City of Humble, Texas

1 City of Humble, Texas Comprehensive Annual Financial Report October 1, 2015 through September 30, 2016. CITY OF HUMBLE, Texas . MERLE AARON. Mayor City Officials ANDY CURRY RAY CALFEE NORMAN FUNDERBURK ALLAN STEAGALL David Pierce Councilman Councilman Councilman Councilman Councilman DARRELL BOESKE. JASON STUEBE. City Manager City Secretary September 30, 2016. COMPREHENSIVE ANNUAL. FINANCIAL REPORT. City of Humble, Texas For the fiscal year ended September 30, 2016. Report Prepared By City Manager and Members of His Staff CITY OF HUMBLE, Texas .

2 COMPREHENSIVE ANNUAL FINANCIAL REPORT. TABLE OF CONTENTS. Page Introductory Section: Letter of Transmittal i GFOA Certificate of Achievement v Principal City Officials vi Organization Chart vii Financial Section: Report of Independent Auditors 1. Management's Discussion and Analysis 4. Basic Financial Statements Government-wide Financial Statements: Statement of Net Position 17. Statement of Activities 18. Fund Financial Statements: Balance Sheet - Governmental Funds 20. Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 23.

3 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 24. Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 26. Statement of Net Position - Proprietary Fund 27. Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Fund 28. Statement of Cash Flows - Proprietary Fund 29. Notes to the Basic Financial Statements 30. Required Supplementary Information: General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 59.

4 General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Red Light Camera Fund 61. Notes To Required Supplementary Budget Information 62. Required Pension System Supplementary Information 63. Notes to Required Supplementary Budget Information - Pensions 65. Required Other Post-Employment Benefits Supplementary Information 66. Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Debt Service Fund: 67. Capital Projects Fund 68. CITY OF HUMBLE, Texas . COMPREHENSIVE ANNUAL FINANCIAL REPORT.

5 TABLE OF CONTENTS (continued). Page Statistical Section: Net Position by Component 70. Changes in Net Position 72. Fund Balances of Governmental Funds 76. Changes in Fund Balances of Governmental Funds 78. Assessed Value and Estimated Actual Value of Taxable Property 80. Principal Property Taxpayers 81. Property Tax Rates - Direct and Overlapping Governments 82. Property Tax Levies and Collections 84. Taxable Sales by Category 86. Sales Tax Revenue Payers by Industry 88. Ratios of Outstanding Debt by Type 90. Direct and Overlapping Governmental Activities Debt 91.

6 Demographic and Economic Statistics 92. Principal Employers 93. Full-time Equivalent City Government Employees by Function 94. Operating Indicators by Function 96. Capital Assets Statistics by Function 98. Introductory Section March 31, 2017 . To the Honorable Mayor and Members of the City Council of the City of Humble, Texas The Comprehensive Annual Financial Report (CAFR) of the City of Humble, Texas (the City ) for the fiscal year ended September 30, 2016, is hereby submitted. Responsibility for the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City.

7 We believe the data, as presented, is accurate in all material respects and that it is reported in a manner designed to present fairly the financial position and results of operations of the City as measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Whitley Penn, a firm of licensed certified public accountants, has issued an unqualified ( clean ) opinion on the City of Humble's financial statements for the year ended September 30, 2016.

8 The independent auditor's report is located in the front of the financial section of this report. Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A. complements this letter of transmittal and should be read in conjunction with it. Profile of the City The City is located approximately 18 miles north of downtown Houston, in the northeast quadrant of Harris County. The City occupies approximately 10 square miles, and serves a diverse population of more than 15,000.

9 The City was incorporated in 1933 and chartered as a home-rule city under Texas law in 1970. The City operates under the Council-Mayor-Manager form of government with five Council members and a Mayor serving staggered two-year terms. The Mayor presides at meetings of the City Council and exercises other powers and performs other duties as are or may be conferred and imposed upon him by the City Charter and City Ordinances. The Mayor shall be recognized as the head of the City Government for all ceremonial purposes, by the court for civil process and by the government for purposes of military law.

10 The City Council enacts ordinances, determines policies, and adopts the annual budget. The City Manager is appointed by the City Council and is responsible for the daily management of the City. A full range of municipal services is provided by the City of Humble including police, fire, emergency medical services, maintenance of streets and infrastructure, maintenance of the treated water distribution system, both sanitary and storm sewer collection and transmission systems, parks, civic center, arena complex, senior activity center and performing arts center, and general administrative services.