2006 Victoria County CAFR

COUNTY OF VICTORIA, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT

For the year ended December 31, 2006
Prepared by: County Auditor's Office

Judy McAdams, CPA
Victoria County Auditor
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
INT RODUCTORY SECTION

County Auditor's Letter of Transmittal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................... . ...................... ......... .
Certificate of Achievement for
Excellence in Financial Reporting. .................................................................................................... v
Organizational Chart .... ... .............. ....... ................. .......... ..................... .......... .......... ... ..... ....... .... .... ...... vi
Directory of Principal Officials . . . . . . . ....... ................. ... ....... ... .......... ................. ............. ............ .... ....... ... vii
F INANCIAL S ECTION
I ndependent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Management's Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Bas ic 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .........
. 18
Statement of Revenues, Expenditures, and Changes i n Fund Balances -
Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 19
Reconciliation of the Governmental Funds Statement of 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 Changes 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 Supp lementary Information
SchedUle of Revenues, Expenditures, and Changes in Fund Balance

Budget and Actual - General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Notes to 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, Expenditures, 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 Special 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

Com bining Balance Sheet - Nonmajor Debt Service Funds . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . ..... 98
in Fund Balances - Nonmajor Debt Service Funds . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
I ndividual 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 Precinct No. 1
Balance - Budget and ActuaL. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Balance - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 09
Balance - Budget and Actual . . . . . . . . . . . . . . . ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 110
Balance - 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 Debt Service Funds
Road Bonds Sinking Fund
Schedule of Revenues. Expenditures. and Changes in Fund
Balance - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Jail Bonds Sinking Fund
Courthouse Restoration Bonds Sinking Fund
Bridge Street Annex Sinking Fund
Balance - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Fiduciary Funds
Agency Funds . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 116
Combining Statement of Changes in Assets and
Liabilities ... . . . . .......... . . . . . .......... . . . . ......... . . . . .......... . . . . .......... . . . . . . . ....... . . . . . . .......... . . . . ........ . . . . . . . . 117
STATISTICAL SECTION .............................................. ........ ..... ............................................................ . 120
Financial T rends
Net Assets by Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 1 21
Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......

. 1 22
Fund Balances. Governmental Funds . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . ....................................................

. 1 24
Changes in Fund Balances. Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . 1 25
Tax Revenues by Source. Governmental Funds . . . . . . . . . . . . . . . . . . . . ............ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . 1 26
Revenue Capacity
Assessed and Estimated Actual Value of Taxable Property - General and I&S . . . . . . . . . . . . . . . . . . . . . 1 27
Assessed and Estimated Actual Value of Taxable Property - Road and Bridge . . . . . . . . . . . . . . . . . . . . . 1 29
Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....

. . . 1 31
Principal Property Taxpayers (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .................... . 1 33
Property Tax Levies and Collections - General and I&S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 34

TABLE OF CONTENTS
(Continued)
STATISTICAL SECTION · (Continued)
Revenue Capacity · (Continued)
Property Tax Levies and Collections· Road and Bridge "."". " .... "."."" . . .".""." . . . . . . ."""" , , . . 1 36
Sales Tax Revenue" . . . . . . . . . . . . . . . ""." . . . . . " . . ." . . . . . . . . . . . . . . . . . . . . . . " . . . . . . . . . . . . . . . . . . . . . . . . " . . . . . . . . " . . . . . . . . . . . ".... 1 38
Direct and Overlapping Sales Tax Rates"""""""""""""""""""""""""""""""""""""""" 1 39
Debt Capacity
Ratios of Outstanding Debt by Type """"""""""""""""""""""""""""""""""""""""""'" 1 40
Ratios of Net General Bonded Debt Outstanding """"""""""",,""""",,", ,"""""", , ,,"""",,. 141
Direct and Overlapping Governmental Activities Debt (Unaudited) """""""""""""""""""" 1 42
Legal Debt Margin Information ." . . . "." . . . . . . . . . . "." . . . . ." . . . . "." . . . . . . . . . . ""." . . . . "."" . . . . . . . . . . . . . ." ......".. 1 43
Demograp hic and Economic Information
Demographic and Economic Statistics (Unaudited) """"""""""""""""""""""""""""""'" 1 45
Principal Em ployers (Unaudited) . . . . . . . . . . . . . . . . . ."." . . . . . . . . . . . . . . . . . " . . . . . . . . . . . . . . . . . . . . . . . . . . " . . . . . . . . . . . . . . . . . . . ,," 1 46
Operating Information
Full·Time-Equivalent City Governmental Employees by Function/Program """"""""""""'" 1 47
Operating Indicators by Function/Program .. """" . . ,,"""""""""" . . . . ,,"" . . ,,""",, . . ,,""""""". . . 1 48
Capital Asset Statistics by Function/Program """ . . " . .""""""""" . ."""" . ."" .. ,,"""",,",, . . ,, . . ,,. 1 49
SINGLE AUDIT SECTION
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 . . " ........... " .... "." ..... "."." . ." . . " ......."."."." . . " ...""."." . . " .......... "."." ......"."."." .............".". 1 50
Report on Compliance With Requirements Applicable to Each Major

Program and Internal Control Over Compliance in Accordance With
OMB Circular A-1 33 ........ " .. "."." ........ " .. " .. " ............. "." .. " .... "."."."."." ..........."""............ " .. "",,.... 1 52
Schedule of Expenditures of Federal and State Awards .. "" ...." . . . ."""""" .."""""""", , .. , , .. , ,"""", ,... 1 54
Notes to Schedule of Expenditures of Federal and State Awards"""""""""" .."""""""" .. """"""". 158
Schedule of Findings and Questioned Costs .."""""""" .."""" . . . . ,,",,""""", , .... , ,""""",," .. , ,""""",,. 159
Schedule of Prior Audit Findings." .... " . . ."." . . " . . . " ...." . . ." . . . ." . "....... "." . . " .............""." . . " ........ " . . ".".". 1 60
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
June 19, 2007
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 3 1 , 2006. 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. This report was prepared in conformity willl generally accepted accounting principles
(GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed
certified public accountants, and is in compliance with V.T.CA, Local Government Code Section 1 1 4 . 025.
The County's 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 have been audited by Harrison, Waldrop and U herek, L.L. P . , a firm of licensed certified public
accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the County, for the year ended December 3 1 , 2006, are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion
that the County's financial statements for the year ended December 3 1 , 2006, are fairly presented in
conformity with GAAP. The independent auditor's report is presented as the first component of the
financial section of this report.
The CAFR was prepared in accordance with the Government Accounting Standards Board Statement
Number 34, and is presented in the following four sections: 1 ) The Introductory Section includes this
transmittal letter, the government's organizational chart and a directory of principal officials. 2) The
Financial Section is composed of the independent auditor's opinion, management's discussion and
analysis, the basic financial statements (including notes), required supplementary information and the
combining and individual fund financial statements and schedules. 3) The Statistical Section provides
various financial, economic and demographic data about the County generally presented on a multi-year
basis. 4) The Single Audit Section contains the independent auditor's reports on the internal control
structure and compliance with applicable laws and regulations, along with the schedule of expenditures of
federal and state awards.
Honorable District Judges June 1 9, 2007
County of Victoria
The independent audit of the financial statements of the County was part of a broader, federally mandated
"Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair presentation of the
financial statements, but also on the audited government's internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving the
administration of federal awards.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of management's discussion and analysis (MD&A). This letter
of transmittal is designed to complement the MD&A and should be read in conjunction with it. The
County's MD&A can be found immediately following the report of the independent auditors.
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 1 836 from a Mexican
municipality named for Mexican President Guadalupe Victoria. The County encompasses an area of 892
square miles and serves a population of 85,648.
The County is a public corporation and political subdivision of the State of Texas. The general governing
body of the County is the elected five-member Commissioners' Court in accordance with Article 5,
Paragraph 1 8 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 polices 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.
The County Auditor has responsibilities for prescribing the systems and procedures for handling the
finances of the County and "examining, auditing and approving" all disbursements from County funds prior
to their submission to the Commissioners' Court for approval.
The County provides a full range of services. The County provides many services not ordinarily provided
by any other entity of government and provides additional services in cooperation with other local
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 foundation 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 1 1 1 .0 1 0. Budget-to-actual comparisons
are provided in this report for each governmental fund for which an appropriated budget has been
adopted.
ii
Honorable District Judges June 1 9 , 2007
County of Victoria
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
d isposition, and the reliability of financial records for preparing financial statements. The concept of
reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be
derived, and the evaluation of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the County's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper recording
of financial transactions.
Various potential component units were evaluated to determine whether they should be included in the
County's reporting entity because of the significance of their operational and financial relationship with the
County. Based upon standards established by the Governmental Accounting Standards Board (see Note
1 to the financial statements), three component units have been included in this year's report: 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, plastics 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 8% to 10% of annual expenditures. In the past fiscal
year the County incurred a significant increase in the general fund unreserved fund balance as a result of
additional revenues and reducing general fund expenditures. The County's General Fund reserve target is
based on the County's policy of deferring ad valorem property taxes. The resulting unreserved fund
balance does not include $3.2 million in ad valorem taxes collected in October, November and December
of 2006, and are instead reported as deferred revenues.
Long-Term Financial Planning The County of Victoria has identified several long-term issues that need
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to be prioritized and funded by the Commissioner's Court. These priorities include upgrading software for
all courts, the Sheriff and the Tax Assessor/Collector office, adding an additional courtroom for the
increasing case load of jury trials and resolving inadequate parking around the Courthouse complex. The
County Airport has identified many aging buildings that also need to be demolished. The Airport Traffic
Control Tower is in the process of being refurbished and plans are to bring it into service in 2007, which
has gained the County Airport the award of a Government fueling contract.
Cas h 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
iii
Honorable District Judges June 1 9, 2007
County of Victoria
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. Generally, the County has
limited its investments to various U.S. Government obligations and mortgage-backed instruments.
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 And Other Post Employment 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. Benefits 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 credits is adopted within the constraints imposed
by the TCDRS Act so that the resulting benefits can be expected to be adequately financed.
AWARDS AND ACK NOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to Victoria County, Texas, for its comprehensive annual financial report
(CAFR) for the fiscal year ended December 3 1 , 2005. This was the thirteenth consecutive year that the
government has received this prestigious award. I n order to be awarded a Certificate of Achievement, the
government published an easily readable and efficiently organized CAFR. This report satisfied both GAAP
and applicable legal reqUirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of the CAFR could not have been accomplished without the efficient and dedicated efforts
of the staff of the County Auditor's Office. We express our appreciation to all the members of the office
who assisted in and contributed to its preparation. We would also like to thank the accounting firm of
Harrison, Waldrop & Uherek, L.L.P. for sharing their knowledge, and extending their cooperation and
support to the County Auditor's Office. Appreciation must also be expressed to the County Judge,
mem bers 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.
q:;�bWl�aa�
Judy McAdams, CPA
Victoria County Auditor
iv
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
County of Victoria
Texas
For its Comprehensive Arumal
Financial Report
for the Fiscal Year Ended
December 31, 2005
A CCltificate of Achievement for Excellence in Financial

Reporting is presented by the Govenunent Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Executive Director
v
VICTORIA COUNTY ORGANIZATION
I COUNTY VOTERS I
I
1 J 1 J 1 1 1 1 1 -I
District
Attorney
Fire
Marshal
I l
Sheriff
Four
Constables
Four
Justices of
the Peace
EJ
Tax
Assessor
Collector
Four
Commissioners
County
Judge
County
Clerk
Two Count
Courts-at-
Law Judges
District
Clerk
District
Judges
f- County
Auditor
� I I
1
Probate
Judges
Commissioners
Court
I I I I I
Administrative Emergency Veteran
Services Management/Flood Service Information Building Election Heritage
Plain Administrator Officer Technology Maintenance Administrator Director
Victoria Citizens
Regional Medical
Airport Center
t
JUVENILE BOARD
Victoria
Two County Four Agricultural
County County City-County
Courts-at- District Extension
Judge
law Judges
Clerk Health
Judges Service
Department
'" '"
I
I I
Texas
Texas
Juvenile Juvenile State
A&M
Probation Detention Health
University
Department
DIRECTORY OF PRINCIPAL OFFICIALS
ELECTED OFFICIALS
NAME POSITION
Donald R. Pozzi County Judge
Chris Rivera Commissioner, Precinct # 1
Robert J . Nobles Commissioner, Precinct # 2
Gary Burns Commissioner, Precinct # 3
Wayne D. Dierlam Commissioner, Precinct # 4
M.P. "Dexter" Eaves Criminal District Attorney
Val D. Huvar County Clerk
Cathy Stuart District Clerk
Cathy Bailey 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, I I I Judge, County Court-at-Law # 2
Joseph P . Kelly Judge, 24th Judicial District
K. Stephen Williams, I I I Judge, 1 35th Judicial District
Juergen "Skipper" Koetter, Jr. Judge, 267th Judicial District
Robert C. Cheshire Judge, 377th Judicial District
Annie Ramos Justice of the Peace # 1
Carolyn Milam (appointed 9/06/05) Justice of the Peace # 2
Beatriz Gonzalez Justice of the Peace # 3
Tom Eastland Justice of the Peace # 4
Javier O. Duran Constable, Precinct # 1
James E. Calaway Constable, Precinct # 2
Kenneth Easley, Jr. Constable, Precinct # 3
John G. Miller Constable, Precinct # 4
APPOINTED OFFICIAL
NAME POSITION
Judy McAdams, CPA County Auditor
Warren Kyle Young County Fire Marshal
vii
FINANCIAL SECTION
HARRISON, WALDROP & UHEREK, L.L.l'.
STEPHEN W. VAN MANEN, CPA
HAMILTON H. REDMON. CPA
HWU
DENNIS C. CIHAL. CPA
E. BRUCE WOOlSON, CPA
ERIC L. KUCERA, CPA
CLAYTON P. VAN PELT, CPA
ROBERT W. SCHAAR, CPA
MELISSA M. TERRY, CPA
CERTIFIED PUBLIC ACCOUNTANTS
101 S. MAIN, SUITE 400 VOICE: (361) 573·3255
VICTORIA, TEXAS 77901-8142 FAX: (361) 573-9531
INDEPENDENT AUDITORS' REPORT
The Honorable County Judge and Members

of the Commissioners' Court
County of Victoria, Texas
We have audited the accompanying financial statements of the governrnental 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 3 1 , 2006, which collectively comprise the County's basic financial statements as listed in the table
of contents. These financial statements are the responsibility of the County's management Our
responsibility is to express an opinion on these financial statements based on our audit. We did not audit the
financial statements of the Citizens Medical Center, which statements reflect total assets of $179,387,197 as
of June 30, 2006, and total revenues of $129,872,874 for the year then ended. We also did not audit the
financial statements of the Victoria County Child Welfare Board, which statements reflect total assets of
$ 1 3 1 ,729 as of December 3 1 , 2006, and total revenues of $75,376 for the year then ended. Those
statements were audited by other auditors whose reports have been furnished to us, and our opinions on the
financial statements, insofar as it relates to the amounts included for the Citizens Medical Center and the
Victoria County Child Welfare Board in the component units' column, is based solely on the reports of the
other auditors.
We conducted our audit in accordance with auditing standards and standards generally accepted in the
United States of America applicable to financial audits contained 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.
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the County as of December 3 1 , 2006, and the respective changes in
financial position and cash flows, where applicable, thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
The management's discussion and analysis and budgetary comparison information on pages 3 through 1 2
and 71 through 72, are not a required part of the basic financial statements but are supplementary
information required by accounting principles generally accepted in the United States of America. We
have applied certain limited procedures, which consisted principally of inquiries of management regarding
the methods of measurement and presentation of the required supplementary information. However, we
did not audit the information and express no opinion on it.
MEMBERS OF
AMERICAN INSTITUTE OF CERTIfiED PUBLIC ACCOUNTANTS
TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
In accordance with Government Auditing Standards, we have also issued our report dated June 1 9, 2007, on
our consideration of the County's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming opinions on the financial statements that collectively
comprise the County's basic financial statements. The introductory section, combining and individual major
and non major fund financial statements and schedules, statistical data, and schedule of expenditures of
federal and state awards (as required by the U.S. Office of Management and Budget Circular A-1 33, Auditing
of States, Local Governments, and Non-Profit Organizations) are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The combining and individual major
and non major fund financial statements and schedules and the schedule of expenditures of federal and state
awards have been subjected to the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken
as a whole. The introductory section and statistical data have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we express no opinion on them .
June 1 9, 2007
2
MANAGEMENT'S DISCUSSION AND ANAL YSIS
December 31, 2006
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 3 1 , 2006. The discussion and analysis should be
read in conjunction with the accompanying transmittal letter, the basic financial statements and the accompanying
notes to those financial statements. The discussion and analysis includes comparative data for the prior year.
FINAN CIAL HIGHLIGHTS

• The assets of the County exceeded its liabilities at the close of the year ended December 3 1 , 2006 by
$ 37,987,617. Of this amount $ 1 3,802,412 is available to meet the County's ongoing obligations to
citizens and creditors.
• At December 3 1 , 2006, the County's governmental funds reported combined ending fund balances of
$ 14,368,752. The amount available for governmental discretion (unreserved fund balance) is
$ 1 3, 576, 931 .
• At December 3 1 , 2006, unreserved fund balance for the General Fund was $ 1 1 ,273,877 or 44.55% of
total General Fund expenditures.
• The County's general obligation debt netted a decrease of $ 1 ,265,000. The key factor in this decrease
was debt payments made during 2006.
• The County's capital leases netted an increase of 35.89%. The key factor in this increase was new
leases entered into by the County that totaled $ 1 ,493,422.
OVERVIEW OF THE FINANCIAL STATEMENTS
The new financial reporting model instituted by Governmental Accounting Standards Board Statement 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 government 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 financial statements are comprised of four components: 1) government-wide financial statements,
2) fund financial statements, 3) component unit financial statements, and 4) notes to financial statements. This
report also contains other required supplementary information in addition to the basic financial statements.
Organization and Flow of Financial Section Information
Independent Auditors' Report

Provides the opinion of the Independent Auditors on the fair
J2[esentation of the basic flilancial statements.
Management's Discussion and Analysis

This supplementary information is required for state and local government
financial statements and is intended to provide a narrative introduction
and analysis.
Pages 3 to 12
Government-wide Financial Fund Financial Statements Component Unit Fi nancial

Statements Provides information on the Statements
Provides information on financial position of specific funds Provides information on the
govemmental and business-type of the primary governments. County's component units
activities of the primary
govemment.
PaQes 13 to 16 Pages 17 to 26 Pages 27 to 29
Notes to Financial Statements

Provides a summary of significant accounting policies and related disclosures.
Pages 30 to 70
3
OVERVIEW OF THE FINAN CIAL STATEMENTS - (Continued)
Gover n ment-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 2006.
All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but
unused vacation leave).
Both of these financial statements distinguish functions of the County that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their cost through user fees and charges (business-type activities). The governmental
activities of the County include general government, public safety, 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 1 3- 1 6 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The County, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary
funds, and fiduciary funds.
G overnmental 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
following the required supplementary information.
4
OVERVIEW OF THE FINANCIAL STATEMENTS (Continued) -
The County adopts an annual appropriated budget for its General Fund, road and bridge special revenue funds
and debt service funds, A budgetary comparison schedule has been provided for the General Fund to
demonstrate compliance with this budget and is located on pages 1 00-107 of this report, Budget comparisons
are presented 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 different types of proprietary funds, Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial statements, The
County uses enterprise funds to account for its airport, Navarro project, and other enterprise activities
(commissary), 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 employee
health insurance services, Because this service predominantly 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 21-24 of this report,
Fiduciary funds, Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statement because the resources
of those funds are not available to support the County's own programs, The accounting used for fiduciary funds is
similar to proprietary funds,
The basic fiduciary fund financial statements can be found on pages 25-26 of this report,
N otes to financial statements, The notes provide additional information that is essential to a full understanding
of the data provided 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 and accompanying notes, this report also
presents certain required supplementary information concerning the County's General Fund's budgetary
comparison schedule, Required supplementary information can be found on pages 71-72 of 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 $37,987, 6 1 7 at the close of the year ended
December 3 1 , 2006.

Net A ssets
Governmental Business-type
Activities Activities Total
2006 2005 2006 2005 2006 2005
Current and other assets $ 34,996,235 $ 31,183,903 $ 752,949 $ 437,154 $ 35,749,184 $ 31,621,057
Capital assets (net) 24,015,082 23,932,761 10,666,904 9,834,927 34,681,966 33,767,688
Tolal Assets 59,011,317 55,116,664 11,419,853 10,272,081 70,431,170 65,388,745
Current and olher liabilities 19,838,013 19,046,665 910,780 459,381 20,748,793 19,506,046
Noncurrent liabililies 10,599,019 11,229,813 1,095,741 1,166,397 11,694,760 12,396,210
Total Liabililies 30,437,032 30,276,478 2,006,521 1,625,778 32,443,553 31,902,256
Net Assets:
Investment in capital assets,
net of relaled debt 13,930,982 14,019,641 9,540,853 8,662,029 23,471,835 22,681,670
Restricted 713,370 727,782 713,370 727,782
Unreslricted 13,929,933 10,092,763 (127,521) __ -"(1,
5
",,.,72,,,
6
, ) 13,802,412 10,077,037
Tolal Net Assets $ 28,574,285 $ 24,840,186 $ 9,413,332 $ 8,646,303 $ 37,987,617 $ 33,486,489
The largest portion of the County's net assets (61 . 79%) reflects its investment in capital assets (e.g., land,
buildings, improvements, machinery and equipment), less any related debt used to acquire those assets that is
still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the County's investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
The County has restricted net assets of $71 3,370, which represent resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets ($13,802,412) may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current year, the County is able to report positive balances in 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
GOVERN MENT-WIDE FINAN CIAL ANALYSIS - (Continued)
Countll of Vi ctori a, Texas

Changes i n Net Assets
2006 2005 2006 2005 2006 2005
REVENUES
Program revenues:
Charges for services $ 1 0,977,848 $ 10,1 1 7,054 $ 2,266,883 $ 2,176,879 $ 13,244,731 $ 12,293,933
Operating grants and contributions 3,41 0,606 3,227,144 80,000 3,490,606 3,227,144
Capital grants and contributions 7,584 695,671 1 ,483,028 1 ,773,311 1 ,490,612 2,468,982
General revenues:
Property taxes 15,637,488 15,180,030 15,637,488 15,180,030
Other taxes 7,370,552 6,221 ,442 7,370,552 6,221 ,442
Other 1,711,384 1 ,408,398 26,463 23 499 1,737,847 1 ,431 ,897
Total Revenues 39,1 1 5 462 36,849,739 3 856,374 3,973,689 42 971 ,836 40,823.428
EXPENSES
General governmental 1 4,575,456 14,149,101 14,575,456 14,149,101

Public safety 1 0,942,218 9,929,954 10,942,218 9,929,954
Highways and streets 4,141 ,588 4,232,306 4,141 ,588 4,232,306
Culture and recreation 1 ,340,356 1 ,293,663 1,340,356 1 ,293,663
Public health 3,860,870 3,653,066 3,860,870 3,653,066
Interest on long-term debt 390,875 430,889 390,875 430,889
Airport 2,603,568 2,301 ,212 2,603,568 2,301 ,212
Navarro project 512,537 481 ,568 512,537 481,568
Commissary 1 03.240 73,431 1 03.240 73.431
Total Expenses 35,251,363 33,688,979 3,21 9,345 2,856.211 38,470,708 36 545,190
Change in net assets before

transfers 3,864,099 3,160,760 637,029 1 , 1 1 7,478 4,501,128 4,278,238
Transfers (130 000) (1 30,000) 130,000 1 30,000
Change in net assets 3,734,099 3,030,760 767,029 1 ,247,478 4,501,128 4,278,238
Net assets - January 1 , 2006,

as restated 24,840,186 21,809,426 8,646,303 7 398,825 33.486.489 29,208,251
Net assets - December 31, 2006 ..$2Jl,ill,2lill $ 24 840 186 $ 9413332 $ 8646303 -UZ,ll8.Z,fiiZ $ 33 486 489
7
GOVERNMENT-WIDE FINANCIAL ANALYSIS - (Con tin u ed)
Governmental activities. Governmental activities increased the County's net assets by $3,734,099, thereby
accounting for 82.96% of the total growth in the net assets of the County. Key elements of this increase are as
follows:
• Sales tax revenue increased 1 9 . 1 1 % or $ 1 , 1 47,898 during the year. This increase was due to an
increase in the revenue base.
• Property taxes increased by $457,458 in comparison with 2005. This increase was attributable to the
increase in taxable assessed valuations of the County on the 2005 tax roll.
• Investment earnings for the County increased 75.66% or $443,224 due to an increase in the interest rate
earned on deposits at the County's depository bank.
Expenses and Program Revenues - Governmental Activities
---
��---- �--
-� . -�
-- -- --
l
--,
enses l1li P rog ram reven ues 1

-�. . _.
l1li. Exp
--
� ._- ._- -_.
.
--
1 6,000,000 ,-------,
14,000,000
1 2,000,000
1 0,000,000
8,000,000
6,000,000
4,000,000
2,000,000
General
government
Public safety Highways
and streets
C ulture and
recreation
Public health Interest
long�term
0
. "J.
debt
�--. --
. -- --_. .__ . �--
Revenues by Source - Governmental Activities
Other
4%
Sales taxes Charges for services

19% 28%
Operating grants and

contributions
9%
Property taxes --__---ca'p;tall grants and

40% contributions
<1%
8
GOVERNMENT-WIDE FINANCIAL ANALYSIS - (Continued)
Business-type activities. Business-type activities increased the County's net assets by $767,029, thereby
accounting for 1 7.04% of the total growth in the net assets of the County. Key elements of this increase are as
follows:
• The Airport Fund's charges for services increased 2 1 . 1 7% or $ 1 80,414 during the year. This increase
was mainly due to an increase in fuel sales of $1 65,444 or 1 9.06%.
• Capital grants in the Airport Fund were $ 1 ,483,028, which was a decrease of $290,283 or 16.37%.
Expenses and Program Revenues - Business-type Activities
I �=
E- p=
X= en=S�e-=S=-I111
--:"=p=r=-
o -=r=-
. g
�--: v-=
rn=r=e�en:-
' u=e=s:::;
J
I
. . . . .. .
3,500,000
3,000,000
2,500,000
2,000,000
1 ,500,000
1 ,000,000
I 500,000
1 _ _
-
Airport Navarro Project Commissary
Revenues by Source - Business-type Activities
Capital grants and

contributions
38%
1%
Operating grants
and contributions
2%
Charges for
S8IVices
59%
9
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Gover nmental funds. The focus of the County's governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the 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 the end of the current year, the County's governmental funds reported combined ending fund balances of
$14,368,752, an increase of $2,824,429 in comparison with the prior year. Of the total fund balance, $1 3,576,931
constitutes unreserved fund balance and is available for spending at the County's discretion. The remainder of
fund balance is reserved to indicate that it is not available for new spending because it has already been
committed 1 ) to pay debt service ($1 26,807), and 2) for a variety of other restricted purposes ($665,014).
General Fund. The General Fund is the chief operating fund of the County. At the end of the current year,
unreserved fund balance of the General Fund was $ 1 1 ,273,877, while total fund balance reached $ 1 1 ,938,89 1 .
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 44.55% of total General Fund
expenditures, while total fund balance represents 47. 1 8% of that same amount.
The fund balance of the County's General Fund increased by $3, 4 1 2, 538 during the current year, this increase is
due to certain revenues coming in higher than expected and expenditures coming in lower than expected.
Proprietary Funds. The County's proprietary funds provide the same type of information found · in the
government-wide financial statements, but in more detail.
Unrestricted net assets of proprietary funds at the end of the year amounted to:
2006 2005
Unrestri cted Unrestri cted
Fund Net Assets Net Assets
Airport $ 1 1 ,028 $ 275,264
Navarro Project (1 99,91 2) (370,999)
Commissary 61 ,363 80,009
Total $ ( 1 27,521) $ ( 1 5 ,726)
Other factors concerning the finances of these funds have been addressed in the discussion of the County's
business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget were relatively minor, resulting in an
increase of $3,327,503 and can be briefly summarized as follows:
• $ 1 ,889,473 in miscellaneous increases in general governmental activities, due to increases in utility costs,
additional capital outlay projects and increases in personnel.
• $628,278 in miscellaneous increases in public safety activities, due to vehicle purchases and jail repairs
and maintenance
• $ 1 1 ,595 in miscellaneous increases in culture and recreation activities, due to relocation of the office.
• $641,222 in miscellaneous increases in public health activities and transfers out, due to increases in
operating expenses.
• $ 1 56,935 in miscellaneous increases in capital outlay.
10
GENERAL FUND BUDGETARY HIGHLIGHTS - (Continued)
Of this increase, $491,723 was to be funded out of miscellaneous increases in tax revenues, intergovernmental
revenues, contributions and other miscellaneous revenues, The remaining $2,835,780 was to be funded from an
excess of revenues in the original budget.
CAPITAL ASSETS AN D DEBT ADMIN ISTRAT ION

Capital assets, The County's investment in capital assets for its governmental and business-type activities as of
December 3 1 , 2006, amounts to $34,681 ,986 (net of accumulated depreciation), This investment in capital
assets includes land, construction in progress, buildings, improvements, and machinery and equipment. The total
increase in the County's investment in capital assets for the current year was 2,71% (a 0,34% increase for
governmental activities and a 8.46% increase for business-type activities), The increase in business-type activity
capital assets was mainly due to ongoing improvements to the County's airport.
Count� of Victoria, Texas

Callital Assets
(Net of Depreciation)
Governmental Busines s-type

2006 2005 2006 2005 2006 2005
Land $ 1 ,376,758 $ 1 ,365,758 $ 1 49,433 $ 149,433 $ 1 ,526,191 $ 1 ,515,191

Construction in progress 463,71 7 463,717
Bu i ldings 1 1 , 933,673 12,136,461 1 ,000,550 1 , 1 1 3, 1 67 1 2,934,223 13,249,628
I m p rovements 6,339,214 6,658,1 1 6 9,361 ,139 8,407,938 1 5,700,353 15,066,054
Machinery and equipment 3,901,720 3,772,426 1 55,782 1 64,389 4,057,502 3,936,815
Total $ 24,015,082 $ 23,932,761 $ 10,666,904 $ 9,834,927 $ 34,681,986 $ 33,767,688
Additional information on the County's capital assets can be found in Note 5 of this report.
Long-term debt. At the end of the current year, the County had total bonded debt outstanding of $1 0,225,000,
Of this amount, $9,065,000 comprises debt backed by the full faith and credit of the government and $ 1 , 1 60,000
secured solely by specific revenue sources (i.e" revenue bonds),
Count� of Victoria, Texas

General Obligation and Revenue Bonds
2006 2005 2006 2005 2006 2005
Certificates of obligation $ 4,060,000 $ 4,385,000 $ $ $ 4,060,000 $ 4,385,000
General obligation bonds 5,005,000 5,945,000 5,005,000 5,945,000
Revenue bonds 1 , 1 60,000 1 ,235,000 1 ,1 60,000 1 ,235,000
Bond discount (3,252) (3,561) (3,252) (3,561 )
Total $ 9,065,000 $ 10,330,000 $ 1 , 1 56,748 $ 1 ,231 ,439 $ 10,221 ,748 $ 1 1 ,561 ,439
The County's total debt decreased by $1 ,340,000 ( 1 1 ,59%) during the current year, this was due to debt repayment.
The County maintains an "A+" rating from Standard & Poor's and an "AN rating from Fitch for general obligation
debt.
Additional information on the County's long-term debt can be found in Note 1 1 ,
11
Economic Factors and Next Year 's Budgets and Rates
The annual budget is developed to provide efficient, effective and controlled use of the County's resources, as
well as a means to accomplish the highest priority objectives. Through the budget, the Commissioners' Court sets
the direction of the County, allocates its resources and establishes its priorities.
The final 2007 budget was adopted by Commissioners' Court on September 1 8, 2006. The budget included cost
of living salary increases of 4%, 1 5 new positions, and 7 new vehicles for the Sheriff's department. The property
tax rate was set at $0.3986 (39.86 cents) per $ 1 00 assessed taxable valuation, which reflects no change from the
2006 tax rate. This tax rate is $0.0232 or 6 . 1 8% over the County's effective tax rate and the taxable valuation
increased by $257,634,258. Therefore, an increase in property tax revenues is expected for the 2007 year.
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, 1 1 5 N. Bridge,
Room 1 22, Victoria, Texas 7790 1 .
12
Basic Fi nancial Statements
COUNTY O F VICTORIA, TEXAS
STATEMENT OF NET ASSETS
December 31, 2006
Primary Government
Governmental Business-type Component

Activities Activities Total Units
ASSETS
Current assets
Cash and cash equivalents $ 1 5,748,430 $ 200,332 $ 1 5,948,762 $ 69,074,096
Cash and cash equivalents - restricted 904,849 904,849 2,355 , 1 58
Investments 1 39, 1 35 1 39, 1 35 8,942,661
Receivables (net) 1 6,279,809 1 8,445 1 6,298,254 1 4 , 1 87,278
I nternal balances 365,025 (365,025)
Due from other governments 1 , 3 1 2,636 667,029 1 , 979,665 95,648
Due from external parties 35,000 35,000
Inventory 39,774 39,774 1 ,885,662
Deposits 1 00,000
Deferred expenditures/expenses 275,91 3 275,9 1 3 458,475
Total current assets 34,921,662 699,690 35,62 1 , 352 97,098,978
Noncurrent assets
Capital assets
Land and other assets not being
depreciated 1 ,840,475 149,433 1 ,989,908 1 7,250,905
Buildings, improvements, and
equipment (net) 22,1 74,607 1 0, 5 1 7,471 32,692,078 65,222, 1 09
Issuance costs (net) 74,573 53,259 1 27,832 2,320,925
Restricted assets
Cash and cash equivalents 4,776,275
Investments 1 3,798,668
Total noncurrent assets 24,089,655 1 0,720, 1 63 34,809,8 1 8 1 03,368,882
Tota I assets 59,01 1 , 3 1 7 1 1 ,41 9,853 70,431 , 1 70 200,467,860
13
Primary Government
Governmental Business-type Component

LIABILITIES
Current liabilities
Accounts payable $ 692,759 $ 781,956 $ 1 ,474,715 $ 2,367,3 1 2
Accrued expenses 425,481 1 7,558 443,039 6,888,839
Accrued interest payable 1 29,995 22,562 1 52,557 732,936
Due to other governments 303, 1 23 303, 1 23 3,889,338
Claims payable 283,050 283,050
Unearned revenue 1 5, 924,074 1 5, 924,074 1 ,387,442
Accrued compensated absences 272,729 1 3,704 286,433
Current portion of long-term
obligations 1 , 806,802 75,000 1 ,881 ,802 2,780,000
Total current liabilities 1 9,838,01 3 91 0,780 20,748,793 1 8,045,867
Noncurrent liabilities
Noncurrent portion of long-term
obligations 1 0, 599, 0 1 9 1 , 095,741 1 1 ,694,760 37,735,000
Total noncurrent liabilities 1 0,599,0 1 9 1 ,095,741 1 1 ,694,760 37,735,000
Total liabilities 30,437,032 2,006,521 32,443,553 55,780,867
NET ASSETS
Invested in capital assets, net of
related debt 1 3,930,982 9,540,853 23,47 1 , 835 48,952,607
Restricted for:
Debt service 376,341 376,341 1 ,686,449
Other purposes 337,029 337,029
Unrestricted net assets 1 3,929,933 (127,521) 1 3,802,41 2 94,047,937
Total net assets $ 28,574, 285 $ 9,413,332 $ 37,987,61 7 $ 144,686,993
The accompanying notes are an integral part of this statement.
14
STATEMENT OF ACTIVITIES
Program Revenues
Operating Capital
Charges for G rants and Grants and
Function/Programs Expenses Services Contributions Contributions
Primary Government
Governmental activities
General government $ 1 4,575,456 $ 5,295,474 $ 1 ,079,506 $ 7,584
Public safety 1 0,942, 218 3,493,283 308,824
Highways and streets 4,141 ,588 1 ,744,465 204,616
Culture and recreation 1 , 340,356
Public health 3,860,870 444,626 1 ,81 7,660
Interest on long-term debt 390,875
Total governmental activities 35,25 1 , 363 1 0,977,848 3,4 1 0,606 7,584
Business-type activities
Airport 2,603,568 1 ,634,860 80,000 1 ,483,028
Navarro Project 51 2,537 543,9 1 7
Commissary 1 03,240 88, 1 06
Total business-type activities 3,21 9,345 2,266,883 80,000 1 ,483,028
Total primary government $ 38,470,708 $ 1 3,244,731 $ 3,490,606 $ 1 ,490,61 2
Component Units $ 1 07,061 , 3 1 7 $ 1 27,630,173 $ 64,454 $ 1 29,942
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
Gain (loss) on sale of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning, as restated
Net assets - ending
The accompanying notes are a n integral part of this statement.
15
Net (Expense) Revenue and
Changes in Net Assets
Primat}' Government
Business-
Governmental type Component
$ (8,1 92,892) $ $ (8,1 92,892) $

(7, 1 4 0, 1 1 1 ) (7, 1 40, 1 1 1 )
(2,1 92,507) (2,1 92,507)
( 1 , 340,356) ( 1 , 340,356)
(1 ,598,584) (1 ,598,584)
(390,875) (390,875)
(20,855, 325) (20,855,325)
594,320 594,320
31 ,380 31 ,380
(1 5 , 1 34) (1 5, 1 34)
61 0,566 61 0,566
(20,855,325) 610,566 (20,244,759)
20,763,252
1 4 , 1 74,865 1 4 , 1 74,865 1 , 1 75, 1 88

1 ,462,623 1 ,462,623 342,039
7,1 53,556 7,1 53,556
2 1 6 , 996 216,996
232, 1 54 232, 1 54
1 , 029,000 28,702 1 ,057,702 3,148,232
84,566 (2,239) 82,327
365,664 365,664 23,584
(130,000) 1 30,000
24,589,424 1 56,463 24,745,887 4,689,043
3,734,099 767,029 4,501 , 1 28 25,452,295
24,840 , 1 86 8,646,303 33,486,489 1 1 9,234,698
$ 28,574,285 $ 9,41 3,332 $ 37,987,61 7 $ 144,686,993
16
BALANCE SHEET
GO VERNMENTAL FUNDS
December 31, 2006
Other Total
Governmental Governmental
General Funds Funds
ASSETS
Current assets
Cash and cash equivalents - unrestricted $ 1 2, 1 44,5 1 7 $ 3,603,913 $ 15,748,430
Cash equivalents - restricted 904,849 904,849
Receivables (net) 1 3,350,930 2,848 , 1 55 16,1 99,085
Due from other governments 664,137 648,499 1 ,31 2,636
Due from other funds 629,268 418 629,686
Deferred expenditures 275,913 275 , 9 1 3
Advance to other funds 362,21 9 362 , 2 1 9
Total assets $ 28,331 ,833 $ 7 , 1 00,985 $ 35,432,818
LIABILITIES AND FUND BALANCES

Liabilities
Accounts payable $ 499,221 $ 1 46,203 $ 645,424
Accrued expenditures 309,807 1 1 5,674 425,481
Due to other funds 507,147 507 , 1 47
Due to other governments 303,123 303 , 1 23
Deferred revenue 1 5,280,791 3,902, 1 00 1 9, 1 82,891
Total liabilities 16,392,942 4,671 , 1 24 2 1 , 064,066
Fund balances
Reserved for:
Debt service 1 26,807 1 26,807
Advances 362,219 362, 219
Adult Probation 26,882 26,882
Deferred expenditures 275,913 275 , 9 1 3
Unreserved, undesignated reported in:
General fund 1 1 ,273,877 1 1 ,273,877
Special revenue funds 2,303,054 2,303,054
Total fund balances 1 1 ,938,891 2,429,861 1 4,368,752
Total liabilities and fund balances $ 28,331 ,833 $ 7 , 1 00,985 $ 35,432 , 8 1 8
17
COUNTY OF V ICTORIA, TEXAS
RECONCILIA T/ON OF TOTAL GOVERNMENTAL FUND BALANCE TO NET ASSETS
OF GOVERNMENTAL ACTIVITIES
December 31, 2006
Total governmental fund balances $ 1 4,368,752

Amounts reported for governmental activities in the statement of net assets are
different because;
The internal service fund is used by the County to charge the cost of health
insurance to individual funds. The assets and liabilities of the internal service fund
is included in governmental activities in the statement of net assets. (334,394)
Property taxes receivable will be collected this year, but are not available soon
enough to pay for the current period's expenditures, and therefore are deferred in
the funds. 1 , 397,917
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 ,860,900
Capital assets used in governmental activities are reported as expenditures in

governmental funds when purchased or constructed. The cost of these assets is
$44,885,853 and the accumulated depreciation is $20,870,771 . 24,01 5,082
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 $88,299. 74,573
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 $ ( 9,065,000)

Capital leases payable (2,623,678)
Rebatable arbitrage earnings (3,867)
Accrued interest on the bonds (1 29,995)
Compensated absences (986,005) (1 2,808,545)
Net assets of governmental activities $ 28,574,285
18
C OUNTY OF VICTORIA, TEXAS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Other Total
Governmental Governmental
General Funds Funds
REVEN UES
Taxes $ 1 9,622,950 $ 3,407,851 $ 23,030,801
Fees of office and user fees 1 , 869, 3 1 3 951 ,027 2,820,340
Intergovernmental 4,51 4,560 4,918,098 9,432,658
Fines and forfeitures 1 ,577,768 1 1 ,800 1 ,589,568
Investment income 802,829 226, 1 55 1 ,028,984
Licenses and permits 37,074 37,074
Contributions 5,884 7,505 1 3 , 389
Miscellaneous 766,629 44,696 8 1 1 , 325
Total revenues 29, 1 97,007 9,567, 1 32 38,764, 1 39
EXPENDITURES
Current
General government 1 3,224,666 1 ,696,402 1 4,921 ,068
Public safety 1 0,51 4,609 1 68 , 1 43 1 0,682,752
Highways and streets 4,327,674 4,327,674
Culture and recreation 1 ,293, 9 1 3 4,494 1 ,298,407
Public health 1 1 8,558 3,784,809 3,903,367
Capital outlay 1 55,250 1 55,250
Debt service
Principal retirement 1 , 265,000 1 , 265,000
I nterest and fiscal charges 377,923 377,923
Total expenditures 25,306,996 1 1 ,624,445 36,931,441
Excess (deficiency) of revenues

over expenditures 3,890,0 1 1 (2,057,313) 1 ,832,698
OTHER FINANCING SOURCES (USES)
Sale of assets 73,309 30,000 1 03,309
Capital lease proceeds 1 ,41 1 ,633 81 ,789 1 ,493,422
Transfers in 288,974 1 ,687,320 1 ,976,294
Transfers out (2,25 1 , 389) (329,905) (2, 581, 294)
Total other financing sources (uses) (477,473) 1 ,469,204 991 ,731
Change in fund balances 3,41 2,538 (588,1 09) 2,824,429

Fund balances at beginning of year 8,526,353 3,017,970 1 1 ,544,323
Fund balances at end of year $ 1 1 ,938,891 $ 2,429,861 $ 1 4,368,752
19
RECONCILfA TlON OF THE GOVERNMENTAL FUNDS STA TEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STA TEMENT OF ACTIVITIES
Total net change i n fund balances - gover nmental funds $ 2,824,429

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
with governmental activities. (75,1 46)
The net effect of various transactions involving capital assets (I.e., sales and
trade-ins) is to decrease net assets. (18,743)
Current year capital outlays are expenditures in the fund financial statements, but
they should be shown as increases in capital assets in the government-wide
financial statements. The net effect of removing the 2006 capital outlays is to
increase net assets. 1 ,780,677
Depreciation is not recognized as an expense on the governmental funds since it

does not require the use of current financial resources. The net effect of the
current year's depreciation is to decrease net assets. ( 1 , 679,613)
Capital lease proceeds provide current financial resources to governmental funds;
however, issuing debt increases long-term liabilities in the statement of net
assets. ( 1 , 493,422)
Current year payments on long-term debt are expenditures in the fund financial
statements, but they serve to reduce long-term liabilities in the government-wide
financial statements. In the current year, these amounts consist of:
Bond principal retirement $ 1 ,265,000
Capital lease principal retirement 800,534 2,065,534
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 (41 ,867)
Other revenues 308,608 266,741
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 76,594
Decrease in accrued interest 1 5,386
Decrease in issuance costs (28,338) 63,642
Change in net assets of gover nmental activities $ 3,734,099
20
C OUNTY OF VICTORIA, TEXAS
PROPRIETARY FUNDS
December 31, 2006
Business-ty�e Activities
Governmental
Activities-
Navarro Internal Service
Air�ort Proiect Commissary Total Fund
ASSETS
Current assets
Cash and cash equivalents $ 1 1 1 ,688 $ 2 1 , 563 $ 67,081 $ 200,332 $
Investments 1 39 , 1 35 1 39, 1 35
Receivables (net) 2,602 1 5,843 1 8,445 80,724
Due from other governments 667,029 667,029
Inventory 39,774 39,774
Total current assets 821 ,093 1 76,541 67,081 1 ,064,7 1 5 80,724
Noncurrent assets
Capital assets
depreciated 1 49,433 149,433
equipment (net) 7,643,397 2,859,628 1 4,446 1 0,51 7,471
Bond issue costs (net) 53,259 53,259
Total noncurrent assets 7,643,397 3,062,320 1 4,446 1 0,720, 1 63
Total assets 8,464,490 3,238,861 81 ,527 1 1 ,784,878 80,724
LIABILITIES
Current liabilities
Accounts payable 771 ,839 9,580 537 781 ,956 47,335
Accrued expenses 1 3,451 1 ,943 2,164 1 7,558
Accrued interest payable 22,562 22,562
Due to other funds 2 , 1 94 421 191 2,806 84,733
Advance from other funds 362,219 362,219
Claims payable 283,050
Accrued compensated absences 1 1 , 1 73 1 , 1 33 1 ,398 1 3,704
Current portion of bonds payable 75,000 75,000
Total current liabilities 798,657 472,858 4,290 1 ,275,805 4 1 5, 1 1 8
Accrued compensated absences 1 1 ,408 1 , 1 57 1 , 428 1 3,993
Bonds payable, net 1 ,081 ,748 1 ,081 ,748
Total noncu rrent liabilities 1 1 ,408 1 ,082,905 1 ,428 1 ,095,741
Total liabi liti es 81 0,065 1 , 555,763 5,7 1 8 2,371 ,546 4 1 5, 1 1 8
NET ASSETS
Invested in capital assets,
net of related debt 7,643,397 1 ,883,0 1 0 1 4,446 9,540,853
Unrestricted net assets 1 1 , 028 (199, 9 1 2) 61 ,363 (127,521) (334,394)
Total net assets $ 7,654,425 $ 1 ,683,098 $ 75,809 $ 9,413,332 $ (334,394)

21
COUNT Y OF VICT ORIA, T EXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
Business-t��e Activities
Governmental
Activities-
Navarro Internal Service
Aireort Project Commissary Total Fund
OPERATING REVEN UES
Charges for services $ 1 ,032,615 $ - $ 88, 1 06 $ 1 , 1 20,721 $ 2,21 7,945
Rents 600,295 543,91 7 1 , 144,2 1 2
Miscellaneous 1 ,950 1 ,950
Total operating revenues 1 ,634,860 543,917 88, 1 06 2,266,883 2,21 7,945
OPERATING EXPENSES
Airport operations 1 ,932,995 1 ,932,995
Commissary operations 99,069 99,069
Lease operations 21 3,534 21 3,534
Health services 2,768 , 1 07
Depreciation and amortization 670,573 227,241 4,171 901 ,985
Total operating expenses 2,603,568 440,775 1 03,240 3 , 1 47,583 2,768, 107
Operating income (loss) before

nonoperating revenues (expenses)
and contributions and transfers (968,708) 1 03,142 ( 1 5 , 1 34) (880,700) (550,162)
NONOPERATING REVEN UES
(EXPENSES)
Investment income
I nterest 14,116 7,371 4,335 25,822 16
Net increase (decrease) in the fair
value of investments 2,880 2,880
Gain (loss) on disposal of capital assets (2,239) (2,239)
Noncapital grants and contributions 80,000 80,000
I nterest and debt costs (7 1 ,762) (71 ,762)
Total nonoperating revenues
(expenses) 94, 1 1 6 (61 , 5 1 1 ) 2,096 34,701 16
Income (loss) before contributions

and transfers (874,592) 41 ,631 (13,038) (845,999) (550 , 1 46)
Contributions and transfers

Capital grants and contributions 1 ,483,028 1 ,483,028
Transfers in 1 30,000 1 30,000 475,000
Total contributions and transfers 1 ,61 3,028 1 ,61 3,028 475,000
Change in net assets 738,436 41 ,631 (1 3,038) 767,029 (75,146)

Total net assets at beginning of year,
as restated 6, 91 5,989 1 ,641 ,467 88,847 8,646,303 (259,248)
Total net assets at end of year $ 7,654,425 $ 1 ,683,098 $ 75,809 $ 9,41 3,332 $ (334,394)

22
STA TEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Business-tlee Activities
Governmental
Activities-
Navarro Internal
Aireort Project Commissa� Total Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 1 ,635,665 $ 528,074 $ 88,106 $ 2,251 ,845 $ 2,21 7,945
Cash paid to suppliers for goods and services (1 ,269,122) (144,098) (14,019) (1 ,427,239) (2,017,949)
Cash paid to employees for services (721 ,943) (68,868) (82,796) (873,607)
Net cash provided (used) by operating
activities . (355,400) 3 1 5, 1 08 (8,709) (49,001 ) 1 99,996
CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Borrowing (repayments) to other funds (143) 255 16 1 28 (675,012)
Transfers in from other funds 1 30,000 1 30,000 475,000
Net cas h provided (used) by noncapital
financing activities 1 29,857 255 16 1 30 , 1 28 (200,012)
CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Capital contributed by federal government 1 ,005,481 1 ,005,481
Acquisition and construction of capital assets (1 ,070,177) ( 1 57,1 67) (1 2,018) ( 1 , 239,362)
Principal paid on bonds (75,000) (75,000)
Interest paid (72,790) (72,790)
Net cash provided (used) by capital and

related financing activities (64, 696) (304,957) (1 2,018) (381,671)
CASH FLOWS FROM INVESTING ACTIVITIES

Investment income 14,116 7,371 4,335 25,822 16
Net cas h provided (used) by

investing activities 14,1 1 6 7,371 4,335 25,822 16
Net increase (decrease) in cash and cash

equivalents (276, 1 23) 17,777 (16,376) (274,722)
Cash and cash equivalents at beginning of year 387,81 1 3,786 83,457 475,054
Cash and cas h equivalents at end of year $ 1 1 1 ,688 $ 21 ,563 $ 67,081 $ 200,332 $
23
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Business-type Activities
Governmental
Activities
Navarro Internal
Airport Project Commissary Total Service Fund
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY OPERATING
ACTIVITIES
Operating income (loss) $ (968,708) $ 1 03,142 $ (1 5, 1 34) $ (880,700) $ (550,1 62)
Adjustments to reconcile operating income to

net cash provided by operating activities
Depreciation and amortization 670,573 227,241 4,171 901 ,985
Changes in assets and liabilities
(Increase) decrease in accounts receivable 805 (15,843) (1 5,038) 638,328
(Increase) decrease in inventory (20,463) (20,463)
Increase (decrease) in accounts payable (34,351 ) (1,516) (908) (36,775) 46,337
Increase (decrease) in accrued expenses (1 51 ) 1 ,256 1 , 169 2,274
Increase (decrease) in compensated absences (3,1 05) 828 1 ,993 (284)
Increase (decrease) in claims payable 65,493
Total adjustments 61 3,308 2 1 1 ,966 6,425 831 ,699 750,15 8
Net cas h provided (used) by

operating activities $ (355,400) $ 3 1 5, 1 08 ",$��(8;;c,7�0",,9) $ (49,001) ""$��1",99,*,9",,9,,,,6
NONCASH INVESTING ACTIVITIES

Increase in fair value of investments $ $ 2,880 �$�� $ 2,880 ;:c
$ ��
24
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2006
Private
Purpose Agency
Trust Funds
ASSETS
Cash and cash equivalents $ 59,843 $ 6,939, 140
Receivables (net)
Other 62,541
Due from other governments 3,604
Seized assets 43,078
Total assets 59,843 7,048,363
LIABILITIES
Liabilities
Accounts payable 1 2,899 3,879,373
Due to other funds 35,000
Due to other governments 3,1 68,990
Total liabilities 47,899 7,048,363
NET ASSETS
Unrestricted net assets $ 1 1 ,944 $
25
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
Private
Purpose
Trust
ADDITIONS
I nvestment income
Interest $ 1 , 1 34
Miscellaneous
Participants' contributions 1 29,4 1 1
Total additions 1 30,545
DEDUCTIONS
General government
Participants' withdrawals 1 30,300
Changes in net assets 245
Net assets - beginning 1 1 ,699
Net assets - ending $ 1 1 ,944
26
COU NTY OF VICTORIA, TEXAS
COMPONENT UNITS
December 31, 2006
Victoria Victoria
County County Citizens
Navigation Child Welfare Medical
District Board Center Total
ASSETS
Current assets
Cash and cash equivalents $ 7,812,243 $ 122,882 $ 6 1 , 1 38,971 $ 69,074,096
Cash and cash equivalents-restricted 2,355,158 2,355, 1 58
Investments 8,942,661 8,942,661
Receivables (net) 1 , 1 02,731 60 1 3, 084,487 1 4 , 1 87,278
Due from other governments 86,91 1 8,737 95,648
Supplies inventory 1 ,885,662 1 ,885,662
Deposits 1 00,000 1 00,000
Deferred expenditures/prepaid expenses 50 458,425 458,475
Total current assets 9,101 ,885 1 3 1 , 729 87,865,364 97,098,978
Noncurrent assets
Capital assets
depreciated 8,539,317 8,71 1 ,588 1 7,250,905
equipment (net) 3,249,896 61 ,972,213 65,222 , 1 09
Bond issue costs (net) 57,836 2,263,089 2,320,925
Restricted assets
Cash and cash equivalents 4,776,275 4,776,275
Investments 1 3,798,668 1 3,798,668
Total noncurrent assets 1 1 ,847,049 91 ,521 , 833 1 03,368,882
Total assets 20,948,934 1 3 1 ,729 1 79,387, 1 97 200,467,860

LIABILITIES
Current liabilities
Accounts payable 1 36,462 3,907 2,226,943 2,367,312
Accrued expenditures/expenses 235 6,888,604 6,888,839
Accrued interest payable 30,284 702,652 732,936
Due to other governments 3,889,338 3,889,338
Unearned revenue 1 ,387,442 1 ,387,442
Current portion of long-term obligations 270,000 2,51 0,000 2,780,000
Total current liabilities 1 ,824 , 1 88 4 , 1 42 1 6,21 7,537 1 8 , 045,867
Noncurrent portion of long-term obligations 2,210,000 35,525,000 37,735,000
Total noncurrent liabilities 2,21 0,000 35,525,000 37,735,000
Total liabilities 4,034 , 1 88 4,142 51 ,742,537 55,780,867
NET ASSETS
Invested in capital assets, net of related debt 9,336,765 39,61 5,842 48,952,607
Restricted for:
Debt service 289,038 1 ,397,41 1 1 ,686,449
Unrestricted net assets 7,288,943 1 27,587 86,631,407 94,047,937
Total net assets $ 1 6,914,746 $ 1 27,587 $ 1 27,644,660 $ 144,686,993

27
STA TEMENT OF ACTIVITIES
COMPONENT UNITS
Program Revenues
Operating Capital
Charges for Grants and Grants and
Function/Programs Expenses Services Contributions Contributions
Component Units
Victoria County Navigation District $ 1 , 528,038 $ 614,777 $ $
Victoria County Child Welfare Board 85,903 1 ,708 64,454
Citizens Medical Center 105,447,376 1 27,013,688 1 29,942
Total component units $ 1 07,061 ,317 $ 127,630,1 73 $ 64, 454 � 2 9"",9�4:::.

$ ��1",, 2
General revenues:
Taxes:
Property 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 Net Assets
Comeonent Units
Victoria County Victoria County Citizens
Navigation Child Welfare Medical
District Board Center Total
$ (91 3,261 ) $ $ $ (913, 261)

(1 9,741) (1 9,74 1 )
21 ,696,254 21 ,696,254
(913,261 ) (19,741) 21 ,696,254 20,763,252
1 , 1 75,188 1 , 1 75, 1 88
342,039 342,039
414,308 4,680 2,729,244 3,1 48,232
1 9,050 4,53 4 23,584
1 , 950,585 9,214 2,729,244 4,689,043
1 ,037,324 (10,527) 24,425,498 25,452,295
1 5,877,422 1 38, 1 14 1 03,219, 1 62 1 1 9,234,698
$ 1 6,914,746 $ 1 27,587 $ 1 27,644,660 $ 144,686,993
29
COU NTY O F VICTORIA, TEXAS
NOTES TO FINANCIAL STA TEMENTS
December 31, 2006
INDEX
Summary of Significant Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
2 Stewardship, Compliance and Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
3 Deposits and I nvestments . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
4 Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
5 Due from Other Governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
6 Capital Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
7 Lessor Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
8 Employees' Retirement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
9 Other Post Em ployment Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
10 Em ployees' Health Insurance Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
11 Deferred Compensation Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
12 Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
13 Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
14 Prior Year Defeasance of Debt .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 49
15 Interfund Receivables, Payables and Transfers . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................. 49
16 Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 50
17 Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
18 Adjustments to and Restatement of Beginning Balances . . . . . . . . ........... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
19 Subsequent Even!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
20 ViCtoria County Navigation District..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
21 Victoria County Child Welfare Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 56
22 Citizens Medical Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

" 57
30
NOTES TO FINANCIAL STA TEMENTS
December 31, 2006
NOTE 1 : SUMMARY OF SIGN I FICANT ACCOUNTING POLICIES
The County of Victoria, Texas (the "County") is a political subdivision of the State of Texas. The County is
governed by the Commissioners' Court, composed of four (4) County Commissioners and the County Judge,
all of whom are elected officials.
A. Reporting Entity
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 the Governmental Accounting Standards
Board (GASB) Statement No. 14, The Financial Reporting Entity, and as amended by GASB Statement
No. 39, Determining Whether Certain Organizations are Component Units. Under these g uidelines, the
reporting entity consists of the primary government (all funds of the County), organizations for which the
primary government is financially accountable, organizations for which the primary government is not
financially accountable, organizations that raise and hold economic resources for the direct benefit of
the primary government, and any other organization for which the nature and significance of their
relationship with the primary government is such that exclusion could cause the County's financial
statements to be misleading or incomplete. Entities other than the primary government that are
included 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 U nits
The component units column in the financial statements includes the financial data of the County's
three component units. They are reported in a separate column to emphasize that they are legally
separate from the County.
Victoria County Navigation District - Established to oversee and regulate the maintenance and
operations of the Victoria Barge Canal. The District is governed by a Board of Commissioners, each
member of which is appointed by the Comm issioners' Court of the County. The Commissioners' Court
of Victoria also reviews and approves its annual budget. This entity is considered a Governmental
Fund Type for the County's reporting purposes and uses the same fiscal year as the County.
Victoria County Child Welfare Board - Established to provide various child protective services to
residents of the County. The Comm issioners' 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 36B-bed acute care hospital owned by the County and established 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, 2006. The Medical Center is
reported as a Proprietary Fund Type in the accompanying financial statements.
31
NOTE 1 : SUMMARY O F 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 241
Victoria, Texas 77901
Victoria County Child Welfare Board

1 502 E. Airline Road
Citizens Medical Center

2701 Hospital Drive
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information on all nonfiduciary activities of the County and its component
units. For the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes, and intergovernmental revenues are
reported separately from business-type activities, which rely to a significant extent on fees and charges
for support. Likewise, the primary government is reported separately from its legally separate
component units.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1 ) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, discretely
presented component units, and fiduciary funds, even though the latter are excluded from the
government-wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in
the year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
32
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - (Continued)
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
The County considers property taxes as available if they are collected within 60 days after year-end. A
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 com pensated
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 the state and other third
parties at year-end on behalf of the County are also recognized as revenue. All other revenue items
are considered to be measurable and available only when cash is received by the County.
The 2006 tax levy is dedicated to pay for expenditures of the 2007 budget. The entire 2006 tax levy
has been recorded as deferred revenue as of December 31 , 2006.
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 to 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,
and/or 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, accounts for the operation of a large office
complex which was purchased and renovated by the County for the primary use of the County
Health Department. The building is also currently leasing space to other entities unrelated to the
County.
Additionally, the Cou nty 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.
33
NOTE 1 : SUMMARY OF SIGN IFICANT ACCOUNTING POLICIES · (Continued)
C, Measurement Focus, Basis of Accounting, and Financial Statement Presentation - (Continued)
The Private Purpose Trust Fund, or the Flexible Benefits Plan, is used to account for amounts
withheld from employee paychecks before FICA and withholding taxes are computed, All
resources of the fund, 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,
The Agency Funds account for resources held by the Cou nty as an agent for various
governments and individuals, These resources include ad valorem taxes collected and to be
distributed to other local governments, pass-through grants, various fines and fees to be
distributed to other governments , etc, The funds are excluded from the government-wide
financial statements,
The Special Revenue Funds account for the proceeds of specific revenue sources that are legally
restricted to expenditures for specified purposes,
The Debt Service Funds account for financial resources accumulated and payments made for
principal and interest on long-term general obligation debt of governmental funds,
The Capital Project Fund accounts for financial resources to be used for the acquisition or
construction of major capital facilities i.e, improvements to various County highways (other than
those financed by proprietary funds and trust 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 option of following subsequent private-sector guidance for their business-type activities and
enterprise funds, subject to this same limitation, The County has elected not to follow subsequent
private-sector guidance,
As a general rule the effect of interfund 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
connection with a proprietary fund's principal ongoing operations, The principal operating revenues of
the County's enterprise funds and internal service fund are charges to customers for sales and
services, Operating expenses for enterprise funds and internal service funds include the cost of sales
and services, administrative expenses, and depreciation on capital assets, All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses,
When both restricted and unrestricted resources are available for use, it is the County's policy to use
restricted resources first, then unrestricted resources as they are needed,
34
N OTE 1 : SUMMARY OF SIGN IFICANT ACCOUNTING POLICIES - (Continued)
D. Budgets and Budgetary Accounting
The County Judge is, by statute, the budget officer of the County. After being furnished budget guidelines
by the County Judge and Commissioners' Court, the County Auditor prepares an estimate of revenues
and a compilation of requested departmental expenditures. Department officials appear before the
County Judge and the County Auditor for departmental budget review. A proposed budget is prepared by
the County Auditor, then submitted to the Commissioners' Court. Before 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, some of the Special Revenue Funds and Debt Service Funds by
the first regular session of the Commissioners' Court in September. All budgets adopted by the County are
on the cash basis of accounting rather than in conformity with generally accepted accounting principles
(GAAP). Under the budgetary basis, revenues are recognized as collected and expenditures when paid.
When the budget has been adopted by the Commissioners' Court, the County Auditor is responsible for
monitoring expenditures to keep them from exceeding budgeted appropriations and for keeping the
mem bers of the Commissioners' Court advised of the condition of the various funds and accounts. The
level of control (the level on which expenditures may not exceed appropriations) for each legally adopted
annual operating budget is on a line-item basis. Any amendments above the 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 $2,456,945. Budget expenditure amendments in these funds netted an increase of
$4,690,588.
Encum brance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed by the County as an extension of formal budgetary integration. Encumbrances outstanding at
year-end are not reported as reservations of fund balances. All encumbered appropriations lapse at the
end of the fiscal year. Encumbered appropriations are reappropriated 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 short
term investments with original maturities of three months or less from the date of acquisition. Investments
for the County are reported at fair value.
The County may invest its excess funds 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: Obligations
of the United States or its agencies and instrumentalities; d irect 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 U nited 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 in the State of Texas which is guaranteed or insured by the 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' Court's investment policies.
35
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)
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. Receivables 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 to/from other funds" (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as "due to/from other funds". Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as "internal balances." Advances between funds, as reported in
the fund financial statements, are offset by a fund balance reserve account in applicable governmental
funds to indicate that they are not available for appropriation and are not expendable available financial
resources.
All trade and property tax receivables are shown net of an allowance for uncollectibles.
H. Inventory and Prepaid Items
Inventories of supplies held by the Airport Fund, an enterprise fund, are valued at the lower of cost
(first-in, first-out) or market. Estimated cost is used when actual cost figures are not available.
Certain payments to vendors reflect costs applicable to future accounting periods. These payments are
reported as deferred expenditures (governmental funds) or prepaid expenses (proprietary funds) in the
fund financial statements and as deferred expenditures/expenses in the government-wide statements.
I. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide statement of net assets. The County defines capital assets, other
than infrastructure assets, as assets with an initial, individual cost of more than $5,000 and an
estimated useful life in excess of one year. The County reports infrastructure assets on a system basis.
Accordingly, the amounts spent for the construction or acquisition of infrastructure assets are
capitalized and reported regardless of their amount. In the case of the initial capitalization of general
infrastructure assets, the County chose to include all such items acquired on or after January 1 , 2003.
The County will report 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 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. Interest incurred during the construction phase of capital
assets of business-type activities is capitalized when acquired with tax-exempt debt. The amount of
interest to 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.
36
NOTE 1 : SUMMARY O F SIGNIFICANT ACCOUNTING POLICIES · (Continued)
I. Capital Assets - (Continued)
Property, plant, and equipment of the primary government is depreciated using the straight line method
over the following estimated useful lives:
Assets Years
Buildings 1 0-50
Improvements other than buildings 1 0-50
Infrastructure 40
Machinery and equipment 5-1 5
Office equipment and fixtures 5-10
J. Compensated Absences
Vacation benefits are accrued by County employees according to guidelines set in the County's personnel
policy. This policy states that after completion of one year of service, each employee will thereafter
accrue vacation according to the number of years of continuous service. Upon termination of
employment, if the employee has completed one year of service, he or she will be paid for accrued but
unused vacation leave. The payment of unused vacation may not exceed 80 hours. All vacation is
accrued when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements.
Employees are credited with sick leave according to the number of years of continuous service. Sick days
may be accumulated up to a maximum of 60 working days (480 hours). County personnel policies state
that unused sick leave benefits will not be paid to employees upon termination, therefore, no sick leave
benefits are accrued.
K. Long-Term Obligations
In the government-wide financial statements, and in proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as 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 sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
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.
37
M. Restricted Net Assets
Net assets are reported as restricted when there are limitations imposed 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. U s e of Estimates
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 disclosure of contingent assets and liabilities at the date
of financial statements and the reported amounts of revenues and expenditures during the reporting
period. Accordingly, actual results could differ from those estimates.
NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Deficit Fund Equity
As of December 31 , 2006, the following funds had deficit equity balances:

Fund Balance/
Fund Net Assets
Nonmajor Governmental Funds
Special Revenue Funds
Health Department $ 56,194
Internal Service Fund
Employee Health Insurance 334,394
Steps will be taken to eliminate these deficits in the upcoming fiscal year.
B. Budgetary Compliance
Budgetary compliance is monitored at the line-item level in all budgeted governmental funds. For the year
ended December 31 , 2006, the County over-expended appropriations at the following line-item levels:
Department/Fund Amount
General Fund
County court at law #1
Fringe benefits $ 72
Salaries 473
Fringe benefits 284
Justice of the peace #4
Salaries 55
Election administrator
Salaries 1 ,230
County treasurer
Fringe benefits 549
38
NOTE 3: DEPOSITS AND INVESTMENTS
As of December 31 , 2006, the County had the following investments:

Weighted Average
Investment Type Fair Value Maturity (Months)
U,S, Government Securities $ 1 39, 1 35 55
Money Market Funds 91 2,322 N/A
Total $ 1 ,051 .457
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 do 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
It is the County's policy to limit its investments to those with ratings of not less than A or its equivalent. The
County's investments in the U,S, Government Securities had AAA ratings from both Standard & Poor's and
Moody and Fitch,
Concentration of Credit Risk
The County's investment policy requires that the investment portfolio shall bEl diversified in terms of
investment instruments, maturity scheduling, and financial institutions to reduce the risk of loss resulting from
over concentration of assets in a specific class of investments, specific maturity or specific user, At year-end,
the County was not exposed to concentration of credit risk,
Custodial Credit Risk - Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the County's deposits may not be
returned to it. The County's investment policy requires that deposits at financial institutions be insured by the
Federal Deposit Insurance Corporation ("FDIC") and/or collateralized by securities pledged to the County by the
depository in an amount equal to at least 1 1 0% of the carrying value of deposits held, As of
December 31 , 2006, $20,717,135 of the County's bank balance of $23,095,948 was exposed to custodial credit
risk because it was uninsured and collateralized with securities held by the County's depository,
Custodial Credit Risk - Investments
For an investment, this is the risk that, 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 31 , 2006, and for the year then ended, the County was not exposed to any custodial credit risk,
Please see Notes 20, 21 and 22 for discussions relative to the cash deposits of the County's three component
units,
39
NOTE 4: RECEIVABLES
Receivables at December 31 , 2006 for the County's individual major funds and nonmajor, internal service, and
fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts are as follows:
Nonmajor
Navarro and Other
General Airport Project Funds Total
Gross receivables
Ad valorem taxes $ 1 0, 554,834 $ $ $ 2,977,971 $ 1 3,532,805
Sales taxes 1 ,351 ,712 1 , 351 ,712
Fines 6,1 75,609 6,1 75,609
Other 38,044 2,602 1 5,843 1 62,350 21 8,839
Total gross receivables 1 8, 1 20,199 2,602 1 5,843 3,140,321 21 ,278,965
Less: allowances 4,769,269 148,901 4,91 8 , 1 70
Total net receivables $ 1 3,350,930 $ 2,602 $ 1 5,843 $ 2,991 ,420 $ 1 6,360,795
The only receivables not expected to be collected within one year are $382,154 of fines receivable reported in
the General Fund.
The County's governmental 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 funds also defer
revenue recogn ition in connection with resources that have been received, but not yet earned. At the end of the
current fiscal year, the various components of deferred revenue and unearned revenue reported in the
governmental funds were as follows:
Unavailable Unearned Total
General Fund
Ad valorem taxes receivable $ 1 , 1 48,383 $ 1 2,271 ,508 $ 1 3,41 9,891
Fines receivable 1 ,860,900 1 , 860,900
Nonmajor Funds
Ad valorem taxes receivable 249,534 3,650,861 3,900,395
Grants 1,705 1 ,705
$ 3,258,81 7 lI> 1 5,924,074 $ 1 9,1 82,891
Property taxes attach as an enforceable lien on property as of January 1 . Taxes are levied on October 1 and
payable by the following January 3 1 , which comprises the collection dates for the current tax roll. The County of
Victoria Tax Assessor-Collector bills and collects its own property taxes.
The County is permitted by State Statute to levy taxes up to $.80 per $100 of assessed valuation. The
combined tax rate for the budgetary year ended December 31 , 2006 was $.3986 per $100, which means the
County has a tax margin of $.4014 per $100.
NOTE 5: DUE FROM OTHER GOVERNMENTS
Various funds of the County reported amounts due from other governments as of the end of the current year.
These amounts are comprised of the following at December 31 , 2006:
Nonmajor
and Other
General Airport Funds Total
Contract reimbursements $ 588,565 $ $ 3,604 $ 592,169
Federal and state grants 22, 1 54 667,029 648,499 1 ,337,682
Alcohol and bingo taxes 53,41 8 53,418
$ 664, 1 37 $ 667,029 $ 652,103 $1 ,983,269
40
NOTE 6: CAPITAL ASSETS
The County's capital asset activity for the year ended December 31 , 2006, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Capital assets, not being depreciated
Land $ 1 ,365,758 $ 1 1 ,000 $ $ 1 ,376,758
Construction in progress 463,71 7 463,71 7
Total capital assets not being depreciated 1 ,365,758 474,7 1 7 1 ,840,475
Capital assets, being depreciated

Machinery and equipment 1 0,380,345 887,527 1 96,384 1 1 ,071 ,488
Buildings 1 8,61 0,550 144,250 1 8,754,800
I mprovements 1 2,944,907 274, 1 83 1 3,21 9,090
Total capital assets being depreciated 41,935,802 1 ,305,960 1 96,384 43,045,378
Less accumulated depreciation for

Machinery and equipment 6,607,919 739,490 1 77,641 7, 1 69,768
Buildings 6,474,089 347,038 6,821 , 1 27
Im provements 6,286,791 593,085 6,879,876
Total accumulated depreciation 1 9,368,799 1 ,679,61 3 1 77,641 20,870,771
Total capital assets being depreciated, net 22,567,003 (373,653) 1 8, 743 22,1 74,607
Govenmental activities capital assets, net $ 23,932,761 $ 10 1 ,064 $ 1 8,743 $ 24,015,082
Land $ 1 49,433 $ $ 1 49,433
Total capital assets not being depreciated 149,433 1 49,433

Machinery and equipment 644,507 49,749 1 5,893 678,363
Buildings 2,642,790 2,642,790
Improvements 1 3,925,459 1 ,682 , 1 71 1 5,607,630
Total capital assets being depreciated 1 7,21 2,756 1 , 731 ,920 1 5,893 1 8,928,783

Machinery and equipment 480, 1 1 8 55, 1 1 7 1 2,654 522,581
Buildings 1 , 529,623 1 1 2,61 7 1 ,642,240
Improvements 5,51 7,521 728,970 6,246,491
Total accumulated depreciation 7,527,262 896,704 1 2,654 8,41 1 ,31 2
Total capital assets being depreciated, net 9,685,494 835,2 1 6 3,239 1 0,51 7,471
Business-type activites capital assets, net $ 9,834,927 $ 835,216 $ 3,239 $ 1 0,666,904
41
NOTE 6: CAPITAL ASSETS - (Continued)
Depreciation expense was charged to functions/programs of the County as follows:
General government $ 510,527
Public safety 705,457
Highways and streets 338,764
Culture and recreation 51 ,507
Public health 73,358
Total depreciation expense - governmental activities $ 1 679,613
Bus iness-type activities
Airport $ 670,573
Comm issary 4,1 71
Navarro project 221 ,960
Total depreciation expense - business-type activities :I> 896,704
NOTE 7: LESSOR AGREEM ENTS
The Airport Fund, a major enterprise fund, leases land and buildings to various unrelated third parties.
Approximately 25 percent of the Airport Fund's capital assets are used to operate the Airport activities. The
total cost of the buildings is $ 1 ,275,31 7 and the carrying value is $1 80,068. The total cost of the
improvements to the land and buildings is $1 2,509, 1 87 and the carrying value is $7,334,485. Accumulated
depreciation on all assets in the Airport Fund is $6,269,951 . Following is an analysis of minimum future
rentals due the Airport Fund under noncancelable lease agreements as of December 3 1 , 2006:
Year Ending
December 31
2007 $ 231,741
2008 166,653
2009 1 57,008
201 0 134,397
201 1 105,321
795,120
Thereafter 789,242
$1 584 362
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 Health 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 $820,484. The total cost of the im provements to the building leased is $3,065,580 and the carrying
value is $ 1 , 993,794. Accumulated depreciation on all leased assets in the Navarro Project Fund is
$1 ,61 8,775. Following is an analysis of minimum future rentals due the Navarro Project Fund under
noncancelable lease agreements as of December 3 1 , 2006:
Year Ending
December 31
2007 $ 233,014
2008 233,014
2009 184,693
201 0 79,272
201 1 1 8,941
$ 748 934
42
NOTE 8: EMPLOYEES' RETIREMENT PLAN
The County provides retirement, disability, and death benefits for all of its full-time employees through a
nontraditional defined benefit pension plan in the statewide Texas County and District Retirement System
(TCDRS). The Board of Trustees of TCDRS is responsible for the administration of the statewide agent
m ultiple-employer public employee retirement system consisting of 559 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 written request from the TCDRS Board of Trustees at P. O. Box 2034,
Austin , Texas 78768-2034.
The plan provisions are adopted by the governing body of the em ployer, 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 accumulated
contributions in the plan to receive any employer-financed benefit. Mem bers can withdraw contributions in a
lump sum via partial payments, however, these mem bers are not entitled to any amounts contributed by their
employer.
Benefit amounts are determined by the sum of the em ployee's contributions to the plan, with interest, and
employer-financed monetary credits. The level of these monetary credits is adopted by the governing body of
the employer within the actuarial constraints im posed by the TCDRS Act so that the resulting benefits can be
expected to be adequately financed by the employer's commitment to contribute. At retirement, death, or
disability, the benefit is calculated by converting the sum of the employee's accumulated contributions and the
em ployer-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) plan provisions of the
TCDRS Act. The plan is funded by monthly contributions from both employee members and the employer
based on the covered payroll of em ployee members. Under the TCDRS Act, the contribution rate of the
em ployer is actuarially determined annually. It was 1 0.81% for calendar year 2006. The deposit rate
payable by the em ployee 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 31, 2006, the annual pension cost for the TCDRS
plan for its employees was $2,049,854 and the actual contributions were $2,049,854.
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 31 , 2005, the basis for determining the contribution rate for calendar
year 2006. The December 31 , 2005 actuarial valuation is the most recent valuation.
43
NOTE 8: EMPLOYEES' RETIREMENT PLAN - (Continued)
C. Actuarial Valuation and Trend Information
Actuarial Valuation Information

1 2/31/03 12/31 /04 1 2/31 /05
Actuarial cost method entry age entry age entry age
Amortization method level percentage level percentage level percentage
of payroll, open of payroll, open of payroll, open
Amortization period in years 20 20 20
Asset valuation method long-term long-term long-term
appreciation appreciation appreciation
with adjustment with adjustment with adjustment
Assumptions:
Investment return (1) 8.00% 8.00% 8.00%
Projected salary increases (1) 5.5% 5.5% 5.3%
Inflation 3.5% 3.5% 3.5%
Cost of living adjustments 0.0% 0.0% 0.0%
(1) includes inflation at the stated rate
Trend Information for the Retirement Plan for the

Employees of the County of Victoria, Texas
Fiscal Annual Percentage Net
Year Ending Pension of APC Pension
December 31 Cost (APC) Contributed Obligation
2004 $1 ,61 6,953 100% $
2005 1 ,948,643 100%
2006 2,049,854 1 00%
Schedule of Funding Progress for the Retirement Plan

for the Employees of the County of Victoria, Texas
UAAL as a
Actuarial Actuarial Actuarial Unfunded Annual Percentage
Valuation Value of Accrued AAL Funded Covered of Covered
Date Assets Liability (AAL) (UAAL) Ratio Payroll(1) Payroll
(a) (b) (b-a) (alb) (c) ((b-a)/c)
1 2/31103 $39,1 91 , 1 92 $ 47,917, 1 36 $8,725,944 81 .79% $ 1 7,297,132 50.45%
1 2/31 104 41 ,978,518 51 ,297,495 9,31 8,977 81 .83% 1 7,709,859 52.62%
1 2/31 /05 45,1 09,402 54,091,682 8,982,280 83.39% 1 7,71 5,357 50.70%
(1) The annual covered payroll is based o n the employee contributions received b y TCDRS for the year
ending with the valuation date.
44
NOTE 9: OTHER POST EMPLOYMENT BENEFITS
I n addition to providing pension benefits, the County provides its retirees with post employment health care
benefits. In order for a County employee to be eligible for this benefit, their age combined with their years of
service must equal seventy-five (75), or they must have attained the age of sixty (60) and with 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 regardless of age provided they worked for
Victoria County for twenty (20) or more years. If the retiree worked less than twenty (20) years for Victoria
County the County will pay 40% of the premium cost. The County also pays 1 0% of the premium cost for
dependents who may be covered under the retiree's health insurance plan.
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 54 and 50 retirees and active
employees for the years 2006 and 2005, respectively, is not separated. Total payments to the Employee
Health Insurance Fund by retirees were $ 1 47,390 in 2006 and $ 1 6 1 , 369 in 2005.
NOTE 1 0 : EMPLOYEES' HEALTH INSURANCE FUND
The County maintains a self-insurance internal service fund designed to pay comprehensive health benefits
incurred by its participants. The fund assumes all risk up to $85,000 of claims per participant annually; after
this a reinsurance policy pays any 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 em ployee 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 County's health plan administrator.
As of December 3 1 , 2006, the fund had estimated liabilities for outstanding claims of $283,050. There was a
deficit unrestricted net assets of $334,394 as of December 3 1 , 2006, a decrease of $75, 1 46 from 2005.
Below is a reconciliation of claims liabilities reported in the Employee's Health Insurance Fund for the years
noted:
Payable Payable
Year 1/1 Incurred Paid 12/31
1 997 $1 93,602 $2,045,794 $41 ,908,828 $330,568
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 ,937,285 339,5 1 9
2001 339,5 1 9 2,617,446 2,2 1 1 ,485 745,480
2002 745,480 1 ,546, 8 1 3 1 ,9 1 3,502 378,791
2003 378,791 1 ,635,920 1 ,742,013 272,698
2004 272,698 1 ,663,809 1 ,3 1 5,452 621,055
2005 621 ,055 1 ,548, 1 1 2 1 ,951 ,610 21 7,557
2005 21 7,557 2,969,408 2,903,9 1 5 283,050
The above schedule reflects only those claims for which the County was liable. Information on claims paid by
the insurance carrier under the reinsurance policy was not available. Settled claims resulting from insured
risks have not exceeded insurance coverage in any of the past three fiscal years.
45
NOTE 1 1 : DEFERRED COMPENSATION PLAN
The County offers its em ployees a deferred compensation plan created in accordance with I nternal Revenue
Code section 457. The plan, available to ali County employees, permits them to defer a portion of their salary
until future years. Except in specified circumstances, the deferred compensation is not available to employees
until termination, retirement, death, or unforeseeable emergency.
During 1 998, the County transferred plan assets to an independent trust for the exclusive benefit of the
participants and their beneficiaries.
NOTE 1 2 : RISK MANAGEMENT
The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The County purchased commercial
insurance to cover risks associated with potential claims in 2006. 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 , 2006, was as follows:
Beginning Ending Due Within

Balance Additions Reductions Balance One Year
Bonds and certificates payable

Certificates of obligation $ 4,385,000 $ $ 325,000 $ 4,060,000 $ 340,000
General obligation bonds 5,945,000 940,000 5,005,000 960,000
Total bonds payable 1 0,330,000 1 ,265,000 9,065,000 1 ,300,000
Capital leases payable 1 ,930,790 1 ,493,422 800,534 2,623,678 506,802

Compensated absences 1 ,062,599 1 ,363,039 1 ,439,633 986,005 272,729
Arbitrage earnings payable 3,867 3,867
Total governmental activity
long-term liabilities $ 1 3,327.256 $ 2,856.461 $ 3,505,1 67 $ 1 2,678,550 $2,079,531
Bonds
Revenue bonds $ 1 ,235,000 $ $ 75,000 $ 1 , 1 60,000 $ 75,000
Less: issuance discount 3,561 309 3,252
Total bonds payable 1 ,231 ,439 74,691 1 , 1 56,748 75,000
Com pensated absences 27,981 54,829 55,1 1 3 27,697 1 3,704
Total business-type activity
long-term liabilities $ 1,259,420 3> 54,829 3> 1 29,804 3> 1 ,1 84,445 3> 88,704
For the governmental activities, compensated absences are generally liquidated by the General Fund.
46
NOTE 13: LONG-TERM DEBT - (Continued)
B. General Obligation Certificates and Bonds
Long-term liabilities at December 31 , 2006 are comprised of the following issues:
$2,590,000 2003 Limited Tax Refunding (Jail) Bonds due in annual

installments ranging from $430,000 to $455,000 through 2009; interest varying
between 2.0% and 3.0%. $ 1 ,325,000
$775,000 2003 Unlim ited Tax Refunding (Road) Bonds due in annual
installments ranging from $ 1 30,000 to $1 50,000 through 2009; interest varying
between 2.0% and 3.0%. 425,000
$1 ,650,000 1 998 Unlimited Tax (Road) Bonds due in annual installments
ranging from $1 50,000 to $205,000 through 201 3; interests varying between
4.5% and 4.75%. 1 ,235,000
$2,700,000 1 998 Limited Tax (Courthouse Restoration) Bonds due in annual
installments ranging from $250,000 to $335,000 through 201 3; interest varying
between 4.1 % and 4.4%. 2,020,000
$5,000,000 2001 Certificates of Obligation (Bridge Street Annex) due in annual
installments ranging from $340,000 to $485,000 through 201 6; interest varying
between 3.55% and 4.5%. 4,060,000
Total general obligation debt $ 9,065,000
Year Ending Governmental Activities

December 31 PrinciQal Interest Total
2007 $ 1 , 300,000 $334,31 9 $ 1 ,634,3 1 9
2008 1 ,360,000 290,4 1 8 1 ,650,418
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 2-20 1 6 3,280,000 301 ,041 3,581,041
$ 9,065,000 U,528,666 $ 1 0,593,666
C. CaQital Leases
Capital leases payable at December 31 , 2006 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 1995, was refinanced in
2004 for $2,351 ,458. It bears interest at a rate of 5.69% and requires monthly
installments of $41 ,626. $ 1 ,478,973
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. 980,043
47
NOTE 13: LONG-TERM DEBT - (Continued)
C. Capital Leases - (Continued)
Lease purchase agreement on a vibratory roller used by Precinct #1 . The

original amount of the lease, entered into in 2006, was $81 ,789. The lease is
payable in three annual installments of $28,530 and bears interest at a rate of
4.72%. $ 53,259
Lease purchase agreement on seven 2006 four-door sedans used by the

Sheriff's Department. The original amount of the lease, entered into in 2006,
was $ 1 71 ,079. The lease is payable in three annual installments of $59,676 and
bears interest at a rate of 4.72%. 1 1 1 ,403
Total capital leases $ 2,623,678
The present value of the capital leases after deduction of imputed interest i s $2,623,678.
Year Ending Governmental Activities

December 31 Principal Interest Total
2007 $ 506,802 $ 80,920 $ 587,722
2008 760,01 7 1 0 1 ,61 5 861 ,632
2009 71 8,899 54,526 773,425
201 0 375,396 23,393 398,789
201 1 262,564 1 1 ,343 273,907
$ 2,623,678 $ 271.797 $ 2,895.475
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 $75,000 to
$1 40,000 through 201 7; interest rate varying between 5.35% and 6.00%. $ 1,1 60,000
Total revenue bonds $ 1,1 60,000
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending Busines-type Activities

December 31 Principal Interest Total
2007 $ 75,000 $ 65,678 $ 1 40,678
2008 80,000 61 ,452 1 41 ,452
2009 85,000 56,874 1 4 1 ,874
201 0 90,000 51 ,928 141 ,928
201 1 1 00,000 46,465 1 46,465
201 2-20 1 6 590,000 1 34,895 724,895
201 7 1 40,000 4,200 1 44,200
3> 1,160,QQO $ 421 .492 !L1. 581 ,492
48
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 3 1 , 2006, $ 1 , 775,000 of bonds outstanding is considered defeased.
NOTE 1 5: INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
A. Interfund Receivables and Payables
At times during the fiscal year the various funds of the County were involved in transactions that created
interfund receivable and payable balances. These transactions related to such things as the purchase of
goods by one fund on behalf of another and the receipt of revenue in one fund that belongs to or is
designated for another fund. 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 31 , 1 998 through December 31 , 2006. 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.
B. Interfund Receivables and Payables
Interfund receivable and payable balances as of December 31 , 2006, were as follows:
Due to/from other funds:
Receivable Fund Payable Fund Amount

General Nonmajor Governmental
Disaster Relief $ 88,859
Health Department 1 44,71 6
W.I.C. Program 21 7,61 3
Other Nonmajor Governmental 55,541
Airport 2, 1 94
Navarro Project 421
Commissary 191
I nternal Service 84,733
Private Purpose Trust 35,000
CDA Victims Assistance
Grant Nonmajor Governmental
CDA Processing Fee 418
Total $ 629,686
Advances from/to other funds:
Receivable Fund Payable Fund Amount
General Navarro Project $ 362,21 9

Total $ 362,219
49
NOTE 1 5: INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS - (Continued)
C. Interfund Transfers
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
Transfers Out General Governmental Airport Service Total
General $ $ 1 ,646,389 $ 1 30,000 $ 475,000 $ 2,25 1 , 389

Nonmajor Governmental 288,974 40,931 329,905
$ 288,974 $ 1 ,687,320 $ 1 30,000 $ 475,000 $ 2,581 ,294
NOTE 16: RELATED PARTY TRANSACTIONS
During fiscal year 2006, the County's General Fund entered into transactions with the Victoria County
Navigation District and the Victoria County Child Welfare Board, discretely presented component units of the
County, whereby the Navigation District contributed to the primary government a total of $8,400 for services
of the County and the County contributed to the Board $58,500 for operational purposes.
NOTE 1 7 : CONTINGENCIES
The County is exposed to the risk of contingent liabilities in the ordinary course of its operations. Specifically,
such risks arise as a result of the County's participation 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 3 1 , 2006, the County was involved in various matters of litigation. It is the opinion of the
County's legal counsel that any exposure faced by the County as a result of these matters was minimal.
Furthermore, any losses incurred would in all probability be covered by liability insurance carried by the County.
Based on the above information, the accompanying financial statements do not reflect any accrual for contingent
liabilities as of the end of the current fiscal year.
NOTE 1 8: ADJUSTMENTS TO AND RESTATEMENTS OF BEGINNING BALANCES
A. Proprietary Fund Net Assets
The beginning net asset balance of the Airport Fund, a major enterprise fund, was adjusted for the
following: To capitalize assets not previously recorded in the amount of $233,210; to record accumulated
depreciation on capitalized assets not previously recorded in the amount of ($6,002); and to remove
capitalized assets incorrectly recorded in the amount of ($1 49,766). Management estimates that these
adjustments would have decreased the previously reported change in net assets of the Airport Fund by
$6,002 for the year ended December 3 1 , 2005.
50
NOTE 18: ADJUSTMENTS TO AND RESTATEMENTS OF BEGINNING BALANCES · (Continued)
B. Government-wide Net Assets
The beginning governmental activities net assets in the government-wide financial statements was
adjusted for the following: To properly reflect the capital assets, net of accumulated depreciation, at
December 3 1 , 2005 in the amount of ($1 24,725); and to record penalty and interest receivable on
outstanding property taxes in the amount of $255,739.
Net assets of the business-type activities were adjusted as described in A. above. Management
estimates that the changes described above to the governmental activities of the County would have
increased the previously reported change in net assets by $3,191 for the year ended December 3 1 ,
2005.
NOTE 1 9 : SUBSEQUENT EVENT
There were no events, which occurred subsequent to the fiscal year-end and prior to the issuance of this report,
which would have a material effect on the County's financial position as of December 31 , 2006.
NOTE 20: VICTORIA COUNTY NAVIGATION DISTRICT
As described in Note 1 , the Victoria County Navigation District is a component unit of the County. It is reported
in a separate column to emphasize that it is legally separate for accounting purposes from the County.
Following are note disclosures relating to this component unit.
A. Organization
Victoria County Navigation District (the "District") was created by a vote of the electorate of Victoria
County, Texas, at an election held on February 4, 1 947, under the provisions of Article 8263(h) VAT.S.
(now codified into Chapter 62, Texas Water Code). The Board of Navigation and the Canal
Commissioners (the "Board") is the level of government which has oversight responsibility and control
over all activities related to the District's activities in the County.
Board members are appointed by the Commissioners' Court of the County and have decision-making
authority, the power to designate management, the responsibility to significantly influence operations, and
primary accountability for fiscal matters including taxing authority.
B. Summary of Significant Accounting Policies
The accounting and reporting policies of the District conform to GAAP, as applicable to governmental
units. For inclusion in this report, the District's operations are reported in a single Governmental Fund
Type.
C. Deposits and Investments
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 for investments to less than
five years from the time of purchase. Specifically, investments of operating funds must have stated
final maturities of three years or less and investments in capital project funds must have stated final
maturities that do not exceed the expected completion date of the project for which the bonds were
sold.
51
NOTE 20: VICTORIA COUNTY NAVIGATION DISTRICT - (Continued)
C. Deposits and Investments - (Continued)
Credit Risk
It is the District's policy to limit its investments to those with ratings of not less tllan A or its equivalent.
The District's investments in the U.S. Government Securities had AAA ratings from both Standard &
Poor's and Moody and Fitch.
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.
Custodial Credit Risk - Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the District's deposits may not
be returned to it. The District's investment policy requires that deposits at financial institutions be
insured by the Federal Deposit Insurance Corporation ("FDIC") and/or collateralized by securities
pledged to the District by the depository in an amount equal to at least 1 1 0% of the carrying value of
deposits held. As of December 31 , 2006, $8,296,929 of the District's bank balance of $8,496,929 was
exposed to custodial credit risk because it was uninsured and collateralized with securities held by the
District's depository in other than the District's name.
Custodial Credit Risk - I nvestments
For an investment, this is the risk that, in the event of the failure of the counterparty, the District will not
be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. The District's investment policy requires that securities be held in the name of the District
or held on behalf of the District and that all securities are purchased using the delivery versus payment
method. As of December 31 , 2006, and for the year then ended, the District was not exposed to any
custodial credit risk.
D. Receivables
Receivables at December 3 1 , 2006 consist of the following:

Debt
General Service Total
Gross receivables:
Accounts $ 31 ,620 $ $ 31 ,620
Ad valorem taxes 956,465 1 70,863 1 , 1 27,328
Other 1 50 1 50
Total gross receivables 988,235 1 70,863 1 , 1 59,098
Less: allowances 47,824 8,543 56,367
Total net receivables $ 940 41 1 � 1 62 320 $ 1 1 02 731
52
D. Receivables - (Continued)
The District's governmental 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
funds also defer revenue recognition in connection with resources that have been received, but not yet
earned.
At the end of the current fiscal year, the various components of deferred revenue and unearned
revenue reported in the governmental funds were as follows:
Unavailable Unearned Total

General Fund
Ad valorem taxes receivable $ 68,309 $ 1 , 1 92,784 $ 1 ,261 ,093
Debt Service Fund
Ad valorem taxes receivable 24,648 1 94,658 21 9,306
$ 92,957 :l1 1 ,387,442 :l1 1 ,480,399
The District's ad valorem property tax is levied each October 1 on the assessed value listed as of the
prior January 1 for all real and business personal property located in the District. Taxes are delinquent
by February 1 following the October 1 levy date. A statutory lien becomes effective on all property with
unpaid taxes as of January 1 of the year following the assessment.
E. Due From Other Governments
At December 31 , 2006, the Victoria County Tax Assessor and Collector held tax receipts that had been
collected for, but not yet rem itted to, the District. These amounts are reported as due from other
governments in the government-wide and fund financial statements.
F. Deposit on Land Acquisition
The District entered into a contract to purchase land and as a condition of the purchase subm itted an
earnest money deposit of $1 00,000. The deposit is reported on the Statement of Net Assets as a
current asset as of December 31 , 2006. For a more detailed explanation of the transaction see the
subsequent events footnote.
53
G. Capital Assets
The District's capital asset activity for the year ended December 31 , 2006 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Land $ 8,539,31 7 $ $ $ 8,539,31 7
Total capital assets, not being depreciated 8,539,317 8,539,3 1 7

Im provements 7,280,050 614,358 7,894,408
M.P.R.R. Main Line Bridge 1 ,493,134 1 ,493,1 34
Equipment 6,2 1 5 2,601 8,81 6
Total capital assets, being depreciated 8,779,399 61 6,959 9,396,358

Im provements 4,747, 1 86 255,689 5,002,875
M.P.R.R. Main Line Bridge 1 , 1 1 1 ,065 27,677 1 , 1 38,742
Equipment 3,4 1 8 1 ,427 4,845
Total accumulated depreciation 5,86 1 , 669 284,793 6,1 46,462
Total capital assets being depreciated, net 2,91 7,730 332 , 1 66 3,249,896
Governmental activities capital assets, net $ 1 1 ,457,047 $ 332 , 1 66 $ $ 1 1 ,789,21 3
Depreciation expense of $284,793 was charged to the general government function/program in 2006.
H. Long-Term Debt
The following is a summary of general obligation bond transactions for the year ended
December 31 , 2006 for governmental activities:
Bonds payable at January 1 , 2006 $ 2,745,000

Additions
Retirements (265,000)
Bonds payable at December 3 1 , 2006 $ 2.480,000
Bonds payable at December 3 1 , 2006 is comprised of the following issue:
2003 General Obligation refunding bonds due in annual

installments of various amounts beginning in 2005 through
February 1 5, 201 4; interest rate varies based on year of
maturity and ranges from 3.0% to 3.75%. $ 2.480,000
54
H, Long-Term Debt - (Continued)
Annual debt service requirements to maturity for the general obligation bonds are as follows:
Maturities PrinciQal Interest Total

2007 $ 270,000 $ 76,706 $ 346,706
2008 285,000 68,381 353,381
2009 295,000 59,681 354,681
201 0 305,000 50,881 355,881
201 1 310,000 41 ,263 351 ,263
201 2-201 4 1 ,01 5,000 56,784 1 ,071 ,784
Total $ 2,480,000 $ 353,696 $ 2,833,696
In 2004, the District issued $2,860,000 of General Obligation Refunding Bonds with interest rates
varying from 3,0% to 3,75% to currently refund the District's General Obligation Bonds, Series 1 994
with interest rates varying from 5,0% to 7,0% and to provide funding for costs of issuance, As a result,
the Series 1 994 bonds are considered defeased and the liabilities have been removed from the
governmental activities column on the statement of net assets, The 1 994 Series that was refunded has
$2,405,000 of bonds outstanding at December 31 , 2006,
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 om issions; injuries to em ployees; and natural disasters, The District purchased
commercial insurance to cover risks associated with potential claims during fiscal year 2006, 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,
J, Subsequent Events
In 2007, the District created the Victoria County Port Facilities Corporation ("PFC"), a local government,
nonprofit corporation, pursuant to Subchapter D of Chapter 431, Texas Transportation Code, and
Chapter 394, Texas Local Government Code, for the purpose of aiding and acting on behalf of the
District in the performance of its governmental purpose, The PFC will promote the common good and
general welfare of the District through the operation and/or development of the Port of Victoria and the
Port's waterways and the provision of aid to navigation and navigation related commerce at the Port
and on the waterways, Prior to the creation of the PFC, the District entered into an earnest money
contract for the purchase of 1 ,800+ acres of property, inclusive of an appurtenant water rights permit,
from certain heirs of Tom O'Connor, Jr, The District assigned its interest in the earnest money contract
to the PFC, On March 22, 2007, the PFC purchased the 1 , 800+ acres and water rights permit form the
O'Connor heirs for $5,616,900, On that same date, the PFC entered into a 20-year ground lease with
the District, which paid the PFC the 20-year lease in advance, in an amount totaling $3,278,900, In
addition, the PFC sold any and all rights of the water permit to the District for $2,338,000, The District
immediately sold the consumptive rights associated with the water rights permit to the City of Victoria
for $2,338,000, while retaining the non-consumptive rights granted by the permit.
The 1 ,800+acres will be developed and managed by the PFC and the District as an industrial park,
Infrastructure, including the dock facilities and additional rail facilities, will be developed on the property,
and acreage within the industrial park will be sold or leased,
55
NOTE 2 1 : 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 em phasize that it is legally separate for accounting purposes
from the County. Following are note disclosures relating to this component unit:
2006 2005
Insured by FDIC $ 1 23,466 $ 1 32,933
Amount of Board's deposits uncollateralized
by financial institutions
Total $ 1 23.466 $ 1 32,933
A. Organization
The Board was established by the Comm issioners' Court of Victoria County, Texas on August 8, 1 938.
The Board is a countywide, jointly financed, state-administered program of child protection to meet the
needs of abused, neglected and abandoned children, and children with special needs. The board
mem bers 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 Victoria County, Texas under the guidelines established by
GASB Statement No. 14.
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.
C. Deposits and Investments
The Board has deposits that are held by one financial institution within Victoria County, Texas. At
Decem ber 31 , 2006 and 2005, the carrying amount of the Board's deposits was $1 22,782 and
$ 1 32 , 634, respectively. The bank balances were $1 23,466 and $ 1 32,933, respectively. The deposits
are collateralized by FDIC coverage as follows:
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 Federal Deposit Insurance Corporation or secured by
obligations having a market value of at least the prinCipal amount of the certificates; and
6. fully collateralized direct repurchase agreements.

As of December 31, 2006, the Board held $1 1 4,499 invested in FDIC insured certificates of deposit.
The Board held no other investments during the current fiscal year.
56
NOTE 2 1 : VICTORIA COUNTY CHILD WELFARE BOARD · (Continued)
D. Federal Title IV-E Reimbursement Program
The Federal Title IV-E Program, whereby the federal government reimburses the Board for monies
spent on childcare and general support costs during the year, began in 1 997. The amount reimbursed
to the Board is determined based on a calculation made by the federal government. As of
December 31 , 2006, $8,737 was receivable pertaining to the Title IV-E Reimbursement Program.
E. Retirement Plan
The Board set up a retirement plan during 1 999 for their employees. Employees who are reasonably
expected to receive at least $5,000 in compensation for the calendar year and employees who have
received at least $5,000 in compensation during any one calendar year preceding the current calendar
year are eligible to participate in the plan. Em ployees may contribute up to $6,000 of their annual salary.
The Board matches up to three percent of an employee's annual salary. For the years ended
December 31 , 2006 and 2005, the Board made contributions of $1 ,01 7 and $916, respectively, on behalf
of its employees.
F. Budgetarv Legal Compliance
For the fiscal year ended December 31 , 2006, the Board complied with budgetary restrictions except as
follows:
Fund Variance
General Fund
Bank charges $ 1 28
Payroll taxes 326
Retirement contributions 118
Cell phone and pager 93
Medical care 1 58
Foster parent support
and recruitment 4, 1 24
NOTE 22: 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. Organization
Citizens Medical Center (the "Medical Center") is a 368-bed acute care hospital that is a component unit
of the County of Victoria, Texas. 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 the Victoria County and surrounding
areas. The financial statements of the Medical Center also include accounts of the Citizens Medical
Center Foundation (the "Foundation"). The Foundation was established to foster, support and
encourage the activities and purposes of the Medical Center, and to advance its objectives, including
sponsorship of, and assistance to, the Medical Center.
57
NOTE 22: CITIZENS MEDICAL CENTER - (Continued)
The financial statements of the 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
Medical Center first applies restricted net assets when an expense or outlay is incurred for purposes for
which both restricted and unrestricted net assets are available.
The Medical Center prepares its financial statements as a business-type activity in conformity with
applicable pronouncements of the Governmental Accounting Standards Board (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 i n
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 Equivalents
The Medical Center considers all liquid investments, with original maturities of three months or less, to be
cash equivalents. At June 30, 2006, cash equivalents consisted primarily of money market mutual funds.
Risk Management
The Medical Center is exposed to various risks of loss from torts; theft of, damage to and destruction of
assets; business interruption; errors and omissions; employee injuries and illnesses; natural disasters;
em ployee disability; and employee health, dental and accident benefits. Commercial insurance
coverage is purchased for claims arising from such matters other than those related to general and
professional liability, employee health care benefits, 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, em ployee 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 the ultimate costs for both reported claims and
claims incurred but not yet reported.
Investments in Debt Securities
Investments in debt securities are carried at fair value which is determined using quoted market prices.
Investment income includes dividend and interest income, realized gains and losses on investments
carried at other than fair value, and the net change for the year in the fair value of investments carried
at fair value.
58
B. Sum mary of Significant Accounting Policies - (Continued)
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 im provements 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 to 25 years

Buildings, building improvements and fixed equipment 3 to 50 years
Major movable equipment 3 to 25 years
Net Assets
Net assets of the Medical Center are classified in three components. Net assets invested in capital
assets, net of related debt, consist of capital assets, net of accumulated depreciation, and reduced by
the current balances of any outstanding borrowings used to finance the purchase or construction of
those assets. Restricted expendable net assets are noncapital assets that must be used for a particular
purpose, as specified by creditors, grantors, or donors external to the Medical Center, including
amounts deposited with trustees as required by revenue bond indentures, reduced by the outstanding
balances of any related borrowings. Unrestricted net assets are remaining net assets less remaining
liabilities that do not meet the definition of invested in capital assets, net of related debt, or restricted
expendable.
Net Patient Service Revenue
The Medical Center has agreements with third-party payers that provide for payments to the Medical
Center at amounts different from its established rates. Net patient service revenue is reported at the
estimated net realizable amounts from patients, third-party payers and others for services rendered and
includes estimated retroactive revenue adjustments and a provision for uncollectible accounts.
Retroactive adjustments are considered in the recognition of revenue accrued on an estimated basis in
the period the related services are rendered and such estimated amounts are revised in future periods
as adjustments become known.
Deferred Financing Costs
Deferred financing costs represent costs incurred in connection with the issuance of long-term debt.
Such costs are being amortized over the term of the bond issues using the straight-line method. The
unamortized amount of deferred financing costs is included in other assets on the balance sheet.
59
B. Summary of Significant Accounting Policies - (Continued)
Charity Care
The Medical Center provides care without charge or at amounts less than its established rates to
patients meeting certain criteria under its charity care policy. Because the Medical Center does not
pursue collection of amounts determined to 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.
Estimated Professional 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.
Compensated Absences
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 liabilities 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.
Patient Accounts Receivable
The Medical Center reports patient accounts receivable for services rendered at net realizable amounts
from third-party payers, patients and others. The Medical Center provides an allowance for doubtful
accounts based upon a review of outstanding receivables, historical collection information and eXisting
economic conditions. As a service to the patient, the Medical Center bills third-party payers directly and
bills the patient when the patient's liability is determ ined. 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.
Reclassifications
Certain reclassifications have been made to the 2005 financial statements to conform to the 2006
financial statement presentation. The reclassifications had no effect on the results of operations.
60
NOTE 22: CITIZENS MEDICAL CENTER · (Continued)
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
I npatient acute care, skilled nursing, and substantially all outpatient services rendered to Medicare
program beneficiaries are paid at prospectively determined rates. These rates vary according to a
patient classification system that is based on clinical, diagnostic, acuity and other factors. The Medical
Center is reimbursed for certain services at tentative rates with final settlement determined after
submission of annual cost reports by the Medical Center and audits thereof by the Medicare fiscal
intermediary. The Medicare fiscal intermediary has audited the Medical Center's cost reports through
June 30, 2004.
Medicaid
I npatient services are paid under a prospective payment system. Outpatient services rendered to
Medicaid program beneficiaries are primarily reimbursed based on a cost reimbursement methodology.
The Medical Center is reimbursed for certain services at a tentative rate with final settlement
determined after subm ission of annual cost reports by the Medical Center and audits thereof by the
Medicaid fiscal intermediary.
Approximately 44% of net patient service revenues are from participation in the Medicare and state
sponsored Medicaid programs for the year ended June 30, 2006. Laws and regulations governing the
Medicare and Medicaid programs are complex and subject to interpretation and change. As a result, it
is reasonably possible that recorded estimates will change materially in the near term.
The Medical Center has also entered into payment agreements with certain commercial insurance
carriers, health maintenance organizations, and preferred provider organizations. The basis for
payment to the Medical Center under these agreements includes prospectively determined rates per
discharge, discounts from established charges and prospectively determined daily rates.
I n 2006, net patient service revenue includes approximately $6,546,000 of funds received through the
Medicaid Upper Payment Limit program.
D. Accounts Receivable
The Medical Center grants credit without collateral to its patients, many of whom are area residents and
are insured under third-party payer agreements. Patient accounts receivable at June 30, 2006,
consisted of these amounts:
Patients and their insurance carriers $ 3 1 , 088, 1 34

Medicare 5,108, 1 63
Med icaid 289,858
36,486 , 1 55
Less allowance for uncollectible amounts 23,401 ,668
$ 1 3,084.487
61
E. Capital Assets
Capital asset activity for the year ended J u ne 30, 2006 was as follows:
Balance Balance
June 30, 2005 Additions Transfers Disposals June 30, 2006
Land and land improvements $ 5,596,851 $ $ $ $ 5,596,851

fixed equipment 86,977,394 285,338 291 ,398 87,554,1 30
Major moveable equipment 77,557,560 2,235,608 2,549,492 82,342,660
Construction in progress 549,695 5,405,932 (2,840,890) 3, 1 1 4,737
1 70,681 ,500 7,926,878 1 78,608,378
Less accumulated depreciation
Land improvements 1 , 41 1 ,71 0 55,41 4 1 ,467, 1 24
Building, improvements, and
fixed equipment 37,229,572 2,62 1 , 772 39,851 ,344
Major moveable equipment 62,003,380 4,602,729 66,606,109
1 00,644,662 7,279,91 5 1 07,924,577
Capital assets, net $ 70,036,838 $ 646,963 $ $ $ 70,683,801
F. Deposits, I nvestments and Investment 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 collateralization of all deposits with federal depository insurance; bonds and other
obligations of the U.S. Treasury, U.S. agencies or instrumentalities of the State of Texas; bonds of any
city, county, school district or special road district of the State of Texas; bonds of any state; or a surety
bond having an aggregate value at least equal to the amount of the deposits.
At June 30, 2006, $ 21 4,499 of the Medical Center's bank balance of $60,674,034 was exposed to
custodial credit risk as follows:
Uninsured and uncollateralized $ 21 4,499

Uninsured and collateral held by pledging financial
institution's trust department or agent in other
than the Medical Center's name. 60,459,534
$60,674,033
62
F. Deposits, Investments and Investment Income - (Continued)
Investments
The Medical Center's internally designated investments are made by the Victoria County Treasurer and
either held by the county or bank trust departments in the County's name. In accordance with the
Medical Center's investment policy, these investments are in either money market mutual funds or
government obligations.
At June 30, 2006, the Medical Center had the following investments and maturities:
Maturities in Years
Less
Type Fair Value Than 1 1 -5 6-1 0
U.S. agencies obligations $ 24,579,501 $ 8,942,661 $1 5,636,840 $
Money market mutual funds 5,028,384 5,028,384
29,607,885 1 3,971 ,045 1 5,636,840
Accrued investment income 264,877 264,877
$ 29,872,Z62 $1A,235,922 $1 5,636,840 $
• 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 m aturities 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.
• Credit Risk - Credit risk is the risk that the issuer or other counterparty to an investment will not
fulfill its obligations. At June 30, 2006, the Medical Center's investments not directly guaranteed by
the U.S. government were rated as follows:
Investment Moody's S&P Fitch
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, 2006, individual investments that exceeded 5%
of the total fair value of all investments are shown below.
2006
Percent
Investment Fair Value of Total
Federal Home Loan Mortgage Corporation, July 6, 2006 $ 1 ,999,300 6.58

Federal Home Loan Bank, August 1 8 , 2006 3,984,840 1 3. 1 2
Federal Home Loan Mortgage Corporation, August 27, 2007 1 ,587,104 5.23
Federal National Mortgage Association, September 28, 2007 3,41 1 ,205 1 1 .23
Federal National Mortgage Association, October 29, 2007 1 ,975,005 6.50
Federal Home Loan Bank, December 28, 2007 2,073,267 6.83
Federal National Mortgage Association, January 1 5, 2009 2,036,871 6.71
$ 1 7,067,592 56.20
63
NOTE 22: CITIZENS MEDICAL CENTER (Continued) -
F. Deposits, Investments and Investment Income - (Continued)
Summary of Carrying Values
The carrying values of deposits and investments at June 30, 2006 are as follows:
Carrying value
Deposits $ 61 , 1 38,971
Investments 29,872,762
$ 9 1 ,01 1 ,733
Included in the following balance sheet captions
Cash and cash equ ivalents $ 6 1 , 1 38,971
Restricted cash and cash equivalents - current 2,355, 1 58
Restricted cash and cash equivalents - noncurrent 4,776,275
Other long-term investments - current 8,942,661
Other long-term investments - noncurrent 1 3,798,668
$ 91 ,01 1,733
Investment Income
Investment income consists of the following:

Interest and dividends $ 3,1 73,259
Unrealized loss on investments (444,01 5)
�,729,244
G. Long-term Obligations
The following is a summary of long-term obligation transactions for the Medical Center for the year
ended June 30, 2006:
Balance Balance Current
June 30, 2005 Additions Deductions June 30, 2006 Portion
Long-term debt
Series 1 994 Bonds (A) $ 20,855,000 $ $ (1,330,000) $ 1 9,525, 000 $ 1 , 535,000
Series 1 999 Bonds (B) 1 8,440,000 (930,000) 1 7,51 0,000 975,000
Total long-term debt 39,295,000 (2,260,000) 37,035,000 2,51 0,000
Other long-term liabilities
Self-insured
professional liability 21 0,000 790,000 1 ,000,000
Total long-term liabilities $ 39,505,000 $ 790,000 $(2,260,000) $ 38,035,000 $ 2,51 0,000
64
G. Long-term Obligations - (Continued)
(A) Due January 1 , 201 6; principal payable annually 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.
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
and capital acquisitions in the balance sheets. The Revenue Bond I ndentures also place limits on the
incurrence of additional borrowings and require that the Medical Center satisfy certain m easures of
financial performance as long as the bonds are outstanding.
The debt service requirements as of June 30, 2006, are as follows:
Years Ending June 30, Total PrinciQal Interest

2007 $ 4,61 7,939 $ 2,51 0,000 $ 2, 1 07,939
2008 4,51 2,601 2,545,000 1 ,967,601
2009 4,651 ,036 2,835,000 1 ,81 6,036
201 0 4,639,598 2,990,000 1 ,649,598
201 1 4,541,033 3,01 0,000 1 ,531,033
201 2-201 6 22,733,523 1 7,980,000 4,753,523
201 7-2021 5,743,325 5,1 65,000 578,325
$ 51 ,439,055 $ 37,035,000 $ 14.404,055
During 2006, the Medical Center paid $1, 645,000 of the 1 994 bonds prior to their scheduled maturity at
a price of 1 02% of the par amount of the bonds.
H. Derivative Instruments
Objective of the Derivative Instruments
The Medical Center's asseUliability strategy is to have a mixture of fixed and variable-rate debt to take
advantage of market fluctuations. As a strategy to maintain acceptable levels of exposure to the risk of
changes in future cash flows due to interest rate fluctuations and to lower its borrowing costs when
compared against fixed-rate debt at the time of issuance, the Medical Center entered into six separate
total return swap agreements and one fixed pay interest rate swap agreement related to its Series 1 994
revenue bonds. The total return swap agreements effectively changed 1 00 percent of the Series 1 994
revenue bonds to a variable interest rate obligation. The fixed pay swap agreement effectively
converted $ 1 0,000,000, or approximately 50 percent of the Series 1 994 debt, back to a fixed rate of
3.05 percent, which is lower than the original effective fixed interest rate of the 1 994 bonds.
65
NOTE 22: CITIZENS MEDICAL CENTER - (Cont i n u ed )
H. Derivative Instruments - (Continued)
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 I nterbank Offering Rate (LiBOR) and will pay interest to the
counterparty at a fixed rate of 3.05 percent on an amortizing notional amount of $1 0,000,000.
Under the total return swap agreements, the Medical Center will pay interest equal to the BMA Index plus
24 basis points, and will receive interest at rates ranging from 6.00 percent to 6.25 percent on an
amortizing notional amount, initially $20,855,000. The Medical Center will pay an additional amount to the
counterparty of $208,550 on January 1 , 2007. 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 amount of the total return swap and the principal amount of the associated debt were
equal at inception of the swap. Each swap agreement expires prior to the payment of a corresponding
amount of principal on the Series 1 994 bonds. The fixed pay swap's notional amount was not directly
associated to any portion of the Series 1 994 bonds. Under the agreement, the Medical Center pays or
receives the net interest amount monthly, with the monthly settlements included in interest expense.
Fair Value
As of June 30, 2006, the agreements had an aggregate fair value of $23,914 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 com pared 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 yield 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 m arket 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 total return base price
(103 percent of the bonds par value) at June 30, 2006, compared to the fair market value of the
Series 1 994 bonds based on current traded value. The fair value of the total return swap agreements
includes the 1 percent premium payments due on January 1 , 2007.
The premium payment due January 1 , 2007, that totals $208,550, is recorded as a liability on the
Medical Center's balance sheet. The remaining fair value of the agreement is not recognized in the
financial statements.
Interest Rate Risk
The total return swaps increase the Medical Center's exposure to interest rate risk. As the BMA index
increases, the Medical Center's net payments on the total return swaps increase.
66
H. Derivative Instruments - (Continued)
Credit Risk
The swaps' fair values represent the Medical Center's credit exposure to the counterparty as of
June 30, 2006. Should the counterparty to this transaction fail to perform according to the terms of the
swap agreements, the Medical Center has a maximum possible loss equivalent to the swaps' fair value
at that date. As of June 30, 2006, the Medical Center was not 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, Inc., as of June 30, 2006.
Basis Risk
The swaps expose the Medical Center to basis risk should the relationship between UBOR and BMA
rats 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 at the time of termination, the Medical
Center would be liable to the counterparty for a payment equal to the swap's then fair value. Either
party may terminate any or all of the total return swaps with advance written notice.
Rollover Risk
The Medical Center is exposed to rollover risk on many of the total return swaps, which mature or may
be terminated prior to the maturity of the Series 1 994 revenue bonds. When these swaps terminate, or
in the case of the termination option, if the counterparty exercises its option, the Medical Center will not
realize the synthetic rate offered by the total return swaps on the bonds. In addition, the Medical Center
will be subject to disproportionate interest rate risk subsequent to the latest total return swap maturity
(at latest November 2 , 201 1 , unless earlier terminated by the counterparty) as it is obligated to pay fixed
rates on the remaining outstanding bonds and will also pay fixed rates and receive variable rates on the
interest rate swap through January 201 6.
Swap Payments and Associated Debt
Using rates as of June 30, 2006, 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 forth in the table
shown below. As rates vary, net swap payments will vary.
Series 1 994 Bonds

I nterest Rate
Princi[Jal Interest Swat>, Net Total
2007 $ 1 , 53 5,000 $ 1 , 1 64,999 $ (312,1 75) $ 2 , 38 7, 824
2008 1 , 525 ,000 1 , 072,436 (274,451) 2,322,985
2009 1 , 76 5 ,000 971 , 87 1 (232,242) 2,504,629
201 0 1 , 86 5 ,000 860,003 (2 1 5,668) 2,509,335
201 1 1 ,82 5 ,000 802, 1 88 (21 5,668) 2,41 1 , 520
201 2-2026 1 1 ,01 0,000 2,1 46,563 141,876 1 3,298,439
$ 1 9 525 000 $ 7 0 1 8, 060 $ 11, 1 08 328) $ 25.434 732
67
I. Self-insured Claims
The Medical Center partially self-insures the cost for its general and professional liabil ity, em ployee
health care benefits, and workers' compensation. The Texas Tort Claims Act limits the Medical Center's
general and professional liability to $1 00,000 per claim and $300,000 per occurrence, with no annual
aggregate. The Medical Center purchases annual stop-loss insurance coverage for all em ployee health
care benefits and workers' compensation claims. Stop-loss coverage began at $300,000 for workers
compensation claims in 2006. Stop-loss coverage for em ployee health claims began at $ 450,000
during 2006.
Losses from asserted and unasserted claims identified under the Medical Center's incident reporting
system are accrued based on estimates that incorporate the Medical Center's past experience, as well
as other considerations, including the nature of each claim or incident and relevant trend factors.
Management believes that the funds designated by the Medical Center related to self-insured general
and professional liability and the accrued liabilities for all self-insured claims are sufficient to cover any
losses it may incur. It is reasonably possible that the Medical Center's estimate of losses will change
by a material amount in the near term.
Activity in the Medical Center's self-insured claims liabil ity accounts during 2006 and 2005 are
summarized as follows:
2006
Employee General and
Health Care Workers' Professiona I
Benefits Compensation Liability
Balance, beginning of year $ 2,242 , 1 90 $ 685,628 $ 21 0,000
Current year claims incurred
and changes in estimates for
claims incurred in prior years 3,998,073 366,442 790,000
Claim and expenses paid, net (5, 1 94,734) (354,539)
Balance, end of year $ 1 ,045,i22B 697,531 $ 1 ,000,000
2005
Employee General and
Health Care Workers' Professional
Benefits Com pensation Liability
Balance, beginning of year $ 1 ,029,106 $ 766,770 $ 210,000
Current year claims incurred
and changes in estimates for
claims incurred in prior years 8,490,823 329,696
Claim and expenses paid, net (7,277, 739) (410,838)
Balance, end of year $ 2,242,1 90 $ 685,628 $ 21 0,000
68
J. Charity Care
In support of its mission, the Medical Center voluntarily provides free care to patients who lack financial
resources and are deemed to be medically indigent. Because the Medical Center does not pursue
collection of amounts determined to qualify as charity care, they are not reported 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 uncom pensated charges, the Medical Center also commits significant time and resources
to endeavors and critical services which meet otherwise unfilled community needs. Many of these
activities are sponsored with the knowledge that they will not be self-supporting or financially viable.
Such programs include health screening and assessments, prenatal education and care, community
educational services and various support groups.
K. Related Party Transactions
The County maintains custody of the Medical Center's operating cash accounts and is responsible for
obtaining appropriate collateralization of such accounts. The County issues debt on behalf of the
Medical Center and invests the unadvanced proceeds. The investment income attributable to deposits
of the 1 994 and 1 999 bond funds, net of amounts capitalized, are included in nonoperating income.
L. Pension 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 that covers eligible
employees. The Plan is administered by HealthShare/THA, a wholly owned subsidiary of the Texas
Hospital Association. The Plan's assets are invested as a portion of the total HealthShare/THA
investment trust fund. Amendments to the Plan are made only with the authority of the Board of· the
Medical Center. The Plan does not issue a stand-alone financial report. However, an annual actuarial
valuation report is available from the Medical Center or HealthShare/THA. That report may be obtained
by writing HealthShare/THA at P.O. Box 1 5587, Austin, Texas 78761 -5587.
All Medical Center employees who work 20 or more hours per week for at least 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 em ployees 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 lim its.
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 3.0 percent to 4.5 percent in 2006 of
their prior Plan year compensation. The Medical Center makes contributions at an actuarially
determined amount, which equaled 6 percent of participant-covered compensation for 2006 and is
expected to be 5.7 percent of participant-covered compensation for 2007. The costs of administering
the Plan are paid by the Plan and are considered in the determination of the employer contribution rate.
69
L. Pension Plan - (Continued)
Annual Pension Cost
For the fiscal year ended June 30, 2006, the Medical Center's Annual Pension Cost (APC) was
$ 1 , 597,392, which was equal to the Medical Center's annual contributions.
The required contributions for 2006 were determined based on the results of actuarial valuations as of
March 1 , 2006, 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 actuarial valuation of Plan assets was determined using a five-year
adjusted market value method.
Trend Information
Annual Pension Percentage of APC Net Pension
Year Ended Cost (APC) Contributed Obligation (Asset)
2006 $ 1 , 597,392 1 1 4% $ (446,673)
2005 1 ,31 0,604 88% (225,315)
2004 1 , 1 24,907 1 37% (378,819)
There was no separately determined unfounded actuarial accrued liability and no amortization period at
the March 1 , 2006 valuation date due to the actuarial cost method being used.
M. Designated Net Assets
At June 30, 2006 and 2005, unrestricted net assets have been designated by the Medical Center's
Board of Directors for the following purposes:
2006 2005
Capital acquisitions $ 22,488,795 $ 22,650,492
Self-insured professional liability 837,365 826,702
Self-insured health care 314,499 300,362
Designated net assets remain under the control of the Board of Directors, which may at its d iscretion
later use these net assets for other purposes.
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.
70
Requ ired Supplementary Information
MAJOR GOVERNMENTAL 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 $ 1 7, 583,950 $ 1 7,921 ,031 $ 1 9,449,91 9 $ (1 73,031 ) $ 1 9,622,950
Fees of office and user fees 1 ,576,350 1 , 576,350 1 , 868,725 (588) 1 ,869,31 3
Intergovernmental 4,300, 1 00 4,447,624 4,425, 1 1 5 (89,445) 4,51 4,560
Fines and forfeitures 1 , 360,500 1 , 360,500 1 ,543,81 9 (33,949) 1 , 577,768
Investment income
Interest 200,000 200,000 807,628 4,799 802,829
Licenses and permits 38, 1 00 38,1 00 36,065 (1 ,009) 37,074
Contributions 400 2,000 5,884 5,884
Miscellaneous 729,762 735,280 760,805 (5,824) 766,629
Total revenues 25,789 , 1 62 26,280,885 28,897,960 (299,047) 29,1 97,007
EXPENDITURES
Current
General government 1 2,759,518 1 4,648,991 1 4, 1 83,425 958,759 1 3,224,666
Public safety 10,276,632 1 0,904,910 1 0,51 5,464 855 1 0, 5 1 4,609
Culture and recreation 1 ,301 ,921 1 ,31 3,51 6 1 ,292,999 (914) 1 ,293,91 3
Public health 58,573 1 1 5,573 1 07,761 (10,797) 1 1 8,558
Capital outlay 1 56,935 1 55,250 1 55,250
Total expenditures 24,396,644 27,1 39,925 26,254,899 947,903 25,306,996
Excess (deficiency) of revenues over

expenditures 1 ,392,518 (859,040) 2,643,061 (1 ,246,950) 3,890,01 1

Sale of assets 5,000 70,270 73,703 394 73,309
Capital lease proceeds 1 ,4 1 1 ,079 1 ,4 1 1 ,633 1 ,4 1 1 ,633
Transfers in 270,000 288,974 288,974 288,974
Transfers out (1 , 667, 5 1 8) (2,251 ,740) (2,251 ,389) (2,251 ,389)
Total other financing sources (uses) (1 ,392,518) (481,417) (477,079) 394 (477,473)
Change in fund balance (1 , 340,457) 2,1 65,982 (1 ,246,556) 3,412,538

Fund balance, January 1 6,972 , 1 63 6,972,163 6,972, 1 63 (1,554,1 90) 8,526,353
Fund balance, December 31 $ 6,972,163 $ 5,631 ,706 $ 9,1 38,145 $ (2,800,746) $ 1 1 ,938,891
Explanation of differences:
The County budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when paid.
The accompanying notes to required supplementary information are an integral part of this schedule.
71
NOTES TO REQUIRED SUPPLEMENTARY INFORMA TfON
December 31, 2006
NOTE 1 : BUDGETARY BASIS OF ACCOUNTING
The County annually adopts budgets that are prepared using the cash basis of accounting, which is not
consistent with GAAP. A reconciliation to GAAP basis is provided in the preceding statement.
NOTE 2: BUDGETARY LEGAL COMPLIANCE
For the year ended December 31 , 2006, the County complied with budgetary restrictions at all line-item levels
except the following. The following table details this variance:
DepartmenUFund Amount
General Fund
Fringe benefits $ 72
Salaries 473
Fringe benefits 284
Justice of the peace #4
Salaries 55
Salaries 1 ,230
County treasurer
Fringe benefits 549
72
Com b i n i ng and I n d ividual Fund State ments and Schedules
ALL NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
December 31, 2006
Total Total Total Total

Nonmajor Nonmajor Nonmajor Nonmajor
Special Debt Capital Governmental
Revenue Funds Service Funds Project Fund Funds
ASSETS
Current assets
Cash and cash equivalents $ 3,027,958 $ 575,955 $ $ 3,603,91 3
Receivables (net) 1 ,672,679 1 , 1 75,476 2,848, 1 55
Due from other funds 418 418
Total assets $ 5,349,554 $ 1 , 751 ,431 $ $ 7,1 00,985
LIABILITIES AND FUND BALANCES

Liabilities
Accounts payable $ 1 45,879 $ 324 $ $ 1 46,203
Accrued expenditures 1 1 5,674 1 1 5,674
Due to other funds 507,147 507, 1 47
Deferred revenue 2,277,800 1 ,624,300 3,902, 1 00
Total liabilities 3,046,500 1 ,624,624 4,671 , 1 24
Fund balances
Reserved for:
Debt service 1 26,807 1 26,807
Unreserved, undesignated reported in:
Special revenue funds 2,303,054 2,303,054
Total fund balances 2,303,054 1 26,807 2,429,861
Total liabilities and fund balances $ 5,349,554 $ 1 ,751 ,431 $ $ 7,1 00,985
73
ALL NONMAJOR GOVERNMENTAL FUNDS
COMBINING STA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Total Total Total Total

Nonmajor Nonmajor Nonmajor Nonmajor
Special Debt Capital Governmental
Revenue Funds Service Funds Project Fund Funds
REVENUES
Taxes $ 1 ,935,592 $ 1 ,472,259 $ $ 3,407,851
Fees of office and user fees 951 ,027 951 ,027
Intergovernmental 4,91 8,098 4,91 8,098
Fines and forfeitures 1 1 ,800 1 1 ,800
I nvestment income 204,901 1 7,734 3,520 226, 1 55
Contributions 7,505 7,505
Miscellaneous 44,696 44,696
Total revenues 8,073,619 1 ,489,993 3,520 9,567,132
EXPENDITURES
Current
General government 1 ,696,402 1 ,696,402
Public safety 1 68,143 1 68,143
Highways and streets 4,046,359 281 ,315 4,327,674
Culture and recreation 4,494 4,494
Public health 3,784,809 3,784,809
Debt service
Principal retirement 1 ,265,000 1 ,265,000
I nterest and fiscal charges 377,923 377,923
Total expenditures 9,700,207 1 ,642,923 281 ,31 5 1 1 ,624,445

over expenditures (1 ,626,588) (1 52,930) (277,795) (2,057,313)
Sale of assets 30,000 30,000
Capital lease proceeds 8 1 , 789 81 ,789
Transfers in 1 ,660,355 26,965 1 ,687,320
Transfers out (302,940) (26,965) (329,905)
Total other financing sources (uses) 1 ,469,204 26,965 (26,965) 1 ,469,204
Change in fund balances (1 57,384) (1 25,965) (304,760) (588,109)
Fund balances at beginning of year 2,460,438 252,772 304,760 3,01 7,970
Fund balances at end of year $ 2,303,054 $ 1 26,807 $ $ 2,429,861
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 Accounts for costs associated with the construction and
-
maintenance of roads and bridges in the four Comm issioners' 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 maintenance of roads and bridges in the four Comm issioners' 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 REVEN UE FUNDS
The Other Special Revenue Funds consists of various funds that account for particular functions and
activities as described below:
Records Management Fund Accounts for monies received by the County under Local
-
Government Code Section 1 1 8.01 1 . Expenditures of the fund are made to manage and preserve
documents filed 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 in the office of the
District Clerk.
Appellate Judicial System Fund Accounts for fees received by the County for court costs on
-
civil suits filed with the County Court, County Court at Law, Probate Court, or District Court under
Section 22.214 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 31h Court of Appeals.
FEMA Unmet Needs Fund Account for funds received from the U.S. Department of Homeland
-
Security for unmet needs associated with major disaster declaration FEMA-1257-DR for
acquisition of nine parcels of land.
75
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
OTHER SPECIAL REVEN UE FUNDS (Continued)
Juvenile Probation Fund Records monies received by the County from the Texas Juvenile
-
Probation Commission as well as operating transfers from the General Fund of the County.
These monies are spent to provide various services related to the operation of the County
Juvenile Probation Department.
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 d irection of Commissioners' Court and are used to repair damage, provide educational and
intervention programs, and provide public rewards.
J ustice Technology Fund Accounts for funds received from a defendant convicted of a
-
misdemeanor offense in a Justice Court, pursuant to Article 1 02.01 73, Code of Criminal
Procedures. These funds are administered by or under the direction of the Commissioners' Court
and are used to finance the technological enhancements of the Justice Courts.
Family Protection Fee Fund Accounts for funds received from individuals filing suit for
-
dissolution of a marriage. These funds are administered by or under the direction of the
Comm issioners' Court and are to be distributed to non-profit organizations in Victoria County.
CDA Processing Fee Fund - Accounts for fees earned by the office of the 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 Justice 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 d irect 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.
Sheriff Victims Discretionary Assistance Gran! Fund - Account for funds received from the
Office of the Attorney General to provide needed victim services to the residents of Bloomington
by placing a Victim Outreach Officer in the area. This would insure that victims/residents have
access to Victoria County Sheriff's Office Services.
76
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
OTHER SPECIAL REVENUE FUNDS (Continued)
Texas Vine G rant 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.
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.
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.
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.
Local Law Enforcement Block Grant Fund - Accounts for funds received from the U.S.
Department of Justice and administered by the Office of Justice Programs. The purpose of the
grant is to provide funds for use in one or more of seven program areas for the purposes of
reducing crime and i mproving public safety.
State Homeland Security Program Grant Fund Accounts for funds received from the
-
Department of Homeland Security. The purpose of this grant is to enhance the capacity of first
responders to respond to terrorism incidents involving chemical, biological, nuclear, radiological,
incendiary, and explosive devices.
Disaster Relief Grant Fund - Accounts for funds received from the Office of Rural Community
Affairs. The purpose of this grant is to provide disaster relief for the repair of County roads
damaged by the Novem ber 2004 flood.
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 Im provement District
No. 2 Placedo. Grant funds are to be used for capital improvements to the existing water system.
Hurricane Relief Fund Accounts for funds received in the relief efforts of Hurricanes Rita and
-
Katrina.
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.
CDA Homeland Forfeiture Fund Accounts for funds received from the U.S. Department of
-
Justice. The purpose of this program is for law enforcement; to deter crime by depriving criminals
of the profits and proceeds of their illegal activities and to weaken criminal enterprises by
removing the instrumentalities of crime.
77
NON MAJOR SPECIAL REVENUE FUNDS (Continued)
OTHER SPECIAL REVENUE FUNDS (Continued)
CDA Department of Treasury Federal Forfeiture Fund - Accounts for funds received from the
U.S. Department of Justice. The purpose of this program is for law enforcement; to deter crime
by depriving criminals of the profits and proceeds of their illegal activities and to weaken criminal
enterprises by removing the instrumentalities of crime.
VISD Juvenile Probation Officer Fund - Accounts for funds received from Victoria Independent
School District (VISD) to employ four juvenile probation officers that are housed and working on
VISD campuses during the 2006-2007 school year.
Employee Benefit Fund - Accounts for funds received from commissions from vending
machines located on County property, donations, and interest earnings. These funds are used to
provide special benefits for employees.
Election Administrator's Special Fund Records the various fees received designated to be
-
used by the County Election Administrator in coordinating various County elections.
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.
Tax Assessor-Collector Special Fund - Accounts for interest earnings on the Special Inventory
Escrow Account. These funds are the sole property of the collector and are used to defray the
cost of 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 maintenance of
a professional library for members of the Texas Bar Association. Revenues are derived from fees
assessed on civil cases filed in County and District Courts.
Health Department Fund Accounts for revenues and expenditures associated with services
-
provided to the public by the nursing division, special services division, and the environmental
services division located at the Victoria City/County Heath Department.
WIC Program Fund - Accounts for funds received from the Texas Department of State Health
Services for Victoria County's participation 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 4 1 5 or to provide necessary training to full-time law enforcement support
personnel.
78
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
December 31, 2006
Other
Road and Special
Bridge Revenue Total
ASSETS
Cash and cash equivalents $ 1 ,983,741 $ 1 ,044,21 7 $ 3,027,958
Receivables (net)
Ad valorem 1 ,653,594 1 ,653,594
Other 1 5,607 3,478 1 9,085
Due from other funds 418 41 8
Total assets $ 3,652,942 $ 1 ,696,61 2 $ 5,349,554
LIABILITIES AND FUND BALANCE

Liabilities
Accounts payable $ 54,640 $ 91 ,239 $ 1 45,879
Accrued expenditures 38,461 77, 2 1 3 1 1 5,674
Due to other funds 1 7,387 489,760 507,147
Deferred revenue 2,276,095 1 ,705 2,277,800
Total liabilities 2,386,583 659,91 7 3,046,500
Fund balance
Unreserved, undesignated 1 ,266,359 1 ,036,695 2,303,054
Total liabilities and fund balance $ 3,652,942 $ 1 ,696,612 $ 5,349,554
79
COMBINING STA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Other
Road and Special
Bridge Revenue Total
REVENUES
Taxes $ 1 ,935,592 $ $ 1 ,935,592
Fees of office and user fees 951 ,027 951 , 027
Intergovernmental 1 ,779,557 3,1 38,541 4,9 1 8,098
Fines and forfeitures 1 1 ,800 1 1 ,800
Investment income
Interest 1 29,739 75, 162 204,901
Contributions 7,505 7,505
Miscellaneous 28,029 1 6,667 44,696
Total revenues 3,872,91 7 4,200,702 8,073,619
EXPENDITURES
Current
General government 1 , 696,402 1 , 696,402
Public safety 1 68,143 1 68 , 1 43
Highways and streets 3,876,835 1 69,524 4,046,359
Culture and recreation 4,494 4,494
Public health 3,784,809 3,784,809
Total expenditures 3,876,835 5,823,372 9,700,207

over expenditures (3, 91 8) (1,622,670) (1 ,626,588)

Sale of assets 30,000 30,000
Capital lease proceeds 8 1 , 789 81 ,789
Transfers in 1 ,660,355 1 ,660,355
Transfers out (200,000) (102, 940) (302,940)
Total other financing sources (uses) (88,21 1 ) 1 ,557,41 5 1 ,469,204
Change in fund balance (92,129) (65,255) (1 57,384)
Fund balance, January 1 1 ,358,488 1 ,101 ,950 2,460,438
Fund balance, December 31 $ 1 ,266,359 $ 1 ,036,695 $ 2,303,054
80
December 31, 2006
Road and Bridge Funds

Pet. 1 Pet. 2 Pet. 3 Pet. 4
ASSETS
Cash and cash equivalents $ 485,477 $ 377,740 $ 645,437 $ 41 3,371
Receivables (net)
Ad valorem 454,426 372,675 372,478 454,0 1 5
Other 4,054 3,668 3,668 4,21 7
Total assets $ 943,957 $ 754,083 $ 1 ,021 ,583 $ 871 ,603

Liabilities
Accounts payable $ 6,651 $ 1 3,732 $ 1 9,645 $ 1 4,612
Accrued expenditures 1 0,31 2 8,552 9,454 1 0, 143
Due to other funds 4,739 3,753 4,426 4,469
Deferred revenue 625,61 3 51 2,738 512,541 625,203
Total liabilities 647,31 5 538,775 546,066 654,427

Fund balance
Unreserved, undesignated 296,642 21 5,308 475,51 7 2 1 7 , 1 76
Total liabilities and fund balance $ 943,957 $ 754,083 $ 1 ,021 ,583 $ 871 ,603
81
Lateral Road Funds
Pet. 1 Pet. 2 Pet. 3 Pet. 4 Total
$ 28,094 $ 1 6,1 01 $ 253 $ 1 7,268 $ 1 ,983,741
1 ,653,594
1 5,607
$ 28,094 $ 1 6,1 01 $ 253 $ 1 7,268 $ 3,652,942
$ $ $ $ $ 54,640
38,461
1 7,387
2,276,095
2,386,583
28,094 1 6, 1 01 253 1 7, 268 1 , 266,359

$ 28,094 $ 1 6, 1 01 $ 253 $ 1 7,268 $ 3,652,942
82
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Road and Bridge Funds

Pct. 1 Pct. 2 Pct. 3 Pct. 4
REVENUES
Taxes $ 532,287 $ 435,508 $ 435,509 $ 532,288
Investment income
Interest 30,432 24,783 41 , 1 75 28,639
Miscellaneous 1 ,033 1 63 1 6,475 10,358
Total revenues 1 ,009,578 886,860 919,566 1 ,0 1 7, 1 1 1
EXPENDITURES
Current
Highways and streets 1 ,038,195 837,774 902,843 1 ,01 9,394

over expenditures (28,617) 49,086 1 6,723 (2,283)

Sale of assets 30,000
Capital lease proceeds 81 ,789
Transfers out (50,000) (50,000) (50,000) (50,000)
Total other financing sources (uses) 6 1 , 789 (50, 000) (50,000) (50,000)
Change in fund balance 33,172 (914) (33,27 7) (52,283)
Fund balance, January 1 263,470 21 6,222 508,794 269,459
Fund balance, December 31 $ 296,642 $ 215,308 $ 475,51 7 $ 2 1 7, 1 76
83
Lateral Road Funds
Pct. 1 Pct. 2 Pct. 3 Pct. 4 Total
$ $ $ $ $ 1 ,935,592
8,773 8,773 8,773 8,773 1 ,779,557
1 , 535 618 1 ,960 597 1 29,739

28,029
1 0,308 9,391 1 0,733 9,370 3,872,917
27,332 2,655 47,586 1 ,056 3,876,835
( 1 7,024) 6,736 (36,853) 8,314 (3,918)
30,000
81 ,789
(200,000)
(88,21 1 )
(1 7,024) 6,736 (36,853 ) 8,31 4 (92,1 29)
45, 1 1 8 9,365 37,106 8,954 1 ,358,488
$ 28,094 $ 1 6,101 $ 253 $ 1 7,268 $ 1 ,266,359
84
OTHER SPECIAL REVENUE FUNDS
December 31, 2006
Justice District
Court Clerk Appellate FEMA
Records Courthouse Building Records Judicial Unmet
Mgmt Securit� Securit� Mgmt S�stem Needs
ASSETS
Cash and cash equivalents $ 1 70,729 $ 39,609 $ 8,687 $ 3,678 $ 5,2 1 1 $
Receivables (net)
Other 735 321 42 5 24
Due from other governments
Due from other funds
Total assets $ 1 71 ,464 $ 39,930 $ 8,729 $ 3,683 $ 5,235 $
LIABILITIES AND FUND

BALANCE
Liabilities
Accounts payable $ 5,776 $ $ $ $ 5,21 1 $
Accrued expenditures 1 ,856
Due to other funds 24
Deferred revenue
Total liabilities 7,656 5,21 1
Fund balance
Unreserved, undesignated 1 63,808 39,930 8,729 3,683 24
Total liabilities and fund

balance $ 1 71 ,464 $ 39,930 $ 8,729 $ 3,683 $ 5,235 $
85
CDA Sheriff
Federal Juvenile Family CDA Victims Victims
Juvenile Foster Care Delinquency Justice Protection Processing Assistance Assistance
Probation Grant Prevention Technology Fee Fee Grant Grant
$ 73,895 $ 327, 1 65 $ 91 $ 39,268 $ 1 4,205 $ 1 04,548 $ $ 1 ,936
1 71 15
1 9,51 3 75,677 5,254 1 1 ,236 4,799
418
$ 93,408 $ 402,842 $ 91 $ 39,439 $ 1 4,220 $ 1 09,802 $ 1 1 ,654 $ 6,735
$ 1 ,368 $ 1 8,464 $ $ 520 $ $ 4,929 $ 44 $ 16

1 0,781 5,567 3,814 2,21 5 859
462 86 458 9,395 1 66
1 2,61 1 24, 1 1 7 520 9,201 1 1 ,654 1 ,041
80,797 378,725 91 38,919 14,220 1 00,601 5,694
$ 93,408 $ 402,842 $ 91 $ 39,439 $ 1 4,220 $ 1 09,802 $ 1 1 ,654 $ 6,735
(continued)
86
December 31, 2006
Sheriff
Victims Local Law
Discretionary Texas 4- H TXDOT Byrne Enforcement
Assistance Vine Activity Click It! JAG Block
Grant Grant Center Ticket Program Grant
ASSETS
Cash and cash equivalents $ $ $ 43,400 $ $ 8,656 $
Receivables (net)
Other
Due from other governments 6,2 1 3
Total assets $ 6,21 3 $ $ 43,400 $ $ 8,656 $

BALANCE
Liabilities
Accounts payable $ 39 $ $ 20 $ $ $
Accrued expenditures 820
Due to other funds 5,354
Deferred revenue
Total liabilities 6,213 20
Fund balance
Unreserved, undesignated 43,380 8,656

balance $ 6,21 3 $ - $ 43,400 $ -
$ 8,656 $
87
CDA
Sheriffs CDA CDA Dept. of Treas.
Homeland Disaster TCDP Hurricane Special Contraband Homeland Federal
Security Relief Grant Relief Purpose Forfeiture Forfeiture Forfeiture
$ $ $ $ $ 24,462 $ 29,929 $ $ 6,1 1 7
88,859
$ $ 88,859 $ $ $ 24,462 $ 29,929 $ $ 6,1 1 7
$ $ $ $ $ 55 $ $ $ 78
88,859
88,859 55 78
24,407 29,929 6,039
$ -
$ 88,859 $ -
$ -
$ 24,462 $ 29,929 $ -
$ 6,1 1 7
( continued)
88
December 31, 2006
VISD Help Tax

Juvenile Election America Assessor-
Probation Employee Admin Vote Act Collector Historical
Officer Benefit Special Grant Special Commission
ASSETS
Cash and cash equivalents $ $ 5,481 $ 1 4,864 $ $ 67, 1 1 3 $ 1 2,000
Receivables (net)
Other 760 1 ,0 1 5
Due from other governments 21 ,554 5,056
Total assets $ 21 ,554 $ 6,241 $ 1 5,879 $ 5,056 $ 67,1 1 3 $ 1 2,000

BALANCE
Liabilities
Accounts payable $ 1 , 256 $ 329 $ 161 $ $ $ 3
Accrued expenditures 2,762
Due to other funds 1 7,536 35 5,056
Deferred revenue
Total liabilities 21 ,554 329 1 96 5,056 3
Fund balance
Unreserved, undesignated 5,912 1 5,683 67,1 1 3 1 1 ,997

balance $ 21 ,554 $ 6,241 $ 1 5,879 $ 5,056 $ 67, 1 1 3 $ 1 2,000
89
Law Health WIC
Library Department Program LEOSE Total
$ 27,356 $ 2,1 80 $ $ 1 3,637 $ 1 ,044,21 7
210 1 80 3,478
1 73,109 237,229 648,499
41 8
$ 27,566 $ 1 75,289 $ 237,229 $ 1 3,81 7 $ 1 ,696,612
$ 2,1 22 $ 48,137 $ 2,71 1 $ $ 91 ,239

36,925 1 1 ,614 77,21 3
1 44,716 2 1 7,613 489,760
1 ,705 1 ,705
2,1 22 231 ,483 231 ,938 659,917
25,444 (56,1 94 ) 5,291 1 3,817 1 ,036,695
$ 27,566 $ 1 75,289 $ 237,229 $ 1 3,817 $ 1 ,696,612
90
COU N TY O F VICTORIA, TEXAS
Justice District
Court Clerk Appellate FEMA
Records Courthouse Building Records Judicial Unmet
Mgmt Securit� Securit)': Mgmt S),:stem Needs
REVENUES
Fees of office and user fees $ 1 0 1 , 1 59 $ 66,733 $ 9,425 $ 5,906 $ 5,223 $
Intergovernmental
Fines and forfeitures
Investment income
Interest 1 0,61 6 1 ,728 1 76 1 56
Contributions
Miscellaneous
Total revenues 1 1 1 ,775 68,461 9,601 6,062 5,223
EXPENDITURES
Current
General government 1 65,51 9 9,547 872 3,694 5,2 1 1 2,400
Public safety
Highways and streets
Culture and recreation
Public health
Total expenditures 1 65,51 9 9,547 872 3,694 5,2 1 1 2,400

over expenditures (53, 744) 58,914 8,729 2,368 12 (2,400)
OTHER FINANCING SOURCES

(USES)
Transfers in
Transfers out (40,000) (5,657)
Total other financing sources
(uses) (40,000) (5,657)
Change in fund balance (53,744) 1 8,914 8,729 2,368 12 (8,057)

Fund balance, January 1 21 7,552 21,016 1 , 31 5 12 8,057
Fund balance, December 31 $ 1 63,808 $ 39,930 $ 8,729 $ 3,683 $ 24 $
91
CDA Sheriff
Federal Juvenile Family CDA Victims Victims
Juvenile Foster Care Delinquency Justice Protection Processing Assistance Assistance
Probation Grant Prevention Technology Fee Fee Grant Grant
$ $ $ $ 44,877 $ 5,955 $ 1 56,847 $ $

604,248 1 71 ,940 38,862 45,667
3,535 1 9,659 5 1 ,516 7,108
5,964 4,829
61 3,747 1 9 1 ,599 5 46,393 5,955 1 68,784 38,862 45,667
588,901 305,828 28,092 1 63,604 52,828 44,431
588,901 305,828 28,092 1 63,604 52,828 44,431
24,846 (1 1 4,229) ___ -=.

5 1 8,301 5,955 5,180 (1 3,966) __
-,-,-
1 ,2=-:3:;:
6
1 3,966
(1 3,966)
(1 3,966) 1 3,966
24,846 (1 1 4,229) 5 1 8,301 5,955 (8,786) 1 ,236

55,951 492,954 86 20,61 8 8,265 1 09,387 4,458
$ 80,797 $ 378,725 $ 91 $ 38,91 9 $ 14,220 $ 1 00,601 $ $ 5,694
(continued)
92
Sheriff
Victims Local Law
Discretionary Texas 4-H TXDOT Byrne Enforcement
Assistance Vine Activity Click It! JAG Block
Grant Grant Center Ticket Program Grant
REVENUES
Fees of office and user fees $ $ $ $ $ $
I nvestment income
Interest 2,300 21 8
Contributions 200
Miscellaneous
Total revenues 49,725 43,805 2,500 8,000 34,398 218
EXPENDITURES
Current
General government 49,727 43,805
Public safety 8,000 25,742 1 0,236
Culture and recreation 462
Public health
Total expenditures 49,727 43,805 462 8,000 25,742 1 0,236

over expenditures (2) 2,038 8,656 (10,018)

(USES)
Transfers in
Transfers out
(uses)
Change in fund balance (2) 2,038 8,656 (1 0,018)

Fund balance, January 1 2 41 ,342 1 0,018
Fund balance, December 31 $ $ $ 43,380 $ $ 8,656 $
93
CDA
Sheriff's CDA CDA Dept. of Treas.
Homeland Disaster TDCP Hurricane Special Contraband Homeland Federal
Security Relief Grant Relief Purpose Forfeiture Forfeiture Forfeiture
$ $ $ $ $ $ $ $
72,500 1 69,524 26,484 1 3,31 7
1 , 227 1 0,573
1 ,696 1 ,836 366 454
200
72,500 1 69,524 26,484 1 3,31 7 2,923 1 2,409 366 654
26,484 1 7,562 1 6,920 6,442

72,500 1 8,350
1 69,524
72,500 1 69,524 26,484 1 8,350 1 7,562 16,920 6,442
1 3,31 7 (1 5,427) (5,1 53) (1 6,554) (5,788)
(1 3,31 7) _
_
__
(1 3,31 7) _
__
_
(1 5,427) (5,1 53) (1 6,554) (5,788)

39,834 35,082 1 6,554 1 1 ,827
$ $ $ $ $ 24,407 $ 29,929 $�� $ 6,039
(continued)
94
VISD Help Tax

Juvenile Election America Assessor-
Probation Employee Admin Vote Act Collector H istorical
Officer Benefit Seecial Grant Special Commission
REVENUES
Fees of office and user fees $ $ $ 96, 1 33 $ $ $
Intergovernmental 2 1 , 554 7,584
Investment income
Interest 314 31 2 20,542 695
Contributions 7,305
Miscellaneous 3,341 1 ,463 1 24
Total revenues 21 ,554 1 0,960 96,445 7,584 22,005 819
EXPENDITURES
Current
General government 1 0,684 91 ,448 7,584 1 3,584
Public safety 21 ,554
Culture and recreation 4,032
Public health
Total expenditures 21 ,554 10,684 91 ,448 7,584 1 3, 584 4,032

over expenditures 276 4,997 8,421 (3,21 3)

(USES)
Transfers in 3,000
Transfers out
(uses) 3,000
Change in fund balance 276 4,997 8,421 (21 3)

Fund balance, January 1 5,636 1 0,686 58,692 1 2,210
Fund balance, December 31 $ $ 5,912 $ 1 5,683 $ $ 67, 1 1 3 $ 1 1 ,997
95
Law Health WIC
Library Department Program LEOSE Total
$ 61 ,806 $ 396,963 $ $ $ 951 ,027

1 ,052, 1 1 8 765,542 1 3,273 3,1 38,541
1 1 ,800
1 ,930 75, 1 62
7,505
746 1 6,667
63,736 1 ,449,827 765,542 1 3,273 4,200,702
41 ,235 1 ,696,402
1 1 ,761 168 ,143
1 69,524
4,494
3,020,610 764, 1 99 3,784,809
41 ,235 3,020,610 764,199 1 1 ,761 5,823,372
22,501 (1 ,570,783) 1 ,343 1 ,5 1 2 (1 ,622,670)
1 ,643,389 1 ,660,355
(30,000) (102,940)
(30,000) 1 ,643,389 1 ,557,41 5
(7,499) 72,606 1 ,343 1 ,51 2 (65,255)

32,943 (1 28,800) 3,948 1 2,305 1 ,101 ,950
$ 25,444 $ (56,1 94) $ 5,291 $ 1 3,81 7 $ 1 ,036,695
96
NON MAJOR DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for and the payment of general
long-term debt principal, interest and related costs.
97
NONMAJOR GOVERNMENTAL FUNDS - DEBT SERVICE FUNDS
December 31, 2006
Courthouse Bridge
Road Jail Restoration Street
Bonds Bonds Bonds Annex
Sinking Sinking Sinking Sinking Total
ASSETS
Cash and cash equivalents $ 1 38,598 $ 1 51 ,276 $ 1 1 2,279 $ 1 73,802 $ 575,955
Receivables (net)
Ad valorem 229,924 348,81 1 237,937 358,804 1 , 1 75,476
Total assets $ 368,522 $ 500,087 $ 350,2 1 6 $ 532,606 $ 1 ,751 ,431

Liabilities
Accounts payable $ 1 62 $ $ 1 62 $ $ 324
Deferred revenue 317,558 477,892 330,308 498,542 1 , 624,300
Total liabilities 31 7,720 477,892 330,470 498,542 1 ,624,624
Fund balance
Reserved - debt service 50,802 22,195 1 9,746 34,064 1 26,807
Total liabilities and fund balance $ 368,522 $ 500,087 $ 350,2 1 6 $ 532,606 $ 1 ,751 ,431
98
Courthouse Bridge
Road Jail Restoration Street
Bonds Bonds Bonds Annex
Sinking Sinking Sinking Sinking Total
REVENUES
Taxes $ 299,957 $ 424,065 $ 296,1 1 2 $ 452,125 $ 1 ,472,259
Investment income
Interest 4,391 3,622 3,627 6,094 1 7,734
Total revenues 304,348 427,687 299,739 458,2 1 9 1 ,489,993
EXPENDITURES
Debt service
Principal retirement 280,000 420,000 240,000 325,000 1 ,265,000
Interest and fiscal charges 73,660 39, 1 76 92,325 1 72,762 377,923
Total expenditures 353,660 459,1 76 332,325 497,762 1 ,642,923

over expenditures (49,312) (31 ,489) (32,586) (39,543) (1 52,930)

(USES)
Transfers in 26,965 26,965

(uses) 26,965 26,965
Change in fund balance (22,347) (31 ,489) (32,586) (39,543) (125,965)
Fund balance, January 1 73,149 53,684 52,332 73,607 252,772
Fund balance, December 31 $ 50,802 $ 22, 1 95 $ 1 9,746 $ 34,064 $ 1 26,807
99
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
Actual Amounts Variance

Original Final Budgetary Positive
Budget Budget Basis (Negative)
REVENUES
Taxes
Ad valorem
Current $ 1 1 ,853,950 $ 1 1 ,853,950 $ 1 1 ,985,998 $ 1 32,048
Delinquent 250,000 250,000 324,993 74,993
Penalty and interest 1 30,000 1 30,000 1 58,403 28,403
Sales and use 5,350,000 5,687,081 6,980,525 1 , 293,444
Total taxes 1 7,583,950 1 7,921 ,031 1 9,449,91 9 1 ,528,888
Fees of office and user fees
Sheriffs department 450,000 450,000 504, 1 92 54,192
Prisoner maintenance 1 ,500 1 ,500 4,435 2,935
County treasurer 1 3,400 1 3,400 1 2,752 (648)
Election administrator 1 ,000 1 ,000 4,477 3,477
County clerk 350,000 350,000 51 9,354 1 69,354
Probate personnel education fees 2,000 2,000 1 ,405 (595)
County courts at law 4,000 4,000 4,212 212
Tax assessor-collector 425,000 425,000 464,765 39,765
Criminal d istrict attorney 30,000 30,000 24,741 (5,259)
District clerk 270,000 270,000 288,725 1 8,725
Justices of the peace 1 2,500 1 2,500 1 2,246 (254)
Deferred adjudication 1 5,000 1 5,000 1 3,919 (1 ,081 )
Constables 1 ,950 1 ,950 1 3,502 1 1 ,552
Total fees of office and user fees 1 ,576,350 1 , 576,350 1 ,868,725 292,375
Intergovernmental
Payment in lieu of taxes 1 00 1 00 1 59 59
Alcohol beverage tax 1 30,000 1 30,000 1 41 ,626 1 1 ,626
County courts at law 70,000 78,074 85,458 7,384
Bingo gross receipts tax 55,000 55,000 75,370 20,370
Tobacco settlement 1 00,000 218,700 21 8,765 65
Indigent defense grant 45,000 45,000 73,738 28,738
Title IV-E legal service 50,000 50,000 49,554 (446)
Jury fee reimbursementlSB1 704 55,000 55,000 1 3,600 (41 ,400)
Juvenile detention contracts 1 ,000,000 1 ,000,000 1 ,265,281 265,281
State juvenile detention funds 60,000 60,000 1 04,635 44,635
Jail inmate bedspace 2,600,000 2,600,000 2,259,243 (340,757)
Jail inmate contract medical 45,000 45,000 1 4,280 (30,720)
Jail inmate contract other 40,000 40,000 51 ,968 1 1 ,968
Jail inmate extradition 25,000 25,000 1 7,808 (7, 1 92)
General i nmate medical 25,000 25,000 30,373 5,373
Project lifesaver 1 , 400 1 ,050 (350)
Vest reimbursement 1 9,350 22,207 2,857
Total intergovernmental 4, 300, 1 00 4,447,624 4,425, 1 1 5 (22,509)
(continued)
1 00
GENERAL FUND

REVENUES (continued)
District court fines $ 340,000 $ 340,000 $ 297,006 $ (42,994)
County court at law fines 400,000 400,000 384,603 (1 5,397)
Justice of the peace fines 580,000 580,000 786,373 206,373
Forfeitures 40,500 40,500 75,837 35,337
Total fines and forfeitures 1 ,360,500 1 ,360,500 1 ,543,819 1 83,31 9
Interest 200,000 200,000 807,628 607,628
Licenses and permits
Marriage licenses 1 1 ,000 1 1 ,000 1 1 ,439 439
Beer and whiskey licenses 27,000 27,000 24,501 (2,499)
Miscellaneous 1 00 1 00 1 25 25
Total licenses and permits 38,100 38,100 36,065 (2,035)
Contributions 400 2,000 5,884 3,884
Miscellaneous
Records management preservation 40,000 40,000 39,381 (619)
WIC program administrative fee 20,000 20,000 22,451 2,451
Criminal justice planning commission 500 500 118 (382)
Crime stopper fee 5 5 2 (3)
LEOSEF collection 10 10 4 (6)
Victims of crime collection 2,500 2,500 763 (1 ,737)
JCPTF commission 200 200 53 (147)
Juvenile probation diversion collections 200 200 280 80
Operators/chauffeurs license collection 25 25 (25)
General revenuelmisdemeanor cost 25 25 2 (23)
Comprehensive rehabilitation collection 25 25 3 (22)
Criminal assessment collection 25 25 (25)
Abused children fees 25 25 (25)
Legal service for indigents fees 600 600 533 (67)
Defensive driving course fee 1 5,000 1 5,000 21,118 6,1 1 8
Visual record by electronic device 2,000 2,000 1 84 (1 ,816)
Court reporter fees 22,000 22,000 26,703 4,703
Arrest warrant fees 50,000 50,000 38,860 (1 1 , 1 40)
Other fees 1 76,600 1 76,600 208,480 31 ,880
Personal recognizant fees 7,000 7,000 6,594 (406)
CJAD contract services 6,000 6,000 5,300 (700)
Rents and royalties 43,21 2 43,2 1 2 32,31 2 (10,900)
Telephone commissions 230,000 230,000 1 99,429 (30,571 )
Election machines rental 10,000 1 0,000 1 8,736 8,736
Reimbursements 40,660 40,660 37,824 (2,836)
Refunds 1 50 5,668 5,6 1 8 (50)
Restitutions 500 500 1 ,414 914
Miscellaneous 62,500 62,500 94,643 32,143
Total miscellaneous 729,762 735,280 760,805 25,525
Total revenues 25,789,1 62 26,280,885 28,897,960 2,61 7,075
(continued)
101
GENERAL FUND

EXPENDITURES
Current
General government
County judge
Salaries $ 1 48,376 $ 1 47, 1 26 $ 141 ,993 $ 5, 1 33
Fringe benefits 39,21 3 39,213 37,035 2 , 1 78
Operating expenditures 9,982 1 1 ,232 7,959 3,273
Total county judge 1 97,571 1 97,571 1 86,987 1 0, 584
Commissioners' court
Salaries 40,1 05 40,105 40,105
Fringe benefits 1 1 ,3 1 8 1 1 ,318 1 1 ,249 69
Operating expenditures 1 1 ,000 1 2,576 12,066 51 0
Other services and charges 1 4,000 1 8,805 1 7,705 1 , 1 00
Total commissioners' court 76,423 82,804 81 , 1 25 1 ,679
Records management
Salaries 8,300 20,300 19,439 861
Fringe benefits 635 1 ,550 1 ,487 63
Operating expenditures 21 ,065 377 377
Total records management 30,000 22,227 20,926 1 ,301
County clerk
Salaries 442,383 442,383 418,094 24,289
Fringe benefits 1 40,545 1 40,545 1 28,959 1 1 ,586
Operating expenditures 8,1 90 8,235 3,953 4,282
Other services and charges 1 , 200 1 , 1 55 1 , 1 55
Total county clerk 592,31 8 592,318 551 ,006 41 ,312
Veterans' service officer
Salaries 40,350 40,350 40,350
Fringe benefits 7,571 7,571 7,499 72
Operating expenditures 3,850 3,850 2,743 1 ,1 07
Total veterans' service officer 51 ,771 51 ,771 50,592 1 , 1 79
Heritage director
Salaries 34,314 34,344 34,337 7
Fringe benefits 1 0,975 1 0,975 1 0,675 300
Operating expenditures 7,300 7,300 5,61 1 1 ,689
Total heritage director 52,589 52,619 50,623 1 ,996
Non-departmental
Operating expenditures 1 ,256,542 1 ,020,443 988,667 31 ,776
Other services and charges 670,051 741 ,421 713,091 28,330
Capital outlay 250,000 51 4,480 451 ,489 62,991
Total non-departmental 2,1 76,593 2,276,344 2,1 53,247 1 23,097
(continued)
1 02
GENERAL FUND

EXPENDITURES (continued)
Current (continued)
General government (continued)
County court at law # 1
Salaries $ 1 37,668 $ 141 ,705 $ 1 41 ,705 $
Fringe benefits 34,900 34,900 34,972 (72)
Operating expenditures 3,755 5,255 3,398 1 , 857
Other services and charges 40,000 43,500 40,649 2,851
Total county court at law # 1 216,323 225,360 220,724 4,636
County court at law # 2
Salaries 1 37,733 1 41 ,625 142,098 (473)
Fringe benefits 29,632 30,264 30,548 (284)
Operating expenditures 3,450 3,595 2,216 1 ,379
Other services and charges 32,000 39,500 38,971 529
Total county court at law # 2 202,81 5 21 4,984 213,833 1 ,1 51
District court
Salaries 210,023 207,533 1 99,735 7,798
Fringe benefits 87,809 87,809 85,083 2,726
Operating expenditures 1 3,250 1 3,550 1 1 ,843 1 , 707
Other services and charges 587,958 529,291 482,852 46,439
Total district court 899,040 838,1 83 779,51 3 58,670
District clerk
Salaries 41 9,097 431 ,31 7 429,097 2,220
Fringe benefits 1 31 ,640 1 34,775 1 25,992 8,783
Operating expenditures 24,345 23,804 22,855 949
Capital outlay 541 541
Total district clerk 575,082 590,437 578,485 1 1 ,952
Justice of the peace # 1
Salaries 67,375 67,375 67,374
Fringe benefits 20,226 20,226 20,018 208
Operating expenditures 5,490 5,490 5,074 41 6
Other services and charges 1 2,540 1 2,606 1 2,044 562
Total justice of the peace # 1 1 05,631 1 05,697 104, 510 1 , 1 87
Salaries 65,805 65,805 65,804 1
Fringe benefits 1 9,931 1 9,931 14,477 5,454
Other services and charges 1 4,600 1 4,635 1 3,553 1 ,082
Total justice of the peace # 2 1 03,81 1 1 04,046 97,100 6,946
Salaries 1 90,712 1 91 ,21 7 1 90,766 451
Fringe benefits 50,947 54,747 53,901 846
Other services and charges 2,500 2,000 678 1 , 322
Total justice of the peace # 3 249,549 254,054 250,978 3,076
(continued)
1 03
GENERAL FUND

Current (continued)
Jus lice of the peace # 4
Salaries $ 1 07,309 $ 107,309 $ 1 07,364 $ (55)
Fringe benefits 28,442 28,442 28,420 22
Operating expenditures 4,905 5,005 4,286 71 9
Other services and charges 1 0,700 1 2,635 1 1 ,963 672
Total justice of the peace # 4 1 51 , 356 1 53,391 1 52,033 1 ,358
Criminal district attorney
Salaries 71 2,239 712,324 683,650 28,674
Fringe benefits 171 ,805 1 75,505 1 68,990 6,51 5
Operating expenditures 1 0,000 10 ,000 1 0,000
Total criminal district attorney 894,044 897,829 862,640 35,189
Salaries 1 52,842 1 59,642 1 60,872 ( 1 , 230)
Fringe benefits 37,003 32,003 30,782 1 ,221
Operating expenditures 31 , 380 40, 0 1 5 38,809 1 ,206
Other services and charges 20,650 1 7,01 5 1 2,614 4,401
Total election administrator 241 ,875 248,675 243,077 5,598
County auditor
Salaries 292,521 292,521 290,802 1 ,719
Fringe benefits 81 ,422 81 ,422 79,91 5 1 ,507
Operating expenditures 1 8,675 20, 1 75 1 7,623 2,552
Total county auditor 392,618 394, 1 1 8 388,340 5,778
County treasurer
Salaries 1 89,765 1 90,541 1 90,376 1 65
Fringe benefits 50,770 49,994 50,543 (549)
Operating expenditures 34,450 34,450 8, 1 1 9 26,331
Total county treasurer 274,985 274,985 249,038 25,947
Tax assessor-collector
Salaries 458,256 458,256 447,859 1 0,397
Fringe benefits 1 36,754 1 40,954 1 37,191 3,763
Operating expenditures 1 8,975 1 8,975 1 7,550 1 ,425
Total tax assessor-collector 61 3,985 61 8,1 85 602,600 1 5,585
Administrative services
Salaries 1 28,061 1 58,876 1 54,402 4,474
Fringe benefits 36,890 43,294 41 ,822 1 ,472
Operating expenditures 1 3,848 1 5,528 1 5,269 259
Total administrative services 1 78,799 21 7,698 2 1 1 ,493 6,205
(continued)
1 04
GENERAL FUND

Current (continued)
Information technology
Salaries $ 21 8,483 $ 239,353 $ 235,244 $ 4,109
Fringe benefits 65,229 69,015 68,178 837
Operating expenditures 246,460 1 92,060 1 83,71 5 8,345
Other services and charges 79,300 1 1 6,200 1 05,055 1 1 ,145
Capital outlay 30,000 1 ,277,500 1 ,271 , 1 75 6,325
Debt service 275,000 273,909 1 ,091
Total information technology 639,472 2,169 ,128 2,1 37,276 31 ,852
Building maintenance
Salaries 227,520 227,520 223,327 4,193
Fringe benefits 62,280 62,280 58,564 3,716
Operating expenditures 826,100 899,450 895,552 3,898
Other services and charges 21 ,500 2 1 , 500
Total building maintenance 1 ,1 1 5,900 1 ,210,750 1 , 1 98,943 1 1 ,807
Adult probation department
Total adult probation department 5,750 8,250 7,960 290
Juvenile detention facility
Salaries 1 ,406,272 1 ,439,687 1 ,425,533 1 4, 1 54
Fringe benefits 395,809 386,809 347,073 39,736
Operating expenditures 288,300 347,067 345,565 1 , 502
Other services and charges 59,140 52, 1 95 51 ,653 542
Capital outlay 30, 1 1 2 30, 1 00 12
Debt service 499,520 499,520 499,517 3
Total juvenile detention facility 2, 649,041 2,755, 390 2,699,441 55,949
Juvenile board
Salaries 30,230 30,230 30,230
Fringe benefits 5,672 5,672 4,952 720
Total juvenile board 72, 1 77 92, 1 77 90,935 1 , 242
Total general government 1 2,759,518 1 4,648,991 1 4,1 83,425 465,566
Public safety
Fire marshal
Salaries 84,774 84,774 82,192 2,582
Fringe benefits 23,490 24,190 23,324 866
Capital outlay 1 04,214 97,180 7,034
Total fire marshal 208,382 315,022 303,581 1 1 ,441
(continued)
1 05
GENERAL FUND

Current (continued)
Public safety (continued)
Sheriff
Salaries $ 5,968,543 $ 5,796,344 $ 5,661 ,386 $ 1 34,958
Fringe benefits 1 ,707,159 1 ,702,924 1 ,555,473 1 47,451
Operating expenditures 1 ,646,009 1 ,860,679 1 ,806,369 54,310
Other services and charges 8,200 8,200
Capital outlay 35,000 565,570 525,648 39,922
Debt service 1 09,280 1 07,910 1 07,907 3
Total sheriff 9,465,991 1 0,041 ,627 9,664,983 376,644
Constable # 1
Salaries 1 8,723 1 8,723 1 8,723
Fringe benefits 8,050 8,050 7,771 279
Operating expenditures 600 600 1 56 444
Capital outlay 1 ,244 1 ,244
Total constable # 1 27,373 28,61 7 27,894 723
Constable # 2
Salaries 1 9,033 1 9,033 1 9,033
Fringe benefits 8,109 8,109 7,9 1 7 1 92
Total constable # 2 29,742 32,986 32,776 210
Constable # 3
Salaries 1 8,503 1 8,503 1 8,503
Fringe benefits 7,265 7,265 7,21 7 48
Operating expenditures 1 ,800 3,800 3,71 5 85
Capital outlay 2,244 2, 1 73 71
Total constable # 3 27,568 31 ,81 2 31 ,608 204
Constable # 4
Salaries 18,503 1 8 ,503 1 8,503
Fringe benefits 3,473 3,473 3,471 2
Operating expenditures 600 2,600 2,420 1 80
Total constable # 4 22,576 25,820 25,638 1 82
Non-departmental
Other services and charges
Emergency management 25,000 25,712 25,71 2
CitylCounty interlocal agreement 470,000 403,314 403,272 42
Total non-departmental 495,000 429,026 428,984 42
Total public safety 1 0,276,632 1 0,904,910 10,51 5,464 389,446
(continued)
1 06
GENERAL FUND

Current (continued)
Culture and recreation (continued)
Parks and recreation
Salaries $ 58,823 $ 58,923 $ 58,891 $ 32
Fringe benefits 1 8,620 1 9,020 1 8,920 1 00
Operating expenditures 1 9,200 1 9,660 1 6,956 2,704
Capital outlay 1 ,000 1 1 , 540 1 1 ,384 1 56
Total parks and recreation 97,643 1 09 ,143 106, 1 51 2,992
Extension service
Salaries 1 74,270 1 74,270 1 73,520 750
Fringe benefits 44,814 44,814 32,683 12,131
Operating expenditures 1 7,087 20,832 20,254 578
Other services and charges 35,000 32, 1 50 28,084 4,066
Capital outlay 800
Total extension service 271 ,971 272,066 254,541 1 7,525
Non-departmental
Other services and charges
Victoria Public Library 932,307 932,307 932,307
Total culture and recreation 1 ,301 ,921 1 ,313,516 1 ,292,999 20, 5 1 7
Public health
Emergency mgmt. I Flood plain
Salaries 46,234 75,564 74,805 759
Fringe benefits 8,674 20, 1 67 20,1 1 6 51
Operating expenditures 3,665 1 3,842 9,755 4,087
Other services and charges 6,000 3,085 2,9 1 5
Total flood plain management 58,573 1 1 5,573 1 07,761 7,81 2
Total public health 58,573 1 1 5,573 1 07,761 7,8 1 2
Capital outlay 1 56,935 1 55,250 1 ,685
Total expenditures 24,396,644 27,1 39,925 26,254,899 885,026
Excess (deficiency) of revenues over expenditures 1 , 392,518 (859,040) 2,643,061 3,502,101

Sale of assets 5,000 70,270 73,703 3,433
Capital lease proceeds 1 ,41 1 ,079 1 ,4 1 1 ,633 554
Transfers in 270,000 288,974 288,974
Transfers out (1,667,518) (2,251 ,740) (2,251, 389) 351
Total other financing sources (uses) (1,392,518) (481 ,41 7) (477,079) 4,338
Change in fund balance (1,340,457) 2,1 65,982 3,506,439
Fund balance, January 1 6,972 , 1 63 6,972,163 6,972, 1 63
Fund balance, December 31 $ 6,972,163 $ 5,631 ,706 $ 9,1 38,145 $ 3,506,439
1 07
ROAD AND BRIDGE PRECINCT NO. 1
BUDGET AND ACTUAL
Actual Amounts Budget to GAAP

Final Budgetary Differences Actual Amounts
Budget Basis Over (Under) GAAP Basis
REVENUES
Taxes
Current taxes $ 507, 1 42 $ 513, 1 57 $ $ 513,1 57
Delinquent taxes 1 2,000 1 2,568 (40) 1 2,608
Penalty and interest 5,200 6,503 ( 19) 6,522
I ntergovernmental
Vehicle license fees 220,000 229,684 229,684
Additional license fees 1 90,000 204,283 379 203,904
Permits 3,500 1 2,238 1 2,238
I nvestment income
Interest 7,500 30,432 30,432
Miscellaneous 1 00 1 ,033 1 ,033
Total revenues 945,442 1 , 009,898 320 1 ,009,578
EXPENDITURES
Current
Salaries 413,3 1 1 41 1 ,6 14 (307) 41 1 ,921
Fringe benefits 1 37,691 1 32,342 (203) 1 32,545
Operating expenditures 31 7,860 309, 1 33 2,482 306,651
Other services and charges 2,1 50 2,024 2,024
Capital outlay 1 54,289 1 54,169 1 54,169
Debt service 31 , 530 30,885 30,885
Total expenditures 1 ,056,831 1 ,040,167 1 ,972 1 ,038,1 95
over expenditures (1 1 1 , 389) (30,269) (1 , 652) (28,61 7)
Sale of assets 30,100 30,000 30,000
Capital lease proceeds 81 ,789 81 ,789 81 , 789
Transfers out (50,000) (50,000) (50,000)
Total other financing sources (uses) 61 ,889 61 ,789 61 ,789
Change in fund balance (49,500) 31 ,520 (1 ,652) 33,172
Fund balance, January 1 31 8,599 31 8,599 55, 1 29 263,470
Fund balance, December 31 $ 269,099 $ 350, 1 1 9 $ 53,477 $ 296,642
108
BUDGET AND ACTUAL

REVENUES
Taxes
Current taxes $ 41 4,935 $ 41 9,856 $ $ 419,856
Delinquent taxes 1 0,000 1 0,283 (33) 1 0,31 6
Penalty and interest 4,000 5,321 ( 1 5) 5,336
I ntergovernmental
Additional license fees 1 80,000 1 84,828 344 1 84,484
Permits 3,500 1 2 ,238 1 2,238
Investment income
I nterest 20,000 24,783 24,783
Miscellaneous 1 00 1 63 1 63
Total revenues 852,535 887 , 1 56 296 886,860
EXPENDITURES
Current
Salaries 348,638 341 ,938 (256) 342 , 1 94
Fringe benefits 1 1 5,398 1 1 2,827 (42) 1 1 2,869
Operating expenditures 352,932 335,800 657 335,143
Other services and charges 1 3,200 1 0,861 1 0,861
Capital outlay 38,000 36,707 36,707
Total expenditures 868,168 838, 1 33 359 837,774
over expenditures (1 5,633) 49,023 (63) 49,086
Sale of assets 1 00
Transfers out (50,000) (50,000) (50,000)
Total other financing sources (uses) (49,900) (50,000) (50,000)
Change in fund balance (65,533) (977) (63) (914)
Fund balance, January 1 274, 1 53 274, 1 53 57,931 21 6,222
Fund balance, December 31 $ 208,620 $ 273,176 $ 57,868 $ 21 5,308
1 09
BUDGET AND ACTUAL

REVENUES
Taxes
Current taxes $ 41 4,935 $ 41 9,856 $ $ 41 9,856
Delinquent taxes 10,000 1 0,283 (33) 1 0,316
Intergovernmental
Vehicle license fees 220,000 229,684 (3,668) 233,352
Additional license fees 1 80,000 1 84,828 4,0 1 1 1 80,817
Permits 3,500 1 2,238 1 2,238
I nvestment income
Interest 32,600 4 1 , 1 75 4 1 , 1 75
Miscellaneous 1 5,100 1 6,779 304 1 6,475
Total revenues 880,135 920, 1 64 598 91 9,566
EXPENDITURES
Current
Salaries 400,685 392,818 ( 1 7) 392,835
Fringe benefits 1 32,081 1 26,894 (61 ) 1 26,955
Operating expenditures 364,465 331 ,703 (14,283) 345,986
Other services and charges 8,200 6,334 6,334
Capital outlay 30,734 30,733 30,733
Total expenditures 936 ,165 888,482 (14,361) 902,843
over expenditures (56,030) 31 ,682 14,959 1 6,723
Sale of assets 1 00
Transfers out (50,000) (50,000) (50,000)
Change in fund balance (1 05,930) (18,318) 14,959 (33,277)
Fund balance, January 1 559, 1 94 559, 1 94 50,400 508,794
Fund balance, December 31 $ 453,264 $ 540,876 $ 65,359 $ 475, 51 7
110
BUDGET AND ACTUAL

REVENUES
Taxes
Current taxes $ 507,142 $ 51 3,1 57 $ $ 51 3,1 57
Delinquent taxes 1 2,000 1 2,568 (40) 1 2,608
Penalty and interest 5,200 6,504 (19) 6,523
Intergovernmental
Additional license fees 1 90,000 204,283 379 203,904
Permits 3,500 1 2,238 1 2,238
Investment income
Interest 23,000 28,639 28,639
Miscellaneous 1 0 , 1 00 1 0 , 1 94 (1 64) 10,358
Total revenues 970,942 1 ,01 7,267 1 56 1 ,0 1 7, 1 1 1
EXPENDITURES
Current
Salaries 422,046 408,278 (913) 409, 191
Fringe benefits 1 28,447 1 1 6,659 (432) 1 1 7,091
Operating expenditures 377,769 364,351 (7,235) 37 1 , 586
Other services and charges 1 ,1 50 762 762
Capital outlay 21 2,1 80 1 20,764 1 20,764
Total expenditures 1 , 1 41 , 592 1 ,010,814 (8,580) 1 ,01 9,394
over expenditures (170,650) 6,453 8,736 (2,283)
Sale of assets 1 00
Transfers out (50,000) (50,000) (50,000)
Change in fund balance (220,550) (43,547) 8,736 (52,283)
Fund balance, January 1 321 ,559 321,559 52, 1 00 269,459
Fund balance, December 31 $ 101 ,009 $ 278,0 1 2 $ 60,836 $ 21 7, 1 76
111
ROAD BONDS SINKING FUND
BUDGET AND ACTUAL

REVENUES
Taxes
Current taxes $ 285, 1 33 $ 288, 3 1 5 $ $ 288,315
Delinquent taxes 1 0,000 7,806 (22) 7,828
Penalty and interest 4,400 3,806 (8) 3,8 1 4
Investment income
Interest 3,000 4,391 4,391
Total revenues 302,533 304,318 (30) 304,348
EXPENDITURES
Debt service
Principal retirement 280,000 280,000 280,000
Interest and fiscal charges 74,246 74, 1 60 500 73,660
Total expenditures 354,246 354,160 500 353,660

over expenditures (51 ,713) (49,842) (530) (49,31 2)

(USES)
Transfers in 26,872 26,965 26,965

(uses) 26,872 26,965 26,965
Change in fund balance (24,841 ) (22,877) (530) (22,347)

Fund balance, January 1 73,802 73,802 653 73,149
Fund balance, December 31 $ 48,961 $ 50,925 $ 1 23 $ 50,802
Explanation of d ifferences:
112
JAIL BONDS SINKING FUND
BUDGET AND ACTUAL

REVENUES
Taxes
Current taxes $ 402,989 $ 407,473 $ $ 407,473
Delinquent taxes 1 4,000 1 1 , 1 25 (35) 1 1 ,1 60
Penalty and interest 6,300 5,41 8 (14) 5,432
Investment income
Interest 4,000 3,622 3,622
Total revenues 427,289 427,638 (49) 427,687
EXPENDITURES
Debt service
Interest and fiscal charges 39,549 39,176 39,176
Total expenditures 459,549 459,1 76 459, 1 76
Change in fund balance (32,260) (31 ,538) (49) (31 ,489)
Fund balance, January 1 53,660 53,660 (24) 53,684

Fund balance, December 31 $ 21 ,400 $ 22, 1 22 $ (73) $ 22, 1 95
113
COURTHOUSE RESTORA TlON BONDS SINKING FUND
BUDGET AND ACTUAL

REVENUES
Taxes
Current taxes $ 281 ,332 $ 284,469 $ $ 284,469
Delinquent taxes 1 0,000 7,807 (26) 7,833
Penalty and interest 4,400 3,799 (1 1 ) 3,810
Investment income
Interest 3,000 3,627 3,627
Total revenues 298,732 299,702 (37) 299,739
EXPENDITURES
Debt service
Interest and fiscal charges 92,163 92,1 63 (162) 92,325
Total expenditures 332,163 332,163 (1 62) 332,325
Change in fund balance (33,431 ) (32,461 ) 1 25 (32,586)
Fund balance, January 1 52,320 52,320 (12) 52,332

Fund balance, December 31 $ 1 8,889 $ 1 9,859 $ 113 $ 1 9,746
114
BRIDGE STREET ANNEX SINKING FUND
BUDGET AND ACTUAL

REVENUES
Taxes
Current taxes $ 429,601 $ 434,382 $ $ 434,382
Delinquent taxes 1 5,000 1 1 ,898 (39) 1 1 ,937
I nvestment income
Interest 3,800 6,094 6,094
Total revenues 455,001 458,165 (54) 458,2 1 9
EXPENDITURES
Debt service
I nterest and fiscal charges 1 73,763 1 72,762 1 72,762
Total expenditures 498,763 497,762 497,762
Change in fund balance (43,762) (39,597) (54) (39,543)

Fund balance, January 1 73,586 73,586 (21 ) 73,607
Fund balance, December 31 $ 29,824 $ 33,989 $ (75) $ 34,064
115
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 Clerk·Trusts Fund - Accounts for monies held by the County Clerk in trust for various
minors of the County of Victoria.
Criminal District Attorney Fund - Accounts for the merchants' portion of collections made on
"hot" checks.
District Clerk·Trusts Fund - Accounts for monies held by the District Clerk in trust for various
minors of the County of Victoria.
D istrict Clerk·Chiid Support Fund Records the collection and disbursement of child support
-
payments made by residents of Victoria County.
Clerk's Special Fund - Accounts for the collection and disbursement of excess fees collected by
both the County and District Clerks.
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-of-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·Coliector Fund - Accounts for the collection of ad valorem taxes, various vehicle
taxes, and sales taxes by the County Tax Assessor-Collector. These monies are remitted to
other various County funds and the State as collected.
Juvenile Restitution Fund Records the receipt and disbursement of monies collected from
-
juvenile offenders and paid to owners of damaged property.
Special Services Fund Records confiscated drug monies prior to their being awarded, by
-
action of the court, to various individuals and/or County departments.
Municipal Court Fund - Accounts for the receipt of monies collected from City of Victoria
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 Com ptroller's Office to
provide financial assistance to d istrict attorneys for office expenses, supplies, and personnel.
116
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Balance at Balance at
Beginning End
of Year Additions Deletions of Year
COUNTY CLERK·TRUSTS
ASSETS
Cash and cash equivalents $ 1 ,452,980 $ 2,324,681 $ 2,91 9,419 $ 858,242
LIABILITIES
Accounts payable $ 1 ,452,980 $ 2,324,681 $ 2,919,419 $ 858,242
CRIMINAL DISTRICT ATTORNEY

ASSETS
Cash and cash equivalents $ 7,236 $ 938,601 $ 945,837 $
LIABILITIES
Accounts payable $ 7,236 $ 938,601 $ 945,837 $
DISTRICT CLERK·TRUSTS
ASSETS
Cash and cash equivalents $ 2,468,647 $ 1 ,305,446 $ 1 ,307,996 $ 2,466,097
LIABILITIES
Accou nts payable $ 2,468,647 $ 1 ,305,446 $ 1 ,307,996 $ 2,466,097
DISTRICT CLERK·CHILD SUPPORT

ASSETS
Cash and cash equivalents $ 1 1 ,702 $ 475,201 $ 475,201 $ 1 1 ,702
LIABILITIES
Accounts payable $ 1 1 ,702 $ 475,201 $ 475,201 $ 1 1 ,702
CLERK'S SPECIAL
ASSETS
Cash and cash equivalents $ 25 $ 20,691 $ 20,661 $ 55
Other receivables 18 66 18 66
$ 43 $ 20,757 $ 20,679 $ 121
LIABILITIES
Accounts payable $ 43 $ 20,757 $ 20,679 $ 1 21
JAIL INMATE TRUST FUND

ASSETS
Cash and cash equivalents $ 1 6,570 $ 620,479 $ 616,350 $ 20,699
LIABILITIES
Accounts payable $ 1 6,570 $ 620,479 $ 61 6,350 $ 20,699
(continued)
117
A GENCY FUNDS
COMBINING STA TEMENT OF CHANGES IN ASSETS AND LIABILITIES
Beginning End
SHERIFF SPECIAL
ASSETS
Cash and cash equivalents $ 1 ,000 $ 265,270 $ 263,370 $ 2,900
Other receivables 250 250
Total assets $ 1 ,250 $ 265,270 $ 263,620 $ 2,900
LIABILITIES
Accounts payable $ 1 ,250 $ 265,270 $ 263,620 $ 2,900
STATE FEES
ASSETS
Cash and cash equivalents $ 1 98,843 $ 1 , 294,961 $ 1 , 206,026 $ 287,778
Other receivables 2,484 4,490 2,484 4,490
Total assets $ 201 ,327 $ 1 ,299,451 $ 1 ,208,51 0 $ 292,268
LIABILITIES
Accounts payable $ 201 , 327 $ 1 ,299,451 $ 1 , 208,51 0 $ 292,268
JUSTICE OF THE PEACE-SPECIAL

ASSETS
Cash and cash equivalents $ 226 $ 29,332 $ 29,305 $ 25 3
LIABILITIES
Accounts payable $ 226 $ 29,332 $ 29,305 $ 253
TAX ASSESSOR-COLLECTOR
ASSETS
Cash and cash equivalents $ 3,222,183 $ 8 1 , 724,294 $ 81 ,831 ,01 9 $ 3,1 1 5,458
Other receivables 54,945 54,945
Total assets $ 3,277,128 $ 81 ,724,294 $ 81 ,831 ,019 $ 3,1 70,403
LIABILITIES
Accounts payable $ 1 ,256 $ 78,555,304 $ 78,555,147 1 ,4 1 3
Due to other governments 3,275,872 3,1 68,990 3,275,872 3,1 68,990
Total liabilities $ 3,277,1 28 $ 81 ,724,294 $ 81 ,831 ,019 $ 3,1 70,403
JUVENILE RESTITUTION
ASSETS
Cash and cash equivalents $ 41 5 $ 9,897 $ 10,300 $ 12
LIABILITIES
Accounts payable $ 41 5 $ 9,897 $ 1 0,300 $ 12
(continued)
118
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Beginning End
SPECIAL SERVICES
ASSETS
Cash and cash equivalents $ 67,347 $ 1 27,078 $ 36,726 $ 1 57,699
Seized assets 6,886 41 ,790 5,598 43,078
Total assets $ 74,233 $ 1 68,868 $ 42,324 $ 200,777
LIABILITIES
Accounts payable $ 74,233 $ 1 68,868 $ 42,324 $ 200,777
MUNICIPAL COURT FUND

ASSETS
Cash and cash equivalents $ 1 3,656 $ 241 ,208 $ 237,352 $ 1 7,512
Other receivables 7,522 3,040 7,522 3,040
Total assets $ 2 1 , 1 78 $ 244,248 $ 244,874 $ 20,552
LIABILITIES
Accounts payable $ 2 1 , 1 78 $ 244,248 $ 244,874 $ 20,552
JUVENILE INMATE TRUST FUND

ASSETS
Cash and cash equivalents $ 748 $ 2,507 $ 2,522 $ 733
LIABILITIES
Accounts payable $ 748 $ 2,507 $ 2,522 $ 733
CDA STATE JUDICIARY FUND

ASSETS
Due from other governments $ 8, 1 38 $ 3,604 $ 8,1 38 $ 3,604
Other receivables 4,525 4,525
Total assets $ 1 2,663 $ 3,604 $ 1 2,663 $ 3,604
LIABILITIES
Accounts payable $ 1 2,663 $ 3,604 $ 1 2,663 $ 3,604
TOTALS · ALL AGENCY FUNDS

ASSETS
Cash and cash equivalents $ 7,461 ,578 $ 89,379,646 $ 89,902,084 $ 6,939,140
Other receivables 69,744 7,596 1 4,799 62,541
Due from other governments 8,138 3,604 8, 1 38 3,604
Seized assets 6,886 4 1 , 790 5,598 43,078
Total assets $ 7,546,346 $ 89,432,636 $ 89,930,619 $ 7,048,363
LIABILITIES
Accounts payable $ 4,270,474 $ 86,263,646 $ 86,654,747 $ 3,879,373
Due to other governments 3,275,872 3,1 68,990 3,275,872 3,1 68,990
Total liabilities $ 7,546,346 $ 89,432,636 $ 89,930,619 $ 7,048,363
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 27
Debt Capacity
These schedules present information to help the reader assess the affordability of the
County's current levels of outstanding debt and the County's ability to issue additional
debt in the future. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 40
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 45
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 47
1 20
NET ASSETS BY COMPONENT (1)
Last four fiscal years
Fiscal Year
2003 2004 2005 2006
net of related debt $ 8,999,425 $ 1 2,559,708 $ 1 4,01 9,641 $ 1 3,930,982
Restricted 1 51 , 540 357,245 727,782 71 3,370
Unrestricted 7,275,730 8,764,650 1 0,092,763 1 3,929,933
Total governmental activities net assets $ 16,426,695 $ 21 ,681 ,603 $ 24,840,186 $ 28,574,285
net of related debt $ 5,830, 794 $ 7,020,823 $ 8,662,029 $ 9,540,853
Unrestricted 647,764 294,558 (1 5,726) ( 1 27,521)
Total business-type activities net assets $ 6,478,558 $ 7,315,381 $ 8,646,303 $ 9,41 3,332
Primary government
net of related debt $ 1 4,830,219 $ 1 9,580,531 $ 22,681, 670 $ 23,471,835
Restricted 1 51 ,540 357,245 727,782 71 3,370
Unrestricted 7,923,494 9,059,208 10,077,037 1 3,802,4 1 2
Total primary government activities net assets $ 22,905,253 $ 28,996,984 $ 33,486,489 $ 37,987,61 7
(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
CHANGES IN NET ASSETS (1)
Fiscal Year
2003 2004 2005 2006
Expenses
General government $ 1 3,173,038 $ 1 3,237,845 $ 1 4, 1 49, 10 1 $ 14, 575,456
Public safety 9,285,840 9,333,043 9,929,954 1 0,942,218
Streets and highways 3,414,048 3,255,108 4,232,306 4,141 ,588
Culture and recreation 1 ,248,392 1 , 1 95,419 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 548,963 446,6 1 2 430,889 390,875
Total expenses 31 ,21 7,836 31 ,052,471 33,688,979 35,251 ,363
Program revenues
Charges for services
General government 5,342,455 4,933,859 4,589,676 5, 295,474
Public safety 3,884,817 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
Culture and recreation 2,540
Public health 353,498 530,418 375,485 444,626
Operating grants and contributions 3,277,410 3,280,496 3,227,144 3,41 0,606
Capital grants and contributions 350,313 509,910 695,671 7,584
Total program revenues 1 5 , 1 03,626 1 4,768,638 1 4,039,869 1 4,396,038
Total governmental activities net program

(expense) revenue (16, 1 1 4,210) (1 6,283,833) (1 9,649,1 1 0) (20,855,325)
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 204,454 215,784 21 6,996
Grants and contributions not restricted to
specific programs 10,847 1 1 2 ,354 1 24, 1 1 8 232,154
Unrestricted 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 (340,017) (238,457) (130,000) (1 30,000)
Total general revenues and other changes in
net assets 1 8,701 ,441 21 ,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, 734,099
1 22
Fiscal Year
2003 2004 2005 2006
Expenses
Airport $ 2,1 88,872 $ 2,328,426 $ 2,301 ,212 $ 2,603,568
Navarro Project 503,268 466,392 481 ,568 512,537
Commisary 240 , 1 92 80,541 73,431 1 03,240
Total expenses 2,932,332 2,875,359 2,856,2 1 1 3,21 9,345
Program revenues
Charges for services
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 1 92,81 7 1 ,323,954 1 ,773,31 1 1 ,483,028
Total program revenues 2,431 ,61 6 3,458,395 3,950 , 1 90 3,829,91 1
Total business-type activities net program

(expense) revenue (500,716) 583,036 1 ,093,979 61 0,566
General revenues and other changes in net

assets
Unrestricted 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 340,01 7 238,457 1 30,000 1 30,000
Total general revenues and other changes in
net assets 379,217 253,787 1 53,499 1 56,463
Total business-type activities change in net

assets $ ( 1 2 1 , 499) $ 836,823 $ 1 , 247,478 $ 767,029
Total primary government change in net

assets $ 2,465,732 $ 5,573, 173 $ 4,278,238 $ 4,501 , 1 28
(1) Accrual basis of accounting
NOTE: The County began to report accrual information when it implemented GASB Statement 34
in fiscal year 2003.
1 23
FUND BALANCES, GOVERNMENTAL FUNDS (1)
Fiscal Year
2003 2004 2005 2006
General Fund
Reserved
Advances $ 494,61 0 $ 297,670 $ 362,219 $ 362,219
Adult Probation 31 , 1 08 33,999 24,51 3 26,882
Deferred expenditures 275,91 3
Unreserved 2,895,61 2 5,641 ,834 8,1 39,621 1 1 ,273,877
Total general fund $ 3,421 ,330 $ 5,973,503 $ 8,526,353 $ 1 1 ,938,891
All Other Governmental Funds

Reserved
Debt service $ 151 ,540 $ 212,187 $ 252,772 $ 1 26,807
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
Total all other governmental funds $ 4,227,237 $ 4,1 37,693 $ 3,01 7,970 $ 2,429,861
(1) Modified accrual basis of accounting
1 24
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS (1)
Fiscal Year
2003 2004 2005 2006
Revenues
Taxes $ 1 7,902,538 $ 1 9,855,785 $ 21 ,232, 1 78 $ 23,030,801
Fees of office and user fees 2,207,983 2,595,533 2,472,287 2,820,340
Intergovernmental 1 0,546,682 10,035,336 9,830,274 9,432,658
Fines and forfeitures 1 ,619,602 1 ,403,048 1 ,463,626 1 ,589,568
I nvestment income 223,670 272,257 585,742 1 ,028,984
Licenses and permits 40,053 36,451 33,524 37,074
Contributions 1 0,847 36,466 1 6,085 1 3,389
Miscellaneous 1 ,470,100 1 ,1 67,551 867,932 8 1 1 ,325
Total revenues 34,021 ,475 35,402,427 36,501 ,648 38,764, 1 39
Expenditures
Current
General government 1 3,068,813 1 3,277,443 1 4,278 , 1 31 1 4,921 ,068
Public safety 8,61 4,925 8,963,262 9,283,373 10,682,752
Highways and streets 3,331 , 1 07 3,808,439 4,337,766 4,327,674
Culture and recreation 1 ,1 90,649 1 , 1 57,450 1 ,241 ,058 1 ,298,407
Public health 3,554,074 3,489,244 3,71 2,723 3,903,367
Capital outlay 2,971 ,375 542,487 643,352 1 55,250
Debt service
Principal retirement 975,000 1 , 1 60,000 1 ,225,000 1 ,265,000
I nterest and fiscal charges 592,782 440,642 41 7,093 377,923
Bond issue costs 84,130
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 proceeds 1 82,393 1 39,923 1 ,493,422
Capital lease refinancing proceeds 2,351 ,458
Capital lease refinancing payments (2,272,716)
Sale of assets 1 08,245 392,955 303,975 1 03,309
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) (2,58 1 , 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 $ (379,733) $ 2,936,623 $ 1 ,433, 1 27 $ 2,824,429
Debt service as a percentage of
noncapital expenditures � 5 . 1 4% 4.88% �
(1 ) Modified accrual basis of accounting
1 25
TAX REVENUES BY SOURCE, GO VERNMENTAL FUNDS (1)
Last ten fiscal years
Fiscal Penalty
Year Ad Valorem and Interest Sales Total
1 997 $ 9,928,357 $ 88,924 $ 4,074,422 $ 14,091 ,703
1 998 1 0,207,928 98,641 4,382,896 1 4,689,465
1999 1 0,678,829 1 00,554 4,503, 101 1 5,282,484
2000 1 0,946,670 1 1 0,413 4,729,825 1 5,786,908
2001 1 1 ,271 ,769 1 1 6,602 4,992,320 16,380,691
2002 12,230,688 1 1 8,2 1 1 4,858,298 1 7,207,197
2003 12,700,002 1 33,220 4,921 ,323 1 7,754,545
2004 14,1 03,669 143, 1 47 5,546,861 19,793,677
2005 1 5,099,157 1 99,308 6,005,659 21 ,304,124
2006 1 5,676,262 200,983 7 , 1 53,556 23,030,801
Change
1997-2006 57.89% 1 26.02% 75.57% 63.44%
(1 ) Fiscal years 2005 and 2006 revenues are reported on the modified accrual basis of accounting.
Fiscal years 2004 and prior are reported on the budgetary (cash) basis of accounting.
NOTE: Property tax rates have remained stable because of growth in property tax values and the
addition of new construction values.
Sales tax revenues increased due to the increase in the revenue base.
126
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (1)
Real Property Personal Property
Commercial and Rural-

Fiscal Tax Residential Industrial Underdeveloped
Year Roll Property Property Property Business Other
1 997 1 996 $ 795,321 ,500 $ 1 ,627,144, 1 76 $ 314,20 1 , 1 60 $ 831 ,645,390 $ 37,208,1 20
1 998 1 997 821 ,360,4 1 0 1 ,638,077,81 8 31 6,279,760 876,321 ,300 46,452,830
1 999 1 998 873,496,360 1 ,708,1 57,760 31 7,091 ,980 883,545,390 50,696,790
2000 1 999 1 ,370,867,9 1 0 1 ,390,4 1 1 ,865 328,617,480 81 3,040,260 36,773,080
2001 2000 1 ,462,005, 1 1 0 1 ,402,923,085 315,673,240 829,047,241 50,523,510
2002 2001 1 ,51 5,61 0,7 1 0 1 ,328, 121 ,065 31 5,270,880 892,710,483 1 63,977,230
2003 2002 1 ,625,755,010 1 , 307,594,240 31 9,775,450 910,1 36,402 10 1 ,305,210
2004 2003 1 ,670,101 ,235 1 ,285,202,470 320,599,730 938,958,351 92,863,880
2005 2004 1 ,782,81 1 ,934 1 ,237,970,296 335,934,884 1 ,035,824, 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
(1 ) Values on p roperty for maintenance and operation and interest and sinking taxes.
Property exemptions d iffer 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 $100 of assessed value.
SOURCE: Victoria County Tax Assessor/Collector
1 27
Total Estimated Assessed
Less: Total Taxable Direct Actual Value as a
Tax Exempt Assessed Tax Taxable Percentage of
Real Property Value Rate Value Actual Value
$ 694,489,720 $ 2,91 1 ,030,626 $ 0.291 0 $ 2,91 1 ,030,626 1 00.00%
701 ,772,290 2,996,719,828 0.2810 2,996,719, 828 1 00.00%
665, 7 1 1 ,393 3,1 67,276,887 0.2810 3,1 67,276,887 1 00.00%
696,442,858 3,243,267,737 0.2810 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 58,8 1 8 0.3201 3,557,1 58,818 1 00.00%
754,830,546 3,552,895, 1 20 0.3536 3,552,895,1 20 1 00.00%
8 1 2,709,653 3,7 1 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 28
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (1)
Real Property Personal Property
Commercial and Rural-

Fiscal Tax Residential Industrial Underdeveloped
Year Roll Property Property Property Business Other
1 997 1996 $ 795,321 ,500 $ 1 ,627, 1 44,1 76 $ 314,201 , 1 60 $ 831 ,645,390 $ 37,208 , 1 20
1 998 1 997 821 ,360,41 0 1 ,638,077,81 8 316,279,760 875,871 ,300 46,452,830
1 999 1 998 873,496,360 1 ,708,157,760 317,091 ,980 883,545,390 50,696,790
2000 1 999 1 ,370,867,91 0 1 ,390,41 1 ,865 328,61 7,480 81 3,040,260 36,773,080
2001 2000 1 ,462,005,1 1 0 1 ,402,923,085 315,673,240 829,047,241 50,523,510
2002 2001 1 ,51 5,61 0,710 1 ,328 ,121 ,065 315,270,880 892,71 0,483 1 63,977,230
2003 2002 1 ,625,755,010 1 ,307,594,240 31 9,775,450 9 1 0,1 36,402 1 01 ,305,210
2004 2003 1 ,670,101 ,235 1 ,285,202,470 320,599,730 938,958,351 92,863,880
2005 2004 1 ,782,81 1 ,934 1 ,237,970,296 335,934,884 1 ,035,824,147 1 32,1 33,780
2006 2005 1 ,905,321 ,796 1 ,209,303,582 337,207,302 1 ,1 56,136 , 1 79 1 58,759,680
(1 ) Values on property for road and bridge taxes.

Property exemptions d iffer from those allowed on maintenance and operation and interest and sinking 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 $100 of assessed value.
129
Total Estimated Assessed
Less: Total Taxable Direct Actual Value as a
Tax Exempt Assessed Tax Taxable Percentage of
Real Property Value Rate Value Actual Value
$ 783,233,680 $ 2,822,286,666 $ 0.0500 $ 2,822,286,666 100.00%
791 ,854,450 2,906,1 87,668 0.0600 2,906,1 87,668 1 00.00%
760,501 , 1 1 1 3,072,487, 1 69 0.0600 3,072,487,1 69 100.00%
793,443,1 06 3,1 46,267,489 0.0600 3, 1 46,267,489 100.00%
836,884,962 3,223,287,224 0.0550 3,223,287,224 100.00%
797,088,372 3,418,601 , 996 0.0450 3,418,601 ,996 1 00.00%
81 7,364,812 3,447,201 ,500 0.0400 3,447,201 ,500 100.00%
868,888,776 3,438,836,890 0.0450 3,438,836,890 100.00%
926,295,902 3,598,379, 1 39 0.0450 3,598,379, 1 39 100.00%
924,708,177 3,842,020,362 0.0500 3,842,020,362 100.00%
1 30
DIRECT AND OVERLAPPING PROPERTY TAX RATES
PER $100 OF ASSESSED VALUE
County Direct Rates Overlapping Rates

Victoria
Fiscal Debt Road and City of Navigation Junior Victoria
Year Service General Bridge Total Victoria District College I.S.o.
1 997 $ 0.061 3 $ 0.2297 $ 0.0500 $ 0.3410 $ 0.6900 $ 0.0132 $ 0.1 500 $ 1 .4250
1 998 0.0449 0.2361 0.0600 0.3410 0.7000 0.01 31 0. 1 422 1 .4250
1 999 0.0449 0.2361 0.0600 0.3410 0.7000 0.01 23 0 .141 3 1 .4850
2000 0.0299 0.251 1 0.0600 0.341 0 0.7000 0.0418 0.1 394 1 .4750
2001 0.0299 0.2561 0.0550 0.3410 0.7000 0.041 4 0.1 394 1 . 5285
2002 0.0457 0.2578 0.0450 0.3485 0.7000 0.0401 0.1 394 1 .5510
2003 0.0437 0.2764 0.0400 0.3601 0.7000 0.0404 0.1 394 1 .5535
2004 0.0461 0.3075 0.0450 0.3986 0.7000 0.0402 0 .1491 1 .5535
2005 0.0435 0.31 01 0.0450 0.3986 0.6900 0.0386 0.1461 1 .5535
2006 0.0368 0.31 1 8 0.0500 0.3986 0.6900 0.0369 0.1 4 1 6 1 .5535
SOURCE: Victoria County Appraisal District
13 1
Overlapping Rates
Quail
Bloomington Industrial Nursery McFaddin W.C. 1 . 0 W.C.I.D. V.C.D.D. V.C.D.D. Creek
1.8.D. 1.8.0. 1.8.0. 1.8.0. #1 #2 #2 #3 M.U.D. Total
$ 1 .3800 $ 1 .4400 $ 1 .3531 $ 1 . 5000 $0. 3645 $ 1 .0950 $ 0.0939 $0.0500 $ 0 . 1 9 1 5 $1 0.0872
1 .4400 1 . 4400 1 . 3850 1 .4400 0.6446 1 .1 267 0.0972 0.0504 0.1964 1 0.441 6
1 .4650 1 .4400 1 .4100 1 .5000 0.6450 1 .1 71 0 0.0972 0.0500 0.1 885 1 0.6463
1 .5490 1 .4700 1 .3350 1 .5000 0.6629 1 .1 229 0.0972 0.0500 0.1 900 1 0.6742
1 .5350 1 .6200 1 .3950 1 .3650 0.6427 1 .0793 0.0976 0.0500 0.1 900 1 0.7249
1 .5800 1 .9894 1 .3850 1 .2400 0.6551 1 .0880 0.0979 0.0500 0.1 900 1 1 .0544
1 .6630 1 .9387 1 .3700 1 .5000 0.6262 1 .0332 0.1 103 0.0500 0.1 900 1 1 .2748
1 .6672 1 .8485 0.8998 1 .5000 0.6146 1 .0 1 87 0.1 241 0.0500 0.1 937 1 0.7580
1 .6433 1 .7361 1 .0250 1 .4500 0.6162 0.991 1 0.1 247 0.0477 0.1 896 1 0.6505
1 .6433 1 .5893 1 .3700 1 .4600 0.4947 0.90 1 6 0.1 240 0.4600 0.1 840 1 1 .0475
1 32
PRINCIPAL PROPERTY TAXPA YERS
(UNAUDITED)
Current Year and Nine Years Ago
2006
Percentage
of Total County
Taxable Taxable
Assessed Assessed
Taxpayer Valuation Valuation
Invista $ 461 ,647,705 1 1 .66%

AEP Texas Central Co 55,278,810 1 .40%
Equistar Chemicals, LP 52,20 1 ,250 1 .32%
Dupont E I De Nemours 40,473,080 1 .02%
Air Liquide America Corp. 30,140,91 0 0.76%
Southwestern Bell Telephone Co. 28,900,340 0.73%
Union Gas Operating Co. 27,453,520 0.69%
Tyco Plasitics LP 22,957,100 0.58%
H S Victoria LP 20,746,590 0.52%
Victoria Hospital LLC 1 9,975,140 0.50%
$ 759,774,445 19.19%
1 997
Percentage
of Total County
Taxable Taxable
Assessed Assessed
Taxpayer Valuation Valuation
E.I Dupont De Nemours and Company $ 545,927,200 1 5. 1 5%

Central Power and Light 66,370,730 1 .84%
Lyondell Petrochemical Company 63,855,200 1 .77%
Southwestern Bell Telephone Company 43,359,720 1 .20%
Air Liquide America Corporation 24,275,990 0.67%
New York Life Insurance Company 22,499,780 0.62%
Health Care Property Investors 14,367,220 0.40%
Plaza Associates 1 4,366,900 0.40%
Victoria Bank and Trust Company 1 3,996,210 0.39%
Victoria Regional Medical Center 1 3,566,130 0.38%
$ 822,585,080 22.82%
SOURCE: Victoria County Tax AssessorlColiector
1 33
PROPERTY TAX LEVIES AND COLLECTIONS (1)
Last three fiscal years
Taxes Levied Collections within the

for the Fiscal Year of the Levy
Fiscal Fiscal Year Total Percentage
Year (Original Levy) Adjustments Adjusted Levy Amount of Levy
2004 $ 1 2, 565, 1 42 $ 1 3,930 $ 1 2,579,072 $ 1 2,297,626 97.76%
2005 1 3, 1 28,31 1 293,542 1 3,421 ,853 1 3,1 34,288 97.86%
2006 1 3,807, 1 2 7 (69,838) 1 3, 737,289 1 3,471 ,286 98.06%
(1 ) Tax levies and collections on maintenance and operation and interest and sinking only.
NOTE: Information for fiscal years 1 997 through 2003 was not readily available.
1 34
Collections Total Collections to Date
in Subsequent Percentage
Years Amount of Levy
$ 21 3,258 $ 1 2,51 0,884 99.46%
1 83,125 1 3,31 7,4 1 3 99.22%
69,340 1 3,540,626 98.57%
1 35
PROPERTY TAX LEVIES AND COLLECTIONS (1)
Last three fiscal years
Taxes Levied Collections within the

for the Fiscal 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 , 549,147 $ 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 (10,937) 1 ,91 0,462 1 , 875,102 98.1 5%
(1 ) Tax levies and collections on road and bridge only.
SOURCE: Victoria County Tax AssessorlColiector
1 36
Collections Total Collections to Date
in Subsequent Percentage
Years Amount of Levy
$ 25, 1 1 2 $ 1 , 540,910 99.47%
21 ,609 1 ,642,1 58 99.25%
9,286 1 ,884,388 98.64%
1 37
SALES TAX REVENUE
Fiscal Year Collections
1 997 $ 4,074,422
1 998 4,382,896
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
NOTE: Collections reported on the budgetary (cash) basis of accounting.
Detailed information related to sales tax collections will be provided in subsequent years.
The increase in sales tax revenue is due to an increase in the revenue base.
1 38
DIRECT AND OVERLAPPING SALES TAX RA TES
Fiscal Direct Rate Overlapping Rates

Year County City of Victoria State of Texas Total
1 997 0.50% 1 .50% 6.25% 8.25%
1 998 0.50% 1 .50% 6.25% 8.25%
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%
NOTE: 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%.
1 39
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
1 997 $ $ 8,540,000 $ 1 ,650,000 $ 10,1 90,000 0.76% $ 1 25
1 998 1 1 ,970,000 1 ,650,000 1 3,620,000 0.94% 1 65
1 999 1 1 ,200,000 1 ,600,000 1 2,800,000 0.85% 1 56
2000 1 0,375,000 1 , 545,000 1 1 , 920,000 0.73% 1 42
2001 5,000,000 9,485,000 1 ,490,000 1 5,975,000 0.98% 1 89
2002 5,000,000 8,575,000 1 ,425,510 1 5,000,510 0.91 % 1 77
2003 5,000,000 7,71 5,000 1 ,370,000 1 4,085,000 0.82% 165
2004 4,700,000 6,855,000 1 ,305,000 1 2,860,000 0.7 1 % 1 50
2005 4,385,000 5,945,000 1 , 235,000 1 1 ,565,000 N/A 1 35
2006 4,060,000 5,005,000 1 ,1 60,000 1 0,225,000 N/A 119
NOTE: Details regarding the County's outstanding debt can be found in the notes to the
N/A denotes information not available.
1 40
RA TlOS 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 Debt Value Capita
1 997 $ 8,540,000 $ 604,362 $ 7,935,638 0.22% $ 97.25
1 998 1 1 ,970,000 641 ,793 1 1 ,328,207 0.31 % 1 37.06
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 25,218 14,459,782 0.36% 1 70.70
2002 1 3,575,000 1 44,701 1 3,430,299 0.32% 1 58 . 1 3
2003 1 2,71 5,000 1 51 ,540 1 2,563,460 0.29% 1 47 . 1 2
2004 1 1 ,555,000 212,187 1 1 ,342,81 3 0.26% 1 32 . 1 2
2005 1 0, 330,000 252,772 1 0,077,228 0.22% 1 1 7.66
2006 9,065,000 1 26,807 8,938,193 0 . 1 9% 1 03.70
141
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
(UNAUDITED)
December 31, 2006
Percentage Amount
Net Debt Outstanding Applicable Applicable
Date Amount To County To County
Direct Debt:
County of Victoria 1 2/31 /2006 $ 8,938 , 1 93 1 00.00% $ 8,938, 1 93
Overlapping Debt:
City of Victoria 9/30/2006 68,278,81 1 1 00.00% 68,278,81 1
Victoria County Navigation District 1 2/31 /2006 2,215,610 1 00.00% 2,215,610
Victoria Junior College District 8/31/2006 1 8,903,721 1 00.00% 1 8,903,721
Victoria Independent School District 8/31/2006 27,038,893 1 00.00% 27,038,893
Industrial Independent School District 8/31/2006 7,967,032 25.46% 2,028,406
Victoria County Water Control and

Improvement District #1 6/30/2006 938,420 1 00.00% 938,420
Victoria County Water Control and

Improvement District #2 9/30/2006 475,000 1 00.00% 475,000
Total Overlapping Debt 1 25,81 7,487 1 1 9,878,861
Total $ 1 34,755,680 $ 1 28,81 7,054
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 42
LEGAL DEBT MARGIN INFORMA TlON
Fiscal Year
1 997 1 998 1 999 2000
Debt limit $ 900,709,643 $ 923,518, 1 05 $ 957,330 , 1 65 $ 1 ,014,478,137
Total net debt applicable

to limit 1 1 ,995,903 1 1 ,328,207 1 0,491 ,776 1 0,006,9 77
Legal debt margin $ 888,713,740 $ 9 1 2,1 89,898 $ 946,838,389 $ 1 ,004,471 , 1 60
Total net debt applicable to

the limit as a percentage
of debt limit 1 .1 0% 0.99%
1 . 33% 1 .23%
1 43
Fiscal Year
2001 2002 2003 2004 2005 2006
$ 1 ,01 5,043,047 $ 1 ,053,922,592 $ 1 ,066, 1 4 1 , 578 $ 1 ,076,931 , 4 1 7 $ 1 , 1 31 , 1 68,760 $ 1 ,1 9 1 ,682,135
1 4,459,782 1 3,430,299 1 2,563,460 1 1 ,342,81 3 10,077,228 8,938,193
$ 1 ,000,583,265 $ 1 ,040,492,293 $ 1 ,053,578,1 1 8 $ 1 ,065,588,604 $ 1 , 1 21 ,091 ,532 $ 1 , 1 82,743,942
1 .42% 1 .27% 1 .1 8% 1 .05% 0.89% 0.75%
Legal Debt Margin Calculation for Fiscal Year 2006
Assessed value $4,766,728,539
Debt limit 1 ,1 9 1 ,682,135
Debt applicable to limit

General obligation bonds 9,065,000
Less: Debt Service Fund Balance 1 26,807
Total amount of debt applicable to debt limit 8,938, 1 93
Legal debt margin $ 1 , 1 82, 743,942
1 44
DEMOGRAPHIC AND ECONOMIC STA TIS TICS
(UNA UDITED)
(1 ) (2) (2) (3)

Fiscal Personal Per Capita U nemployment
Year Population Income (OOO's) Personal Income Rate
1 997 81 ,600 $ 1 ,346,206 $ 22,220 5.0%
1 998 82,650 1 ,450,755 23,760 4.5%
1 999 82,087 1 ,503,863 24,302 4.2%
2000 84,088 1 ,643, 1 1 8 26,552 3.5%
2001 84,710 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 N/A N/A 5.4%
2006 86, 1 9 1 N/A N/A 4. 1 %
NOTES: NIA denotes information not available
SOURCE: (1) US Census Bureau
(2) U.S. Department of Commerce, Bureau of Economic Analysis - Estimates based on

Victoria County Area statistical data. Data for 2005 and 2006 is not yet available.
(3) U .S. Department of Labor
1 45
PRINCIPAL EMPLO YERS
(UNAUDITED)
Current Year and Nine Years Ago
2006
Percentage
of Total Area
Employer Employees Emplo�ment
Victoria Independent School District 2,2 1 5 5.08%
The Inteplast Group 1 ,700 3.90%
Formosa Plastics 1 ,500 3.44%
Citizens Medical Center 1 ,250 2.87%
DeTar Healthcare System 1 ,004 2.30%
Dow-Seadrift Operations 660 1 .51 %
Alcoa 630 1 .45%
City of Victoria 605 1 .39%
Calhoun Independent School District 600 1 .38%
Koch-Invista (formerly DuPont) 500 1 .1 5%
1 0,664 24.47%
1 997
Percentage
of Total Area
Employer Employees Employment
The Inteplast Group 2,200 5.39%
Victoria Independent School District 2, 1 1 2 5.18%
Formosa Plastics 1 ,507 3.69%
Koch-Invista (formerly DuPont) 1 , 1 50 2.82%
Dow-Seadrift Operations 1 ,042 2.55%
Alcoa 969 2.38%
Citizens Medical Center 801 1 .96%
DeTar Healthcare System 703 1 .72%
City of Victoria 593 1 .45%
Calhoun Independent School District 570 1 .40%
1 1 ,647 28.55°[,
NOTE: Based on Victoria Metropolitan Statistical Area, which includes Victoria,

Calhoun, Dewitt, Lavaca, Gonzales, Jackson and Goliad Counties.
SOURCE: Victoria Economic Development Corporation
146
FULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
2003 2004 2005 2006

Function/Program
General government
County Judge 3 3 3 3
Comissioners' court 1 1 1 1
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 flood/emg, mgmt. and 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 1 1 2
Total 486 472 477 51 1
NOTE: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave),
Full-time-equivalent employment is calculated by dividing total labor hours by 2,080,
Fiscal year 2006 additions were mainly due to the increase in the detention officers in the Sheriff's
department. These additions were necessary to meet the jail standards ratio for officers to prisoners,
Information for fiscal years 1 997 through 2002 was not readily available,
1 47
OPERA TlNG INDICA TORS BY FUNCTION/PROGRAM
Current fiscal year
2006
Fu nctionlProgram
General government
County Court
Criminal cases filed 2,723
Criminal case dispositions 3,057
Civil cases filed 532
Civil case dispositions 442
Juvenile cases filed 235
Juvenile case dispositions 214
District Court
Criminal cases filed 1 ,003
Criminal case dispositions 988
Civil cases filed 3 , 1 70
Civil case dispositions 3,095
Justice of the Peace
Civil cases filed 750
Criminal cases filed 1 7,420
Elections Administrator
New registrations 3,592
Elections held 11
County Auditor
Accounts payable invoices processed 24,099
County Treasurer
Payroll checks processed 1 6,963
Tax Assesor-collector
Automobile Registrations 87,569
Public Safety 553
Sheriff
Emergency 91 1 calls received 4,673
Fire marshal
Fires 434
Culture and Recreation
Parks and recreation
Cabana rentals 24
Public health
Health Department
Immunizations administered 8,320
AdulUchild health screening visits 582
Dental clinic visits 7,910
Environmental inspectionslpermits 1 ,064
Mosquito control trips 1 76
Animal control calls 3,174
Road and bridge precincts
Miles of roads overlayed 30
148
CAP/TAL ASSET STA T/ST/CS BY FUNCTION/PROGRAM
Fiscal Year
2003 2004 2005 2006
Function/Program
General government
Buildings 8 8 8 9
Parking lots 3 3 3 3
Public safety
Sheriff
Jail 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
Public Health
Animal shelter 1 1
Airport
T-Hanger 6 6 6 6
Terminal 1 1 1 1
Navarro Lease Project

Building 1 1
NOTE: NIA denotes information not available
Information for fiscal years 1 997 through 2002 was not readily available.
SOURCE: Various County departments, Texas Department of Transportation
1 49
SINGLE AUDIT SECTION
HARRISON, WALDROP & UHEREK, L.L.P.
STEPHEN W. VAN MANEN, CPA
HAMILTON H. REDMON, CPA
HWU
DENNIS C CIHAL. CPA
E. BRUCE WOOLSON, CPA
ERIC L KUCERA, CPA
CLAYTON P. VAN PELT. CPA
MELISSA M. lERRY. CPA
101 S. MAIN, SUITE 400 VOiCE: (361) 573·3255
VICTORIA, TEXAS 77901-8142 FAX: (361) 573·9531
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 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 3 1 , 2006,
which collectively comprise the County's basic financial statements and have issued our report thereon dated
June 1 9, 2007. 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
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the County's ability to initiate, authorize, record, process, or report
financial data reliably in accordance with generally accepted accounting principles such that there is more
than a remote likelihood that a misstatement of the County's financial statements that is more than
inconsequential will not be prevented or detected by the County's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in

more than a remote likelihood that a material m isstatement of the financial statements will not be
prevented or detected by the County's internal control.
Our consideration of internal control over financial reporting was for the 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 described above.
MEMBERS OF
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
Honorable County Judge and Members
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances on noncompliance or other matters that are required to be
reported under Government Auditing Standards.
This report is intended solely for the information and use of the County Judge and mem bers of
Comm issioners' 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.
June 1 9 , 2007
151
HARRISON, WALDROP & UHEREK, L.L.P.
STEPHEN W. VAN MANEN. CPA
HAMILTON H. REDMON. CPA
HWU
DENNIS C. CIHAL CPA
E. BRUCE WOOlSON, CPA
ERIC L. KUCERA, CPA
CLAYTON P. VAN PElT. CPA
MELISSA M. TERRY, CPA
101 S. MAIN. SUITE 400 VOICE: (361) 573-3255
VICTORIA. TEXAS 77901-8142 fAX: (361) 573-9531
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO

EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A·133

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 that are applicable to each of its major federal programs for the year ended December 3 1 , 2006.
The County's major federal programs are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs. Compliance with the requirements of laws,
regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the
County's management. Our responsibility is to express an opinion on the County's compliance based on our
audit.
We conducted our audit of compliance 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; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profll Organizations. Those standards and OMB Circular A-1 33
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 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 programs for the year ended December 31 , 2006.
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 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 program in order to determine
our auditing procedures for the purpose of expressing an opinion on compliance, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the County's internal control over compliance.
MEMBERS OF
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
TEXAS SOCIETY OF CERTIFIED PUBliC ACCOUNTANTS
A control deficiency in an entity's internal control over compliance exists when the design or operation of a
control does not allow management or employees, in the normal course of performing their assigned
functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on
a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that
adversely affects the entity's ability to administer a federal program such that there is more than a remote
likelihood that noncompliance with a type of compliance requirement of a federal program that is more than
inconsequential will not be prevented or detected by the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies that results in more
than a remote likelihood that material noncompliance with a type of compliance requirement of a federal
program will not be prevented or detected by the entity's internal control.
Our consideration of the internal control over compliance was for the limited purpose described 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
Comm issioners' 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.
�, uJ�f�1.,1fJ.
June 1 9, 2007
1 53
SCHEDULE OF EXPEND/TURES OF FEDERAL AND STATE A WARDS
Federal Agency or
CFDA Pass-through
Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures
FEDERAL EXPENDITURES
U. S. Department of Transportation
Airport I mprovement Grant 20.106 3-48-021 9-1 8-04 $ 632,748
Airport I mprovement Grant 20.106 3-48-021 9-19-06 850,280
1 ,483,028
Passed Through the Texas Department of Transportation
Routine Airport Maintenance Program 20. 1 06 M61 3VICTO 30,000
Routine Airport Maintenance Program 20. 1 06 M71 3VICTO 50,000
Click IUTicket 20.600 586XXF5046 8,000
Total Texas Department of State Health Services 88,000
Total U.S. Department of Transportation 1 ,571,028
U. S. Department of Homeland Security

State Homeland Security Program 97.073 2005-GE-T5-4025 72,500
Total U.S. Department of Homeland Security 72,500
U. S. Department of Justice
Passed Through the Office of Governor of Texas, Crimina/ Justice Division
Victims Coordinator Liason Grant 1 6.575 06-02042 20,049
Victims Coordinator Liason Grant 1 6.575 07-00597 1 8,81 3
Victims Coordinator Liason Grant 1 6.575 06-02051 23,707
Victims Coordinator Liason Grant 1 6.575 06-00604 1 5,226
Other Victims Assistance Grant 1 6.575 06-02864 32,350
Other Victims Assistance Grant 1 6.575 06-02864.A 1 7,375
Total U.S. Department of justice 1 27,520
U. S. Department of Agriculture
Passed Through Texas Department of State Hea/th Services
Special Supplemental Nutrition Program for Women,
I nfants, and Children 1 0 .557 7460024452-06 562,250
Special Supplemental Nutrition Program for Women,
Infants, and Children 1 0 .557 7460024452-07 203,292
Passed Through Texas Department of Human Services
School Breakfast Program 1 0.553 TX235-2005 24,498
National School Lunch Program 1 0.555 TX235-2005 44,881
Total Texas Department of Human Services 69,379
Total U.S. Department of Agriculture 834,921
(continued )
1 54
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE A WARDS
Federal Agency or
CFDA Pass-through
Federal Grantor/Pass-Through GrantorlProgram Title Num ber Number Expenditures
FEDERAL EXPENDITURES - (Continued)
U. S. Department of Health and Human Services

Passed Through Texas Department of State Health Services
HIV Prevention Activities - Health Department Based 93.940 7460024452-07 $ 1 01 , 1 64
PHR 8 - Biotterrorism Preparedness 93.283 7460024452-06-05A 67, 1 64
Immunization Grant 93.268 7460024452-05-01 55,492
Immunization Grant 93.268 7460024452-06 48,41 6
Passed Through Texas Department of Health in Bexar County

Ryan White Title I I - 2006 93.9 1 7 N/A 63,310
Ryan White Title I I - 2007 93.91 7 N/A 86,293
Total Texas Department of Health in Bexar County 1 49,603
Passed Through Texas Juvenile Probation Commission

Federal Foster Care Grant Title IV-E 93.658 TJPC-E-05-235 1 70,531
Passed Through Texas Department of Protective and

Regulatory Services
Title IV-E Legal Services 93.658 2005085080 42,524
Total U.S. Department of Health and Human Services 634,894
U. S. Department of Housing and Urban Development

Passed Through Office of Rural and Community Affairs
Texas Community Development Program 1 4 .227 71 6337 1 69,524
Texas Community Development Program 1 4.227 725881 1 3,000
Total Office of Rural and Community Affairs 1 82,524

HOPWA - 2006/2007 1 4.241 N/A 47,562
HOPWA - 2005/2006 1 4.241 N/A 22,184
Total Texas Department of Health in Bexar County 69,746
Total U.S. Department of Housing and Urban Development 252,270
(continued)
1 55
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE A WARDS
Federal Agency or
CFDA Pass-through
FEDERAL EXPENDITURES - (Continued)
U. S. Elections Assistance Commission

Passed Through Texas Secretary of State - Elections Division
County Education Fund 39.01 1 77530 $ 3, 1 84
General HAVA Compliance 90.401 787 1 0 4,400
Total U.S. Elections Assistance Commission 7,584
TOTAL FEDERAL EXPENDITURES 3,500,71 7
STATE EXPENDITURES
Texas Department of Health

RLSS/LPHS N/A 7460024452-06-02A 1 23,525
Diabetes-Comm. Diabetes Services N/A 2007-020953-001 6,096
TB Control N/A 7460024452-06 24,856
1 54,477

H IV Treatment, Health and Social Services - 2005/2006 N/A N/A 33,126
HIV Treatment, Health and Social Services - 2006/2007 N/A N/A 1 7,478
Total Texas Department of Health in Bexar County 50,604
Total Texas Department of Health 205,081
Texas Juvenile Probation Commission

State Aid N/A TJPC-A-2006-235 55,550
State Aid N/A TJPC-A-2007-235 39,680
Progressive Santions JPO N/A TJPC-F-2006-235 54,894
Progressive Santions JPO N/A TJ PC-F-2007-235 39,2 1 0
Progressive Santions 1 23 Program N/A TJPC-G-2006-235 1 7,854
Progressive Santions 1 23 Program N/A TJPC-G-2007-235 1 2,755
Community Corrections Assistance Program N/A TJ PC-Y-2006-235 1 28,906
Community Corrections Assistance Program N/A TJ PC-Y-2007-235 92,075
Salary Adjustment N/A TJ PC-Z-2006-235 42,649
Salary Adjustment N/A TJ PC-Z-2007-235 42,750
Total Texas Juvenile Probation Commission 526,323
Office of the Attorney General of Texas

Texas Vine Grant N/A 05-00644 43,805
(continued)
1 56
SCHEDULE OF EXPEND/TURES OF FEDERAL AND STA TE A WARDS
Federal Agency or
CFDA Pass-through
STATE EXPENDITURES · (Continued)
Texas Task Force on Indigent Defense

Indigent Defense N/A N/A $ 73,738
TOTAL STATE EXPENDITURES 848,947
TOTAL FEDERAL AND STATE EXPENDITURES $ 4,349,664
See accompanying notes to schedule of expenditures of federal and state awards.
1 57
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE A WARDS
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-Profit Organizations. Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of the
1 58
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unqualified
Internal control over financial reporting:

• Material weakness( es) identified? D yes (gJ no
• Significant deficiency(s) identified
that are not considered to be
material weaknesses? D yes (gJ none reported
Noncompliance material to financial

statements noted? D yes (gJ no
Federal Awards
Internal control over major programs:

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

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

20. 1 06 . . . .
'" "" -. . -�" .,. . ... . . ..... . ... . ...... ....... . l\irE()rt l rl1p r()��rl1El�t C3 r.ant
1 0.557 Spe.c:i13 I ."u2plemental Nutriti (j.nJ',r()gram for Women,
and Children
NIA Texas
. . .. . Juvenile Probation
... . .. ..--,- .. --- ". . Commission-2006/2007-235
.. . ...
...... .. . ..... .... . .
,",,--,-- " , ., .... . _,,-----"". . . . ... .. _.....
Dollar threshold used to distinguish

between type A and type B programs: $300,000
Auditee qualified as low-risk auditee? D yes (gJ no
Section II - Financial Statement Findings
None noted
Section III - Federal Award Findings and Questioned Costs
None noted
1 59
SCHEDULE OF PRIOR AUDIT FINDINGS
None were reported.
1 60

2006 Victoria County CAFR

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2006 Victoria County CAFR

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COUNTY OF VICTORIA, TEXAS

COMPREHENSIVE ANNUAL FINANCIAL REPORT

Prepared by: County Auditor's Office

INT RODUCTORY SECTION

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

Bas ic Financial Statements

Government-Wide Financial Statements

Fund Financial Statements

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... . . . . . . . . . . . . . .................. . . . . . . . . . . . . . 30

Required Supp lementary Information

SchedUle of Revenues, Expenditures, and Changes in Fund Balance

Notes to 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 Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

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

I ndividual Statements and Schedules

Nonmajor Special Revenue Funds

FINANCIAL SECTION · (Continued)

Combining and Individual Fund Statements and Schedules· (Continued)

Governmental Funds· (Continued)

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

Net Assets by Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......

Fund Balances. Governmental Funds . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . ....................................................

Changes in Fund Balances. Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax Revenues by Source. Governmental Funds . . . . . . . . . . . . . . . . . . . . ............ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....

Principal Property Taxpayers (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .................... . 1 33

Property Tax Levies and Collections - General and I&S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 34

STATISTICAL SECTION · (Continued)

Revenue Capacity · (Continued)

Direct and Overlapping Sales Tax Rates"""""""""""""""""""""""""""""""""""""""" 1 39

Ratios of Outstanding Debt by Type """"""""""""""""""""""""""""""""""""""""""'" 1 40

Direct and Overlapping Governmental Activities Debt (Unaudited) """""""""""""""""""" 1 42

Demograp hic and Economic Information

Demographic and Economic Statistics (Unaudited) """"""""""""""""""""""""""""""'" 1 45

Principal Em ployers (Unaudited) . . . . . . . . . . . . . . . . . ."." . . . . . . . . . . . . . . . . . " . . . . . . . . . . . . . . . . . . . . . . . . . . " . . . . . . . . . . . . . . . . . . . ,," 1 46

Full·Time-Equivalent City Governmental Employees by Function/Program """"""""""""'" 1 47

Operating Indicators by Function/Program .. """" . . ,,"""""""""" . . . . ,,"" . . ,,""",, . . ,,""""""". . . 1 48

SINGLE AUDIT SECTION

Report on Internal Control Over Financial Reporting and on

Report on Compliance With Requirements Applicable to Each Major

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

June 19, 2007

Honorable District Judges

PROFILE OF VICTORIA COUNTY

FACTORS AFFECTING FINANCIAL CONDITION

AWARDS AND ACK NOWLEDGEMENTS

for the Fiscal Year Ended

December 31, 2005

A CCltificate of Achievement for Excellence in Financial

INDEPENDENT AUDITORS' REPORT

The Honorable County Judge and Members

FINAN CIAL HIGHLIGHTS

OVERVIEW OF THE FINANCIAL STATEMENTS

Organization and Flow of Financial Section Information

Independent Auditors' Report

Management's Discussion and Analysis

Government-wide Financial Fund Financial Statements Component Unit Fi nancial

PaQes 13 to 16 Pages 17 to 26 Pages 27 to 29

Notes to Financial Statements