The City of Alamo Heights Comprehensive Annual Financial Report for the year ended September 30, 2016 provides an unmodified independent auditor's opinion and summarizes the city's financial performance and position. Key highlights include an increase in net position from both governmental and business activities, growth in the general fund balance to over 3 months of average expenditures, and a rise in the water utility's unrestricted net position. The report complies with accounting standards and presents the city's financial statements, notes, and required supplemental information.

1. City of Alamo Heights
Comprehensive Annual
Financial Report
Year Ended September 30, 2016

2. What’s in the Comprehensive
Annual Financial Report (CAFR)
2
• Introduction
• Independent Auditor’s Report
• Management Discussion & Analysis
• Government‐wide Financial Statements
• Fund Financial Statements
• Notes to the Financial Statements
• Required Supplemental Information
• Supplemental Combining & Individual Financial
Statements & Schedules
• Statistical Tables

3. Independent Auditor’s Report
3
• Audit Standards to follow
– Generally Accepted Auditing Standards
• Purpose
– To form an independent opinion on whether the
financial statements are presented in accordance with
Generally Accepted Accounting Principles (GAAP).
• Independent opinion on the financial statements
– Audit is “unmodified”
• This is the best opinion that can be given for an independent
audit. It means we have no modifying statements in our opinion
letter.

4. Management Discussion & Analysis
4
• Financial Highlights
• Overview of the Financial Statements
• Government‐wide Financial Analysis
• Financial Analysis of the City’s Funds
• Budgetary Highlights
• Capital Assets and Debt
• Requests for Information

5. Financial Highlights
5
• Government‐Wide Financial Statements
– Tax Revenues increased $415K due to increases in property values.
– Net Position increased from governmental activities by $846K and
increased by $114k for business activities.
– Assets exceeded liabilities by $14.3 million of which $2.5 million is
unrestricted for the City’s operations; $1.7 million for governmental
activities and $748K for the utility operations.
– The City complied with the Public Funds Investment Act.

6. Financial Highlights (Continued)
6
GOVERNMENTAL BUSINESS‐TYPE
ACTIVITIES ACTIVITIES
2016 2015 2016 2015
Net Position
Net Investment in Capital Assets $ 3,346,580 $ 3,385,358 $ 8,072,064 $ 8,292,081
Restricted 369,349 331,787 ‐ ‐
Unrestricted 1,728,809 881,015 748,423 414,360
TOTAL NET POSITION $ 5,444,738 $ 4,598,160 $ 8,820,487 $ 8,706,441

7. Financial Highlights (Continued)
7
• Fund Financial Statements
– The general fund’s adopted budget anticipated a
reduction of fund balance by $573K; actual results
increased fund balance by $296K.
– Revenues were more than budget by $240K due to
increased Telecom lease proceeds and higher than
expected sales tax receipts.
– Expenditures were less than budget by $922K due to
unfilled vacancies and turnover in personnel.

8. Financial Highlights (Continued)
8
• Fund Financial Statements (Continued)
– Governmental funds overall fund balance increased
$842,423.
• General fund decreased $296K which included transfers of
$757K to other funds for street maintenance, capital projects
and capital replacement.
• Capital projects fund increased $6K primarily due transfers from
the general fund.
• The street maintenance fund increased $380K primarily due
transfers from the general fund.
• All other government funds increased $160K.

9. Financial Highlights (Continued)
9
CAPITAL OTHER TOTAL
GENERAL PROJECTS STREET GOVERNMENTAL GOVERNMENTAL
FUND FUND MAINTENANCE FUNDS FUNDS
FUND BALANCES
Non‐Spendable ‐ Prepaids $ 86,642 $ ‐ $ ‐ $ ‐ $ 86,642
Restricted for:
Confiscated Property ‐ ‐ ‐ 11,977 11,977
Court Security ‐ ‐ - 97,208 97,208
Community Programs ‐ ‐ ‐ 96,233 96,233
Police Training ‐ ‐ ‐ 31,403 31,403
Court Technology ‐ ‐ ‐ 27,806 27,806
Comprehensive Plan ‐ ‐ ‐ 9,743 9,743
Street Maintenance ‐ ‐ 9,868 ‐ 9,868
Animal Services ‐ ‐ ‐ 12,034 12,034
Debt Service ‐ ‐ ‐ 73,077 73,077
Committed for:
Capital Replacement ‐ ‐ ‐ 659,640 659,640
Street Maintenance ‐ ‐ 396,763 ‐ 396,763
Comprehensive Plan ‐ ‐ ‐ 20,000 20,000
Assigned
Capital Projects ‐ 961,694 ‐ ‐ 961,694
Unassigned 3,545,922 ‐ ‐ ‐ 3,545,922
Total Fund Balances $ 3,632,564 $ 961,694 $ 406,631 $ 1,039,121 $ 6,040,010

10. Financial Highlights (Continued)
10
• Fund Financial Statements
Governmental Funds:
– The City’s unassigned fund balance (general fund) at
September 30, 2016 was $3.5 million, an increase of
$300K from the prior year.
– Unassigned fund balance is approximately 3 months of
average annual expenditures for the general fund.
– The City’s restricted fund balance at September 30, 2016
was $369K.

11. Financial Highlights (Continued)
11
• Fund Financial Statements (Continued)
Proprietary Fund:
– The water fund revenue increased by $146K from 2015;
expenses decreased $91K from 2015.
– Water fund net position increased from $8.7 million to
$8.8 million. $748K is unrestricted.
– Water fund unrestricted net position is approximately 3
month of average annual expenses.
– At September 30, 2016 the City had working capital of
$1.1 million for the utility operations; an increase by
$286K from prior year’s working capital ratio.

12. Letter on Conduct of Audit
12
• Accounting Policies
• Accounting Estimates
• Difficulties
• Misstatements
• Disagreements
• Management Representations
• Consultations with other Independent Accountants
• Compliance with the Public Funds Investment Act

13. QUESTIONS?
13
CONTACT INFORMATION
Michael Del Toro, CPA
mdeltoro@abipcpa.com
Jeremy K. Barbatto, CPA
jbarbatto@abipcpa.com
(210) 341‐2581