This document is the City of Alamo Heights' Comprehensive Annual Financial Report for the year ended September 30, 2015. It includes the independent auditor's unmodified opinion that the financial statements are presented in accordance with GAAP. The report shows that total net position decreased by $1.9 million from the prior year, primarily due to a $4.4 million reduction required by the adoption of GASB 68 for pension accounting. However, assets exceeded liabilities by $13.3 million as of September 30, 2015. The general fund balance decreased by $93,000 while water fund net position decreased from $9.3 million to $8.7 million.

1. City of Alamo Heights
Comprehensive Annual
Financial Report
Year Ended September 30, 2015

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 $195k due to increases in property values.
– The City adopted GASB 68, Accounting and Financial reporting for
Pensions which required a restatement of net position. The
restatement reduced governmental activities net position by $4.4
million and $549k to the business activities.
– Net Position increased from governmental activities by $110K and
decreased by $123k for business activities prior to the GASB 68
restatement.
– Assets exceeded liabilities by $13.3 million of which $1.3 million is
unrestricted for the city’s operations; $881k for governmental
activities and $414k for the utility operations.
– At September 30, 2015 the City recorded $5.4million in net pension
liability ; $4.8 million for governmental activities and $589k in
business activities.
– The City complied with the Public Funds Investment Act.

6. Financial Highlights (Continued)
6
GOVERNMENTAL BUSINESS‐TYPE
ACTIVITIES ACTIVITIES
2015 2014 2015 2014
Net Position
Net Investment in Capital Assets 3,385,358 2,011,074 8,292,081 7,480,502
Restricted 331,787 780,392 ‐ ‐
Unrestricted 881,015 6,137,390 414,360 1,897,524
TOTAL NET POSITION $ 4,598,160 $ 8,928,856 $ 8,706,441 $ 9,378,026

7. Financial Highlights (Continued)
7
• Fund Financial Statements
– The general fund’s adopted budget anticipated a
reduction of fund balance by $163k; actual results
decreased fund balance by $93k.
– Revenues were less than budget by $132k due to lower
than expected license and permits.
– Expenditures were less than budget by $559k due to
unfilled vacancies and turnover in personnel.

8. Financial Highlights (Continued)
8
• Fund Financial Statements (Continued)
– Governmental funds overall fund balance decreased
$1,905,629.
• General fund decreased $93k which included transfers of $797k
to other funds for street maintenance, capital projects and
capital replacement.
• Capital Projects fund decreased $709k primarily due
construction expenditures.
• The street maintenance fund decreased $1 million.
• All other government funds decreased $81k.

9. Financial Highlights (Continued)
9
CAPITAL OTHER TOTAL
GENERAL PROJECTS STREET GOVERNMENTAL GOVERNMENTAL
FUND FUND MAINTENANCE FUNDS FUNDS
FUND BALANCES
Non‐Spendable ‐ Prepaids 78,982 ‐ ‐ ‐ 78,982
Restricted for:
Confiscated Property ‐ ‐ ‐ 12,654 12,654
Court Security ‐ ‐ 86,406 86,406
Community Programs ‐ ‐ ‐ 110,074 110,074
Police Training ‐ ‐ ‐ 30,777 30,777
Court Technology ‐ ‐ ‐ 18,592 18,592
Comprehensive Plan ‐ ‐ ‐ 9,393 9,393
Street Maintenance
Dog Park ‐ ‐ ‐ 8,035 8,035
Debt Service ‐ ‐ ‐ 55,856 55,856
Committed for:
Capital Replacement ‐ ‐ ‐ 527,378 527,378
Street Maintenance ‐ ‐ 26,763 ‐ 26,763
Comprehensive Plan ‐ ‐ ‐ 20,000 20,000
Assigned
Capital Projects ‐ CIED ‐ 955,423 ‐ ‐ 955,423
Unassigned 3,257,254 ‐ ‐ ‐ 3,257,254
Total Fund Balances 3,336,236 955,423 26,763 879,165 5,197,587

10. Financial Highlights (Continued)
10
• Fund Financial Statements
– The water fund revenue decreased by $107k from 2014;
expenses increased $177k from 2014.
– Water fund net position decreased from $9.3 million to
$8.7 million. $414k is unrestricted.
– General Fund unassigned fund balance is approximately
5 months of average annual expenses.
– Water fund net position is approximately 2 month of
average annual expenses.

11. Letter on Conduct of Audit
11
• Accounting Policies
– GASB #68 Accounting and Financial Reporting for Pensions.
• Accounting Estimates
• Difficulties
• Misstatements
• Disagreements
• Management Representations
• Consultations with other Independent Accountants
• Compliance with the Public Funds Investment Act

12. QUESTIONS?
12
CONTACT INFORMATION
Michael Del Toro, CPA
mdeltoro@abipcpa.com
Janet Pitman, CPA
jpitman@abipcpa.com
(210) 341‐2581