2008 Victoria County CAFR

COUNTY OF VICTORIA, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REpORT
FOR THE YEAR ENDED

DECEMBER 31, 2008
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the year ended December 31, 2008
Prepared by: County Auditor's Office

Judy McAdams, CPA
Victoria County Auditor
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
INTRODUCTORY SECTION
County Auditor's Letter of Transmittal "." ." "" " .. .. " " " """" . , """ " ." " ""
" . .. .. .. .. " , ." " "., , " ."
Organizational Chart.."" . ."" .... . . . . ...." . . "" ....." ......"" ..........".""" .................." . . . . ".......... .... v
Directory of Principal Officials .. ",,,,, ,. . ,,,,,.,, .. , .....................................................................".......... vi
FINANCIAL SECTION
Independent Auditors' Report. " ..." . "" ." . ... ..... " . , " "" " . .. " . . . .. "
.. , . . . . ". '" ." . ". "" . . "" . . . . " . ." ..
." .. ... 1
Management's Discussion and Analysis"" . . , , "" " " 3
Basic Financial Statements
Government-wide Financial Statements

Statement of Net Assets" .. " ..."" .." . . . """ ".""" ....".,, " .. ". " .. "".""". , ,"". """ ." "" "." ."". 13
Statement of Activities ."."."." """ " ." " """ "" , """ "" . " """"""" " ,, "" """ ,,
. . , " ",, . ". " . ." .. . 15
Fund Financial Statements

Balance Sheet" Governmental Funds " "" "" "" ... ,,. """"" .""""""."""""".",,.... ,,,,.. ,,..
". 17
Reconciliation of Total Governmental Fund Balance to Net Assets of
Governmental Activities "..."............. . ." .." .......". ."."." ...." ."" ........... .". .................".."
. . 1B
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds .... . . . " ......"" ........." .... "." .."." ............" ..... ." ....... ... . ." .........." .." .
. .. 19
Reconciliation of the Governmental Funds Statement o f Revenues, Expenditures,
and Changes in Fund Balances to Statement of Activities " """ .." .""""""""".,,.,,,," . . 20
Statement of Net Assets" Proprietary Funds . """"."" ."""""""" ..." ."""" ..." .."",, ....,,,, . . . 21
Statement of Revenues, Expenses, and Changes in Fund Net Assets"
Proprietary Funds " " ......" .... " ....". . . .. " ." ......" ... """'"'' ..."."" . ." ." .." ...."""." ....."" ..." .
. . 22
Statement of Cash Flows" Proprietary Funds " " .."""" ...." . . . , ,.. . """"""" .." . ... ,, . . ,,""" "" 23
Statement of Fiduciary Net Assets" Fiduciary Funds " ....... ................. " ..........." . . .......".. .. 25
Statement of C hanges in Fiduciary Net Assets" Fiduciary Funds . .. ..... . . """"" .... ,,.. . .. .. .. . . 26
Statement of Net Assets" Component Units ." .............................. " ......" ..............." .........
. 27
Statement of Activities" Component Units . . . ... . . . .. . . ... .
. . . . . . . ..... . . .
. . . ... . ..... . . .. ... ... .... . ....... .. ... .. 28
Notes to Financial Statements ......... . .. . . . . . . ...... . . . . . ...... . . . . . . . . . . ..... . .. . . . . . . . . . . ............. . . . . . . . ...... . . . .... 30
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance

Budget and Actual - General Fund . . . . . ... .. . .. . . .. . . . . . . ..... .. ..
.. ........ . ... . . . .. . . . . . .. .... . ..... .. .. ... . . ...
... 71
Notes t o Required Supplementary Information ............................................... ...... . . ............. . 72
Combining and Individual Fund Statements and Schedules
Governmental Funds
Combining Statements
Combining Balance Sheet - All Nonmajor Governmental Funds .. ................................... .. 73
TABLE OF CONTENTS
(Continued)
FINANCIAL SECTION · (Continued)
Combining and Individual Fund Statements and Schedules · (Continued)
Governmental Funds (Continued)

Combining Statements (Continued)
Combining Statement of Revenues, Expe nditures, and Changes in Fund
Balances All Nonmajor Governmental Funds ..... ................ ....... . . .. . ........ .... ...... ........... . 74
Nonmajor Special Revenue Funds ............... ... . . ....... . ..... .. .. .. ... , . . ..... . .. .. . . 75
Combining Balance Sheet - All Nonmajor Special Revenue Funds .. . 79
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balance All Nonmajor Special Revenue Funds ...................... ................... . 80
Combining Balance Sheet - Nonmajor Road and Bridge Special Revenue Funds ...... . 81
in Fund Balance - Nonmajor Road and Bridge Specia l Revenue Funds .. ..... ............ . 83
Combining Balance Sheet· Nonmajor Other Special Revenue Funds ..... . .. .......... .... ... 85
in Fund Balance - Nonmajor Other Special Revenue Funds .... . .. .... ...... ...... .............. . 91
Nonmajor Debt Service Funds ..... . . . .................... . . . . . ..................... . . . . . . . . . . . . . . . .. . . . . ................. 97

Combining Balance Sheet - Nonmajor Debt Service Funds .................... ... .................. . 98
in Fund Balances Nonmajor Debt Service Funds . . .. . . .. . . . . .. ............... . . ...... ....... .. ... .. . 99
Individual Statements and Schedules

General Fund
Schedule of Revenues, Expenditures, and Changes in Fund
Balance - Budget (Non-GAAP Basis) and Actual ............ . . .... ............... ...... . . . . . . . . .... ... . 100
Nonmajor Special Revenue Funds

Road and Bridge P recinct No.1
SchedUle of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual ............ . .... . ................ . . ........ ... ......... .......... . .......... .... . 108
Road and Bridge Precinct No. 2
Balance - Budge t and Actual ......... .... ........ . . . .. .. ..................... ....... ... .................. .... . 109
Road and Bridge Precinct No. 3
Schedule of Revenues, Expenditures, and Changes i n Fund
Balance .. Budget and Actual . .. . . . ...... . . .. . .......... . . . . . . ................. . ........... ..... .. .. ............ 110
Road and Bridge P recinct No.4
B alance - Budget and Actual ......... .. . . .. .. . ........ ........ ............ ....... . .... ........ ...... ......... . 111
TABLE OF CONTENTS
(Continued)
FINANCIAL SECTION · (Continued)
Combining and Individual Fund Statements and Schedules· (Continued)
Governmental Funds - (Continued)

Combining Statements· (Continued)
Nonmajor Debl Service Funds
Road Bonds Sinking Fund
Balance - Budget and Actual ... .. ... ............................................ .......................
.. .... 112
Jail Bonds Sinking Fund
Batance Budget and Actual ...... ... . . . .............................. .................. .... ......
•
.. . . . .. 113
Courthouse Restoration Bonds Sinking Fund
Balance· Budget and Actual ........ . ... . ... ........... ............ ............. ... ............. ...... ....
.. . . 114
Bridge Street Annex Sinking Fund
Balance - Budget and Actual . . . .. .......... . ............ ..... ...... ......... ................... ..............
. 115
FiducialY Funds
Agency Funds . ... . . . . .. ... . . ... ........ ... .. ...... . ..... . . ... . ..
. .. . .. . . . . . . . . . . .. ... ... .. ..... .
.. . . . ... . . . .. . ...... .... . .. .. . .. . . 116
Combining Statement of Changes in Assets and Liabilities . .. ... .. ... .... . .... . . . .. . .. . . ... . . . . . .. ... 117
STATISTICAL SECTION ............. . . .............................................................. .......................................... 120
Financial Trends
Net Assets by Component... ...... ........... . . ..... ..... . . .... . ..... ........ ........ . . ......... ..... ..... . ... ... ... ....... .. 121
Changes in Net Assets ..... .. . . .. . .. . . .•........ .. ... ........... ...... .......... ...............................................
.. 1 23
Fund Balances, G overnmental Funds .. .......... .................................. ................. ........ ........... . 127
Changes in Fund Batances, Governmental Funds ........................ ..... ........ ............... ........... . 129
Tax Revenues by Source, G overnmental Funds.......................................................... 131
Revenue Capacity
Assessed and Estimated Actual Value of Taxable Property " General and t&S .. . ..... ... . . . .... .. 132
Assessed and Estimated Actual Value of Taxable Property - Road and Bridge ... ...... ... . . . .. . . . 134
Direct and Overlapping Property Tax Rates .... . ...... .......... . . ....................... ....... ................... . 136
Princip al Property Taxpayers (Unaudited) ... ....................................... . 1 38
Property Tax Levies and C ollections - General and I&S .................... . . . . ............................ .. . 139
TABLE OF CONTENTS
(Continued)
STATISTICAL SECTION· (Continued)
Revenue Capacity (Continued) -
Property Ta x Le vies and Collections - Road and Bridge . .... ..... . .... .. . ... ... . . ...... . 141
Sales Tax Revenue ............ . . .. .. . . . . . .... . . . . ... ...... . ..... .. ........... ........ 143
Direcl and Overlappin g Sa le s Tax Rates. 1 44
Debt Capacity
Ratios of Outst anding Debt by Type 1 45
Ratios of Net General Bonded Debt Outstand in g ..... 1 46
Direct and Overlapping Go vernmental Acti vities Debt (Unaudi ted) ............. . ........ . . . . .. .... . .. . 147
Legal Debt Margin Inform ation ........... . .. . .. 1 48
Demographic and Economic Information
Demographic and Economic Statistics (Unaudited) ......... ............... ....... .

, . ... . . . ........ . . . . ..
....... . 1 50
Princip al Employers (Un audited ) .............................. ........ .... .......... .... ................................. . . 151
Operating Information
FUll-Time-Equi valent City Governmental Employees b y Function/Program ... . ... . .............

.. . .. 1 52
Operating Indicators by Function/Progr am ................ . .... .............. .... ... ......... ....... . .... . . .......... . 1 54
Capital Asset Statistics b y Function/Program . . . . 1 55
SINGLE AUDIT SECTION
Report on Internal Control Over Financial Reporting and on

Compliance and Other M atters B ased on an Audit Of Financial
S t atements Performed in Accord ance With Government Auditing
Standards . . . . ...................... . . . . . . ................. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . ...................... . . . . . . . . . . . . ......... . . . . . . . . . . . 1 57
Report on Compliance With Requirements Applic able to Each M ajor
Program and Inte rnal C ontrol Over Compliance in Accordance With
OMB Circular A-1 33 ......................................................................... ........ ........................ ......... . 1 59
Schedule of Expenditures of Federal and State Awards.............. ... . ............. . . ............ ... . .. .. ... . .... 161
Notes to Schedule of E xpenditures of Federal and State Awards . .. . . ...... . .. . . ....... .. ...... .. ........ ..
.. . . .. . . . . . 1 65
Schedule of Findings and Questioned Costs .. . . . . ...... ...... ....... .... .... ...... ...... ... ...... ...... ...... ......... .......
.. . . 166
Schedule of Prior A udit Findings . . . ... . .. . , ..... ...... .... ......... ........... ...... ......... ...... . . ........ ...... ................
. ... . . . 1 67
INTRODUCTORY SECTION
JUDY McADAMS, CPA
COUNTY AUDITOR
VICTORIA COUNTY, TEXAS
115 N. Bridge, Room 122 Tel: (361)575·8451

Victoria, Texas 77901 Fax: (361)573·0636
August20,2009
Honorable District Judges

Honorable County Judge
Honorable County Commissioners
County of Victoria
Victoria, Texas
The County Auditor's Office is pleased to present the Comprehensive Annual Financial Report (CAFR) of
the County of Victoria, Texas (the "County"), for the year ended December 31, 2008. This report is
submitted in compliance with Texas Local Government Code 114.025.
Responsibility for both the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, rests with the County. We believe the data, as presented, is
accurate in all material aspects, that it is 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 maximum understanding of the
County's financial affairs have been included.
The County Auditor serves as the Chief Financial Officer for Victoria County. By statute, the Auditor
reports to the State District Judges. This provides for an independent review of County financial
operations separate from the Commissioner's Court, the legislative and executive branch of county
government The County Auditor is responsible for accounting systems design, audit functions required
by law, general control of finances and ensuring that the County meets its fiduciary responsibilities to
taxpayers with regard to County finances by strictly enforcing the statutes governing County finances as
provided by the local government code. As an appointed County Official and as a Certified Public
Accountant, the County Auditor takes an oath to uphold the Constitution and the laws of the State of
Texas.
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.
Honorable District Judges August 20, 2009
County of Victoria
In compliance with Texas Local Government Code 1 1 5,045, Ihe financial statements and notes contained
in this report have been audited by the independent auditors of Harrison, Waldrop and Uherek, LLP" a
firm of licensed certified public accountants, The independent auditors' report is included in the Financial
Section of this report.
When other accounting bases conflict with state law, Texas and its political subdivisions may follow the
statutory provisions of Chapter 2264, Texas Government Code, Accordingly, in 2008 the County followed
the statutory basis of accounting, which is an other comprehensive basis of accounting provided, but not
mandated, by this statute, For the County, the only difference between generally accepted accounting
principles ("GAAP") and the statutory basis of accounting is in the reporting of other postemployment
benefits ("OPES"),
The statutory basis differs from GAAP in that the County's presentation of OPES on the financial
statements uses the statutory modified accrual basis, This basis accurately and fairly sets forth the
financial position of the County by (I) measuring the cosl of benefits according to their adoption by the
governing body of the County; and by (Ii) providing an accurate assessment of OPES liabilities and extent
of their funding for the time for which the benefits were adopted, Under GAAP, GASS Statement N o 45 ,
("GASS 45"), "Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions" defines an OPES liability to include amounts the governing body has not authorized nor
promised to employees, and for which there is no legally enforceable liability, The County has concluded
that recognizing an OPEB liability as defined by GASB 4 5 would result in publishing financial statements
that are materially misleading, It would also be inconsistent with State financial laws and misrepresent the
nature, scope, and duration of the financial activities of the County,
Management has provided a narrative introduction, overview, and analysis to accompany the basic
financial statements in the fonm of a Management's Discussion and Analysis ("MD&A"), The letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it, The MD&A
can be found in the Financial Section of this report,
PROFILE OF VICTORIA COUNTY
The County is located in southeastern Texas on the Coastal plain about midway between the southern
and eastern extremities of the Texas Gulf Coast The County was created in 1836 from a Mexican
municipality named for Mexican President Guadalupe Victoria, The County encompasses an area of 892
square miles and serves a population of 86,916,
The County is a public corporation and political subdivision of the State of Texas, The general governing
body of the County is 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' Court 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 is crucial to the
success of the County in financial management and growth,
Ii
County of Victoria
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
governmental 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 delinquent children as well as property tax collections for multiple agencies,
The annual budget serves as the foundalion for the County's financial planning and control. Budget
hearings are posted annually in July and August by the County Judge, with the final budget approved by
the Commissioners' 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 which expenditures cannot legally exceed the appropriated amount) is 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 111.010, Budget-to-actual comparisons
are provided in this report for each governmental fund for Which an appropriated budget has been
adopted,
Various potential component units were evaluated to determine whether they should be included in the
County's reporting entity because of the Significance of their operational and financiat relationship wilh 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: the
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 primary 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 FINANCIAL 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, plaslics manufactUrers, heavy steel fabrication, pre-stressed concrete, oil and gas
exploration, medical services, professional and financial services, retail trade, and higher education,
Although the oil and gas petrochemical industries remain a vital component of the area employment base,
diversification within these industries 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 15% to 25% of annual expenditures, In the past year,
the County incurred a decrease in the General Fund unreserved fund balance as a result of several one
time expenditures and revenues coming in lower than expected, 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 $3.8 million in ad valorem taxes collected in October, NOVember, and
December of 2008, and are instead reported as deferred revenues,
iii
County of Victoria
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 adding an additional
courtroom for the increasing caseload of jury trials, resolving inadequate parking around the Courthouse
complex and making major infrastructure improvements to the jail. The County purchased two city blocks
next to the jail for fultlre expansion or possibly even a new jail. The County intends to issue Certificates of
Obligation in the first quarter of 2010 to reimburse the General Fund for onetime expenditures incurred
during 2008 and to provide funding for any planned construction projects.
Cash Management - The Commissioners' Court has adopted a formal investment policy for the County
consistent with State statutes governing the investment of County funds and has designated the County
Treasurer as the County's investment officer. The policy is updated annually. 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 maximum levels of invested funds. Authorized investments are
consistent with those investments authorized by State law for Texas counties. Currently, the County has
limited its investments to certificates of deposits and money market funds"
Risk Management The County has risk exposure in various areas including general liability, worker's
-
compensation, automobile liability, and property damage. To reduce its risk exposure in 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 is also exposed to risk of loss in the area of employee health coverage. In this area, the
County bears all 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 Benefits 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"). Specific plan provisions are adopted by the County within the
options available in the state statutes governing the TCDRS. Benefit amounts are determined by the sum
of the ernployee's contributions to the plan, 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.
A CKNOWLEDGEMENTS
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 all the members of the office
who assisted in and contributed to its preparation. We would also like to thank the accounting finn 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 all other officials of the County for their
assistance in planning and conducting the financial operations of the County in a progressive and
responsible manner.
��
Judy McAdams, CPA
Victoria County Auditor
iv
VICTORIA COUNTY ORGANIZATION
I COUNTY VOTERS I
I 1 1 I 1 I I I I I I
B� B
Four Tox TwoCounq
District Four County County District District County
Fire lumces:of Assessor Courts--at�
-
Attorney Sheriff Constables Commissioners Judge Clerk Clerk Judges Auditor

Marshal the Peace Collector Law Judges
� I I
I
Probate
Judges
Commissioners
1 1 I Court
I I I 1
EJ
City-County
Administrative Veteran
Emergency Flood Plain Information Building election Heritage
Services Servic:e
< Management Administrator Technology Mairrteuan(2 AdministratDr Dired:Dr Mgmt.
Director Officer
Victoria Citizens
Regional Medical
Airport Center
�
JUVENILE BOARD
� ~
Victoria
TwoCounty Four Agricultural
City�County
Courts-at� District Extension
Judge Clerk Health
Lawludges JUOge5 Service
I)elXlrtrnent
I
I
Te�s
Texas
Juvenile Juvenile State
A&M
Probation Detention tieillth
UniverSity
Department
DIRECTORY OF PRINCIPAL OFFICIALS
December 31, 2008
E LECTED OFF ICIALS
NAME POSITION
Donald R. Pozzi County Judge
Kenny Spann Commissioner, Precinct # 1

Kevin Janak Commissioner, Precinct # 2
Gary Burns Commissioner, Precinct # 3
Wayne D. Dierlam Commissioner, Precinct # 4
Stephen Tyler Criminal District Attorney
Val D. Huvar County Clerk
Cathy Stuart District Clerk
Sean Kennedy County Treasurer
Rena Scherer County Tax Assessor-Collector
T. Michael O'Connor County Sheriff
Laura A. Weiser Judge, County Court-at-Law # 1

Juan Velasquez, iii Judge, County Court-at-Law # 2
Joseph P. Kelly Judge, 24th Judicial District

K. Stephen Williams, iii Judge, 135th Judicial District
Juergen "Skippe(' Koetter, Jr. Judge, 267th Judicial District
Robert C. Cheshire JUdge, 377th Judicial District
Annie Ramos Justice of the Peace # 1

Stuart Posey Justice of the Peace # 2
Robert Whitaker Justice of the Peace # 3
Henry Welfel Justice of the Peace # 4
Richard G. Castillo Constable. Precinct # 1

James E. Calaway Constable, Precinct # 2
Kenneth Easley, Jr. Constable, Precinct # 3
John G. Miller Constable, Precinct # 4
APPOINTED OFFICIALS
NAME POSITION
Judy McAdams, CPA County Auditor

Ronald W. Pray County Fire Marshal
vi
FINANCIAL SECTION
HARRISON, WALDROP & UHEREK, L.L.P.
srEflIIENW, VAN MAN1:N, CPA
HWU
HAMIL lON 1-1, REDMON, CPA
DENNIS C, ClH AL CPA
,
ERIC L KUCERA, CPA

CLAYI0N P, VAN rEO, CPA
ROBERIW_ SCIIAAR, CPA
MELISSA M. TERRY, CPA
CERliflED rUBliC ACCOUNTANTS.
101 S, MAIN. SUitE <100 VOICE: pbl) 573-3255
VICTORIA, IEX.AS 719D1-81 <12 fAX: (61) 513-·9531
INDEPENDENT AUDITORS' REPORT
The Honorable County Judge and Members

of the Commissioners' Court
County of Victoria. Texas
We have audited the accompanying statutory basis financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of County of Victoria, Texas (the "County") as of and for the year
ended December 31 , 2008, which collectively comprise the County's basic financial statements as listed in
the table of contents. These statutory basis financial statements are the responsibility of the County's
management. Our responsibility is to express opinions on these financial statements based on our audit.
We did not audit the financial statements of the Citizens Medical Center, which statements reflect total
assets of $224,980,481 as of June 30, 2008, and total revenues of $ 1 49,859,053 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 $180,187 as of December 31, 2008, and total revenues of $69,105 for
the year then ended. Those statements were prepared on the basis of accounting principles generally
accepted in the United States of America ("GAAP") and 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 in the
component units' column, is based solely on the reports of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit 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 Government Auditing Standards. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in 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.
As described more fully in Note 1, the County has prepared these financial statements using accounting
practices prescribed or permitted by Government Code Section 2264-051 , as adopted by State of Texas
House Bill 2365, which practices differ from GAAP. These statutory accounting practices recognize the
cost of postemployment benefits, other than retirement benefits, on a statutory modified accrual basis.
GAAP requires that annual required contributions related to postemployment benefits, other than
retirement benefits, under a substantive plan as comprehended in GAAP be recorded as expenses,
which, if not funded would increase the liabilities, reduce the net assets, and change the expenses of the
governmental and business-type activities. The effects on the financial statements taken as a whole of
the variances between these regulatory practices and GAAP, although not reasonably determinable, are
presumed to be material. In our opinion, because of the effects of the matter discussed previously, the
financial statements referred to above do not present fairly, in conformity with GAAP, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the
aggregate remaining fund information of the County as of December 31, 2008, and the respective
changes in financial position and cash flows, where applicable, thereof for the year then ended.
MEM8ERS OF
A,-"IERICAN lNSHTOlE OfCFR11F1f:D PU[JLlC ACCOUN1AN15
TEXAS-SOCiETY OF G:;;;f!fIW PU£llIC ACCOUNfANlS
County of Victoria, Texas
In addition, in our opinion, based on our audit and the report of the other auditors, the financial statements
referred to above present fairly, in all m aterial respects, the respective statutory basis financial position of
the governmental activities, the business-type activities, the discretely presented component units, each
major fund, and the aggregate remaining fund information of the County as of December 3 1 , 2008, and
the respective changes in fina ncial position and cash flows, where applicable, thereof for the year then
ended in conformity with the statulory basis of accounting described in Note 1.
The management's discussion and analysis and budgetary comparison information on pages 3 through 1 2
and 71 through 7 2, are not a required part of the basic financial statements but are supplementary
information required by GAAP. We have applied certain limited procedures, which consiste d 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.
In accordance with Government Auditing Standards, we have also issued our report dated
August 20, 2009, on our conSideratio n of the County's i n ternal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other malters. 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 thai testing, and not to provide an opinion on the
internal control over financial re porting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in conjunction with this
report in considering the results of our audit.
Our audit Was performed for the purpose of forming opinions on the statutory basis fi nancia l statements
that collectively comprise the County's basic financial statements. The introductory section, statutory
basis combining and individual m ajor and nonmajor fund financial state ments 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 Governments, and Non-Profit
OrganizatlollS and the State of Texas S/ngle Audit Circular) are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The statutory basis 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 financia l statements and, in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole. The introductory sectio n 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.
��-I�Llf
August20, 2009
2
COU N TY OF VICTORIA, TEXAS
MANAGEMENT'S DISCUSSION AND ANAL YSIS
December 31, 2008
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 , 2008. The discussion and analysis should be
read in c onjunction 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.
FINANCIAL HIGHLIGHTS
• The assets of the County exceeded its liabilities at the close of the year ended December 31 , 2008, by
$39,9 1 9,797. Of this am ount $12,952,994 is available to meet the County's ongoing obligations to
citizens and creditors.
• At December 31, 2008, the County's g overnmental funds reported combined ending fund balances of
$1 1 ,244,928. The amount available for governmental discretion (unreserved fund balance) is
$11 , 1 07,089.
• At December 31 , 2008, unreserved fund balance for the General Fund was $8,2:10,983 or 25.95% of total
General Fund expenditures.
• The County's general obligation debt netted a decrease of $1 , 360,000. The key factor in this decrease
was debt payments made during 2008.
OVERVIEW OF THE FINANCIAL STATEMENTS
The new financial reporting m odel instituted by Governmental Accounting Standards B oard Statement 34
("GASB 34") seeks to improve operational accountability by highlighting an overall picture that was lost in the
detail of fund accounting. Instead of focusing on aggregations of similar individual funds, GASB 34 introduced
government- wide financial statements, which present the g overnment as a single unified entity.
This discussion and analysis is intended to serve as an introduction to the County's basic financial statements.
The County's basic financiat statements are comprised of four components: 1 ) government-wide financial
statements, 2) fund financial s tatements, 3) component unit financial statements, and 4) notes to financial
statements. This report also contains other required supplementary information in addition to the basic financial
statements.
Organization and Flow of Financial Section Information
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Management;s Discussion and Analysis

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required for slale and local government financial
;�:e3at��:ative introriuotion and anal�s�
supplementary information
to
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Go v ernm e t·w de Financial Fund Fina ncia l Stateme nts
Statements Provides information on the
Provides funds Statements
Provides information the
governmental and business-type
information on financial position of specific
pon nt units
on
of the primary governments.
the County's com e
government,
activities of primary
mm Pages 271Q?1l
Notes to Financial Statements

Provides a summary of significant accounting policies related disclosures.
and
3
OVERVIEW OF THE FINANCIAL STATEMENTS (Continued) -
Government-wide Financial Statements. The government-wide financial statements, which consist of the
following two statements, are designed to provide readers with a broad overview of the County's finances, in a
manner similar 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 improving or deteriorating.
The statement of activities presents information showing how the government's net assets changed during 2008,
All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of retated cash flows Thus, revenues and expenses are reported in Ihis statement for
,
some ilems 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, highways and streets, culture and recreation,
and public health, The business-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 government)
but also the component units of Victoria County Navigation District, Victoria County Child 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 13-16 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 Lhe funds of the County can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds,
Governmental funds, Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on 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 in 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 similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing 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 governmental funds and governmental activities,
The County maintains several indiVidual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and
changes in 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 in the form of combining and individual statements and schedules
foliowing tile required supplementary information,
4
OVERVIEW OF THE FINANCIAL STATEMENTS - (Continued)
Governmental Funds - (Continued)
The County adopts an annual appropriated b udget for its General Fund, road and bridge special revenue funds,
and debl service funds. A b udgetary comparison schedule has been provided for the General Fund to
demonstrate compliance with this budget and is located on pages 1 00-107 of this report. Budget comparisons
are prese nted for the road and bridge special revenue funds and the debt service funds on pages 1 08-1 1 5 of this
report.
The basic governmental fund financial statements can be found on pages 1 7-20 of this report.
Proprietary funds. The County maintains two diffe rent 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 10 accounl for ils airport, Navarro project, and other e nterprise activities
(commissary). Internal 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 e mployee
health insurance serv ices. Because this service predominanlly benefits governmental rather than business-type
functions, it has been included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in 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 2 1 -24 of this report.
Fiduciary funds. Fiduciary funds are used to account for resource s 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
similar 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 prov ide additional information that is essential to a full understanding
of the data prov ided in 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 a nd accompanying notes, this report also
presents certa in required supplementary informalion concerning the County's General Fund's budgetary
comparison schedule. Required supplementary information can be found on pages 71 -72 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds and nonmajor
enterprise funds is presented immediately 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
GOVERN MENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position, I n the
case of the County, assets exceeded liabilities by $39,919,797 at the close of the year ended
December 3 1 , 2008,
NET ASSETS
Govern me n tal Bus in ess type-
Activi ties Activities

2008 2007 2008 2007 2008 2007
Current and other assets $ 35,162,925 $ 37,656,760 $ 320,700 $ 666,219 $ 35.483,625 $ 38,322,979
Capilal assets (nel) 24.469,742 24,622,711 10,994,249 10,963,870 35,463,991 35,586,581
Talai Assets 62,279.471 1 1 ,3 1 4,949 �1�l ,63(),08f) 70,947,616 �,9Q\J,56Q
Current and other liabilities 23,299,110 2 1 ,705,396 228,724 655,897 23,527,834 22,371,293
Noncurreni liabililies 6,561,563 8,766,819 __ _
938,422 1 ,025,453 __ 7,4.g9,985 9,792,272
Total liabilities 29,860,673 �,472,215 �_ 1 ,691,350 �.163,565
Net Assets:
Investment in capital assets,
net of relaled debt 16,490,648 1 4,451,437 9,991,881 9,88'1 ,812 26,482,529 24,333,249
Reslricted 484,274 354,100 484,274 354 , 1 00
Unrestricted �1 7,O01,719 56,927 17,058,646
Total Net Assets $ 29,771 ,994 $ 31 ,807,256 $ 10,147,803 $ 9,938,739 $ �l!:,9.1'!:ZlE. ! 41,745,995
The largest portion of the County's net assets (66,34%) reflects its investment in capital assets (e,g" land,
buildings, Im provements, machinery, and equipment) less any related debt used to acquire those assets that is
still olltstanding, 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 in its capital assets is reported flet 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 $4B4,274, which represent resources that are subject to external
restrictions on how they may be used , The remaining balance of unrestricted net assets ($1 2,952,994) may be
used to meet the government's ongoing obligations to citizens and creditors.
Atthe 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 · (Contlnued)
CHANGES I N NET ASSETS
Governmental Business-type
Act ivities
2008 2008 2007 2008 2007
REVE NUES
Program revenues:
Charges for services $ 10,011,243 $ 9,846,857 $ 3,211 ,553 $ 2,323,208 $ 13,222,796 $ 12,170,065
Operating grants & contributions 4,782,081 3,868,765 27,152 7,494 4,809,233 3,876,259
Capltat grants & contributions 61,764 865,997 1 ,080,710 865,997 1 , 142,474
General revenues:
Properly taxes 1 7,808,933 16,774,618 17,808,933 1 6,774,618
Other taxes 6,024,31 2 7,600,233 8,024,312 7,600,233
Other 1,954,715 10,280 21 ,575 __ ',?62,800
Total Revenues 40,1 06,952 4,114,962 3,432,967
EXPENSES
General governmental 1 9,234,562 1 5,640,516 19,234,562 1 5,640,516

Public safety 14,741 ,608 1 1 ,518,191 14,741 ,608 1 1,518,191
Highways and streets 4,400,102 3,804,550 4,400,102 3,804,550
Culture and recreation 465,943 1 ,504,003 465,943 1 ,504,003
Public health 4,294,718 4,157,317 4,294,718 4,157,317
Interest on long-term debt 304,359 398,919 304,359 398,919
Airport 3,678,423 2,874,801 3,678,423 2,874,801
Navarro proiect 583,104 576,"177 583,104 576,777
Commissary 1 1 7,250 ......1.1.7.•.2.tiIl 104,128
Total Expen se s 37,023,496 _4,�!�,!!! �20,O69 40,579,202
Change in net assets before transfers (1,562,403) 3,083,456 (263,795) (122,719) (1 ,826,198) 2,960,737
Transfers _.......
(472,659) (648,126) 472,859
Change in net assets (2,035,262) 2,435,330 209,064 525,407 (1,826,198) 2,960,737
Net assets · January 1, 2008 31 ,807,256 �37 1,926 9,938,739 �1,.7.45,985 38:185,258
Net assets · December 3 1 , 2008 � 29,771 ,804 $ 31,807,256 � 10,147,803 $ 39,919,797 $ 4 1 , 745,995
7
GOVERNMENT-WIDE FINANCIAL ANALYSIS · (Continued)
Governmental activities. Governmental activities decreased the County's net assets by $2,035,262, thereby
accounting for the majority of the total decrease in the net assets of the County, Key elements of this decrease
are as follows:
• Interest income decreased 58,85% or $570,828 from the prior year. This decrease was due to falling
interest rates,
• Fines and forfeiture revenues decreased 18,35% or $319,619 in comparison with 2007, This decrease
was attributable to a reduction of fines being paid,
• County contribution to tile City of Victoria for shared services increased 29.23% or $452,022 i n
comparison with 2007, This increase was due t o an increase i n fire and EMS costs,
• $1 ,057,000 increase in expenditures for the demolition of deteriorating buildings located at the County
airport.
Expenses and Program Reven ues - Governmental Activities

=======
Ilil Expenses III Program revenues
25,0()(),000
20,000,000
15,000,000
10,000,000 ------- - - -------
5,000.000
General Fublic safety H\g'hways OJllure and F\lQlk; health interest on

govemmant and streets recreation !omHerm
debl
Revenues by Source - Governmental Activities
OIher
3%
Charges for services
24'%
Operating grants and

conlribu!ions
11%
Property taxes /c�Pilal grants an

_______
d
43% contributions
<1%
8
GOVERNMENT-WIDE FINANCIAL ANALYSIS - (Continued)
Business-type activities. Business-type activities increased the County's net assets by $209,064, thereby
accounting for 11. 44% of the total growth in the net assets of the County. Key elements of this increase are as
follows:
• Net fuel sales increased $109,952 in comparison with 2007. This increase was due to the Airport
receiving a government fueling contract increasing fuel sales from the military.
Expenses and Program Revenues - B usiness-type Activities

��==�i
[[!B
§�p�nse� III Program revenues I
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1 ,500,000
1 ,000,000
500,000
Airport Navarro A"oject Cormissary
Revenues by Source - B u siness-type A ctivities
1-
------
I Operating grants
and contributions
Capital grants and
I >1%
contributions
21%
I Commissary
<1%
Charges for
services
78%
9
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
A s 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 information on near-term
inflows, outflows, and oalances of spendable resources. Such information is u seful in assessing tile County's
financing requirements. In 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 tile end of the current year, the County's governmental funds reported comoined ending fund balances of
$1 1 , 244,928, a decrease of $4,369,616 in comparison with the prior year. Of the total fund balance, $1 1 ,1 07,089
constitutes unreserved fund balance and is available for spending at the County's discretion. The remainder of
fund batance is reserved to indicate that it is not available for new spending because it has already been
committed for a variety of other purposes ($1 37 ,839).
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 $8,230,983, while total fund balance was $8,368,822. 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 25.95% of total General Fund
expenditures, while total fund balance represents 26.38% of that same amount.
The fund balance of the County's General Fund decreased by $4,1 35,382 during the current year. This decrease
is due to several reasons. One, several revenues including interest income, fees of office, and contract jail inmate
revenUe came in lower than expected. Two, the County's contribution to the City of Victoria for shared services
increased which caused a decrease in fund balance of $452,022. Finally, the decrease in fund balance was
mainly due to onetime expenditures as described below:
• $1 ,1 1 1 ,000 for the Airport building removal project in which several deteriorating 56 year old buildings
Were demolished and removed from the Airport property.
• Approximately $800,000 in expenditures for architectural services and the purchase of five properties in
the downtown area for future expansion of County offices .
• Approximately $150,000 to re-side several metal buildings that are leased at the Airport.
• $60,000 for equipment and office space build out for the new Reccrds Management department.
• $30,000 for a new phone system for the County Clerk, Information Technology, and County Court offices.
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:
2 008 2007
U nrestricted U nrestricted
Fund Net Assets Net Assets
Airport $ 97,782 $ 46,633
Navarro Project 28,364 (43,486)
Commissary 29,776 53,780
Total :Ii 1 55,922 :& 56,92Z
Other factors concerning the finances of these funds have been addressed in the discussion of the County's
business-type activities.
10
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget resulted in an increase of $4,380,771 and
can be briefly summarized as follows:
• $1,860, 9 1 5 in m iscellaneous increases in general governmental expenditures, due to equipment
purchases for the new records management department, engineering services and building purchases,
the Airport building removal project, and increases in personnel.
• $657,936 in miscellaneous increases in public safety expenditures, due to increase in fuel prices, auto
repairs, inmate medical, and shared Fire and EMS services with the City of Victoria.
• $22,800 in m iscellaneous increases in culture and recreation expenditures, due to the purchase of a new
copier for the Extension office.
• $91 8, 1 20 in m iscellaneous increases in public health expenditures, capital outlay, and transfers out, due
to increases in operating expenses and capital asset purchases.
Of this increase, $594,861 was to be funded out of miscellaneous increases in intergovernmental revenues, fines
and forfeitures revenues, and other miscellaneous revenues. T he remaining $3,785,910 was a purposeful
spending of one time expenditures from unreserved fund batance.
For 2008, the General Fund's actual expenditures came in $1 ,269,879 lower than the final budget. This positive
variance is mainly due tQ:
• $356,147 in unspent non-departmental expenditures of which $94 ,590 was budgeted for the purchase of
a building that did not take place until 2009,
• Payroll and other various expenditure accounts came in under budget for 2008.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets, The County's investment in capital assets for its governmental and business-type activities as of
December 3 1 , 2008, amounts to $35,463,991 (net of accumulated depreciation). This investment in capital
assets includes land, buildings, improvements, and machinery and eqUipment. The total decrease in the County's
investment in capital assets for the curront year was 0.34% (a 0.62% decrease for governmental activities and a
0.28% Increase for business-type activities),
CAPITAL ASSETS
(Net of Depreciation)
Activities Activitie s
2008 2007 2008 2007 2008 2007
Land $ 2,125,950 $ 1 ,392,756 $ 149,433 $ 149,433 $ 2,275,383 $ 1 ,542,191

Construction in progress 1 ,055,042 1 ,055,042
Buildings 1 1 , 3 1 7,001 1 1 ,664,147 785,304 869,968 12,102,305 1 2,554 , 1 1 5
Improvements 5,821,932 6,399,985 9,905,91 9 8,728,052 15,727,851 15,128,037
Machinery and equipment 4,255,191 4,144,696 1 53,593 141,375 4,408,784 4,286,071
Infrastructure 949,668 1,021 ,125 949,668
Total $ 24.469,742 $ 24.622,711 $ 1 0,994,249 $ 10,963,870 $ 35,463,991 $ 35,586,581
Major capital asset events during the current year included the following:
• The additions to the governmental activities capital assets during the year ended December 31 , 2008,
consisted of the fonowing:
o Land increased by $733,192 due to the purchase of several properties for future County aflice expansion.
o The $1 , 1 1 2,554 increase i n machinery and equipment included the following: $30,000 for the
purchase of a new phone system for the County Clerk and the County Court at Law offices;
9 new vehiCles totaling $1 84,000 for the Sheriff's department and the Juvenile Probation
department; and an excavator for Road and Bridge Precinct #2 in the amount of $294,000.
11
CAPITAL ASSETS AND DEBT ADMINISTRATION - (Continued)
Capital Assets, - (Continued)
• T he additions to the business-type activities capital assets during the year ended
December 31, 2008, consisted of the following:
o Ongoing i mprovements to the airport property and refurbishment of the air traffic control tower at
the airport.
Additional information on the County's capital assets can be found in Note 6 of this report.
Long-term debt. At the end of the current year, the County had total bonded debt outstanding of $7,410,000. Of
this amount, $5,405,000 comprises debt backed by the full faith and credit of the government and $1,005,000
secured solely by specific revenue sources (I.e., revenue bonds).
----------------------------
Obligation and Revenue Bonds
General� .
Activities Activities Total
2008 2008 2007 2008 2007
Certificates of obligation $ 3,370,000 $ 3,720,000 $ $ $ 3,370,000 $ 3,720,000
General obligation bonds 3,035,000 4,045,000 3,035,000 4,045,000
Revenue bonds 1,005,000 1,085,000 1 ,005,000 1 ,085,000
Bond discount (2,632) (2,942) _(2,632) (2,942)
Total $ 6,405,000 $ 7,765,000 $ 1,002,368 $ 1,082,058 $ 7 ,407,368 $ 8,847,058
The County's total debt decreased by $1,440,000 (1 6.27%) during the current year, this was due to debt
repayment. The County maintains an "AA" rating from Standard & Poor's for general obligation deb!. Additional
information on the County's long-term debt can be found in Note 13.
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, a s
well a s a means t o accomplish the highest priority objectives . Through the budget, the Commissioners' Court sets
the d irection of the County, allocates its resources, and establishes its priorities.
The final 2009 budget was adopted by Commissioners' Court on September 8, 2008. The budget included cost of
living salary increases of 3%, 12 new positions, and 7 vehicles for the Sheriff's Office. The property tax rale was
set at $0.3986 (39.86 cents) per $100 assessed taxable valuation, which reflects no change from Ihe 2008 tax
rate. However, Ihe 2009 lax rate is $0,0247 cenls (or 6.61%) over the County's effective tax rate. The taxable
valuation increased for the 2009 year by $391 billion which will result in an increase of revenue of $1,3 million.
The General Fund balance is expected to decrease to close to $5.8 million at the end of 2009. However, the
County intends to issue Certificates of Obligation in the first quarter of 2010 to reimburse the General Fund for the
onetime expenditures that were mentioned previously.
Request for Information
This financial report is designed to provide a general overview of the County's finances for all those with an
interest in the government's finances. Questions concerning any of the information provide in this report or
requests for additional financial information shOUld be addressed to the County Auditor's Office, 115 N. Bridge,
Room 1 22, Victoria, Texas 7790 1 .
12
Basic F i nancial Statements
S TA TEMENT OF NET ASSETS
December 31, 2008
Primary Government
Governmental Business-type Component

Activities Activities Total Units
ASSETS
Current assets
Cash and cash equivalents $ 9,594,589 $ 373,785 $ 9,968,374 $ 1 1 7,092,073
Cash and cash equivalents - restricted 560,471 560,471 5,033, 1 8 1
Investments 5,000,000 5,000,000
Receivables (nel) 1 7,812,478 5,354 1 7,81 7,832 1 9,003,641
Internal balances 1 23,941 ( 1 23,941 )
Due from other governments 2,01 8,550 930 2,01 9,480 75,992
Due from external parties 35,000 35,000
Inventory 21 ,877 21 ,877 2,331 ,278
Deferred expenditures/expenses 483,677
Total current assets 35,1 45,029 278�0()� �J423,034 1 44,019,842
Noncurrent assets
Capital assets
Land and other assets not being
depreciated 2,1 25,950 1 49,433 2,275,383 30,380,453
Buildings, improvements, and
equipment (net) 22,343,792 1 0,844,81 6 33,1 88,608 73,649,979
Issuance costs (net) 1 7,896 42,695 60,591 3,1 1 8, 1 1 9
Restricted assets
Cash and cash equivalents 2,036,871
Investments
Total noncurrent assets 24,487,638 1 1 ,036,944 35,524,582 1 09, 1 85,422
Total assets 59,632,667 1 1 ,3 1 4,949 70,947,616 253,205,264
13
Primary Government
Governmental Business-type Component

LIABILITIES
Current liabilities
Accounts payable $ 929,323 $ 81 ,636 $ 1 ,01 0,959 $ 4 , 1 08, 1 92
Accrued expenses 777,964 31 ,083 809,047 7,81 0,715
Accrued interest payable 96,732 22,21 2 1 1 8,944 874,457
Due to other governments 286,458 286,458 1 , 286,570
Claims payable 237,750 237,750
Deposits 1 ,000 1 ,000
Unearned revenue 1 8,601 ,058 1 8,601 ,058 1 ,551 ,053
Accrued compensated absences 62,777 8,793 71 ,570
Current portion of long-term
obligations 2,306,048 85,000 2,391 ,048 3,31 5,000
Total current liabilities 23,299,1 1 0 228,724 23,527,834 1 8,945,987
Noncurrent liabilities
Noncurrent portion of long-term
obligations 6,561 ,563 938,422 7,499,985 37,680,000
Total noncurrent liabilities 6,561 ,563 938,422 7,499,985 37,680,000
Total liabilities 29,860,673 1 ,1 67,146 31 ,027,81 9 56,625,987
NET ASSETS
Invested in capital assets, net of
related debt 1 6,490,648 9,991,881 26,482,529 75,61 3,401
Restricted for:
Debt service 21 5,966 21 5,966 1 ,576,057
Other purposes 268,308 268,308
Unrestricted net assets 1 2,797,072 1 55,922 1 2,952,994 1 1 9,389,819
Total net assets $ 29,77 1 ,994 $ 1 0, 147,803 $ 39,919,797 $ 1 96,579,277
The accompanying notes are an integral part of this statement.

14
STA TEMENT OF ACTIVITJES
_�P�r""ogra m Revenues
Operating Capital
Charges for Grants and Grants and
Function/Programs Expenses Contributions Contributions
P rimary Government
Governmental activities
General government $ 1 9,234,562 $ 5,1 45,235 $ 1 ,855,961 $
Public safety 14,741 ,608 2,457,863 7 1 6,803
Highways and streets 4,400 , 1 02 1 ,739,696 294,366
Culture and recreation 465,943
Public health 4,294,71 8 668,449 1 ,914,951
Interest on long-term debt
Total governmental activities 1 0,01 1 ,243 4,782,081
Business-type activities
Airport 3,678,423 2,604,426 27,1 52 865,997
Navarro Project 583,104 5 1 2,461
Commissary 11 94,666 ��
..
Total business-type activities _�

4, 3T�Jn 3,2 1 1 ,553 27, 1 52 865,997
Total primary government $ 47,820,069 $ 1 3,222, 796 $ 4,809,233 $ 865,997
Component Units $ 1 27,228,229 $ 1 46,240, 734 $ 60,253 $ 29,567
General revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales taxes
Other taxes
Grants and contributions not restricted to
specific programs
Unrestricted Investment earnings
Sale of water rights
Miscellaneous
Transfers
Tolal general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending

15
Net (Expense) Revenue and
Changes in Net Assets
Primar}' Government
Business-
Governmental lype Component
$ ( 1 2,233,366) $ $ ( 1 2,233,366) $
( 1 1 ,566,942) (1 1 ,566,942)
(2,366,040) (2,366,040)
(465,943) (465,943)
( 1 , 71 1 , 3 1 8) ( 1 ,71 1 ,3 1 8)
(304,359) (304,359)
(28,647,968) (28,647,968)
( 180,848)
(70 ,64 3)
(22,584)
(274,075)
(28,647,968) (274,075) ..J.??,922,043)
1 9 , 1 02,325
16,1 00,732 1 6, 1 00,732 1 ,21 9,393

1 , 708,201 1 , 708,201 354,964
7,81 3,529 7,81 3,529
2 1 0,783 2 1 0,783
365,459 365,459
507,091 1 0,280 51 7,371 4,388,684
379,770 379,770 1 1 0,061

(472,8:;�) 472,859
26,612,706 483,139 6,073,102
(2,035,262) 209,064 ( 1 ,826,198) 25,1 75,427
3 1 , 807,256 9,938,739 41 1 7 1 ,403,850
$ 29,771 ,994 $ 1 0, 147,803 $ 39,919,797 $ 1 96,579,277
16
BALANCE SHEET
GOVERNMENTA L FUNDS
December 31, 2008
Other Total
Governmental Governmental
Funds Funds
ASSETS
Current assets
Cash and cash equivalents - unrestricted $ 5,255,624 $ 4,338,965 $ 9,594,589
Cash equivalents - restricted 560.471 560,471
Investments 5,000,000 5,000,000
Receivables (net) 1 4,568,582 3,1 27,322 1 7,695,904
Due from other governments 765,273 1 ,253,277 2,018,550
Due from other funds 1 ,092,202 303 1 ,092,505
Advance to other funds 1 20,690 1 20,690
Total assets $ 27,362,842 $ 8,71 9,867 $ 36,082,709
LIABILITIES AND FUND BALANCES

Liabilities
Accounts payable $ 631,765 $ 287,101 $ 91 8,866
Accrued expenditures 574,232 1 99,459 773,691
Due to other funds 966,220 966,220
Due to other governments 286,458 286,458
Deposits 1 ,000 1 ,000
Deferred revenue 1 7,500,565 4,390,981 ?1,891 ,546
Total liabilities 18,994,020 5,843,761 24,837,781
Fund balances
Reserved for:
Advances 1 20,690 1 20,690
Adult Probation 1 7, 1 49 1 7 , 1 49
Unreserved, undesignated reported in:
General fund 8,230,983 8,230,983
Special revenue funds 2,671 ,741 2,671,741
Debt service funds 204,365
Total fund balances 8,368,822 2,876,106 1 1 ,244,928
Total liabilities and fund balances $ 27,362,842 $ 36,082,709

17
RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET ASSETS
OF GOVERNMENTAL A CTIVITIES
December 31, 2008
Total governmental fund balances $ 1 1 ,244,928

Amounts reported for governmental activities in the statement of net assets are
different because:
The inlernal service fund is used by lhe Counly 10 charge the cost of health
insurance to individual funds. The assets and liabilities of the internal service fund
is included in governmental activities in lhe statemenl of net assets. (223,940)
Properly 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. 1 ,61 5,912
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. 1 ,674,576
Capital assets used in governmental activities are reported as expenditures in

governmental funds when purchased or constructed. The cost of these assets is
$ 161 ,469,639 and the accumulated depreciation is $1 36,999,897. 24,469,742
Other noncurrent assets (for example, bond issue costs) used in governmental
activities are not financial resources and therefore are not reported in
governmental funds. The cost of these assets is $1 62,872 and the accumulated
amortization is $1 44,976. 1 7,896
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 $ (6,405,000)

Capital leases payable (1 ,574,094)
Accrued interest payable (96,732)
Compensated absences (951 ,294) (9,027,120)
Net assets of governmental activities $ 29,771 ,994

18
STA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For tile year ended December 31, 2008
Other Tota l
Governmental Governmental
General Funds Funds
REVENUES
Ta xes $ 2 1 , 739,458 $ 4 , 1 43,432 $ 25,882,890
Fees of office and user fees 1 ,620,456 1 , 1 34,647 2,755,103
Intergovernmental 4,31 2,757 6,1 77.744 1 0,490,501
Fines and forfeitures 1 ,394,570 28,054 1 ,422,624
I n vestment income 399,098 1 07,993 507,091
Licenses and permits 38,501 38,501
Contribu tions 1 7,800 7,765 25,565
Miscellaneous 764,259 843,912
Total revenues 30,286,899 1 1 ,679,288 ..... 4 1 ,966,187
EXPENDITURES
Current
General government 1 7,003, 1 93 2,427,103 1 9,430,296
Public safety 1 3,461 ,079 559,379 1 4,020,458
Highways and s treets 4,71 3,221 4,71 3,221
Culture and recreation 405,901 12,649 4 1 8 ,550
Public health 1 1 6 , 1 74 4,1 78,318 4,294,492
Cap i tal outtay 734, 1 92 734 , 1 92
Deb t service
Principal retirement 1 ,360,000 1 ,360,000
Interest and fiscal charges 293,390 _.....-
293,390
Total expenditures 31 � 1 :3,fi44,060 45,264,599
Excess (deficiency) ef revenues
over expenditures ( 1 ,433,640) _(1 ,864,772) (3,298,412)
OTHER FINANCING SOURCES (USES)
Sale of assets 46,331 46,331
Capi tal lease proceeds 1 05,324 1 05 ,324
Transfers in 1 57,500 1 ,802,863 1 ,960,363
Transfers out (2,905,573) (277,649) (3, i 83,222)
Total other financing sources (uses) (2,701 , 742) 1 ,630,538 (1,071 ,204)
Change in fund balances (4, 1 35,382) (234,234) (4,369,616)
Fund balances a t beginning of year 12,504,204 3, 1 1 0,340 1 5,61 4 ,544
Fund balances at end of year $ 8,368,822 $ 2,876,106 $ 1 1 ,244,928
The accompanying notes are an in tegral par t of this s tatement.

19
COUNTY OF VICTORIA. TEXAS
RECONCILIA TlON OF THE G OVERNMENTAL FUNDS STA TEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STA TEMENT OF A CTIVITIES
Total net change in fund balances - governmental funds $ (4,369,616)

Amounts reported for governmental 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
wilh governmental activities. 3 1 7 ,463
The net effect of various transactions involving capital assets (I.e., sales and
trade-ins) is to decrease net assets. ( 1 1 7,804)
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 2008 capital outlays is to
increase net assets. 1 ,860,791
Depreciation is not recognized as an expense on the governmental funds since i t
does not require the use of current financial resources. The net effect of the
current year's depreciation is to decrease net assets. (1 ,895,956)
Capital lease proceeds provide current financial resources to governmental funds;
however, issuing debt increases long-term liabilities in the statement of net
assets. (105, 324)
Current year payments on long-term debt are expenditures in the fund financial
statements, but they serVe to reduce long-term l iabilities in the government-wide
financial statements. In the current year, these amounts consist of:
Bond principal retirement $ 1 ,360,000

Capital lease principal retirement _ �37,504 2,297,504
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 in the governmental funds. Similarly, other revenues are not currently
available at year end and are not reported as revenUe in the governmental funds.
Property taxes (7,514)

Other revenues (8,310) (1 5,824)
Some items reported in 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:
Decrease in compensated absences 4,474

Decrease i n accrued interest 1 7,369
Decrease i n issuance costs (28,339) (6,496)
Change in net assets of governmental activities

20
STA TEMENT OF NET A SSETS
PROPRIETARY FUNDS
December 31, 2008
Business-t��e Activities
Governmental
Activities-
Navarro Internal Service
Airport Project Commissary Total Fund
ASSETS
Current assets
Cash and cash equivalents $ 1 97,298 $ 1 40,858 $ 35,629 $ 373,785 $
Receivables (net) 2,1 1 4 3,240 5,354 1 1 6,574
Due from other governments 930 930
Inventory 21 ,877 21 ,877
Total current assets 222,219 1 44,098 35,629 401 ,946 1 1 6,574
Noncurrent assets
Capital assets
depreciated 1 49,433 149,433
equipment ( net) 8,41 2,309 2,4 1 7,354 1 5, 1 53 1 0,844,816
Bond issue costs (net) 42,695 42,695
Total noncurrent assets 8,41 2,309 2,609,482 1 5, 1 53 1 1 ,036,944
Total assets 8,634,528 2,753,580 50,782 1 1 ,438,890 1 1 6,574
LIABILITIES
Current liabilities
Accounts payable 70,943 10,119 574 81 ,636 1 0,457
Accrued expenses 25,274 3,038 2,771 31 ,083 4,273
Accrued interest payable 22,212 22,2 1 2
Due to other funds 2,660 383 208 3,251 88,034
Advance from other funds 1 20,690 1 20,690
Claims payable' 237,750
Accrued compensated absences 7,530 585 678 8,793
Current portion of bonds payable 85,000 85,000
Total current liabilities 1 06,407 242,027 4,231 352,665 340,514
Accrued compensated absences 1 8,030 1 ,402 1 ,622 21 ,054
Bonds payable, net 91 7,368 91 7,368
Total noncurrent liabilities 1 8,030 91 8,770 1 ,622 938,422
Total liabilities 1 24,437 1 , 1 60,797 5,853 1 ,291 ,087 340,514
NET ASSETS
Invested in capital assets,
net of related debt 8,412,309 1 ,564,41 9 1 5, 1 53 9,991,881
Unrestricted net assets 97,782 28,364 29,776 1 55,922 (223,940)
Total net assets $ 8,51 0,091 $ 1 ,592,783 $ 44,929. $ 1 0,147,803 $ (223,940)

21
S TA TEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
Business-!nle Activities
Governmental
Activities-
Navarro Internal Service
Airport Commissa!)! Tolal
OPERATING REVENUES
Charges for services $ 2,002,189 $ -
$ 94,666 $ 2,096,855 $ 2,394,043
Rents 513,835 512,461 1,026,296
Miscellaneous �,402
__
·····__w_.
88,402
Total operating revenues 2,604,426 51 94,666 3,211,553 2,394,043
OPERATING EXPENSES
Airport operations 3,003,007 3,003,007
Commissary operations 115,727 115,727
Lease operations 287,209 287,209
Health services 2,826,580
Depreciation and amortization 675,416 230,085 907,024
Total operating expenses �,67il,42:l 51 4,312,967 2,1l26,580
Operating income (loss) before

nonoperating revenues (expenses)
and contributions and transfers (1,073,997) (4,833) (22,584) (1,101,414) (432,537)
NONOPERATING REVENUES
(EXPENSES)
Investment income
I n terest 6,139 2,884 1,257 10,280
Noncapital grants and contributions 27,152 27,152
I n terest and debt costs (65,810) (65,810)
Total nonoperating revenues
(expenses) 33,291 (62,926) (28,378)
Income (loss) before contributions
and transfers (1,040,706) (67,759) (21,327) (1,129,792) (432,537)
Contributions and transfers
Capital grants and contributions 865,997 865,997
Transfers in 472,859 ....... _472,859 750,000
Total contributions and transfers 1,338,856 1,338,856 750,000
Change in net assets 298,150 (67,759) (21,327) 209,064 317,463

Total net assels at beginning of year 8,211,941 1,660,542 9,938,739 (541,403)
Total net assets at end of year $ 8,510,091 $ 1,592,783 $ 44 ,,.?9 $ 10,147,803 $ (223,940)
The accompanying notes are an Integral part of this statement.

22
COU NTY OF VICTORIA, TEXAS
STA TEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Business·t�pe Activities
Governmental
Activities·
Navarro I nternal
Air(lort Proje�t _ Commissary Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,603,358 $ 519,426 $ 94.666 $ 3,217,450 $ 2,306,239
Cash paid to suppliers for goods and services (2,399,5 1 3) (209,789) (44,467) (2,653,769) (2,975,971 )
Cash paid to employees for services (595,277) (79,660) (69,1 06) (744,043) (85,892)
Net cash provided (used) by operating
activities (391,432) ??9,977 (18,907) _(1 �(),362) (755,624)
CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Borrowing (repayments) to other funds 394 (91 , 1 58) 9 (90,755) 5,624
Transfers in from other funds 472,859 .........-----
472,859 __ !::;(),OOO
Net cash provided (used) by noncapital
financing activities 473,253 ( 9 1 , 1 58) 9 382, 1 04 755,624
CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Capital contributions 41 1 ,9 1 8 41 1 ,9 1 8
Acquisition and construction o f capital assets (464,425) (5,504) (4,200) (474,1 29)
Principal paid on bonds (80,000) (80,000)
Interest paid (64,512) (64,512)
Net cash provided (used) by capital and

related financing activities (52,507) (150,016) (4,200) (206,723)
CASH FLOWS FROM INVESTING ACTIVITIES

Investment income 6,1 39 2,884 1 1 0,280
Net cash provided (used) by

investing activities 6, 1 39 2,884 1 ,257 1 0,280
Net increase (decrease) in cash and cash

equivalents 35,453 (8, 3 1 3) (21 ,84 1 ) 5,299
Cash and cash equivalents at beginning of year 161 ,845 149 , 1 7 1 57,470 368,486
Cash and cash equivalents at end of year $ 1 97,298 $ 1 40,858 $ 35, 629. $ 373,785
23
STA TEMENT OF CASH FLOWS
PROPRIETARY FUNDS
J3usiness-type Activities
Governmental
Activ ities
Navarro Internal
_ _ lI:irport Project <::.ommissary Total Service Fund
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY OPERATING
ACTIVITIES
Operating income (loss) $ ( 1 ,073,997) $ (4,833) $ (22,584) $ ( 1 , 1 0 1 ,414) $ (432,537)
Adjustments to reconcile operating income to

net cash provided by operating activities
Depreciation and amortization 675,416 230,085 1,523 907,024
Changes in assets and liabilities
(Increase) decrease in accounts receivable ( 1 ,068) 6,965 5,897 (87,804)
(Increase) decrease in inventory 3,851 3,851
I ncrease (decrease) in accOlmts payable (3,352) (2,1 1 5) 279 (5,1 88) (5,787)
Increase (decrease) in accrued expenses 8,987 566 750 1 0,303 4,273
Increase (decrease) in compensated absences (1 ,269) (691 ) 1 , 1 25 (835)
I ncrease (decrease) in claims payable (233, 769)
Total adjustments 682,565 0 3,677 921 ,052 (323,087)
Net cash provided (used) by

operating activilies $ (391 ,432) $ ?_29,977 $ ( 1 8,907) �... ( 1 80,362) $ (755,624)
NONCASH CAPITAL AND RELATED FINANCING

ACTIVITIES
Capital contributed relating to capital asset
additions $ 1 72,860 $ $

24
COUNTY O F VICTORIA, TEXAS
S TA TEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2008
Private
Purpose Agency
Trust Funds
ASSETS
Cash and cash equivalents $ 70,560 $ 8,262,189
Receivables (net)
Other 51 ,281
Due from other governments 5,502
Seized assets 3,855
Total assets 8,322,827
LIABILITIES
Li abilities
Accounts payable 1 7,588 3,482 , 1 87
Due to other funds 35,000
Due to other governments 4,840,640
Total liabilities 8,322,827
NET ASSETS
Unrestricted net assets $

25
STA TEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
Private
Purpose
Trust
ADDITIONS
Investment income
Interest $ 836
Miscellaneous
Participants' contributions 121
Total additions 1 22,600
DEDUCTIONS
General government
Participants' withdrawals
Changes in net assets 1 ,688
Net assets · beginning
Net assets - ending

26
STATEMENT OF NET ASSETS
COMPONENT UNITS
December 31, 2008
Victoria Victoria
County County Citizens
Navigation Child Welfare Medical
District Center Total
ASSETS
Current assets
Cash and cash equivalents $ 1 1 ,51 8,446 $ 1 79,257 $ 105, 394,370 $ 1 1 7,092,073
Cash and cash equivalents-restricted 5,033,1 81 5,033, 1 81
Receivables (net) 1 ,1 87,548 1 7,81 6,093 19,003,641
Due from other governments 75,992 75,992
Supplies inventory 2,331 ,278 2,331 ,278
Deferred expenditures/prepaid expenses 930 482,747 483,677
Total current assets 1 2,781 ,986 87 1 31 ,057,669 1 44,019,842
Noncurrent assets
Capital assets
depreciated 1 2, 1 1 1 ,952 1 8,268,501 30,380,453
equipment (net) 3,029,234 70,620,745 73,649,979
Bond issue costs (net) 1 2 1 ,424 2,996,695 3, 1 1 8 , 1 1 9
Restricted assets
Cash and cash equivalents 2,036,871 2,036,871
Total noncurrent assets 93,922,8 1 2 1 09,185,422
Total assets 1 80,187 224,980,481 253,205,264
LIABILITIES
Current liabilities
Accounts payable 1 00,099 695 4,007,398 4,108, 1 92
Accrued expenditureslexpenses 7,810,7 1 5 7,810,71 5
Accrued interest payable 25,808 848,649 874,457
Due to other governments 1,286,570 1 ,286,570
Unearned revenue 1 ,551 ,053 1 ,551 ,053
Current portion of long-term obligations 2,835,000 3,315,00g
Total current liabilities 695 1 6,788,332 1 8,945,987
Noncurrent portion of long-term obligations 7,535,000 30,145,000 37,680,000
Total noncurrent liabilities 7,535,000 30,145,000 37,680,000
Total liabilities 9,691 ,960 695 46,933,332 56,625,987
NET ASSETS
Invested in capital assets, net of related debt 1 3, 1 1 2,491 62,500,91 0 75,61 3,401
Restricted for:
Debt service 1 30,929 1 ,445,1 28 1 ,576,057
Unrestricted net assets 5,109,2 1 6 1 79,492 1 1 4 , 1 01 , 1 1 1 1 19,389,8 1 9
Total net assets $ 1 8,352,636 $ 1 79,492 $ 1 78,047,149 $ 1 96,579,277

27
STA TEMENT OF ACTIVITIES
COMPONENT UNITS
For Ihe year ended December 31, 2008
��.��
....
Program Revenues
Operating Capital
Charges for Grants and Grants and
.......�� c!io
:.c
n IP
::.: .: oCil
:.rc:: ra
g"':.:m
= s
____�
Services
�.....------------
Contributions Contributions
Component Units
Victoria County Navigation District $ 1 ,766,938 $ 585,090 $ $
Victoria County Child Welfare Board 22, 1 54 5,730 60,253
Citizens Medical Center 1 25,439 , 1 37 1 45,649,914 29,567
Total component units $ 1 27,228,229 ! 146,240,734 $ 60,253 $ 29,567
General revenues:
Taxes:
Properly taxes, levied for general purposes
Property taxes, levied for debt service
Unrestricted investment earnings
Miscellaneous
Total general revenues
Change in net assets
Net assets - beginning
Net assets - ending

28
Net (Expense) Revenue
and Changes
in
Component Units
Victoria County Victoria County Citizens
Navigation Child Welfare Medical
District Board Center Tolal
$ (1 , 1 8 1 ,848) $ $ $ (1 , 1 81 ,848)
43,829 43,829
20,240,344 20,240,34"-
(1 , 1 8 1 ,848) 43,829 20,240,344 1 9,1 02,325
1 ,21 9,393 1 ,219,393

354,964 354,964
205,990 3,122 4,1 79,572 4,388,684
1 1 0,061 1 1 0,061
......
1 ,890,408 ��..�--
3,122 4 , 1 79,572 6,073, 1 0�
708,560 46,951 24,419,916 25,1 75,427
1 7,644,076 ......_-
1 32,541 1 53,627,233 1 7 1 ,40�,850
$ 1 8,352,636 $ 1 7�,492 $ 1 78,047,149 $ 196,579,277
29
NOTES TO FINANCIAL S TA TEMENTS
December 31, 2008
INDEX
1 Summary of Significant Accounting Policies .. , .... . . ............ ,... . . . . . .. . . ............ . . . . . . . .................... . 31
2 Stewardship, Compliance, and Accountability . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... . . . . .. . . . . . . . . . . . . .. . . 39
3 Deposits and Investments ... . .......... , .... . , . . ........................... " .............. ....................... ..... . . ... 39
4 Receivables . . . . , ............. . ........................ , .., ...... . .............. ,....... ...... ................... . ...................... 41
5 Due From O l her Governments.... ................ ............. . . . . ....................... ....................... ............ 41
6 Capital Assets " ' , . . . . , . . . . . . . . . . . .. . . . . . . . . . . . . . . ...... . . . . . . . . . . . . . . . . . . . . . . .. . . . . .

, . . , .. . . . . . , . . ... . . .. , . . . . . . . . .
, ' . 42
7 Lessor Agreements " .... . . . . . .... . . . . " .............. " .... , ......... , . . . . . . . . . . . . . . . . . . . . , . . . . . . . .............................. 43
Employees' Retirement Ptan . . . . . . . . . . . ..... ..... . . . ...... . . ................... ....... ................. . . .................. 44
9 Other Post Employment Benefits .. .......... .. ..... . , ... . , ..................... . ................................... 45
10 Employees' Health Insurance F u n d . ........ . . ................. ...... ...... ............. ..... . ........... ............... 46
11 Deferred Compensation Plan . . . . ..... . . . . . ..... . . . . . .... . . . . . ...... . . . . . . . . . . . ...... . ........................... 46
12 Risk Management ........ .. ... . . . . . . . . . . . . " ... , .... " ......., . . . . . ........ , . . . . . . . " . . . . . , ' , .... , ' , ............. , . . . ........... , . . 47
13 Long-term Debt ..... . .... .............................. ............... . .......... .... . . . . . . . . ...... ............ . . . . . . ................ 47
14 Prior Year Defeasance of Debt .............................................................................................. 49
15 Interfund Receivables, Payables, and Transfers ...... . ....... . . . . . . . . . . . . . ... . .................... . . . . .. ..... . .
. . . 49
16 Related Party Transactions... . . . . .. . . . . . . . . . .. . . . . . . . . . . .. . . . ... ............................... .......... .................... 50
17 Contingencies . . . . . , . , ...... ........... ........

. ................... . . ........................... , ....................... ..... . . . . . ,.. 51
18 Subsequent Event . . .... . . . . . . . . .. ... . , ......... , .... , .... "

. . ......................... , ..... , ' , .................................... 51
19 Victoria County Navigation District.. . . . . . . ......... . . ............. . ................................ " .. . . ........ 51
20 Victoria County Child Welfare Board ...... . . . . . . .......... . ....... . ........ . ......... ... . . . . . ...... . . . . .. .. . . .. . .. . . ..... 55
21 Citizens Medical Center . . ... . . . . . . . . . . . . . . . ...... . . . ........ . . . . . . ... . . . . . . . . . . . . . . . . ............ ........ . ............. ...... 57
. .
30
NOTES TO FINANCIAL STA TEMENTS
December 31, 2008
NOTE 1 : SUMMARY OF SIGNIfIGANT ACCOUNTING POLICIES
The County of Victoria, Texas (the "County") is a political subdivision of the State of Texas (the "State"). The
County is governed by the Commissioners' Court, composed of four (4) County Commissioners and the
County Judge, all of whom are elocted officials.
The Governmental Accounting Standards Board ("GASB") is the accepted primary standard-selting body for
establishing governmental accounting and financial reporting principles, to the extent that its rules do not
conflict with Slale financial laws and the Slale Constitution. The codification of GASB Statements and
Interpretations and any amendments thereto define the Governmental Accounting and Financial Reporting
Standards that constitute generally accepted accounling principles ("GAAP") for governmental units. GASB
recognizes that the establishment of accounting standards for slates and local governments, which were
created by states, is a power retained by the states.
Prior to 2008, the County prepared financial statements in accordance with GAAP because it did not conflict
with State financial laws and the State Constitution. However, the County has concluded that complying with
recently issued GASB Statement No. 45 ("GASB 45"), Accounting and Financial Reporting by Employers for
Postemployment Benefits Other than Pensions ("OPEB"), would result in publishing financial statements that
are materially misleading. It would also be inconsistent with State financial laws and misrepresent the nature,
scope, and duration of the financial activities of the County.
Beginning in 2008, the County prepared its financial statements using the statutory basis of accounting
provided by the State in Chapter 2264, Texas Government Code ("Chapter 2264"), Financial Accounting and
Reporting (the "Statutory Basis"). This Statutory Basis is a comprehensive basis of accounting other than
GAAP that is consistent with State financial laws and the State Constitution. The statutory accounting
practices as prescribed in Chapter 2264 amend or supersede portions of GASB pronouncements.
Tlle only departure from GAAP as a result of applying the Statutory Basis of accounting is in the accounting
for and reporting of OPEB. GASB 45 requires state and local governments to establish standards for the
measurement, recognition, and display of other postemployment benefits expensefexpenditures, related
liabilities, and note disclosures in the financial statements. The Statutory Basis differs from GAAP in that
GAAP requires a government to report an OPEB liability even when the government has not promised or
contracted 10 fund future benefits and when there is no legally enforceable liability. In other words, GASB 45
does not distinguish between a government that has a legally enforceable liability and a government that does
not; nor does it distinguish between a government that has promised benefits and a government that has not.
In addition, GASB stated in paragraph 77 of GASB 45, " . . . the Board affirmed its general presumptions, and that
of other standards setters, that an employer that has established a pattern of providing postemployrnent benefits
has accepted responsibility to provide those benefits." Such presumptions may result in materially misleading
financial staternents and may be contrary to State law and the actions of the government's governing body.
The Statutory BaSis of accounting provides an accounting basis for [he County to report any legally
enforceable OPEB liability it may have incurred based on the County's "Substantive Plan." A Substantive
Plan is defined in Chapter 2264 as a plan providing OPEB approved by the governing body of the plan
provider according to the laws and Constitution of the State. The Statutory Basis is consistent with the
definition and characteristics of a liability defined in GASB Concepts Statement No. 4, Efements of Financial
Statements as a "present obligation to sacrifice reSOUrces that the government has lillie or n o discretion to
avoid.' No promises of continuing retirement healthcare benefits beyond 2009 have been made to
employees by the Commissioners' Court. The County has included comrnunications both in information
provided to employees and in the annual financial statements that s pecifically stale that the deciSion to
provide these benefits is made on an annual basis
31
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES · (Continued)
In summary, the County's presentation of OPEB in its financial statements using the Statutory Basis in
Chapter 2264: ( 1 ) measures the cost of benefits according to their adoption by the government body of the
County; (2) provides an accurate assessment of OPEB liabilities and the extent of their funding for the time
peried for which the benefits were adopted; and (3) provides information useful in assessing potential
demands on the County's future cash flows.
Other significant accounting policies followed by the County are described below.
A. ReportinG Entity
In 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 in 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 reperting 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 Ihe primary government that are included in the primary government's financial
statements are called component units. The component units discussed in this note are included in the
County's financial statements because of the significance of their financial relationships with the County
and the County's ability to impose its will on the organizations .
.Component Units
The component units colu mn in the financial statements includes the financial dala 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 budge\. 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
directors 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 establis hed to provide
medical services to the residents of the County and surrounding 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 ending June 30 of each year. The amounts reported for the
Medical Center in the financial statements are as of June 30, 2008. The Medical Center is reported as a
Proprietary Fund Type in the accompanying financial statements.
32
NOTE 1 : S U MMARY 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 administrative offices at the following addresses:
Victoria County Navigation District

1 1 5 North Bridge, Room 24 1
Victoria, Texas 77901
Victoria County Child Welfare Board

1 502 E. Airline Road
Citizens Medical Center

2701 Hospital Drive
B, Governm(;jnt-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 interlund 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 significant extent on fees and charges for su pport.
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 tllat are restricted to meeting tile operationat or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as generat revenues,
Separate financiat 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 in the fund financial statements.
C, Measurement Focus, Basis of Accounting, and F inancial Statement Presentation
The government-wide financial statements are reported using the eccnomic 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,
regardtess of the liming of related cash flows. Property taxes are recognized as revenues in the year for
which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements i mposed by the provider have been met.
33
NOTE 1 : SUMMARY O F SIGNIFICANT ACCOUNTING POLICIES · (Continued)
C, Measurement Focus, Basis of Accounting, and Financial §tatement Presentation (Continued)
Governmental fund financial statements are reported using the current financial resources measurement
focus and the m odified 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 1 20 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 claims and judgments, are
recorded only when payment is due.
The revenues susceptible to accrual are property taxes, fines, licenses, charges for services, interest
income and intergovernmental revenues. Sales taxes collected and held by tbe state and other third
parties at year-end on behalf of the County are also recognized as revenue. All olher revenue items are
considered to be measurable and available only when cash is received by the County,
The 2008 tax levy is dedicated to pay for expenditures of the 2009 budget. The entire 2008 tax levy has
been recorded as deferred revenue as of December 31, 2008.
The County reports the following major governmental fund:
The General Fund is the County's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The County reports the following major proprietary funds:
Enterprise Funds are used 10 account for operations: 1 ) that are financed and operated in a manner
similar 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, andlor net income is
appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
The Airport Fund, an enterprise fund, accounts for the operations of and improvements to the County
Airport.
The Navarro Project Fund, an enterprise fund, accounls 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 maintains one Internal Service Fund: Employee Health
Insurance Fund.
The Private Purpose Trust Fund, or the Flexible Benefits Plan, is used to account for am ounts
withheld from employee paychecks before FICA and withholding taxes are computed. All resources
of the fund, including any earnings on invested resources, may be used to benefit parties outside the
County. All the above is according to the plan document. The fund is excluded from the government
wide financial statements.
34
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES . (Continued)
C. Measurement Focus, Basis of AccoLlnting, and Financial Statement Presentation - (Continued)
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 d istributed to other
local governments, pass-through grants, various fines and fees to be d istributed 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 in 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 OptiOll
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 intertund activity has been eliminated from the government-Wide financial
statements. Exceptions to this general rule are charges between various functions of the County.
Elimination of these charges would distort the direct costs and program revenues reported for the various
functions concerned.
Amounts reported as program revenues include 1 ) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments, Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
conneclion 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 a n d expenses no! meeting this
definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricled resources are available for use, it is the County's policy to use
restricted resources first, then unrestricled resources as Ihey are needed.
D. Buctqets a n d 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 submiUed to the Commissioners' CourL Before determining 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, Road and Bridge 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 GAAP. Under the budgetary
basis, revenues are recognized as collected and expenditures when paid.
35
NOTE 1 : SUMMARY O F SIGNIFICANT ACCOUNTING POLICIES · (Continued)
D Budgets and Budgetary Accounting - (Continued)
When the budget has been adopted by the Commissioners' Court, the County Audilor 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 a ppropriations) for each legally adopted
annual operating budget is on a line-item basis. Any amendments above the line-item level must have
the approval of the Commissioners' Court before implementation. 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 , 1 86,032. Budget expenditure amendments in these funds netted an increase of $5,536,332.
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
em ployed by the County as an extension of formal budgetary integration. Encumbrances outstanding at
year-end are not roported as reservations of fund balances. All encumbered appropriations lapse at the
end of the fiscal yeaL Encum bered appropriations are reappropriated in the ensuing year's budget
E. Deposits and Investments
The County's cash and cash equivalents are considered to be cash on hand, demand deposits, and
shorl-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 in any instruments authorized by the Public Funds Investment
Act of Texas. Investments authorized under this Act include, but are not limited to, the following:
Obtigations 01 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 ("FDIC") or otherwise secured; and certain repurchase agreements.
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 in compliance with
the CommiSSioners' Courfs 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 in escrow by the Bank of New York.
G. ReceivaRles and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as "due to/from other funds" (I.e., the current portion of interfund loans) or
"advances lolfrom other funds" (I.e., the non-current portion of interfund loans). All other outstanding
balances between funds are reported as "due tolfrom other funds". Any residual balances outstanding
iJetween the governmental activities and business-type activities are reported in the government-wide
financial statements as "internal balances." Advances between funds, as reported in lhe fund financial
statements, are offset by a fund balance reserve account in applicable governmental funds 10 ind icate
that they are not available for appropriation and are not expendable available financial resources.
36
NOTE 1 : S U MMARY OF SIGNIFICANT ACCOUNTING POLICIES · (Continued)
G. Receivables and Payables - (Continued)
All trade and property tax receivables are shown net of an allowance for uncollectibles,
H. l[lVentorY,lQQ 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 aclual 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 in the gevernment-wide statements.
I. £9,l2it9,1 Assets
Capital assets, which include property, plant, equipm ent, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide statement of net assets. The Cou nty defines capital assets, other than
infrastructure assets, as as sets with an initial, individual cost of more than $5,000 and an estimated useful
life in excess of one year. The County reports infrastructure assets on a system basis. Accordingly, Ihe
amounts spent for the construction or acquisition of infrastructure assets are capitalized and reported
regardless of their amount. In the case of the initial capitalization of general infrastructure assets, the
County chose to include all such items acqu ired on or after January 1 , 2003, The County reported
infrastructure assets acquired prior to January 1 , 2003, beginning in year ending Decem ber 3 1 , 2007.
As the County constructs or acquires capital assets each period, they are capitalized and reported at
historical cos!. Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized. Major outlays for capital assets and i mprovements are capitalized as
projects are constructed. Interest incurred during the ccnstruction phase of capital assets of business-type
activities is capitalized when acquired with tax-exempt debt. The amount of interest 10 be capitalized is
calculated by offsetting interest expense incurred during the period of construction until completion of the
project with interest earned on invested proceeds over the same period.
As Ihe 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 maintenance 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 capitalized as
projects are constructed, I nterest incurred during the construction phase of capital assets of business-type
activities is capitalized when acquired with tax-exempt debt. The amount of inlerest to b e capitalized is
calculated by offsetting interest expense incurred during the period of construction until cc mpletion of the
project with interest earned on invested proceeds over the same period.
Property, plant, and equipment of the primary government is depreciated using the straight tine m ethod
over the following estimated useful lives:
Assets Years
Buildings 1 0-50
Improvements other than buildings 1 0-50
Infrastructure 20-40
Machinery and equipment 5-15
Office equipment and fixtures 5-10
37
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ( Continued) -
J. Comp�nsaled Absences
Vacation benefits are accrued by County employees according 10 guidelines set in the Cou nty'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 com pleted 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
em ployee resignations and retirements.
E mployees 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 Ol:>lIgations
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 liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized oVer the life of the bonds using the
straight-line method. Bonds payable 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 sou rces
while d iscounts 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,
L Fund Equity
In 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 management plans that are subject to change,
M. Restricted Net Assets
Net assets are reported as restricted when there are limitations im posed 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 EslimateJl
The preparation of the government-wide and fund financial statements in conformity with generally
accepted accounting principles requires the County to make estimates and assessments that affect the
reported amounts of assets and liabilities and d isclosure of contingent assets and liabilities at the date of
financial statements and the reported amounts of revenues and expenditures during the reporting period.
AC('A)rdingly, actual results could differ from those estimates,
38
NOTE 2 : STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A Deficit F!JricJ Equity
As of December 31 , 2008, the following funds had deficit equily balances:

Fund Balancel
Fund Net Assets
Nonmajor Funds
Appellate Judicial System $ 1 54
Project Safe Neighborhood 71
TCDP Grant 5,4 1 6
Community Emergency Response Training 1 ,295
Elections Chapter 1 9 2
Health Department 1 ,641
Internal Service Fund
Employee Health Insurance 223,940
Steps will be taken to eliminate these deficits in the upcoming fiscal year.
B. ,E:\\lcig,,!\;lry Compliance
Budgetary compliance is monitored at the l ine-item level in all budgeted governmental funds, For the
year ended December 3 1 , 2008, the County over-expended appropriations at the following line-item
levels:
Department/Fund Amount
General Fund
Records management
Salaries $ 546
Fringe benefils 44
Election administrator
Salaries 234
Administrative services
Fringe benefits 3
NOTE 3: DEPOSITS AND INVESTMENTS
As of December 31 , 2008, the County had the following investments:
Weighted Average
Investment Type Fair Value Maturity (Months)
Money Market Funds $ 701 , 328 N/A
Total
39
NOTE 3: DEPOSITS AND INVESTMENTS - (Continued)
Interest Rate Risk
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 d o not
exceed the expected completion date of the project for which the bonds were sold. The money market funds
are redeemable in full immediately and therefore do not have a stated weighted average maturity.
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 risk. II is the
County's policy to limit its investments to those with ratings of not less than A or its equivalent. At
December 3 1 , 2008, 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 inslitutions 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. During the fiscal year and at year-end, all deposits held in
the depository bank were fully collateralized and therefore the County was not exposed to custodial credit
risk.
Custodial Credit Risk - Investments
For an investment, this is the risk that, in 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 in 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 3 1 , 2008, and for the year then ended, the County was not exposed to any custodial credit risk.
Please see Notes 1 9 , 20, and 21 for discussions relative to the cash deposits of the County's three
component units.
40
NOTE 4: RECEIVABLES
Receivables at December 31 , 2008, 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:
Navarro Nonmajor and

General Airport Project Other Funds Total
Gross receivables
Ad valorem taxes $ 1 2,032,086 $ $ $ 3,260,942 $ 1 5,293,028
Sales taxes 1 ,425,094 1 ,425,094
Fines 5,461,276 5,461 ,276
Other 83,426 2,1 1 4 3,240 146,001 234,781
Total gross receivables 1 9,001,882 2,1 1 4 3,240 3,406,943 22,414,179
Less: Allowances 4,433,300 �--.�---
1 6 3,047 4,596,347
Total net receivables $ 1 4,5�8,582 14 $ 3,240 $ },2:13,896 $ 1 7,81 7,832.
The only receivables not expected to be collected within one year are $ 1 26,432 of fines receivable reported in
the General Fund.
The County's governmontal funds report deferred reVenue in connection with receivables for revenues that
are not considered to be available to liquidate liabilities of the current period. The governmental fun d s 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 i n
the governmental funds were as follows:
Unavailable .....
Unearned Total
General Fund
Ad valorem taxes receivable $ 1 , 335,786 $ 1 4,399,437 $ 1 5,735,223
Fines receivable 1 ,674,576 1 ,674,576
Stale grants 90,766 90,766
Nonrnajor Funds
Ad valorem taxes receivable 280, 1 26 4,1 1 0,855 4,390,981
$ 3,2!.lQ,48� �j8 601.058 1- 21,891,54!i ...
Property taxes aUach as an enforcea ble lien on property as of January 1. Taxes are levied on October 1 and
payable by the following January 3 1 , which comprises the collection dates for the current tax roll. The County
of Victoria Tax Asses sor-Collector bills and collects its own property taxes.
The County is permitted by State Statute to levy taxes up to $0 . 80 per $ 1 00 of assessed valuation. The
combined tax rate for the budgetary year ended December 3 1 , 2008, was $0.3986 per $100, which means
the County has a tax margin 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 3 1 , 2008:
Nonmajor and
General Aireort Other Funds Tolal
--�.-�
Contract reimbursements $ 692,930 $ $ 56,31 3 $ 749,243

Federal and state grants 1 7.325 930 1 ,1 96,964 1 ,21 5,219
Alcohol and bingo taxes 55,018 55.0 18
$ 765,273 $ 930 $ 1 ,253,277 $ 2,019,480
41
NOTE 6: CAPITAL ASSETS
T h e County's capital asset activity for the year ended December 31 , 2008, was as follows:
Beginning Ending
Balance Increases Decreases
----
Balance
Capital assets, not being depreciated
Land $ 1 ,392,758 $_713, 1 92 U,.1 25�5()
Total capital assets not being depreciated 1 ,392,758 _733, 192 _2
_,12."'�50
Capital assets, being depreciated

Machinery and equipment 1 1 ,579,855 1 , 1 1 2,554 301 ,972 1 2,390,437
Buildings 1 8,833,390 1 8,833,390
1m provements 1 3,936,503 45,1 1 8 1 3, 98 1 ,621
Infrastructure 1 1 4,1 38,241 ----_.
_ ..._-
1 1 4,1 38,241
Total capilal assets being depreciated 1 58,487,989 1 , 1 57,672 301,972
__ _lS9,343,689
Less accumulated depreciation (or

Machinery and equipment 7,435,159 884,255 1 84,168 8,1 35,246
Buildings 7,1 69,243 347, 146 7,51 6,389
Improvements 7,536,518 623, 1 7 1 8,1 59,689
Infrastructure 1 1 3, 1 1 7, 1 1 6 71 -_..__..-
_�3, 1 88,573
Total accumulated depreciation J.3.§,258,036 1 ,926,029 1 84,168 1 36,999,897
Total capital assets being depreciated, net 23,229,953 ____ E68,357) _

_
1_1 7,804 22,343,792
Govenmental activities capital assets, net $ 24,622,71 1 $ (35, 1�5) $ 1 1 7,804 $ 24,469,742
Capital assets, not being depreciated
Land $ 1 49,433 $ $ $ 149,433
Construction in progress .!.,.o55,()42
___ --------
_1,.055,042
Total capital assets not being depreciated _ 1 , 204,475 1 ,055,042 1 49,433

Machinery and eqUipment 7 1 8,022 1 1 4, 1 00 30,073 802,049
Buildings 2,642,790 2,642,790
Im prOVements 1 5,694,797 __ 1 ,912.,834 1 7 ,607,631
Total capital assets being depreCiated 1 9,055,609 2,026,934 _ ...20,07:,1 21 ,052,470
Less accumul ated depreciation for

Machinery and equipment 576,647 101 ,882 30,073 648,456
Buildings 1 ,752,822 104,664 1 ,857,486
Improvements 6,966,74:5.
___ 734,967 --..--
7,70 1 , 712
Total accum ulated depreciation _�,296,21 ". ._ ...Jl<I.1.(i
, 13 30,073 _ 1 0,207,654
Total capital assets being depreciatad, net 9,759,395 1 ,085,421 10,844,816
Busi ness-type activites capital assets, net $ 1 0,963,870 $ 1 ,085,421 $ 1 ,0§5,042 $ 10,994,249
42
NOTE 6: CAPITAL ASSETS · (Continued)
Depreciation expense was charged to functions/programs of the County as follows:
General government $ 563,443
Public safety 752,804
Highways and streets 444 , 71 1
Public health ._]5,1 78
Total depreciation expense · governmental activities 1 1 .8(15.956
Airport $ 675, 4 1 6
Comm issary 1 ,523
Navarro project . 224,804
Total depreciation expense - business-type activities $ 9'11-';)13
NOTE 7 : LESSOR AGREEMENTS
The Airport Fund, a major enterprise fund, leases tand and buildi ngs to various unrelated third parties.
Approximately 25 percent of the Airport Fund's capital assets are used to eperate the Airport activities. The
totat cost of the buildings is $1 ,275,31 7 and the carrying value is $101 ,570, The totat cost of Ihe
i mprovements to the land and buildings is $ 14,509, 1 8 4 and the carrying value is $8,185,818. Accumulated
depreciation on all assets in the Airport Fund is $8,1 03,330, Following is an analysis of minimum future
renlals due the Airport Fund under noncancelable lease agreements as of December 3 1 , 2008:
Year Ending
Dec;ember:31
2009 $ 201 ,956

201 0 1 68,946
201 1 1 37,321
2012 1 29,033
201 3 1 0 1 ,533
738,789
Thereafter 584,533
$1,323,322
The Navarro Project Fund, a major enterprise fund, also leases building space, Approximately 50 percent of
the building space is used by the Victoria City/County Heallh Department The remaining 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 $683,737. The tolal cost of the improvements to the building leased is $3,098,443 and the carrying
value Is $1 ,720,099. Accumulated depreCiation on all leased assets in the Navarro Project Fund is
$2,062,081 , Following is an analysis of minimum future rentals due the Navarro Project Fund under
nonc,ancelable lease agreements as of December 31 , 2008;
Year Ending
Dec;smber :31
2009 $ 1 84,693
201 0 56,821
201 1 _1 6,900
$ 258.d.1�
43
NOTE 8: EMPLOYEES' RETIREMENT PLAN
The County provides retirement, disability. and dealh benefits for all of its full-time employees througll 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 administration of the statewide agent
multiple-employer pubtic employee retirement system consisting of 574 nontraditional defined benefit pension
plans, TCDRS in the aggregate issues a comprehensive annual financial report ("CAFR") on a calendar year
basis, The CAFR is available upon wrilten request from the TCDRS Board of Trustees at p, 0, Box 2034,
Austin, Texas 78768-2034,
The plan provisions are adopted by the governing body of the employer, within the options available in 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 their age and years of
service equals 75 or more, Members are vested after 8 years of service but must leave their accumutated
contributions in the ptan to receive any employer -financed benefit. Members can withdraw contributions in a
lump 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 plan, with interest, and
employer-financed monetary credits. The level of these monetary credils is adopted by the governing body of
the employer within the actuarial constraints imposed by the TCDRS Act so that the resulting benefits can be
expected 10 be adequately financed by the employer's commitment to contribute, At retirement, death, or
disability, the benefit is calculated by converting the sum of the employee's accumulated contributions and the
employer-financed monetary credits to a monthly annuity using annuity purchase rates prescribed by the
TCDRS Act.
A, Funding Policy
The employer has elected the annually determined contribution rate (Variable-Rate) ptan 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 . 1 9% for calendar year 2008. 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 in the TCDRS Act.
B. Annual Pension Cost
For the employer's accounting year ending December 3 1 , 2008, the annual pension cost for the TCDRS
plan for its em ployees was $2,522,053 and the actual contributions were $2,522,053,
The annual required contributions were actuarially determined as a percent of the covered payroll of the
participating employees, and were in compliance with GASB Statement No, 27 parameters based on the
actuarial valuation as of December 3 1 , 2007, the basis for determining the contribution rate for calendar
year 2008, The December 3 1 , 2007, actuarial valuation is the most recent valuation.
44
NOTE 8: EMPLOYEES' RETIREMENT PLAN - (Continued)
C. Actuarial.Valuatioll and Tr§ll!Ll.!)forrnati.on

Actuarial Valuation Information
_
_
-1,,2131105 1 2131106 1 2131107
Actuarial cost method entry age entry age entry age
Amortization method level percentage of level percentage of level percentage of
payroll, open payroll, open payroll, open
Amortization period in years 20 15 15
Asset valuation method long-term appreciation SAF; 1 0-yr smoothed SAF; 1 0-yr smoothed
with adjustment value ESF; Fund value value ESF; Fund value
Assumptions:
Investment retum 1 1 ) 8.00% 8.00% 8.00%
Projected salary increases 1 1 ) 5.30% 5.30% 5.30%
Inflation 3.50% 3.50% 3.50%
Cost of living adjustments 0.00% 0.00% 0.00%
(1) includes inflation at the stated rate
Trend Information for the Retirement Plan for the

Employees ofthe County of Victoria, Texas
Fiscal Annual Percentage Net
Year Ending Pension of APC Pension
December 3 1 Cos!J£;PC) t:;ontributed Obligation
2006 $2,049,854 1 00% $
2007 2,308,829 1 00%
2008 2,522,053 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 Liabifity (AAL) -'1LAAL ) Ratio Pallroll(1) �Q!L
(a) (b) (b -a) (alb) (c) « b- a)/c)
1 2131/05 $45,1 09,402 $ 54,637 , 1 45 $9,527,743 82.56% $ 1 7,71 5,357 53.78%
1 2131/06 49,547,664 57,844,646 8,296,982 85.66% 1 8,962,335 43.76%
1 2131 /07 54,352,277 62,473,206 8,1 20,929 87.00% 20,431 ,958 39.75%
(1) The annual covered payroll is based o n the employee contributions received b y TCDRS for the
year ending with the valuation date.
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 em ployee to be eligible for this benefit, their age combined with their years of
service must equal seventy-five (75), or they must have altained the age of sixty (60) and with eight (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 moro 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 plan.
45
NOTE 9: OTHER POST EMPLOYMENT BENEFITS · (Continued)
The County pays 50% of the premium cost for medical coverage only for each retiree over the age of 65, The
County does not contribute to the premium cost for dependents for retirees over the age of 65,
Other post employment benefits are expensed and funded on a pay-as-you-go basis. The County recognizes
the cost of providing these benefits as a payroll expense/expenditure in an operating fund with corresponding
revenue in 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 46 and 54 retirees and active
employees for the years 2008 and 2007, respectively, is not separated. Total payments to the Employee
Health Insurance Fund by retirees were $94,345 in 2008 and $1 04,496 in 2007,
NOTE 10: 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 remaining claims for the remainder of the year up to $915,000 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 in the respective funds, Any claims that have been incurred, but not reported, as of
the balance sheet date are shown as current liabilities in the internal service fund and have been charged as
an operating expense for that period. This amount was determined by the Cou nty's health plan administrator.
As of December 3 1 , 2008, the fund had estimated liabilities for outstanding claims of $237,750. There was a
deficit unrestricted net assets of $223,940 as of December 3 1 , 2008, an increase of $31 7,463 from 2007,
Below is a reconciliation of claims lia bilities reported in the E mployee's Health Insurance Fund for the years
noted:
Payable Payable
Year 1/1 Incurred Paid 1 2131
1 998 $330,568 $ 1 , 754,903 $ 1 ,8 1 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 339,5 1 9 2,61 7,446 2,2 1 1 ,485 745,480
2002 745,480 1 ,546,81 3 1 ,91 3,502 378,791
2003 378,791 1 ,635,920 1 ,742,0 1 3 272,698
2004 272,698 1 ,663,809 1 ,31 5,452 621 ,055
2005 621 ,055 1 ,548,1 1 2 1 ,951,610 21 7,557
2006 21 7,557 2,969,408 2,903,91 5 283,050
2007 283,050 1 , 995,7 1 0 1 , 807,241 471 ,51 9
2008 471 ,51 9 2,1 32,631 2,366,400 237,750
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, SeUied claims resulting from insured
risks have not exceeded insurance coverage in any of the past three fiscal years.
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,
46
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 2008. There were no significant reductions in 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 In Long-term Liabilities
Long-term liability activity for the year ended December 3 1 , 2008, was as follows:
Beginning Ending Due Within
Batance Additions Reductions Balance One Year
Bonds and certificates payable
Certificates of obligation $ 3,720,000 $ $ 350,000 $ 3,370,000 $ 365,000
General obligation bonds 4,045,000 1 ,01 0,000 3,035,000 1 ,040,000
Total bonds payable 7,765,000 1 , 360,000 6,405,000 1 ,405,000
Capital leases payable 2,406,274 1 05,324 937,504 1 ,574,094 901 ,048
Compensated absences 955,768 1,01 8,507 1 ,022,981 951 ,294 62,777
Total governmental activity
long-term liabilities $ 1 1 ,1 27,042 $ t1 23,831 :& 3,320,485 $ 8,930,388 $2,368,825
Bonds
Revenue bonds $ 1 ,085,000 $ $ 80,000 $ 1 ,005,000 $ 85,000
Less: issuance discount 2,942 31 0 2,632
Total bonds payable 1 ,082,058 79,690 1 ,002,368 85,000
Com pensated absences 30,682 42,3 1 1 43,146 29,847 8,792
Total business-type activity
long-term liabilities $ 1 ,1 1 2,740 3> 42,31 1 3> 1 22,836 U,032,21 5 $ 93,792
For the governmental activities, compensated absences are generally liquidated by the General Fund.
B. General Obligation Certificates and Bonds

Long-term liabilities at December 31 , 2008, are comprised of the following issues:
$2,590,000 2003 Limited Tax Refunding (Jail) Bonds due in one annual
installment of $455,000 in 2009; interest varying between 2.0% and 3.0%. $ 455,000
$775,000 2003 Unlimited Tax Refunding (Road) Bonds due in one annuat
installment of $1 45,000 in 2009; interest varying between 2.0% and 3.0%. 1 45,000
$1 ,650,000 1 998 Unlimited Tax (Road) Bonds due in annual installments ranging
from $1 65,000 to $205,000 through 2013; interest varying between 4.5% and 4.75%. 925,000
$2,700,000 1 998 Limited Tax (Courthouse Restoration) Bonds due in annual
installments ranging from $275,000 to $335,000 through 201 3; interest varying
between 4.1 % and 4.4%. 1 ,51 0,000
$ 5,000,000 2001 Certificates of Obligation (Bridge Street Annex) due in annual
installments ranging from $365,000 to $485,000 through 201 6; interest varying
between 3.55% and 4.5%. 3,370,000
Totat general obligation debt $ 6,405,000
47
NOTE 13: LONG-TERM DEBT (Continued)
-
B. General Obligation Certificates and Bonds - (Continued)

Year Ending Governmental Activities
December 31 PrinciQal Interest Total
2009 $ 1 ,405,000 $ 241 ,925 $ 1 ,646,925
201 0 840,000 1 98,685 1 ,038,685
201 1 880,000 1 62,278 1 , 042,278
201 2 920,000 1 23,637 1 ,043,637
201 3 965,000 82,584 1 ,047,584
2014-2016 1 ,395,000 94,821 1 ,489,821
$ 6.405,000 $ 903,93.0 $.J,;308,930
C. CaQital Leases
Capital leases payable at December 3 1 , 2008, 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. $ 601 , 332
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. It bears interest at a rate of 4.32% and requires annual installments
of $273,909. 755,529
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%. 58,695
Lease purchase agreement on a tractor and mower used by Precinct #1 . The
original amount of the lease, entered into in 2007, was $88,203. The lease is
payable in three annual installments of $30,960 and bears interest at a rate of
5.40%. 29,374
Lease purchase agreement on rollers used by Precinct #4. The original amount
of the lease, entered into in 2007, was $ 1 81 ,631 . The lease is payable in three
annual installments of $63,754 and bears interest at a rate of 5.40%. 60,488
Lease purchase agreement on two tractors and a mower used by Precinct #3.
The original amount of the lease, entered into in 2008, was $ 1 05,324. The lease
is payable in three annual installments of $36,647 and bears interest at a rate of
4.45%. 68,676
Total capital leases § 1,574,094
48
NOTE 1 3 : LONG·TERM DEBT · (Continued)
C, .QjIJllil!!lll�� - (Continued)
The present value of the capital leases after deduction of imputed interest is $ 1 , 574,094.
Year Ending Governmental Activities
December 31 Principal I nterest Total
2009 $ 901 ,048 $ 65,722 $ 966,770
2010 41 0,481 24,954 435,435
201 1 1 1 ,343 273,908
�
. 1 02,01.9 3> 1 ,676,1 1 3
D, Revenue Bonds
Revenue bonds payable is comprised of the following:
$ 1 ,650,000 1 997 Victoria County Public Facilities Corporation Lease Revenue
Bonds, Series 1 997 due in annual installments ranging from $85,000 to
$ 1 40,000 through 201 7; interest rate varying between 5.35% and 6,00%, �Q()5,000
Total revenue bonds $ 1,O()t),()00
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending
December 3 1 Total
2009 $ 85,000 $ 56,874 $ 1 4 1 ,874
2010 90,000 51 ,928 1 4 1 ,928
201 1 1 00,000 46,465 146,465
201 2 1 05,000 40,545 1 45,545
201 3 1 1 0,000 34,200 1 44,200
2014-20 1 7 51 5,000 64,350 579,350
$ 1 ,005 000 L:2,�,� ��f L.1.299,3(;lZ
NOTE 14: PRIOR YEAR DEFEASANCE OF DEBT
In prior years the County defeased certain general obligation bonds by placing the proceeds of new bonds in
an irrevocable trust to provide for all future debt service payments on the old bonds, Accordingly, the trust
account assets and the liability of the bonds are not included in the County's financial statements, At
December 31 , 2008, $625,000 of bonds outstanding is considered defeased,
NOTE 15: INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
A, Interfund Receivables and Pavables
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 b,elongs to or is
designated for another fund, In 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 3 1 ,
1 998, through December 31 , 2008. 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.
49
NOTE 1 5: INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS · (Continued)
A, !o terfund Receivables and Payables - (Continued)

Interfund receivable and payable balances as of December 3 1 , 2008, were as follows:
Due to/from other funds:

Receivable Fund Payable Fund Amount
Generat Nonmajor Governmental $ 965,91 7
Airport 2,660
Navarro Project 383
Commissary 208
Internal Service
Private Purpose Trust
1
Nonmajor Governmentat
CDA Victims Assistance
Grant Nonmajor Governmental
COA Processing Fee
Total
Advances from/to other funds:

Payable Fund
General Navarro Project
Total
B, fnterfund TI<'lD�f<3rs
Each year various funds of the County transfer funds to other funds, The most significant 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 In
Nonmajor Internal
Out Generat Governmentat Airport
General $ $ 1 ,682,714 $ 472,859 $ 750,000 $ 2,905,573
Nonmajor Governmental 1 57,500 120,1 49 277,649
$ 1 57,500 $ 1 ,802,863 $ 472,859 $ 750,000 $ 3,1 83,222
NOTE 16: RELATED PARTY TRANSACTIONS
During fiscal year 2008, the County's General Fund entered into transactions the Victoria County Child
Welfare Board, a discretely presented component unit of the County, whereby the County contributed to the
Board $60,000 for operational purposes,
50
NOTE 11: 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 in 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 in 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 :11 , 2008, the County was involved in various mailers of litigation. It is the opinion of the
County's legal counsel that any exposure faced by the County as a result of these mailers was minimal.
Furthermore, any losses incurred would in all probability be covered by tiability 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 1 8: 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 3 1 , 2008.
NOTE 19: VICTORIA COUNTY NAVIGATION DtSTRICT
As described In Note 1, the Victoria County Navigation District is a component unit of the County. tt is
reported In 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
The 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 into Chapter 62, Texas Water Code). The Board of Navigation and the Canal
Commissioners (the "Directors") 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 m anagement, ttle responsibility to significantly influence operations, and
primary accountability for fiscal matters including taxing authority,
B. Sl,lmmaryof $Ignificant Accounting Policies
The accounting and reporting poliCies of the District conform to GAAP, as applicable to governmental
units, For Inclusion in this report, the District's operations are reported in a single Governmental Fund Type.
C. Deposits and .lnvestments
The District's funds are deposited and invested under the terms of the Victoria County's depository
contract. The depository bank, First Victoria National Bank, deposits for safekeeping and trust with
Victoria County's agent bank, approved pledged securities in an amount sufficient to protect the District's
funds on a day-to-day basis during the period of the contract The pledge-approved securities are waived
only to the extent of the depository bank's dollar amount of FDIC insurance.
As of December 3 1 , 2008, the District had the following investments:

Weighted Average
___ ",
I n"vestment Type
.,,-
__ Amorti:z:�d Cost MallJrity (Days)
Public Funds Investment Pool $ 4,949,038 43
51
NOTE 1 9 : VICTORIA COUNTY NAVIGATION DISTRICT - (Continued)
C. Deposits and Investments - (Continued)
The pool operates in a manner consistent with the Securities and Exchange Commission's ("SEC")
Rule 2(a)(7) of the Investment Company Act of 1 940 but are not registered with the SEC as an
investment company. Instead, the regulatory oversight for the pool is the State of Texas. The pool uses
amortized cost rather than m arket value to report net assets to compute share prices. Accordingly, the
fair value of the position in this pool is the same as the value of the shares in the pool.
Interest Rate Risk
In accordance with the District's investment policy, the District manages its exposure to declines in fair
values by limiting the weighted average maturity of its investment portfolio to less than one year from the
time of purchase. The L.O.G.I.C. Investment Pool's weighted average maturity cannot exceed 60 days.
Credit Risk
The District's investments in the public funds investment pool include those with the L.O.G.I.C.
Investment Pool. The pool operates in full compliance with the Public Funds Investment Act and is rated
AAAm by Standard & Poor's.
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 in a specific class of investments, specific maturity, or specific user. At
year-end, the District was not exposed to concentration of credit risk.
CustQQi\lLQredit 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. During the fiscal year and at year-end, all deposits held in the depository bank were fully
collateralized and therefore the District was not exposed to custodial credit risk.
Custodial Credit Risk - Investments
For a n investment, this is the risk that, in the event of the failure of the counterparty, the District will not be
able to recover the vatue of its investments or collateral securities that are in the possession of an outside
party. All of the Districrs investments are invested in the LO,G,I.C, Investment Pool and it has no
custodial credit risk.
D, Receivables
Receivables at December 3 1 , 2008, consist of the following:
Debt
General Service
Fund Fund Total
Gross receivables:
--...............-----�
Accounts $ 38,857 $ $ 38,857

Ad valorem taxes 936,860 267,942 1,204,802
Total gross receivables 975, 7 1 7 267,942 1 ,234,659
Less: Allowances 1 2,322 56,1 1 1
Total net receivables $ 255.620 $ 1.1§,Ui4Sl
52
NOTE 1 9: VICTORIA COUNTY NAVIGATION DISTRICT · (Continued)
D. Receivables - (Continued)
The District's governmental funds report deferred revenue in connection with receivables for revenues
lhat are not considered to be available to liquidate liabilities of the current period. The governmental
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 ��<:lme�
General Fund
Ad valorem taxes receivable $ 62,082 $ 1 ,1 80,031 $ 1 ,242, 1 1 3
Debt Service Fund
Ad valorem taxes receivable 21,496 392,51 8
$ 83,578 $ .............1&Q,1,9§,�
The District's ad valorem property tax is levied each October 1 on lhe 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 Oclober 1 levy date. A statutory lien becomes effective on all property with
unpaid taxes as of January 1 of the year following the assessment.
E. Due From Olher Governments
At December 31 , 2008, lhe Victoria County Tax Assessor and Collector held lax receipls that had been
collected for, but not yet remitted to, the District. These amounts are reported as due from other
governments i n the government-wide and fund financial statements.
F. Prepaid Lease Relating to Land Purchase
The PFC purchased 1 800+ acres of land, inclusive of a n appurtenant water rights permit in 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 paid in advance. The PFC immediately sold the consumptive water rights permit to the Dislrlct
for $2,337,800, which immediately sold them to the City of Victoria, Texas. The prepaid lease amount as
of December 3 1 , 2008, was $2,981 ,202. This amount is recorded as an asset in Ihe General Fund
balance sheet a t year-end. The PFC recorded the advance payment as deferred revenue as of
December 3 1 , 2008, in the same amollnt. The asset and deferred revenue amounts were eliminated In
the government-wide financial slatements since the cosl of the land is included as part of the capital
assets of the governmental activities.
53
NOTE 19: VICTORIA COUNTY NAVIGATION DISTRICT - (Continued)
G. Capital Asset§
The District's capital asset activity for the year ended December 31 , 2008, was as follows:
Beginning Ending
Balance Increases Decreases -� ........
Balance--
Capital assels, not being depreciated
Land $ 1 1 ,897,356 $ $ $ 1 1 ,897,356
Construction in progress 214,596 2 1 4 ,596
Total capital assets, not being depreciated 1 1 ,897,356 2 1 4 , 596 -.12.,.1.1 1 ,952

Improvements 8,347 , 1 53 8,347 , 1 53
M.P.R.R. Main Line Bridge 1 ,493,1 34 1 ,493,1 34
Equipment 8, 816 9,995
Total capital assels, being depreciated 9,849, 1 03 1 , 1 79 9,850,282
Less accumulated depreciation for

Improvements 5,316,1 1 0 304,071 5,620 , 1 8 1
M.P.R.R. Main Line Bridge 1 , 1 66,419 27,677 1 ,1 94,096
Equipment 5,907 864 6,771
Total accumulaled depreciation 6,488,436 __ 3�?,612 6,821 ,048
Total capital assets being depreCiated, net 3,360,667 �1,433) 3,029,234
Governmental activities capital assets, net $ 1 5,258,023 $ ( 1 1 6,837) $ 1 5 , 1 4 1 , 186
Depreciation expense of $332, 6 1 2 was charged to the general government function/program in 2008.
H. Long-term Debt
The following is a summary of general obligation bond transactions for the year ended December 3 1 , 2008,
for governmental activities:
Bonds payable at January 1 , 2008 $ 2,21 0,000
Additions 6,090,000
Retirements (285.000)
Bonds payable at December 3 1 , 2008 $ 8.01 5,000
Bonds payable at December 3 1 , 2008, are comprised of the following issues:
2003 General Obligation Refunding Bonds due in annual instailments

of various amounts beginning in 2005 through February 1 5, 2014;
interest rate varies based on year of maturity and ranges from 3.0%
to 3.75%. $ 1 ,925,000
2008 Revenue Bonds due in annual instaliments of various amounts
beginning in 2009 through June 1 , 2028; interest rate of 4.8%. 6,090,000
Tolal lJl..!li;i" QOO
54
NOTE 19: 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 Prin(;iQ?I _� Total

2009 $ 480,000 $ 347,561 $ 827,561
2010 500,000 329,641 829,641
201 1 51 5,000 3 1 0,423 825,423
201 2 540,000 290,014 830,014
201 3 565,000 267,808 832,808
2014·2018 1 ,655,000 1 ,07 1 , 562 2,726,562
201 9·2023 1 ,655,000 71 1 ,480 2,366,480
2024-2028 2,1 05,000 .f6:2.,680 2,367,680
Total L�,j!,01 !\QOO $ 1 1 606,169
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 wilh interest
rates varying from 5,0% to 7.0% and to provide funding for costs of issuanco , 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 $ 1 ,900,000 of
bonds outstanding at December 31 , 2008.
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 claims during fiscal year 2008, There were
no signnicant reductions in coverage i n the past fiscal year, and there were n o settlements exceeding
insurance coverage for each ofthe past three fiscal years,
NOTE 20: 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. It is reported in a separate column to emphasize that it is legally separate for accounting purposes
from the County, Following are note d isclosures relating to this component unit:
A. Organization
The Commissioners' Court of Victoria County, Texas established the Board on August 8, 1 938. The
Board is a countywide, joinlly financed, state"administered program of child protection to m eet 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 Signific<lf:lt Accounting Policies
The accounting and reporting policies of the Board conform to GAAP, as applicable to governmental
units. For inclUSion in this report, the Board's operations are reported in a single Governmental Fund
Type.
55
NOTE 20: VICTORIA COUNTY CHILD WELFARE BOARD - (Continued)
C. Deposits and Investments
The Board has deposits that are held by one financial institution within Victoria County, Texas. At
December 31 , 2008, and 2007, the carrying amount of the Board's deposits was $1 79,257 and $1 32,956,
respectively. The bank balances were $1 80,097 and $1 36,1 65, respectively. The deposits are
collateralized by FDIC coverage as follows:
2008 2007
Insured by FDIC $ 1 80,097 $ 1 36,165
Amount of Board's deposits uncollateralized
by financial institutions
Total $ 1 80,097 $ 1 36,165
Texas Statutes authorize the Board to invest in:
1 . obligations of the U . S. Treasury or its agencies;
2. direct obligations of the State of Texas or its agencies;
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
firm;
5. certificates of deposit that are insured by the FDIC or secured by obligations having a market value
of at least the principal amount of the certificates; and
6. fully collateralized d irect repurchase agreements.
As of December 3 1 , 2008, the Board held $ 1 1 9,972 invested in FDIC insured certificates of deposit. The
Board held no other investments during the current fiscal year.
D. Budgetary Legal Compliance
For the fiscal year ended December 3 1 , 2008, the Board complied with budgetary restrictions except as
follows:
Fund Variance
General Fund:
Accounting fees $ 280
56
NOTE 21: CITIZENS MEDICAL CENTER
As described in Note 1, Citizens Medical Center is a component unit of the County. It is reported in 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. Organiz@!ion
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 in 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,
B, Summary of SignificantA£countingJ'olicies
The financial statements of lhe Medical Center have been prepared on the accrual basis of accounting
USing the economic resources measurement focus, Revenues, expenses, gains, 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 in nonoperating revenues and expenses, The M edical
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 in 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 during the reporting period,
Actual results could differ from those estimates,
Cash Equiv"lclIlts
The Medical Center considers all liquid investments, with original maturities of three months or less, to be
cash equivalents, At June 30, 2008, cash equivalents consisted primarily of money market mutual funds,
57
NOTE 2 1 : CITIZENS MEDICAL CENTER - (Continued)
B. Summary of Significant Accounting Policies - (Continued)
Risk Management
The Medical Center is exposed to various risks of loss from torls; theft of, damage to, and destruction of
assets; business interruption; errors and omissions; employee injuries and illnesses; natural d isasters;
and employee health, dental and accident benefits. Commercial insurance coverage is purchased for
claims arising from such matlers other than general and professional liability, employee health claims and
workers' compensation. Settled claims have not exceeded this commercial insurance coverage in 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 liability, employee health claims and
workers' compensation, and include an estimate of Ihe ultimale costs for both reporled claims and claims
incurred but not yet reported.
Investments in Debt Securities
I nvestmenls 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 investments sold
and the net change for the year in the fair value of investments carried at fair value.
Supplies
Supply inventories are stated at the lower of cost, determined using 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 5 10 25 years

Buildings, building improvements, and fixed equipment 3 to 40 years
Major movable equipment 3 to 25 years
Net Assets
Net assets of the Medical Center are classified in three components. Net assels invested i n 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 extemal to the Medical Center, including amounls 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.
58
NOTE 2 1 : CITIZENS MEDICAL CENTE R · (Continued)
B. Summ"ry of Significant Accounting PoliciQ§ - (Continued)
Net Patient Service Revenue
The Medical Center has agreements with third-party payers that provide for payments to the M edical
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 in future periods as
adjustments become known.
Def(med Financing Cos ts
Deferred financing costs represent costs incurred in connection with the issuance of long-term debt.
Such costs are being amortize,j over the term of Ihe relaled bond issues using the straight-line method.
The unamortized amount of deferred financing costs is included in other assets on the balance sheet.
Gh"rity 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 qualify 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 is generally exempt from federal and
state income taxes under Section 1 1 5 of the I nternal 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.
J::.�.timated ProfElssional Liability 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 liability claims and includes an estimate of the ultimate costs for both reported claims and
claims incurred but not reported.
CQmpensated A.bsences
Medical Center policies permit most employees to accumulate vacation benefits that may be realized as
paid time off or, in limited circumstances, as a cash payment. Expense and the related liability are
recognized as vacation benefits are earned. Compensated absence liabil ities are computed using the
regular pay and termination pay rates in 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.
PatiEl.nt 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 in 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.
59
NOTE 2 1 : CITIZENS MEDICAL CENTER · (Continued)
B. Summary of SignificanLAccounting Policies · (Continued)
BeQi.<lIlSificatioQ§
Certain reclassifications have been made to the 2007 financial statements to conform to Ihe 2008
financial statement presentation. The reclassifications had no ellecl on the results of operations.
C. 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. 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 selllement determined after submission of
annual cost reports by the Medical Center and audits thereof by t h e Medicare fiscal intermediary. The
Medicare fiscal intermediary has audited the Medical Center's cost reports through June 30, 2006.
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 wilh final settlement determined after submission of
annual cost reports by the Medical Center and audits thereof by the Medicaid fiscal intermediary.
Approximately 47% of net patient service revenues are from participation in the Medicare and slate
sponsored Medicaid programs for the year ended June 30, 2008. 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 materia" Y 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 2008, net patient service reVenue includes approximately $1 0,926,577 of funds received through the
Medicaid Upper Payment limit program.
D. Accounts Receivable
The Medical Center grants credil 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, 2008, consisted
of these amounts:
Patients and their insurance carriers $ 31 ,379,184

Medicare 5,982,307
Medicaid 1 , 1 70,843
38,532,334
less allowance for uncollectible amounts _ 21 ,500,000
$ J7�Q;!2,334
60
E. Capital Assets
Capital asset activity for the year ended June 30, 2008, was as follows:
Batance B alance
Additions Transfers
------�.....
Disposals June 30, 2008
Land and land improvements $ 6,955,448 $ 585,1 1 6 $ 1 37,741 :> $ 7,678,305

fixed equipment 94,943,200 894,739 3,01 6,4 1 2 98,854,351
Major moveable equipment 87,788,704 4,022,188 3,456,01 4 95,266,906
Construction in progress 1 2,21 9,992 16,61 0,1 67) 1 96
1 94,667,723 1 7,722,035 2 1 2,389,758
Less accumulated depreciation:

Land and land improvements 1 ,535,768 1 08,750 1 ,644,518
Buildings, im provements, and
fixed equipment 42,429,042 2,876,001 45,305,043
Major moveable equipment 71 ,243,885 _.. �,:JQ7, 066
1 1 5,208,695 8,291 ,81 7 1 23,500,51 2
Capital assets, net $ 79,459,028 $ 9,430,218 $ $ 88,889,246
Depreciation and amortization expense includes $ 1 53,278 of amortization charges related to bond issue
costs.
F. P\ll'Qsits, Investments, and Il1vestmel1t Income
Deposits
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 collateralizalion of all deposits with federal depository insurance; bonds and other
obligations of the U.S. Treasury, U.S. agencies or instrumentalities of the State ot Texas; bonds of any
city, county, school d istrict or special road district of the State ot Texas; boods of any state; or a surety
bond having an aggregate value at least equal to the amount of the deposits.
At June 30, 2008, $97,554 of the Medical Center's bank balance of $ 1 07,509,391 was exposed to
custodial credit risk as follows:
Uninsured and uncollateralized $ 97,554

Uninsured and collateral held by pledging financial
institution's trust department or agent in other
than the Medical Center's name.
Total
61
NOTE 2 1 : C ITIZENS MEDICAL CENTER · (Continued)
F, P�fl.9sits, IO)l(l�rl1�nts, and Investment Income - (Continued)
Investments
The Medical Center's internally designated investments are made by tho Victoria County Treasurer and
either held by the County or bank trust departments in the County's name. In accordance with the
Medical Center's investment policy, these investments are in either money market mutual funds or
government obligations,
At June 30, 2008, the Medical Center had the following investments and maturities:
Maturities in Years
T�pe Fair Value Less Than 1
U,S, agencies and obligations $ 2,036,871 $ 2,036,871 $ $
Money market mutual funds 5,033,181 5,033,1�!
7,070,052 7,070,052
Accrued investment income
$ 7,070,052 $ 7,070,052
• Interest Rate Risk · As a means of limiting 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 in full immediately,
• GI§'<:IijRisk - Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill
its obligations, At June 30, 2008, the Medical Center's investments that were not directly guaranteed
by the U.S. government were rated as follows:
Investment Moody's S&P
U.S. agencies obligations Aaa AAA AAA
Money market mutual funds Aaa AAA 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, 2008, individual investments that exceeded 5% of the total
fair value of all investments are listed below,
Percent
_________
ecc
�Investmccnt'____ ______
of Total
Federal National Mortgage AssOCiation, January 1 5, 2009 L 2,036,871 29.28%
$ £,03G., 871 29,28�4
62
NOTE 21 : CITIZENS MEDICAL CENTER - (Continued)
F. Deposits, I nvestments, and I nvestment Income - (Continued)
Summary of Carrying Values
The carrying values of deposits and investments shown previously are included in the balance sheets as
follows:
Carrying value
Deposits $ 105,394,370
Investments m],070,052
�tt2A64,422
Included in the following balance sheet captions

Cash and cash equivalents $ 1 05,394,370
Restricted cash and cash equivalents current 5,033,18 1
Restricted cash and cash equivalents - noncurrent 2,036,871
$ 1 1 2.464.422
I nvestment Incom�
Investment income consists of the following:

Interest and dividends $ 4,085,992
Unrealized gain (loss) on investments 93,580
$ 4,1 79,572
G. hilllfi:.tElrm Obligations
The following is a summary of long-term obligation transactions for the Medical Center for the year ended
June 30, 2008:
Batance Balance Curnent

June 30, 2007 Additions Deductions June 30, 2008 Portion
Long-term debt
Series 1994 Bonds (A) $ 1 7,990,000 $ $ ( 1 ,525,000) $ 1 6,465,000 $ 1 ,765,000
Series 1999 Bonds (B) 1 6,535,000 (1,020,000) 1 ,070,000
Total long-term debt $ 34,525,000 $ �J2,545,00().1 $ 31 ,980,000 $ 2,835,000
(A) Due January 1 , 2016; principal payable a n nually on January 1 ; interest payable semiannually at
interest rates varying between 4.00% to 6.25%; secured by the Medical Center's net reVenues and
trustee-held assets.
(B) Due February 1 5, 201 9; principal and interest payable semiannually at interest rates varying
between 4.30% and 6.25%; secured by the Medical Center's net revenues and trustee-held assets.
63
NOTE 2 1 : ... .cITlZENS MEDICAL CENTER - (Continued)
G, Long-term Obligations - (Continued)

Under the terms of the Revenue Bond Indentures, the Medical Center is required to maintain certain
funds with a trustee, Accordingly, these funds are included as assets held by trustee for debt service in
the balance sheets, The Revenue Bond Indentures also place limits on the incurrence of additional
borrowings and requ ire that the Medical Center satisfy certain measures of financial performance as long
as the bonds are outstanding,
The debt service requirements as of June 30, 2008, are as follows:
Years Ending June 30, Total Princi,:>al I nterest
2009 $ 4,651 ,036 $ 2,835,000 $ 1 ,81 6,036
201 0 4,639,598 2,990,000 1 ,649,598
201 1 4,484,001 3,010,000 1 ,474,001
201 2 4,487,199 3, 1 95,000 1 ,292 , 1 99
201 3 4,489,230 3,390,000 1 ,099,230
2014-2018 1 7,241 ,531 1 4, 745,000 2,496,531
201 9-2021 _� J,91 4,825 _� ,h81 5,000 99,825
t. 4 1,,,07.420 L31.9l}Q,OO O L , ;'),927,420
H, Derivative InstrIJ.ments
Objectivepf the Derivative IOstruments

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 in future cash flows due to interest rate fluctuations and to lower its borrowing costs when
compared against fixed-rate debt at the time 01 issuance, the Medical Center entered into six separate
totat 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 01 the Series 1 994 debt, back to a fixed rate of 3.05 percent,
which is lower than the original effective fixed interest rate 01 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 ("LlBOR") and will pay Interest to the cou nterparty 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 Ihe BMA Index plus
24 basis points, and will receive interest at rales 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.
The notional amounl 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 amounl 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 In interest expense.
64
NOTE 21 : CITIZENS MEDICAL CENTER - (Continued)
H. Derivative Instruments - (Continued)
As of June 30, 2008, the agreements had an aggregate fair value of $(22,510) 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 using the current yietd to maturity of a comparable bond. The
variable-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 in the tolal return base price
( 1 03 percent of tho bonds par value) at June 30, 2008, 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 2 percent premium payment due on January 1 , 2007. No additional premium payments are
due as of June 30, 2008.
InterestRate Risk
Subsequent to year-end, the swap counterparty notified the Medical Center that it had elected to
terminate the swap effective November 4, 2008. 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, 2008. Should the counterparty to this transaction fail to perform according to the terms of Ihe
swap agreements, the Medical Center has a maximum possible loss equivalent to the swaps' fair value at
that date. As of June 30, 2008, the Medical Center was exposed to credit risk because the swap had a
negative fair value. The swap counterparty was rated AA- by Fitch Ratings, A+ by Standard & Poor's,
and Aa3 by Moody's Investor Service as of June 30, 2008.
Basis Risk
The swaps expose the Medical Center to basis risk should the relationship between LlBOR and BMA
rates bonds change in 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.
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 al 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.
65
NOTE 2 1 : CITIZENS MEDICAL CENTER . (Continued)
H. Derivative Instruments - (Continued)
Rollover Risk
The Medical Cenler 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 counlerparly exercises its option, the Medical Center will nol realize
the synlhelic rale offered by Ihe tolal return swaps on Ihe bonds. In addition, the Medical Cenler will be
subject 10 disproportionate inleresl rate risk subsequent to the last tolal return swap maturity (at latest
November 2, 201 1 , unless earlier terminaled by the counterparty) as il is obligated to pay fixed rales on
Ihe remaining outstanding bonds and will also pay fixed rales and receive variable rales on the inleresl
rate swap through January 2016.
Swap Paymenl§. i!nd Associated Debt
Using rates as of ,June 30, 2008, debt service requirements of the Series 1 994 bonds and net swap
payments , assuming current interest rates remain the same, for their term are set forlh In Ihe table shown
below. As rates vary, net swap payments will vary.
Series 1 994 Bonds

Interest Rate
Prlnci�al Interest Swap, Net Total
2009 $ 1 ,765,000 $ 971 ,871 $ (563,005) $ 2,1 73,866
201 0 1 ,865,000 860,003 (526,275) 2,1 98,728
201 1 1 ,825,000 745,1 56 (526,275) 2,043,881
201 2 1 ,945,000 627,344 ( 1 48,308) 2,424,036
20 1 3 2,070,000 501 ,875 46, 1 66 2,61 8,041
201 4-2026 6,995,000 673,281 1 38,497 7,806,778
�L1QA.fi5J)00 :R .......'l3Z9,�;J.Q $ (1 ,579,200)
I.
The Medical Center partially self-insures the cost for its general and professional liability, employee health
care benefits, and workers' compensation. The Texas Tort Claims Act limits the M edical 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 2008. Stop-Joss coverage for employee health claims began at $450,000 during 2008.
Losses from asserted and unasserled 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 thaI the funds designated by the Medical Center related to s elf-insured general and
professional liability and the accrued liabilities for all self-insured claims are sufficient to cover any losses
II may Incur. It is reasonably possible Ihal Ihe Medical Center's estimate of losses will change by a
material amount i n the near term.
66
NOTE 21 : CITIZENS MEDICAL CENTER · (Continued)
I. Self-insured Claims - (Continued)
Activity in the Medical Center's self-insured claims liability accounts during 2008 and 2007 are
summarized as follows:
2008
Em ployee General and
Health Care Workers' Professional
Benefits Compen�"tio� Liability
Balance, beginning of year $ 1 ,084,334 $ 659,260 "$ 1 ,000,000
Current year claims incurred
and changes in estimates for
claims incurred in prior years 6,51 6,749 403,491 1 47,564
Claim and expenses paid, net (6,301 ,083) (247,408)
Balance, end of year $ 1 ,300&00 3i 8 1 5,3<l� 'L.. LQQQ&Q!l
2007
Employee General and
Health Care Workers' Professional
Benefits Compensation Liability
Balance, beginning of year $ 1 ,045,529 $ 697,531 $ 1 ,000,000
Current year claims incurred
and changes in estimates for
claims incurred in prior years 5,274,999 1 92,623 59,898
Claim and expenses paid, net (5,236 , 1 94 ) (230,894) ____ 159,898)
Balance, end of year ilL 1 ,084,3},1 § 1 ,000,000
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 in net patient service
revenue , In 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.
In addition to uncompensated charges, the M edical 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 fhat 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,
67
NOTE 2 1 : CITIZENS M EDICAL CENTER - (Continued)
K. 13.('1.I <l.ted 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 in general revenue.
L. E('1nsion Plan
The Medical Center sponsors The Texas Hospital Association Retirement Plan for Citizens Medical
Center ("the Plan"), an agent multi-employer defined benefit pension plan Ihat covers eligible employees.
The Plan is administered 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 HealthSharelTHA. That report may be obtained by writing
HealthSharelTHA at P.O. Box 1 5587, Austin, Texas 78761 -5587.
During 2008, the Medical Center adopted the GASB 50, Pension Disclosures-an Amendment of GASB
Statements 25 and 27 ("GASB 50"), which revised the pension plan disclosure requirements in the
financial statements. GASB 50 enhances information disclosed in the notes to the financial statements
and requires certain additional supplementary information retated to the Medical Center's pension plan.
Among other items, GASB 50 requires the Medical Center to d isclose the funded status of ils pension
plan because the aggregate actuarial cost method is used to determine the annual required contributions
of the Medical Center ("ARC"). GASB 50 also requires the Medicat Center to include a schedule of
funding progress as supptementary information. The adoption of GASB 50 had no impact on the Medical
Center's financial position or change in net assets.
All Medical Center employees who work 20 or more hours per week for at least five months during a year
are eligible for the Plan. There is no minimum age requirement for Plan participation.
The Plan provides retirement, death and disability benefits. Additionally, the Plan 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 in 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.
Plan participants are required to contribute at rates ranging from 4.0 percent to 5.5 percent in 2008 of
Iheir prior Plan year compensation. The Medical Center makes contributions at an actuarially determined
amount, which equaled 7.1 percent of participant-covered compensation for 2008 and is expecled to be
6.3 percent of participant-covered compensation for 2009. The costs of administering the Plan are paid
by the Plan and are considered in the determination of the employer contribution rate.
68
L. Pension Plan - (Continued)
Annual Pension Cost

For the fiscal year ended June 30, 2008, the Medical Center's Annual Pension Cost ("APC") was
$2,1 64,351 , which was equal to the Medical Center's annual contributions.
The required contributions for 2008 were determined based on the results of actuarial valuations as of
March 1 , 2008, using the aggregate actuarial cost method. The actuarial assumptions included (a) a
7.75 percent investment rate of return (net of administrative 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 2007 actuarial valuation did not include any postretirement benefit
increases. For the 2008 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 using a five-year adjusted market value method for both valuations.
Trend Information
Annual Pension Percentage of APC Net Pension
Year Ended Cost (APC) Contributed Obligation (Asset)
2008 $ 2,1 64,351 1 20% $ (1 ,422,972)
2007 1 ,828,350 1 30% (987,323)
2006 1 ,597,392 1 1 4% (446,673)
There was no separately determined unfunded actuarial accrued liability and no amortization period at the
March 1 , 2008, valuation date due to the actuarial cost method being used.
Funding Status and Funding Progress

As of March 30, 2008, the most recent actuarial valuation date, the plan was 86.2 percent funded. The
actuarial accrued liability for benefits was $39,090,289 and the actuarial value of assets was $33,701 ,204,
resulting in an unfunded actuarial accrued liability ("UAAL") of $5,389,086. The covered payroll (annual
payroll of active employees covered by the plan) was $37,999,919 and the ratio of the UAAL to the
covered payroll was 1 4 .2 percent.
The schedule of funding progress, presented as supplementary information following the notes to
financial statements in the Medical Center's financial statements, presents multi-year trend information
about whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liability benefits.
M . Designated Net Assets

At June 30, 2008 and 2007, unrestricted net assets have been designated by the Medical Center's Board
of Directors for the following purposes:
2008 2007
Capital acquisitions $ 1 0,631 ,486 $ 20,235, 1 79
Self-insured professional liability 91 6,062 881 ,81 6
Self-insured health care 197,554 1 23,833
Designated net assets remain under the control of the Board of Directors, which may at its discretion later
use these net assets for other purposes.
69
NOTE 21 ; CITIZENS MEDICAL CENTER · (Continued)
N. Contingencies
In the normal course of business, the Medical Center is, from time to time, subject to allegations that may
or do result in litigation. Some of these allegations are in 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 claim. 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.
0. Future Gbange in Accounling Principle
The GASB recently issued its Statement No. 53 ("GASB 53"), Accounting and Financial Reporting for
Derivative Instruments. The statement addresses the recognition, measurement and disclosure of
information regarding derivative instruments entered into by the state and local governments. The
Medical Center expects to first apply GASB 53 during the year ending June 30, 2010 . A key provision in
this statement is that derivative instruments are reported at fair value. The changes in fair value of
derivative instruments that are llsed for investment purposes or that are reported as investment derivative
instruments because of ineffectiveness are reporled within the investment revenue classification.
Alternatively, the changes in fair value of derivative instruments thaI are classified as hedging derivative
instruments are reported in the statement of net assets as deferrals.
P. "ubsequent Events
Subsequent to year-end, the counterparty to the Medical Center's swap agreement elected to terminate
the swap. The swap will terminate on November 4, 2008, at which time the Medical Center and the
cQunterparty will exchange the fair market value of the agreement.
70
Requ i re d Supplementary Information
MAJOR G OVERNMENTAL FUND - GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Actual Budget
Amounts to GAAP Actual
Original Final Budgetary Differences Amounts
Budget Budget Basis Over (Under) GAAP Basis ...........-
REVENUES
Taxes $ 20,855,264 $ 2 1 , 2 1 5,264 $ 2 1 ,71 3,775 $ (25,683) $ 21 ,739,458
Fees of office and user fees 1 ,853,550 1 ,858,550 1 ,622,600 2 , 1 44 1 ,620,456
Intergovernmental 4,231 , 1 00 4,393,953 4,1 90,472 ( 1 22,285) 4,31 2,757
Fines and forfeitures 1 ,805,100 1 ,805,1 00 1 ,440,402 45,832 1 , 394,570
Investment income
Interest 1 ,000,000 1 ,000,000 437,647 38,549 399,098
Licenses and permits 38,100 38,100 39,074 573 38,501
Contributions 400 1 8,200 1 7,800 1 7,800
Miscellaneous 71 0,662 759,870 730,201 (34,058) 764,259
Total revenues 30,494,176 ...1.1Q8 9,037 30, 1 9 1 ,971 �94,928) 30,286,899
EXPENDITURES
Current
General government 1 4, 973,383 1 6,834,298 1 6 , 1 86,677 (816,516) 1 7,003,193
Public safety 1 2,949,166 1 3,607,102 1 3,436,064 (25,015) 1 3,461 ,079
Culture and recreation 403,374 426,174 400,284 (5,617) 405,901
Public health 1 82,947 2 1 8 ,442 1 1 9,778 3,604 1 1 6, 1 74
Capital outlay 921 ,000 92
Total expenditures 28,508,870 32,007,016 30,876,995 (843,544) 31,720,539
Excess (deficiency) of revenues over

expenditures 1 ,985,306 (91 7,979) __
_
(!385,024) 748,616 mm(1 ,433,640)

Sale of assets 20,000 20,000 46,608 277 46,331
Transfers i n 1 5 7,500 1 57,500 1 57,500 1 57,500
Transfers out (2, 1 62,806) (3,045,431 ) (2,905,573) (2,905,573)
Total other financing sources (uses) ,._.

(1,985,306) (2,867},�1) (2, 701 ,465) 277 (2,701 , 742)
Change in fund balance (3,785,910) (3,386,489) 748,893 (4,135,382)
Fund balance, January 1 ��:'I?,884 1 0 ,342,884 ....

1 0, 342,884 (2,1 6 1 , 320) ......
1 2,504,204
Fund balance, December 3 1 $ 1 0, 342,884 $ 6,556,974 $ 6,956,395 $ ( 1 ,41 :1,427) $ 8,368,822
Explanatlon of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
The accompanying notes to required supplementary information are an integral part of this schedule.
71
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2008
NOTE 1 : BUDGETARY BASIS OF ACCOUNTING
The County annually adopts budgets that are prepared using the cash basis of accounting, which is no!
consistent with generally accepted accounting principles (GAAP). A reconciliation to GAAP basis is provided
in the preceding statement.
72
Combining and Individual F u n d Statements and Schedules
ALL NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
December 31, 2008
Total Total Total

Nonmajor Nonmajor Nonmajor
Special Debt Governmental
Service Funds Funds
ASSETS
Current assets
Cash and cash equivalents $ 3,624,1 33 $ 7 1 4,832 $ 4,338,965
Receivables (net) 1 ,901 ,025 1 ,226,297 3,1 27,322
Due from other governments 1 ,253,277 1 ,253,277
Due from other funds 303
Total assets $ 6,778,738 $ 1 ,941 ,1 29 $ 8,71 9,867
LIABILITIES AND FUND BALANCES

liabilities
Accounts payable $ 287,101 $ $ 287,101
Accrued expenditures 1 99,459 1 99,459
Due to other funds 966,220 966,220
Deferred revenue 2,654,21 7 1 ,736,764 4,390,981
Total liabilities 4 , 1 06,997 1 ,736,764 5,843,761
Fund balances
Unreserved, undesignated reported in:
Special revenue funds 2,671 ,741 2,67 1 ,741
Debt service funds 204,365 204,365
Total fund balances ____
2,.671 , r� 1 204,365 2,876,106
Total liabilities and fund balances $ 6,778,738 $ 1 ,941 , 1 29 $ 8,71fj,867
73
ALL NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Total Total Total

Nonmajor Nonmajor Nonmajor
Special Debt Governmental
Revenue Funds Service Funds Funds
REVENUES
Taxes $ 2,4 1 2,754 $ 1 , 730,678 $ 4,143,432
Fees of office and user fees 1 , 1 34,647 1 , 134,647
Intergovernmental 6,1 77,744 6,1 77,744
Fines and forfeitures 28,054 28,054
Investment income 98,461 9,532 1 07,993
Contributions 7,765 7,765
Miscellaneous 79,653 79,653
Total revenues 9,939,078 1 , 740,210 1 1 ,679,288
EXPENDITURES
Current
General government 2,427,103 2,427, 1 03
Public safety 559,379 559,379
Highways and streets 4,71 3,221 4,71 3,221
Culture and recreation 1 2,649 1 2,649
Public health 4,1 78,318 4,1 78,318
Debt service
Principal retirement 1 ,360,000 1 , 360,000
Interest and fiscal charges 293,390 293,390
Total expenditures 1 1 ,890,670 1 ,653,390 1 3,544,060
Excess (deficiency) of revenues

over expenditures (1 ,951 ,592) 86,820 (1,864, 772)

Capital lease proceeds 1 05,324 1 05,324
Transfers in 1 ,802,863 1 ,802,863
Transfers out (277,649) (277,649)
Total other financing sources (uses) 1 ,630,538 1 ,630,538
Change in fund balances (32 1 , 054) 86,820 (234,234)
Fund balances at beginning of year 2,992, 795 1 1 7,545 3,1 1 0,340
Fund balances at end of year $ 2,671 ,741 $ 204,365 $ 2,876, 1 06
74
NONMAJOR SPECIAL REVENUE FUNDS
Special 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 BRIDGE 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 is divided into four precincts, each of which is administered by one of the four County
Commissioners. Each precinct has a separate budget for construction and maintenance of roads and
bridges in the precinct The Road and Bridge Funds consists of the following:
Road and Bridge Precinct Funds Account for costs associated with the construction and
-
maintenance of roads and bridges in 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 m aintenance of roads and bridges in the four Commissioners' precincts. However, the
primary source of revenue in these funds is grant monies received by the County (and interest
earned thereon) which is 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:
Emergency Management Fund Accounts for the funds received from the City of Victoria and
-
the State of Texas for Emergency Management operations.

Records M anagement 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 in 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 Building 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 o f 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 22.214 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'" Court of Appeals.
FEMA Hazard Mitigation (3294-EM TX) Fund Accounts for funds received from the Federal
-
Emergency Management Agency for the major disaster declaration FEMA 3294-EM-TX for
emergency protective measures for Hurricane Ike.
75
NONMAJOR SPECIAL REVENUE FUNDS · (Continued)
OTHER SPECIAL REVENUE FUNDS · (Continued)

FEMA Hazard M itigation ( 1 624·02X) 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 land and the creation of a detention pond to temporarily hold storm
water run-ofI.
FEMA Hazard M itigation ( 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 flooding,
Juvenile Probation Fund - Records monies received by the County from the Texas Juvenile
Probation Commission as well as lransfers 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
-
lhe stale mandated programs for monitoring and rehabilitating violators of state drug laws.
Federal Foster Care Grant Fund Accounts for the funds received from the Administration for
-
Children and Families under the Department of Health and Human Services. The purpose of the
grant is to provide funds for administrative 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 administered by or under
the direction of Commissioners' Court and are used to repair damage, provide educational and
i ntervention programs, and provide public rewards,
Jusllce Technology Fund Accounts for funds received from a defendant convicted of a
-
m isdemeanor offense in a Justice Court, pursuant to Article 1 02.01 73, Code of Criminal
Procedures. These funds are administered by or under the d irection 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 administered by or under the direction of the
Commissioners' Court and are to be distributed to non-profit organizations in Victoria County,
CDA P rocessing Fee Fund Accounts for fees earned by the office of the Criminal 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 J ustice and administered 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 direct benefit to crime victims with
Federal assistance monies.
Sheriff 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 in the Sheriff's
Department and the Victoria Police Department.
Texas Vine Grant Fund Accounts for funds received from the Office of the Attorney General.
-
The purpose of the VINE (Victim Information and Notification Everyday) grant is to provide basic
information on jailed suspects/offenders and their scheduled court events to crime victims and
other concerned citizens.
76
NONMAJOR SPECIAL REVENUE FUNDS - (Continued)
OTHER SPECIAL REVENUE FUNDS - (Continued)
4-H Activity Center Fund - Appropriation from Victoria County to help fund the shooting sports
building 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 in a project to enhance border security along the Texas-Mexico border by
supplementing the border security efforts of federal agencies.
TXDOT Click 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.
Project Safe Neighborhood Fund Accounts for funds received from Sam Houston State
-
University through the Office of Justice Programs, providing the Victoria County Sheriff's Office
and the City of Victoria Police Department with software that will allow officers to identify gang
members. The County is reimbursed for overtime hours worked by the deputy sheriff officers to
manage data and perform fieldwork to identify gang members.
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 m isdemeanor 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.
Hazardous Materials Emergency Preparedness Planning Grant Fund Accounts for funds
-
received from the U.S. Department of Transportation to develop and implement a community
outreach campaign and educate the public through a local education and awareness campaign
on shelter"in-place.
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 improvements 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 in response to disasters.
BISD School Resource Officer Fund Accounts for funds received from Bloomington
-
Independent School District (BISD) to employ a juvenile probation officer that is housed and
working on BISD campuses.
Sheriff's Special Purpose Fund Accounts for the use of drug related monies awarded to the
-
Sheriff's Department via court proceedings.
CDA Contraband Forfeiture Fund Accounts for the use of drug related monies awarded to the
-
Criminal District Attorney via court proceedings post OctOber 1 7, 1 989.
77
NONMAJOR SPECIAL REVENUE FUNDS - (Continued)
OTHER SPECIAL REVENUE FUNDS - (Continued)
VISD Juvenile Probation Officer Fund Accounts for funds received from Victoria Independent
-
School District (VISD) to employ four juvenile probation officers that are housed and working on
VISD campuses,
Employee Benefit Fund - Accounts for funds received from commissions from vending
m achines 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,
Help 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 this grant fund is to provide reimbursement to Victoria County for expenses incurred in
upgrading voting systems to comply with new federal standards, Also, this grant provides
reimbursement for expenses incurred as a result of attending professional elections training such
as seminars and conferences,
Elections Chapter 19 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, andlor 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 lnvenlory
Escrow Account These funds are the sole property of the collector and are used to defray the
cost of administration of the prepayment procedure established by Texas Property Tax Code
Section 23,1 22,
Historical Commission Fund Accounts for monies 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 m aintenance 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 in 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 training to full-time law enforcement support
personnel.
78
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
December 31, 2008
Other
Road and Special
Bridge Revenue Total
ASSETS
Cash and cash equivalents $ 2,695,870 $ 928,263 $ 3,624, 1 33
Receivables (net)
Ad valorem 1 ,871 ,598 1 ,871 ,598
Other 1 6,514 1 2,91 3 29,427
Due from other governments 1 ,253,277 1 ,253,277
Due from other funds 303
........_-
303
........-
Total assets $ A,583,982 $ 2,1�4,756 $ 6,7711,738
LIABILITIES AND FUND BALANCE

Liabilities
Accounts payable $ 1 87,568 $ 99,533 $ 287,101
Accrued expenditures 65,988 1 33,471 1 99,459
Due to other funds 1 9,284 946,936 966,220
Deferred revenue 2,654,21 7 2,654,21 7
Total liabilities 2,927,057 1 ,1 79,940 4,1 06,997
Fund balance
Unreserved, undesignated ...
1 ,656,925 1 ,014,816 2,67 1 , 741
Total liabilities a n d fund balance $ 4,583,982 $ 2,1 94,756 $ 6,778,738
79
COMBINING STA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Other
Road and Special
Revenue Total
REVENUES
Taxes $ 2,41 2,754 $ $ 2,41 2,754
Fees of office and user fees 1 , 1 34,647 1 ,1 34,647
Intergovernmental 1 ,739,696 4,438,048 6,177,744
Fines and forfeitures 28,054 28,054
Investment income
Interest 72,875 25,586 98,461
Contributions 7,765 7,765
Miscellaneous 61 ,936 1 7,717
Tolal revenues _�4,287,261 5,651 ,81 7
EXPENDITURES
Current
General government 2,427, 1 03 2,427, 1 03
Public safety 559,379 559,379
Highways and streets 4,474,363 238,858 4,71 3,221
Culture and recreation 1 2,649 1 2,649
Pu blic hea Ith 4,1 78,3 1 8
Total expendilures _4,47lj,363 7,416,307 1 1 ,890,670

over expenditures (187, 1 02) (1 ,764,490) (1 ,951 ,592)

Capital lease proceeds 1 05,324 1 05,324
Transfers in 1 04,1 35 1 ,698,728 1 ,802,863
Transfers out (1 76,505) _� J101!144) (277,649)
TOlal olher financing sources (uses) 32,954 1 ,597,584 1 ,630,538
Change in fund balance ( 1 54,148) ( 1 66,906) (321 ,054)

Fund balance, January 1 1 ,81 1 ,073 ..............
2,992,795
Fund balance, December 31 $ 1 ,656,925 $ 2,671 , 741
80
December 31, 2008
Road and Bridge Funds
Pet. 1 2 PcL 3 Pel. 4

ASSETS
Cash and cash equivalents $ 754,686 $ 568,81 0 $ 830,555 $ 541 ,81 9
Receivables (net)
Ad valorem 483,671 446,071 437, 1 67 504,689
Other 4,031 3,647 -_.
4,805 4,031
Total assets $ 1 ,242,388 $ 1 ,0 1 8,528 $ 1 ,272,527 $ 1 ,050,539
LIABI LITIES AND FUND BALANCE

Liabilities
Accounts payable $ 8,234 $ 69,232 $ 24,508 $ 85,594
Accrued expenditures 1 7,298 1 3, 1 95 1 7,757 1 7,738
Due to other funds 5,326 3,995 5,057 4,906
Deferred revenue 684,882 633,352 620,535 71 5,448
Total liabilities 71 5,740 71 9,774 667,857 ....3...JlZ ,(i8()
Fund balance
Unreserved, undesignated 526,648 298,754 604,670 226,853
Total liabilities and fund balance $ 1 ,242,388 $ 1 ,0 1 8"528 $ 1 ,272,�27 ! 1 ,050,�39
81
Lateral Road Funds
1 Pel. 2 Pet 3 Pel. 4 Total
$ $ $ $ $ 2,695,870
1 ,871 ,598
1 6,514
$ $ $ $ 4,583,Q82
$ $ $ $ $ 1 8 7,568
65,9S8
19,284
2,654,21 7
2,927,057
1 ,656,925
$ $ $ $ 4,583,982
82
COMBINING S TA TEMENT OF REVENUES, EXPENDITURES, A ND CHANGES IN FUND BALANCE
Road and Bridge Funds

Pet. 2 Pet. 3
REVENUES
Taxes $ 663,257 $ 543,069 $ 543,000 $ 663,428
Intergovernmental 444,581 424,237 425,297 445,581
Investment income
Interest 20,524 1 5,991 1 9,731 1 6,314
Miscellaneous 1 2,907 24,1 67
Total revenues 1 996,204 1 ,0 1 2, 1 95 1 ,1 49,797
EXPENDITURES
Current
Highways and streets 1 ,071 ,31 7 981 ,8 1 7 1 ,294,037

over expenditures 1 (75,1 1 3) 30,378 mm m (144, 240)

Capital lease proceeds 1 05,324
Transfers in 36,190 36,981 9,11 8 2 1 ,846
Transfers out (20,000) (20,000) _�20,OOO) (28,697)
Total other financing sources (uses) 1 6, 1 90 1 6,981 94,442 (6,851 )
Change in fund balance 1 7,748 (58,132) 1 24,820 ( 1 5 1 ,091 )
Fund balance, January 1 508,900 356,886 479,850 _� 377,944
Fund balance, December 3 1 $ 5?6,648 $ 298,754 $ 604,670 $ 226,853
83
Lateral Road Funds
Pet. 1 Pel. 2 Pet. 3 Pet. 4 Total
$ $ $ $ $ 2,41 2,754
1 ,739,696
1 30 93 33 59 72,875
-- .......
-
6 1 ,936
1 30 93 33 59
4,474,363
1 30 59 (1 87, 1 02)
1 05,324
1 04,135
(36, 1 90) (25,937) (9, 1 1 8) (1 6,�63) (1 7tl,505)
(36,1 90) (25,937) .......
_�
(9.!1 1 8) ....6...J.1. ,�6:l) 32,954
(36,060) (25 ,844) (9,085) (1 6,504) ( 1 54, 1 48)
36' °tl() 25,84� 9,085 -..

�
-- 1 6,504 1 ,81 1 ,073
$ $ .1 ,656,925
84
December 31, 2008
Justice District
Court Clerk Appellate
Emergency Records Courthouse Building Records Judicial
Mgmt. Mgmt. Securit� Security Mgmt. System
ASSETS
Cash and cash equivalents $ $ 86,765 $ 29,935 $ 22,594 $ 7,735 $ 5 , 1 53
Receivables (net)
Other 373 237 53 6 6
Due from other governments 58,038
Due from other fu nds
Total assets $ 58,038 $ 87, 1 38 $ 30,172 $ 22,647 $ ?,741 $ 5 , 1 59
LIABILITIES AND FUND

BALANCE
Liabilities
Accounts payable $ 5,667 $ 706 $ $ $ 2 , 1 28 $ 5,313
Accrued expenditures 5,001 1 ,613
Due to other funds 45,041 18
Total liabilities 55,709 2,337 2, 1 28 5,31 3
Fund balance
Unreserved, undesignated 2,329 84,801 30,1 72 22,647 5,6 1 3 ( 1 54)
Total liabilities and fund

balance $ 58,038 $ 87, 1 38 $ 30, 1 72 $ 22,647 $ 7,741 $ 5 , 1 59
85
FEMA FEMA FEMA
Hazard Hazard Hazard Dru g Federal Juvenile
Mitigation Mitigation Mitigation Juvenile Courts Foster Care Delinquency Justice
3294 EM TX 1 62X DR TX 1 709 DR TX Probation F'r(jgr(lm_ Grant Prevention Technology
$ -
$ -
$ $ 1 52, 1 1 8 $ 9,609 $ 1 2 1 , 1 28 $ 115 $ 39,745
1 ,905 220
380, 1 1 0 44, 1 90 286,736 7,904
-�-----..-
$ 380, 1 1 0 $ 44, 1 90 $ 286,736 $ ...

1 60,022 $ 1 1 ,514 $ 1 21 , 1 28 $ 39,965
86
NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS
December 31, 2008
CDA Sheriff
Family CDA Victims Victims 4-H
Protection Processing Assistance Assistance Texas Vine Activity
Fee Fee
----------�
Grant Grant Grant Center
ASSETS
Cash and cash equivalents $ 26,069 $ 1 04,274 $ $ 7,865 $ -
$ 28,210
Receivables (net)
Other 4,21 2
Due from other governments 4,566 5,916 1 7,925
Due from other funds 303 --. .
Total assets $ 26,069 $ 1 08,486 $ 4,,�,�� $ 1 7,925 $ 28,210

BALANCE
liabilities
Accounts payable $ $ 5,680 $ 39 $ 34 $ $ 350
Accrued expenditures 3,532 1 , 547 1 ,462
Due to other funds 329 ___ 1c283 1 75 1 7, 925
Total liabilities 9,541 1 ,671 1 7,925 350
Fund balance
Unreserved, undesignated 26,069 �_
913, (l�2 1 2, 1 1 0 27,860

balance $ 26,069 $ 108,486 $ 4,869 $ 1 3,781 $ 1 7,9?? $ 28,2�O
87
Community
Operation TXDOT Project Byrne Emergency
Border Click IV Safe SCAAP JAG HMEP TCDP Response
Star Ticket Neighborhood Award
-_.....-
Program Grant Grant Training
$ $ $ $ 26,842 $ 5,276 $ $ $
34,252 1 ,1 6 1 4,856
$ 34,252 $ $ 1 , 1 6,�, $ 26,842 �.. "'"

5,276 $ $ $ 4,856
$ $ "
$ $ $ :& $ $ 2
332
34,252 1 ,232 5,41 6 7
34,252 1 ,232 6,151
(7 1 ) 26,842 5,276 (5,416) (1 ,295)
$ 34,252 ! $ 1 ,1 6 1 $ ?,,6,842 $ 5,276 $ 4 ,1l56
(continued)
88
O THER SPECIAL REVENUE FUNDS
December 31, 2008
BISD VISD
School Sheriff's CDA Juvenile Election
Resource Special Contraband Probation E mployee Admin.
f'urpose� Forfeiture Officer Benefit S�ecial
ASSETS
Cash and cash equivalents $ $ 34,978 $ 70,561 $ $ 3,578 $ 1 3,645
Receivables (net)
Other 325
Due from other governments 5,502 50, 8 1 1
Due from other funds ---.._------- ----.._------
Total assets L2,502 $ 34,978 $ 70,561 $ 50,81 1 $ 3,578 $ 1 �,970

BALANCE
Liabilities
ACGOunts payable $ 38 $ -
$ 1 92 $ 1 ,763 $ 329 $ 468
Accrued expenditures 1 ,475 5,027
Due to other funds 3,989 44,D2! 42
Total liabilities 5,502 1 92 ..

50,81 1 329
Fund balance
Unreserved, undesignated 34,978 70,369 3,249 1 3,460

balance $ 5,502 $ 34,978 $ 70,561 $ 50,81 1 $ 3,578 $ 1 3,970
89
Help Tax
America Assessor-
Vote Act Elections Collector Historical Law Health WIC
Grant Chapter 1 9 Special Commission ---......_..
Department Program LEGSE Total
$ $ $ 86,706 $ 1 2,969 $ 1 6,216 $ 350 $ $ 1 5,827 $ 928,263
70 5,506 1 2,91 3
1 ,4 1 8 2 1 1 ,036 1 38,856 1 .253,277
----...................._------- -_.....-
303
$ $ 1 ,41 8 $ 86,706 $ 1 2 ,969 $ 1 6,286 $ 21 6,892 $ 1 38,856 $ 1 5,827 $2,1 94,756
$ $ 59 $ - $ $ 2,108 $ 67,222 $ 2,238 $ $ 99,533

66,71 3 1 8,654 1 33,471
1 , 361 84,598 1 05,326
__
1 ,tI:?Q 2,1 08 2 1 8,533 1 26,218 1 ,1 79,940
_
_
2,)
-,("" 86,706 78 (1 ,641 ) 1 2,638 1 5,827 1 ,014,816
$ - $ 1 .4 1 8 $ 86.706 $ 1 6,286 $ 21 6,892 $ 1 38,856 $ 1 5,827 $2,1 94J56
(concluded)
90
COMBINING S TA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
J u stice District
Court Clerk Appellate
Emergency Records Courthouse Building Records Judicial
Mgmt. �gmt. Security Security Mgmt. ----
System .....
REVENUES
Fees of office and user fees $ $ 86,209 $ 51 ,291 $ 7,023 $ 5,506 $ 5 , 1 29
Intergovernmental 58,038
Fines and forfeitures
Investment income
Interest 2,421 900 408 1 35
Contributions
Miscellaneous -�--
Total revenues 58,038 88,630 52,191 7,431 5,641 5,1 29
EXPENDITURES
Current
General government 1 2 1 ,098 23,387 4,740 5,313
Public safety 1 05,709
Highways and streets
Culture and recreation
Public health
Total expenditures 1 05,709 1 2 1 ,098 23,387 4,740 5,313

over expenditures �4I,671 ) (32,468) 28,804 7,431 901 (184)
OTHER FINANCING SOURCES

(USES)
Transfers in 50,000
T ranglers out ----..._-
(47,500)
Total other financing sources
(uses) 50,000 (47,500 )
Change in fund balance 2,329 (32,468) ( 1 8,696) 7,431 901 (184)
Fund balance, January 1 1 1 7,269 48,868 1 5,211? 4,71 2 -��-�

30
Fund balance, December 31 $ ...

2,329 $ 84,801 $ 30,1 72_ $ 22,647 $ 5,613 $ (1 §4)
91
FEMA FEMA FEMA
Hazard Hazard Hazard Drug Federal Juvenile
Mitigation Mitigation Mitigation Juvenile Courts Foster Care Delinquency Justice
3294 EM TX 1 62X DR TX Probation Program Grant Prevention Technology
$ -
$ $ $ -
$ 1 0, 532 $ $ 17 $ 29,603
380,1 1 0 44,190 294,366 682,320 1 1 3,586
2,771 1 05 5,0 1 3 2 885
380, 1 1 0 __ 44, 1 90 1 0,637 1 1 8,599 19 30,488
389,884 1 8,736 678,058 590 325,405 33,769
238,858
389,884 1 8, 736 238,858 590 325,405 33,769
(9,774 ) 25,454 55,508 (206,806) 19 (3,281 )
52,274
(7,630)
52,274 (7,630)
42,500 25,454 47,878 1 1 ,396 1 0,047 (206,806) 19 (3,281 )
1 ,348 1 26,4 1 3 96 42,586
$ 42,500 $ 26,802 $ 41,878 .$ 1 37,809 $ :l\j,}()�
(continued)
92
COU NTY O F VICTORIA, TEXAS
NONMAJOR GOVERNMENTAL FUNDS · SPECIAL REVENUE FUNDS
For Ihe year ended December 31, 2008
CDA Sheriff
Family CDA Victims Victims 4-H
Protection Processing Assistance Assistance Texas Vine Activity
Fee Fee
_..__..._.._........-
Grant Center
REVENUES
Fees of office and user fees $ 5,819 $ 1 33,080 $ $ $ $
Intergovernmental 33,519 48,082 35,850
Fines and forfeitures
Investment income
Interest 2, 574 667
Contributions 1 ,285
Miscellaneous
Tota' revenues _ _ _ _ _ 5,81_!!. 1 39,91 0 35,850 1 ,952
EXPENDITURES
Current
General government 1 35,764 49,533 35,850
Public safety 47, 1 96
Public health
Total expenditures 1 35,764 49,533

over expenditures 5,819 4,146 (1 6,014) 886 _ 1�,5}§)
__ _

(USES)
Transfers in 1 6,01 4
Transfers out (16,014)
(uses) (16,014) 1 6,014
Change in fund balance 5,81 9 (1 1 ,868) 886 (4 , 236)
Fund balance, January 1 20,250 1 1 0,81 3 1 1 ,224 -_..... I?, 096
Fund balance, December 31 $ 26,069 $ 98,945 $ -

$ 1 2, 1 1 0
93
CommunHy
Operation TXDOT Project Byrne Emergency
Border Click It! Safe SCAAP JAG HMEP TCDP Response
Ticket Neighborhood Award Program Grant
$ $ $ -
$ $ $ - $ - $
94,790 4,608 9,447 26,777 30,200 429,296 1 3,242
1 97
94,790 4,608 9,447 26,974 30,200
434, 7 1 2
94,790 4,608 9,51 8 1 6,336 2,330 30,200 24,537
94,790 4,6()8 9,51 8 1 6, 336
(71 ) 1 0,638 (2,330) ( 1 1 ,295)
(71 ) 10,638 (2,330) (5,416) (1 1 ,295)
1 6,204 1 0,000
$ $ $� ��....
�......{7�
"", 1) $ 26,842 $ $ ��
(5,416) � (1;.:;,2;;9c;;.;
;;; 5)
(continued)
94
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BISO VISO
School Sheriff's COA Juvenile Election
Resource Special Contraband Probation Employee Admin.
Officer Purpose Forfeiture Officer Benefit Special
REVENUES
Fees of office and user fees $ $ $ $ $ $ 96,303
Intergovernmental 38,274 1 68,688
Fines and forfeitures 28,054
Investment income
I nlerest 800 1 ,500 93 30
Contributions 6,480
Miscellaneous 1 ,960
Total revenues 38,274 800 29,554 1 68,688 8,533 96,333
EXPENDITURES
Current
General government 1 7,730 10,032 87,397
Public safety 38,274 3,480 1 68,688
Public health
Total expenditures 38,274 3,480 1 7,730 1 68,688 10,032 87,397

over expenditures (2,680) 1 1 ,824 (1 ,499) 8,936

(USES)
Transfers in
Transfers out
(uses)
Change in fund balance (2,680) 1 1 ,824 (1 ,499) 8,936
Fund balance, January 1 37,658 58,545 4,748 4,524
Fund balance, December 31 $ $ 34,978 $ 70,369 $ - $ 3,249 $ 1 3,460
95
Help Tax
America Assessor-
Vote Act Elections Collector Historical Law Health WIC
Grant Chapter 1 9 Special Commission Library Department Program LEOSE Total
$ $ 1 3, 1 52 $ $ $ 60,51 1 $ 630,472 $ $ $ 1 , 1 34,647

2,858 1 , 1 59 , 1 90 755,761 1 4,856 4,438,048
28,054
6,201 335 549 25,536

7,765
954 1 ,821 4,363 1 7, 7 1 7
2,858 1 3, 1 52 7, 1 55 2,156 61 ,060 1 ,794,025 755,761 1 4,856 5,651 ,81 7
2,858 1 3, 1 54 39,093 2,427 , 1 03

1 3, 7 1 3 559,379
238,858
6,461 1 2,649
3,423,055 755,263 4,1 78,31 8
2,858 1 3, 1 54 6,461 39,093 3,423,055 755,263 1 3,71 3 7,416,307
(2) 7 , 1 55 (4,305) 21 ,967 (1 ,629,030) 498 1 , 1 43 ( 1 , 764,490)
4,500 1 ,575,940 1 ,698,728

(30,000) (101 , 1 44)
4,500 (30,000) 1 ,575,940 1 ,597,584
(2) 7, 1 55 1 95 (8,033) (53,090) 498 1 ,143 (1 66,906)
79,551 1 2,774 22,21 1 51 ,449 1 2, 1 40 1 4,684 1 , 1 8 1 ,722
$ $ (2) $ 86,706 $ 1 2,969 $ 1 4, 1 78 $ (1 ,64 1 ) $ 1 2,638 $ 1 5,827 $ 1 ,014,816
(concluded)
96
NONMAJOR DEBT SERVICE FUNDS
Debt Service Funds are used to accoun t for the accumulation of resou rc es for and the payment of general
long-term debt principal, interest and related costs
,
97
NONMAJOR G O VERNMENTAL FUNDS - DEBT SERVICE FUNDS
December 31, 2008
Courthouse Bridge
Road Jail Restoration Street
Bonds Bonds Bonds Annex
Sinking Sinking Sinking Sinkinl;L Total
ASSETS
Cash and cash equivalents $ 1 51 ,140 $ 1 98,408 $ 1 42,1 1 6 $ 223,1 68 $ 714,832
Receivables (net)
Ad valorem 262,719 353,958 242,866 ........ 366,754 �6 ,?97
Total assets $ 41 3,859 $ 552,366 $ 384,982 $ 589,922 $ 1 , 94 1 , 1 29
LIABILITIES AND FUND BALANCE

Liabilities
Deferred revenue $ 372A19 $ 497,300 $ .. 345,249 $ 52 1,796 $ 1 ,736,764
Total liabilities 497,300 _::::..34",,5., 24Q 521 , 796 1 ,736,764
Fund balance
Unreserved, un designated ..... 4 1 ,440 39,733 68,126 204,365
Total liabilities and fund balance $ <113,859 $ 552,�66 $ 384,982 $ 5139,922 $ 1 ,941 , 1 29
98
NONMAJOR GOVERNMENTAL FUNDS - DEBT SERVICE FUNDS
Courthouse Bridge
Road Jail Restoration Street
Bonds Bonds Bonds Annex
Sinking _Sinkin9 Sinkin9 Sinkin9 Total
REVENUES
Taxes $ 377,982 $ 482,787 $ 346,145 $ 523,764 $ 1 ,730,678
Investment income
Interest 1 ,995 2,259 1 ,937 9,532
Total revenues �9,977 _ 485,04£3 __ 348,082 527, 1Q� 1 ,740,210
EXPENDITURES
Debt service
Principal retirement 31 0,000 440,000 260,000 350,000 1 , 360,000
tnterest and fiscal charges 53,791 1 9,473 71 ,408 148,7 1 8 293,390
Total expenditures 363,791 �59,473 331 ,�08 498,718 1 ,653,390
Change in fund balance __113,186 25,57� 1 6, 674 28,387 .. 86,820
Fund balance, January 1 25,254 29,493 .......... 23,059 39,739 1 1 7,545
Fund balance, December 31 $ 41 ,440 $ 55,066 $ 39,733 $ 68,126 $ 204,365
99
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND A C TUAL
Actual Amounts Variance

Original Final Budgetary Positive
Budget ---------
Budget Basis �"9,,tiv"L
REVENUES
Taxes
Ad valorem
Current $ 1 3, 275,264 $ 1 3 , 275,264 $ 1 3,429,375 $ 1 54, 1 1 1
Delinquent 300,000 300,000 331 ,702 31 ,702
Penalty and interest 1 30,000 1 30,000 1 58,753 28,753
Sales and use � 50,000 _7.,,10,000 7,793,945 283,945
Total taxes 20,855,264 2 1 , 2 1 5,264 2 1 ,71 3,775 1
Fees of office and user fees
Sheriffs department 500,000 500,000 391 ,809 (108,191)
Prisoner maintenance 5,000 5,000 4,047 (953)
County treasurer 1 3,400 1 3,400 5,042 (8,358)
Election administrator 3,000 3,000 1 ,716 ( 1 ,284)
County clerk 525,000 525,000 423,568 (101 ,432)
Probate personnel education fees 1 ,800 1 ,800 1 ,370 (430)
Guardianship fee 5,000 5,675 675
County courts at law 4,000 4,000 4,562 562
Tax assessor-collector 450,000 450,000 461 ,7 1 8 1 1 ,7 1 8
Criminal district attorney 25,000 25,000 1 9,397 (5,603)
District clerk 300,000 300,000 1 72 , 1 64 ( 1 27,836)
Justices of the peace 1 2,500 1 2,500 32,671 20,1 71
Deferred adjudication 7,000 7,000 45,938 38,938
Constables __ . 6,850 6,850 52,923 46,073
Total fees of office and user fees 1 ,853,550 1 ,858,550 1 ,622,600 (235,950)
Intergovernmental
Payment in lieu of taxes 1 00 9,100 9,409 309
Alcohol beverage tax 1 50,000 1 50,000 1 45,207 (4,793)
County courts at law 1 50,000 1 50,000 1 34,232 (1 5,768)
Bingo gross receipts tax 75,000 75,000 65,576 (9,424)
Tobacco settlement 250,000 339,893 339,894 1
Indigent defense grant 45,000 45,000 85,209 40,209
Title IV-E legal service 50,000 50,000 37,969 ( 1 2 ,031 )
Jury fee reimbursementfSB1 704 40,000 40,000 71 , 502 31,502
Juvenile detention contracts 1 ,300,000 1 ,300,000 1 ,31 7,731 1 7,731
State juvenile detention funds 65,000 1 24,000 254,092 1 30,092
Jail inmate bedspace 2,000,000 2 , 000,000 1 ,581 ,705 (41 8,295)
Jail inmate contract medical 2 1 ,000 2 1 ,000 1 ,999 (1 9,001)
Jail inmate contract other 40,000 40,000 81 , 1 50 4 1 , 1 50
Jail inmate extradition 20,000 20,000 2 1 , 508 1 ,508
General inmate medical 25,000 25,000 26,837 1 ,837
Project lifesaver 1 , 331 1 ,331
Vest reimbursement 4,960 5,305 345
TSA security reimbursement 9,816 9,8 1 6
Total intergovernmental 4,231 , 1 00 4, 393,953 4 , 1 90,472 (203,481 )
(continued)
1 00
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHA NGES IN
FUND BALANCE · BUDGET (NON-GAAP BUDGETARY BAS/S) AND A C TUAL

_ El��g� B ud1let Basis (Negative)
REVENUES (continued)
Fines and forleitures
District court fines $ 500,000 $500,000 $ 31 6,474 $ (1 83,526)
County court at law fines 500,000 500,000 485,532 ( 1 4,468)
Justice of the peace fines 765,000 765,000 602,325 (1 62,675)
Forleitures 40,100 40,100 36,071 (4,029)
Total fines and forfeitures 1 ,805,100 �05, 1 00 1 ,440,402 (364,698)
I nterest 1 ,000,000 1 ,000,000 437,647
Licenses and permits
Marriage licenses 1 1 ,000 1 1 ,000 1 3,270 2,270
Beer and whiskey licenses 27,000 27,000 25,554 (1
Miscellaneous --...��....�
1 00 1 00 250
Total licenses and permits 38,100 38,100 39,074
Contributions 400 _ 1�,200 1 7,800
Miscellaneous
Records management preservation 40,000 40,000 33,869 (6, 1 3 1 )
Criminal justice planning commission 300 300 13 (287)
Crime stopper fee 5 5 (5)
LEOSEF collection 10 10 4 (6)
Victims of crime collection 1 ,500 1 ,500 369 (1,131)
JCPTF commission 1 00 1 00 19 (81 )
Juvenile probation diversion collections 200 200 1 00 ( 1 00)
Operators/chauffeurs license collection 25 25 15 ( 1 0)
General revenue/misdemeanor cost 25 25 3 (22)
Comprehensive rehabilitation collection 25 25 3 (22)
Criminal assessment collection 25 25 (25)
Abused children fees 25 25 (25)
Legal service for indigents fees 600 600 518 (82)
Defensive driving course fee 20,000 20,000 1 1 ,985 (8,015)
Visual record by electronic device 500 500 15 (485)
Court reporter fees 30,000 30,000 26,419 (3,581 )
Arrest warrant fees 45,000 45,000 50,082 5,082
Other fees 244,750 244,750 1 63,924 (80,826)
Personal recognizant fees 7,000 7,000 7,1 57 1 57
CJAD contract services 6,000 6,000 6,264 264
Rents and royalties 33,31 2 3 3,312 39,009 5,697
Telephone commissions 1 80,000 1 80,000 1 75,744 (4,256)
Election machines rental 1 0,000 1 0,000 22,625 1 2,625
Reimbursements 39,660 88,868 1 1 6,046 27, 1 78
Refunds 1 00 1 00 ( 1 00)
Restitutions 1 ,000 1 ,000 917 (83)
Miscellaneous 50,500 50,500 75,1 01 24,601
Total miscellaneous 71 0,662 730,201 (29,669)
Total revenues 30,494, 1 76 ....
31 ,089,037 30,191,971 (897,066)
(continued)
1 01
GENERAL FUND
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL

Budget Budget Basis (Negative)
EXPENDITURES
Current
General government
County judge
Salaries $ 1 60,683 $ 1 60,683 $ 1 53,327 $ 7,356
Fringe benefits 38,640 38,640 36,515 2,1 25
Operating expenditures 8, 1 82 8,1 82 6,1 22 2,060
Total county judge 207,505 207,505 1 95,964 1 1 ,541
Commissioners' court
Salaries 70,051 70,051 68,505 1 ,546
Fringe benefits 21 ,000 21 ,000 1 9,637 1 , 363
Operating expenditures 1 3,000 1 2,600 7,896 4,704
Other services and charges 23,500 23,900 1 8,679 5,221
Total commissioners' court 1 27,551 1 2 7,551 1 1 4,71 7 1 2,834
Records management
Salaries 73,909 85,409 85,955 (546)
Fringe benefits 1 3,348 1 4, 1 53 1 4, 1 97 (44)
Operating expenditures 1 ,000 20,650 20,218 432
Capital outlay 45,945 45,933 12
Total records management 88,257 1 66,1 57 1 66,303 ( 1 46)
County clerk
Salaries 475,355 475,355 449,775 25,580
Fringe benefits 1 42,560 1 42,560 1 35, 1 1 5 7,445
Operating expenditures 37,795 36,896 30,970 5,926
Other services and charges 1 ,200
Capital outlay 2,099 2,099
Total county clerk 656,91 0 656,910 61 7,959 38,951
Veterans' service officer
Salaries 43,653 43,653 43,652 1
Fringe benefits 8,361 8,361 8,338 23
Operating expenditures 4,300 4,300 4,088 212
Capital outlay 1 ,946 1 ,946
Total veterans' service officer 56,314 58,260 58,024 236
Heritage director
Salaries 37,144 37,224 37,109 115
Fringe benefits 1 1 ,651 1 1 ,651 1 1 ,331 320
Operating expenditures 7,700 7,700 461 7,239
Total heritage director 56,495 56,575 48,901 7,674
Non-departmental
Operating expenditures 1 ,381 , 1 69 1 ,253,891 1 , 1 40,594 1 1 3,297
Other services and charges 863,61 1 2,1 1 0,029 1 ,899,980 210,049
Capital outlay 350,000 264,950 232,149 32,801
Total non-departmental 2,594,780 3,628,870 3,272,723 356, 147
(continued)
1 02
GENERAL FUND

Budget Basis (Negative)
EXPENDITURES (continued)
Current (continued)
General government (continued)
County court at law # 1
Salaries $ 182,803 $ 1 82,803 $ 1 82,802 $ 1
Fringe benefits 44,080 44,080 37,057 7,023
Operating expenditures 3,755 3,755 2,731 1 , 024
Other services and charges 39,000 44,012 40,662 3,350
Total county court at law # 1 274,650 263,252 1 1 ,398
County court at law # 2
Salaries 1 82,723 1 82,723 1 82,271 452
Fringe benefits 42,577 42,577 39,966 2,61 1
Operating expenditures 3,450 3,450 3,1 02 348
Other services and charges 29,000 59,000 58,722 278
""...........---�
Total county court at law # 2 257,750 287,750 284,061 ;3,689

District court
Salaries 281 ,566 281 , 566 273,982 7,584
Fringe benefits 1 1 0,738 1 1 0,738 1 05,552 5,1 86
Operating expenditures 1 3,750 28,91 8 25,879 3,039
Other services and charges 537,100 562,300 550,823 1 1 ,477
Capital outlay 6,742 6,742
Total district court 943,1 54 __ 990,264 962,978
District clerk
Salaries 452,281 462,741 460,915 1 , 826
Fringe benefits 1 29,8 1 4 1 32,215 1 32,209 6
Operating expenditures 24,087 3j ,Q2i
Total district clerk 606, 1 82 629,383 627,148
Justice of the peace # 1
Salaries 72,947 72,947 72,946 1
Fringe benefits 21 ,555 21 ,555 2 1 ,363 192
Operating expenditures 6,740 7,440 6,434 1 ,006
Other services and charges 1 2,700 1 1 ,933 367
Total justice of the peace # 1 1 1 3,942 1 1 1 2,676 1
Salaries 71 ,992 74,646 74,645 1
Fringe benefits 1 7,580 20,906 20,905 1
Operating expenditures 3,375 3,875 2,808 1 ,067
Other services and charges 1 4 ,200 1 3,700 1 3,438
Total justice of the peace # 2 1 07,147 1 1 1 ,796
Salaries 204,026 204,026 202,743 1 ,283
Fringe benefits 58,776 58,776 57,649 1 ,1 27
Operating expenditures 5,1 50 5,1 50 4,238 912
Other services and charges 2 , 1 00 2,100 334
Total justice of the peace # 3 270,052 ...
264,964 5,088
(continued)
1 03
GENERAL FUND

[311�9(lt� [3�d9€lt Basis (Negative)
Current (continued)
Salaries $ 1 1 4,074 $ 1 1 4,074 $ 1 1 1 ,747 $ 2,327
Fringe benefits 26,382 30, 1 32 29, 1 28 1 ,004
Operating expenditures 6,010 7,010 5,9 1 5 1 ,095
Other services and charges 1 4, 1 00 35,100 34, 374 726
Capital outlay 7,279 1
Total justice of the peace # 4 1 flll,�� 5, 1 53
Criminal district attorney
Salaries 955,748 957,041 943,973 1 3 ,068
Fringe benefits 233,928 249,835 241 ,785 8,050
Operating expenditures 10,000 1 9,000 1 8 ,679 321
Capital outlay 21 2 1 ,983
Total criminal district attorney 1 , 1 99,67(3 1 1 2 1 ,439
Elrx:tion administrator
Salaries 1 54,731 1 73,406 1 7 3,640 (234)
Fringe benefits 37,267 37,267 36,428 839
Operating expenditures 57,680 61 ,326 59,236 2,090
Other services and charges 1 4, 300 1 6,592 1 6,015 577
Capital outlay 1 _..._._-_._.._-
Total election administrator 263,978 301 ,070

County auditor
Salaries 31 8,813 318,8 1 3 308,423 1 0 ,390
Fringe benefits 87,599 87,599 83,7 1 8 3,881
Operating expenditures 1 8,335 1 8,335 1 2,5:l�
Total county auditor 424,747 424,747 1 6,809
County treasurer
Salaries 202,995 202,995 201 ,694 1 ,301
Fringe benefits 58,580 58,580 57,678 902
Operating expenditures 29,370 37,925 999
Total county treasurer 290,945 299,500 3,202
Tax assessor-collector
Salaries 493,714 493,714 461 , 803 31 ,91 1
Fringe benefits 1 4 1 ,540 1 41 ,540 1 36,904 4,636
Operating expenditures 1 8,550 1 8,550
Total tax assessor-coliector 653,804 653,804 40,793
Administrative services
Salaries 1 9 1 ,787 198,287 1 95,797 2,490
Fringe benefits 52,066 53,535 53,538 (3)
Operating expenditures 1 5,348 1 5,348 2,768
Total administratiVe services 259,201 267,1 70
(continued)
1 04
GENERAL FUND
Actuat Amounts Variance

Budget Budf.let Basis (Negative)
Current (continued)
Information technology
Salaries $ 292,202 $ 299,202 $ 298,386 $ 816
Fringe benefits 83,990 83,990 83,273 717
Operating expenditures 262,010 220,310 21 6,660 3,650
Other services and charges 96,000 1 1 3,000 1 09,103 3,897
Capital outlay 35,000 89,464 89,365 99
Debt service 273,909 273,909 273,909
Total information technology 1 ,043, 1 1 1 1 ,079,875 1 ,070,696 9 , 1 79
Building maintenance
Salaries 243,120 243,120 242,325 795
Fringe benefits 69,755 69,755 68,028 1 ,727
Operating expenditures 864,800 1 ,027,427 1 ,020,675 6,752
Total building maintenance 1 , 1 77,675 1 ,340,302 1 ,331 ,028 9,274
Adult probation department
Operating expenditures 9,040 9,340 8,684 656
Total adult probation department 9,040 9,340 8,684 656
Juvenile detention facility
Salaries 1 ,649,351 1 , 757,351 1 ,748,280 9,071
Fringe benefits 450,138 450,138 421,481 28,657
Operating expenditures 350,647 474,071 466,958 7,1 1 3
Capital outlay 93,052 93,020 32
Debt service 499,517 499,5 1 7 499,5 1 7
Total juvenile detention facility 3,027,648 3,327,424 3,281 ,890 45,534
Juvenile board
Salaries 31 ,860 3 1 ,860 31 ,859 1
Fringe benefits 6,103 6,103 5,252 851
Other services and charges 69,352 70,352 63,979 6,373
Total juvenile board 107,315 1 08,31 5 101 ,090 7,225
Total general government 14,973,383 1 6,834,298 1 6 , 1 86,677 647,621
Public safety
Fire marshal
Salaries 91 ,357 91 ,357 55,291 36,066
Fringe benefits 26,568 26,568 1 5,488 1 1 ,080
Operating expenditures 51 ,950 54,950 48,0 1 5 6,935
Other services and charges 67,500 66,250 54,457 1 1 ,793
Capital outlay 1 3 ,000 1 7,500 1 7,419 81
Total fire marshal 250,375 256,625 1 90,670 65,955
(continued)
105
GENERAL FUND

Original Final Budgelary Pos itive
Budset Budget Basis _JNElgalive) -
Current (continued)
Public safety (continued)
Sheriff
Salaries $ 7,039,063 $ 7,047,627 $ 7,028,339 $ 1 9,288
Fringe benefits 1 ,9 1 9,400 1 ,9 1 9,400 1 ,896,976 22,424
Operating expenditures 1 , 729,985 2,004,5 1 7 1 ,944,530 59,987
Capital outlay 1 0,000 88,970 88,350 620
Debt service 1 21 1 2 1 ,676 121 18
Total sheriff 1 0, 827,624 1 1 , 1 87,390 11 1 02,555
Constable # 1
Salaries 20,344 20,344 20,344
Fringe benefits 8,434 8,434 7,931 503
Operating expenditures 600 1 50
Total constable # 1 29,378 29,378 653
Constable # 2
Salaries 28,882 28,882 28,882
Fringe benefits 1 0,068 1 0,068 9,877 1 91
Operating expenditures 8,600 8,600 313
Total constable # 2 47,550 4!L�50 504
Constable # 3
Salaries 28,352 28,352 28,352
Fringe benefits 9,222 9,222 9, 1 76 46
Operating expenditures 8,744 8,744 8,584 1 60
Capital outlay 7,014
Total constable # 3 46,318 53,332 206
Constable # 4
Salaries 22,479 22,479 22,479
Fringe benefits 8,842 8,842 8,605 237
Operating expenditures 600 600 550 50
Capital outlay 1 ,7:!!) 1
Total constable # 4 3 1 ,921 33,666 33,379 287
Non-departmental
Other services and charges
City/County interlocal agreement 1 ,71 6,000 1 ,999, 1 6 1 1 ,998,283 878
Total non-departmental 1 ,7 16,000 1 ,999,1�1 1 ,998,283 878
Total publiC safety 1 2,949, 1 66 1 3,607,1Q? 1 3,436,064 1 71 ,038
(contin u ed )
1 06
GENERAL FUND
FUND BALANCE · BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL

Budget Budget Basis
Current (continued)
Culture and recreation (continued)
Parks and recreation
Salaries $ 59,748 $ 63,773 $ 63,771 $ 2
Fringe benefits 22,8 1 9 23,591 20,066 3,525
Operating expenditures 1 9,200 20,200 1 5,736 4,464
Other services and charges 6,000
Capital outlay 1 ,000
Total parks and recreation 1 08,767 1 07,56� ..................... 7,991
Extension service
Salaries 192,327 1 92,327 1 89 , 1 06 3,221
Fringe benefits 48,953 48,953 36,707 1 2,246
Operating expenditures 21 ,727 23,327 2 1 ,772 1 ,555
Other services and charges 3 1 ,600 34,000 33, 1 23 877
Capital outlay ?Q,()03
Total extension service 294,607 318,610 1 7,899
Total culture and recreation 403,374 426, 1 74 25,890
Public health
Emergency mgmt. / Flood plain
Salaries 1 25,646 1 34,91 6 82,348 52,568
Fringe benefits 32, 121 33,976 1 9,909 1 4,067
Operating expenditures 1 4 , 1 80 20,200 1 3,001 7 , 1 99
Other services and charges 11 24,830
Total flood plain management 1 1 1 9,778 98,664
Tolal public health 1 82,947 1 1 9,778 98,664
Capital outlay 734,192 1 86,808
Total expenditures 28,508,870 32,007,016 30,876,995 1 , 1 30,021
Excess (deficiency) of revenues over expenditures 1 (685,024) 232,955

Sale of assets 20,000 20,000 46,608 26,608
Transfers in 1 57,500 1 57,500 1 57,500
Transfers out "_..
(2,1 62,806) -1:3,045,431 ) (2,905,573) 1 39,858
Total other financing sources (uses) _._t?&�7 ,931 ) (2,701 ,465) 1 66,466
Change in fund balance (3,785,910) (3,386,489) 399,421
Fund balance, January 1 1 0,342,884 J (), 342,884 1 0,342,884
Fund balance, December 31 $ 1 0, 342,884 �... 6,556,974 $ 6,956,395 $ 399,421
(concluded)
1 07
ROAD AND BRIDGE PRECINCT NO. 1
BUDGET AND ACTUAL
Actual Amounts Budget to GMP

Final Budgetary Differences Actual Amounts
Budget Basis Over (Under) GMP Basls
REVENUES
Taxes
Current taxes $ 643, 357 $ 641 ,459 $ $ 641 ,459
Delinquent taxes 1 2,000 14,405 (181 ) 14 ,586
Penalty and interest 6 , 1 00 7, 1 35 (77) 7,212
Intergovernmental
Vehicle license fees 1 85,000 2 1 1 ,888 21 1 ,888
Additional license fees 2 1 0,000 21 1 ,4 1 3 288 21 1 ,1 25
Permits 1 2,000 21 ,568 2 1 ,568
Investment income
Interest 1 8,000 20,524 20,524
Miscellaneous 200 388 388
Total revenues 1 ,086,657 1 , 1 28,780 30 1 , 1 28,750
EXPENDITURES
Current
Salaries 453,878 441 , 242 (3,791 ) 445,033
Fringe benefits 144,012 1 40,568 (1 ,098) 141 ,666
Opera ling expenditures 460,220 442,896 1 5,883 427,01 3
Other services and charges 2,150 314 314
Capital outlay 59,694 53,677 53,677
Debt service 59,489 59,489
Total expenditures 1 1 ,1 38 , 1 86 1 0,994 1 ,1 27,1 92

over expenditures (92,79<3) (9,406) (10,964) 1 ,558

Transfers in 36,190 36,190 36,190
Transfers out (20,000) (20,000) (20,000)
Total other financing sources (uses) 1 1 6, 1 90 1 6, 1 90
Change in fund balance (76,606) 6,784 (10,964) 1 7,748
Fund balance, January 1 582,263 582,263 73,36:> 508,900
Fund balance, December 31 $ 505,657 $ 589,047 $ ..

62,399 $ 526,648
Explanation of differences;
1 08
NONMAJOR GO VERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
BUDGET AND ACTUAL
Actual Amounts Budget to GAAP

Budget Over (Unde� GAAP
-- ... Basis
�...
REVENUES
Taxes
Current taxes $ 526,383 $ 524,830 $ $ 524,B30
Delinquent taxes 1 0,000 1 2,056 ( 1 84 ) 1 2.240
Penalty and interest 4,900 5,922 (77) 5,999
I ntergovernmentat
Vehicle license fees 185,000 21 1 ,888 21 1 ,888
Additional license fees 1 95,000 1 91 ,041 260 1 90,781
Permits 1 2,000 2 1 ,568 2 1 ,568
Investment income
Interest 1 5,000 15,991 1 5,991
Miscellaneous 200 1 2,907 ...._ 12.,907
Total revenues �48,483 996,203 .._9.'!6,2O<t
EXPENDITURES
Current
Highways and slreets
Salaries 381 ,329 355,1 1 2 ( 1 ,908) 357,020
Fringe benefits 1 22,735 1 1 2,847 (424) 1 1 3,271
Operating expenditures 552,481 420,762 39,432 381 , 330
Other services and charges 77,300 27,251 850 26,401
Capital outlay 200,000 1 93,295 1 93, 295
Total expenditures 1 , 333,845 1 ,1 09,267 37,950 1 ,071 ,31 7

over expenditures (385,362) (1 1 3,064) (37,9ti.1) (75, 1 1 3)

Transfers in 1 50,362 1 50,362 1 1 3,381 36,981
Transfers oul (85,000) (20,000) (20,000)
Total other financing sources (uses) __ 65,362. 1 30,362 ____ 1 1 3,381 1 6,981..
Change in fund balance (320,000) 1 7,298 75,430 (58,1 32)
Fund balance, January 1 465,102 465, 1 02 1 08,21 6 __ �6,886
Fund balance, December 3 1 $ 145, 1 02 $ 482,400 $ 183,646 $ �98,754
Explanation of differences:
The Counly budgets on the cash basis of accounting, Therefore, under the budgetary
1 09
NONMAJOR G OVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
BUDGET AND A CTUAL
For the yeer ended December 31, 2008
Actua l Amounts Budget to GAAP

Budget Basis Over (Under) GAAP Basis
REVENUES
Taxes
Current taxes $ 526,383 $ 524,830 $ $ 524,830
Delinquent taxes 1 0,000 1 2,009 (1 79) 1 2, 1 88
I ntergovernmental
Vehicle license fees 1 85,000 21 1 ,888 2 1 1 ,888
Additional license fees 195,000 1 9 1 ,041 261 1 90,780
Permits 1 2,000 22,628 (1 ) 22,629
Investment income
Interest 30,000 1 9,731 1 9,731
Miscellaneous 1 5,200 2�46Q (701 ) 24, 1 67
Total revenues 978,483 1 ,01 1 ,501 (694) __ 1 ,91 2 , 1 95
EXPENDITURES
Current
H ighways and streets
Salaries 464,31 9 442,398 (3,835) 446,233
Fringe benefits 1 5 1 ,346 1 46,013 (1 ,437) 1 47,450
Operating expenditures 280,624 21 2,427 (8,956) 221 ,383
Other services and charges 5,800 1 , 1 69 1 , 1 69
Capital outlay 1 34,18(1 1 28,935 1 28,935
Debt service 36,647 36,647 36,647
Total expenditures 1 ,072,924 967,589 (1 4,228) 981 ,817

over expenditures (94,44 1 ) 43,912 1 30,378

Capital lease issuance 1 05,324 1 05,324 1 05,324
Transfers in 9,1 1 7 9,1 1 8 9, 1 1 8
Transfers out (20,000) (20,000) (20,000)
Total other finanCing sources (uses) 94,441 94,442 94,442
Change in fund balance 1 38,354 1 3,534 1 24,820
Fund balance, January 1 544,074 544,074 479,850
Fund balance, December 3 1 $ 541,074 $ 682,428 $ 77,]58 $ 604,El7,Q
110
NONMAJOR G OVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
ROAD AND BRIDGE PRECINCT NO, 4
BUDGET AND ACTUAL

Basis Over (LJnd"rL GAAP Basis
REVENUES
Taxes
Current taxes $ 643,357 $ 641 ,459 $ $ 641 ,459
Delinquent taxes 1 2 ,000 1 4,519 ( 1 96) 1 4,71 5
Penalty and interest 6,100 7,1 70 (84) 7,254
Intergovernmental
Vehicle license fees 1 85,000 2 1 1 ,888 21 1 ,888
Additional license fees 2 1 0,000 2 1 1 ,4 1 3 288 21 1 ,125
Permits 1 2,000 22,568 22,568
Investment income
Interest 1 5,000 1 6,314 16,314
Miscellaneous 24,674 200 24,474
Total revenues 1 ,093,657 1 , 1 50,005 -,--�,-..-
208 _�
1 , 1 49,797
EXPENDITURES
Current
Salaries 474, 1 64 449,993 (4,130) 454,1 23
Fringe benefits 1 40,01 0 1 32,574 (1 ,047) 1 33,621
Operating expenditures 568,344 557,264 (60,023) 61 7,287
Other services and charges 3,500 2,208 2,208
Capital outlay 1 6,600 1 6,557 (6,487) 23,044
Debt service 63,754 63,754
Total expenditures 1 , 266,373 1 ,222,350 (71 ,687) 1 , 294,037

over expenditures (172,716) (72,345) (144,2"Q)

Transfers in 1 74,760 1 74,759 1 52,91 3 2 1 ,846
Transfers eut (28,697) (28,697) (28, 697)
Total other financing sources (uses) 1 46,063 1 46,062 (6,851 )
Change in fund balance (26,653) 73,71 7 224,808 ( 1 5 1 ,091 )
Fund balance, January 1 445,804 445,804 67,860 377,944
Fund balance, December 3 1 $ 419, 1 5 1 $ 5 1 9,521 $ 292,668 $ 226,853
The County budgets on the cash basis of accounting, Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when paid,
111
NONMAJOR G O VERNMENTAL FUNDS - DEBT SERVICE FUNDS
ROAD BONDS SINKING FUND
BUDGET AND ACTUAL

REVENUES
Taxes
Current taxes $ 360,552 $ 364,738 $ $ 364,738
Delinquent taxes 1 0,000 8,846 (90 ) 8,936
Investment income
Interest 3,200 1 ,995 1 , 995
Total revenues 378,052 379,842 ...
379,977
EXPENDITURES
Debt service
Principal retirement 31 0,000 31 0,000 3 1 0 ,000
Interest and fiscal charges 53,792 53,791 53,791
Total expenditures 363,792 363,791 363,791
Change in fund balance 1 4,;<60 1 6,051 ( 1 35) 1 6, 1 86
Fund balance, January 1 25,204 25,204 (50) 25,254
Fund balance, December 31 $ 39,464 $ -------------

4 1 ,255 $ (1 85) $ 41 ,440
The County budgets on the cash basis of accounting, Therefore, under the budgetary
112
JAIL BONDS SINKING FUND
BUDGET AND A CTUAL

Budget Basis Over ( Under) GAAP Basis
REVENUES
Taxes
Current taxes $ 460,464 $ 465,812 $ $ 465,81 2
Delinquent taxes 1 3,000 1 1 ,338 (1 21 ) 1 1 ,459
Investment income
I nterest 2,259 2,259
Total revenues 484,865 485,046
EXPENDITURES
Debt service
Principal retirement
Interest and fiscal charges
Total expenditures
Change in fund balance
Fund balance, January 1
Fund balance, December 31
113
NONMAJOR GOVERNMENTAL FUNDS " DEBT SERVICE FUNDS
COURTHOUSE RESTORATION BONDS SINKING FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE "
BUDGET AND A C TUAL

Budget Over (Under) GAAP Basis
REVENUES
Taxes
Current taxes $ 330,144 $ 333,981 $ $ 333,981
Delinquent taxes 9,000 8, 1 24 (87) 8,2 1 1
Penalty and interest 4,200 3,91 1 (42) 3,953
Investment income
Interest 3,000 1 1 ,937
Total revenues 346,344 347,953 (1 29) 348,082
EXPENDITURES
Debt service
Principal retirement 260,000 260,000 260 ,000
Interest and fiscal charges 7 1 ,408 71 ,408
Total expenditures 331 ,408 --........_--
331,408
Change in fund balance 1 4,936 � 1 6,674
Fund balance, January 1 23,0 1 5 23,O1l>. (44) 23,059
Fund balance, December 31 $ 37,9!j1_ $ 39,560 $ .J1Z2)

""",
$ 39,733
The County budgets on the cash basis of accounting_ Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when paid,
114
BRIDGE STREET ANNEX SINKING FUND
BUDGET AND ACTUAL

REVENUES
Taxes
Current taxes $ 499,560 $ 505,357 $ $ 505,357
Delinquent taxes 1 4,000 1 2,294 (131) 1 2,425
Penalty and interest 6,200 5,9 1 7 (65) 5,982
Investment income
Interest 4,?OO 3,341 -_
.... 3,341
Total revenues 523,960 ......

__
�6,909 (1 96) 527 , 1 05
EXPENDITURES
Debt service
Principal retirement 350,000 350,000 350,000
Interest and fiscal charges 1 48 , 7 1 8 1 48,718 1 48 , 7 1 8
Total expenditures --------

498 , 7 1 8 498,71 8 498, 7 1 8
Change in fund balance 25,242 28,191 (196) 28,387
Fund balance, January 1 39,672 39,672 (67) ........."

...:3flJ.}
Fund balance, December 31 $ 64,914 $ 67,86" $ (2()�) $ 68,1 26
1 15
AGENCY FUNDS
Agency Funds are used to account for the monies received and disbursed by the County in the capacity
of trustee, custodian, or agent for individuals or other entities.
County C lerk-Trusts Fund " Accounts for monies held by the County Clerk in trust for various
minors 01 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 in trust for various
-
m inors of the County of Victoria.
District Clerk-Child Support Fund Records the collection and disbursement of child s upport
-
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.
Jail Inmate Trust Fund Accounts for monies that are held for the benefit of and use by inmates
-
in the County Jail.
Sheriff Special Fund Records out-ai-county cash bonds and various fines and fees collected
-
by the Sheriff's 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 01 ad valorem taxes, various vehicle
-
taxes, and sales taxes by the County Tax Assessor-ColiectoL 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
-
inmates housed in the Victoria County Jail. Such monies consist of fines, court costs, and other
related Items that are in 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 in 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, supplies, and personnel.
116
A GENCY FUNDS
COMBINING STA TEMENT OF CHANGES IN ASSETS AND LIABILITIES
Balance at Batance at
Beginning End
of Year Additions Deletions
..........��
of Year
COUNTY CLERK-TRUSTS
ASSETS
Cash and cash equivalents $ 928, 1 68 $ 661 ,51 3 $ 621 ,925
LIABILITIES
Accounts payabte $ 928,1 68 $ 661 ,!)1 3 $ 621 ,92!'j
CRIMINAL DISTRICT ATIORNEY

ASSETS
Cash and cash equivalents $ 893,756 $ 901 ,943 $ 2,864
LIABILITIES
Accounts payable $ 1,,! ,051 $ 893,756 $ 901 ,��3 $ 2,864
DISTRICT CLERK-TRUSTS
ASSETS
Cash and cash equivalents $ 2,1,93,864 $ 1 , 355,163 $ 1 ,407,642 $ 2,141 ,385
LIABILITIES
Accounts payable $ 2,1 93,864 $ 1 ,355,1(J? $ 1 ,407,642 $ 2,141 ,385
DISTRICT CLERK-CHILD SUPPORT

ASSETS
Cash and cash equivalents $ 1 1 ,702 $ 1 !3,??1 $ 1 1 ,702
LIABILITIES
Accounts payable $ 1 1 ,702 $ 1 6,271 $ 1 1 ,702
CLERK'S SPECIAL
ASSETS
Cash and cash equivalents $ 79 $ 1 5,450 $ 1 5, 1 45 $ 384
LIABILITIES
Accounts payable $ 79 $ 1 5,450 $ 384
JAIL INMATE TRUST FUND

ASSETS
Cash and cash equivalents $ 1 6,329 $ 640,678 $ 6?8,056 $ .... ...
1 8,951
LIABILITIES
Accounts payable $ 1 6, 329 $ 640,678 $ 638,056 $ 1 8,951
SHERIFF SPECIAL
ASSETS
Cash and cash equivalents $ 1 20,379 $ 1 1 2,7!)2 $ 205,531 $ 27,6Q()
LIABILITIES
Accounts payable $ 1 20,379 $ 1 1 2,7(j2 $ 27,600
(continued)
117
AGENCY FUNDS
COMBINING STA TEMENT OF CHANGES IN ASSETS AND LIABILITIES
Balance at Balance at
Beginning End
of Year Additions Deletions Year
STATE FEES
ASSETS
Cash and cash equivalents $ 234,823 $ 1 ,009,9 1 7 $ 1 ,054,090 $ 190,650
Other receivables 14,378 4,269 1
Total assets $ 239,092 :& 1 ,024,295 :& 1 .058,359 $ 205,028
LIABILITIES
Accounts payable $ 239,092 $ 1 ,024,295 $ 1 ,058,359
JUSTICE OF THE PEACE·SPECIAL

ASSETS
Cash and cash equivalents $ 1 07,547 $ 35,995 $ 1 4?,5?B $ 1 ,0 1 4
LIABILITIES
Accounts payable $ 1 07,�47 $ 35,995 $ 1 42,528 $. 1 ,014
TAX ASSESSOR·COLLECTOR
ASSETS
Cash and cash equivalents $ 6,1 83,860$ 1 31 ,929,550 $ 1 33,270,283 $ 4,843,127
Other receivables 36,1)9:3. 59,046 36,903
Total assets $ 6,242,906 $ 1 31 ,966,453 $ 1 33,329,329 $ 4,880,030
LIABILITIES
Accounts payable $ 1 6,751 $ 1 27,1 25,8 1 3 $ 1 27,103, 1 74 39,390
Due 10 other governments 6,226,1 55 4,840,640 6,226,155 4,840,640
Total liabilities $ 6,242,906 $ 1 31 ,96t),453 $ 1 33,329,329 $ 4,880,030
JUVENILE R ESTITUTION
ASSETS
Cash and cash equivalents t 95 $ ..
2,018 $ 2,094
LIABILITIES
Accounts payable $ --------
2,018 $ 2,094
SPECIAL SERVICES
ASSETS
Cash and cash equivalents $ 1 07,044 $ 60,090 $ 1 1 1 ,1 23 $ 56,0 1 1
Seized assets 1 3,220 1 3,325 3,855
Total assets $ 1 20,264, $ 1 24,448 $ 59,866
LIABILITIES
Accounts payable $ 1 20,264 $ t)4,050 $ 1 24,448 $ 59,866
( continued)
118
AGENCY FUNDS
COMBINING S TA TEMENT OF CHANGES IN ASSETS AND LIABILITIES
Balance a t Balance at
Beginning End
of Year Additions Deletions
M UNICIPAL COURT FUND
ASSETS
Cash and cash equivalents $ 1 5,525 $ 253,870 $ 269,395 $
Other receivables 6,075
Total assets $ 253,870 $ 275,470
LIABILITIES
Accounts payable $ 253, f\70 $ 275,470
JUVENILE INMATE TRUST FUND

ASSETS
Cash and cash equivalents 163 $ 5,492 $ 4, !j29
LIABILITIES
Accounts payable $ ... 5,492 $ 4,929 726
CDA STATE JUDICIARY FUND

ASSETS
Due from other governments $ 5,502 $ 4,674
LIABILITIES
Accounts payable $ 5,502 $ 4,674
TOTALS - ALL AGENCY FUNDS

ASSETS
Cash and cash equivalents $ 9,930,629 $ 1 36,992,5 1 5 $ 1 38,660,955 $ 8,262,189
Other receivables 69,390 51 ,281 69,390 51 ,281
Due from other governments 4, 674 5,502 4,674 5,502
Seized assets 1 3,220 3,960 1 3,855
Total assets $ 1 0, 0 1 7,9 1 3 $ 1 37,053,258 $ 1 38,74(1,344 $ 8,322,827
LIABILITIES
Accounts payable $ 3,791,758 $ 1 32,212,61 8 $ 1 32,522, 1 89 $ 3,482, 1 87
Due to other governments 6,226 , 1 55 4,840,640 4,840,640
Total liabilities $ 1 0,017,91 3 $ 1 37,053,258 $ 1 3(1,748,344 $ 8,322,827
(concluded )
119
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 supplementary
information says about the County's overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the
County's financial performance and well-being have changed over time . . . . . . . . . . . . . . . . . .............................. 121
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................... 1 32
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 in the future. . . . . .. . . . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . . .. . . . . ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................. 1 45
Demographic and Economic Information

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 time and with other governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................... 1 50
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
the County provides and the activities it performs . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . ................... 1 52
1 20
COU NTY OF VICTORIA, TEXAS
NET ASSETS BY COMPONENT (1)
Last six fiscal years
2003 2005 2006

net of related debt $ 8,999,425 $ 1 2,559,708 $ 1 4,01 9,641 $ 1 3, 1 24,045
Restricted 1 5 1 , 540 357,245 727,782 436,788
Unrestricted 7,275,730 1 0,092,763 1�,81 1 ,093
Total governmental activities net assets $ 1 6,426,695 $ 24,840 , 1 86 $ 29,371,926
net of related debt $ 5,830,794 $ 7,020,823 $ 8,662,029 $ 9,51 0,1 56
Unrestricted 647,764 ?��,558 (96,824)
Total business-type activities net assets $ 6,478,558 $ 8,64�,,;l,03 $ -------
9,41 3,332
Primary Government
net of related debt $ 14,830,2 1 9 $ 1 9,580,531 $ 22,681,670 $ 22,634,201
Restricted 1 51 ,540 357,245 727,782 436,788
Unrestricted 7,923,494 _�1 0!O!7,03 � 1 5,714,269
Total primary government activities net assets $ 22,905,253 $ 28,996,984 $ 38,78�,258
(1) Accrual basis of accounting
NOTE: The County began to report accrual information when it implemented GASB Statement 34
in fiscal year 2003,
1 21
Fiscal Year
.....-�----
2007 2008
$ 1 4,451 ,437 $ 1 6,490,648

354, 1 00 484,274
1 7,001 ,719 1 2,797,072
$ 31 ,807,256 $ 29,771 ,994
$ 9,88 1 ,8 1 2 $ 9,991,881
___ ", ",2::..:.
56'-'.,9 7 .. 1 55,922
$ 9,938,739 $ 1 0:1 �,803
$ 24,333,249 $ 26,482,529
354,100 484,274
1 7,058,646 1 2 ,952,994
$ 4 1 ,745,995 $ }9,9 19,7 97
1 22
CHANGES IN NET ASSETS (1)
2003 2004 2005 2006

Expenses
General government $ 1 3, 1 73,038 $ 1 3,237,845 $ 1 4, 1 49,1 01 $ 1 4 ,575,456
Public safety 9,285,840 9,:J33,043 9,929,954 1 0,942,21 8
Streets and highways 3,41 4,048 3,255, 1 08 4,232,306 4,244,523
Culture and recreation 1 ,248,392 1 , 1 95,41 9 1 ,293,663 1 , 340,356
Public health 3,547,555 3,584,444 3,653,066 3,860,870
Interest on long-term debt 548,963 2 430,889 390,875
Total expenses 31 ,21 7,836 31 33,688,979 ........

35,354,298
Program revenues
General government 5,342,455 4,933,859 4,589,676 5,295,474
Public safety 3,884,81 7 3,81 8,691 3,401 ,404 3,493,283
Streets and highways 1 ,892,593 1 ,695,264 1 ,750,489 1 ,744,465
Public health 353,498 530,41 8 375,485 444,626
Operating grants and contributions 3,277.4 1 0 3,280,496 3,227, 1 44 3,410,606
Capital grants and contributions 350,313 509,910 695,671
Total program revenues �_1!l3,626 1 4,768,638 1 4,039,869 1 4,396,038
Total governmental activities net program

(expense) revenue (16, 1 1 4,21 0) ( 1 6,283,833) (1 9,649, 1 1 0) (20,958,260)
General revenues and other changes in net

assets
Taxes
Property taxes 1 2,81 7,909 1 4,234,749 1 5, 1 80,030 1 5,637,488
Sales taxes 5,069,316 5,608,969 6,005,658 7,1 53,556
Other taxes 204,454 2 1 5,784 21 6,996
Grants and contributions not restricted to
specific programs 1 0,847 1 1 2,354 1 24, 1 1 8 232, 1 54
Investment earnings 223,724 273,807 585,776 1 ,029,000
Gain (loss) on disposition of capital assets 47,787 81 ,271 235,488 84,566
Miscellaneous 955,849 743,036 463,01 6 365,664
Payments to component units (56,600)
Special item - loss on refunding (27,374)
Transfers (340,01 7) (238,457) (1 30,000) (1 30,000)
Total general revenues and other changes in
net assets 1 8,701 ,441 2 1 ,020,183 22,679,870 24,589,424
Total governmental activities change in net

assets $ 2,587,231 $ 4,736,350 $ 3,030,760 $ 3,631 , 1 64
1 23
Fiscal Year
2007 2008
$ 1 5,640,516 $ 1 9,234,562
1 1 ,518,191 1 4,741 ,608
3,804,550 4,400,1 02
1 , 504,003 465,943
4,1 57, 3 1 7 4,294,718
398,919 304,359
37,023,496 43,441 ,292
5,1 23,021 5, 1 45,235

2,303,680 2,457,863
1 ,771 ,764 1 ,739,696
648,392 668,449
3,868,765 4,782,081
61 ,764
1 3,777,386 1 4,793,324
(23,246,1 1 0) (28,647,968)
1 6,774,61 8 1 7,808,933
7,371 ,870 7,813,529
228,363 2 1 0,783
328,962 365,459
1 ,21 5,536 507,091
4 1 0,21 7 379,770
(648,1 26) (472,859)
25,681 ,440 26,61 2,706
$ 2,435,330 $ (2,035,262)
( continued)
1 24
CHANGES IN NET ASSETS (1)
2003 2004
-...-...-�
2005-............_---
2006
Expenses
Airport $ 2,1 88,872 $ 2,328,426 $ 2,301 ,21 2 $ 2,603,568
Navarro Project 503,268 466,392 481 ,568 51 2,537
Commisary 80,541 1 03,240
Total expenses 2,875,359 3,219,345
Program revenues
Airport 1 ,424,414 1 ,507,081 1 ,559,650 1 ,634,860
Navarro Project 534, 1 30 535,960 535,960 543,91 7
Commisary 280,255 91 ,400 81 ,269 88,1 06
Operating grants and contributions 80,000
Capital grants and contributions 7 1 ,323,954 1 1 1 ,483,028
Total program revenues 2,43 1 ,6 1 6 3,458,395 3,95() ,1�Q 3,829,91 1
Total business-type activities net program

(expense) revenue (500, 7 1 6) 583,036 1 ,093,979 610,566
General revenues and other changes in net

assets
Investment earnings 1 4,947 1 3,983 23,499 28,702
Gain (loss) on disposition of capital assets 1 ,6 1 5 (2,239)
Miscellaneous 22,638 1 ,347
Transfers 340,0 1 7 ?:3� ,457 _� 1 30,000 1 30,000
Total general revenues and other changes in
net assets 7 ?!j3,787 _� 1 5 3,499 1 56,463
Total business-type activities change in net

assets $ (121 ,499) $ 836,823 $ 1 ,247,478 $ 767,029
Total primary government change in net

assets $ 2,465,732 $ 5,573,173 $ 4,278,238 $ 4,398,1 9 3
(1 ) Accrual basis of accounting
NOTE: The County began to report accrual information when it implemented GASB Statement 34
in fiscal year 2003.
1 25
Fiscal Year
2008
$ 2,874,801 $ 3,678,423
576,777 583,104
1 04, 1 28 1 1 7,250
�_ 4,378, 777
1 , 685, 1 34 2,604,426
547,1 57 512,461
90,91 7 94,666
7,494 27,152
1 ,080,71 0 865,997
�'<l1�1 ' <112
��3 ...... 4,1 04,702
( 1 44,294) (274,075)
1 7,659 1 0,280
3,9 1 6
648,126 472,859
669,701 483,139
$ 525,407 $ 209,064
$ 2,960,737 $ (1 ,826,1J!E)
(concluded)
1 26
FUND BALANCES, GOVERNMENTAL FUNDS (1)
Year
2003
--------
-
2004
---...._--
2005 2006
General Fund
Reserved
Advances $ 494,61 0 $ 297,670 $ 362, 2 1 9 $ 362,2 1 9
Adult Probation 31 , 1 08 33,999 24,51 3 26,882
Deferred expenditures 275,9 1 3
Unreserved �1\95,61 ?_ __
5,641 ,834 8,1 39,621 1 1 ,273,877
Tolal general fund $ 3,421 ,330 $ 5,973,503 'f 8,526,353 $ 1 1 , 938,891
All Other Governmental Funds

Unreserved, reported in
Special revenue funds $ 3,449,442 $ 3,246,520 $ 2,460,438 $ 2,303,054
Capital project funds 626,255 678,986 304,760
Debt service funds 1 5 1 ,540 _ � 2 , 1 87 252,772 ._
_ .!�M07
Tolal all other governmental funds $ 4,227,..237 $ 4,1 37,693 $ 3,0 1],970 $ 2,429,861
(1 ) Modified accrual basis of accounting
NOTE: Due to the changes in the County's fund structure iniliated when GAS8 Statement No. 34 was implemented,
the fund balance information is available only beginning in 2003.
1 27
Fiscal Year
2007 2008
--......_--
$ 21 1 ,766 $ 1 20,690
1 5,767 1 7, 1 49
8,794
1 2,267,877 8,230,983
$ 1 2,504,204 $ 8,368,822
$ 2,992,795 $ 2,671,741
1 1 7,545 204,365
$ 3,1 1 0,340 $ 2,876,106
1 28
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS (1)
------....------------��..
Fiscal Year
2003 2004 2005 2006
Revenues
Taxes $ 17,902,538 $ 1 9, 855,785 $ 2 1 ,232,178 $ 23,030,801
Fees of office and user fees 2,207,983 2,595,533 2,472,287 2,820,340
Intergovernmental 10,546,682 10,035,336 9,830,274 9,432,658
Fines and forfeitures 1,619,602 1 ,403,048 1,463,626 1 ,589,568
Investment income 223,670 272,257 585,742 1,028,984
licenses and permits 40,053 36,451 33,524 37,074
Contributions 10,847 36,466 16,085 13,389
Miscellaneous 1 ,470, 100 1,1 67,551 811,325
Total revenues ....4..l ,Q?1 ,475 �5A02,427 _�.6,EiQ1!§48 38,764,139
Expenditures
Current
General government 13,068,813 13,277,443 14,278,131 14,921,068
Public safety 8,614,925 8,963,262 9,283,373 10,682,752
Highways and streets 3,331,107 3,808,439 4,337,766 4,327,674
Culture and recreation 1,190,649 1 ,157,450 1,241 ,058 1 ,298,407
Public health 3,554,074 3,489,244 3,712,723 3,903,367
Capital outlay 2,971,375 542,487 643,352 155,250
Debt service
Principal retirement 975,000 1,160,000 1,225,000 1,265,000
tnterest and fiscal charges 592,782 440,642 417,093 377,923
Bond issue costs 30
Total expenditures 34,382,855 32,838,967 35,1 38,496 36,931,441
Excess (deficiency) of revenues over expenditures (361,380) 2,563,460 1 ,363, 1 52 1 ,832,698

Other financing sources (uses)
Proceeds from refunding issue 3,379,969
Payment to escrow (3,292,343)
Capital lease issuance 182,393 139,923 1 ,493,422
Capital lease refinancing issuance 2,351 ,458
Capital lease refinancing payments (2,272,716)
Sales of assets 108,245 392,955 303,975 103,309
Transfers in 1,630,468 1,967,450 2,09 1 ,364 1,976,294
Transfers out (1,970,485) (2,205,907) (2,325,364) (2,581,294)
Payment from component unit 8,400
Payment to component unit (65,000)
Total other financing sources (uses) (18,353) 373,1 63 69,975 991,731
Change in fund balances �?9,733) $ 2,936,623 $ 1A�3, 127 $ 2,824,429
Debt service as a percentage of

noncapital expenditures 5.30% � 4.88% �
(1 ) Modified accrual basis of accounting
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.
129
Fiscal Year
$ 24,21 8, 1 39 $ 25,882,890
2,867, 161 2,755,103
8,985,485 1 0,490,501
1 ,742,243 1 ,422,624
1 ,21 3,768 507,091
33,967 38,501
1 1 ,51 0 25,565
882,22!l. 843,9 12
39,954,501 41 ,966,187
1 5,770,505 1 9,430,296
1 1 ,406,589 1 4,020,458
4,048,835 4,71 3,221
1 .460,636 41 8,550
4 , 1 52,679 4,294,492
94,590 734 , 1 92
1 ,300,000 1 ,360,000
337,967 293,390
38,57 1 ,80_1 45,264,599
1 ,382,700 (3,298,41 2)
446,095 1 05,324
65, 123 46,331

2,260,283 1 , 960,363
(2,908,409) (3,1 83,222)
-�..
(1 36,908) (1 ,071,204)
$ 1 ,245,792 $ (4,369,61 6)
:1.<l6'¥. �
130
TAX REVENUES BY SOURCE, G OVERNMENTAL FUNDS (1)
Lasl ten fiscal years
Fiscal Penalty
Year Ad Valorem and Interest Sales Total
1 999 $ 1 0,678,829 $ 1 00,554 $ 4,503,101 $ 1 5,282,484
2000 10,946,670 1 1 0,41 3 4,729,825 1 5,786,908
2001 1 1 ,271 ,769 1 1 6,602 4,992,320 1 6,380,691
2002 1 2,230,688 1 1 8,21 1 4,858,298 1 7,207,197
2003 1 2,700,002 1 33,220 4,921,323 1 7,754,545
2004 1 4, 1 03,669 1 43,1 47 5,546,861 1 9,793,677
2005 1 5,099,1 57 1 99,308 6,005,659 21 ,304,1 24
2006 1 5,676,262 200,983 7,1 53,556 23,030,801
2007 1 6,671 ,552 1 74,71 7 7,371 ,870 24,21 8 ,139
2008 1 7,862,422 206,939 7,81 3,529 25,882,890
Change
1 999-2008 67.27% 1 05.80% 73.5 1 % 69.36%
(1 ) 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.
NOTES: Property tax rates have remained stable because of growth in property tax values and the
addition of new construction values.
Sales tax revenues increased mainly due to an increase in the revenue base.
1 31
A SSESSED AND ESTIMATED A C TUAL VAlUE OF TAXABLE PROPERTY
l. ast ten fiscal years
Real Property �_m F'ersonal Property
Commercial and Rural-

Fiscal Tax Residential Industrial Underdeveloped
Year
-_.....
Property Property B usiness Other
1 999 1 998 $ 873,496,360 $ 1 ,708,1 57,760 $ 3 1 7,091 ,980 $ 883,545,390 $ 50,696,790
2000 1 999 1 ,370,867,910 1 ,390,41 1 ,865 328,61 7,480 813,040,260 36,773,080
2001 2000 1 ,462,005,1 10 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 2 1 ,065 3 1 5,270,880 892,710,483 1 63,977,230
2003 2002 1 ,625,755,0 1 0 1 ,307,594,240 31 9,775,450 910,1 36,402 1 0 1 ,305,210
2004 2003 1 ,670, 1 0 1 ,235 1 ,285,202,470 320,599,730 938,958,351 92,863,880
2005 2004 1 , 782,8 1 1 ,934 1 ,237,970,296 335,934,884 1 ,035,824,147 1 32,133,780
2006 2005 1 ,905,321 ,796 1 ,209,303,582 337,207,302 1 , 1 56,1 36,179 1 58,759,680
2007 2006 2,1 40,430,476 1 ,21 6,832,909 749,798,431 1 , 1 70,881 ,088 233,718,540
2008 2007 2,362,393,502 1 ,270,200,090 779,593,229 1 ,31 8,729,750 1 72,605,020
(1) Values on property for maintenance and operation and interest and sinking taxes.
Property exemptions differ from those allowed on road and bridge taxes.
NOTE: Property in the County is reassessed annually. The County assesses property 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 32
Total Estimated Assessed
Less: Total Taxable Direct Actual Value ( 1 ) as a
Tax Exempt Assessed Tax Taxable Percentage of
Real Property Value Value Actual Value
$ 665,71 1 ,393 $ 3,1 67,276,887 $ 0.28 1 0 $ 3,1 67,276,887 1 00.00%
696,442,858 3,243,267,737 0.28 1 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 58,818 0.3201 3,557 , 1 58,8 1 8 1 00.00%
754,830,546 3,552,895,1 20 0.3536 3,552,895,1 20 1 00.00%
812,709,653 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 4,250,272,7 1 9 0.3436 4,250,272,719 1 00.00%
1 , 31 3,651 ,006 4,589,870,585 0.3436 4,589,870,585 1 00.00%
1 33
A SSESSED AND ES TIMA TED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
----�......
------
Real Property �
------..-----��..-..---
Personal Prop"rty
Commercial and Rural-

Fiscal Tax Residential Industrial Underdeveloped
Year Property Property --
Property Business
_....._-----
Other
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 ,390,41 1 ,865 328,617,480 8 1 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 50,523,5 1 0
2002 2001 1 ,51 5,610,710 1 ,328, 1 21 ,065 31 5,270,880 892,71 0,483 1 63,977,230
2003 2002 1 ,625,755,01 0 1 , 307,594,240 3 1 9,775,450 9 1 0 , 1 36,402 1 01 ,305,2 1 0
2004 2003 1 ,670,101 ,235 1 ,285,202,470 320,599,730 938,958,351 92,863,880
2005 2004 1 ,782,8 1 1 ,934 1 ,237,970,296 335,934,884 1 , 035,824,147 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 2,140,430,476 1 ,2 1 6,832,909 749,798,431 1 , 1 70,881,088 233,718,540
2008 2007 2,362,393,502 1 ,270,200,090 779,593,229 1 ,3 1 8,729,750 1 72,605,020
(1 ) Values on property for road and bridge taxes,

Properly exemptions diffor from those allowed on maintenance and operation and interest and sinking taxes,
NOTE: Property in the County is reassessed annually, The County assesses property al l 00 percent of aclual
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 34
Totat 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
$ 760,501 , 1 1 1 $ 3,072,487, 1 69 $ 0, 0600 $ 3,072,487, 1 69 1 00,00%
793,443, 1 06 3,1 46,267,489 0,0600 3,1 46,267,489 1 00,00%
8 36,884,962 3,223,287,224 0,0550 3,223,287,224 1 00,00%
797,088,372 3,41 8,601,996 0,0450 3,418,601 ,996 1 00,00%
8 1 7 ,364,8 1 2 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, 1 39 0,0450 3,598,379,139 1 00.00%
924,708, 1 77 3,842,020,362 0.0500 3,842,020,362 1 00,00%
1 ,379,896,539 4,1 3 1 , 764,905 0.0550 4 , 1 3 1 ,764,905 1 00,00%
1 ,437,997,578 4,465,524,0 1 3 0,0550 4,465,524,01 3 1 00.00%
1 35
DIRECT AND OVERLAPPING PROPERTY TAX RATES
PER $100 OF ASSESSED VALUE
Count:l Direct R1i\tes Overlapping Rates

Road & Victoria
Fiscal Debt General Bridge City of Navigation Junior Victoria Bloomington
Year
--..
Service Fund Fund Total Victoria District CollegE!. LSD.
1 999 $ 0.0449 $ 0.2361 $ 0.0600 $ 0.3410 $ 0.7000 $ 0.01 23 $ 0.1 4 1 3 $ 1 .4850 $ 1 .4650
2000 0.0299 0.251 1 0.0600 0.34 1 0 0.7000 0.04 1 8 0.1 394 1 .4750 1 . 5490
2001 0.0299 0.2561 0.0550 0.3410 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 . 1 491 1 .5535 1 .6672
2005 0.0435 0.31 0 1 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 0.1416 1 .5535 1 .6433
2007 0.0379 0.3057 0.0550 0.3986 0.6900 0.0335 0.1416 1 .4285 1 .491 3
2008 0.0380 0.3056 0.0550 0.3986 0.6750 0.031 7 0.1 445 1 2337 1 .2 1 0 1
SOURC E: Victoria County Appraisal District
1 36
Ground Quail
Industrial Nursery McFaddin W.C.I.D WC.I.D V.C.DD. V.CD.D. Water Creek
I.SD.
---.....--�
I.SD. #1
---.....-�
#2
----
#3 District
--
M.UD. Total
$ 1 4400 $ 1 41 00 $ 1 .5000 $ 0. 6450 $ 1 .1710 $ 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 0.1900 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 0.1900 1 1 .2748
1 .8485 0.8998 1 . 5000 0.61 46 1 .0187 0 . 1 24 1 0.0500 0.1937 1 0.7580
1 .7361 1 .0250 1 4500 0.6162 0.991 1 0. 1 247 0.0477 0.1 896 10.6505
1 .5893 1 .3700 1 .4600 04947 0.9016 0.1 240 0.0460 0.1840 10.6335
1 .3600 1 .2540 1 4395 0.4687 0.9391 0 . 1 1 20 0.0461 0.0100 0.1 777 9.9906
1 . 3234 1 . 1 565 1 .1 875 0.6772 0.8757 0 . 1 1 31 0.0427 0.0100 0 . 1 749 9.2546
1 37
PRINCIPAL PROPERTY TAXPA YERS
(UNAUDITED)
Current Year and Nine Years Ago
2008
-----.------� ..---------..-.�.
Percentage
of Total County
Taxable Taxable
Assessed Assessed
Ta�payer Valuation Valuation
--.....---.�.�
Invista $ 343,268,1 70 7.48%

Invista S A R L 83,260,420 1 .81 %
Victoria WLE LP 50,091,030 1 .09%
AEP Texas Central Co 45,1 92,620 0.98%
E I Dupont De Nemours 43,452,480 0.95%
Equistar Chemicals, LP 37,316,590 0.81%
South Texas Electric Coop Inc 32,047,550 0,70%
Union Gas Operating Co, 27,474,600 0,60%
Air Uquide America Corp. 25, 1 67,2 1 0 0.55%
Southwestern Bell Telephone Co. 24,694,220 0.54%
$ 71 1 ,964,890 1 5.51 %
Percentage
of Talai Counly
Taxable Taxable
Assessed Assessed
Taxpayer Valuation Valuation
...--��.�.��
E.I Dupont De Nemours and Company $ 708,646,1 50 22.37%

Equislar Chemicals LP 66,6 1 8, 1 00 2.10%
Air Uquide America Corporation 57,931,010 1 .83%
Central Power and Light Company 51 ,768,900 1 .63%
Southwestern Bell Telephone Company 41 ,205,340 1 .30%
Carlisle Plastics, Inc 26,1 37, 1 90 0.83%
New York life Insurance Company 22,499,780 0. 7 1 %
Norwest Bank Texas, NA 1 4,540,070 0.46%
Health Care Property Investors 1 4,367,220 0.45%
Wilmington Trust co Trustee 1 0,61 7,030 0.34%
$ 1 ,0 1 4,330,790 �2·02'lQ
SOURCE: Victoria County Tax Assessor/Coliector
1 38
PROPERTY TAX LEVIES AND COLLECTIONS(1)
Last five fiscal years
Taxes Levied Collections within the

for the Fiscal Year of the Levy
Fiscal Fiscal Year Total Percentage
Year (Qriginal Levy) �djustments Adjusted Levy Amount of Levy
2004 $ 1 2,565,142 $ 1 3,930 $ 1 2,579,072 $ 1 2 ,297,626 97.76%
2005 1 3, 1 28,3 1 1 293,542 1 3,421 ,853 1 3, 1 34,288 97.86%
2006 1 3,807 , 1 27 (69,838) 1 3,737,289 1 3,471 ,286 98.06%
2007 1 4,548,61 5 (49,062) 1 4,499,553 1 4,1 99,891 97.93%
2008 1 5,579,099 (40, 2 1 7 ) 1 5, 538,882 1 5,21 3,071 97.90%
(1 ) Tax tevies 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 39
Collections Total Collections to Date
in Subsequent Percentage
Years Amount
$ 235,455 $ 1 2,533,081 99 63%
234,895 1 3,369, 1 83 99.6 1 %
202, 1 1 0 1 3,673,396 99.53%
1 81 ,725 1 4,381 ,61 6 99.19%
56,978 1 5,270,049 98.27%
1 40
PROPERTY TAX LEVIES AND COLLECTIONS (1)
Last five fiscal years
Taxes Levied Collections within the

for the Fiscat Year of the Lev}'
Fiscal Fiscal Year Total Percentage
Year (Original Levy) Adjustments Adjusted Levy Amount of Levy
2004 $ 1 ,547,823 $ 1 ,324 $ 1 ,549, 1 47 $ 1 ,51 5,798 97.85%
2005 1 ,61 9,739 34,839 1 ,654,578 1 ,620,549 97.94%
2006 1 ,921 ,399 ( 1 0,937) 1 ,91 0,462 1 ,875,102 98. 1 5%
2007 2,245,643 (8,1 30) 2,237, 5 1 3 2,1 92,993 98.01 %
2008 2,407,502 (9,521 ) 2,397,981 2,348,887 97.95%
(1 ) Tax levies and collections on road and bridge only.
NOTE: Information for fiscal years 1 998 through 2003 was not readily available.
SOURCES: County of Victoria

Victoria County Tax AssessorlColiector
141
Collections Total Collections to Date
in Subsequent Percentage
Years -�..
Amount
� ..��
of Levy
$ 27,704 $ 1 ,543,502 99.64%
27,605 1 ,648,1 54 99.61%
26,680 1 ,901 ,782 99.55%
26 ,87 7 2,21 9,870 99.2 1 %
8,766 2,357,653 98.32%
1 42
SALES TAX REVENUE
Fiscal Year Collections
1 999 $ 4,503,101
2000 4,729,825
2001 4,992,320
2002 4,858,298
2003 4,92 1 ,323
2004 5,546,861
2005 5,883,458
2006 6,91 8,443
2007 7,1 79,370
2008 7,584,672
NOTES: Collections reported on the budgetary (cash) basis of accounting.

Detailed information related to sales tax collections will be provided in subsequent ye ar s .
The increase in sales tax revenue is due to an increase in the revenue base.
143
DIRECT AND OVERLAPPING SALES TAX RATES
Last ten fiscat years
Fiscal Direct Rate Overlapping Rates

Year County City of Victoria State of Texas Total
1 999 0.50% 1 .50% 6.25% 8.25%
2000 0.50% 1 .50% 6.25% 8.25%
2001 0.50% 1 .50% 6.25% 8.25%
2002 0.50% 1 .50% 6.25% 8.25%
2003 0.50% 1 .50% 6.25% 8.25%
2004 0.50% 1 .50% 6.25% 8.25%
2005 0.50% 1 .50% 6.25% 8.25%
2006 0.50% 1 .50% 6.25% 8.25%
2007 0.50% 1 .50% 6.25% 8.25%
2008 0.50% 1 .50% 6.25% 8.25%
NOTES: Even though the total sales tax rate is 8.25%, sales occuring outside the City 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%.
144
RA TlOS OF OUTSTANDING DEBT BY TYPE
Business-type
Governmental Activities Activities
General Total Percentage
Fiscal Certificates of Obligation Revenue Primary of Personal Per
Year Obligation Bonds Bonds Government Income Capita
1 999 $ $ 1 1 ,200,000 $ 1 ,600,000 $ 1 2,800,000 0.85% $ 1 55.93
2000 1 0,375,000 1 ,545,000 1 1 ,920,000 0.73% 1 4 1 .76
2001 5,000,000 9,485,000 1 ,490,000 1 5,975,000 0.98% 1 88.58
2002 5,000,000 8,575,000 1 ,425,5 10 1 5,000,5 1 0 0.9 1 % 1 76.62
2003 5,000,000 7,71 5,000 1 ,370,000 1 4,085,000 0.82% 1 64.94
2004 4,700,000 6,855,000 1 ,305,000 1 2,860,000 0.71 % 1 49.79
2005 4,385,000 5,945,000 1 ,235,000 1 1 ,565,000 N/A 1 35.03
2006 4,060,000 5,005,000 1 , 1 60,000 1 0,225,000 N/A 1 1 8.63
2007 3,720,000 4,045,000 1 ,085,000 8,850,000 N/A 1 02.56
2008 3,370,000 3,035,000 1 ,005,000 7,41 0,000 N/A 85.87
NOTES: Details regarding the County's outstanding debt can be found in the notes to the
financial statements.
N/A denotes information not available.
SOURCE: County of Victoria
145
RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING
Ratio of Net Net

General Debt Service Net Bonded Debt Bonded Debt
Fiscal Obligation Funds Bonded to Assessed Per
Year Bonds Available Value Capita
1 999 $ 1 1 ,200,000 $ 708,224 $ 1 0,491 ,776 0.27% $ 1 27.81
2000 1 0,375,000 368,023 1 0,006,977 0.25% 1 1 9.01
2001 1 4,485,000 25,2 1 8 1 4,459,782 0.36% 1 70.70
2002 1 3,575,000 144,701 1 3,430,299 0.32% 1 58.1 3
2003 1 2,71 5,000 15 1 ,540 1 2,563,460 0.29% 1 47.12
2004 1 1 ,555,000 21 2,1 87 1 1 ,342,8 1 3 0.26% 1 32.12
2005 1 0,330,000 252,772 1 0,077,228 0.22% 1 1 7.66
2006 9,065,000 1 26,807 8,938,1 93 0 . 1 9% 1 03.70
2007 7,765,000 1 1 7,545 7,647,455 0 . 1 4% 88.62
2008 6,405,000 204,365 6,200,635 0. 1 1 % 7 1 .86
1 46
DIRECT AND OVERLAPPING G OVERNMENTAL ACTIVITIES DEBT
(UNA UDITED)
December 31, 2008
Percentage Amount
Net Debt Outstanding Applicable Applicable
To County
Direct Debt:
County of Victoria 1 2/31/2008 $ 6,20(),635 1 00.00% $ 6,200,635
Overlapping Debt:
City of Victoria 9/30/2008 71 ,41 4,099 1 00.00% 71 ,41 4,099
Victoria County Navigation District 1 2131/2008 7,879,759 1 00.00% 7,879,759
Victoria Junior College District 8/31 12008 20,895,000 1 00.00% 20,895,000
Victoria Independent School District 8/31 /2008 1 79,294,632 1 00.00% 1 79,294,632
tndusiriat lndependent School District 8/31 12008 1 0,721 ,965 25.46% 2,729,8 1 2
Victoria County Water Control and

Improvement District #1 613012008 1 , 520,227 1 00.00% 1 , 520,227
Victoria County Water Control and

Improvement District #2 9/30/2008 705,247. 1 00.00% 705,247
Total Overlapping Debt 292,430,92f). 284,438,776
Total $ 298,63 1 , 564 $ 290,639,41 1
SOURCE: County of Victoria, City of Victoria, Victoria Junior College, Victoria Independent School District,
Industrial Independent School District, Victoria County Water Control and Improvement District
Numbers 1 and 2.
1 47
LEGAL DEBT MARGIN INFORMA TION
Las/ /en fiscal years
1 999 2000 2001 2002
Debt limit $ 957,330 , 1 65 $ 1 ,014,478, 1 37 $ 1 , 01 5,043,047 $ 1 ,053,922,592
Total nel debt applicable

to limit 1 0,491,776 1 0,006,977 __ 1 4,<\59,782 1 3,430,299
Legal debt margin :s 946,838,389 $ 1 ,004,471 , 1 60 $ 1 ,000,583,265 $ 1 ,040,�92,293
Total net debt applicable to

the limit as a percentage
of debt limit 1 . 1 0% 0.99% 1 .42% 1 .27%
1 48
2003 2005 2006 2007 2008
$ 1 ,066, 1 41 ,578 $ 1 ,076,931 ,41 7 $ 1 , 1 31 , 1 68,760 $ 1 , 1 9 1 ,682, 1 35 $ 1 ,377,91 5,361 $ 1 ,475,880,398
1 2,563,460 11 3 1 0 ,077,228 8,938,193 6,200,635
$ 1 ,053,578,1 1 8 $ 1,()()5,588,604 $ 1 ,1 21 ,Ofjl,532 $ 1 ,1 82,743,942 $ 1 ,377,71 0,996 $ 1 ,��9,679,763
1 . 1 8% 1 .05% 0.89% 0.75% 0.01 % 0.42%
Legal Debt Margin Calculation for Fiscal Year 2008
Assessed value $ 5,903,522
Debt limn 1 ,475,880,398
Debt applicable to limit

General obligation bonds 6,405,000
Less: Debt Service Fund Balance 204,365
Total amount of debt applicable to debt limit 6,200,635
Legal debt margin $ 1 ,469,679,763
1 49
DEMOGRAPHIC AND ECONOMIC STA TIS TICS
(UNA UDITED)
(1 ) (2) (2) (3)

Fiscal Personal Per Capita Unemployment
Year Population Income (OOO's) Personal Income Rate
1 999 82,087 $ 1 ,503,863 $ 24,302 4.2 %
2000 84,088 1 ,643, 1 1 8 26,552 3,5%
2001 84,710 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 ,81 0,364 29,399 5,2 %
2005 85,648 NIA NIA 5.4%
200 6 86,191 NIA NIA 4,1%
2007 86,291 NIA NIA 3,5%
2008 86,916 NIA NIA 3,9%
NOTE: NIA 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 dala, Data for 2005 through 2007 is not yet available,
(3) U,S, Department of Labor
1 50
PRINCIPAL EMPLOYERS
(UNAUDITED)
Current Year and Nine Years Ago
2008
Percentage
of Total Area
Employer Emfll oyees Em[lloyment
Victoria Independent School District 2 , 1 00 4.84%
Formosa Plastics 1 ,500 3.46%
Citizens Medical Center 1 ,382 3.1 8%
The Inteplast Group 1 ,200 2.76%
DeTar Healthcare System 1 ,0 1 4 2.34%
Dow-Seadrift Operations 700 1 .61%
Calhoun Independent School District 654 1 .5 1 %
County of Victoria 620 1 .43%
City of Victoria 609 1 .40%
Invista 600 :10.36%
1 0,379 23 9 1':::;'
1 999
Percentage
of Tota I Area
Employer Em[lloyees f,:nlploj!ment
Victoria Independent School District 2,250 5.44%
The inteplast Group 1 ,800 4.35%
Formosa Plastics 1 ,646 3.98%
Koch-Invista (formerly DuPont) 1 , 1 51 2.78%
Dow-Seadrift Operations 1 ,047 2.53%
Alcoa 963 2.33%
Citizens Medical Center 904 2.1 9%
DeTar Healthcare System 650 1 . 57%
City of Victoria 603 1 .46%
Calhoun Independent School District 590 JA3%
�1 ,604 28.06%
NOTES: Based on Victoria Metropolitan Statistical Area, which includes Victoria,

Calhoun, Dewitt, Lavaca, Gonzales, Jackson and Goliad Counties.
SOURCE: Victoria Economic Development Corporation
1 51
FULL-TiME-EQUIVALENT COUNTY GOVERNMENT EMPLOYEES BY FUNCTiON/PROGRAM
2004 2005 2006

Function/Program
General government
County Judge 3 3 3 3
Comissioners' court 1 1 1 1
Records management
County clerk 16 16 16 16
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 10 10 10 10
District clerk 13 13 13 14
Justice of the peace #1 2 2 2 2
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 15 15 15 15
Administrative services 3 3 3 4
Information technology 5 5 5 7
Building maintenance 8 8 8 8
Juvenile detention facility 63 58 62 68
Public safety
Fire marshal 2 2 2 2
Sheriff 1 57 1 57 1 55 1 76
Constable #1 1 1 1 1
Parks and recreation 3 2 2 2
Extension service 7 7 7 7
Public health(includes floodlemg mgmt & health dept) 57 57 55 56
Highways and streets 43 39 40 40
Airport 14 14 19 19
Commissary 1 1 1 2
Navarro Project 4
Total A8!;!
NOTES: A fulHime employee is scheduled to work 2,080 hours per year (including vacation and sick leave),
Full-lime-equivalent employment is calculated by dividing total labor hours by 2,080,
Fiscal year 2006 additions were mainly due to the increase in the detention officers in lhe Sheriffs
department; these additions were necessary to meet the jail standards ratio for officers to prisoners,
Information for fiscal years 1 998 through 2002 was not readily available,
1 52
2007 2008
3 3
1 2
1 1
16 16
1 1
1 1
2 2
2 2
10 11
15 14
2 2
2 2
5 5
3 3
22 22
3 3
8 8
5 5
15 15
4 4
7 7
8 8
68 68
2 2
1 82 1 84
1 1
1 1
1 1
1
2 2
7 7
69 68
42 42
19 19
2 2
3 3
536 538
1 53
OPERA TlNG INDICA TORS B Y FUNCTION/PROGRAM
Last three fiscal years
2007 2008
FunctionlProgram
General government
County Court
Criminal cases filed 2,723 2,556 2,092
Criminal case d ispositions 3,057 3,301 2,338
Civil cases filed 532 578 521
Civil case dispositions 442 656 507
Juvenile cases filed 235 146 1 26
Juvenile case dispositions 214 1 76 1 05
District Court
Criminal cases filed 1 ,003 848 838
Criminal case dispositions 988 916 859
Civil cases filed 3,1 70 3,053 3,022
Civil case dispositions 3,095 3,006 3,1 86
Justice of the Peace
Civil cases filed 750 788 1 ,2 1 7
Criminal cases filed 1 7,420 1 5,043 1 1 ,547
Elections Administrator
New registrations 3,592 2,221 4,253
Elections held 11 2 5
County Auditor
Accounts payable invoices processed 24,099 19,746 1 8,749
County Treasurer
Payroll checks processed 1 6,963 1 7,003 1 8,069
Tax Assesor-collector
Automobile Registrations 87,569 88,853 86,190
Public Safety
Sheriff
Emergency 9 1 1 calls received 4,673 4,667 4,780
Fire marshal
Fires 434 143 391
Culture and Recreation
Parks and recreation
Cabana rentals 24 25 22
Public health
Health Department
Immunizations administered 8,320 1 3,661 1 3,967
Adult/Child health screening visits 582 2,571 1 , 203
Dental clinic visils 7,9 1 0 2,484 2,8 1 1
Enviromental Inspections/Permits 1 ,064 2,796 2,895
Mosquito control lrips 1 76 293 62
Animal control calls 3,1 74 1 1 ,824 9,292
Road and bridge precincts
Miles of roads overlayed 30 15 20
NOTE: I nformation for fiscal years 1998 through 2006 was nol readily available.
1 54
CAPITAL ASSET STA TIS TICS BY FUNCTION/PROGRAM
Fiscal Year
2003 2004 �'-��
2005 2006
Fu nction/Program
General government
Buildings 8 8 8 9
Parking Lots 3 3 3 3
Public safety
Sheriff
Jail 1 1 1 1
Patrol units 52 57 51 53
Fire Marshal
Stations 1 1 1 1
Fire Trucks 3 3 3 4

Roads (miles) N/A 590.75 590.75 596 1 3
Bridges 90 90 90 90
Landfills 4 3 2 2

Lake - Acreage 95 95 95 95
Boat Ramps 2 2 2 2
Extension Office 1 1 1 1
4 H Activity Center 1 1 1 1
Public Health
Animal Shelter 1 1 1
Airport
T-Hanger 6 6 6 6
Terminal 1 1 1 1
Navarro Lse Project

Building 1 1
NOTES: N/A denotes i nformation not available,
I nfermation for fiscal years 1 998 through 2002 was not readily available,
SOURCES: Various County Departments
Texas Department of Transportation
1 55
Fiscal Year
2007 2008
9 9
3 3
1 1
58 61
1
5 4
595.49 595.49
90 90
2 2
95 95
2 2
1 1
1 1
1 1
6 6
1 1
1 1
1 56
SI NGLE AUDIT SECTION
$l[I'HEN W. VAN MANFN, CPA
HWU
H/l,MIUON H, RE{),\olOt't CPA
OENNIS C. ClHAL CPA
ERiC L KUCERA, CPA
ClAYTON p, VAN PHt, CPA
ROSERl W, SCHAAR, CPA
MElISSA M. TERRY, CPA,
CERlIFlW PUilLiC ACCOUNTA"lIS
10) S. MAIN, SUITE 400 vOICE. pol J 573-3255
VIClORIA, lEXA:'; 17901 ·(H42 fAX: (261 J 5i'�9531
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

We have audited the statutory basis financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of County of Victoria, Texas (the "County") as of and for the year ended
December 31, 2008, which collectively comprise the County's basic financial statements and have issued
our report thereon dated August 20, 2009, 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 Government 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 In
our report on the County's financial statements. The financial statements were not audited In accordance
with Government 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 management or
employees, in the normal course of performing their assigned functions, to prevent or detect
m isstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control
defiCiencies, that adversoly 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
inconsequential will nol be prevented or detected by lhe County's internal control.
A material weakness is a significant defiCiency, or combination of s ignificant deficiencies, that results in

more than a rem ole likelihood that a material misstatement of the financial statements will not be
prevented or detected by the County's internal control.
MEMBERS Of
AMERiCAN INSTlIU1E Of CflWflED Pij£UC ACCOUNtANTS
1EXAS SOOHY Of CE1<TIF!ED PUBliC ACCOUNlk'iIS
Honorable County Judge and Members
Our consideration of internal control over financial reporting was for the limited purpose described in 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 in internal
control over financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are free of
material misstatement, we performed lests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncom pliance 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 nol 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 Government Auditing Standards.
This report is intended solely for the information and use of the County Judge and members of
Commissioners' Court, m anagement, and federal and state awarding agencies, and is not intended to be
and should not be used by anyone other than these specified parties,
,-l L
�l2O,'�009
.. ,'� �-I�LJf.
1 58
STEPHEN W. VAN MANEN. CPA
HWU
HAMII.TON H. REDMON, CPA
DENNIS C. ClHM. CPA
ERIC L. KUGRA. CPA
CLAYTON P. VAN PELT. CPA
ROllERT W. SCHAAR, CPA
MELISSA M. TERRY, CPA
CERTIFIED PUllLlC ACCOUNTANTS
101 S. MAIN. SUITE 1\00 VOICE: (36 1 ) 573·3255
VICTORIA. TEXAS 77901-11142 FAX: i36!) 573·9531
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A·1 33

Compliance
We have audited the compliance of the County of Victoria, Texas (the "County"), with the types of
compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A- 133
Compliance Supplement and the State of Texas Single Audit Circular that are applicable to each of its
major federal and state programs for the year ended December 31 , 2008. The County's major federal
and state programs are identified in the summary of auditor's results section of the accompanying
schedule of findings and questioned costs. Com pliance with the requirements of laws, regulations,
contracts and grants applicable to each of its major federal and state 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 in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations, and the State of Texas Single Audit Circular. Those
standards, the OMB Circular A-133, and the State of Texas Single Audit Circular require that we plan 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
and state program occurred. An audit includes examining, on a test basis, evidence about the County's
compliance with those requirements and performing such other procedures, as we considered necessary
in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit
does not provide a legal determination on the County's compliance with those requirements.
In our opinion, the County complied, in all material respects, with the requirements referred to above that
are applicable to each of its major federal and state programs for the year ended December 31 , 2008.
Internal Control Over Compliance
The management of the County is responsible for establishing and maintaining effective internal control
over compliance with requirements of laws, regulations, contracts and grants applicable to federal and
state programs. In planning 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 and state
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.
MEMllERS OF
AMERICAN INSTITUTE OF CERTIFIED PUllLlC ACCOUNTANTS
TEXAS SOCIETY OF CERTIFIED PUllLlC ACCOUNTANTS
A control deficiency in a n 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 or state
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 administer a federal or state program such that
there is more than a remote likelihood that noncompliance with a type of compliance requirement of a
federal or state 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 or state 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 in 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 in 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.
� �-ItlItRMAl/1.
August 20, 2009
1 60
SCHEDULE OF EXPENDITURES OF FEDERAL AND STA TE AWARDS
For the yeer ended December 31, 2008
Federal Agency or
CFDA Pass-through
Federal Grantor/Pass-Through Grantor/Program TitlE! m �_� Number Number Expenditures
FEDERAL EXPENDITURES
U, 5, Department of Transportation
Airport Improvement Grant 20 1 06 3-48-02 1 9-1 7-03 $ 7,626
Airport Improvement Grant 20 . 1 06 3-48-02 1 9-1 8-04 28,450
Airport Improvement Grant 20 . 1 06 3-48-021 9-20-07 650,432
686,508
Passed Through lhe Texas Department of Transportatioll

Click IVTickel 20.600 588XXF5073 4,608
Total Texas Department of Transportation
Passed Through the Governor's Division

of Emergency Management
Hazardous Materials Emergency Preparedness 20.703 08-DEM-LEPC-1 3 30,200
Total Governor's Division of Emergency Management �2QQ
Total U.S. Department of Transportation __ 721,316
U, 5, Department of Homeland Security

Passed Through the Transportation Security Administration
Airport Law Enforcement Personnel Program 97.090 HSTS0208HSLR354 1 0,088
Passed Through the Governor's Division

Hazard Mitigation Grant 97.039 FEMA-1 709-DR 494,659
Hazard Mitigation Grant 97.039 FEMA-1620-DR 1 5,398
Hazard Mitigation Grant 97.039 FEMA-1624-DR 28,791
Hazard Mitigation Grant 97.039 FEMA-3294-DR 380,1 1 0
Emergency Management Performance Grant 97.042 09TX-EMPG ............. 1 0,36()
Total Governor's Division of E mergency Management 929,325
Total U.S. Department of Homeland Security _____

93
..-__ 9- ,.j 1 '!
U, S, Department of Justice
Bultetproof Vest Partnership Program 1 6.607 N/A .............. 5,306
5,306
Passed Through the Office of Governor of Texas,
Criminal Justice Division
Victims Coordinator Uason Grant 1 6.575 802017 33,51 9
Victims Coordinator Uason Grant 1 6 .575 802025 _--=20 ,528
Total Office of Governor of Texas, Criminal Justice Division
Total U.S. Department of J ustice
( continued)
161
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE A WARDS
Federal Agency or
CFDA Pass-through
Federal Grantorlpass-Through GrantorIProgr§m
� T::.
itl",
e,--___
Number Number Expenditures
FEDERAL EXPENDITURES (Continued)

-
U. S. Department of Agriculture
Passed Through Texas Department of State Health Services
Special Supplemental Nutrition Program for Women,
Infants, and Children 1 0,557 2008-024638 $ 545,420
Special Supplemental Nutrition Program for Women,
Infants, and Children 1 0,557 2009-029987 209,843
Total Texas Department of State Health Services 755,263
Passed Through Texas Department of Health and Human

Services Commission
School Breakfast Program 1 0.553 TX-235-200712009 30,530
National School Lunch Program 1 0.555 TX-235-200712009
Cash Assistance 56,280
Non-Cash Assistance (Commodities) 9,531
Total Texas Department of Health and Human Services Commission _ .Jl.6 ,341
Total U,S. Department of Agriculture �. . 851 ,604
U. S. Department of Health and Human Services

Passed Through Texas Department of State Health Services
HtV Prevention Activities - Health Department Based 93.940 2008-023833 53, 1 44
Biotterrorjsm Preparedness 93.283 2008-028005 22, 8 1 5
Biotterrorism Preparedness 93,283 2008-023054 43,366
Immunization Grant 93,268 2009-028463 67,577
Immunization Grant 93.268 2008-023773 1 1 4,346
RLSSILPHS 93.991 2009-0281 46 54,982
RLSSILPHS 93,991 2008-0245000 1 06,094
Total Texas Department of State Health Services 462,323
Passed Through Alamo Area Development Corporation

Ryan White Part B - State Services 2008-2009 93.9 1 7 NIA 27,794
Ryan White Title I t - 2008 93,9 1 7 NIA 47, 67 4
Ryan White ParI B- Service Delivery 2008-2009 93.91 7 NIA ..... 1 63,2 43
Total Alamo Area Development Corporation 238 ,7 1 1
Passed Through Texas Juvenile Probation Commission

Federal Foster Care Grant Title IV-E 93.658 TJ PC-E-08-235 1 1 3,586
Total Texas Juvenile Probation Commission 1 1 3,586
(continued)
1 62
SCHEDULE OF EXPENDITURES OF FEDERAL AND STA TE AWARDS
Federal Agency or
CFDA Pass-through
Federal Grantor/Pass-Through GrantorlProgram Tille Number Number Expenditures
FEDERAL EXPENDITURES - (Continued)
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 233581 51
Total Texas Department of Family and Protective Services
Total U.s. Department of Health and Human Services 841
U. S. Elections Assistance Commission

Passed Through Texas Secretary of State - Elections Division
County Education Fund 39.0 1 1 77530
Total U.s. Elections Assistance Commission
U. S. Department of Housing and Urban Development

Passed Through Texas Department of Health in Bexar County
HOPWA 2007-2008 14.241 2007/2008 VCCHD 1 4,533
HOPWA 2008-2009 1 4.241 2008/2009 VCCHD 60,286
Total Texas Department of Health in Bexar County 74,819
Total U.S. Department of Housing and Urban Development 74,81 9
TOTAL FEDERAL EXPENDITURES 3,490,948
STATE EXPENDITURES
Texas Department of State Health Services
Zoonosis Control NIA 2008-022852 23,075
Zoonosis Control NIA 2009-028521 1 3,740
Diabetes-Comm. Diabetes Services N/A 2009-027844 28,681
Diabetes-Comm. Diabetes Services NIA 2008-022754 57,109
122,605
Passed Through Texas Department of Health in Bexar County
HIV Treatment, Health and Social Services - 2007/2008 NIA 200712008 VCCHD-01 1 0 ,666
HIV Treatment, Health and Social Services - 2008 N/A 200812009 VCCHD-01 3 1 , 109
Total Texas Department of Health in Bexar County 4 1 ,775
Passed ThrouglJ Southwest Texas Regional Advisory Council

Public Health Preparedness NIA NIA 1 3,242
Total Texas Department of Slate Health Services 1 77,622
(continued)
1 63
SCHEDULE OF EXPENDITURES OF FEDERAL AND S TA TE A WARDS
Federal Agency or
CFDA Pass-through
Federal Gral1t()rWfolss-Through Grantorll'r(lgram TiUe Number Number Expenditures
STATE EXPENDITURES - (Continued)
Texas Juvenile Probation Commission

Diversionary Placement Fund NIA Grant H $ 44,280
State Aid NIA TJPCA2008-235 55,550
State Aid NIA TJPC-A-2009-235 39,680
Progressive Santions JPO NIA TJPC-F-2008-235 54,894
Progressive Santions JPO NIA TJPC-F-2009-235 39,21 0
Progressive Santions 1 23 Program NIA TJPC-G-2008-235 1 7,854
Progressive Sanlions 1 23 Program NIA TJPC-G-2009-235 1 2,755
Intensive Community Based Program NIA TJ PC-X-2008-235 34,300
Intensive Community Based Program NIA TJPC-X-2009-235 1 1 ,433
Community Corrections Assistance Program NIA TJPC-Y-2008-235 1 28,906
Community Corrections Assistance Program NIA TJPC-Y-2009-235 92,075
Salary Adjustment NIA TJPC-Z-2008-235 57,883
Salary Adjustment NIA TJPC-Z-2009-235 ��!50
Total Texas Juvenile Probation Commission 631,570
Office of the Attorney General of Texas

Texas Vine Grant NIA 08-00201 1 7,925
Texas Vine Grant NIA 908772 1 7,925
Total Office of the Attorney General of Texas 35,850
Texas Task Force on Indigent Defense

Indigent Defense NIA NIA 85,209
Texas Department of Public Safety

Passed Through Governor's Division
Local Border Security Program FY08 NIA LBSP-08-027 94,790
TOTAL STATE EXPENDITURES 1 ,025,041
TOTAL FEDERAL AND STATE EXPENDITURES $ 4,5_1 5,990
See accompanying notes to schedule of expenditures of federal and slale awards.

1 64
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
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 Governments, and Non-Profil Organizations. Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of the
financial statements.
165
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Section 1 - Summary of Auditors' Results
Financial Statements
Type of auditors' report issued: Unqualified
Internal control over financial reporting:

• Material weakness(es) identified? o yes [gJ no
• Significant deficiency(ies) identified
that islare not considered to be
material weakness(es)? o yes [gJ none reported
Noncompliance material to financial

statements noted? o yes [gJ no
Federal Awards
Internal control over major programs:

• Material weakness( es) identified? o yes [gJ no
• Significant deficiency(ies) identified
that islare not considered to be
material weakness(es)? o yes [gJ none reported
Type of auditors' report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are

required to be reported in accordance
with Section 51 0(a) of Circular A-133? o yes [gJ no
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster

10.557 _�e�ial §upplE>lTl�ntal. Nutriti()n.l"rogram forlfV_o_rTl�t1' _
Infants, and Children
97.039 -':j"zar� Mitigation Granl _ _ ___ _ ___ ______ ...._ _._._____
N/A
- --------- --,------------.--------------------------------------- ---- - -- -- --- - - -.,--.
Texas Juvenile Probation Commission-200B/2009-235
Dollar threshold used to distinguish

between type A and type B programs: $300,000
Auditee qualified as low-risk auditee? [gJ yes O no
Section II Financial Statement Findings

-
None noted.
Section III Federal Award Findings and Questioned Costs

-
None noted.
1 66
SCHEDULE OF PRIOR AUDIT FINDINGS
None were reported,
1 67

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COUNTY OF VICTORIA, TEXAS

FOR THE YEAR ENDED

Prepared by: County Auditor's Office

Management's Discussion and Analysis"" . . , , "" " " 3

Basic Financial Statements

Government-wide Financial Statements

Fund Financial Statements

Required Supplementary Information

Schedule of Revenues, Expenditures, and Changes in Fund Balance

Notes t o Required Supplementary Information ............................................... ...... . . ............. . 72

Combining and Individual Fund Statements and Schedules

FINANCIAL SECTION · (Continued)

Combining and Individual Fund Statements and Schedules · (Continued)

Governmental Funds (Continued)

Nonmajor Debt Service Funds ..... . . . .................... . . . . . ..................... . . . . . . . . . . . . . . . .. . . . . ................. 97

Individual Statements and Schedules

Nonmajor Special Revenue Funds

FINANCIAL SECTION · (Continued)

Combining and Individual Fund Statements and Schedules· (Continued)

Governmental Funds - (Continued)

STATISTICAL SECTION ............. . . .............................................................. .......................................... 120

Tax Revenues by Source, G overnmental Funds.......................................................... 131

Princip al Property Taxpayers (Unaudited) ... ....................................... . 1 38

STATISTICAL SECTION· (Continued)

Revenue Capacity (Continued) -

Direcl and Overlappin g Sa le s Tax Rates. 1 44

Ratios of Outst anding Debt by Type 1 45

Ratios of Net General Bonded Debt Outstand in g ..... 1 46

Legal Debt Margin Inform ation ........... . .. . .. 1 48

Demographic and Economic Information

Demographic and Economic Statistics (Unaudited) ......... ............... ....... .

FUll-Time-Equi valent City Governmental Employees b y Function/Program ... . ... . .............

SINGLE AUDIT SECTION

Report on Internal Control Over Financial Reporting and on

115 N. Bridge, Room 122 Tel: (361)575·8451

Honorable District Judges

PROFILE OF VICTORIA COUNTY

FACTORS AFFECTING FINANCIAL CONDITION

Attorney Sheriff Constables Commissioners Judge Clerk Clerk Judges Auditor

E LECTED OFF ICIALS

Donald R. Pozzi County Judge

Kenny Spann Commissioner, Precinct # 1

Stephen Tyler Criminal District Attorney

Val D. Huvar County Clerk

Cathy Stuart District Clerk

Sean Kennedy County Treasurer

Rena Scherer County Tax Assessor-Collector

T. Michael O'Connor County Sheriff

Laura A. Weiser Judge, County Court-at-Law # 1

Joseph P. Kelly Judge, 24th Judicial District

Annie Ramos Justice of the Peace # 1

Richard G. Castillo Constable. Precinct # 1

Judy McAdams, CPA County Auditor

ERIC L KUCERA, CPA

INDEPENDENT AUDITORS' REPORT

The Honorable County Judge and Members

OVERVIEW OF THE FINANCIAL STATEMENTS

Organization and Flow of Financial Section Information

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