Assessor-Collector Fund - Accounts for the collection of ad valorem taxes, various vehicle
taxes, and sales taxes by the County Tax Assessor-Collector. These monies are remitted to
other various County funds and the State as collected.
Juvenile Restitution Fund - Records the receipt and disbursement of monies collected from
juvenile offenders and paid to owners of damaged property.
Special Services Fund - Records confiscated drug monies prior to their being awarded, by
action of the court, to various individuals and/or County departments.
Municipal Court Fund - Accounts for the receipt of monies collected from City of Victoria
i nmates housed i n the Victoria County Jai l . Such monies consist of fines, court costs, and other
related items that are i n turn remitted to the City of Victoria.
Juvenile Inmate Trust Fund - Accounts for monies that are held for the benefit of and use by
inmates i n the County Juvenile Detention facility.
CDA State Judiciary Fund - Accounts for funds received from the State Comptroller's Office to
provide financial assistance to district attorneys for office expenses, suppl i es, and personnel.
1 1 6
COUNTY OF VICTORIA, TEXAS
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the year ended December 31, 2007
Balance at Balance at
Beginning End
of Year Additions Deletions of Year
COUNTY CLERK·TRUSTS
ASSETS
Cash and cash equivalents $ 858,242 $ 1 ,436,762 $ 1 , 366,836 $ 928, 168
LIABILITIES
Accounts payable $ 858,242 $ 1 , 436,762 $ 1 , 366,836 $ 928, 168
CRI MI NAL DISTRICT ATTORNEY
ASSETS
Cash and cash equivalents $ $ 878,246 $ 867, 195 $ 1 1 , 051
LIABILITIES
Accounts payable $ $ 878,246 $ 867, 195 $ 1 1 , 051
DISTRICT CLERK·TRUSTS
ASSETS
Cash and cash equivalents $ 2,466,097 $ 2, 200, 261 $ 2, 472, 494 $ 2, 1 93,864
LIABILITIES
Accounts payable $ 2,466,097 $ 2, 200, 261 $ 2,472,494 $ 2, 1 93,864
DISTRICT CLERK·CHILD SUPPORT
ASSETS
Cash and cash equivalents $ 1 1 ,702 $ 285,984 $ 285,984 $ 1 1 , 702
LIABILITIES
Accounts payable $ 1 1 ,702 $ 285,984 $ 285,984 $ 1 1 ,702
CLERK'S SPECIAL
ASSETS
Cash and cash equivalents
$ 55
$ 1 4, 1 49 $ 1 4, 1 25 $ 79
Other receivables 66 66
$ 1 21 $ 1 4, 1 49 $ 1 4, 1 91 $ 79
LIABILITIES
Accounts payable
$ 1 21 $ 1 4, 1 49 $ 1 4, 1 91 $ 79
JAIL INMATE TRUST FUND
ASSETS
Cash and cash equivalents $ 20,699 $ 600,043 $ 604,41 3 $ 16, 329
LIABILITIES
Accounts payable
$ 20,699
$ 600,043 $ 604, 41 3 $ 1 6, 329
( continued)
1 1 7
COUNTY OF VICTORIA, TEXAS
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the year ended December 31, 2007
SHERI FF SPECIAL
ASSETS
Cash and cash equivalents $
LIABILITIES
Accounts payable $
STATE FEES
ASSETS
Cash and cash equivalents
$
Other receivables
Total assets $
LIABILITIES
Accounts payable $
JUSTICE OF THE PEACE·SPECIAL
ASSETS
Cash and cash equivalents $
LIABILITIES
Accounts payable $
TAX ASSESSOR·COLLECTOR
ASSETS
Cash and cash equivalents
$
Other receivables
Total assets $
LIABILITIES
Accounts payable
$
Due to other governments
Total liabilities
$
JUVENILE RESTITUTION
ASSETS
Cash and cash equivalents
$
LIABILITIES
Accounts payable
$
Balance at
Beginning
of Year
2,900
2,900
287,778
4,490
292,26!.
292,268
¬¬.+¬¬¬•++¬.•
253
253
3, 1 1 5,458
54,945
3, 1 70,403
.
1 , 41 3
3, 1 68,990
3, 1 70,403
1 2
1 2
1 1 8
$
$
$
$
$
$
$
$
$
$
$
$
$
¬ m
Additions
489,383
489,383
1 , 257, 1 69
4,269
1 , 261 ,438
1 , 261 ,438
1 45,649
1 45,649
62,952,655
59,046
63, 01 1 , 701
56,785,546
6, 226, 155
63, 01 1 , 701
1 , 803
1 , 803
$
$
$
$
$
$
$
$
$
$
$
$
$
Deletions
371 ,904
¬+
371 ,904
1 , 31 0, 1 24
4,490
1 , 314, 61 4
¬+ +÷ ¬
1 , 314, 614
3_�,355
38,355
59,884,253
54,945
59,939, 198
56,770,208
3, 1 68,990
59,939, 1 98
1 , 720
1 , 720
Balance at
End
of Year
$ 1 20, 379
$ 1 20, 379
$ 234,823
4,269
$ 239,092
$ 239,092
$ 1 07,547
$ 1 07,547
$ 6, 1 83,860
59,046
$ 6,242,906
1 6, 751
6,226, 1 55
$ 6,242,906
$ 95
$ 95
(continued)
COUNTY OF VICTORIA, TEXAS
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the year ended December 31, 2007
Balance at Balance at
Beginning End
of Year Additions Deletions of Year
SPECIAL SERVICES
ASSETS
Cash and cash equivalents $ 1 57,699 $ 1 1 0,450 $ 1 61 , 1 05 $
1 07,044
Seized assets 43,078 5,350 35,208 1 3,220
Total assets $ 200,777 $ 1 1 5,800 $
1 96, 31 3 $ 1 20,264
LIABILITIES
Accounts payable $ 200,777 $ 1 1 5, 800 $ 1 96, 31 3 $
1 20,264
MUNICIPAL COURT FUND
ASSETS
Cash and cash equivalents $ 1 7, 512 $ 322,995 $ 324,982 $
1 5, 525
Other receivables 3,040 6,075 3,040 6,075
Total assets $ 20,5_52 $ 3
.
29,070 $
328,022
$ 21 ,600
LIABILITIES
Accounts payable $ :9,552 $ 329,070 $ 328,022 $ 21 ,600
JUVENILE INMATE TRUST FUND
ASSETS
Cash and cash equivalents $ 733

1 ,893 $ 2, 463 $ 1 63
LIABILITIES
Accounts payable $ 733 $ 1 ,893
$ 2, 463 $ 1 63
CDA STATE JUDICIARY FUND
ASSETS
Due from other governments $ 3,604 $ 4, 674 $ 3,604 $ 4,674
LIABILITIES
Accounts payable $ 3,604 $ 4,674 $ 3,604 $ 4,674
TOTALS - ALL AGENCY FUNDS
ASSETS
Cash and cash equivalents
$ 6, 939, 140
$ 70, 697,442 $ 67, 705, 953
$ 9, 930, 629
Other receivables
62,541 69, 390 62, 541 69,390
Due from other governments 3,604 4, 674 3,604 4,674
Seized assets 43, 078 5, 350 35,208 1 3,220
Total assets
$ 7,048,363
$ 70,776,856 $ 67, 807, 306
$ 1 0, 01 7, 91 3
LIABILITIES
Accounts payable
$ 3, 879,373
$ 64,550,701 $ 64,638, 31 6 $ 3, 791 , 758
Due to other governments 3, 1 68,990 6, 226, 155 3, 1 68, 990 6,226, 1 55
Total liabi lities
$ 7,048,363
$ 70, 776, 856 $ 67, 807, 306
$ 1 0, 01 7, 91 3
(concluded)
1 1 9
STATISTICAL SECTION
This part of the County's comprehensive annual financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required suppl ementary
information says about the County's overall financial health.
Contents
Financial Trends
These schedules contain trend i nformation to help the reader understand how the
County's financial performance and well-being have changed over ti me . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + 1 21
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the
County's ability to generate its property tax and sales tax revenues . + æ æ & + 4 + 4 ¬ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 27
Debt Capacity
These schedules present information to help the reader assess the affordability of the
County's current levels of outstanding debt and the County's ability to issue additional
debt i n the future + æ ¤ + ¬ æ + + + + + + æ + + + + + + + + + + + æ + » + + + æ æ + & + + & + & + + + + æ + + æ + æ æ + + + + + & + + + + = æ + æ + + + + æ + > æ + + æ æ + + + + + + + & æ + + æ + + + + + æ + + æ + + + æ + + + + + + + + + + + + + + « + + + + + + + æ + + + » + + 1 40
Demographic and Economic I nformation
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the County's financial activities take place and
to help make comparisons over ti me and with other governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + .
Operating Information
These schedules contain information about the County's operations and resources to
help the reader understand how the County's financial information relates to the services
1 45
the County provides and the activities it performs . & > & = & . a + . v æ . . æ æ æ æ + ¬ æ æ + + æ + + æ æ æ + ¬ & + æ æ æ + + + æ + + æ + æ æ ¤ + æ + + + « + + + + « + + + « = + + + + & + + & + + + + æ + + æ + 147
1 20
COUNTY OF VICTORIA, TEXAS
NET ASSETS BY COMPONENT (1)
Last five fiscal years
Governmental activities
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business-Iype activities
Invested in capital assets,
net of related debt
Unrestricted
Total business-type activities net assets
Primary Government
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total primary government activities net assets
( 1 ) Accrual basis of accounting
2003
$ 8,999,425
1 51 ,540
7,275,730
$ 1 6,426,695
$ 5,830,794
647,764
$ 6,478,558
$ 14, 830, 219
151 ,540
7,923,494
$ 22,905,253
Fiscal Year
2004 2005
$ 1 2,559,708 $ 14, 01 9,641
357,245 727,782
8,764,650 10, 092,763
$ 21 ,681 ,603 $ 24, 840,186
$ 7,020,823 $ 8,662,029
294,558 ( 1 5,726)
$ 7,3!5}81 $ 8,646,303
$ 1 9,580,531 $ 22,681 ,670
357,245 727,782
9,059,208 1 0,077,037
$ 28,996,984 $ 33,486,489
NOTE: The County began to report accrual information when it implemented GASB Statement 34
in fiscal year 2003.
1 21
2006 2007
$ 1 3, 1 24,045 $ 1 4,451 ,437
436,788 354, 100
1 5, 81 1 ,093 1 7,001 ,71 9
$ 29, 371 ,926 $ 31 ,807,256
$ 9, 510, 1 56 $ 9,881 , 81 2
(96,824) 56,927
$ 9, 41 3,332 $ 9-,,938,739
$ 22,634,201 $ 24,333,249
436,788 354,100
1 5, 71 4,269 1 7,058,646
$ 38,785,258 $ 41 ,745,995
COUNTY OF VICTORIA, TEXAS
CHANGES IN NET ASSETS (1)
Last five fiscal years
Fiscal Year
2003 2004 2005 2006 2007
Governmental activities
Expenses
General government $ 1 3, 1 73,038 $ 13,237,845 $ 14, 149, 101 $ 14,575,456 $ 15,640,516
Public safety 9,285,840 9,333,043 9,929,954 10,942,218 11,518,191
Streets and highways 3,414,048 3,255,108 4,232,306 4,244,523 3,804,550
Culture and recreation 1,248,392 1,195,419 1 ,293,663 1,340,356 1 ,504,003
Public health 3,547,555 3,584,444 3,653,066 3,860,870 4, 1 57,317
Interest on long-term debt 548,963 446,612 430,889 390,875 398,919
Total expenses �17, 836 31,052,471 33,688,979 35,354,298 37,023,496
Program revenues
Charges for services
General government 5,342,455 4,933, 859 4, 589,676 5,295,474 5, 1 23,021
Public safety 3,884,817 3, 818,691 3,401 ,404 3,493,283 2,303,680
Streets and highways 1 ,892,593 1 ,695,264 1,750,489 1 ,744,465 1,771,764
Culture and recreation 2,540
Public health 353,498 530,41 8 375,485 444,626 648,392
Operating grants and contributions 3,277,410 3,280,496 3,227, 144 3, 410,606 3,868,765
Capital grants and contributions 350, 313 509,910 695,671 7,584 61 ,764
Total program revenues 15, 103,626 14,768,638 14,039,869 1 4,396,038 13,777,386
Total governmental activities net program
(expense) revenue (16, 114, 210) ( 16,283,833) ( 1 9,649, 1 10) (20,958,260) (23,246,110)
General revenues and other changes in net
assets
Taxes
Property taxes 1 2,817,909 14,234,749 15, 1 80,030 15,637,488 16,774,618
Sales taxes 5,069,316 5,608,969 6,005,658 7, 1 53,556 7,371,870
Other taxes 204,454 21 5,784 216,996 228,363
Grants and contributions not restricted to
specific programs 10,847 1 1 2,354 124, 118 232, 154 328,962
Investment earnings 223,724 273,807 585,776 1,029,000 1 ,215,536
Gain (loss) on disposition of capital assets 47,787 81,271 235,488 84,566
Miscellaneous
955,849 743,036 463,016 365,664 410, 217
Payments to component units (56,600)
Special item - loss on refunding (27,374)
Transfers (340,017) (238,457) (1 30,000) (130,000) (648,126)
Total general revenues and other changes i n
net assets 1 8,701,441 21,020,183 22,679,870 24,589,424 25,681,440
Total governmental activities change in net
assets $ 2,587,231 $ 4,736,350 $ 3,030,760 $ 3, 631, 164 $ 2,435,330
122
Busi ness-type activities
Expenses
Airport
Navarro Project
Commisary
Total expenses
Program revenues
Charges for serices
Airport
Navarro Project
Commisary
Operating grants and contributions
Capital grants and contributions
Total program revenues
Total business-type activities net program
(expense) revenue
General revenues and other changes in net
assets
Investment earnings
Gain (loss) on disposition of capital assets
Miscellaneous
Transfers
Total general revenues and other changes in
net assets
Total business-type activities change in net
assets
Total primary government change In net
assets
( 1 ) Accrual basis of accounting
$
$
$
Fiscal Year
2003 2004 2005
2, 1 88,872 $ 2,328,426 $ 2,301 , 212
503,268 466,392 481 ,568
240, 192 80,541 73,431
2,932,332 2,875,359 2,856,2 1 1
1 ,424, 414 1 ,507,081 1 ,559,650
534, 1 30 535,960 535,960
280,255 91 ,400 81 ,269
1 92, 817 1 ,323,954 1 ,773,31 1
2, 431 ,616 3,458,395 3,950, 1 90
(500, 716) 583,036 1 ,093,979
1 4,947 1 3,983 23,499
1 ,615
22,638 1 ,347
340,01 7 238,457 1 30,000
379,21 7 253,787 1 53,499
(121 ,499) $ 836,823 $ 1 ,247,478
2,465,732 $ 5,573, 1 73
$ 4,278,238
NOTE: The County began to repor accrual information when it implemented GASB Statement 34
i n fiscal year 2003.
123
2006 2007
$ 2,603,568 $ 2,874,801
512,537 576,777
1 03,240 104, 128
3, 21 9,345 3,555,706
1 ,634,860 1 ,685,134
543, 917 547, 157
88, 106 90, 917
80,000 7,494
1 ,483,028 1 ,080,71 0
3,829,91 1 3,41 1 ,41 2
61 0,566 ( 1 44,294)
28,702 1 7,659
(2,239)
3, 916
130,000 648,126
156,463 669,701
$ 767,029 $ 5�5,407
$ 4,398, 1 93 $ 2,960,737
COUNTY OF VICTORIA, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS (1)
Last five fiscal years
General Fund
Reserved
Advances $
Adult Probation
Deferred expenditures
Unreserved
Total general fund $
All Other Governmental Funds
Unreserved, reported in
Special revenue funds
$
Capital project funds
Debt service funds
Total all other governmental funds
� --
( 1 ) Modified accrual basis of accounting
2003
494, 610
31 , 108
2,895,612
3,421 ,330
3,449,442
626,255
1 51 ,540
4,227,237
Fiscal Year
2004 2005 2006
.¬m~ ~~¬m¬¬
$ 297,670 $ 362, 219 $ 362,21 9
33,999 24, 513 26,882
275, 913
5,641 ,834 8, 139, 621 1 1 ,273,877
$ 5,973,503 $ 8,526,353 $ 1 1 ,938,891
$ 3,246,520 $ 2,460,438 $ 2,303,054
678,986 304,760
21 2, 1 87 252,772 1 26,807
$ 4, 1 37,693 $ 3, 01 7,970 $ 2,429,861
NOTE: Due to the changes in the County's fund structure initiated when GASB Statement No. 34 was implemented,
the fund balance information is available only beginning in 2003.
1 24
2007
$ 21 1 ,766
1 5,767
8,794
1 2,267,877
$ 1 2,504,204
$ 2,992,795
1 1 7,545
$ 3, 1 1 0,340
COUNTY OF VICTORIA, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS (1)
Last five fiscal years
Revenues
Taxes $
Fees of office and user fees
Intergovernmental
Fines and forfeitures
Investment income
Licenses and permits
Contributions
Miscellaneous
T olal revenues
Expenditures
Current
General government
Public safety
Highways and streets
Culture ancl recreation
Public health
Capital outlay
Debt service
Principal retirement
Interest and fiscal charges
Bond issue costs
Total expenditures
Excess (deficiency) of revenues over
expenditures
Other financing sources (uses)
Proceeds from refunding issue
Payment to escrow
Capital lease issuance
Capital lease refinancing issuance
Capital lease refinancing payments
Sales of assets
Transfers in
Transfers out
Payment from component unit
Payment to component unit
Total other financing sources (uses)
Change i n fund balances $
Debt service as a percentage of
non capital expenditures
( 1 ) Modified accrual basis of accounting
2003
1 7,902,538 $
2,207,983
10, 546,682
1 ,619,602
223,670
40,053
1 0,847
1 ,470, 100
34, 021, 475
1 3,068,81 3
8, 61 4,925
3, 331 , 1 07
1 , 1 90,649
3,554,074
2,971 ,375
975,000
592,782
84, 130
34,382,855
(361 ,380)
3,379,969
(3,292,343)
1 82,393
1 08,245
1 ,630,468
( 1 ,970,485)
8,400
(65,000)
(18,353)
�,733)

5.30
°4
Fiscal Year
2004 2005 2006
1 9,855,785 $ 21 , 232, 178 $ 23,030,801
2,595,533 2,472,287 2,820,340
1 0,035,336 9,830,274 9,432,658
1 ,403,048 1 ,463,626 1 ,589,568
272,257 585,742 1 ,028,984
36,451 33,524 37,074
36,466 1 6,085 1 3,389
1 , 1 67, 551 867,932 81 1 ,325
35,402,427 36, 501,648 38,764, 1 39
1 3,277,443 14, 278, 131 14, 921 ,068
8,963,262 9,283,373 1 0,682,752
3,808,439 4,337,766 4,327,674
1 , 1 57,450 1 ,241 ,058 1 ,298,407
3,489,244 3, 712, 723 3,903,367
542,487 643,352 1 55,250
1 , 1 60,000 1 , 225,000 1 ,265,000
440,642 41 7,093 377,923
32,838,967 35, 138,496 36,931 ,441
2,563,460 1 ,363,152 1 , 832,698
1 39,923 1 ,493,422
2,351 ,458
(2,272,716)
392,955 303,975 1 03,309
1 ,967,450 2,091 ,364 1 , 976,294
(2,205,907) (2,325,364) (2,581 ,294)
373, 163 69,975 991, 731
2,936,623
$ 1 ,433, 1 27 $ 2,824,429
5 1 4% 4.88%

NOTE: Due to the changes in the County's fund structure initiated when GASB Statement No. 34 was implemented,
the fund balance information is available only beginning in 2003.
1 25
2007
$ 24,21 8, 1 39
2,867, 1 61
8,985,485
1 ,742,243
1 ,21 3,768
33,967
1 1 ,51 0
882,228
39,954,501
1 5,770,505
1 1 ,406,589
4,048,835
1 ,460,636
4, 1 52,679
94,590
1 ,300,000
337,967
38,571 ,801
1, 382,700
446,095
65, 1 23
2,260,283
(2,908,409)
(136,908)
$ 1 ,245,792

COUNTY OF VICTORIA, TEXAS
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS (1)
Last ten fiscal years
Fiscal
Year
1 998
1 999
2000
2001
2002
2003
2004
2005
2006
2007
Change
1 998-2007
(1 )
NOTES:
Penalty
Ad Valorem and I nterest Sales Total
$ 1 0, 207, 928 $ 98, 641 $ 4, 382, 896 $ 14, 689, 465
1 0, 678, 829 1 00, 554 4, 503, 1 01 1 5, 282, 484
10, 946, 670 1 1 0, 413 4, 729, 825 1 5, 786, 908
1 1 , 271 , 769 1 1 6, 602 4, 992,320 16, 380, 691
1 2, 230, 688 1 1 8, 21 1 4, 858, 298 1 7,207, 1 97
1 2, 700,002 1 33, 220 4, 921 ,323 1 7, 754,545
1 4, 1 03,669 143, 147 5, 546, 861 1 9, 793, 677
1 5, 099, 1 57 1 99,308 6,005, 659 21 ,304, 1 24
1 5,676, 262 200,983 7, 1 53, 556 23, 030, 801
1 6, 671 ,552 1 74, 71 7 7, 371 , 870 24, 21 8, 1 39
63. 32% 77. 12% 68. 20% 64. 87%
Fiscal years 2005 through 2007 revenues are reported on the modified accrual basis of accounting.
Fiscal years 2004 and prior are reported on the budgetary (cash) basis of accounting.
Property tax rates have remained stable because of growth i n property tax values and the
addition of new construction values.
Sales tax revenues increased mainly due to an increase in the revenue base.
1 26
COUNTY OF VICTORIA, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
Real Proper Personal Proper
Fiscal
Year
1 998
1 999
2000
2001
2002
2003
2004
2005
2006
2007
( 1 )
NOTE:
Commercial and Rural-
Tax Residential Industrial Underdeveloped
Roll Propery Property Property Business
1 997 $ 821 ,360, 41 0 $ 1 , 638,077, 81 8 $ 31 6, 279, 760 $ 876, 321 ,300
1 998 873,496, 360 1 , 708, 1 57,760 31 7, 091 , 980 883, 545, 390
1 999 1 , 370,867, 91 0 1 , 390,41 1 , 865 328, 617,480 81 3, 040, 260
2000 1 , 462,005, 1 1 0 1 , 402,923,085 315, 673, 240 829, 047, 241
2001 1 , 51 5, 61 0, 71 0 1 , 328, 1 21 ,065 31 5, 270, 880 892, 71 0,483
2002 1 , 625, 755, 010 1 , 307,594,240 31 9, 775, 450 91 0, 1 36,402
2003 1 , 670, 101 , 235 1 , 285, 202, 470 320,599, 730 938, 958,351
2004 1 , 782, 8 1 1 , 934 1 ,237, 970, 296 335,934,884 1 , 035,824, 1 47
2005 1 , 905, 321 , 796 1 , 209,303,582 337,207,302 1 , 1 56, 1 36, 1 79
2006 2, 1 40,430,476 1 , 216, 832,909 749, 798,431 1 , 1 70, 881 , 088
Values on property for maintenance and operation and interest and sinking taxes.
Property exemptions differ from those allowed on road and bridge taxes.
Other
$ 46, 452,830
50, 696,790
36, 773,080
50, 523, 510
1 63, 977, 230
1 01 , 305, 21 0
92, 863, 880
1 32, 1 33, 780
1 58, 759, 680
233, 71 8,540
Property i n the County is reassessed annually. The County assesses properiy at 1 00 percent of actual
taxable value for all types of real and personal property. Tax rates are per $1 00 of assessed value.
SOURCE: Victoria County Tax Assessor/Collector
1 27
Total Estimated Assessed
Less: Total Taxable Direct Actual Value ( 1 ) as a
Tax Exempt Assessed Tax Taxable Percentage of
Real Property Value Rate Value Actual Value
$ 701 , 772, 290 $ 2, 996, 71 9,828 $ 0. 2810 $ 2, 996, 719, 828 1 00.00%
665,71 1 ,393 3, 1 67, 276, 887 0. 281 0 3, 1 67, 276, 887 1 00. 00%
696, 442, 858 3,243, 267, 737 0. 281 0 3, 243, 267,737 1 00. 00%
734, 781, 242 3, 325,390, 944 0. 2860 3, 325, 390,944 1 00. 00%
690, 637, 420 3, 525, 052, 948 0. 3035 3, 525, 052,948 1 00. 00%
707, 407, 494 3, 557, 1 58, 81 8 0.3201 3, 557, 1 58, 818 1 00.00%
754,830,546 3, 552, 895, 1 20 0.3536 3,552, 895, 1 20 1 00.00%
81 2,709,653 3, 71 1 ,965, 388 0. 3536 3, 71 1 , 965,388 1 00. 00%
806, 522, 045 3, 960, 206, 494 0.3486 3,960,206,494 1 00. 00%
1 , 261 ,388,725 4, 250, 272, 719 0.3436 4,250, 272, 71 9 1 00.00%
1 28
COUNTY OF VICTORIA, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
Real Proper Personal Proper
Commercial and Rural-
Fiscal Tax Residential Industrial Underdeveloped
Year Roll Property Property Property Business Other
1 998 1 997 $ 821 , 360, 41 0 $ 1 ,638, 077, 81 8 $ 31 6, 279, 760 $ 875, 871 , 300 $ 46, 452, 830
1 999 1 998 873, 496, 360 1 , 708, 1 57, 760 31 7, 091 , 980 883, 545, 390 50, 696, 790
2000 1 999 1 , 370,867, 91 0 1 , 390, 4 1 1 ,865 328, 617, 480 81 3, 040, 260 36, 773, 080
2001 2000 1 ,462, 005, 1 1 0 1 ,402, 923, 085 31 5, 673, 240 829, 047, 241 50, 523, 510
2002 2001 1 , 51 5, 61 0, 710 1 , 328, 1 21 ,065 31 5, 270, 880 892, 71 0,483 1 63, 977, 230
2003 2002 1 , 625, 755, 010 1 , 307,594,240 31 9, 775, 450 91 0, 1 36, 402 1 01 ,305, 210
2004 2003 1 , 670, 1 01 , 235 1 , 285, 202, 470 320, 599, 730 938, 958, 351 92, 863, 880
2005 2004 1 , 782, 81 1 ,934 1 , 237, 970, 296 335,934,884 1 , 035, 824, 1 47 1 32, 1 33, 780
2006 2005 1 , 905, 321 , 796 1 , 209, 303,582 337, 207, 302 1 , 1 56, 1 36, 1 79 1 58, 759,680
2007 2006 2, 1 40, 430, 476 1 , 216, 832,909 749, 798, 431 1 , 1 70, 881 , 088 233, 71 8, 540
(1 ) Values on property for road and bridge taxes.
Property exemptions differ from til0se al lowed on maintenance and operation and interest and sinking taxes.
NOTE: Property i n the County is reassessed annually. The County assesses propery at 1 00 percent of actual
taxable value for all types of real and personal property. Tax rates are per $1 00 of assessed value.
SOURCE: Victoria County Tax Assessor/Collector
1 29
Total Estimated Assessed
Less: Total Taxable Direct Actual Value ( 1 ) as a
Tax Exempt Assessed Tax Taxable Percentage of
Real Property Value Rate Value Actual Value
$ 791 , 854,450 $ 2, 906, 1 87,668
$
0.0600 $ 2, 906, 1 87,668 1 00.00%
760, 501 , 1 1 1 3, 072, 487, 1 69 0.0600 3, 072, 487, 169 1 00. 00%
793, 443, 106 3, 146,267,489 0.0600 3, 1 46, 267,489 1 00. 00%
836,884,962 3, 223,287,224 0.0550 3, 223, 287,224 1 00.00%
797,088,372 3, 41 8, 601 ,996 0.0450 3, 41 8, 601 ,996 1 00. 00%
81 7, 364, 812 3, 447, 201 ,500 0.0400 3,447, 201 ,500 1 00.00%
868,888, 776 3, 438, 836,890 0.0450 3,438, 836,890 1 00.00%
926,295,902 3, 598, 379, 139 0.0450 3,598,379, 1 39 1 00. 00%
924, 708, 177 3,842, 020, 362 0.0500 3,842,020, 362 1 00.00%
1 , 379, 896,539 4, 1 31 ,764, 905 0. 0550 4, 131 ,764, 905 1 00.00%
1 30
COUNTY OF VICTORIA, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
PER $100 OF ASSESSED VALUE
Last ten fiscal years
Count� Direct Rates Overla[ing Rates
Road & Victoria
Fiscal Debt General Bridge City of Navigation Junior Victoria Bloomington
Year Service Fund Fund Total Victoria District College I . S. D. I . S. D.
1 998 $ 0.0449 $ 0. 2361 $ 0. 0600 $ 0. 3410 $ 0.7000 $ 0. 01 31 $ 0. 1 422 $ 1 4250 $ 1 4400
1 999 0. 0449 0. 2361 0.0600 0. 341 0 0. 7000 0. 01 23 0. 1 41 3 1 4850 1 .4650
2000 0. 0299 0. 251 1 0.0600 0. 341 0 0. 7000 0. 041 8 0. 1 394 1 4750 1 . 5490
2001 0.0299 0. 2561 0. 0550 0. 341 0 0.7000 0. 0414 0. 1 394 1 . 5285 1 . 5350
2002 0. 0457 0. 2578 0.0450 0.3485 0.7000 0. 0401 0. 1 394 1 . 551 0 1 . 5800
2003 0.0437 0. 2764 0. 0400 0.3601 0.7000 0.0404 0. 1 394 1 .5535 1 . 6630
2004 0. 0461 0. 3075 0.0450 0.3986 0.7000 0.0402 0. 1491 1 .5535 1 . 6672
2005 0. 0435 0. 3101 0.0450 0. 3986 0. 6900 0.0386 0. 1 461 1 .5535 1 . 6433
2006 0.0368 0. 31 1 8 0.0500 0.3986 0. 6900 0.0369 0. 1 41 6 1 . 5535 1 .6433
2007 0.0379 0.3057 0.0550 0.3986 0.6900 0.0335 0. 1 41 6 1 4285 1 491 3
SOURCE: Victoria County Appraisal District
1 31
Overla(ing Rates
Ground Quai l
Industrial Nursery McFaddin W.C. I D W. C. I D V. CDD. V. CD. D. Water Creek
LSD. LSD. LSD. #1 #2 #2 #3 District M. UD. Total
$ 1 . 4400 $ 1 . 3850 $ 1 . 4400 $ 0.6446 $ 1 . 1 267 $ 0.0972 $ 0.0504 $ $ 0. 1 964 $1 0. 441 6
1 .4400 1 .41 00 1 . 5000 0.6450 1 . 1 71 0 0.0972 0.0500 0. 1 885 1 0 6463
1 .4700 1 . 3350 1 5000 0. 6629 1 . 1 229 0.0972 0.0500 0. 1 900 1 0.6742
1 .6200 1 . 3950 1 . 3650 0. 6427 1 . 0793 0.0976 0.0500 0. 1 900 1 0. 7249
1 . 9894 1 . 3850 1 .2400 0. 6551 1 0880 0.0979 0.0500 0. 1 900 1 1 .0544
1 . 9387 1 . 3700 1 . 5000 0.6262 1 . 0332 0. 1 1 03 0.0500 0. 1 900 1 1 . 2748
1 .8485 0.8998 1 . 5000 0. 61 46 1 . 01 87 0. 1 241 0.0500 0. 1 937 1 0. 7580
1 . 7361 1 .0250 1 .4500 0. 61 62 0. 991 1 0. 1 247 0.0477 0. 1 896 1 0. 6505
1 . 5893 1 . 3700 1 .4600 0.4947 0. 9016 0. 1 240 0.0460 0. 1 840 1 0.6335
1 . 3600 1 .2540 1 .4395 0.4687 0.9391 0. 1 1 20 0.0461 0. 0100 0. 1 777 9. 9906
1 32
COUNTY OF VICTORIA, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
(UNAUDITED)
Current Year and Nine Years Ago
Taxpa�er
I nvista
I nvista S A R L
Equistar Chemicals, LP
AEP Texas Central Co
E I Dupont De Nemours
Southwestern Bell Telephone Co.
Union Gas Operating Co.
Air Liquide America Corp.
South Texas Electric Coop Inc
Schlumberger Well Services Inc
Taxl2a�er
E. I Dupont De Nemours and Company
L yondell Petrochemical Company
Central Power and Light
Southwestern Bell Telephone Company
Air Liquide America Corporation
Carlisle Plastics, I nc
New York Life Insurance Company
Health Care Property Investors
Plaza Associates
First Victoria National Bank
SOURCE: Victoria County Tax AssessorlCollector
2007
$
$
1 998
$
$
1 33
Percentage
of Total County
Taxable Taxable
Assessed Assessed
Valuation Valuation
335,325,620 7. 89%
83,970, 400 1 . 98%
46, 527, 780 1 . 09%
40,556, 890 0. 95%
39,21 9, 1 20 0. 92%
28,446, 850 0. 67%
26,321 , 770 0. 62%
24,404, 270 0. 57%
23,658,780 0. 56%
21 , 601 , 620
0. 51%
670, 033, 100 1 5.76%
Percentage
of Total County
Taxable Taxable
Assessed Assessed
Valuation Valuation
530,526,300 1 7.70%
62, 627,700 2.09%
61 , 282, 680 2. 04%
43,524, 1 30 1 .45%
31 , 1 33, 820 1 . 04%
26,543, 790 0. 89%
22, 499,780 0.75%
14, 367,220 0.48%
14, 366,900 0.48%
1 0, 61 8,680 0.35%
817,4_91 ,000
.2727%
COUNTY OF VICTORIA, TEXAS
PROPERTY TAX LEVIES AND COLLECT/ONS(t)
Last four fiscal years
Taxes Levied Collections within the
for the
Fiscal Year of the Lev:
Fiscal Fiscal Year Total
Year (Original Levy) Adjustments Adjusted Levy Amount
2004 $ 1 2,565, 142 $ 13, 930 $ 12, 579,072 $ 12, 297, 626
2005 1 3, 1 28, 31 1 293, 542 1 3,421 , 853 1 3, 1 34, 288
2006 1 3,807, 127 (69, 838) 1 3, 737, 289 13, 471 ,286
2007 1 4,548, 615 (49,062) 1 4,499, 553 1 4, 1 99, 891
( 1 ) Tax levies and collections on maintenance and operation and interest and sinking only.
NOTE: Information for fiscal years 1 998 through 2003 was not readily available.
SOURCES: County of Victoria
Victoria County Tax Assessor/Collector
1 34
Percentage
of Levy
97.76%
97.86%
98.06%
97. 93%
Collections Total Collections to Date
i n Subsequent Percentage
Years Amount of Levy
$ 227, 043 $ 1 2, 524, 669 99. 57%
21 6, 851 1 3, 351 , 1 39 99. 47%
1 65, 1 59 1 3,636, 445 99.27%
49, 782 14, 249,673 98.28%
1 35
COUNTY OF VICTORIA, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS (1)
Last four fiscal years
Taxes Levied
for the
Fiscal Fiscal Year
Year (Original Levy) Adjustments
2004 $ 1 , 547, 823 $ 1 , 324
2005 1 ,61 9, 739 34,839
2006 1 , 921 , 399 ( 1 0, 937)
2007 2, 245, 643 (8, 1 30)
Total
Adjusted Levy
$ 1 , 549, 147
1 ,654, 578
1 , 91 0,462
2, 237, 51 3
( 1 ) Tax levies and collections on road and bridge only.
Collections within the
Fiscal Year of the Lev�
Percentage
Amount of Levy
$ 1 , 51 5, 798 97. 85%
1 , 620, 549 97. 94%
1 , 875, 1 02 98. 1 5%
2, 1 92, 993 98. 01%
NOTE: Information for fiscal years 1 998 through 2003 was not readily available.
SOURCES: County of Victoria
Victoria County Tax Assessor/Collector
1 36
Collections Total Collections to Date
i n Subsequent Percentage
Years Amount of Levy
$ 26,707 $ 1 , 542,505 99. 57%
25,442 1 , 645,991 99. 48%
21 , 81 1 1 , 896, 913 99. 29%
7, 384 2,200,377 98. 34%
1 37
COUNTY OF VICTORIA, TEXAS
SALES TAX REVENUE
Last ten fiscal years
Fiscal Year
1 998
1 999
2000
2001
2002
2003
2004
2005
2006
2007
Collections
$ 4, 382, 896
4, 503, 1 01
4, 729, 825
4, 992, 320
4, 858, 298
4, 921 , 323
5, 546, 861
5, 883, 458
6, 91 8, 443
7, 1 79, 370
NOTES: Collections reported on the budgetary (cash) basis of accounting.
Detailed information related to sales tax collections will be provided i n subsequent years.
The increase in sales tax revenue is due to an increase i n the revenue base.
1 38
COUNTY OF VICTORIA, TEXAS
DIRECT AND OVERLAPPING SALES TAX RATES
Last ten fscal years
Fiscal
Year
1 998
1 999
2000
2001
2002
2003
2004
2005
2006
2007
NOTES:
Direct Rate Overlapping Rates
County City of Victoria State of Texas Total
0. 50% 1 . 50% 6. 25% 8. 25%
0. 50% 1 . 50% 6. 25% 8. 25%
0. 50% 1 . 50% 6. 25% 8. 25%
0. 50% 1 . 50% 6. 25% 8. 25%
0. 50% 1 . 50% 6. 25% 8. 25%
0. 50% 1 . 50% 6. 25% 8. 25%
0. 50% 1 . 50% 6. 25% 8. 25%
0. 50% 1 . 50% 6. 25% 8. 25%
0. 50% 1 . 50% 6. 25% 8. 25%
0.50% 1 . 50% 6. 25% 8. 25%
Even though the total sales tax rate is 8. 25%, sales occuring outside the Ci ty of Victoria
City limits would only be taxed at 6. 75% which is the combination of the County and the
State of Texas sales tax rates.
Texas counties have the option of imposing an additional local sales tax of 0. 5% to 1 . 5%
for a combined total of state and local taxes of 8. 25%.
1 39
COUNTY OF VICTORIA, TEXAS
R
A
TIOS OF O{TSTANDING DEBT BY TYPE
Last ten fiscal years
Business-type
Governmental Activities Activities
General Total Percentage
Fiscal Certificates of Obligation Revenue Primary of Personal
Year Obligation Bonds Bonds Government Income
1 998 $ $ 1 1 , 970,000 $ 1 , 650,000 $ 1 3,620, 000 0. 94%
1 999 1 1 , 200,000 1 , 600,000 12, 800,000 0. 85%
2000 1 0, 375,000 1 , 545,000 1 1 , 920,000 0. 73%
2001 5, 000,000 9, 485,000 1 , 490,000 1 5,975, 000 0. 98%
2002 5, 000, 000 8, 575,000 1 , 425, 510 1 5,000, 51 0 0. 91 %
2003 5, 000, 000 7, 71 5,000 1 , 370,000 14, 085, 000 0. 82%
2004 4, 700,000 6, 855,000 1 , 305,000 1 2, 860,000 0. 71%
2005 4, 385, 000 5, 945,000 1 , 235,000 1 1 , 565,000 NIA
2006 4, 060, 000 5, 005,000 1 , 1 60, 000 1 0, 225, 000 NIA
2007 3, 720, 000 4, 045, 000 1 , 085, 000 8, 850,000 NIA
NOTES:
Details regarding the County's outstanding debt can be found i n the notes to the
financial statements.
NIA denotes information not available.
SOURCE: Count,of Victoria
1 40
Per
Capita
$ 1 64. 79
1 55.93
1 41 . 76
1 88. 58
1 76.62
1 64.94
149. 79
1 35. 03
1 1 8. 63
1 02.56
COUNTY OF VICTORIA, TEXAS
RA nos OF NET GENERAL BONDED DEBT OUTSTANDING
Last ten fiscal years
Ratio of Net Net
General Debt Service Net Bonded Debt Bonded Debt
Fiscal Obligation Funds Bonded to Assessed Per
Year Bonds Available Debt Value Ca
p
ita
1998 $ 11, 970,000 $ 641, 793 $ 11,328,207 0.31% $ 137.06
1999 11,200,000 708,224 10,491,776 0. 27% 127. 81
2000 10,375,000 368,023 10,006,977 0.25% 119. 01
2001 14,485,000 25, 218 14,459,782 0.36% 170.70
2002 13,575,000 144, 701 13,430,299 0.32% 158. 13
2003 12, 715,000 151, 540 12,563,460 0.29% 147. 12
2004 11, 555,000 212, 187 11,342,813 0.26% 132. 12
2005 10,330,000 252,772 10,077,228 0.22% 117. 66
2006 9,065,000 126,807 8,938,193 0.19% 103. 70
2007 7, 765, 000 117, 545 7, 647, 455 0. 14% 88.62
141
COUNTY OF VICTORIA, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
(UNAUDITED)
Decemler 31, 2007
Net Debt Outstanding
Date Amount
Direct Debt:
Percentage
Applicable
To County
Amount
Applicable
To County
County of Victoria 1 2/31/2007 $ 7, 647, 455 1 00. 00% $ 7, 647, 455
Overlapping Debt:
City of Victoria
Victoria County Navigation District
Victoria Junior College District
Victoria I ndependent School District
Industrial Independent School District
Victoria County Water Control and
I mprovement District #1
Victoria County Water Control and
I mprovement District #2
Total Overlapping Debt
9/30/2007
1 2/31/2007
8/31/2007
8/31/2007
8/31/2007
6/30/2007
9/30/2007
64, 996, 495 1 00.00% 64, 996, 495
2, 088, 012 1 00 00% 2, 088, 012
1 9, 200, 000 1 00. 00% 1 9, 200,000
1 23, 955, 623 1 00.00% 1 23, 955,623
6, 781 , 836 25. 46% 1 , 726, 655
91 9, 029 1 00.00% 91 9,029
71 8, 21 3 1 00. 00% 718, 213
218,659,208 21 3, 604, 027
Total
$ �26,306,663
$ 221 , 251 ,482
SOURCE: County of Victoria, City of Victoria, Victoria Junior College, Victoria Independent School District,
I ndustrial Independent School District, Victoria County Water Control and I mprovement District
Numbers 1 and 2.
1 42
COUNTY OF VICTORIA, TEXAS
LEGAL DEBT MARGIN INFORMA TlON
Last ten fscal years
Debt limit
Total net debt applicable
to limit
Legal debt margin
Total net debt applicable to
the limit as a percentage
of debt limit
1 998
$ 923, 51 8, 1 05
1 1 , 328,207
$ 912, 1 89,8�8
1 . 23%
1 43
1 999 2000 2001
$ 957,330, 1 65 $ 1 , 01 4, 478, 137 $ 1 , 015, 043, 047
1 0, 491 , 776 1 0,006, 977 1 4,459,782
$ 946, 838, 389 $ 1 ,004, 471 , 1 60 $ 1 ,000,583,265
1 . 1 0% 0.99% 1 42%
2002 2003 2004 2005 2006 2007
$ 1 ,053, 922, 592 $ 1 , 066, 1 41 ,578 $ 1 , 076, 931, 417 $ 1 , 1 31 , 168, 760 $ 1 , 1 91 , 682, 135 $ 1 , 377, 91 5,361
1 3, 430, 299 1 2, 563,460 1 1 ,342, 813 1 0, 077, 228 8,938, 1 93 7, 647, 455
$ 1 ,040, 492, 293 $ 1 , 053, 578, 1 1 8 $ 1 ,065,588, 604 $ 1 , 1 21 , 091 , 532 $ 1 , 1 82, 743,942 $ 1 , 370,267, 906
1 . 27% 1 . 18% 1 . 05% 0. 89% 0. 75% 0. 56%
Legal Debt Margi n Calculation for Fiscal Year 2007
Assessed value
Debt limit
Debt appl icable to limit
General obligation bonds
Less: Debt Service Fund Balance
Total amount of debt applicable to debt limit
Legal debt margin
1 44
$ 5, 51 1 , 661 ,444
1 , 377, 91 5, 361
7,765,000
1 1 7,545
7,647,455
$ 1 , 370, 267,906
COUNTY OF VICTORIA, TEXAS
DEMOGRAPHIC AND ECONOMIC STA TIS TICS
(UNAUDITED)
Last ten fiscal years
( 1 ) (2) (2) (3)
Fiscal Personal Per Capita Unemployment
Year Population Income (OOO's) Personal Income Rate
1 998 82, 650
$ 1 ,450, 755 $ 23,760 4. 5%
1 999 82,087 1 , 503,863 24,302 4. 2%
2000 84,088 1 , 643, 1 1 8 26,552 3. 5%
2001 84, 71 0 1 , 626,405 26,837 4. 0%
2002 84,932 1 ,650,480 27,234 5. 2%
2003 85,395 1 , 721 ,244 27, 952 5. 2%
2004 85,853 1 , 810, 364 29,399 5.2%
2005 85, 648 N/A N/A 5.4%
2006 86, 1 91 N/A N/A 4. 1 %
2007 86, 291 N/A N/A 3. 5%
NOTE: N/A denotes information not available.
SOURCES: ( 1 ) US Census Bureau
(2) U. S. Department of Commerce, Bureau of Economic Analysis - Estimates based on
Victoria County Area statistical data. Data for 2005 through 2007 i s not yet available.
(3) U. S. Department of Labor
1 45
COUNTY OF VICTORIA, TEXAS
PRINCIPAL EMPLOYERS
(UNAUDITED)
Current Year and Eight Years Ago
Employer
Victoria Independent School District
The Inteplast Group
Formosa Plastics
Citizens Medical Center
DeTar Healthcare System
Dow-Seadrift Operations
Alcoa
City of Victoria
Calhoun I ndependent School District
Invista
Employer
Victoria Independent School District
The Inteplast Group
Formosa Plastics
Koch-Invista (formerly DuPont)
Dow-Seadrift Operations
Alcoa
Citizens Medical Center
DeTar Healthcare System
City of Victoria
Cal houn Independent School District
2007
Emplo�ees
2, 1 1 4
1 , 700
1 , 500
1 ,400
1 , 000
660
630
61 6
61 3
61 0
1 0,843
1 999
Emplo�ees
2, 250
1 , 800
1 , 646
1 , 1 51
1 , 047
963
904
650
603
590
1 1 ,604
NOTES:
Based on Victoria Metropolitan Statistical Area, which includes Victoria,
Cal houn, Dewitt, Lavaca, Gonzales, Jackson and Goliad Counties.
Percentage
of Total Area
Emplo�ment
4.85%
3.90%
3.44%
3. 21 %
2. 29%
1 . 51 %
1 . 44%
1 .41 %
1 .41 %
1 .40%
24._86'
Percentage
of Total Area
Emplo�ment
5. 44%
4. 35%
3. 98%
2. 78%
2. 53%
2. 33%
2. 1 9%
1 . 57%
1 . 46%
1 .43%
28. 06'{
Data from 1 998 is not available. 1 999 information is presented for comparison purposes.
SOURCE: Victoria Economic Development Corporation
1 46
COUNTY OF VICTORIA, TEXAS
FULL- TIME-EQUIVALENT COUNTY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last five fiscal years
2003 2004 2005 2006
Function/Program
General government
County Judge 3 3 3 3
Comissioners' court 1 1 1 1
Records management
County clerk 1 6 1 6 1 6 1 6
Veterans' service officer 1 1 1 1
Heritage director 2 1 1 1
County court at law #1 2 2 2 2
County court at law #2 2 2 2 2
District court 1 0 1 0 1 0 1 0
District clerk 1 3 1 3 1 3 1 4
Justice of the peace #1 2 2 2 2
Justice of the peace #2 2 2 2 2
Justice of the peace #3 6 6 6 5
Justice of the peace # 3 3 3 3
Criminal district attorney 20 20 20 20
Election administrator 3 3 3 3
County auditor 8 8 8 8
County treasurer 6 6 5 6
Tax assessor-collector 1 5 1 5 1 5 1 5
Admi nistrative services 3 3 3 4
I nformation technology 5 5 5 7
Building maintenance 8 8 8 8
Juveni l e detention facility 63 58 62 68
Publ i c safety
Fire marshal 2 2 2 2
Sheriff 1 57 1 57 1 55 1 76
Constable #1 1 1 1 1
Constable #2 1 1 1 1
Constable #3 1 1 1 1
Constable #
1 1 1 1
Culture and recreation
Parks and recreation 3 2 2 2
Extension serice 7 7 7 7
Public health(includes flood/emg mgmt & health dept) 57 57 55 56
Highways and streets 43 39 40 40
Airport
1 4 1 4 1 9 1 9
Commissary
1 1 1 2
Navarro Project
4 1 1 2
Total
486 472 4Z 51 1
NOTES: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave).
Full-time-equivalent employment is calculated by dividing total labor hours by 2,080.
Fiscal year 2006 additions were mai nl y due to the increase i n the detention officers i n the Sheriffs
department; these additions were necessary to meet the jail standards ratio for officers to prisoners.
I nformation for fiscal years 1 998 through 2002 was not readily available.
147
2007
3
1
1
1 6
1
1
2
2
1 0
1 5
2
2
5
3
22
3
8
5
1 5
4
7
8
68
2
1 82
1
1
1
1
2
7
69
42
1 9
2
3
536
COUNTY OF VICTORIA, TEXAS
OPERA TlNG INDICA TORS BY FUNCTION/PROGRAM
Last two fscal years
FunctionlProgram
General government
County Court
Criminal cases filed
Criminal case dispositions
Civil cases filed
Civil case dispositions
Juvenile cases filed
Juvenile case dispositions
District Court
Criminal cases filed
Criminal case dispositions
Civil cases filed
Civil case dispositions
Justice of the Peace
Civil cases filed
Criminal cases filed
Elections Administrator
New registrations
Elections held
County Auditor
Accounts payable invoices processed
County Treasurer
Payroll checks processed
Tax Assesor-collector
Automobile Registrations
Public Safety
Sheriff
Emergency 91 1 calls received
Fire marshal
Fires
Culture and Recreation
Parks and recreation
Cabana rentals
Public health
Health Department
Immunizations administered
Adult/Child health screening visits
Dental cl i ni c vi sits
Enviromental l nspections/Permits
Mosquito control trips
Animal control calls
Highways and streets
Road and bridge precincts
Miles of roads overlayed
2006
2, 723
3,057
532
442
235
214
1 , 003
988
3, 1 70
3, 095
750
1 7,420
3,592
1 1
24,099
1 6,963
87,569
4,673
434
24
8, 320
582
7, 910
1 , 064
1 76
3, 1 74
30
NOTE:
I nformation for fiscal years 1 998 through 2006 was not readily available.
148
2007
2, 556
3, 301
578
656
146
1 76
848
91 6
3, 053
3, 006
788
1 5,043
2, 221
2
1 9,746
1 7, 003
88, 853
4,667
143
25
1 3, 661
2, 571
2, 484
2, 796
293
1 1 , 824
1 5
COUNTY OF VICTORIA, TEXAS
CAP/TAL ASSET STA TIS TICS BY FUNCTION/PROGRAM
Last five fiscal years
Fiscal Year
2003 2004 2005 2006 2007
Function/Program
General government
Buildings 8 8 8 9 9
Parking Lots 3 3 3 3 3
Publ i c safety
Sheriff
Jai l 1 1 1 1
Patrol units 52 57 51 53 58
Fire Marshal
Stations 1 1 1
Fire Trucks 3 3 3 4 5
Highways and streets
Roads (miles) N/A 590.75 590.75 596. 1 3 595.49
Bridges 90 90 90 90 90
Landfills 4 3 2 2 2
Culture and recreation
Lake - Acreage 95 95 95 95 95
Boat Ramps 2 2 2 2 2
Extension Office 1 1 1 1 1
4 H Activity Center 1 1 1 1 1
Public Health
Animal Shelter
1
Airport
T-Hanger
6 6 6 6 6
Terminal
1 1 1 1 1
Navarro Lse Project
Building
1 1 1
NOTES: N/A denotes i nformation not available.
I nformation for fiscal years 1 998 through 2002 was not readily available.
SOURCES: Various County Departments
Texas Department of Transportation
1 49
SINGLE AUDIT SECTION
HARRISON, WALDROP & UHEREK, L.L.P.
HWU
CERTIFIED PUBLIC ACCOL'�TAHIS
101 S. MAIN. SUITE 40
VICTORIA. TEXAS 77901-8<
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDI T OF FINANCIAL STATEMENTS PERFORMED I N
ACCORDANCE WITH GOVERNMENT AUDING STANDARDS
The Honorable County Judge and Members
of the Commissioners' Court
County of Victoria, Texas
STEPHEN W. VAN MAN EN. CPA
HAMILTON H. RfMOH. CPA
DENNIS C. CUIAl. CPA
ERIC L KUCERA. CPA
CLAYTON P. VAN PELT. CPA
ROBERT W. SCHAAR. CPA
MEUSSA M. TERRY. CPA
VOICE: (361) 573·3255
FAX: 1361) 573·9531
We have audited the financial statements of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
i nformation of County of Victoria, Texas (the "County") as of and for the year ended December 31 , 2007,
which collectively comprise the County's basic financial statements and have issued our report thereon
dated June 1 7, 2008. Our report was modified to include a reference to other auditors. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Goverment Auditing Standards, issued by the
Comptroller General of the United States. Other auditors audited the financial statements of the Citizens
Medical Center and the Victoria County Child Welfare Board, as described i n our report on the County's
financial statements. The financial statements were not audited in accordance with Goverment Auditing
Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the County's internal control over financial reporting
as a basis for designing our auditing procedures for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of
the County's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow ranagement or
employees, i n the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the County's ability to initiate, authorize, record, process, or report
financial data reliably in accordance with generally accepted accounting principles such that there is more
than a remote likelihood that a misstatement of the County's financial statements that is more than
i nconsequential will not be prevented or detected by the County's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the County's internal control.
Our consideration of internal control over financial reporting was for the l i mi ted purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
mi ght be significant deficiencies or material weaknesses. We did not identify any deficiencies i n internal
control over financial reporting that we consider to be material weaknesses, as described above.
MEMBERS OF
AMERICAN INSTITUTE OF CERTlflED PUBUC ACCOUNTANTS
TEXAS SOCIETY OF CERTIFlED PUBUC ACCOUNTANIS
Honorable County Judge and Members
of the Commi ssioners' Court
County of Victoria, Texas
Com pliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances on noncompliance or other matters that are required to be
reported under Goverment Auditing Standards.
Thi s report is intended solely for the information and use of the County Judge and members of
Commissioners' Court, management, and federal and state awarding agencies, and is not intended to be
and should not be used by anyone other than these specified parties.
� u�tt /
June 1 7, 2008
1 51
HARRISON, WALDROP & UHEREK, L.L.P.
HWU
C[RTIFIED PUBLIC ACCOUNTANTS
101 S, MAIN. SUITE 400
VICTORIA. lI:XAS 77901-81 42
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
The Honorable County Judge and Members
of the Commissioners' Court
County of Victoria, Texas
Compliance
STEPHEN W. VAN MANO". CPA
HAMILTON H. REDMON. CPA
DENNIS C. OHAL. CPA
ERIC l. KUCERA. CPA
CLAYION P. VAl" PElT. CPA
ROBERT W. SCHAAR, CPA
MELISSA M. TERRY, CPA
VOICE: (361 ) 573·3255
F/,X: (361 ) 5/3.9531
We have audited the compliance of the County of Victoria, Texas (the "County"), with the types of
compliance requirements described i n the U. S. Ofice of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each of its major federal programs for the year ended
December 31 , 2007. The County's major federal programs are identified i n the summary of auditor's
results section of the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is
the responsibility of the County's management. Our responsibility is to express an opinion on the County's
compliance based on our audit.
We conducted our audit of compliance i n accordance with auditing standards generally accepted i n the
United States of America; the standards applicable to financial audits contained i n Goverment Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Goverments, and Non-Profit Organizations. Those standards and OMB Circular A- 1 33
require that we pl an and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes exami ni ng, on a test basis, evidence about the
County's compliance with those requirements and performing such other procedures, as we considered
necessary i n the circumstances. We believe that our audit provides a reasonable basis for our opi nion.
Our audit does not provide a legal determination on the County's compli ance with those requirements.
In our opinion, the County complied, i n all material respects, with the requirements referred to above that
are appl icable to each of its major federal programs for the year ended December 31 , 2007.
Internal Control Over Compliance
The management of the County is responsible for establishing and mai ntaining effective internal control
over compliance with requirements of laws, regulations, contracts and grants applicable to federal
programs. In pl anni ng and performing our audit, we considered the County's internal control over
compliance with requirements that could have a direct and material effect on a major federal program in
order to determine our auditing procedures for the purpose of expressing an opinion on compliance, but
not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the County's internal control over
compliance.
MEMBERS OF
AMERICAN INSlITUTf Of CERTIHED PUBLIC ACCOUNTANTS
TEXAS SOCIETY Of CERTIFIED PUBLIC ACCOUNTANTS
The Honorable County Judge and Members
of the Commissioners' Court
County of Victoria, Texas
A control deficiency i n an entity's internal control over compliance exists when the design or operation of a
control does not allow management or employees, in the normal course of performing their assigned
functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program
on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies,
that adversely affects the entity's ability to admi nister a federal program such that there i s more than a
remote likelihood that noncompliance with a type of compliance requirement of a federal program that is
more than inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies that results in
more than a remote likelihood that material noncompliance with a type of compliance requirement of a
federal program will not be prevented or detected by the entity's internal control.
Our consideration of the internal control over compliance was for the limited purpose described i n the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies i n internal control
over compliance that we consider to be material weaknesses as defined above.
This report is intended solely for the information and use of the County Judge and members of
Commissioners' Court, management, and federal and state awarding agencies, and is not intended to be
and should not be used by anyone other than these specified parties.
�, {�-(lk /
June 1 7, 2008
1 53
COUNTY OF VICTORIA, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
For the year ended December 31, 2007
Federal Grantor/Pass-Through GrantorlProgram Title
FEDERAL EXPENDITURES
U. S. Department of Transportation
Airport I mprovement Grant
Airport I mprovement Grant
Airport I mprovement Grant
Airport I mprovement Grant
Passed T/lrough the Texas Department of Transportation
Click IUTicket
Total Texas Department of Transportation
Total U. S. Department of Transportation
U. S. Department of Homeland Security
Passed Through the Transoration Securit Administration
Airport Law Enforcement Personnel Program
Passed Through the Goveror's Division of Emergency
Management
Hazard Mitigation Grant
Hazard Mitigation Grant
State Homeland Security Program
Total Governor's Division of Emergency Management
Total U. S. Department of Homeland Security
U. S. Department of Justice
SCAAP Program
Bulletproof Vest Partnership Program
Federal
CFDA
Number
20. 106
20. 1 06
20. 106
20. 1 06
20.600
97.090
97. 039
97. 039
97.073
1 6. 606
1 6. 607
Passed Through the Ofice of Goveror of Texas, Criminal Justice Division
Victims Coordinator Liason Grant 16. 575
Victims Coordinator Li ason Grant 16. 575
Victims Coordinator Li ason Grant 16. 575
Victims Coordinator Liason Grant 16. 575
Other Victims Assistance Grant
Total Office of Governor of Texas, Criminal Justice Division
Total U.S. Department of Justice
1 54
16. 575
Agency or
Pass-through
Number
3-48-021 9- 1 7 -03
3-48-021 9- 1 8-04
3-48-021 9-1 9-06
3-48-021 9-20-07
587XXF5051
HSTS0208HSLR354
FEMA-1 709-DR
FEMA- 1 624-DR
2006-GE-T6-0068
2007 -AP-BX-0724
N/A
700597
80201 7
700604
802025
0602864.A
Expenditures
$
72,255
7, 1 20
6, 539
1 , 002,290
1 , 088,204
7, 655
7,655
1 ,095,859
2,350
66,001
78,352
48,066
1 92, 41 9
1 94,769
72, 255
4, 065
76,320
20, 1 87
1 7, 949
23, 774
1 4,298
32,625
1 08,833
1 85, 1 53
(continued)
COUNTY OF VICTORIA, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
For the year ended December 31, 2007
Federal
CFDA
Federal Grantor/Pass-Through GrantorlProgram Title Number
FEDERAL EXPENDITURES - (Continued)
U. S. Department of Agriculture
Commodity Suppl emental Food Program 1 0. 565
Passed Through Texas Department of State Health Services
Special Supplemental Nutrition Program for Women,
I nfants, and Children 1 0. 557
Special Supplemental Nutrition Program for Women,
Infants, and Children 1 0.557
Total Texas Department of State Health Services
Passed Through Texas Department of Health and Human
Services Commission
School Breakfast Program 1 0.553
National School Lunch Program 1 0. 555
Total Texas Department of Health and Human Services
Commission
Total U. S. Department of Agriculture
U, S, Department of Health and Human Services
Passed Through Texas Deparment of State Health Services
HIV Prevention Activities - Health Department Based 93.940
HI V Prevention Activities - Health Department Based 93. 940
PHR 8 - Biotterrorism Preparedness 93.283
Biotterrorism Preparedness 93.283
I mmunization Grant 93. 268
I mmunization Grant 93. 268
RLSS/LPHS 93. 991
RLSS/LPHS 93. 991
Total Texas Department of State Health Services
Passed Through Alamo Area Development Corporation
Ryan White Title I I - 2007 93. 91 7
Ryan White Title I I - 2008 93. 91 7
Total Alamo Area Development Corporation
Passed Through Texas Juvenile Probation Commission
Federal Foster Care Grant Title IV-E 93.658
Federal Foster Care Grant Title IV-E 93. 658
Total Texas Juvenile Probation Commission
1 55
Agency or
Pass-through
Number Ex�enditures
NIA $ 7, 707
2007-020857 547, 51 6
2008-024638
222, 589
770, 1 05
TX-235-2007 22, 420
TX-235-2007
40, 475
62, 895
840,707
7460024452-2007 66, 81 5
2008-023833 21 , 755
7460024452-06-05A 70, 391
2008-023054 1 6, 468
7460024452-2007 1 36, 702
2008-023773 56, 774
7460024452-A2007 1 52, 31 6
2008-0245000 48, 897
570, 1 1 8
N/A 43,352
N/A
1 1 4, 678
1 58,030
T JPC-E-06-235 2, 31 2
T JPC-E-07-235
273, 187
275, 499
(continued)
COUNTY OF VICTORIA, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
For the year ended December 31, 2007
Federal Grantor/Pass-Through GrantorlProgram Title
FEDERAL EXPENDITURES - (Continued)
Federal
CFDA
Number
U. S. Department of Health and Human Services - (Continued)
Passed Through Texas Department of Family and Protective
Services
Title IV-E Legal Services 93.658
Title IV-E Legal Services 93.658
Total Texas Department of Family and Protective Services
Total U. S. Department of Health and Human Services
U. S. Elections Assistance Commission
Passed Through Texas Secretary of State - Elections Division
County Education Fund 39. 01 1
Total U. S. Elections Assistance Commission
U. S. Department of Housing and Urban Development
Passed Through Texas Department of Health in Bexar County
HOPWA 2006-2007 1 4. 241
HOPWA 2007-2008 1 4. 241
Total U. S. Department of Housing and Urban Development
TOTAL FEDERAL EXPENDITURES
STATE EXPENDITURES
Texas Department of State Health Services
Zoonosis Control N/A
Diabetes-Comm. Diabetes Services N/A
Diabetes-Comm. Diabetes Services N/A
Passed Through Texas Department of Health in Bexar County
HI V Treatment, Health and Social Services - 2006/2007 N/A
HI V Treatment, Health and Social Services - 2007 N/A
HI V Treatment, Health and Social Services - 2007/2008 N/A
Total Texas Department of Health in Bexar County
Total Texas Department of State Health Services
1 56
Agency or
Pass-through
Number
2005085080
233581 51
77530
N/A
2007/2008 VCCHD
2008-022852
2007 -020953-001
2008-022754
N/A
N/A
2007/2008 VCCHD-01
Expenditures
$ 31 , 063
14, 202
45,265
1 , 048, 912
6, 348
6, 348
1 1 , 1 94
44,855
56, 049
3,427,797
3,405
47, 377
1 9, 976
70, 758
1 8, 591
31 , 1 1 5
1 9,530
69,236
1 39,994
(continued)
COUNTY OF VICTORIA, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AND STA TE AWARDS
For the year ended December 31, 2007
Federal Grantor/Pass-Through Grantor/Program Title
STATE EXPENDITURES - (Continued)
Texas Juvenile Probation Commission
Diversionary Placement Fund
State Aid
State Aid
Progressive Santions JPO
Progressive Santions JPO
Progressive Santions 123 Program
Progressive Santions 1 23 Program
Intensive Community Based Program
Community Corrections Assistance Program
Community Corrections Assistance Program
Salary Adjustment
Salary Adjustment
Total Texas Juvenile Probation Commission
Texas Task Force on Indigent Defense
Indigent Defense
TOTAL STATE EXPENDITURES
TOTAL FEDERAL AND STATE EXPENDITURES
Federal
CFDA
Number
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Agency or
Pass-through
Number
Grant H
T JPC-A-2007-235
T JPC-A-2008-235
T JPC-F-2007 -235
T JPC-F-2008-235
T JPC-G-2007 -235
T JPC-G-2008-235
T JPC-X-2008-235
TJPC-Y-2007-235
T JPC-Y-2008-235
T JPC-Z-2007-235
T JPC-Z-2008-235
N/A
See accompanying notes to schedule of expenditures of federal and state awards.
1 57
Expenditures
$ 7, 920
55,550
39, 680
54,894
39,21 0
1 7,854
1 2, 755
1 1 ,433
1 28, 906
92, 075
48, 924
42, 750
551 , 951
45, 501
737,446
$ 4, 1 65,243
COUNTY OF VICTORIA, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STA TE AWARDS
For the year ended December 31, 2007
NOTE 1 : BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal and state awards includes the federal and
state grant activity of the County and is presented on the modified accrual basis of accounting. The
information in this schedule is presented in accordance with the requirements of OMB Circular A-133,
Audits of States, Local Goverments, and Non-Profit Organizations. Therefore, some amounts
presented i n this schedule may differ from amounts presented in, or used i n the preparation of the
financial statements.
1 58
COUNTY OF VICTORIA, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the year ended December 31, 2007
Section I Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unqualified
Internal control over financial reporting:

Material weakness( es) identified?

Significant deficiency(ies) identified
that islare not considered to be
material weakness(es)?
Noncompliance material to financial
statements noted?
Federal Awards
Internal control over major programs:

Material weakness( es) identified?

Significant deficiency(ies) identified
that is/are not considered to be
material weakness( es)?
Dyes
Dyes
Dyes
Dyes
D yes
Type of auditor's report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are
required to be reported in accordance
with Section 51 O(a) of Circular A-133?
Identification of major programs:
D yes
� no
� none reported
� no
� no
� none reported
� no
CFDA Number(s) Name of Federal Program or Cluster
20. 106
N/A
Dollar threshold used to distinguish
between type A and type B programs: $300,000
Auditee qualified as low-risk auditee?
Airport l rproverent Grant ''
-
Texas Juvenile Probation Commission-2007/2008-235
� yes D no
Section II Financial Statement Findings
None noted
Section III Federal Award Findings and Questioned Costs
None noted
1 59
COUNTY OF VICTORIA, TEXAS
SCHEDULE OF PRIOR AUDIT FINDINGS
For the year ended December 31, 2007
None were reported.
1 60

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