2005 Victoria County CAFR

COUNTY OF VICTORIA, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT

For the year ended December 31, 2005
Prepared by: County Auditor's Office

Judy McAdams, CPA
Victoria County Auditor
I
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
INTRODUCTORY SECTION
County Auditor's Letter of Transmlttal. ......................................................................................... ..
Certificate of Achievement for
Excellence in Financial Reporting. ................... ,........ " .... ,',....,............................ ,.. ,',., ..,.,................ ,' v
Organizational Chart ..... ,...... ,........................ ,............................................ ,........................................... vi
Olractory of Principal Officials ....................................................................................... ,........................ vii
FINANCIAL SECTION
Independent Auditor's Report ............. ........ . . ................. .. .... ,....... ......................................... . . . . . ... 1
Management's Discussion and Analysis ... ...... ......................................................................... .... 3
Basic Financial Statements
Government-Wide Financial Statements

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

Balance Sheet .. Governmental Funds ... ......... . .... ...... .... ....... ...... ......... ...... ......... ...
... . .. . . . 17
Reconciliation of Total Governmental Fund Balance to Net Assets of
Governmental Activities. .. .... .,............,................. ,.,',.................................................
... . .. 18
Statement of Re\lenues, Expenditures, and Changes in 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 Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance

Budget and Actual - General Fund . ... .................. ..... ....... . . ...... . . . ........................... ...... . . ....
. 70
Notes to Required Supplementary Information . . ..... .. ...... ............ ...................... .

. ..... . .............. 71
Combining and Individual Fund Statements and Schedules
Governmental Funds
Combining Statements
Combining Balance Sheet - All Nonmajor Governmental Funds .... . . . ...... . . . . .. .......... .. .... .... . 72
TABLE OF CONTENTS
(Continued)
FINANCIAL SECTION - (Continued)
Combining a nd Indlvldyal Fund Statements and Schedules - (Continued)
Governmental Funds - (Continued)

Combining Statements - (Continued)
Combining Stalement of Revenues, Expenditures, and Changes in Fund
Balances - All Nonmajor Governmental Funds .... .................... ........... .............................. 73
Nonmajor Special Revenue Funds .......................................................................... ...... ...... 74

Combining Balance Sheel- All Nonmajor Special Revenue Funds .......... ... ... ____. ____ . . . _ _ 78
Combining Statement of Revenues, Expenditures, and Changes
in Fund Ba l ance - All Nonmajor Special Revenue Funds ............................................ 79
Combining Balance Sheet Nonmajor Road and Bridge Special Revenue Funds
- ___ _ _ _ ... 80
in Fund Balance - Nonmajor Road and Bridge Special Revenue Funds .......... .. . ________ 82
Combining Balance Sheet· Nonmajor Other Special Revenue Funds ....... . . .. . . . . . . ____ . . .. .. 84
In Fund Balance -- Nonmajor Oth er Special Revenue Funds .............. . . . ............ _ _ _ _ _ _ .... 90
Nonmajor Debt Service Funds .......................... ............................................ ....................... 96

Combining Balance Sheet -- Nonmajor Debt Servioe Funds .... ....................................... 97
Combining Statement of Revenues, Expendilures, and Changes
in Fund Balances Nonmajor Debt Service Funds ......................................................
- 98
Individual Statements and Schedules

General Fund
Schedule of Revenues, Expenditures, and Changes in Fund
Balance - Budget (Non-GAAP Basis) and ActuaL . . .. . ....... .
.. __ . . . . __ ....... ..... ... .................. 99
Nonmajor Speoial Revenue Funds

Road and Bridge Preo inct No. 1
Schedule of Revenues, Expenditures, and Changes In Fund
Balance - Budget and Actual................................................... ........ .......................... 107
Road and Bridge Precinct No. 2
Balance - Budget and Actual .... . . . ..... ....
.................... ..
.. . .. .... . .. ........ ...... _ _ _ _ _ _ _ _ _ _ .... ..... . . 108
Road and Bridge Precinct No. 3
Balance - Budget and Ac!ual... . . . . . . .. .
. . ....... ................ ______ . .. .......... ...... ...... __ . . . _ _ _ _ _ _ _ _ _ _. 1 09
Road and Bridge Precinct NO. 4
SChedule of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Ac!ual. . .. ..... .. . ... . .. . . .
_ _ _ _ _ _ _ _ _ _ _ _ _ _ ....... ... ...... . . . .... ..
... __ ... ... . ...... . .. .... 110
TABLE OF CONTENTS
(Continued)
FINANCIAL SECTION - (Continued)
Combining and Individual Fund Statements and Sohedules - (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. . . . . . . . . .. .. .. ... . . ........ .. ..
_____ . .. . . ... .. . . . . , . . . ____ . _ _ _ _ . __ ,_.. . ... . . .. _ , 111
Jail Bonds Sinking Fund
SChedule of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual........................................................................... . . . ....... 112
Courthouse Restoration Bonds Sinking Fund
Schedule of Revenues, expenditures, and Changes in Fund
Balance Budget and ActuaL
- . . . . . . ... ... .... . . . . . . . .. .........
. . . . . . . . . . __ .. ,. . . .. ..... . . . _________ . .. . .. .... .. 113
Bridge Street Annex Sinking Fund
Schedule of Revenu es, Expenditures, and Changes In Fund
Balance· Budget and ActuaL . ... . ........................ . . .... .......... .........
... _ . . .... . .... . ______ ... . . . 114
Fiduciary Funds
Agency Funds ......................... :.. ...... .. .. ... ......... .................
. . . . ".......................
_. __ .. . ' ____ " ___.____ 115
Combining Statement of Changes in Assets and
Llabilrties _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ .... . . . . . . . . . .. . . ........ ..
. . . . . . . . ... . _ .... __ ...................................... _____ . ____ _______ . . . . 116
STATISTICAL SeCTION (UNAUDITED)
General Governmental Expenditures by Function - Last Ten Fiscal

Years . ..................................
. . .. . ... ..... ... . ...........
_. ___________ . . .. ....................... . .
.... ........ . . . . . __ . .. _. .. . . ___ . __ . _ _ _ _ _ _ . . 119
General Governmental Revenues by Source- La st Ten Fiscal Years.... _..______..__ .__ . . .. . ........ ... .... ......
. . . 121
Estimated Actual Value and Assessed Value of Taxable Property •
Last Ten Fiscal Years ..... .. .. ....... ....................... . ...... . ......

. _. ____ ... ____ . . .. . . , . ................................. __ .. ,, __. ____ . 123
Tax Rate Distribution - Last Ten Fiscal years., .. .. . . ... ...... ............. .... ... .,................................... 124
. .. .. . . . . . . ..
Property Tax Levies and Collections - Last Ten Fiscal Years . ........ ... . .... . . . ......... ..
. .. .. . . .. _ _ _ _ _ _ _ _ _ _ .. _ _ .. . .... 125
.
Direct and Overlapping Tax Rates - Last Ten F iscal Years................................... " .... ....................... 126
__
Ratio ofNet General Bonded Debt to Assessed Value and Net

Bonded Debt Per Capita Last Ten Fiscal Years ... ... . . ..... . ...... ... . .. ...... ......
- . .. . . .. . . . , .. __ ... ...... . .. . ...... .
. . . .. 126
Computation of Legal Debt Margln . . . . ....... . .. . . . . .. . . ____ . . . . . _ . . . . . . . .. . .... . . . ... ..... ....
. . . .. . .. .. _ .... . __ ..... . . .. . . ....
. . ... . . . .. 130
Computation of Direct and Overlapping Debt ....................................................................................... 131

TABLE OF CONTENTS
(Continued)
STATISTICAL SECTION (UNAUDITED) - (Continued)
Ratios of Annual Debt Service Expenditures for General Bonded

Debt to Total General Expenditures - Last Ten Fiscal years.............................................................. 1 32
Principal Taxpayers .... .. . . ... . .... ..... ........ . . .. ......................................................................................

. . . . . . . . 133
Sales Tax Revenue..................................................................................................... ........... .. .............. 1 34
Salaries and Surety Bonds of Principal Officials . . .. . . .................. .......... . .. .... . .............. .......... .... .. ..
. . . .. . . . . 1 35
Demographic Statistics .......................................................................................................................... 136
Miscellaneous Statistical Data ...... ......... .. . ............ ........... .. .. ..... . . . . .. . .... . .. .. . .... . . ....... ..............
. . . . . . . . . . . . . . .. . 137
SINGLE AUDIT SECTION
Report on Internal Control Over Financial Reporting and on

Compliance and Oth er Matters Based on an Audit Of Financial
Statements Performed in Accordance With Government Auditing
Standards.......... ..... .. .. . . .. . . . .. . ... .... .......................... .......................................................................
. . . . . . . . 1 38
Report on Compliance With Requirements Applicable to Each Major

Program and Internal Control Over Compliance in Accordance With
OMB Circular A-133 .. .. . . .. . . . . . . . ... . ........... .....................................................................................
. . . . . . . . . . 139
Schedule of Expenditures of Federal and State Awards . .... . . . . . ............. . . .. . ...... . .... . . . .................
. . . . . . . . . . . 141
Notes to Schedule of Expenditures of Federal and State Awards........................................................ 145
Schedule of Findings and Questioned Costs ...... . . . . . ... .. . . . . ........ .. . . ... . . . . .. ... .... . . . .
. . .. .. .. . . . . .................... . ... 146
Schedule of Prior Audit Findings . . .. .... . .... . .................... .. . .. .... . . . . .. . ... .. . ......................... ... .... .. ..
. . . . . . . . . . . . . . . 147
INTRODUCTORY SECTION
il
JUDY McADAMS, CPA
COUNTY AUDITOR
VICTORIA COUNTY, TEXAS
115 N, Bridge, Room 122 Tel: (361)6764461

Victoria, Texaa 77901 F",,: (361 )673-0$36
June 12, 2006
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
th e County of Victoria, Texas, (the 'County") for the year ended December 31, 2005. Responsibility for
both the accuracy of the presented data and the completeness and faimess 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 ali disclosures
necessary to enable th e reader to gain the maximum understanding of the County's financial affairs have
been included. This report was prepared in conformity with 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 compl iance with V.T.CA, Local Government Code Section 114.025.
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 Uherek, 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 31, 2005, 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 in depen den t 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 31, 2005, are fairly presented in
conformity with GAAP. The independent auditor's report is presented as th e first component of the
financial section of this report.
The CAFR was pre pared in acco rd an ce 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
struoture and compliance with applicable laws and regulations, along with the schedule of expenditures of
federal and state awards.
Honorable District Judges June 12, 2006
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 gove m in g
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 le gal 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
sq uare miles and serves a popu lation of 65,646.
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 6,
Paragraph 16 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 Co unty 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 Comm issioners' Court for ap p roval
.
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 just ice which includes the civil and criminal
,
county and distnct 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 coo perat ion 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 fi nancial 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 ind iv idual fund. The original budget may be amended by Commissioners' Court under
conditions prescribed by Texas Local Government Code, Section 11 1.010. BUdget-to-actual compa risons
are provided in this report for each governmental fund for which an appropriated budget has been
adopted.
ii
Co unty of V i ctor ia
Various potential component units wer e evaluated to determine whether they should be included in the
Coun ty's reporting ent ity because of the significance of their operational and financial relationship with the
County. Based upon standards established by the Govemmental 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 Co unty Child Welfare Board, and Citizens Medical Center. These
entities are d iscretely 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 th e Co u nty 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 Victor ia 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 hig h er education.
Although the oil and gas petrochemical industries remain a vital component of the area employment base,
d iv ersification within these industries i nto pro duction of ancillary goods and plastics has reduced eco nom ic
vulnerability to energy price fluctuations.
The County records reflect modest debt levels, rapid principal amortization, and acceptable reserve levels
that have b enefited from soun d fiscal management practices . The County practices conservative
budgeting and sets general fund reserve targets at 8% to 1 0% of annual expenditures, In the past fiscal
y ear the County incurred a significant increase in the g eneral 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
balan ce does not i nclude $3.5 million in ad valorem taxes collected in October, November and December
of 2005, and are instead reported as deferred revenues,
Long-Term Financial Planning - The County of Victoria has identified severel long-term issues that need
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 caseload of jury trials and re solving inadequate par k ing around the Courthouse complex. The
County Airp ort has Identified many aging buildings that also need to be demolished, The Airport Traffic
Control Tower needS to be refurbished and plans are to bring it into service in 2007, which will significantly
increase the possibility of the award of a Governme nt fueling contract. The County continues to fund a
percentage of the local Texas Department of Transportation road projects, such as the expansion of Loop
463 from Salem Road to U.S. Highway 59.
Cash Management The Commissioners' Court has adopted a formal investment policy for the County
-
consistent with State statutes governing the investment of County funds and has deSignated the County
Treasurer as the County's investme nt officer. The policy is up da ted annually The general objectives set
.
fo rt h in the policy provide for financial security and optimum liquidity of County funds while a chievi ng 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
iii
County of Victoria
County purchases commercial insurance policies from a private carner. The re lated 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 insura nce ope ra tio ns.
Pension And Other Post Employment Benefits - The County provides retirement, disability and death
benefits for all of its full t ime 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. Benefi ts amounts
are determined by th e surn of the employee's contributions to the plan. with interest and employer
financed monetary cr edits 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 ACKNOWLEDGEMENTS
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) f or the fiscal year ended December 31, 2004. This was the twelfth consecutive year that the
government has received this prestigious award. In order to be awarded a Ce rtificate of Achievement. the
government published an easily readable and effic ie ntl y organized CAFR. This report satisfied both GMP
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 a s s ist ed in and contributed to its preparation. We would also like t o thank the accounting firm of
Harrison, Waldrop & Uherek, L.L.P. for sharing their knowledge, and extending their cooperation and
support to the County Auditors Office. Appreoiation must also be expressed to the County Judge,
members of the CommiSSioners' Court, the County Treasurer and all other offiCials of the county for their
assistance in pla nnin g and conducting the financial operatio ns of the County in a progressive and
responsible manner.
Respectfully su bmitted,
9dur;��
Judy McAdams, CPA
Victoria County Auditor
iv
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
County of Victoria,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2004
A Certificate of Achievement for Excellence in Financial

Reporting is presented by the Government Finance Officers
Association of the United States and 'Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAPRs) achieve the highest
standards in government accounting
and fmancial reporting.
President
�/.�Executive Director
v
VICfORIA COUNTY ORGANIZATION
I COUNTY VOTERS I
I I I I I I I 1 I I I
Four
F....r County County TwoCoonq Distrid: Dkstrfd: Covnty
District Fire Four lllStite. of
Tax
-
TNasurer - Courts-at- C.rk AtJ:ditor
Atto.ney Marshal
Sheriff Constables the Peace
Comrnlssionws Judge Clerk ludges
Collector Lawl...,.
� I I
I
Probate
Judges
Commissicmers
I I Court
I I
�
City-County
AIIministrirtive Veteran
5emce:l Emergoncy Flood Plain InlOnnll!io. .uiklln, Elec;tion
Service
MaIIagament AdmWlistrator Technology Mltl'ntenance Administrator Director
Onice.
DireclDr
V"tcIDria atizens
RegIODilil Medical
Airport center
•
lUVENlLE BOARD
§J
VIctDrIa
��
lwoCounty Agriculturilll
aty-eounty
Courts-.at- !:d:snslon
Judge Clerk Health
Law Judges Judges SoMce
Deportment
,.
I
I I
T.,..,
Texas
luvenih!: ,.... nl. Slate
A.M
Probation _0. Health
UlilversitJ
DeparbMnt
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-ai-Law # 1
Juan Velasquez, III Judge, County Court-at-Law # 2
Joseph P. Kelly Judge, 24th Judicial District
K. Stephen Williams, III Judge, 135th Judicial District
Juergen "Skipper" Koetter, Jr. Judge, 267th Judicial District
Robert C. Cheshire Judge, 377th Judicial District
Annie Ramos Jusllce of the Peace # 1

Carolyn Milam (appointed 9106/05) Justice of the Peace # 2
Bealrlz Gonza lez 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.P.
STEPHEN W. VAN MANEN, CP�
HAMILTON H. REDMON, CPA
DENNIS C . CIHAL, �M
HWU
e, eRuCE WOO�SON. CPA
EIiI IC L. KUCERA, CPA
CLAYTON F. VAN F'ELT, CPA
ROBERT w. SCHAAR. CPA
MELISSA M, TERRY, CPA
CERTIFIED PUBLIC ACCO UNTANTS
101 S. MAIN, sum- 4W VOICE: (361) 573-3255
VICTORIA. TEXAS 77901-81.42 FA X: P61) 573-9531
INDEPENDENT AUDITOR'S RI:PORT
The Honorable County Judge and Members

of the Commissioners' Court
County of Victoria, Texas
We have audited the accompanying flnandal statements of the govemmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of County of Victoria, Texas (the "County") as of and for the year ended
December 31 , 2005, 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 $ 155,762,965 as
of June 30, 2005, and total revenues of $ 11 4,41 7,283 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
$142,385 as of December 31, 2005, and total revenues of $73,153 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 Stales 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 Govemrmmt 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 govemmental 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 31, 2005, 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 12
and 70 through 71, are not a required part of the basio finanoial 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.
MEMaeRSQI'
AMel:!rCAN INSTITUTE OF CERTIFIEO PuBLIC ACCOUNTANTS
fEXAS S OCIETY OF CERTIFIeD F'lIB-lIC ACCOUNTANTS
The Honorable COlJllty Judge and Members
of the Comm iss ioners' Court
In acco rd ance with Governme nt Auditing Standards, we hav e also Issued our report dated May 5, 2006, on
our consideration of the County's internal control over financial reporting and on our tests of Ks 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 wfih this report in considering the results of ou r audit.
Our audit was performed for the purpose of forming opinions on the finan ci al statements that collectively
comprise the County's basic financial statements. The introductory section, combining and Individual major
and nonmajor fund financial statements and schedules, statistical data, and schedule of expenditures of
federal and state awards (as r equir ed by the U.S. Office of Management and Budget Circular A-133, 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 nonmajor fund financial statements and schedules and th e 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 fina nc i al 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.
May 5, 2006
2
MANAGEMENT'S DISCUSSION AND ANAL YS/S
December 31, 2005
The discussion and analysis of the County of Victoria's (the "County") financial performance provides an overview
of the County's financial activities for the year ended December 31 , 2005. The discussion and analysis should be
read in conjunction with the accompanying transmittal letter, the basic finanoial statements and the accompanying
notes to those financial statements. The discussion and a na lysis includes comparative data for the prior year.
FINANCIAL HIGHLIGHTS
• The assets of the County exceeded its liabilities at the olose of the year ended December 31 , 2005 by
$33,278,033. Of this am ou nt $10,1 89,219 is available 10 meel the County's ongoing ob ligat ions to
citizens and creditors.
• At December 31, 2005, the County's governmental funds reported combined ending fund balances of
$ 1 1 ,544,323. The amount available for go ve rnm ental discretion (unreserved fund ba la nce) Is
$1 0,904,8 1 9.
• At December 31, 2005, unreserved fund balance for the General Fund was $8,1 39,621 or 36. 1 1 % of total
Genera l Fund expenditures.
• The County' s general obligation debt netted a decrease of $1,225,000. The key factor in this decrease
was debt payments made during 2005.
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 i n the detail of fund
accounting. Inst ead of focusing on aggregations of similar individual funds, GASB 34 Introduced government
Wide financial statements, which present the govern ment as a single unified entity.
This discussion and a nalys is is i nten ded to serve as an introduction to the County's basic finan Cial statements.
The County's basic financial statements are compris ed of four components: 1 ) government-wide financial
statements, 2) fu nd 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 Ihe Independent AudItors on the fair
presentation of the basic financial stetement8.
Management's Discussion and Analysis

This supplementary information is required for state and local government
financIal stetements, and /s Intended to provide a nalTativB introduction,
and analysis.
Paaes 3 to 12
Government-wide Financial Fund Financial Statements Component Unit Financial

Statements Provides informlltion on Ih$ Statements
Provides information on financial position of sp$Cific flmds Provides information on the
governmental and business-type of the primary govemments. County's component units
activities of the primary
government.
Peaes 1 3 10 16 Peaes 1 7 to 26 PaQes 27 to 29
Notes to I'lnaneial Statements

Provides !J summary aI significant accounting policies and related d/sc/osurss.
Pages 30 to 69
3
OVERVIEW OF THE FINANCIAL STATEMENTS - (Continued)
Government-wide Financial Statements. The government-wiele 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 improvi ng or deteriorating.
The statement of activities presents information showing how the governme nt's net assets changed during
2005. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,
regarelless of the timing of relateel cash flows. Thus, revenues and expenses are reported In this statement for
some items that will on l y 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 proJ ect , 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 N avigation 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 3-16 of th is 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 o bjectives. The Co unt y, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
require men ts , All of the funds of the County can be divided into th ree categories: governmental funds,
proprietary funds, and fiduciary fu nds.
Govemmental 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 II 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 req uirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information p rese nted for governmental funds with similar information presented for
governmental activities in the governmen t-wide financial statements. By doing so, readers may better
understand the long-term impact of the govern ment's near-term financi ng 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 t his comparis on between governmental funels 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 reven ues, expenditures, and
cha nges in fund balances for the General Fund, which is considered a major fund. D ata from the other
governmental funds are combined Into a single, aggregated presentation. Individual fund data for each of these
no nm a jor governmental funds is provided in the form of combining and individual statements and sohedules
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 99-106 of this report. Budget comparisons
are presented for the road and bridge special revenue funds and the debt service funds on pages 1 07-1 1 4 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). Internlll 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. Flduoiary 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 acoounting used for
fiduciary funds is similar to proprietary funds.
The basic fiduciary fund financial statements can be found on pages 25-26 of this report.
Notes to financial stateme nts . 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 30-69 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary Information co ncerning the County's General Fund's budgetary
comparison schedule. Required supplementary information can be found on pages 70-7 1 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 72-1 1 4 of this report.
5
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position, In
the case of the County, assets exceeded l iabil ities by $33,278,033 at the close of the year ended
December 31 , 2005,
County of VIc:tQ[I!!. T!xas

Net Assets
GIMIrnrnentaI Bu!II�
AGUvftlGS Adlvltfes Total
2005 2004 2005 2004 2005 2004
Current and other assets $ 3I),92B,165 $ :/8,461,129 $ 437,154 $ 494,554 $ 31,365,319 $ 28,002,233
capital assets (net) 24,057,485 24,l!!1!,518 9,757,485 8258,129 i!i!,81�970 32.561,647
Total Assets 54,985,660 52,771,247 10,194.g 8,752,663 6S,1SJ,a 61,5Zl.930
Current and other liabil�ie$ 19,046,665 17,978,457 459,381 164,713 19,5011,046 18,163,170
Long-temJ lIabilfties 11,229,B13 ,�111,1111 1,100,397 '=,589 1;1,:l96,210 14,;J§!,776
Total Liabilfties 30,276,478 3U)Il9,644 1,625,778 1,437,302 31,002,256 32,526,946
Nel Assets;
Investment In capital assets,
net at related debt 14.144,366 11,0513,694 8,564,567 7,020,823 2<',728,953 le.o79,517
Res1ricted 359,1181 357,245 J59,E'S1 357.245
Unrestricted 10.i1!l:!,945 10,265,664 (15,ml 294,558 10,169,219 10,660GGG
Tatal Net Assets $ 24,709.172 $ ZI ,6811603 ! aooa,E'S1 $ 7,315,361 i i!i!,im.OO3 $ 2!l,Ii96,9il4
The largest portion of the County's net assets (68,30%) reflec\$ its investment in capital assets (e,g" land,
buildings, improvements, machinery and equipment) , less any related debt used to acqu ire those assets that is
still outstanding, The County uses these capital assets to provide services to citizens; consequently, th ese
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 th at the resources needed to repay this debt must be provided from other
sources, si nce the capital assets themselves cannot be used to liqu i date these liabilities,
The County has restricted net asse\$ of $359,861 , which represe nt resources that are subject to external
restrictions on how they may be used, The rema inin g balance of unrestricted net asse\$ ($10,1 89,219) may be
used to meet the government's ongoing ob ligations to citizens and creditors,
6
GOVERNMENT -WIDE FINANCIAL ANALYSIS - (Continued)
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.
Count� of Victoria, Texas

Changes in Net Assets
Governmental Business-type
Activities Activities Total
2005 2004 2005 2004 2005 2004
REVENUES
Program revenues:
Charges for services $ 1 0, 1 1 7,054 $ 1 0,978,232 $ 2,1 76,879 $ 2 , 1 34,441 $ 1 2,293,933 $ 1 3 , 1 1 2,673
Operating grants & contributions 3,227,144 3,280,496 3,227,144 3,280,496
Capital grants & contributions 695,671 509,910 1 , 773,31 1 1 ,323,954 2,468,982 1 ,833,864
General revenues:
Property taxes 1 5 , 1 80,030 1 4,234,749 1 5 , 1 80,030 1 4,234,749
Other taxes 6,221 ,442 5,813,423 6,221 ,442 5,81 3,423
Other 1 ,408,398 1 ,21 0,468 23,499 1 5,330 1 ,431 ,897 1 ,225.798
Total Revenues 36,849,739 36,027,278 3,973,689 3,473,725 40,823,428 39,501,003
EXPENSES
General governmental 1 4 , 1 52,292 1 3,237,845 1 4 , 1 52,292 1 3,237,845

Public safety 9,929,954 9,333,043 9,929,954 9,333,043
Highways and streets 4,232,306 3,255,108 4,232,306 3,255,108
Culture and recreation 1 ,293,663 1 , 1 95,419 1 ,293,663 1 , 1 95,419
Public health 3,653,066 3,584,444 3,653,066 3,584,444
Interest on l ong term debt
- 430,889 446,612 430,889 446,612
Airport 2,295,210 2, 328,426 2,295,210 2,328,426
Navarro project 481,568 466,392 481,568 466,392
Other 73,431 80,541 73,431 80,541
Total Expenses 33,692,170 31 ,052,471 2,850,209 2,875,359 36,542,379 33,927,830
Change in net assets before special

items and transfers 3,1 57,569 4,974,807 1 , 1 23,480 598,366 4,281,049 5,573,173
SpeCial item-loss on refunding
Transfers (1 30,000) (238,457) 1 30,000 238,457
Change in net assets 3,027,569 4,736,350 1 ,253,480 836,823 4,281 ,049 5,573,173
Net assets - January 1 , 2005 21 ,681,603 1 6,945,253 7,31 5,381 6,478,558 28,996,984 23,423,811
Net assets - December 3 1 , 2005 $ 24,709, 1 72 $ 21 ,681 ,603 $ 8,568,861 $ 7,31 5,381 $ 33,278,033 $ 28,996,984
7
GOVERNMENT-WIDE FINANCIAL ANALYSIS - (Continued)
Governmental activities. Governmental activities increased the County's net assets by $3,027,569, thereby
accounting for 70,72% of the total growth in the net assets of the County,
Expenses and Program Revenues - Governmental Activities
10 Expenses . Program revenues I

16,000,000
1 4,000,000
12,000,000
1 0,000,000
8,000,000
6,000,000
4,000,000
2,000,000
General Public safety Highways Culture and Public health Interest on

government and streets recreation long-term
debt
Revenues by Source - Governmental Activities
Other
4%
Charges for
Sales taxes
services
1 7%
27%
Operating grants
and contributions
9%
Property taxes
grants and
41%
contributions
2%
8
GOVERNMENT-WIDE FINANCIAL ANALYSIS - (Contin ued )
Business-type activities. Business-type activities increased the County's net assets b y $1 ,253,480, thereby
accounting for 29.28% of the total growth in the net assets of the County.
Expenses and Program Revenues - Business-type Activities
10 Expenses . Program revenues I

3,500,000 ,------,
3,000,000
2,500,000
2,000,000
1 ,500,000
1 ,000,000
500,000
Airport Navarro Roject Other
Revenues by Source - Business-type Activities
Capital grants and

contributions
45%
1%
Charges for
services
54%
9
FINANCIAL ANALYSIS O F THE GOVERNMENT'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental funds. The focus of the County's governmental funds is to provide information on near-term
inflows, outflows, and 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
$1 1 ,544,323, an increase of $ 1 ,433, 1 2 7 in comparison with the prior year. Of the total fund balance,
$1 0,904 , 8 1 9 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 ($252,772), and 2) for a variety of other restricted purposes ($386,732).
General Fund. The General Fund is the chief operating fund of the County. At the end of the current year,
unreserved fund balance of the General Fund was $8, 1 39,62 1 , while total fund balance reached $8,526,353.
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 36. 1 1 % of total General
Fund expenditures, while total fund balance represents 37.83% of that same amount.
The fund balance of the County's General Fund increased by $2,552,850 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:
2005 2004
U n restricted U n restricted
Fund Net Assets Net Assets
Airport $ 275,264 $ 422,649
Navarro Project (347,1 00) (1 92,942)
Other 80,009 64,851
Total $ 8, 1 73 $ 294,558
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 $888,304 and can be briefly summarized as follows:
• $356,608 in miscellaneous increases in general governmental activities, due to increases in utility costs,
additional capital outlay projects and increases in personnel.
• $402 , 7 1 0 in miscellaneous increases in public safety activities, due to vehicle purchases and jail repairs
and maintenance
• $ 5,859 in miscellaneous increases in culture and recreation activities, due to relocation of the office.
• $ 1 2 3 , 1 2 7 in miscellaneous increases in public health activities and operating transfers out, due to
increases in operating expenses.
Of this increase, $732,260 was to be funded out of miscellaneous increases in intergovernmental revenues,
fines and forfeitures revenues and other miscellaneous revenues. The remaining $ 1 56, 044 was to be funded
from an excess of revenues in the original budget.
10
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets. The County's investment in capital assets for its governm ental and business-type activiti es as
of December 31 , 2005, amounts to $33,614,970 (net of accumulated depreciation). This investment in capital
assets includes land, buildings, improvements, and machinery and equipmenl. The lotal increase in the
County's investment in capital assets for the current year was 3.85% (a 1 .01 % decrease for governmental
activities and a 1 8.16% increase for business-type activities) . This increase was due to ongoing Improvements
to the airport.
Countll of Victoria, Texas

�i!Diml !:lam
(Net of Depreciation)
Governmental Busi ness-type

Activities Activities Total
2005 2004 2005 2004 2005 2004
Land $ 1.365, 758 $ 1 ,365,756 $ 1 49.433 $ 1 49,433 $ 1,515,191 $ 1 ,51 5,191
Buildings 1 2 , 1 36.461 12,21lS,764 1 , 1 1 3,167 1 ,234 ,243 1 3,249, 628 1 3,523 ,007
Improvements 6,865,324 6,900,689 8,330,496 6,664,132 15,21 5,820 1 3 ,564. 82 1
Machinery and equipment 3,669,942 1 64,389 210,321 3,834,331 3,968,628
Total $ 24,057.485 $ 24,303,518 $ 9.757,485 $ 8,258,129 U�!oq14,970 § 32,561,647
Additional information on the County's capital assets can be found in Note 5 of th is report.
Long-term debt. At the end of the currenl year, the Counly had total bonded debt outstanding of $ 1 1 ,565,000.
Of this amount. $10, 330,000 comprises debl backed by the full faith and credit of the government and
$1 ,235,000 secured solely by specific revenue sources (I.e., revenue bonds).

General ObligatIon and Revenue Bonds
Governmental Business-type
Activities Activities Tollil
2005 2004 2005 2004 2005 2004
Certificates of obligation $ 4,385,000 $ 4,700,000 $ $ $ 4,385,000 $ 4,700,000
General obligation bonds 5.945,000 6,855,000 5,945.000 6,655,000
Revenue bonds 1 ,235,000 1,305,000 1 ,235.000 1 ,305,000
Bond discount _ --,
(",
3,..
56:J./
1l __ ..,
(3""8",1)
7,,,, __ -" 5
,,6,-,,
(3,", , ') (3,871)
Total $ 10,330,000 $ 1 1,555,000 $ 1 ,231 ,439 $ , ,301!129 $ 11,561,439 $ 12,856,129
The County's total debt decreased by $ 1 , 295, 000 (10.07%) du ring Ihe current year, this was due to de bt
repayment.
The County maintains an "A+" rat in9 from Standard & Poor's and an "AA" rating from Fitch for ge neral ob ligat ion
debt.
Additional infOrmation on the County's long-term debt can be found In Note 1 1 .
11
CAPITAL ASSETS AND DEBT ADMINISTRATION - (Continued)
Et::onomie 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 2006 budget was adopted by Commissioners' Court on September 1 9, 2005. The property tax rate
was set at $0.3986 (39.86 cents) per $ 1 00 assessed taxable valuation, which reflects no change from the 2004
tax rate. The budget included cost of living salary increases of 3%.
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 122, Victoria, Texas 7790 1 .
12
Basic Financial Statements
STATEMENT OF NET ASSETS
December 31- 2005
Primary Government
Governmental Business-type Component

Activ ities Activities Total Units
ASSETS
Current assets
Cash and cash equivalents $ 1 1 ,504,059 $ 475,054 $ 1 1 ,979,1 1 3 $ 43,843,566
Cash and cash equivalents-
restricted 2,31 6,907
Investments 2,349,738 1 36,256 2,485,994 2,470,600
Receivables (net) 1 4,929,321 3.407 14,932,728 1 3,427,281
Internal balances 364,897 (364,897)
Due from other governments 1 ,642,239 1 09,482 1 , 751 , 72 1 9,1 26
Due from external parties 35,000 35,000
Inventory 1 9,31 1 19,31 1 2,1 1 2, 1 44
Prepaid e)O;penses 1 28,476
Total current assets 30,825,254 378,61 3 31 ,203,867 64,308,1 00
Noncurrent assets
Capital assets
Land and other assets not being
depreciated 1 , 365, 758 1 49,433 1 ,515,191 14,685,863
Buildings, Improvements, and
equipment (net) 22,691 , 727 9,608,052 32,299,779 00,808,022
Issuance costs (net) 1 02,911 58,541 1 61 .452 2,365,956
Restricted assets
Cash and oash equivalents 4 , 776,275
Investments 23,191,785
Total noncurrent assets 24,1 60,396 9,81 6,026 33,976,422 1 1 1 ,827,901
Total assets 54,985,650 1 0,1 94,639 65,1 80,289 176,136,001
13
Primary Government
Governmental Busi ness-type Component

Activities Activities Total Units
LIABILITIES
Current liabilities
Accounts payable $ 933,1 85 $ 327, 1 75 $ 1 ,260,360 $ 1 ,626 , 680
Accrued e)(penses 390,012 1 5,284 405,296 8,307,728
Accrued interest paya ble 145,381 23,899 1 69,280 . 1 ,051,775
Due to other governments 301 ,41 3 301,413 2,21 4,933
Claims payable 21 7,557 217, 557
Unearned revenue 1 4,96 1 ,674 14,961 , 674 1 ,450,187
Accrued compensated absences 1 8, 023 1 8, 023
Current portion of long-term
obligations 2,097,443 75,000 2, 1 72,443 2,525,000
Total current liabilities 1 9, 046 , 665 459,381 1 9,506,046 1 7, 1 76,303
Noncurrent liabilities
Noncurrent portion of long-term
obligations 1 1 ,229,613 1 , 1 66 , 39 7 1 2, 396,21 0 39, 725,0 00
Total nonourrent liabi lities 1 1 ,229,613 1,1 66,397 1 2,396,21 0 39,725,000
Total liabilities 30,276,478 1 ,625,778 3 1 ,902,256 56,90 1 ,30 3
NET ASSETS
Invested In capital assets, net of
related debt 14,144,366 8,584,587 22,728,953 45,754,565
Restrioted for:
Debt service 359,861 359, 86 1 1 ,524,554
Unrestricted net assets 1 0,204,945 (15,726) 1 0,1 89,219 71 ,955,579
Total net assets $ 24,709,172 $ 6,568,861 $ 33,27a,033 $ 1 1 9,234,698
The accompanying notes are an integral part of this statement.
14
S TATEMENT OF A CTIVITIES
Program Revenues
Operating Capital
Charges for Grants and Grants and
Function/Programs Expenses Services Contributions Contributions
Primary Government
Governmental activities
General government $ 14,152,292 $ 4,589,676 $ 984,681 $ 672,794
Public safety 9,929,954 3,401,404 1 98,308
Highways and streets 4,232,306 1 ,750,489 167,962
Culture and recreation 1 ,293,663
Public health 3,653,066 375,485 1 ,876,193 22,877
Interest on long-term debt 430,889
Total governmental activities 33,692,170 1 0, 1 1 7,054 3,227,144 695,671
Business-type activities
Airport 2,295,210 1 ,559,650 1 ,773,31 1
Navarro Project 481 ,568 535,960
Commissary 73,431 81 ,269
Total business-type activities 2,850,209 2,1 76,879 1 ,773,31 1
Tolill pri mal)' govern me nt $ 36,542,379 $ 12,293,933 $ 3,227, 144 $ 2,468,962
Component Units � 105,414,560 $ 1 1 3,343,992 $ 67,131 $ 1 78,868
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 on sale of capital assets
M iscella neou s
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending
The accompanying notes are an Integral part of this statement.
15
Net (Expense) Revenue and
Changes in Net Assets
Primal1 Government
Busines$-
Governmental type Component
Activities Activities Total Units
$ (7,905, 141) $ -
$ (7,905,141) $
(6,330,242) (6,330,242)
(2,31 3,855) (2,31 3,855)
(1 ,293,663) (1 ,293,663)
( 1 ,378,51 1 ) (1 ,378,51 1 )
(430,88 9) (430,889)
(19,652,301) (1 9,652,301 )
1 ,037,701 1 ,037,701
54,392 54,392
7,838 7,838
1 ,099,981 1 ,099,981
(1 9,652,301 ) 1 ,099,981 (18,552,320)
8,1 75,431
1 3,51 0,567 1 3,51 0,567 1 , 1 05,941

1 ,669,463 1 ,669,463 363,653
6,005,658 6,005,658
21 5, 784 21 5,784
1 24,1 1 8 1 24, 1 1 8
585 ,776 23,499 609,275 1 ,869,224
235,488 235,488
463,016 463,01 6 25,866
(1 30,000) 1 30,000
22,679,870 1 03,499 22 ,833 , 369 3,364,684
3,027,569 1 ,253,480 4, 281 , 049 1 1 ,540, 1 1 5
21 ,681 ,603 7,31 5,381 28,996,964 1 07,694,583
$ 24,709,172 $ 8,568,861 $ 33,278,033 $ 1 1 9,234, 698
16
BALANCE SHEET
GOVeRNMeNTAL FUNDS
December 31, 2005
Other Total
Governmental Governmental
General Funds Funds
ASSETS
Current assets
Cash and cash equivalents $ 7,970,771 $ 3, 533,288 $ 1 1 ,504,059
Investments 1 ,599,578 750,160 2,349,738
Receivables (net) 1 1 ,794,537 2,41 5,732 14,210,269
Due from other funds 1 ,325,91 1 268 1 ,326,179
Due from other govern ments 581,515 1 ,060,724 1 ,642,239
Advance to other funds 362,219 362,21 9
Total assets $ 23,634,531 $ 7,760, 1 72 $ 31 ,394,703
LIABILITIES AND FUND BALANCES

Liabilities
Accounts payable $ 307,172 $ 625 01 5
, $ 932, 1 87
Accrued expenditures 285,259 1 04,753 390,012
Due to other funds 528,756 528,756
Due to other governments 301 ,413 301,413
Deferred revenue 14,214,334 3,483,676 1 7,69a.o12
Total liabilities 1 5,108,178 4,742,202 19,650,360
Fund balances
Reserved for:
Debt service 252,772 252,772
Advances 362,219 362,21 9
Adult Probation 24,513 24,513
Unreserved, undesignated reported In:
General fund 8,1 39,621 8,1 39,621
SpeCial revenue funds 2,460,438 2,460,438
Capital project funds 304,760 304,760
Total fund balances 8,526,353 3,01 7,970 1 1 ,544,323
TQtal liabilities and fund balanc:es $ 23,634,531 $ 7,760, 1 72 $ 31,394,703
17
RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET ASSETS
OF GOVERNMENTAL ACTIVITIES
December 31, 2005
Total governmental fund balances $ 1 1 ,544,323

Amounts reported for governmenta/ activities in the statement of net asseis are
diff8rent 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 Ihe Internal service
fund Is included in governmental activities in the statement of net assets. (259,248)
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 , 184,047
Because the focus of governmental funds is on short-term financin9, 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. 1,552,291
Capital assets used in gover nmental activities are reported as expenditures In

governmental funds when purchased or constructed . The cost of these assets is
$43,296,251 and the accumulated depreciation is $1 9,238,766. 24,057,485
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 $59,96 1 . 1 02,911
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 (10,330,000)

Capital leases payable (1,930,790)
Rebatable arbitrage earnings (3,867)
Accrued Interest on the bonds (145,381)
Compensated absences (1 , 06 2 , 599) (1 3,472,637)
Net assets of governmental activIties $ 24?09,172
18
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
• l-
ather Tota l
Governmental Governmental
Genera l Funds Fu nds
REVENUES
Taxes $ 1 7,893,072 $ 3,339,106 $ 21 ,232, 1 78
Fees of office and user fees 1 ,690,3 1 1 781 ,976 2,472,287
Intergovernmental 4,343,01 3 5,487,261 9,830,274
Fines and forfeitures 1 ,353,619 1 1 0,007 1 ,463,626
Investment Income 409,202 1 76,540 585,742
Licenses and permits 33,524 33,524
Contributions 6,424 9,661 1 6,085
Miscellaneous 766,879 1 01 ,053 867,932
Total revenues 26,496,044 1 0,005,604 36,501 ,648
EXPENDITURES
Current
General gove rn ment 1 2,024,366 2,253,765 14,278,131
Pu blic safety 9,222,105 61 ,268 9,283,373
Highways and streets 4,337,766 4,337,766
Culture and recreation 1 ,234,324 6,734 1 ,241,058
Public health 58,756 3,653,967 3,71 2,723
Capital outlay 643,352 643,352
Debt service
Principal retirement 1 ,225,000 1 ,225,000
Interest and fiscal charges 41 7,093 41 7,093
Total expenditures 22,539,551 12,598,945 35, 1 38,496
Excess (deficiency) of revenues

over expenditures 3,956,493 (2,593,341 ) 1 ,363,152
OTHER FINANCING SOURCES (USES)
Sale of assets 293,939 10,036 303,975
Transfers in 307,273 1 ,784,091 2,091,364
Transfers out (2,004,855) !32O,509) (2,325,364)
Total other financing sources (uses) (1 ,403,643) 1 ,473,618 69,975
Change in fund balances 2,552,850 (1 ,1 19,723) 1 ,433, 1 27

Fund balances at begi nn ing of year 5,973,503 4,1 37,693 1 0, 1 1 1 , 1 96
Fund balances at end of year $ 8,526,353 $ 3,01 7,970 $ 1 1.544,323
The aooo mpanying notes are an integral part of this statement .
19
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITies
Total net change in fund balanoes governmental funds

• $ 1 ,433, 127
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 Income of the Internal service fund is
reported with governmental activities. 1 32,885
The net effect of various transactions involving capital assets (I,e" sales and
trade-Ins) Is to decrease net assets. (68,487)
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 2005 capital outlays is to
increase net assets. 1 ,463,252
Depreciation is not reoognized as an expense on the governmental funds since it

does not require the use of current financial resou rces The net effect of the
.
current year's depreciation Is to decrease net assets. (1 ,640,798)

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 ,225,000
Capital lease principal retirement 569,270 1 ,794,270
Because some property taxes will not be collected for several months after the
County's fiscal year ends, they are not con sidered "available" revenues and are
deferred in the governmental funds. Similarly, other reven ues are not currently
available at year end and are not reported as revenue in the governmental funds.
Property taxes 1 52.523
Other revenues @S,S53) 1 1 2,570
Some items reported in the statement of actiVities do not require the use of
current financial resources and therefore are not reported as expe nd itu res in
governmenlal funds. These activities consist of:
Increase in compensated absences (185,454)
Decrease in accrued interest 14,542
Decrease In issuance costs (28,338) (1 99.250)
Change in net assets of govemmental activities
20
S TA TEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2005
Business-!}'De Aotivities
Governmenta l
Activi ties-
Navarro I nternal Se rvice
Air!:!ort Prolect Commissa!1 Total Fund
ASSETS
Current assets
Cash and cash equivalents $ 387,81 1 $ 3,786 $ 83,457 $ 475,054 $
Investments 1 36,256 1 36,256
Receivables (net) 3,407 3,407 71 9,D52
Due from other governments 109.482 1 09,482
Inventory 1 9,31 1 1 9,31 1
Total current assets 520,01 1 1 40,0 42 83,457 743,51 0 719,052
Noncurrent assets
Capital assets
depreciated 1 49,433 149,433
Buildings, improvements, an d
equipment (net) 6,563,283 3,035,931 8,838 9, 608 052
,
Bond issue costs (net) 58,541 58,541

Total noncurrent assets 6,563,283 3,243,905 M38 9,816,026
Total assets 7,083,294 3.363,941 92,295 1 0,559,536 71 9,052
LIABILITIES
Current liabilities
Accounts payable 203, 1 22 1 22,608 1 , 445 327, 1 75 996
Accrued expenses 1 3,602 687 995 1 5,284
Accrued interest payable 23,899 23,899
Due to other funds 2,337 1 66 1 75 2,678 759,745
Advance from other funds 362,219 362,21 9
Claims payable 21 7,557
Accrued compensated absences 16,544 942 537 1 8,023
Current portion of bonds payable 75,000 15,000
Total current liabilities 235,605 585,521 824,278 978,300
Noncurrent liabilities
Accrued compensated abse nces 9,1 42 520 296 9,958
Bonds payable, net 1 , 1 56 , 439 1,1 56,439
Total noncurrent liabilities 9,142 1,1 56,959 296 1,1 66,397
Total liabilities 244,747 1 ,742,480 3,448 1 ,990,675 978,300
NET ASSETS
Invested in capital assets,
net of related debt 6,563,283 1 ,988,567 8,838 8,560,688
Unrestricted net assets 275,264 !347, 1 00) 80,009 6,1 73 !259,248)
Total net assets $ 6,838,547 $ 1 .641 ,467 $ 66,647 $ 6,568,861 $ (259,248)

21
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
8usiness-�j:le Activities
Governmental
Activities-
Navarro Internal Service
Airj:lort Project Comm lssat:l Total
OPERATING REVENUES
Charges for services $ 852,201 $ $ 81 ,269 $ 933,470 $ 2,251,071
Rents 703,069 535,960 1 ,239,029
Miscellaneous 4,360 4,380
Total operating revenues 1 ,559,650 535,960 81 ,269 2,1 76,879 2,251,071
OPERATING EXPENSES
Airport operations 1 ,668,876 1 ,668,876
Commissary operations 66,985 66,965
Lease operations 1 97,563 1 97,563
Health services 2,222,220
Depreciation an d amorti,ation 626,334 208,299 6,446 841,079
Total operating expenses 2,295,21 0 405,862 73,431 2,774,503 2,222,220
Operating income (loss) before

nonoperating revenues
(expenses) and contributions
and transfers (735,560) 1 30,098 7,838 (597,624) 28,851
NONOPERATING REVENUES
(EXPENSES)
Investment income
Interest 1 6,826 8,037 2,970 27,833 34
Net increase (decrease) in the fair
value of Investments (4,334) (4,334)
Interest and debt costs (75,706) !75,706)
Total nonoperating revenues

(expenses) 1 6,826 !72,O03) 2,910 (52,207) 34
Income (loss) before contributions

and transfers (718,734) 58,095 1 0,608 (649,831 ) 28,885
Contributions and transfers

Capital contributions 1 ,773,31 1 1 ,773,31 1
Transfers in 1 30,000 1 30,000 1 04,000
Total contributions and transfers 1 ,903,31 1 1 ,903,31 1 104,000
Change in net assets 1 , 1 84,577 58,095 10,808 1 ,253.480 1 32,885
Total net assets at beginn ing of year 5,653,970 1,583,372 76,039 7,315,381 '392,1 33)
Total net assets at end of year $ 6,838,547 $ 1 ,641A67 $ 88,847 $ 8,568,861 $ (259,248)
22
STATEEMEENT OF CASH FLOWS
PROPRI£TARY FUNDS
For the year ended DElClilmber 31, 2005
Elusiness-!l!(!e Activities
Governmental
Activities-
Navarro Internal
Ai!:Eort Project Commissa� Total Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 1 ,568,998 $ 535,960 $ 61 ,269 $ 2,186,227 $ 2,251,071
Cash pa id to suppliers for goods and services (1 ,028,733) (162,961) (1 4 ,1 57) ( 1 ,205,851 ) (3,143,445)
Cash paid to employees for services (647,731) (35,543) (5 1 , 884) (735,1 58)
Net cash provided (used) by operating
activities (1 07,466) 337,456 1 5,228 246,2 1 8 (892,374)
CASH FL.OWS FROM NONCAPITAL

FINANCING ACTIVITIES
Borrowing (repayments) to other funds (651 ) 64 ,445 (1 1 0) 63 , 664 759,745
Transfers in from other funds 1 30,000 1 30,000 104,000
Net cash provided (used) by noncapital
financing IIctlvltles 1 29,349 64 .445 (1 1 0) 193, 684 863, 745
CASH FLOWS FROM CAPITAL AND

ReLATED FINANCING ACTIVITIES
Capital contrlbvted by federal govern ment 1 ,694,896 1 ,694,896
Acquisition and construotlon of capital assets (1 ,800,232) (263,249) (2,096) (2,065,577)
Principal paid on bonds (70,000) (70,000)
Interest paid (76,598) (76,598)
Net cash provided (used) by capital and

related financing activities (1 05,336) (409,847) (2,096) (51 7,279)
CASH FLOWS FROM INVESTING ACTIVITIES

Investment income 1 6,826 8,037 2,970 27,8 33 34
Net cash provided (used) by

Invastlng activities 1 6,826 8 ,037 2, 970 27,833 34
Net Increase (decrease) in cash and cash

equivalents (66,627) 91 1 5,992 (50,544) (28,595)
Cash and cash equivalents at beginning of year 454,438 3,695 67,465 525,598 28,595
Cash and cash equivalents at end of year $ 387,8 1 1 $ 3?86 $ 83,457 $ 475,054 $
23
STATEMENT OF CASH FLOWS
PROPRIIETARY FUNDS
For the yei!lf ended December 31, 2005
Business-lype Activities
Governmental
Activities.
Navarro Internal
Airport "'reject Commissary Total Service Fund
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY OPERATING
ACTIVITIES
Operating income (loss) $ (735,560) $ 1 30,098 $ 7,838 $ (597,624) $ 28,851
Adjustments to reconcile operating income to

net cash provided by operating activities
Depreciation and amortlzallon 626,334 208,299 6,446 841 ,079
Changes In assets and liabilities
(Increase) decrease In accounts receivable 9,348 9,348 (518,725)
(Increase) decrease In Inventory 2,623 2,623
Increase (decrease) In accounts payable (19,341) (1 ,234) 457 (20,1 1 8) (1 04)
Increase (decrease) In accrued expenses 3,341 21 27 3,389
I nc rea se (decrease) In compensated absences 5,789 272 460 6,521
Increase (decrease) in claims payable (402,396)
Total adjustments 628,094 20 7,358 7,390 842,842 (921,225)
Net cash provided (used) by

operating activities $ (107,466) $ 337,456 ill 15,228 $ 245,218 $ (892,374)
NONCASH INVESTING ACTIVITIES

Decrease in fair value of investments ::,.
$ __ ,.;;
- $ 4,334 :!!,
$ __ ....
. .:. $ 4,334 :!!,
$ __ .....:.
The accompanying noles are an integral part of this statement.
24
COU NTY OF VICTORIA, TEXAS
STA TEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2005
Private
Purpose Agency
Trust Funds
ASSETS
Cas h and cash equivalents $ 58,828 $ 7,461 ,578
Receivables (net)
Other 69,744
Due from other governments 8, 1 38
Seized assets 6,886
Total assets 58,828 7,546,346
LIABILITIES
Liabilities
Accounts payable 1 2, 1 29 4,270,238
Accrued expenditures 236
Due to other funds 35,000
Due to other governments 3,275,872
Total liabilities 47,129 7,546,346
NET ASSETS
Unrestricted net assets $ 1 1 ,699 $
25
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the year ended DeC8mber 31, 2005
Private
Purpose
Trust
ADDITIONS
Investment income
Interest $ 1 .067
Miscellaneous
Participants' contributions 1 56.403
Total additions 1 57,470
DEDUCTIONS
General government
Participants' withdrawals 1 60.806
Changes in net assets (3,336)
Net assets - begin ni ng 1 5.035
Net assets · ending $ 1 1 .699
26
STA TEMENT OF NET ASSETS
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 $ 5,029,285 $ 1 32,734 $ 38,68 1 , 547 $ 43,843,566
Cash and cash equivalents-restricted 2,31 6,907 2,31 6,907
Investments 2,470,600 2,470,600
Receivables (net) 1 ,207,621 125 1 2,219,535 1 3,427,281
Due from other governments 9,126 9,126
Supplies inventory 2, 1 1 2, 1 44 2,1 1 2,144
Prepaid expenses 400 1 28,076 128,476
Total current assets 8,707,506 142,385 55,458,209 64,308,1 00
Noncurrent assets
Capital assets
depreciated 8,539,31 7 6,1 46,546 1 4,685,863
Buildings, improvements, and
equipment (net) 2,91 7,730 63,890,292 66,808,022
Bond Issue costs (net) 66,098 2,299,858 2,365,956
Restricted assets
Cash and cash equivalents 4,776,275 4,776,275
Investments 23,191 ,785 23,191 ,785
Total noncurrent assets 1 1 ,523,145 1 00,304,756 1 1 1 ,827,901
Total assets 20,230,651 1 42,385 1 55,762,965 1 76,1 36,001
LIABILITIES
Current liabilities
Accounts payable 1 24,777 2,742 1 ,499, 161 1 ,626,680
Accrued expenditures/expenses 1 ,529 8,306,199 8.307,728
Accrued interest payable 33,265 1 ,018,510 1 ,051 ,775
Due to other governments 2,21 4,933 2,21 4,933
Unearned revenue 1 ,450,1 87 1 .450,187
Current portion of long-term obligations 265,000 2,260,000 2,525,000
Total current liabilities 1 ,873,229 4,271 1 5,298,803 17,1 76,303
Noncurrent liabll�ies
Noncurrent portion of long-term obligations 2,480,000 37,245,000 39,725,000
Total noncurrent liabil ities 2,480,000 37,245,000 39,725,000
Total liabilities 4,353,229 4,271 52,543,803 56,901 ,303
NI!T ASSETS
Invested in capital assets, net of related debt 8,781 , 1 45 36,973,420 45,754,565
Restricted for:
Debt service 226,157 1 ,298,397 1 ,524,554
Unrestricted net assets 6,870,120 1 38,1 1 4 64,947,345 71 ,955,579
Total net assets $ 15,877.422 $ 1 381 1 1 4 $ 1 03,2191162 $ 1 1 91234,698
27
STA TEMENT OF ACTIVITIES
COMPONENT UNITS
Program Revenues
O perating Capital
Charges for Grants and Grants and
Function/Programs Expenses Services Contributions Contributions
Component Units
Victoria County Navigation District $ 1 ,61 5,388 $ 558,500 $ $ 1 72,453
Victoria County Child Welfare Board 82,903 2 , 91 0 67, 1 31
Citizens Medical Center 103, 71 6,269 1 1 2,762,562 6,41 5
Total component units $ 1 05,414,560 $ 1 13,343 ,992 $ 67,131 �

$ _...!1.!,.:
78 � ,8
::::6�
8
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
26
Net (Expense) Revenue
and Changes
in Net Assets
Component Units
Victoria County Victoria County Citizens
Navigation Child Welfare Medical
District Board Center Total
$ (884,435) $ $ $ (884,435)
(1 2.862) (12.662)
9,072,728 9.072.726
(664,435) (12.862) 9,072,728 8,1 75,431
1 , 1 05,941 1 ,1 05,941
363,653 363.653
236.097 2.641 1 .626.266 1 .869.224
25,595 271
1 .733.286 3,1 1 2 1 ,628,286 3,364,684
848,851 (9,750) 10.701.014 1 1 .540,1 1 5
1 5,028.571 1 47,864 92,518,148 1 07,694,583
$ 1 5,877,422 $ 1 38, 1 1 4 $ 103,219, 1 62 $ 1 1 9,234.696
29
NOTES TO FINANCIAL STATeMeNTS
December 31, 2005
INDEX
1 Summary of Significant Accounting Policies......................................................... . . ... . .... ... .

. . 31
2 Stewardship, Compliance, and Accountability ........ .. ...... . . . ................. . . . ...... . . . ....... .. ....... . ..... . 38
3 Deposits and Investments...................................................................... ................................ 39
4 Receivables..................... ........ ........ . .... ...... . ........ .......... ...................................... . . ..............

. .. 40
5 Capital Assets ........... . . . ..... ... . .. . ..........

. . .... ........... ... .. .... . ........... . ....... " ................... . . . . ............ , 41
6 Employees' Retirement Plan, ..... . .. , .... " ....... " ... , ............ " , ................. , .......... , .... ,.................... 42
7 Other Post Employment BenefiI8 .. .................................... . .. .... .............. .. ... . ........ . .. ... .... ... .... , 44
8 Employees' Health Insurance Fund ... . ........ . .......................... .. ....... . ............ . ....... . ................
. 44
9 Deferred Compensation Plan . . .. , ... , ............................................ " .. " .. , .... " .... , ....... ,................ 45
10 Risk Management ................ . ..... .. . , . . . . . , . . . , ... " ... , ..... " ....... " . . ...... , ................................ , . .........
. 45
11 Long-Term Debt ........ . ... .. ... . .. .. . ...... , ......... , .... , ... , ..... " ... , ... , ........ " .. " .. ,.................................... 45
12 Prior Year Defeasance of Debt . . . . . ......................................................................................... 46
13 Inlerfund Receivables, Payables and Transfers .................................................................... 48
14 Related Party Transactions , .. " " ................................... , ...... , ....... , ..... , ........... , ....... , ....... ,........ 49
15 Contingencies .. . ....... . , . . , ............................... , .... , ..... " . . " ..... , .... , ....... , ................................... , .
. 49
16 Subsequent Event .. . .... " ... ,." ... , ... " ......... , ...... " ................... . ......................... , ... , .... " ... , .. " " ,.
... 49
17 Victoria County Navigation District . . ........ . . ................................................. . . . . . ...................... 50
18 Victoria County Child Welfare Board ............................. ........... . ............................................ 54
19 Citizens Medical Center , . ....................... ........... .. .... ......... .. . . ....... ..... ...................... ..... ........
.. . 56
30
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
NOTE 1; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The County of Victoria, Texas (the 'County") is a pol itical 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 officia l s,
A Reporting Entitv
In evaluating how to define the government, for financial reporting purposes, the County's management
has considered all potential component un�s, The decision to include a potential component unit in the
reporting entity was made by applying the criteria set forth in GASB Statement No, 14, The Financial
Reporting EntNy, and as amended by GASB Statement No, 39, Determining Whether Certain
Organizations are Component Units, Under these gu idelines, 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, organlzatlons
that raise and hold economic resources for the direct benefrt of the primary government, and any other
organization for which the nature and Significance of their relationship �h the primary government is
such that exclusion could cause the County's fi na ncial statements to be misleading or Incomplete,
Entities other than the primary government that are Included in the primary govern me nt's financial
statements are called component units, The component un� d iscuss ed in this note are included in the
County's flnanclal statements because of the significance of their financial relationships with the County
and the Coun ty's ability to im pose � will on the organizations,
ComQ!lnent Unjts
The component units column In the financial statements includes t he finanoial 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 Commissioners' Court of the County, The Commissioners' Court of Victoria
also reviews a nd 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 Boand - Established to provide various child protective services to residents
of the County, The Comm iss ioners' Court of the County apPOints each member of the entity's board of
directors and reviews and approves its annual budget. The progra ms of the Board are jointl y financed by
the County and the State of Texas, This entity is considered a Gov ernmental Fund Type for the County's
reporting purposes and uses the same fiscal year as t he Coun ty,
Citizens Medical Center - A 36B-bed acute care hosp�al owned by the County and established to provide
medica l 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, C�izens
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, 2005, The Medical Center is reported as a
Proprietary Fun d Type in the accompanying financial statements.
31
NOTE 1 : SUMMARY OF SIGNIFICANT ACCQUNTING POLICIES - (Continued)
A. Reporting Entity - (Continued)
Complete fi na ncial 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 Cou nty Child Welfare Board

1502 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 nonfiducia ry activities of the County and its component
units. For the most part, the effect of Interfund activity has been removed from these statements.
Governmental activ ities, which normally are su pported by taxes, and intergovern menta l revenues are
reported separate ly from bUS in ess-type activitiEls, wh ioh rely to a signtficant extent on fees and charges
for support. Likewise, the primary government is reported separately from its legally separate
componenl units.
The statement of activities demonstrates the degree to which the direct expenses of a g iven function or
seg me nt 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 direclly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and oontributions that are restricted to meeting the operational or cap ital
requirements of a particular function or segme nt. Taxes and other items not properly included among
program revenues are reported in stead as general revenu es .
Separate financial statements are provided for governmental funds, proprietary funds, discretely
presented component units, and fiduciary funds, even though the laiter 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 Account ing. and Financial Statement Presentation
The governme nt-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accou n ting, as are the proprietary fund and fiduoiary fund flnanclal
stateme nts . Reve nues 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 reoognized as revenue as soon as all
eligibility requirements im posed by the provider have been met
32
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)
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. For
this purpose. the County considers revenues to be available if they are collected within 60 days of the
end of the current period. Expenditures generally are recorded when a liability is incurred, as under
accrual accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment Is due.
Property taxes. fines. and interest associated with the current period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other
revenue items are considered to be measurable and available only when cash is received by the
County.
The 2005 tax levy is dedicated to pay for expenditures of the 2006 budget. The entire 2005 tax levy
has been recorded as deferred revenue as of December 31 , 2005.
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 publio 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 County reports the following funds:
The Internal Service Fund accounts for the financing of goods or services provided by one
department or agency to other departments or agencies of the County, or to other governments.
on a cost·reimbursement basis. The County maintains one Internal Service Fund: Employee
Health Insurance Fund.
33
NOTE 1; SUMMARY OF SIGNIFICANT ACCOUNTING eOLlCIES (Continued) •
C. Measurement Focus. Basis ofAccounting 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 County 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 011 long-tenn general obligation debt of governmelltal funds.
The Capital Project Funds account for financial resources to be used for the acquisition or
construction of major oapital facilnies 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 the 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 applioants for goods.
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, Including special assessments. Internally dedloated 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 ·
NOTE 1: SUMMARY OF SIGNIFICANT 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
(GMP). 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
members of the Commissioners' Court advised of the condition of the various funds and accounts. The
level of control (the level on which expenditures may not exceed 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 $1,136,904. Budget expenditure amendments in these funds netted an increase of
$2,424, 196.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
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. Enoumbered 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 agenoies and instrumentalities; direct obligations of the State of Texas or Its
agencies and instrumentalities; collateralized mortgage obligations directly issued by a federal agenoy or
instrumentality of the United States, the underlying security for which Is guaranteed by an agency or
instrumentality of the United States; other obligations, the principal and interest of which are
unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of Texas or the
United States or their respective agencies and Instrumentalities; certificates of deposit issued by a state or
financial InstituUon domiciled in the State of Texas which is guaranteed or insured by the FDIC or
othelWlse secured; and certain repurchase agreements.
The COmmissioners' Court has adopted a written investment polioy regarding the Investment of its funds
as defined by the Public Funds Investment Act of 1995. The Investments of the County are In compliance
with the Commissioners' Court's investment policies.
35
NOn: 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)
F. 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 tolfrom 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 e)(pendable available financial
resources.
All trade and property tax receivables are shown net of an allowance for uncollectibles.
G. Inventorv
Inventories of supplies held by the Airport Fund, an enterprise fund. are valued at the lower of cost (first-in,
flrst-out) or market. Estimated cost is used when actual cost figures are not available.
H. 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 ac tivities
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 inilial capitalization of general
infrastructure assets, the County ohose to include all such items acquired on or after Jan uary 1 , 2003.
The County will re port infrastructure assets aoquired prior to January 1, 2003 beginning in year ending
Deoember 31 , 2007.
As the County constructs or acquires capital assets each period, they are capitalized an d reported at
historical cost. Donated capHal 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 cap ital
assets of bus in ess-type activities Is not included as part of the capitalized value of the assets
constructed.
Property, plant, and equIpment of the primary government is de preciate d using the straig ht line method
over the following estimated useful lives:
� Years
Buildings 10-50
Improvements other t han buildings 10-50
Infrastructure 40
Machinery and equipment 5-15
Office equipment and fixtures 5-10
36
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) -
L Compensaled 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 govemment-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 woridng 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.
J. 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 activ�ies, 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 actua l debt proceeds received, are reported as debt service expenditures.
K. Fund Equ ity
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.
L Use 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.
37
NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILI!'l
A. Deficit Fund Equity
As of December 31 , 2005, the following funds had deficit equity balances:
Fund Balancel
Net Assets
Nonmajor Governmental Funds

Special Revenue Funds
Health Department $ 1 28,800
Internal Service Fund

Employee Health Insurance 259,248
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 govern m ental funds. For the year
ended December 3 1 , 2005, the County over-expended appropriations at the following line-item levels:
Departm ent/Fund Amount
General Fund
Building maintenance
Operating expenditures $ 3,987
Parks and recreation
Salaries 3
NOTE 3: DEPOSITS AND INVESTMENTS
As of Decem ber 31 , 2005, the County had the following Investments:
Weighted Average
Investment Type Fair Value Maturity (Months)
U.S. Government Securities $ 2,485,994 38
Total $ 2.485.994
Interest Rate Risk
In accordance with the County's investment policy, the County manages its ellposure to declines In fair values
by limiti ng 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.
38
NOTE 3: DEPOSITS AND INVESTMENTS - (Continued)
Credit Risk
It is the County's polley to limit its investments to those with rati ngs of not less than A or its equivalent. The
County's investments in the U.S. Govemment SeourHies 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 be diversified in terms of
investment instrume n ts, maturity scheduling. and financial Institutions to reduoe the risk of loss resulting from
over conoentration 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 eve nt 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. 2005. $1 7,748,757 of the County's bank balance of $20.462.575 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, th is is the risk that. in the event of the failure of the cou nterpa rty, the County will not be
able to recover the value of its investments or collateral seourities that are in the posseSSion of an outSide
party. The County's investment polley 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 de livery versus payment method. As of
Deoember 31, 2005, and for the year then ended, the County was not exposed to any oustodial cred it risk.
Please see Notes 17. 18 and 19 for discussions relative to the cash deposits of the County's three component
units.
39
NOTE 4: RECEIVABI.ES
Receivables at December 31 , 2005 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
and Other
General Aireort Funds Total
Gross receivables
Ad valorem taxes $ 9,206,766 $ $ 2,524,894 $ 1 1 , 731 ,660
Sales taxes 1 , 1 76,66 1 1 , 1 78,681
Fines 5 ,1 67,732 5,1 87,732
Interest 4,798 4,798
Other 52,410 3,407 737,107 792,924
Total gross receivables 1 5,630,387 3,407 3,262,001 1 8,895,795

Less: allowances 3.835,850 127,217 3,963,067
Total net receivables $ 1 11794,537 $ 3,407 $ 3,134,784 $ 1 419321728
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 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 $ 931 ,577 $ 1 1 ,730,466 $ 1 2,662,043
Fines receivable 1 ,552 29 1
, 1,552,291
Nonmajor Funds
Ad valorem taxes receivable 252 ,470 3,210,022 3,462,492
Grants 21,166 21 ,1 86
$ � zaa 338 :Ii j�,9al,§ZSi iIj H,a9a,Q12
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 31 . 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 , 2005 was $_3986 per $1 00, which means the
County has a tax margin of $.4014 per $ 1 00.
40
NOTE 5: CAPITAL ASSETS
Primary Government
Begin ning Ending
Balance Increases Decreases Balance
Capital assets, not being depreciated
Land $ 1,365,758 $ $ $ 1 ,365,758
Total capital assets not being depreciated 1 ,365,758 1 ,365,758
Capital assets, being depreciated

Machinery and equipment 1 0,035,849 677,995 572,018 1 0,141 ,826
Buildings 1 8,51 9,306 1 92,482 1 01 ,238 1 8,61 0,550
Improvements 1 2,652, 1 1 6 592,775 66,774 1 3,1 78,1 17
Total capital assets being depreciated 41 ,207,271 1 ,463,252 740,030 41 ,930,493
Less accumulated depreciation for

Machinery and equip ment 6,287,542 691 ,741 507,399 6,471 ,884
Buildi ngs 6,230,542 344,785 101 ,238 6,474,089
Improvements 5,751,427 604,272 62,906 6,292,793
Total accumulated depreciation 1 8,269,51 1 1 ,640,798 671,543 1 9,238,766
Total capital assets bein g de preciate d , net 22,937,760 (1 77,546) 68,487 22,691 ,727
Govenmental activities capital assets, net $ 24,303,51 8 $ (1 77,546) $ 68,487 $ 24,057,485
Capital assets, not being depreciated
Land $ 1 49, 433 $ � $ 1 49,433
iotal capital assets not being depreciated 149,433 1 49,433

Machinery and equipment 632,663 16,684 4,840 644,507
Buildings 2,642,790 2,642,790
Im prove m ents 1 1 ,523,41 1 2,31 8,604 1 3,842,01 5
Total capital assets being depreciated 1 4,798,864 2,335,288 4,840 1 7,129,312

Machinery and equipment 422,342 62,481 4,705 480, 1 1 8
B uildi ngs 1 ,408,547 1 21 ,076 1 ,529,623
Improvements 4,869,279 652,240 5,51 1 ,519
Total accumulated depreciation 6,690,168 835,797 4,705 7,521 ,260
Total capital assets being depreCiated, net 8,108,696 1 ,499,491 1 35 9,608,052
Business-type activites capital assets, net $ 8,258,129 $ 1 ,4991491 $ 1 35 $ 9,751,485
41
NOTe 5: CAPITAL ASSETS - (Continued)
Depreciation expense was charged to functions/programs of the County as follows:
General government $ 518, 1 39
Pu blic safety 703,1;140
Highways and streets 295,323
Culture and recreation 55,797
Public health 67 699
Total depreciation expense - governmental activities � 1 640 798
Airport $ 626,334
Commissary 6,446
Navarro project 203 017
Total depreciation expense - business-type activities � 835 797
NOTE 6: I!MPLOYEES' RETIREMENT PLAN
The County provides retirement, disability, and death benefits for all of its full-time employees through a
nontraditional defined benefrt pension plan in the statewide Texas County and District Retirement System
(TCDRS). The aoard of Trustees of TCDRS is responsible for the administration of the statewide agent
multlple-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 employer, within the options available in the
Texas state statutes governing TCDRS (TCDRS Act). Members can retire at ages 60 and above with 8 or more
years of service, with 20 years of servioe regardless of age. or when the sum of their age and years of service
equals 75 or more_ Members are vested after 6 years of service but must leave their accumUlated contributions
In the plan to receive any employer-financed benefit. Members can withdraw contributions in a lump sum via
partial payments, however, these members are not entitled to any amounts contributed by their employer.
Benefit amounts are determined by the sum of the employee's contributions to the plan, with interest, and
employer-financed monetary credits. The level of these monetary credits is adopted by the governing body of
the employer within the actuarial constraints imposed by the TCDRS Act so that the resulting benefits can be
expected 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
employer-financed monetary credits to a monthly annuity using annuity purchase rates prescribed by the
TCDRS Act
A. Funding Policy
The employer has elected the annually determined contribution rate (Variable-Rate) 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 employee members. Under the TCDRS Act, the contribution rate of the
employer is actuarlally determined annually. It was 1 1 .00% for calendar year 2005. The deposit rate
payable by the employee members is the rate of 7.00% as adopted by the governing body of the
employer. The employee deposit rate and the employer contribution rate may be changed by the
governing body of the employer within the options available in the TCDRS Act.
42
NOTE 6; EMPLOYEES' RETIREMENT PLAN - (Continued)
B. Annual Pension Cost
For the employer's accounting year end ing December 31 , 2005, the annual pension cost for the TCDRS
plan for Its employees was $1 ,948,643 and the actual contributions were $1 .948.643.
The annual req uired contributions were actuarially determ i ned as a percent of the covered payroll of the
participating employees, and were in compliance with the GASB Statem ent No. 27 parameters based on
the actuarial valuation as of Decem ber 31 . 2004. the basis for de term ini ng the contribution rate for
calendar year 2005. The December 31, 2003 actuarial valuation Is the most recent valuation.
C, Actuarial Valuation and Trend Information
Actuarial Valuation Infonnatlon

12131 /02 12131/03 12/31/04
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% 5.5%
Inflation 3,5% 3,5% 3,5%
Cost of l iving adjustments 0.0% 0.0% 0.0%
(1) includes inflation at the stated rate
Trend Infonnation for the Retirement Plan for the

Employees ofthe County of Victoria, Texas
Fiscal Annual Percentage Net
Year Ending Pensi on ofAPC Pe nsion
l2!l2lwt!!!r �l r;;Qm (8�r;;l r;;Qo!J:it.l!J� Q!:!ligali2!l
2003 $ 1 ,347,224 100% $
2004 1 .6 16.963 100%
2005 1 ,948,643 100%
Schedule of Funding Progress for the Retirement Plan

for the Employees of the County of Victoria, Texas
UAAL as a
Actuarial Actu arial Actuarial Unfunded An nual Percentage
Valuation Value of Accrued AAL Funded Covered of Collered
Datf! Assets Llab il1!)' (AALI (UAALl RatlQ Pa�QU(1) �!illl[211
(a) (b) (b-a) (alb) (e) « Ira)!e)
1 2131102 $35,551,549 $ 42,296, 318 $6, 744,769 84.05% $ 1 7, 1 1 9,092 39.40%
1 2/31/03 39,191 , 1 92 47,91 7, 1 36 8,725,944 81 ,79% 1 7,297,132 60.45%
1 2/31/04 41 ,978,518 50,831 ,804 8,853,286 82,58% 1 7,709,859 49.99%
(1 ) The annual covered payroll is based on the employee contributions received by TCDRS for the year
ending with the valuation date .
43
NOTE 7; OTHER POST EMPLOYMENT BENEFITS
In addition to providing pension benefits, the County provides its retirees with post employment health care
benefits. In order for a County 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 20% of the premium cost for dependents wh o
may be covered under the retiree's health i nsurance plan.
Other post employment benefits are expensed and funded on a pay- as-you-go basis. The County recognizes
the cost of p rovidin g these benefits as a payroll expense/expenditure in an operating fund with corresponding
revenue in the Employee Health Insurance Fund . Payments for health insu rance are shown as an expense in
the Employee Health Insurance Fund. The cost of providing these benefits for 50 and 44 retirees and active
employees for the years 2005 and 2004, respectively, is not separated. Total payments to the Employee Health
Insurance Fund by retirees were $ 161,369 in 2005 and $ 1 29,546 In 2004.
NOTE 8; EMPLOYEES' HEALTH INSURANCE FUND
The County maintains a self-insurance internal service fund designed t o 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. Premiums are charged to the
individual funds based on a predetermined cost per employee and dependent. These amounts are recorded as
operating revenue in the internal service fund and as operating expenditures/expenses In the respective funds.
Any claims that have been Incurred , but not reported, as of the balance sheet date are sh own 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 31 , 2005, the fund had
estimated liabilities for outstanding claims of $217,557. There was a deficit unres tricted net assets of $259,248
as of December 31 , 2005, an increase of $1 32,885 from 2004.
Below is a reconciliation of claims liabilities reported in the Employee's H ealth Insurance Fund for the years
noted:
Payable Payable
Year 1/1 Incurred Paid 1V31
1 996 $142,738 $1 ,428,064 $1 ,377,200 $1 93,602
1997 193,602 2,045,794 1 ,908,828 330,568
1 996 330,568 1 ,754,903 1 ,81 0,932 274,539
1 999 274,539 2;639,039 2,719,839 193,739
2000 193,739 2,083,065 1 ,937,285 339,519
2001 339,519 2,61 7,446 2,21 1 ,485 745,480
2002 745,480 1 ,546,613 1 ,91 3,502 378,791
2003 378,791 1 ,635,920 1 , 742,013 272,698
2004 272,698 1 ,663,809 1 ,31 5,452 621 ,055
2005 621 ,055 1 ,548, 1 1 2 1 ,951 ,61 0 21 7,557
The above schedule reflects only those claims for wh ich the County was l iable. Information on claims paid by
the insurance carrier under the reinsurance policy was not available. Settled c laim s resulting from insured risks
have not exceeded Insurance cOllerage in any of the past t hree fiscal ye ars .
44
NOTE 9: DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in accordance with Internal Revenue
Code section 457. The plan, available to all County employees, permits them to defer a portion of their salary
until future years. Except in specified circumstances, the deferre(! 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 10:. 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 2005. There were no significant re(!uctions 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 1 : LONG.TERM OEeT
A. Changes In Long-Term Liabilities
Long-term liability activity for the year ended December 31 , 2005, was as follows:
Beginning Ending Due Within

Balanc!! Additions RedY!OIign!! BalaDC!! One Year
Bonds and certificates payable

Certificates of obligation $ 4,700,000 $ $ 31 5,000 $ 4,385,000 $ 325,000
General obligation bonds 6,1;\:1:1 QQQ 210,000 5,9!!f.i,QQQ 940,000
Total bonds payable 1 1 ,555,000 1 , 225,000 10,330,000 1 ,265,000
Capital leases payable 2,500,Q!2Q 569,270 1 ,9�Q,7!i!0 569,2711

Compensated absences !lZ7,145 1,280,�92 1 ,094,fl38 1 ,Q!22,599 263,lI3
Arbitrage earnings payable 3,867 3,867
Total 90vernmental activity

long-term liabilities $ 14 936 072 $ 1 .289,392 $ 2,889,208 i13 327 256 S2,097,£:!l}
Business.type activities
Bonds
Revenue bonds $ 1 ,305,000 $ $ 70,000 $ 1 ,235,000 $ 75,000
Less: issuance discount 3,871 310 3,561
Total bonds payable 1 , 30 1 , 129 69,690 1 , 231,439 75,000
Compensated absences 21 ,460 41 ,803 35,282 27,981 1 8,023
Total business-type activity

long-term liabilities $ 1 ,322 589 $ 41 ,603 $ 104 972 $ 1,259 420 $ 93,023
For the governmental activities. compensated absences are generally liquidated by the General Fund.
45
NOTE 1 1 : LONG·TERM DEBT (Continued)
-
B. General Obligation Certificates and Bonds
Long-term liabilities at December 31 , 2005 are comprised of the following issues:
$2,590,000 2003 Limited Tax Refunding (Jail) Bonds due in annual

installments ranging from $420,000 to $455,000 through 2009; interest varying
between 2.0% and 3.0% . $ 1 ,745,000
$775,000 2003 Unlimited Tax Refunding (Road) Bonds due In annual

installments ranging from $1 35,000 to $1 50,000 through 2009; interest varying
between 2.0% and 3.0%. 560,000
$1,650,000 1 998 Unlimited Tax (Road) Bonds due in annual installments

ranging from $1 45.000 to $205,000 through 2013; interests varying between
4.5% and 4.7 5%. 1 ,380,000
$2,700,000 1996 Limited Tax (Courthouse Restoration) Bonds due In annual

installments ranging from $240,000 to $335,000 through 2013; interest varying
between 4.1 % and 4.4%. 2,260,000
$5,000,000 2001 Certificates of Obligation (Bridge Street Annex) due in annual

installments ranging from $325,000 to $485,000 through 2016; Interest varying
between 3.55% and 4.5%. 4,385,000
Total general obligation debt $ 10 330 !.lJ.l9
Year Ending Governmental Activities

pecember 31 Principal Interest Total
2006 $ 1 ,265,000 $ 375,634 $ 1 ,640,634

2007 1 ,300,000 334,319 1 ,634,319
2008 1 ,360,000 290,418 1 ,650,418
2009 1 .405,000 241 ,925 1 ,646,925
2010 840,000 1 98,685 1 ,038,685
201 1 -2015 3,675,000 452,407 4,1 27,407
20 1 6 485.000 1 0 91 3 495,913
$ 1Q 330 000 l/!,

$ ' 994 301
==�1S��!:b $ 1 2 234 301
C. C!llI;!lta! I&!!§!!§
Capttal leases payable at December 3 1 . 2005 are comprised of the following Individual leases:
Lease purchase agreement on the construction of a regional juvenile detention

facility. The original amount of the lease, entered into In 1 995, was refinanced in
2004 for $2,351 ,458. It bears interest at a rate of 5.69% and requires monthly
installments of $41 ,626. $ 1 ,881,812
Lease purchase agreement on a 2003 Kubota tractor used by Precinct #1 . The

original amount of the lease. entered into in 2003, was $1 5,765. The lease Is
payable in three annual installments of $4,710 and bears no interest 2,355
46
NOTE 11: LONG·TERM DEBT . (Continued)
c. Capital Leases · (Co ntinu ed)
Lease purchase agreement on six 2005 Ford Crown Victoria four-door sedans
used by the Sheriff's Department. The o rig inal amount of the lease, entered into
in 2004, was $1 39,923. The lease Is payable in three annual in sta llm ents of
$48,232 and bears Interest at a rate of 3.45%. $ 46,623
Total caprta l leases $ 1.930.790
The present value ofthe capital leases after deduction of imputed interest Is $ 1 ,930,790.
Yea r End ing Governrnental Activities

December 31 Principal Interest Total
2006 $ 451 ,818 $ 98,286 $ 550,104

2007 426,368 73,148 499,516
2008 451 ,272 48,245 499,517
2009 477,629 21 ,887 499,516
2010 123,703 1 1 77
. 1 24,880
$ 1 930 790 $ 242 713 $ ? 173 533
D. Revenue Bondi
Revenue bonds paya ble Is comprised of the following:
$1 ,650,000 1997 Victoria County Public Facilities Corporation Lease Revenue

Bonds, Series 1 997 due in annual installments ranging from $75,000 to
$140,000 through 2017; interest rate varying between 5.35% and 6.00%. $ 1,235,000
Total revenue bonds $ 1.235.000
Annual debt service requirements to maturity for revenue bonds are as follows:
Year Ending Business-!Jl� Activities

Q!ilr.1!il!!!!.l!ilr �1 Princij;!!!1 Intel:§l Total
2006 $ 75,000 $ 69,691 $ 144,691

2007 75,000 65,678 1 40,678
2008 80,000 61 ,452 141 ,452
2009 85,000 56 874
, 141,874
2010 90,000 51 ,928 141 ,928
201 1 -2015 555,000 168,910 723,910
201 6-2017 275.000 1 6,650 291 ,650
:Ii 1,235,000 � �!i!j,jas :Ii j Z26,183
47
NOTI! 12: PRIOR YEAR DEFEASANCE OF DEBT
In prior years the County defeased certain general obligation bonds by placing the proceeds of new bonds in
an irrevocab l e trust to provide for all futu re 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 , 2005, $2,300,000 of bonds outstanding are considered defeased.
!\IOTE 13: INTERFUND RECEIVABb!;S, PAYABLES AND TRANSFERS
A. Interfund Receivables and Pavables
At times during the fiscal year the various funds of the County were involved In transactions that created
interfund rece ivable 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 ter m loans to the Navarro
-
Project Fund, a proprietary enterprise fund type, during the years ended December 31, 1998 through
December 31, 2005. 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.
Interfund receivable and payable balances as of December 31 , 2005, were as follows:
Receiva ble Fund Payable Fund Amount

General Nonmajor Governmental
Health Department $ 231,001
W.I.C. Program 221 ,667
Other Nonmajor Governmental 75,820
Airport 2,337
Navarro Project 1 66
Commissary 175
Internal Service 759,745
Private Purpose Trust 35,000
CDA Victims Assistance
Grant Nonmajor Governmental
CDA Processing Fee 268
Total $ 1 ,326,179
Advances from/to other funds:
Receivable Fund Payable Fund Amount
General Navarro Project $ 362,219
Total $ 362,219
48
NOTE 13: INTERFUNQ RECEIVABLES. PAYABLES AND TRANSFERS · (Continued)
B. 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 AllJ!!?rt Service Total
General $ $ 1 .nO.a55 $ 130,000 $ 1 04,000 $ 2,004,855
NonmaJor Governmental 307,273 1 3,236 320,509
$ 307.273 $ 1 .764.091 $ 1 30.000 $ 104.000 :I: 2.325.364
NOTE! 14: RELATED PARTY TRAN�6!::IIQ!!l�
During fiscal year 2005, the County's General Fund entered into transactions with the Victoria County
Navigation District and the Victoria County Child Welfare Board, discretely presenled component units of the
County. whereby the Navigation District contribu ted to the primary governm ent a total of $8.400 for services
of the County and the County oontrib uted to the Board $58.500 for operational purposes.
NOTE 15: CQNTlNGENCIES

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 granllng 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 31, 2005, the County was involved in various matters of litigation. II Is the opinion of the
Cou nty'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 probabilijy be covered by liab�ity insurance carned 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 16: SUBSEQUENT EVEN[
There were no events, which occurred su bsequent 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 Decem ber 31 . 2005.
49
NOTE 17: VICTORIA CgUNTY NAVIGATION DISTRICT
As described In Nole 1 , the Victoria County Navigation District is a component unit of the County. Il ls 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. Organlzstlon
Victoria County Navigation District (the "District") was oreated 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) V.A.T.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 Signifioant Accounting PoliCies
The accounting and reporting polioies of the District conform to generally accepted accounting principles
(GAAP), as applicable to governmental units. For inclusion in this report, the District's operations are
reported in a single Governmental F u nd Type.
C. Deposits and Inyestments
As of December 31, 2005, the District had the following investments:
Weighted Average
Investment Tyoe Fair Value Maturity
U.S. Government Securities $ 2.470,600 2.5 years
Total $ 2 470 600
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 m aturity of its investment portfolio for Investments to less than
five years from the time of purchase. Specifically, investments of o perating 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.
Credit Risk
II is the District's policy to limit its investments to those with ratings of not less than A or its equ ivale nt
.
The District's investments In the U.S. Government Securities had AAA ratings from both Standard &
Poor's and Moody and Fitch.
50
NOTE 17: VICTORIA COUNTY NAVIGATION DISTRICT · (Continued)
C. Deposils and Investments - (Continued)
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.
CYli!gdjal Credit Risk Deposjts

-
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 3 1 , 2005, $5,029, 1 85 of the District's bank balance of $5,037,91 3 was
exposed to custodial credit risk because it was uninsured and collateralized with securities held by the
District's depository.
Custodial Credit Risk · Investments
For an investment, this is the risk that, In the event of the failure of the CQunterparty, the District will not
be able to recover the value of its investments or collsteral 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 , 2005, and for the year then ended, the District was not exposed to any
custodial credit risk.
D. Recell/ables
Receivables at December 31 , 2005 consisl of the following:
Debt
General Service Total
Gross receivables:
Accounts $ 1 1 3,775 $ 1 8,867 $ 1 32,642
Ad valorem taxes 832 , 78 1 271,946 1 . 1 04.727
Interest 25,338 25, 338
Other 150 150
Total gross receivables 972,044 290,813 1 ,262,857
Less: allowances 41,§�2 13,597 55,236
Total net recell/ables $ 930 405 $ 277 21 A :iI,

$__.&.
' ?Q
II,j
.t11 I:..JBIloI?l.j,l
The DislJiel'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.
51
NOTE 17; VICTORIA COUNTY NAVIGATION DISTRICT - (Continued)
D. Receivables - (Continued)
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:
U navaila ble Unearned Total
General Fund
Ad valorem taxes receiva b le $ 42,699 $ 1 , 1 1 2,61 0 $ 1 , 1 55,209
Debt Service Fund
Ad valorem taxes receivable 30,907 337,677 368,584
$ Z�I§g§ i l �Qg l8Z :Ii j 523 Z93

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. Ta1!es 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. Capital Assets
The District's capHal asset activity for the year ended December 31 , 2005 was as follows :
Beginning Ending
Balance I ncreases Decreases Balance
Governmental ac:tivities
Capital assets, not being depreCiated
Land $ 8,497,073 $ 42,244 $ $ 8,539,317
Construction in progress 1 , 1 1 8,214 1 , 1 1 8,214
Total capital assets, not being depreciated 9,615,287 42,244 1 ,1 1 8,214 8,539,317

Improvements 5,751 ,820 1 ,528,230 7,280,050
M.P.R.R. Main Line Bridge 1 ,493,1 34 1 ,493,1 34
Equipment 4,735 1 .480 6,21 5
Total capital assets, being depreciated 7,249,689 1 ,529,71 0 8,779,399

Improvements 4,562,491 1 84,695 4,747,186
M.P.R.R. Main Line Bridge 1 ,083,388 27,677 1 , 1 1 1 ,065
Equipment 2,446 972 3,418
Total accumulated depreciation 5,648,325 21 3,344 5,861 ,669
Total capital assets being depreciated, net 1 ,601 ,364 1,316,366 2,917,730
Governmental activities capital assets, net $ 1 1,216,661 $ 1 ,358,610 $1,118,214 $ 1 1,457,047
Depreciation expense of $213,344 was charged to the general government function/program in 2005.
52
NOTE 17: VICTORIA COUNTY NAVIGATION DISTRICT (Continued) -
F. Long Term Debt

-
The following is a summary of general obligation bond transactions for the year ended
December 31, 2005 for governmental activities:
Bonds payable at January 1 , 2005 $ 3, 005,000

Additions
Retirements 260,000}
Bonds payable at December 31, 2005 $ 2 745 000
Bonds payable at December 31 , 2005 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, 2014; interest rate varies based on year of
maturity and ranges from 3.0% to 3.75%. $ 2 745 090
Annual debt service requirements to maturity for the general obligation bonds are as follows:
MiilllJcilifilli erinci!;!al Interest Total
2006 $ 265,000 $ 84,731 $ 349,731

2007 270,000 76,706 346,706
2006 285 000
, 68,381 353,381
2009 295,000 59,661 354,681
2010 305,000 50,881 355,881
201 1 -201 4 1,325,000 98,047 1.423,047
Tot al ;!! � Z�g CQQ 438 427 $ 3 183 427
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 1994 Series that was refunded has
$2,640,000 of bonds outstanding at December 31, 2005.
G. Commitments and Contingfilncifils
Grant Programs
The District participates in numerous state and federal grant programs which are governed by various
rules and regulations of the grantor agencies. Costs charged to the respective grant programs are
subject to audit and adjustment by the grantor agencies; therefore, to the extent that the District has not
complied with rules and regulations governing the grants, refunds of any money received may be
required and the oollectibility of any related receivable at December 3 1 , 2005 may be impaired. In the
opinion of the District, there are not significant contingent liabilities relating to compliance with the rules
and regulations governing the respective grants; therefore. no provision has been recorded In the
accompanying combined financial statements for such contingencies.
53
NOTE 17: VICTORIA COUNTY NAVIGATION DISTRICT - (Continued)
G. Commitments and Contingencies - (Continued)
Construction Commitments
On Novem ber 1 7, 1994, th e District and the West Side Calhoun County Navigation District (collectively
known as the 'local sponsors') entered into a Project Cooperation Agreement with the Departme nt of
the Army for the alteration of the Channel to Victoria Victoria County, Texas authorized by Section
,
3(15) of the Water Resources Development Act of 1 988. The project entails deepening and widening of
the Chan nel to Victoria from 9 feet deep and 1 00 feet wide to 1 2 feet deep and 125 feet wide. Of the
cash contributions required by the local sponsors, West Side Calhoun County Navigation District
contributes 26.5%, while the District con lri butes 73.5%.
As of December 31 . 2005, the District has contributed $3,870,694 directly to the Department of the
Arm y for this project of which $4,173,123 was spent as of year-end. At December 31. 2005, the local
sponsors also have an escrow account of $561 at Wells Fargo Bank Texas, NA, which Is ava ilab le to
be withdrawn by the Department of the Arm y in accordance with the Project Cooperation Agreement Any
unspent funds remai ni ng in escrow when the project is completed, will be paid out to the local spo nsors.
The activity in the escrow account for the year ended December 31 , 2005 Is as follows:
Victoria County West Side

Tra nsaction Navigation District Calhoun County Total
Balance at 1/1/05 $ 83,638 $ 30,155 $ 1 1 3,793

Withdrawals (83,496) (30,1 04) ( 1 1 3,600)
Interest received 270 98 368
Balance at 1 2/31/05 $ 412 $ 149 $ 561
H. Ri§k t::dilCIl!.lIlIll!l1l1
The District is exposed to various risks of loss related to torts. theft of, damage to and destruction of
assets; errors and omissions; i njuries to employees; and natural disasters. The District purchased
commercial insurance to cover risks associated with potential claims during fiscal year 2005. There
were no significant reductions in coverage in the past fiscal year, and there were no settlements
exceed ing insurance coverage for each of the past three fiscal years.
I. Interrund Receivables and Pilvabl!lli
At various times during the year the District's General Fund receives payments for property tax
collections and remits these to the Debt Service Fund. At December 31, 2005 the General Fund owed
the Debt Service Fund a total of $67,278.
NOTE 18: VICTORIA COUNTY CHILD WELFARE BOARD
As described in Note 1 , the Victoria County Child Welfare Board is a component unit of the County. It is
reported in a separate column to emphasize that il is legally separate for accou nti ng purposes from the County.
Following are note disclosures relating to this component unit:
54
NOTE 18: l£IC!ORIA COUNTY CHILD WELFARE BOARD - (Continued)
A. Organization
The Victoria County Child Welfare Board (the Board) was established by the Commissioners' Court of
Victoria County, Texas on August 8, 1 938. The Board is a county-wide, 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 members of the Victoria County Chitd Welfare Board
have decision-making authority, the power to designate management, the responsibility to Sign ifica ntly
influence operations. and primary accountability for fiscal matters. The Board Is considered a component
unit of Victoria County, Texas under the guidelines established by Governmental Accounting Standards
Board (GASB) Statement No. 14.
B. SummarY of Significant Accounting Policies

The accounting and reporting policies of the Board conform to accounting principles generally accepted in
the United States of America (GAAP). as applicable to governmental units. For inclusion in this report. the
Board's operations are reported in a singl e Governmental Fund Type.
C. Deposits and Investments
The Board has deposits that are held by two finanCial Institutions within Victoria County, Texas . At
December 31, 2005 and 2004, th e carrying amount of the Board's deposits was $1 32,634 and $1 47,229,
respectively. The bank balances were $1 32,933 and $147,129, respectively. The deposits are
Collateralized by FDIC coverage as follows:
2005 2004
Insured by FDIC $ 1 32,933 $ 147.129
Amount of Board's depOSits uncollateralized

by financial institutions
Total $ 132 933 $ 147,129
Texas Statutes authorize the Board to invest in:
1. obligatlons 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 Stales ;
4. obligaHons of states, agencies, counties, or cities rated A or better by a national investment rating
firm;
5. certificates of de posit that are ins ured 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. 2005. the Board held $ 1 31 .600 invested In FDIC Insured certificates of deposit. The
Board held no other investments during the current fiscal year.
55
NOTE 18: VICTORIA COUNTY CHILD WELFARE BOARD (Continued) -
D. Federal Title IY-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 , 2005, $9, 1 26 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 participale in the plan. Employees 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, 2005 and 2004, the Board made contributions of $916 and $748, respectively, on behalf of
its employees.
F. Budgetary Legal Compli!\nce
For the fIScal year ended December 31 , 2005, the Board complied with budgetary restrictions except as
follows:
Fund Variance
General Fund
Bank oharges $ 146
Discretionary fund 330
payroll expenses 817
Retirement contributions 66
Cell phone and pager 162
Office supplies 1 02
Travel 1 ,258
Il!OTE 19: 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 Cenler (the "Medical Center") is !l 368-bed facility 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 Victoria
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 Cenler, and to advance its objectives, including sponsorship of,
and assistance to, th e Med i ca l Center.
56
NOTE 19: CITIZI:NS MI:DICAL CENTER (Continued)
-
B. Summary of Significant Accounting Policies
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 Govemmental 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 GASa pronouncements.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Cash Equivalents
The Medical Center considers all liquid investments, with original maturities of three months or less, to
be cash equivalents. At June 30, 2005, cash equiyalents 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;
employee disability; and employee health, dental and accident benems. 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, employee health claims, and workers' compensation. Annual estimated provisions
are accrued for the self-insured portion of general and professional liability, employee health claims and
workers' compensation, and include an estimate of the ultimate costs for both reported claims and
claims incurred but not yet reported.
57
NOTE 19: CITIZENS MEDICAL CENTER - (Continued)
B. Sum m ary of Significant Accounting Policies - (Co ntinued)
Investments in Debt Securities
Investments In debt securities are carried at fair value which is determ ined 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 oarried
at fair value.
Supplies
Supply inventories are stated at the lower of cost. determined using the first-in, first-Qut method, or
market.
Capital Assets
Capital assets are recorded at oost at the date of acqu is ition, or fair value at the date of donation if
acq uired by gift. Depreciation is computed using the straight-line method over the estimated useful life
of each asset. Assets under capital lease obligations a nd leasehold improvements are depreciated
over the shorter of the lease term or their respective estimated useful lives. The following estimated
useful lives are bein g used by the Medical Center:
Land improvements 5 to 25 years

Buildings, building improvements and fixed equipment 3 to 60 years
Major movable equipment 3 to 25 years
Net Assets
Net assets of the Medical Center are classified In three oomponents. Net assets Invested In caplt.:. 1
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 fina nce th e purchas e or construction of
those assets. Restricted expendable net assets are noncapltal assets that must be used for a particular
purpose. as specified by cred itors , grantors, or donors external to the Medical Center, including
amounts depoSited with trustees as required by revenu e bond indentures, reduced by t he outstanding
balances of a ny related borrowings. unrestricted net assets are remaining net assets less remaining
liabilities that do not meet the defin itio n of invested in capital assets, net of related debt, or restricted
expe ndable .
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 re ported 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 accou nts .
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 Cpsts
Deferred financ ing costs represent oosts incurred in connection with the Issuance of long-term debt.
Such costs are being amortized over the term of the bond Iss ues using the straight-line method. The
unamortized amount of defe rred financing costs is included In other assets on the balance sheet.
58
B. Summary of Significant Accgunting 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 amou nts 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 Internal 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 in sured professional liability
-
losses and related costs. An annual estimated provision is accrued for the self-insured portion of
professional liability claims and inclu de s 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 accu mu late vacation benefits that may be realized as
paid time off or. in lim�ed 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 Med ica re taxes computed using rates in
effect at that date.
Patient Accounts ReceIVab le
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 coUection information and existing
economic conditions. As a service to the patient, the Medical Center bills third-party payers directly and
bills the patient when the patient's liability is determined. Patient accounts receivable are due in full
when billed. Accounts are considered delinquent and subsequently written off as bad debts based on
individual credit evaluation and specific circumstances of the account.
Reclas sificationl:!
Certain reclassifications have been made to the 2004 financial statements to conform to the 2006
financial statement presentation. The reclassifications had no effect on the results of operations.
59
NOTE 19: CITIZENS MEDICAL CENTER (Continued)
-
C. Net Patient Service Revenue
The Medical Center has agreements with third-party payers that provide for payments to th e Medical
Center at amounts different from its establis hed rates. These payment arrangements Include:
Medicare
Inpatient acute care, skilled nursing, and substantially all outpatient services rendered to Medicare
program beneficiaries are paid at prospectively determined rates. These rates vary according to a
patient classification system that Is based on clinical, diagnostiC. acuity and other factors. The Medical
Center is reimbursed for certain services at tentative rates with final 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, 2003.
Medjr;:aid
Inpatient 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 submission of annual cost reports by the Medical Center and audits thereof by the
Medicaid fiscal intermediary.
Approximately 47% of net patient service revenues are from participation in the Medicare and state
sponsored Medicaid programs for the year ended Ju ne 30, 2005. 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 agreem ents inclUdes prospectively determined rates per
discharge, discounts from established charges and prospectively determined daily rates.
In 2005, net patient service revenu e inclu des approxi mately $5.21 6.000 of fu nds received through the
Medicaid Upper Payment Limit program .
D. 8cCQunts 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, 2005,
consisted of these amounts:
Patients and their Insurance carriers $ 31 ,366,577

Medicare 3,1 58,699
Medicaid 61 9.490
35,1 44,766
Less allOWance for uncollectible amounts 22,925.231
$ 1 2.21 9,535
60
NOTE 19; CITIZENS MEDICAL CENTER - (Continued)
E. Capital Assets
Capital asset activity for the year ended June 30, 2005 was as follows:
Balance Balance
June 30. 2004 AddlUons T�n!l!f8!:1 Ols�osals June30, 200�
Land and land Improvements $ 5.531,424 $ 65,427 S $ $ 5,596,851

Buildings, improvements,
and fixed equipment 85,734,188 773,937 469,269 86,977.394
Major moveable equipment 73,362,095 2,965,764 4,744,225 (3,514,544) 77,557,560
Construction in progress �,m,HiH a Q�5,25� 1�,2lMil!!) :i.!lH,�a5
1�7 ��!l!!1 � ll�Q 1Q� (� �14 !l.11) 1 7Q �ll1 �!lll
Less accumulated depreCiation
Land Improvements 1 ,352,985 58,725 1,411 ,710
9ulldlng, lmprov""" onts,
and bed equipment 34,��3,270 2,676,302 37,229,�72
Major moveable
equipment §Q,!l!!,U�Q !,HMQl 12,zll.4,jllQ) �2,QQM�Q
96,552,794 6,876,026 (2,7B4,160) 100,644,662
Capltat assets, net $ 79912 847 $ 5

(4 625) $ (732 3B4) $ 70,936 saa
F. Deposits Investments and Investment Income
Deposits
Custodial oredit 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 demand and time deposits are Insured by the Federal Deposit
Insurance Corpora tion and collateralized by pledged U,S, governm ent securities held by the depository
bank in the nam e of Viotoria County, Texas. The Medical Center's deposit policy for oustodial ored it
ris k requires compliance with the provis ions of state law which requires collateralization of all deposits
with federal depository insurance and other acceptable collateral in specific amounts.
At June 30, 2005, the Medical Center's bank balance was $38,547,860, None of these deposits were
exposed to oustodial oredit risk at June 30, 2005,
I nvestm ents
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, 2005, the Medical Center had the following investments and maturities:
Maturitjes jn Years
Less
Type Fair Value Than 1 1-5 6-10
U,S. agencies obligations $ 25,023,51 B $ $25,023,51 8 $
Money market mutual funds 4,§!§!7,681 4,§!91,681
30,021 , 1 99 4,997,681 25,023,518
Accrued investment income 263,7§8 2§;!,Z§£I
:li 30 284,,967 :li fi 261,449 S $
61
F. Deposits. I nvestments and Inyestment Income - (Continued)
Investm ents - (Continu ed )
• I nterest Rate Risk - As a means of l imit ing its exposure to fair value losses arising from rising
interest rates, the Medical Center's investment policy limits Its Investment portfol io to maturities of
four years or less. The money market mutual funds are presented as an investment with a maturity
of less than one year because they are redeemable in full immediately.
•
Credit Risk - Credit risk Is the risk that the issuer or other counterparty to an investment will not
fulfill its obligations. At June 30, 2005, the Medical Center's investments not d irectly g Uara nteed by
the U.S. government were rated as follows:
Inv estm ent Moody's S&P Fitch
U.S. agencies obl igatio ns Aaa AM AM

Money market mutual funds Aaa AM Not rated
• Concentration of Credit Risk - The Medical Center places no l i m it on the amount that may be
invested in U.S. agencies obligations. At June 30, 2005, Individual Investments that exceeded 5%
of the total fair value of all investments are shown below.
2005
Percent
Fair Value of Total
Federal Home Loan Mortgage Corporation, July 6, 2006 !II 1 ,999,000 6.60
Federal Home Loan Bank, August 18, 2006 3,998,125 1 3.20
Federal Home Loan Mortgage Corporation, August 27, 2007 1 ,633,991 5.40
Federal Nation al Mortgage Association, September 28, 2007 3.498,906 1 1 .55
Federal National Mortgage ASSOCiation, October 29, 2007 2,030,492 6.70
Federal Home Loan Bank, Oecember 28, 2007 2, 1 48,925 7.10
Federal National Mortgage Association, January 1 5, 2009 2,036,871 6.73
Ii H 346 :llQ 5Z 26
Summary of Carrying Val ues
The carrying values of deposits and investments at June 30, 2005 are as follows:
Carrying value
Deposits $ 38,681 ,547
Investments 30,284,967
S 68,966,514
Included in the following balance sheet captions

Cash and cash equivalents $ 38,681 ,547
Restricted cash and cash equivalents - current 2,316,907
Restricted cash Bnd CBsh equivalents - noncurrent 4,776,275
Other long-term investments 23,191,785
:Ii 68 966 514
62
NOTE 19; CITIZENS MEDICAL CENTER · (Continued)
F. DepOsits, Investments and Investment Incom e · (Continued)
Investment Income
Investment income of $1 ,628,286 for the year ended June 30, 2005 consists pri mari ly of dividends and
interest income.
G, Long-term Obligations
The fol lowi ng is a summary of long-term obl i ga tion transactions for the Medical Center for the year
ended June 30, 2005:
Balance B�I�nce
June 30, Jun. 30, Current
2Q04 ��i�gn§ Qmhl¥tiS2I.V.i �QQ� E>illi20
Long-term debt
Sorios 1994 Bonds (A) $ 23,905,000 $ $(3,050,000) $ 20,855,000 $ 1,330,000
Selies 1999 Bonds (B) lM�!,j,QQQ (��5,Q)QQ 1�,440,OOO 930,000
Total long-t.rrn debt 4�,23Q,QQQ [J S;}:2 QDg) ;}lil �a§ ggg 2 2!l!l QQQ
Other long-terrn liabilities
Self..insured
prof....lon.1 liability 21Q,QQQ 21Q,QQQ
Total long-terrn liabilities � 43 440 000 $(3 9�5 000) � �9 505,Ogg II 3 g§g OOg
(A) Due January 1 , 2016; princi pal 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, 2019; principal and interest payable semiannually at interest rates varying
between 4,30% and 6.25%: secured by the Medical Center's net reve nues and trustee held
assets,
Under the terms of the Revenue Bond Indentures, the Med ical 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 Indentures also place limits on the
incurrence of additional borrowings and require that the Medical Center satisfy certain measures of
financial performanoe as long as the bonds are outsta ndi ng .
The debt service requirements as of June 30, 2005, are as follows:
Y!illl[� i;[lr.1i!lg �!.!n!il �Q, TQ!:il1 Princi(;!al Interest
2006 $ 4,498, 529 $ 2,260,000 $ 2,238,529

2007 4,61 7,939 2,51 0, 000 2,1 07,939
2008 4, 5 1 2, 60 1 2,545,000 1 ,967,601
2009 4,651,036 2,835,000 1 ,81 6,036
2010 4,639,598 2,990,000 1 ,649,596
201 1 .201 5 22,412,224 16,975,000 5,437,224
201 6·2020 1 Q,&Q:1,I.i§� fil,1 80,000 1,024,563
$ gQIr.1��I!1:�Q I 3£1 2Sg ggg $ 16 241 490
During 2005, the Medical Center paid $1 ,645,000 of the 1 994 bonds prior to their scheduled maturity at a
price of 102% of the par amount of the bonds,
63
H. Derivative Instrume nts

Objective of the Derivative Instruments
The Medical Center's asseVliability 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 100 percent of the Series 1 994
reven ue bonds to a variable interest rate obligation. The fixed pay swap agreement effectively
converted $1 0,000,000, or appro)(imately 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.
Terms
The agreements were entered into on September 30, 2004, and expire at various dates through
January 1 , 2016. 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 t he
counlerparty at 67 percent of the London I nterban k Offering Rate ( UBOR) and will pay interest to the
counterparty at a fixed rate of 3.05 percent on an amortizing notional amount of $10,000,000.
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 of the
cou nterparty of $41 7,1 00 on January 2, 2006, and $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 1994 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 principa l on the Series 1 994 bonds. The fixed pa y 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.
Fajryalue
As of June 30, 2005, the agreements had an aggregate fair value of ($497,000) as calculated by a
third-party financial advisor. For the fixed pay swap agreement, the fair value was calculated using the
par-value method, i.e., the fixed rate on the swap was compared with the current fix rates that could be
achieved in the marketplace should the swap be unwound. The fixed-rate component was valued by
d iscou nting 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 market value
of the fixed component from the established market value of the variable com ponent .
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, 2005, compared to the fair m arket value of the
Series 1 994 bonds based on current traded value. The fa ir value of the total return swap agreements
Include the 2 percent and 1 percent premium payments due on January 1 , 2006, and January 1 , 2007.
The premium payments due January 1 , 2006 and 2007. which total $625,650. are reco rd ed as a liability
on the Medical Center's balance sheet. The remaining fair value of the agreement Is not recognized In
the financial statements.
64
NOTE 19: CITIZENS MEDICAL CENTER · (Continued)
H. Derivative Instruments · (Continued)
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 retu rn swaps increase.
Credit Rlsls
The swaps' fair values represent the Medical Center's credit exposure to the counterparty as of
June 3D, 2005. 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 3D, 2005, 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 3D, 2005.
Basis Risk
The swaps expose the Medical Center to bas is risk should the relationship betwee n UBOR a nd BMA
rats bonds change in a manner adverse to the Medical Center. If an adverse change occurs In the
relationsh ip 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 term inate any or all of the total return swaps with advance written notice.
Rolloyer 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 1994 reven ue 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 retes on the
interest rate swap through January 2016.
65
H. Derivative Instruments - (Continued)
Swap eeymenls and Associated Debt
Using rates as of June 30, 2005, 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
Principal Interest Swap, Net Total
2006 $ 1 ,330,000 $ 1 ,250,949 $ (684,266) $ 1 ,896,683

2007 1 ,535,000 1,164,999 (613,391) 2,086,608
2008 1 ,525,000 1 ,072,436 (542,004) 2 ,055, 432
2009 1 , 765, 000 971,671 (463,229) 2,273,642
2010 1 ,665,000 860,003 (432 , 580) 2 , 292,423
20 1 1 -20 1 5 1 0,365,000 2.470.469 (4 1 0,560) 1 2,424,909
2016-2020 2.470,000 77,1 88 46,166 2.593,354
$ 20,855,090 ill 7 887 Q1S ill (3 099.864) $ 25, 623 95 1
I. Self-Insured Claiooll
The M edica l Center partially self-insures the cost for its general and professional liability, employee
health care benefits, and workers' compensation. The Texas Tort Claims Act limits the Medical Center's
general and professional liability to $1 00,000 per claim and $300,000 per occurre nce, with no annual
aggregate. The Medical Center purchases annual stop-loss Insurance coverage for all employee hea lth
care benefrts and workers' compensation claims. Stop-loss coverage began at $300,000 for workers
compensation claims in 200 5. Stop-loss coverage for employee health claims began at $425 , 000
during 2005.
Losses from asserted and unasserted claims identified under the Medical Center's incident reporting
system are accrued based on estimates that i ncorporate the Med ical Center's past experience. as well
as other oonsiderations, inclu d ing 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 l iabil ities 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.
66
NOTE 19; CITIZENS MEDICAL CENTER . (Continued)
I. Self-insured Claims · (Continued)
Activ ity in the Medical Center's self-Insured claims liability accounts during 2005 and 2004 are
summarized as follows:
2005
Employee General and
Health Care Workers' Professional
Benefits Com£!ensation Liabilil:i
B alance , begin ning of year $ 1 ,029,106 $ 766,770 $ 21 0,000
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) 1410,838)
Balance, end of year Ii jil.242. 1QIl $ 685 628 $ 210.000
2004
Employe e General and
Health Care Workers ' Professional
Benefits Com£!ensation Liabilit�
Ba lance, beginning of year $ 700,000 $ 329,030 $ 21 0,000
Current year claims incurred
and changes In estimates for
claims incurred in prior years 7,749,437 828,645
Claim and expenses paid, net 17.420,331 ) 1390,905)
Balance, end of year $ 1.029.106 $ 766.ZZQ � 2 1 0 000
J. Charity Care
In support of its mission, the Medical Center volu ntar i ly 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 i ndige nt patients under
certain government-reimbursed public aid programs. Such progra ms pay providers amounts which are
less than established charges for the services provided to the recipients and many times the payments
are less than the cost of rendering the services provided.
In addition to uncompensated charges, the Medical Center also commits sig nificant time and resources
to endeavors and critical services wh ich meet otherwise unfilled community needs. Many of these
activities are sponsored with the knowledge that they will not be se lf-su pporti ng or fina ncia lly viable.
Such programs i nclu de health screening and assessments, pre nata l education and care, community
educational services and various support groups.
K. Re la ted Party Transactions
The Cou nty maintains custOdy of the Medical Center's operating cash acoounts and is responsible for
obtaining appropriate collateralization of suoh accounts. The County issues deb t 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.
67
NOTE 19: CITIZENS MEDICAL CENTER · (Continued)
L. Pension Plan
Defined Benefit Plan
The Medical Center sponsors a defined benefit pension plan for eligible employees within a cost
shari ng multiple-employer retirement program sponsored for member hospitals by the Texas Hospital
Association (THA). Health SharefTHA Is the administrator of the plan. The plan provides retirement.
disability, and death benefits to plan mem bers and their beneficiaries. The Medical Center's Board of
Directors have the sole authority to establish and amend benefit provisions of the plan. There is no
publicly available financial report for the plan.
Funding Policy
The authority to establish and amend the contribution requirements of plan members and the Medical
Center is vested in the Medical Center's Board of Directors. Most plan members are required to
contribute 3% of their annual covered salary. The Medical Center Is requ ired 10 contribute at an
actuarially determ i ned rate .
Annual Pension Cost and Net Pension Obligation (Assell
The Medical Center's annual pension cost and net pension obligallon (asset) to the plan for 2006 and
2004 were as follows:
2005 20Q4
Annual req ui red co ntributio n $ 1 ,294,667 $ 1 ,21 8,000
Interest on net pension obligation (29 ,990) 6,014
Adjustmenl to annual required contriblJtlon 45,927 (9.107\
Annual pension cost 1 ,31 0,604 1 ,21 4,907
Contributions made (1.1 57.100) (1 .668.900)
Decrease in net pension obligation (asset) 1 53,504 (453,993)
Net pension obl igat ion (asset)
at beginning of year (378.81 9) 75. 1 74
Net penSion obligation (asset) at end of year $ (225,315) $_�..

" 8...
7...
(3", r 8u.
1",,,
9)
The net pension asset is included in other assets on the 2005 balance sheet.
The annual required contributions for 2005 and 2004 were determined as part of an actuarial valuation
on MarCh 1 , 2005 and 2004, respectively, using the aggregate actuarial cost method. The actuarial
assumptions Included Investment rate of return of 8% (net of administrative ex penses), and prOjected
salary increases of 6.6% begin n i ng at age 20, decre asi ng thereafter to 5-0% at age 65 and averaging
5.70/0. The actuarial assumptions included an inflation component of 4.0%. The actuarial value of assets
was determined using techniques that smooth the effects of short-term volatility in the market value of
investments over a five"year period. There was no separately determined unfunded actuarial accrued
liability and no amortization period at the February 28, 2005 and February 29, 2004, valuation due to
the actuarial cost method being used .
Trend Infonnation
Annual Pension Percentage of APC Net Pension

Year Ended Cost (APC) Contributed Obligation (Asset)
2005 $ 1 ,31 0,604 88% $ (225,315)
2004 1 ,1 24,907 1 37% (378,819
2003 730,646 54% 75,174
68
NOTE 19: CITIZENS MEDICAL CENTER . (Continued)
M. Designated Net Assets
At June 30, 2005 and 2004, unrestricted net assets have been d esignated by the Medical Center's
Board of Directors for the following purposes:
2005 2004
Capital acquisitions $ 22,650,492 $ 20.314.745
Self-insured professional liability 826,702 801 ,322
Self-insured health care 300,362 86,829
Designated net assets remain under the control of the Board of Directors. which may at its discretion
later use these net assets for other purposes.
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
ex am ple. 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 ne!lr term.
69
Required Supplementary Information
MAJOR GOVeRNMENTAL FUND - GeNERAL FUND
SCHEDULE OF REVENUES, EXpeNDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Actual Budget
Amounts to GMP Actual
Original Final B udgetary Differences Amounts
Budget Budget Basis Over (Under) GMP Bas is
REVENUES
Taxes $ 16,407,506 $ 1 6,942,506 $ 1 7,770,872 $ (1 22,200) $ 1 7,893,072
Fees of office and user fees 1 ,51 1 ,000 1 ,51 1 ,000 1 ,697,269 6,958 1 ,690,31 1
Intergovernmental 4,641 ,600 4,737,470 4,333 ,915 (9,098) 4,343,013
Fines and forfeitures 1 ,095,500 1 ,095,500 1 ,337,420 (16,199) 1 ,353,619
Investment income
In terest 1 50,000 1 50,000 409,202 409,202
Licenses and permits 34,950 34,950 34,034 510 33,524
Contributions 400 6,790 6,424 6,424
Miscellaneous 579,567 674,567 756,624 (10,255) 766,879
Total revenues 24,420,523 25,152,783 26,345,760 (1 50,284) 26,496,044
EXPENDITURES
Current
General government 1 2,1 76,690 1 2,533,298 1 2,060,545 36, 1 79 1 2,024,366
PubliC safety 9,1 48,212 9,550,922 9,21 2,078 (1 0,027) 9,222, 105
Culture and recreation 1 ,246,351 1 ,252,210 1 ,236,746 2,422 1 ,234,324
Public health 58,186 58,186 57,338 (1,420) 58,756
Total expenditures 22,629,439 23,394,616 22, 566,705 27, 1 54 22,539,551
Excess (deficiency) of revenues over
expenditures 1,791,084 1 ,758,167 3,779,055 (1 77,438) 3,956,493

Sale of assets 1 0,000 1 1 0,000 293,939 293,939
Transfers In 265,000 307,274 307,273 307,273
Tranafers out (2,086,084) (2, 1 89,21 1 ) (2,004,855) (2,004,855)
Total other financing sources (uses) (1,791,084) (1,771 ,937) (1,403,643) (1,403,643)
Change in fund balance (1 3,770) 2,375,412 (1 77,438) 2,552,650

Fund balanoe, January 1 4,596,751 4,596,751 4,596,751 p,376,7(2) 5,973,503
Fund balance, December 31 $ 4,5961751 $ 4,582,981 $ 619721163 $ 11 ,554,190) $ 6,526,353
explanation of differences :
The County budgets on the cash basis of aocounting. Therefore, under the budgetary
baSiS, revenues are recognized as collected and expenditures when paid.
The accompanying notes are an integral part of this schedule.
70
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
De cember 31, 2005
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: BUDG ETARY LEGAL COMPLIANCE
For the year ended December 31, 2005, the County complied with budgetary restrictions at all Hne-item levels
except the following. The following table details this variance:
Department/Fund Amount
General Fund
Operating expenditures $ 3,987
Salaries 3
71
Combining and Individual Fund Statements and
Schedules
ALL NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
December 31, 2005
Total Total Total Tota l

NonmaJor Nonmajor Nonmajor Nonmajor
Special Debt Cap ital Governmental
Revenue Funds Service Fu nds Project Fund
ASSETS
Current assets
Cash and cash equivalents $ 2,812,730 $ 71 5,984 $ 4,574 $ 3,533,288
Investments 449,974 300, 186 750 , 1 60
Receivables (net) 1 ,386,893 1 , 028,839 2,41 5,732
Due from other governments 1 ,060,724 1 ,060,724
Due from other funds 268
Total assets $ 5,710,589 $ 1 ,744,823 $ 304,760 $ 7,760,1 72
LIABILITIES AND FUND BALANCES

Liabilities
Accounts payable $ 624,352 $ 663 $ $ 625,01 5
Accrued expenditures 1 04 ,753 104,753
Due to other funds 528,756 526,756
Oeferred revenue 1 ,992,290 1,491,388 3,483,678
Total liabilities 3,250,1 51 1 ,492,05 1 4,742,202
Fund balances
Reserved for:
Debt service funds 252, 772 252,772
Unreserved, undesignated reported In:
Special revenue funds 2,460,438 2,460.438
Capital project fund 304,760 304,760
Total fund balances 2,460,438 252,772 304,760 3,01 7,970
Tolai llabilities and fund balances $ 5,71 0,589 ill 1 ,744,823 ill 304,760 $ 7,760,1 72
72
ALL NONMAJOR GOVERNMENTAL FUNDS
COMBINING STA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the year ended Decsmber 31, 2005
Total Total Total Total

Nonmajor No nm ajor Nonmajor Non major
Special Debt Capital Governmental
Revenue Funds Service Funds Project Fund Funds
REVENUES
Taxes $ 1 ,673, 1 63 $ 1,665,943 $ $ 3, 339, 106
Fees of office and user fees 781 ,976 781,976
Intergovernmental 5,487,261 5,487,261
Fines and forfeitures 1 1 0,007 1 1 0,007
Investment income 1 42,806 16,735 16,999 1 76,540
Contributions 9,661 9,661
Miscellaneous 94,039 7,014 101.053
Total revenues 8,298,913 1 ,682,678 24,013 10,005,604
EXPENDITURES
Current
General government 2,253,765 2,253,765
Public safety 61 ,268 61,268
Highways and streets 3,64 1 , 527 696,239 4,337,766
Culture and recreation 6,734 6,734
Public health 3,653,967 3,653,967
Debt service
Principal retirement 1 , 225,000 1 , 225,000
Interest and fiscal oharges 41 7,093 41 7,093
Total expenditures 1 0,260,613 1 ,642,093 696,239 1 2,598,945

over expenditures (1 ,961 ,700) 40,585 (672,226) (2,593,341 )
Sale of assets 10,036 10,036
Transfers in 1 ,466,091 298,000 1 , 784,091
Transfers out !32O,509) (320,509)
Total other financin g sources (uses) 1 , 1 75,618 298,000 1,473,618
Change in fu nd balances (786,Q82) 40,585 (374,226) (1 ,1 1 9,723)
Fund balances at beginning of year 3,246,520 212,187 678,986 4,1 37,693
Fund balances at end of year $ 2,460.438 $ 252,772 $ 304,760 $ 3,01 7,970

NONMAJOR SPECIAL REVEI!lUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than
special assess ments , 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 fu n ds .
ROAD AN D BRIDGE FUNDS
The Road and Bridge Funds are constitutional funds established to account for current funds used for
the purpose of construct in g and ma i ntain i ng 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
b ri dges in the prec inct The Road and Bridge Funds consists of the following:
Road and Bridge Precinct F unds Accounts for costs associated with the construction and
•
maintenance of ro ads and bridges in the four Commissioners' precincts. Revenues are derived
pri m arily 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 CommiSSioners' preCincts. However, the
primary source of revenue In these funds is grant monies received by the Cou n ty (and interest
earned thereon) which is deSignated to be spent on roads and bridges.
OTHER SPECIAL REVENUE FUNDS
The Other Special Revenue Funds conSists of various funds that account for particular functions and
activities as described below:
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.
Courthouso Soeurity Fund - Accounts for funds received from various sources designated to be
used to enhance security In 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 .317.
Expenditures of the fund are made to manage and preserve documents filed in the office of the
District Cl erk .
Appellate Judicial System Fund · Accou nts 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, autom obi l e
allowances and fringe benefits for the Justices of the 1 3'h Court of Appeals.
FEMA Hurricane Accounts for the funds received from the Federa l Emergency Management
•
Agenoy and insurance reimbursements. Funds are used to repair hurricane-<lamaged properties.
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.
74
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
OTHER SPECIAL REVENUE FUNDS (Continued)
Juvenile Probation Fund Records m onie s received by the County from the Texas Juvenile
-
Probation Commission as well as operating transfers from the General F u nd of the County.
These monies are spent to provide various services related to the operation of the County
Juvenile Probation Department.
Juvenile Acoountability Incentive Block Grant Fund - Aocounts for funds received from the
U.S. Department of Justice and administered by the Office of Juvenile Justice and Delinquency
Prevention. The purpose of the grant is to provide funds for training and technical assistance to
states and units of local government so they may develop programs outlined in the 1 2 program
areas to promote greater accountability in the juvenile justice system
.
Federal Foster Care Grant Fund · Aocounts for the funds rece ived 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 tra ining costs, and equipment needs as it relates
to juvenile probation activities.
Juvlmill! Delinquency Prevention Fund Accounts for funds received as a cost of court fee for
-
offenses committed under Section 26.06, Penal Code. These funds are administered by or under
the direction of Commissioners' Court and are used to repa ir damage, provide educational and
intervention programs, and provide public rewards.
Justice Technology Fund - Aocounts for funds received from a defendant convicted of a
misdemeanor offense in a Juslice Court. pursuant to Article 102.0173. 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
Commissioners' Court and are to be distributed to non-profit organizations in Victoria County.
Texas DPS Traffic Conviction Reporting Grant Fund Accounts for funds received from the
-
Texas Department of Pu bl iC Safety fOr the purchase of traffic conviction software.
CDA Processing Fee Fund Aocounts 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 includ e 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 Stat e participation and support for victim service programs and promote
victim cooperation with law enforcement, in addition to the direct benefit to crime victims with
Federal assistance monies .
Sheriff Victims Assistance Grant Fund - Accounts for the funds received from the Office of the
Attorney General to provide funding for a full-time Crime Victim Liaison to work in the Sheriff's
Department and the Victoria Pollee Department.
Sheriff Victims Discretionary Assistance Grant 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.
75
OTHER SPECIAL REVENUE FUNDS (Continued)
Texas Vine Grant - 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.
Byrne Justice Assistance Grant Fund - Accounts for funds received from the City of Victoria for
the purchase of equipment for the Viotoria 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 Justioe 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 improving public safety.
GCRPC Solid Waste Grant Fund - Accounts for funds reoeived from the Texas Commission on
Environmental Quality administered by Golden Crescent Regional Planning Commission. The
purpose of the grant is to provide funds for an Environmental Officer position to reduoe illegal
dumping in Victoria County.
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 inoidents involving chem ical . biological, nuclear, radiological,
incendiary, and explosive devices.
State Homeland Security Law Enforcement Terrorism Prevention Program (LETPP) Grant
Fund - Accounts for funds received from the Department of Homeland Security. The purpose of
this grant is to provide law enforcem ent communities with funds to support the following
prevention activities: Information sharing to preempt terrorist attacks; target hardening to reduce
vulnerability of selected high value targets; recognition and mapping of potential or developing
threats; interoperable communications; and, interdiction of terrorists before they can execute a
threat or intervention activ ities that prevent terrorists from executing a threat.
Disaster Relief Grant Fund - Accounts for funds received from the Office of Rural Com m unity
Affairs. The purpose of this grant is to provide disaster relief for the repair of County roads
damaged by the November 2004 flood.
Hurricane Relief Fund - Accounts for funds reoeived in the relief efforts of Hurricanes Rita and
Katrina.
Sh eriff's Speci al 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. Depa rtment 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 a ctivities and to weaken crim inal enterprises by
removing the instrumentalities of crime.
76
OT HE R SPECIAL REVENUE FUN DS (Continued)
COA Department of Trea5ury 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.
NOAA Coastal Impact Fund Acco u nts for funds received from the U.s. Department of
Commerce passed through the National Oceanic and Atmospheric Administration for the
reconstruction of Fort SI. Louis and creation of related exhibits at the Museu m of the Coastal
Bend.
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 resu lt of attending professional elections training such
as seminars and conferences.
Tax Asse$SQr-Coliector 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 th e purpose of preparing the historical heritage of the
County of Vicloria.
Law Library Fund - Aocounts for expenditures related to the establishment and maintenance of
a p rofess ional 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 - Reports the activity and balances of the General Fund of the
City/Cou nty Health Department.
WIC Program Fu nd - Reports the activity and balanceS of the Special Revenue Fund of the
City/County Health Department.
Law Enforcement OffIcer Education Fund Acco u n ts for funds received from the State of
•
Texas. These funds are used for continuing education of persons licensed under Government
Code Chapter 415 or to provide necessary training to full-time law enfOrcement support
personnel.
77
NONMAJOR GOVERNMENTAL FUNDS · SPECIAL REVENUE FUNDS
December 31, 2005
Other
Road and Special
Bridge Revenue Total
ASSETS
Cash and cash equivalents $ 1 , 583,475 $ 1 ,229,255 $ 2,81 2,730
Investments 449,974 449,974
Receivables (net)
Ad valorem 1 ,368,838 1,368,838
Other 1 7, 1 92 863 1 8,055
Due from other governments 1 ,060,724 1 ,060,724
Due from other funds 268 268
Tolal assets $ 3,41 9.479 $ 2,291 , 1 1 0 $ 5,710,589
LIABILITIES AND FUND BALANCE

liabilities
Accounts payable $ 36,269 $ 588,083 $ 624,352
Accrued expend�ures 36,649 68,104 1 04,753
Due to other funds 1 6,969 51 1 ,787 528,756
Deferred revenue 1 .971 , 1 04 21,186 1 ,992,290
Total liabilities 2,060,991 1 , 1 89,160 3,250,151
Fund balance
Unreserved, undesi9naled 1,358,488 1,1 01,950 2.460,438
Total liabilities and fund balance $ 3,4191479 $ 2,291 11 1 0 $ 5?1 01589
78
COMBINING STATEMENT OF REVENUES, EXPENDITURIES. AND CHANGES IN FuND BALANCE
For the year ended December 31. 2005
Other
Road and Special
Bridge Revenue Total
REVENUES
Taxes :Ii 1 .673. 1 63 :Ii $ 1 .673.163
Fees of office and user fe es 781,976 781 ,976
Intergovernmental 1 .750,489 3.736.772 5,487,261
Fines and forfeitures 1 1 0,007 1 1 0.007
Investment income
Interest 84.604 58,202 1 42,806
Co ntr ibutions 9,661 9,661
Miscellaneous 52,249 41 .190 94,039
Total revenues 3,560,505 4.738,408 8.298.9 1 3
EXPENDITURES
Current
General government 2,253,765 2.253,765
Public safety 61 ,268 61 ,268
Highways and streets 3,473,565 167,962 3.641 .527
Culture and recreation 6,734 6,734
Public health 3.653.967 3,653,967
Capital outlay 643.352 643.352
Total expenditures 3,473,565 6,767,048 1 0.260.6 1 3

over expenditures 86.940 (2.048.640) (1.961 ,700)

Sale of as;;>ets 1 0.036 1 0,036
Transfers in 1 .486.091 1 ,486,091
Transfers out (200,OOO) (1 20,509) (320.509)
Total other financing sources (uses) (1 89.964) 1,365.582 1,1 75,61 8
Change in fund bal ance (1 03,024) (663,058) (786M2)

Fund balance. January 1 1 ,461 .51 2 1 ,785,008 3,246,520
Fund balance. December 31 $ 1 ,358,468 $ 1 .101 ,950 $ 2,460,438
79
NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS
ROAD AND BRIDGE FUNDS
December 31, 2005
Road and Bridge Funds

Pet. 1 Pet. 2 Pet. 3 Pet. 4
ASSETS
Cash and cash equivalents $ 348,358 $ 324 , 130 $ 459. 1 25 $ 351 ,319
I nvestments 99,975 49,987 200.037 99,975
Receivables (net)
Ad valorem 376,896 307.887 307,640 376,41 5
Other 4,433 4,0 1 1 4,315 4,433
Total assets $ 629.662 $ 686.015 $ 971,1 1 7 $ 832,142

Liabilities
Accounts payable $ 9,133 $ 14.389 $ 5,370 $ 7.377
Accrued expenditures 9,908 8.318 9,350 9.073
Due 10 other funds 4,632 3.689 4,453 4, 1 95
Revenue 542.519 443,397 443 1 50
, 542,038
Tolal liabilities 566,192 469,793 462.323 562,683
Fund balance
Unreserved, undesignaled 263.470 216,222 508,794 269,459
Total liabilities and fund balance $ 829,662 $ 696,015 $ 971,1 1 7 $ 832,142
80
Lateral Road Funds
Pet. 3 Pet. 4 Total
$ 45, 1 1 6 $ 9 365
, $ 37, 1 06 $ 8,954 $ 1 ,583,475
449,974
1 ,366,838
1 7,192
$ 45,1 1 8 $ 9,365 $ 37,106 $ 8,954 $ 3,419,479
$ $ $ $ $ 36,269
36,649
1 6,969
1,971 , 1 04
2,060,991
45, 1 1 8 9,365 37,106 8,954 1 , 35 6,48 8
$ 45, 1 1 8 $ 9,365 $ 37,106 $ 8,954 $ 3,41 9,479
81
ROAD AND BRIDGE FUNDS
COMBINING STA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
For the year ended Decembf'lr 31, 2005
Road and Bridge Funds

Pct. 1 Pet. 2 Pet. 3 Pet. 4
REVENUES
Taxes $ 460 , 1 61 $ 376,466 $ 376,467 $ 460.079
Intergovernmental 438,300 4 1 9, 3 1 1 4 1 9. 3 1 1 438 ,300
Investment income
Interest 1 8,065 1 7 . 1 30 28.987 1 7, 673
Miscellaneous 26 .8 38 150 16,249 9,01 2
Total revenues 943,364 8 1 3, 047 841 . 01 4 925,064
EXPENDITURES
Current
Highways and streets 868,666 91 9. 662 9 1 5. 2 1 0

over e)(penditures 74,698 48,320 (78.648) 9.864

Sale of assets 327 533 327 8,84 9
Transfers out 150,000) (50,000) 150.000) 150,000)
Total other financing sources (uses) (49,673) 149,46 7) (49.673) (41,15 1 )
Change in fund balance 25,025 ( 1 , 1 4 7) (1 28,321 ) (31 ,297)
Fund balance. January 1 238.446 2 1 7. 369 637. 1 1 5 300.756
Fund balance, December 31 $ 263,470 $ 21 6,222 $ 508,794 $ 269,459
82
Lateral Road Funds
Pet. 1 Pet. 2 Pet. 3 Pet. 4 Total
$ $ $ $ $ 1 .673.163
8 . 81 7 8.8 1 7 8.8 17 8,816 1 ,750,489
1 . 391 98 1 , 1 01 1 59 84.604
52,249
1 0,208 8.915 9.918 8,975 3,560,505
5,300 3.473,565
1 0,208 8.915 9.918 3,675 86,940
1 0.036
(200,000)
(189.964)
1 0.208 8.9 1 5 9,918 3,675 ( 1 03,024)

34,91 0 450 27.188 5.279 1 .461 , 51 2
$ 45 . 1 1 8 $ 9,365 $ 37, 1 06 $ 8,954 $ 1 ,358,488
83
December 31, 2005
District
Clerk Appellate FEMA
Records Courthouse Records J ud icial FEMA Unmet
Mgml Security Mgmt S�stem Hurricane Needs
ASSETS
Cash and cash equivalents $ 219,092 $ 20,840 $ 1 , 300 $ 4,723 $ -
$
Receivables (net)
Other 300 1 76 15 12
Due from other governments 8,057
Due from other funds
Total assets $ 219,392 $ 21 ,01 6 $ 1 ,315 $ 4,735 $ $ 8.057
LIABILITIES AND FUND

BALANCE
Liabilities
Accounts payable $ 785 $ $ -
$ 4.723 $ -
$
Accrued expenditures 1 ,036
Due to other funds 19
Deferred revenue
Total liabilities 1 ,840 4.723
Fund balance
Unreserved, undesignated 21 7.552 21 ,016 1 ,315
Total liabilities and fund

balance $ 21 9,392 $ 21 .01 6 $ 1,315 $ 4,735 $ -
$ 8,057
84
Juvenile
Accountability Federal Juvenile Family Texas CDA
Juvenile Incentive Foster Care Delinquency Justice Protection DPS Processing
Probation Grant Grant Prevention Technology
$ 63,867 $ - $ 447, 567 $ 86 $ 20,530 $ 8,235 $ $ 1 1 6,647
88 30
6,624 52,885 5,000 2,795
$ 70,:ll!l $ - $ 5001452 $ 86 $ 201618 $ 8,265 $ 5,000 $ 1 1 9,442
$ 4,062 $ - $ 2,184 $ $ - $ $ B,681

$
1 0,325 5,230 3,054
1 53 84 5.000 320
1 4,540 7,498 5,000 1 0,055
55,951 492,954 20,61 8 8 , 265 1 09,387
$ 70,491 $ - $ 500,452 $ 86 $ 201618 $ 8,265 $ 5,000 $ 1 1 9,442
(continued)
85
OTHeR speCIAL ReveNue FUNDS
Deoember 31, 2005
Sheriff
CDA Sheriff Victims
Victims Victi ms Discretionary Texas 4·H Byrne
Assistance Assistance ASSistance Vine Activity JAG
Grant Grant Grant Grant Center P!]Sram
ASSETS
Cash and cash equivalents $ . $ . $ . $ . $ 41 ,537 $ 21 ,186
Receivables (net)
Other
Due from other governments 1 8,801 1 5,293 9,967
Due from other funds 268
Total assets $ 1 9,069 $ 1 5,293 $ 9,967 $ - $ 41 ,537 $ 21 ,186
LIABILITieS AND FUND

BALANCE
liabilities
Accounts payable $ 41 $ 31 $ 43 $ . $ 1 95 $
Accrued expenditures 941 826 785
Due to other funds 1 6,067 9,976 9,137
Deferred revenue 21 , 1 66
Total liabilities 1 9,069 1 0,835 9,965 1 95 21,186
Fund balance
Unreserved, undesignated 4,458 2 41 ,342

91967 - $ 41,537 $
balance $ 1 91°69 $ 1 51293 $ � 21,186
86
Local Law
Enforcement GCRPC State Homeland Sheriff's CDA
Block Solid Waste Homeland Security Disaster Hurricane Special Contraband
Grant Grant Security LETPP Relief Relief Purpose Forfeiture
$ 10,018 $ -
$ $ .
$ $ ·
$ 40,035 $ 37,279
347 1 4,998
$ 1 0,01 8 $ $ 347 $ 14,998 $ .

$ ·
$ 40,035 $ 37,279
$ $ $ .
$ $ -
$ $ 201 $ 2,196
347 14,998 1
347 1 4,998 201 2,197
1 0,01 8 39,834 35,082
m 1 0,01J! $ -
$ 347 $ 1 4,998 $ .
$ ·
$ 40,035 $ 37,279
(continued)
87
December 31, 2005
CDA Help
CDA Dept. of Treas. NOAA Employee Election America
Homeland Federal Coastal Benefit Admin Vote Act
Forfeiture Forfeiture Imj:!act Fund S(,!ecial Grant
ASSETS
Cash and cash equivalents $ 1 6.863 $ 1 2,958 $ -
$ 5.789 $ 1 0 ,666 $
Receivables (net)
Other 1 07
Due from other governments 504 .644
Due from other funds
Total assets $ 16,663 $ 1 2, 958 $ $ 5, 696 $ 1 0,688 $ 504,644
LIABILITIES AND FUND

BALANCE
Liabilities
Accounts payable $ 309 $ 1 ,1 31 $ .
$ 260 $ .
$ 503,851
Accrued expenditures
Due to other funds 2 993
Deferred revenue
Total liabilities 309 260 504,844
Fund balance
Unreserved, undeslgnated 1 6,554 1 1 ,827 5,636 1 0,686

balance $ 1 6,863 $ 1 2,958 $ . $ 5,896 $ 1 0,688 $ 504, 844
88
Tax
Assessor-
Collector Historical Law Health WIC
Special Commission Library Department Program LEOSE Total
$ 58 , 692 $ 1 2,210 $ 45,284 $ 350 $ $ 13.479 $ 1 ,229,255
1 35 663
1 82,163 238,950 1 ,060,724
268
$ 581692 $ 12,210 $ 45,419 $ 182,513 $ 238,950 $ 1 3,479 $ 2,291 , 1 1 0
$ -
$ $ 1 2, 476 $ 45,266 $ 2,474 $ 1 , 1 74 $ 588,083
35,046 10,861 68,104
231,001 221 .667 51 1 ,787
21,186
1 2,476 31 1 , 31 3 235,002 1 , 1 74 1 , 1 89,160
58,692 1 2,210 32,943 (128 .800) 3,948 1 2,305 1,101 ,950
$ 58,69� $ 1 2,210 $ 45,4 19 $ 1 82,513 $ 238,950 $ 13,479 $ 2,291 , 1 1 0
89
OTHER SP£CIAL REVENUE FUNDS
COMBINING STA TEMENT OF REV£NUES, EXPENDITURES, AND CHANGES IN FUND BALANC£
For thril year ended Decemwr 31, 2005
District
Clrilrk Appellate FEMA
Records Courthouse Records Judicial FEMA Unmet
Milmt Securit� Mgmt S�stem Hurricane Needs
REVENUES
Fees of office and user fees $ 95, 1 1 1 $ 58,526 $ 5,060 $ 4,720 $ $
Intergovernmental 22,877
Fines and forfeitures
Investment income
Interest 8,836 946 59
Contributions
Miscellaneous 189
Total revenues 1 03,947 59,472 5, 1 1 9 4, 720 23,066
EXPENDITURES
Current
General government 1 35,225 7,289 7,034 4,723 4,047
Public safety
Hi9hways and streets
Culture and recreation
Public health
Capital outlay 50,000 335,823 1 35,582
Total expenditures 135,225 57,289 7,034 4,723 339,870 1 35,582
Excess (defiCiency) of revenues

over expenditures (31 ,278) 2,183 (1 ,915) !339 ,870) (1 1 2,51 6)
OTHER FINANCING SOURCES

(USES)
Transfers in 53,253
Transfers out !40,OOO) (42,273)
Total other financing sources

(uses) (40,000) (42,273) 53,253
Change in fund balance (31,278) (37,817) (1 ,915) (3) (382,143) (59,263)

Fund balance, January 1 248,830 58,833 3,230 15 382,143 67,320
Fund balance, December 31 $ 21 7,552 $ 21 ,016 $ 1 ,315 $ 12 $ .

$ 8,°57
90
Juvenile
Accountability Federal Juvenile Family Texas COA
Juvenile Incentive Foster Care Delinquency Justice Protection DPS Processing
Probation Grant Grallt Prevention Teoh nology Fee Grant Fee
$ -
$ $ $ -
$ 32,735 $ 6,240 $ $ 1 66, 075
571 , 466 4,722 1 42,733 5,000
3,486 1 7,21 1 3 753 5,082
5,4 1 0 5 ,033
580,362 4,722 1 59,944 3 33,488 6,240 5,000 1 76,190
666,947 5,484 223,668 37,404 203,884

5,000
666,947 5,484 223,668 37,404 5,000 203.�
(86,585) __--1.
(7:.,:
6:::.;
: 2) (63,724) ___ ..:::.
3 (3,91 6) 6,240 (27,694)
99 . 584 762
(762) (8,682)
98,822 762 (8,682)
1 2,237 (63,724) 3 (3.916) 6,240 (36,376)

556,678 83 24,534 2,025 1 45.763
$ 55.951 $ $ 492,954 $ 86 $ 20.618 $ 8,265 $ -

$ 1 09,387
(continued)
91
COMBINING STA TEMENT OF REVENU£S, EXPENDITURES, AND CHANGES IN FUND BALANCE
Sheriff
COA Sheriff Victims
Victims Victims Discrellonary Texas 4-H Byrne
Assistance Assistance Assistance Vine Activity JAG
Gran! Grant Grant Grant Center Program
REVENUES
Fees of office and user fees $ -
$ -
$ $ -
$ $
Intergovernmental 41 ,588 45,937 49,385 1 7,253
Fines and forfeitures
Investment Income
Interest 1 , 553
Contributions 450
Miscellaneous
Total revenues 41 ,588 45,937 49,385 1 7,253 2,003
EXPENDITURES
Current
General government 51 ,902 42,898 49,383 1 7,253
Public safety
Highways and streets
Culture and recreation 2,222
Public health
Capital outlay
Total expenditures 51 ,902 42,898 49,383 1 7,253 2,222

over expenditures (1 0,314) 3,039 (2 1 9)

(USES)
Transfers in 1 2,474
Transfers out

(uses) 12.474
Change in fund balance 2,160 3,039 2 (219)

Fund balance, January 1 (2,1 60) 1 ,41 9 41 ,561
Fund balance, December 31 $ -

$ 41458 $ 2 $ -
$ 41 ,342 $
92
Local Law
Enforcement GCRPC State Homeland Sheriffs COA
Block Solid Waste Homeland Security Disaster Hurricane Special Contraband
Grant Grant Security LETPP Relief Relief Purpose Forfeiture
$ -
$ -
$ -
$ -
$ $ -
$ -
$
26 , 1 33 64,900 1 4,998 167,962
1 ,978 32,646
385 1 ,387 1 ,500
8,592
385 26,1 33 64,900 14,998 1 67,962 1 1 ,957 34,146
14,766 25,434
929 7,453 1 4,998 1 6, 1 79
1 67,962
35,803
57,447
929 35,803 64,900 1 4,998 167,962 1 4,766 16,179 25,434
(544) (9,670) !1 4,766) (4,222) 8,712
5,127 14,766
(3,792)
5,127 1 4.766 (3,792)
(544) (4,543) (4,222) 4,920

1 0,562 44,056 30,162
$ 10,01 8 $ -
$ -
$ $ -
$ $ 39,834 $ 351°82
(continued)
93
COUN TY OF VICTORIA, TEXAS
COMBINING STA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
For the yeef ended December 31, 2005
CDA Help
CDA Dept. of Treas. NOAA Employee Election America
Homeland Federal Coastal Benefit Admin Vote Act
Forfeiture Forfeiture Imeact Fund Seecial Grant
REVENUES
Fees of office and us er fees $ $ . $ $ -
$ 28,228 $
Intergovernmental 25,460 672,794
Fines and forfeitures 50,500 24 883
,
Investment Income
Interest 1 ,239 623 213 261
Contributions 8,780
Miscellaneous 2,993
Total revenues 51,739 25,506 25,460 1 1 ,986 28,489 672,794
EXPENDITURES
Current
General government 35,185 1 3,679 25,460 1 1 ,468 24,677 608,294
Public safety
Public health
Capital outlay 64,500
Total expenditures 35,185 25,460 1 1 ,468 24,677 672,794

over expenditures 1 6,554 1 1 ,827 518 3,8 1 2

(USES)
Transfers in
Transfers out
(uses)
Change in fund balance 1 6 , 554 1 1 ,827 518 3,81 2

Fund balance, January 1 5, 1 1 8 6,874
Fund balance, December 31 $ 16,554 $ 1 1,827 $ $ 5,636 $ 1 0,686 $
94
Tax
Assl'!ssor-
Collector Historical Law Health WIC
Special Commission Library Department Program LEOSE Total
$ $ - $ 56,368 $ 328,91 3 $ $ $ 781 ,976

1 , 1 0 1 ,241 748,81 9 1 3,504 3,736,772
1 10,007
1 3,063 487 1,115 58,202

431 9,661
453 1,321 1 6,986 41 ,790
1 3,876 940 57 ,483 1 ,431 ,906 765,805 1 3,504 4,738,408
276 37,385 2,253,765

1 6,709 61 ,268
1 67,962
4,512 6,734
2,852, 1 54 766,010 3,653,967
643,352
276 4, 5 1 2 37,385 2,852, 1 54 766,010 1 6,709 6, 767 ,046
1 3,600 (3,572) 20,096 (1,420,248) (205) (3 ,205) (2,048,640)
3,000 1 ,297, 125 1 ,486,091

(25,000) (120,509)
3,000 (25,000) 1 ,297,1 25 1 ,365, 582
1 3,600 (572) (4,902) ( 1 23, 1 23 ) (205) ( 3, 205) (663,058)

45 ,092 1 2,782 1,785,008
$ 58,692 $ 1 2,210 $ 32,943 $ (1 28,800) $ 3,948 $ 1 2,305 $ 1,101 ,950
95
NONMAJOR 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.
96
NONMAJOR GOVeRNMeNTAL FUNDS - DeBT seRVIce FUNDS
December 31, 2005
Courthouse Bridge
Road Jail Restoration Street
Bonds Bonds Bonds An nex
Sinking Sinking Sinking Sinkinlj Total
ASSETS
Cash and cash equivalents $ 1 68,083 $ 1 86 91 7 $
, 1 45,346 $ 21 5,638 $ 715,984
Receivables (net)
Ad valorem 209,(;(;0 308,606 202,699 307,874 1 ,028,839
Total assets $ 377,743 $ 495,523 $ 348,045 $ 523,512 $ 1,744,823

Lia bilities
Accounts payable $ 663 $ .
$ $ $ 663
Deferred revenue 303,931 441 ,839 295,71 3 449 , 905 1 ,491 ,388
Total liabil�ie$ 304, 594 441,839 295 ,71 3 449,905 1,492,051
Fund balance
Reserved · debt service 73,14 9 53,664 52,332 73 ,607 252,772
Total ll;tbilities and fund balance $ 377,743 $ 495,523 $ 348,045 $ 523,51 2 $ 1 ,744,823
97
NONMAJOR GOVERNMIENTAL FUNDS · DEBT SERVICE FUNDS
COMBINING STA TEMENT OF REVENUES, EXPENDITURfS, AND CHANGES IN FUND BALANCE
Courthouse Bridge
Road Jail Restoration Street
Bonds Bonds Bonds Annex
Sinking Sinking Sinking Sinking Total
REVENUES
Taxes $ 340,004 $ 471,100 $ 337,849 $ 51 6,990 $ 1 ,665,943
Investment income
Interest 4,130 3,61 8 3,528 5,459 16,735
Total revenues 344,1 34 474,718 522.449 1,682,678
EXPENDITURES
Debt service
Principal retirement 240,000 445,000 225,000 31 5,000 1 ,225,000
Interest and fiscal charges 83, 1 1 1 47,175 101,639 1 85,168 41 7,093
Total expenditures 323,1 1 1 492,175 326,639 500,168 1,642,093
Change in fund balance 2 1 ,023 ( 1 7,457) 14,738 22,281 40,585
Fund balance, January 1 52, 1 26 71 ,141 37,594 51 ,326 212,16 7
Fund balance, December 31 $ 73,149 $ 53, 684 $ 52,332 $ 73,607 $ 252?72
98
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET (NON-GMP BUDGETARY BA SIS) AND ACTUAL
For the year ended December 31. 2005
Actual Amounts Variance

Original Final Budgetary POSitive
Budget Budget Basis (Negative)
REVENUES
Taxes
Ad valorem
Current $ 1 1 ,050.506 $ 1 1 ,050,506 $ 1 1 .407.540 $ 357,034
Delinquent 250.000 250,000 324,609 74,609
Penalty and interest 1 07,000 1 07,000 1 55.265 48.265
Sales and use 5,000,000 5.535,000 5,883,458 348,458
Total taxes 16.407,506 16,942.506 1 7,770,872 828,366
Fees of office and user fees
Sheriff's department 400,000 400,000 533,027 1 33,027
Prisoner maintenance 1 ,000 1 ,000 . 4,200 3.200
County treasurer 1 3,400 1 3,400 1 2,031 (1 ,369)
Eleotion administrator 1 ,000 1 ,000 6,003 5,003
County clerk 350,000 350.000 392,768 42,768
Probate personnel education fees 2,000 2,000 1 ,546 (454)
County courts at law 4,000 4,000 4,409 409
Tax assessor-collector 425.000 425,000 423,938 ( 1 .062)
Criminal district attorney 25,000 25,000 29,254 4.254
District clerk 260,000 260,000 259.834 (1 66)
Justices of the peace 1 0,500 1 0.500 14,704 4.204
Deferred adjudication 1 5,000 1 5,000 1 2,582 (2,418)
Constables 4.100 4,100 2,973 (1 ,1 27)
TOlal fees of office and user fees 1 .51 1 ,000 1,51 1 .000 1,697,269 1 86,269
Intergovernmental
Payment In lieu of taxes 1 00 1 00 162 62
Alcohol beverage tax 1 25,000 1 25,000 1 37.007 1 2,007
County courts at law 70.000 77,870 86.137 8,267
Bingo gross receipts tax 50,000 50,000 78.777 28,777
Tobacco settlement 60,000 60,000 1 08,033 48,033
Indigent defense grant 45.000 45,000 49,61 3 4,613
Title IV-E legal service 22,000 21 .664 (316)
Juvenile detention contracts 1 .200.000 1 ,200,000 1 , 1 1 3, 1 53 (86.847)
State juvenile detention funds 56,500 67,500 76,099 8,599
Jail inmate beds pace 2.900,000 2,900,000 2,486,555 (413.445)
Jail Inmate contract medical 45.000 45,000 53,426 8,426
Jail inmate contract other 40,000 40,000 39,61 8 (382)
Jail inmate extradition 25,000 25,000 23,651 (1 ,349)
General inmate medical 25,000 25,000 30.649 5,649
PrOject lifesaver 742 742
Vest reimbursement 40.000 1 8,535 (21 ,465)
DOJ FY 2005 SCAAP program 1 5,000 1 0 .074 (4,926)
Total intergovernmental 4,641 .600 4,737,470 4,333,91 5 (403,555)
(continued)
99
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES /N
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BAS/S) AND ACTUAL

Original Final Budgetary Positive
REVENUES (continued)
Fi nes and forfeitu res
District court fines $ 250,000 $ 250,000 $ 261 ,857 $ 1 1 ,857
County court at law fines 300,000 300,000 454,986 1 54,986
Justice of the peace fi nes 525,000 525,000 581,781 56,781
Forfeitures 20,500 20,500 38,796 1 8,296
Total fines and forfeitures 1 ,095,500 1,095,500 1,337,420 241,920
Interest 1 50,000 1 50,000 409,202 259,202
Licenses and permits
Marriage licenses 1 1 ,000 1 1 ,000 1 0,434 (566)
Beer and whiskey l icenses 22,500 22,500 23,415 915
M isoell a neous 1,450 1,450 185 (1,265)
Total licenses and permits 34,950 34,950 34,034 (916)
Contributions 400 6,790 6,424 (366)
Miscellaneous
Records management preservation 30,000 30,000 38,858 8,858
WIC program administrative fee 20,000 20,000 21 ,493 1 ,493
Criminal justice planning com m iss ion 100 100 567 467
Crime stopper fee 5 5 1 ( 4)
LEOSEF collection 50 50 1 (43)
Victims of crime coll ection 13,000 1 3,000 1 ,933 ( 1 1 ,067)
JCPTF commission 1 ,500 1 ,500 1 49 ( 1 ,351 )
Juvenile probation diversion collections 400 400 160 (240)
Operators/chauffeurs license collection 50 50 13 (37)
General revenue/m isdemea nor cost 50 50 14 (36)
Comprehensive rehabili lation colleelion 50 50 4 (46)
Criminal assessment collection 50 50 (50)
Abused children fees 50 50 ( 50)
Legal service for i ndigents fees 800 800 492 (308)
Defensive driving course fee 1 0,000 1 0,000 1 7,300 7,300
Visual record by electronic device 500 500 3,102 2,602
Court reponer fees 27,000 27,000 24,123 (2,677)
Arrest warrant fees 48,000 46,000 39,251 (8,749)
Other fee s 101 ,800 101 ,800 1 58,776 56,976
Personal recognizant fees 7,000 7,000 7,156 1 56
CJAD con tracl services 6,000 6,000 5,702 (298)
Rents and royalties 30,912 30,91 2 39,01 1 6,099
Telephone commissions 21 0,000 21 0,000 21 8,207 8,207
Election m ach ines rental 6,775 6,775
Reimbursements 44,500 44,500 32,803 ( 1 1 ,697)
Refu nds 1 50 95,150 94,897 (253)
Restitutions 500 500 2,856 2,356
Miscellaneous 27,100 27,100 42,974 1 5,874
Total miscellaneous 579,567 674,567 756,624 82,057
Total revenues 24,420,523 25,1 52,783 26,345,760 1,1 92,977
(continued)
1 00
GENERAL FUND
FUND BALANCE - BUDGET (NON-GAAP BUDGETARY BASIS) AND ACTUAL
Actual Amounts Varia nce

Budget Budget Basis IN!:!!lative)
EXPENDITURES
Current
General government
County judge
Salaries $ 1 44,006 $ 1 43,606 $ 1 41 , 505 $ 2, 1 01
Fringe benefits 37,962 37,962 37,179 783
Operating expenditures 1 1 ,032 1 1 ,432 3,584
Total county judge 1 93,000 1 93, 000 1 86,532 6,468
Commissioners' court
Salaries 38 ,90 1 38,901 38,90 1
Fringe benefits 1 0,928 1 0,928 1 0,684 44
Operating expend�ures 1 1 , 000 1 1 ,000 1 0 , 1 46 854
Other services and charges 1 4,000 1 8,200 16,176 2,024
Total commissioners' court 74,829 79,029 76,1 07 2,922
Records management
Salaries 8,300 8 , 300 5,97 5 2,325
Fringe benefits 635 635 457 1 78
Operating expenditures 21,065 865 865
Total records management 30,000 9,800 6 ,4 32 3,368
County clerk
Salaries 428,629 428, 629 412,679 1 5 , 950
Fringe benefits 1 37,524 1 37,524 1 30,514 7,010
Operating expenditures 37,166 36,546 24,409 1 2, 1 37
Other services and charges 1 ,200 1 , 200 1 ,200
Capital outlay 620 620
Total county clerk 604,51 9 604,519 568,222 36, 297
Veterans' service Officer
Sal aries 39, 1 46 39,146 36 , 730 2,416
Fringe benefits 1 0,975 1 0,975 6,910 4,065
Operating expenditures 3,500 3,500 2
Total veterans' service officer 53,621 53,621 47,138 6,483
Heritage director
Salaries 33,354 33,354 33,197 1 57
Fringe benefits 1 0, 622 1 0 , 622 1 0,407 215
Operating expenditures 7,300 5,600 3, 846 1 , 754
Capital outlay 1 ,700 1 ,693 7
Total heritage director 51 ,276 51 ,276 49,1 43 2,1 33
Non-departmental
Operating expenditures 1 , 1 67,672 929,601 885,369 44,232
Other services and charges 656,509 779,808 763,523 1 6, 285
Capital outlay 307,235 344,992 321,100 23,692
Total non-departmental 2,1 31 ,416 2,054,401 ',969,992 84,409
(continued)
101
GENERAL FUND
FUND BALANCE - BUDGET (NON·GAAP BUDGETARY BASIS) AND ACTUAL
For the year enclad December 31, 2005

EXPENDITURES (continued)
Current (continued)
General government (continued)
County court at law # 1
Salaries $ 1 35,390 $ 1 38,706 $ 1 38,265 $ 441
Fringe benefits 34,264 34.883 33.994 889
Operating expenditures 3,755 3,755 2,038 1 ,71 7
Other services and charges 40.000 50,000 45,061 4,939
Total county court at law # 1 21 3.409 227,344 21 9,358 7,986
County court at law # 2

Salaries 134,455 1 37,771 1 37,770 1
Fringe benefits 29.046 29,665 29,050 615
Operating expenditures 3 ,450 3,450 3,267 183
Other services and charges 32,000 47,000 40,446 6.554
Tatal county court at law # 2 1 98.951 21 7,886 21 0,533 7.353
District court
Salaries 203,568 203.568 1 97,826 5,742
Fringe benefits 85,447 85,447 82.947 2,500
Operating expenditures 1 3,250 1 3.250 1 1 ,044 2,206
Other services and charges 480,070 576,344 526.271 50.073
Total distriot court 782.330 878,609 81 8.088 60,521
District clerk
Salaries 381,728 381 .728 378,383 3,345
Fril1ge benefits 1 1 7,978 1 1 7.978 1 1 5,651 2.327
Operating expenditures 24,240 25,240 23,392 1 ,848
Total district clerk 523,946 524.946 51 7,426 7,520
Justice of the peace # 1

Salaries 65,357 65,357 65,356 1
Fringe benefits 1 9,497 19,497 1 9,337 1 60
Operating expenditures 5,490 6,090 5.733 357
Other services and charges 1 2,240 12,140 1 2,084 56
Total justice of the peace # 1 102,584 1 03,084 1 02,5 1 0 574
J ustice of the peace # 2

Salaries 64 547
, 64,547 63,786 761
Fringe benefits 20.087 20,087 1 7.818 2,269
Operating expenditures 3,075 3.075 2,307 768
Other services and charges 1 3,750 1 3.750 1 1,992 1,758
Total justice of the peace # 2 101,459 1 01 ,459 95,903 5.556

Salaries 21 0,685 21 0.685 207,786 2,899
Fringe benefits 61 .260 61 ,260 57,391 3.669
Operating expenditures 5,390 5,390 4,898 492
Other services and charges 900 900 772 1 28
Total justice of the peace # 3 278.235 278,235 270.847 7,388
(col1l1nued)
1 02
GENERAL FUND

Current (continued)
Salaries $ 93,632 $ 1 03,301 $ 1 02,361 $ 940
Fringe benefits 29,153 30,986 27,382 3,604
Other services end charges 1 0,000 1 1 ,700 1 1 ,695 5
Total justice of the peace # 4 1 37,690 1 50,892 1 45.405 5,487
Criminal district attorney

Salaries 61 3,449 61 3,449 608, 1 1 8 5,331
Fringe benefits 1 55,551 1 55,551 1 52,706 2,845
Operating expenditures 1 0,000 1 0,000 9,877 123
Total criminal district attorney 779,000 779,000 770,701 8,299
Election administrator
Salaries 1 26,851 1 30,733 1 30,355 378
Fringe benefits 31 ,901 30,654 26,594 2,060
Operating expendHures 1 8,700 1 9,240 1 6, 805 2 ,435
Other services and charges 1 1 ,350 7,375 4, 1 31 3,244
Capital outlay 7,400 7,345 55
Total election administrator 1 66,602 1 95,402 1 87,230 8,172
County auditor
Salaries 281 ,31 6 261 , 3 1 6 267,21 5 14,101
Fringe benefits 78,946 76,946 72,694 6,252
Operating expenditures 1 8,675 1 8,675 1 6, 1 04 2,571
Total county auditor 378,937 378,937 356,013 22,924
County treasurer
Salaries 1 84,088 1 84,086 1 81 ,028 3,060
Fringe benefits 52,665 52,665 47,364 5,301
Operating expenditures 34,000 35,120 1 5,498 1 9,622
Total county treasurer 270,753 271 ,873 243,890 27,983
Tax assessor-collector
Salaries 444,713 444, 7 1 3 429,503 1 5,21 0
Fringe benefits 1 32,727 1 32,727 128,010 4,7 1 7
Operating expenditures 22,975 22,975 21 ,841
Total tax assessor-collector 600,41 5 600,41 5 579,354 21,061
Administrative servioes
Salaries 1 24,199 1 31 ,399 1 30,992 407
Fringe benefits 31 ,396 36,343 35,793 550
Operating expenditures 1 2,308 1 3,708 1 3,1 68 540
Total administrative services 1 67,905 1 81 ,450 1 79,953 1 ,497
(continued)
1 03
GENERAL FUND

Orig i nal Final Budgetary Positive
Current (continued)
I nformation technology
Sal aries $ 192,509 $ 21 1 ,672 $ 2 1 0. 69 1 $ 1 , 1 81
Fringe benefits 55,749 62,1 1 8 61,012 1 , 1 06
Operating expenditures 221 ,785 1 82,285 1 71 ,901 10.384
Other services and charges 61 .300 84.561 80,976 3,585
Capital outlay 25,000 73,039 73,039
Total information technology 576.343 61 3.675 597,61 9 1 6,256
Salaries 221,267 221 ,267 21 7. 653 3.614
Fringe benefits 65,497 65,497 59,469 6.006
Operating expenditures 72 1 ,500 91 6,447 920,434 (3.987)
Total building m aintenance 1,008,264 1,203,21 1 1,1 97,576 5,635
Adult probation department
Operating expenditures 16,340 1 4,040 1 2,799 1 .241
Capital outlay 1 7.233 1 7.226 7
Total adult probation department 1 6,340 31,273 30,025 1 ,248
Juvenile detention facility
Salaries 1 . 384, 1 57 1 .365.766 1.31 3.449 52,31 7
Fringe benefits 396,094 396,094 348.159 47.935
Operating expenditures 293,200 341 , 1 79 327,207 13,972
Other services and ch arges 59,140 53,302 53, 1 56 146
Capital outlay
Debt service 509.497 499.597 499.51 7 80
Total juvenile detention facility 2,642,088 2,655,938 2,541 ,488 1 1 4,450
Juvenile board
Salaries 29,650 29,650 29,650
Fringe benefits 5.623 5,623 4,891 732
Other services and charges 35,300 58.550 58.51 9 31
Total juvenile board 70,573 93,823 93,060 763
Total general government 1 2. 1 76,690 1 2,533,298 12,060,545 472,753
Public safety
Fire marshal
Salaries 82.221 82.221 77,41 6 4,805
Fringe benefits 22,694 22.694 21 . 1 1 6 1 . 578
Operating expenditures 30,618 38,557 35,933 2,624
Other services and charges 66,500 56.343 53.993 2.350
Capital outlay 2.100 2,048 52
Total fire marshal 202,033 201,915 1 90,506 1 1 ,409
(continued)
1 04
GENERAL FUND
FUND BALANCE - BUDGET (NON-GMP BUDGETARY BASIS) AND ACTUAL

Current (continued)
Public safety (continued)
Sheriff
Salaries $ 5,200,799 $ 5,1 50,672 :5 5,075,134 $ 75,538
Fringe benefits 1 ,472,052 1 ,41 6,952 1 ,404,946 1 2,006
Operating expenditures 1 ,552,975 1 ,882,062 1 ,803,404 78,658
Other services and charges 1 5,000 1 5 ,000
Capital outlay 600 217, 1 1 0 59,109 1 58,001
Debt service 83,032 81 ,764 81 ,762 2
Total sheriff 8,309,458 8,763,560 8.439,355 324,205
Constable # 1
Salaries 1 8, 1 27 18,127 1 8, 1 27
Fringe benefits 7,734 7,734 7,526 208
Operating expenditures 780 780 322 458
Total constable # 1 26,641 26,641 25,975 666
Constable # 2
Salaries 1 8,437 1 8,437 1 8,437
Fringe benefits 7,793 7,709 7,631 78
Total constable # 2 2 8 ,8 10 28,822 28,741 81
Constable # 3
Salaries 1 7,907 1 7,907 1 7,907
Fringe benefits 6,948 6,948 6,339 609
Operating expenditures 780 1 ,61 1 1 ,586 25
Total constable # 3 25,635 26,466 25,832 634
Constable # 4
Salaries 1 7,907 1 7,907 1 7,907
Fringe benefits 6,948 4,748 3,393 1 ,355
Operating expenditures 780 2,980 2,486 494
Total constable # 4 25,635 25,635 23,786 1 ,849
Non-departmental
Other services and charges
City/County interlocal agreement 530,000 477,883 477,883
Total non-departmental 530,000 477,883 477,883
Total publio safety 9,148,212 9,560,922 9,2 12, 078 338,844
Salaries 57,018 57, 1 1 2 57,1 1 5 (3)
Fringe benefits 1 7,916 1 8,291 1 8, 250 41
Operating expenditures 1 9,200 1 7,363 1 5, 1 75 2,188
Total parks and recreation 95,134 95,603 93,377 2, 226
(continued)
105
GENERAL FUND
FUND BALANCE - BUDGET (NON·GAAP BUDGETARY BASIS) AND ACTUAL
Actual Amounts Va riance

Budeet Budge t Bas is (Negative)
Current (continued)
Culture and recreation (continued)
Extension service
Salaries $ 169,177 $ 161 ,577 $ 1 61 ,361 $ 216
Fringe benefits 43,478 43,478 31 ,043 12,435
Operating expenditures 1 6.387 20, 1 52 1 9,720 432
Other services a nd charges 9,600 1 8,825 1 8.670 155
Total extens io n service 238.642 244,032 230,794 13,238
Non-departmental
Other services and charges
Victoria Public Library 91 2,575 91 2,575 91 2.575
Total culture and recreation 1 ,246,351 1 .252.210 1 ,236.746 15,464
Public health
Emer Mgmt I Flood plain
Salaries 44.863 44.863 44.863
Fringe benefits 8.508 8,508 8,481 27
Operating expenditures 4.81 5 4. 6 1 5 3,992 823
Total flood plain management 58,186 58,186 57,336 850
Total publio health 58,186 58. 1 86 57.336 850
Total expenditures 22,629.439 23,394,616 22,566,705 827,91 1
Excess (deficiency) of revenues over expenditures 1 ,791 ,084 1,758,167 3,7 79,0 55 2,020,888
Sale of assets 1 0,000 1 1 0.000 293.939 1 83,939
Transfers In 265,000 307,274 307,273 (1)
Transfers out (2.066.084) (2,18 9,21 1 ) (2,004,855) 1 84,356
Total other financing source5 ( U51:15) (1,791 ,084) (1.771 ,937) (1 ,403,643) 368,294
Change In fund balance (1 3,770) 2,375,412 2,389,1 82
Fund balance. January 1 4,596,751 4.596,751 4.596,751
Fund balance, December 31 $ 41596?5 1 $ 4,582,981 $ 6,9721163 $ 213891182
1 06
ROAD AND BRIDGE PR£CINCT NO. 1
SCHEDULE OF REVENUES, EXPENDITUR£S, AND CHANGES IN FUND BALANCE ·
BUDGET AND ACTUAL
Actual Amounts Budget to GAAP

Final Budgetary Differences Actual Amounts
Budset Basis Over (Under) GAAP Basis
REVENUES
Taxes
Current taxes $ 427,491 $ 441,539 $ - $ 441,539
Delinquent taxes 1 2,000 1 2,380 (64) 1 2,444
Penalty and Interest 5,200 6,154 (24) 6,178
Intergovernmental
Vehicle license fees 225,000 235,350 235,350
Additional license fees 1 90,000 1 98,936 (456) 1 99,392
Permits 3,500 3,558 3,558
Investment inoome
Interest 7,500 1 8,065 1 8,065
Miscellaneous 25,355 27,194 26,838
Total revenues 896,046 943,1 76 (1 BB) 943,364
EXPENDITURES
Current
Salaries 41 1 , 942 40B,949 70 40B,879
Fringe benefits 1 40,295 1 36,668 2,969 1 33,699
Operating expenditures 259,1 1 0 249,797 (2,291 ) 252,088
Other services and charges 4,650 4,796 4 ,796
Capital outlay 1 1 ,724 1 0,724 10,124
Debt service 58,480 58, 480 58,480
Total expenditures 886,401 869,414 748 866,666
over expenditures 9,645 73,762 (936) 74,698
Sale of assets 1 00 327 327
Transfers out (50,000) (50,000) (50,000)
Total other financing sources (uses) (49,900) (49,673) (49,673)
Change in fund balance (40,255) 24,089 (936) 25, 025
Fund balance, January 1 294,510 294,51 0 56,065 238,445
Fund balance, December 31 $ 254,255 $ 31 8,599 §l 55, 129 $ 263,470
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.
1 07
NONMAJOR GOVERNMENTAL FUNDS " SPECIAL REVENUE FUNDS
ROAD AND BRIDGE PRECINCT NO. 2
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE "
BUDGETAND A CTUAL

Final Budgetary Differenoes Actual Amounts
Budget Basis Over (Under) GAAP Basis
REVENUES
Taxes
Cu rren t taxes $ 349,765 $ 361 ,259 $ " $ 361 ,259
Delinquent taxes 1 0,000 1 0 , 096 (52) 10,148
Penalty and interest 4 , 000 5,030 (19) 5,049
Intergovernmental
Vehiole license fees 235,000 235,350 235, 350
Additional license fees 1 80,000 1 79, 990 (413) 1 60,403
Permits 3,500 3,558 3,558
Investment Income
Interest 8,000 17,130 1 7 , 1 30
Miscellaneous 100 150 1 50
Total revenues 790,365 81 2,563 (484) 8 1 3,047
EXPENDITURES
Current
Salaries 329,769 329,199 (1 67) 329,3a6
Fringe benefits 1 1 7, 309 1 1 4,032 2,251 1 1 1 ,761
Operating expenditures 303,1 1 1 266, 254 1 1 , 1 94 277,060
Other services and charges 5,200 1 ,425 1 ,425
Capital outlay 45,076 45,075 45,075
Total expenditures 800.465 777,985 1 3,258
Excess (defioienoy) of revenues
over expenditures PO,1 00) 34,578 (13,742) 48,320
Transfers out (50,000) (50,OOO) (50,000)
Total other financing sources (uses) (49,900) (49,467) !49,467)
Change in fund balance (60,000) (14,889) ( 1 3,742) ( 1 , 1 47)
Fund balance, January 1 289,042 289,042 71 ,673 2 1 7,369
Fund balance, December 31 $ 229,042 $ 274,153 ! 57 , 931 $ 216,222
Explanation of differences ;
The Cou nty budgets on the cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as oollected and expenditures when paid.
108
ROAD AND BRIDGE PRECINCT NO. 3
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Actual Alllounts Budget to GMP

Final Budgetary Differences Actu al Amou nts
Budget Basis Over (Under) GMP Basis
REVENUES
Ta�es
Current taxes $ 349 ,765 $ 361 ,259 $ $ 36 1 ,259
Delinquent taxes 1 0,000 1 0,096 (52) 1 0, 1 48
Penalty and interest 4,000 5,041 (19) 5,060
Intergovernmental
Additional license fees 1 80,000 1 79,990 (413) 1 80,403
Permits 3.500 3,558 3, 558
Investment income
Interest 18,000 28,987 28,987
Miscellaneous 15,100 1 5,945 (304) 1 6,249
Total revenues 600,3 65 640,226 (768) 64 1 ,0 1 4
EXPENDITURES
Current
Salaries 403,161 384,474 (1 1 0 ) 384,584
Fringe benefits 1 24, 66 1 1 21 ,326 2 , 229 1 1 9,097
Operating expenditures 272,220 237, 79 3 5,659 232,1 34
other se rvice s and ch arges 8,700 3,607 3, 60 7
Capital outlay 1 80,320 1 80,240 1 80,240
Total expenditures 989,062 927,440 7, 778 91 9, 662
over expenditures (1 88,697) (87,214) (8,566) (78,648)
Transfers out (50,000) (50,000) (50,000)
Total other financing sources (uses) (49, 900) (49,673) (49,673)
Change in fund balance (238,597) (1 36,887) (8,566) (128,321)
Fund balance, January 1 696,081 696,08 1 58,966 637,1 1 5
Fund balance, December 31 $ 457,464 $ 559,194 $ 50.400 $ 508,794
Explanation of differences:
The County budgets on tlhe cash basis of accounting. Therefore, under the budgetary
basis, revenues are recognized as collected and expenditures when paid,
109
ROAD AND BRIDGe PRECINC T NO. 4
BUDGET AND ACTUAL

Final Budgetary DH'ferences Actual Amounts
REVENUES
Taxes
Current taxes $ 427,491 $ 441 ,539 $ -
$ 441,539
Delinquent taxes 1 2,000 1 2,298 (64) 1 2,362
Penalty and interest 5,200 6,155 (23) 6,178
Intergovernmental
Additional license fees 1 90,000 1 98,936 (456) 1 99, 392
Permits 3,500 3,558 3,558
Investment income
I nterest 10,000 1 7,673 1 7,673
Miscellaneous 1 0,100 9,012 9,012
Total revenues 888,291 924,521 (543) 925,064
EXPENDITURES
Current
Salaries 408,255 384,587 257 384,330
Fringe benefits 1 26,179 1 1 9,262 3,096 1 1 6, 1 66
Operating expenditures 353,994 330,305 1 0,039 320,266
Other services and oharges 1 2,000 9,438 9,438
Capital outlay 97,500 95,498 68,304 27,194
Debt service 57,616 57,816 57,816
Totl'll expenditures 1 ,055,744 996,906 81 ,fl96 91 5,210
over expenditures (1 67,4(3) (72,385) 182,239) 9,854
Sale of assets 100 8,849 8,849
Transfers out (50,000) (50,000) (50,000)
Total other financing sources (uses) (49,900) (41,1 51) (41 ,1 51 )
Change in fund balance (21 7,353) ( 1 1 3,536) (82,239) (31 ,297)
Fund balance, January 1 435,095 435,095 1 34,339 300,756
Fund balance, December 31 $ 21 7,742 $ 321 ,559 $ 52,100 $ 269,459
The County budgets on the cash basis of acoounting, Therefore, under the budgetary
1 10
NONMAJOR GOVERNMENTAL FUNDS · DEBT SERVIC£ FUNDS
ROAD BONDS SINKING FUND
SCHeDULE: OF REVENues, exPENDITURES, AND CHANGES IN FUND BALANCE ·
BUDGET AND ACTUAL

Budget Over (Underl GAAP Basis
REVENUES
Taxes
Current taxes $ 31 7, 1 54 $ 326,585 $ -
$ 326,585
Delinquent taxe s 7 , 000 9,039 (37) 9,076
Penalty and interest 3,400 4,330 ( 1 3) 4,343
Investment income
Interest 1 ,500 4,130 4,130
Totat revenues 329,054 344,064 (50) 344,134
EXPENDITURES
Debt service
Principal retirement 240 ,000 240,000 240,000
Interest and fiscal charges 82,78 7 82,449 1662) 63, 1 1 1
Total expenditures 322,787 322,449 (662) 323, 1 1 1
Change in fund balance 6,267 21 ,635 61 2 21 ,023

Fund balance, January 1 52,167 52,167 41 52,126
Fund balance, De<:ember 31 $ 51l,434 $ 73,802 $ 653 $ 73,149
basis, revenues are recogoized as collected and expenditures when paid.
111
NONMAJOR GOVERNMENTAL FUNDS - DEBT SERVICE FUNDS
JAIL BONDS SINKING FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL

Budget Basis Over (Underl GAAP Basis
REVENUES
Taxes
Current taxes $ 438,31 4 $ 452,471 $ -
$ 452,471
Delinquent taxes 1 4,000 1 2,644 (63) 12,697
Penalty and interest 5,500 6,012 (20) 6 032
,
Investment income
Interest 1 ,900 3,618 3,618
Tolal revenues 459,714 474,645 (73) 474,718
EXPENDITURES
Debt service
Principal retirement 445,000 445,000 445,000
Interest and fiscal charges 47,475 47,175 47,175
Total expenditures 492,475 492,175 492,175
Change in fund balance (32,761 ) (1 7,530) (73) ( 1 7,457)
Fund balance, January 1 71,1 90 71,1 90 49 71,141
Fund balanca, December 31 $ 38,429 $ 53,660 $ (24) $ 53,684
112
NONMAJOR GOVERNMENTAL FUNDS - DEB T SERVICE FUNDS
COURTHOUSE RESTORATION BONDS SINKING FUND
BUDGeT AND ACTUAL

Final Bud geta ry Differences Actual Amounts
REVENUES
Taxes
Current taxes $ 31 3,591 $ 324,539 $ $ 324,539
Delinquent taxes 4,300 8,961 ( 31) 8,998
Penalty and interest 3, 1 00 4,298 ( 14) 4, 3 1 2
Investment income
Interest 1 ,300 3,528 3,528
Total revenues 322,291 341 , 326 (5 1 ) 341,377
EXPENDITURES
Debt service
Principal retirement 225,000 225,000 225,000
Interest and fiscal cha rges 101,640 1 01,639 101,639
Change in fund balance (4,349) 14,687 (51) 1 4,738
Fund balance, January 1 37,633 37,633 39 37,594
Fund balance, December 31 $ 33,284 $ 52,320 $ (12) $ 52,332
basis, revenue s are recognized as collected and expenditures when paid.
113
NONMAJOR GOVERNMENTAL FUNDS - DEBT SERVICE FUNDS
BRIDGE STREET ANNEX SINKING FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Actual Amounts Budget to GMP

F inal Budgetary Differences Actual Amounts
Budset Basis Over (Under) GMP Basis
REVENUES
Taxes
Current taxes $ 461 ,076 $ 496,619 $ -
$ 496,619
Delinquent taxes 9,000 1 3,719 (56) 1 3,775
Penalty and Interest 5,700 6,575 (21 ) 6,596
Investment Income
Interest 2,200 5,459 5,459
Total revenues 497,976 522,372 (77) 522,449
EXPENDITURES
Debt service
Principal retirement 31 5,000 315,000 31 5,000
Interest and fiscal charges 186,169 1 85,168 165,168
Change In fund balance (3.193) 22,204 (77) 22,281
Fund balance. January 1 51 ,362 51,382 51,326
Fund balance, December 31 $ 48,189 $ 73.586 $ (21) $ 73,607
114
A@ENCY FUNPS
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 Counly of Victoria.
District 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 flnes 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-Colleotor 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.
Munlolpal Court Fund - Accounts for the receipt of monies collected from City of Victoria
inmates housed In the Victoria County Jail. Such monies consist of fines, court costs, and other
related items that are in turn remitted to the City of Victoria.
Juvenile Inmate Trust Fund Accounts for monies that are held for the benefit of and use by
-
inmates in the County Juvenile Detention facility.
CDA State Judiciary Fund - Accounts for funds received from the State Comptroller's Office to
provide financial assistance to district attorneys for office expenses, supplies, and personnel.
115
AGENCY fUNDS
COMBINING STA TEMENT OF CHANGES IN ASSETS AND LIABILITIES
for the year ended December 31, 2005
Balance at Balance at
Beginning End
of Year Additions Deletions of Year
COUNTY CLERK·TRUSTS
ASSETS
Cash and cash equivalents $ 1 ,546,708 $ 693,899 $ 787,627 $ 1,452,980
L IAB I L ITI ES
Accounts payable $ 1 ,546,708 $ 693,699 $ 787,627 $ 1,452,960
CRIMINAL DISTRICT AlTORNEY

ASSETS
Cash and cash equivalents $ 1 9,043 $ 1,005,627 $ 1 ,01 7,434 $ 7,236
LIABILITIES
Accounts payable $ 19,043 $ 1 ,005,627 $ 1,01 7,434 $ 7,236
DISTRICT CLERK-TRUSTS
ASSETS
Cash and cash equivalents $ 2.899,674 $ 795,748 $ 1,226,775 $ 2,468,647
LIABILITIES
Accounts payable $ 2,899,674 $ 795,748 $ 1 ,226,775 $ 2,468,647
DISTRICT CLERK-CHILD SUPPORT

ASSETS
Cash and cash equivalents $ 1 1 ,549 $ 755,821 $ 755,668 $ 1 1,702
LIABILITIES
Acoou nts payable $ 1 1 ,549 $ 755,821 $ 755,668 $ 11,702
CLERK'S SPECIAL
ASSETS
CaSh and cash equivalents $ 1 ,653 $ 14,203 $ 15,831 $ 25
Other receivables 25 18
$ 1,678 $ 1 4,221 $ 1 5,856 $ 43
LIABILITIES
Accounts payable $ 1,678 $ 1 4,221 $ 1 5,856 $ 43
JAIL INMATE TRUST FUND

ASSETS
Cash and cash equivalents $ 34,963 $ 594,179 $ 612,572 $ 1 6,570
LIABILITIES
Accounts payable $ 34,963 $ 594, 1 79 $ 612,572 $ 1 6,570
(continued)
116
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the ye<lf ended December 31, 2005
Beginning End
SHERIFF SPECIAL
ASSETS
Cash and cash equivalents $ 1 0,414 III 31 3,386 $ 322,800 $ 1 ,000
Other reoeivables 250 250
Total assets $ 1 0,414 $ 31 3,636 $ 322,800 $ 1 , 250
LIABILITIES
Accounts payable $ 1 0,414 $ 31 3,636 $ 322,800 $ 1,250
STATE FEES
ASSETS
Cash and cash equivalents $ 1 79,610 $ 942,550 $ 923,317 $ 1 98,843
Other receivables 7,578 2,484 7,5 78 2,484
Total assets $ 1 87, 1 88 III 945,034 $ 93°1895 $ 201 ,327
LIABILITIES
Accounts payable $ 187,188 $ 945,034 $ 930,895 $ 201 , 327
JUSTICE OF THE PEACE-SPECIAL

ASSETS
Cash and cash equivalents $ 2°1842 $ 1 2,831 $ 33,447 $ 226
LIABILITIES
Accounts payable $ 20,842 $ 1 2,831 $ 33,447 $ 226
TAX ASSESSOR-COLLECTOR
ASSETS
Cash and cash equivalents $ 2,574,290 III 86,1 87,066 $ 85,539. 173 $ 3,222,183
Other receivables 5 1 ,289 54,945 51 ,289 54,945
Total assets $ 2.625,579 $ 86,242,o1 1 $ 85,590,462 $ 3,277,1 28
LIABILITIES
Accounts payable $ 1 ,1 41 $ 82,966,139 $ 82,966,024 1 ,256
Due to other governments 2,624,438 3.275,872 2,624,438 3,275,872
Total liabilities $ 2.625.579 $ 86,242,01 1 $ 66,590,462 $ 3.277.128
JUVENILE RESTITUTION
ASSETS
Cash and cash equivalents $ 1 87 $ 1 0,715 $ 1 0,487 $ 415
LIABILITIES
Accounts payable $ 1 87 $ 1 0,715 $ 1 0,487 $ 41 5
(continued)
117
AG£NCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSE:1S AND LIABILITIES
Beginning E nd
SPECIAL SERVICES
ASSETS
Cash and cash equivalents $ 362.569 $ 49,838 $ 345,060 $ 67.347
Seized assets 70.516 6,881 70,51 1 6.886
Total assets $ 433,085 $ 56,71 9 $ 415,571 $ 741233
LIABILITIES
Accounts payable $ 433,°85 $ 56,71 9 $ 41 5.571 $ 74,233
MUNICIPAL COURT FUND

ASSETS
Cash and cash equivalents $ 7,883 $ 234, 363 $ 228.590 $ 1 3,656
Other receivables 7,522 7,522
Total assets $ 7.883 � 241 ,885 $ 228,590 $ 21 . 1 78
LIABILITIES
Accounts payable $ 7,883 $ 241 ,885 $ 228,590 $ 21 . 1 78
JUVENILE INMATE TRUST FUND

ASSETS
Cash and cash equivalents $ 745 $ 2,845 $ 2,842 $ 748
LIABILITIES
Accounts payable $ 745 $ 2,845 $ 2,842 $ 748
CDA STATE JUDICIARY FUND

ASSETS
Due from other governments $ 10,81 8 $ 8,1 38 $ 10,818 $ 8,138
Other receivables 4,525 4.525
Total assets :II 1 0,818 $ 1 2 ,663 $ 1 0,818 $ 1 21663
LIABILITIES
Accounts payable $ 1 0,589 $ 1 2.427 $ 1 0,589 $ 1 2,427
Accrued expenditures 229 236 229 236
Total liabilities $ 1 0,818 $ 1 2,663 $ 1 0,818 $ 12.663
TOTALS - ALL AGENCY FUNDS

ASSETS
Cash and cash equivalents $ 7,670,130 $ 91.61 3.071 $ 91 ,821 ,623 $ 7 , 461 . 578
Other receivables 58,892 69,744 58,892 69,744
Due from other governments 10.81 8 8,138 1 0,818 8.138
Seized assets 70.516 6,881 70.51 1 6.886
Total assets $ 7.810. 356 $ 91 ,697,834 $ 91,961 ,844 $ 7.546.346
LIABILITIES
Accounts payable $ 5.1 85,689 $ 88,421,726 $ 89,337,177 $ 4,270.238
Accrued expenditures 229 236 229 236
Due to other governments 2.624,438 3,275,872 2.624,438 3,275.872
Total liabilities $ 7.81 0.356 $ 91 ,697,834 $ 91 ,961,844 $ 7,546.346
118
STATISTICAL SECTION (UNAUDITED)
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
Last ten fiscal }IEIars
Fiscal Year Highways Culture

Ended General Public and and Public
December 31 Government Safety Streets Recreation Health
1 996 $ 9,007,346 $ 6,479,580 $ 2,643,508 $ 955, 1 36 $ 2,658,938
1 997 9,484,560 8,036,287 2,615,299 964,160 2.498,023
1 998 10,993,798 8,517,491 3,01 6,237 976,903 2,664,140
1 999 1 1 ,767,909 8,440,385 3,439,508 1 , 090,778 3,084,031
2000 1 4,336,043 8,363,OB6 3,651,506 1 , 035,824 2,974,273
2001 15,1 1 8,795 9,286.414 3,507,070 1 ,1 35,727 3,215,084
2002 13,166,835 9,528,954 3,707,315 1 ,1 48,920 3,422,583
2003 1 3,068,613 8,61 4,925 3,331 , 1 07 1 , 1 90,649 3,554,074
2004 1 3,277,443 8,963,262 3.808,439 1 ,1 57,450 3,489,;;>44
2005 14,278,131 9,283,373 4,337,766 1 ,241 ,058 3,71 2,723
(1) Includes General, Special Revenue, Debt Service, and Capital Project Fu nd expenditures,
Source: County of Victoria
119
Capital Debt
Outlay Service Total
$ 433,623 $ 2,387,275 $ 24,565,406
1 ,014, 1 37 2,334,686 26,947,1 54
491,399 1 .647, 1 98 28,209,1 66
2,600,809 1 ,405,297 31 ,828,71 7
233,064 1 , 352,623 31 ,946,419
855,424 1 ,488,474 34,606,988
1 ,774,802 1 ,51 3,231 34,262,640
2,97 1 ,375 1 ,651 ,912 34,382,855
542,487 1 ,600,642 32,638,967
643,352 1 ,642,093 35,1 3S,496
1 20
GeNERAL GOVERNMENTAL REVENUES BY SOURCE (1)
Last ten fiscal years
Fiscal Year Fees of Office Fines

Ended and Inter- and Investment
December 31 Taxes User Fees governmental Forfeitures Income
1 996 $ 1 3,564,067 $ 1 ,838,100 $ 7,094,721 $ 804,685 $ 558,814
1997 14,1 81 ,2 1 1 1 ,963,787 8,394,543 1 ,023,676 61 9,933
1 998 14,71 4,305 1 ,886,278 9,254,030 1 ,21 1 ,423 781 ,366
1999 1 5,303,357 1 ,764,916 1 0,256, 1 1 6 890,265 761 ,378
2000 15,801,261 1 , 970,039 9,437,979 1 , 1 87,787 624,131
2001 1 6,442,785 2,017,132 9,648,596 1 ,069,082 625,154
2002 17,073,371 2,21 7,546 9,054,252 840,129 398,71 1
2003 1 7,902,538 2,207,983 1 0,546,682 1 ,619,602 223,670
2004 1 9,855,785 2,595,533 10,035,336 1 .403,048 272,257
2005 21 ,232,178 2,472,28 7 9,830,274 1 ,463,626 585,742
(1) Includes General, Special Revenue, Debt Service, and Capital Project Fund expenditures,
121
Licenses
and
Permits Other Total
$ 35,948 $ 707, 208 $ 24,623,543
33,213 928,413 27,144,776
48,9 74 863,840 28,760,216
32, 7 82 1 ,419,91 9 30,426.735
45,605 2,103.951 3 1 , 370. 753
32,330 2,61 9,524 32,474,603
32,990 977,634 30, 594,633
40,053 1 ,480,947 34,021 ,475
36,451 1 .204.01 7 35,402,427
33.524 SS4,0 1 7 3(;,501.648
1 22
ESTIMATED ACTUAL VALUE AND ASSESSED VALUE OF TAXABLE: PROPERTY
(1 )
Estimated Assessed County
Tax Roll Actual Value Percentage Value Tax Rate Tax Levy
1995 $ 3,374,254,1 1 0 1 00.00% $ 3,374,254, 1 1 0 0.3410 $ 9,566,303
1 996 3,602,838,570 1 00.00% 3,602,838,570 0.3410 9,882,352
1 997 3,694,072,420 1 00.00% 3,694,072,420 0.3410 1 0 , 1 64,770
1 998 3,829,320,660 1 00.00% 3,829,320,660 0.3410 1 0,743,545
1 999 3,939,71 0,595 1 00.00% 3,939,710,595 0.3410 1 1 ,001,347
2000 4,060, 1 72,186 1 00.00% 4,060, 1 72,186 0.3410 1 1 ,283,448
2001 4,215,690,368 100.00% 4,215,690,368 0.3485 1 2,236,930
2002 4,264,566,312 1 00.00% 4,264,566,312 0.3601 1 2,765,348
2003 4,307,725,666 1 00.00% 4,307,725,666 0.3986 14,1 1 0,533
2004 4,524,675,041 1 00.00% 4,524,675,041 0.3986 14,744,800
( 1 ) Assessed values shown above are before all exemptions.
1 23
TAX RATE DISTRIBUTION
General Total F.M. and Unlimited

Fiscal Operating Limited Constitutional Lateral Road Tax Road Total
Tax Roll Year Fund Tax Bonds Tax Levy Tax Bonds Tax Rate
1 995 1 996 0.2228 0.0585 0.2813 0.0550 0.0047 0.3410
1 996 1 997 0.2297 0.0569 0.2866 0.0500 0.0044 0.3410
1997 1 998 0.2361 0.0406 0.2767 0.0600 0.0043 0.3410
1 998 1 999 0.2361 0.0371 0.2732 0.0600 0.0078 0.3410
1 999 2000 0.251 1 0.0237 0.2748 0.0600 0.0062 0.3410
2000 2001 0.2561 0.0248 0.2809 0.0550 0.0051 0.3410
2001 2002 0.2578 0.0393 0.2971 0.0450 0.0064 0.3485
2002 2003 0.2764 0.0371 0.31 35 0.0400 0.0066 0.3601
2003 2004 0.3075 0.0362 0.3437 0.0450 0.0099 0.3986
2004 2005 0.3101 0.0346 0.3447 0.0450 0.0089 0.3986
Tax Rate Limitations

The Texas Constitution (Art. VIII. Sec. 9) imposes a limit of $.80 per $ 1 00 of assessed valuation fur
operating (General) fund purposes. In addition. a Farm-to-Market Road Tax (Art. 7048A. VACS) of
$.30 per $100 of assessed valuation was adopted in 1 955. Hence. a total tax rate of $1.10 is authorized
for the County.
1 24
PROPERTY TAX LEVIES AND COLL£CTIONS
Percent Percent of
Current of Levy Delinquent Total Total Tax
Total Tax Tax Collected Tax Tax Collections
Tax Roll Levy Collections Currently' Collections Collections to Tax Levy
1 995 $ 9,566,303 $ 9,255,753 96.75% $ 270,633 $ 9,526,386 99.58%
1996 9,882,352 9,598,704 97.13% 290,650 9,889,354 1 00.07%
1997 10,164,770 9,888,879 97.29% 279,603 10,168,482 100.04%
1 998 1 0,743,545 10,389,773 96.71 % 251,0 20 1 0,640,793 99.04%
1 999 1 1 ,001 ,347 1 0,629,356 96.62% 281 ,289 10,91 0,645 99.18%
2000 1 1 ,283,448 1 0,926,207 96.83% 308,318 1 1 ,234,525 99.57%
2001 12,236,930 1 1 ,816,256 96.56% 372,504 12,1 86,760 99.61%
2002 1 2,765,348 1 2,298,988 96.35% 358,925 1 2,657,913 99.16%
2003 14, 1 1 0,533 1 3,664,697 96.84% 396,595 14,061 ,492 99.65%
2004 14,744,800 14,613,351 99.1 1 % 414,156 1 5,027,507 1 01 .92%
SourCe; County of Victoria
1 25
DIRECT AND OVERLAPPING TAX RA TES
PER $100 OF ASSESSED VALUE
Victoria
County City County Victoria
Fiscal of of Navigation Junior Victoria Bloomington Industrial Nursery McFaddin
Year Victoria Victoria District College 1.5.0. 1.5.0. 1.5. 0. I.S.D. 1.8.0.
1996 .3410 .7100 .0132 .1 521 1 .4250 1 .3800 1 .4400 1 .3250 1.3800
1997 .341 0 .6900 .0132 .1 500 1 .4250 1 .3800 1 .4400 1 .3531 1 .5000
1 998 .3410 .7000 .0131 .1 422 1 .4260 1 .4400 1 .4400 1 .3850 1 .4400
1 999 .3410 .7000 .0123 .1413 1 .4860 1 .4660 1 .4400 1 .4100 1 .5000
2000 .341 0 .7000 .0418 .1 394 1 .4750 1 .5490 1 .4100 1 .3350 1 .5000
2001 .3410 .7000 .0414 .1 394 1 .5285 1 .5350 1 .6200 1 .3950 1 .3650
2002 .3485 .7000 .0401 . 1 394 1 5510 1.5600 1 .9894 1 .3850 1 .2400
2003 .3601 .7000 .0404 .1 394 1 .6535 1 .6630 1 .9387 1 .3700 1 .5000
2004 .3986 .7000 .0402 .1491 1 .5535 1 .6672 1 .8485 .8998 1 .5000
2005 .3986 .6900 .0386 .1461 1 .5535 1 .6433 1 .7361 1 .0250 1 .4500
1 26
Quail
W.C.I.D. W.C.I.D. V.C.D.D. V.C.D.D. Creek
#1 #2 #2 #3 M.U.D. Total
.3218 1 .0910 .08 77 .0700 . 1 8 77 9.9251
.3645 1 .0950 .0939 .0500 .191$ 1 0.0872
.6446 1 . 1 267 . 0972 .0504 .1964 10.4416
.6450 1 . 1710 . 0972 .0500 .1 885 1 0.6463
.6629 1 .1 229 .0972 .0500 . 1 90 0 1 0.6742
.6427 1 .0793 .0976 .0500 .1 900 10 .7249
.6551 1 .0880 .0979 .0500 .1900 1 1 .0544
.6262 1 .0332 . 1 1 03 .0500 .1 900 1 1 .2748
.6146 1 .0167 . 1 241 .0500 .1 937 10 .7580
.6162 .991 1 .1247 .0477 .1 896 1 0.6505
1 27
RA TlO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND
NET BONDED DEBT PER CAPITA
General Debt Service

Tax F is cal Estimated Assessed Obligation Funds
Roll Year Population Value Bonded Debt AvaHable
1 995 1 996 80,100 $ 3,374,254,1 10 $ 9,775,000 $ 520,592
1 996 1 997 81 ,600 3,602,838,570 8,540,000 604,362
1 997 1 998 82,650 3,694,072,420 1 1 ,970,000 641 ,793
1 998 1 999 82,087 3,829,320,660 1 1 ,200,000 708,224
1 999 2000 84,088 3,939,710,595 1 0,375,000 368,023
2000 2001 84,710 4,060, 1 72,186 1 4,485,000 25,218
2001 2002 84,710 4,215,690,368 1 3,575,000 144,701
2002 2003 85,396 4,264,566,312 1 2,71 6,000 1 51 ,540
2003 2004 85,853 4,307,725,666 1 1 ,555,000 2 1 2, 1 87
2004 2006 85,648 4,524,675,041 1 0,330,000 252,772
Source; County of Victoria
1 28
Net Ratio of Net Net
Bonded Bonded Debt to Bonded Debt
Debt Assessed Value per Capita
$ 9,254,408 0.27% $ 1 1 5.54
7,935,638 0.22% 91.25
1 1 ,328,207 0.31 % 1 37,06
1 0,491 ,776 0.27% 127.81
10,006,977 0.25% 1 1 9.01
1 4,459,762 0.36% 1 70.70
1 3,430,299 0.32% 158.54
12,563,460 0.29% 147.12
1 1 ,342,81 3 0.26% 1 32 . 1 2
10,077,228 0.22% 1 1 7,66
1 29
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2005
Assessed value of real property $ 4,524,675,041

(1 ) Debt limit percentage 25,00%
Legal debt limit 1 ,131 , 1 68,760
Amount of debt applicable to debt limit:

General obligation bonds $ 10,330,000
Less: Available in debt service funds 252,772 (10,on,228)
Legal debt margin $ 1 11 21 ,091 1532
(1 ) Established by Article 3, Section 52 of the Constitution of the State of Texas.
1 30
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 2005
Percent Dollar Amount

Net Debt Outstanding Applicable Applicable
Jurisdiction Date Amount to County to County
Direct Debt:
County of Victoria 12/31/2005 $ 1 0.017,228 1 00.00% $ 1 0.077.228
Overlapping Debt:
City of Victoria 9/30/2005 61 ,496.614 1 00.00% 61 ,496,614
Victoria County Navigation District 1 2/31 /2005 2,492.584 1 00.00% 2,492.584
Victoria Junior College District 8/3112005 5,799,271 1 00.00% 5,799,271
Victoria Independent School District 6/31/2005 29,420,316 1 00.00% 29.4 20.31 6
Industrial Independent School District 6/31/2005 9,036,421 25.46% 2,301 . 1 62
Victoria County Water Control and

Improvement District # 1 6/30/2005 1 ,091,661 1 00.00% 1 ,091 ,861
Victoria County Water Control and

Improvement District # 2 9/30/2005 384,142 100.00% 384,142
Total Overlapping Debt 109.723 ,209 1 02.985,970
Total Direct and Overlapping Debt $ 1 1 9,800,437 $ 1 1 3,063.198
Sources: 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 31
RA TlOS OF ANNUAL D£BT S£RVIC£ EXPENDITURES FOR GENERAL
BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Debt Service EXj;!enditures (1 )

Fiscal Interest General
Year Principal and Other Total Expenditures Ratio
1 996 $ 1 ,401 .578 $ 985.691 $ 2.387,275 $ 24.070,004 9.92%
1997 1 ,457.21 3 877,475 2,334.688 26,947.1 54 8.66%
1 998 965.000 582.198 1 ,547,198 28,209,166 5.48%
1 999 770,000 635.297 1 ,405.297 31 ,828.717 4.42%
2000 825,000 527.623 1 ,352,623 31,21 6.597 4.33%
2001 890,000 4134.672 1 ,374,672 34,606,988 3.97%
2002 910,000 603,231 1 ,513,231 34,262.640 4.42%
2003 975.000 676,912 1 .651,912 34,382,855 4.80%
2004 1 ,1 60.000 440,642 1 .600,642 32.838,967 4.87%
2005 1 ,225,000 41 7,093 1 ,642.093 35,1 38.496 4.67%
( 1 ) Includes General, Special Revenue. Debt Service. and Capilill Project Fund expenditures.
1 32
PRINCIPAL TAXPA YERS
2004 Tax Roll
Percent
Type of Assessed of
Name Business Valuation Valuation
Invista Chemical Manufacturer $ 529.755.990 1 1 .71%
Equistar Chemicals. LP Chemical Manufacturer 45,430,835 1 .00%
AEP Texas Central Company ElectriC Utility 51 ,986.940 1 .1 5%
Air Liquide America Corporation Chemical Manufacturer 35,160.810 0.78%
Southwestern Bell Telephone Company Telephone Utility 32,589,220 0.72%
H S Victoria, LP Real Estate 26,725.860 0.59%
Carlisle PlastiCS. Inc. PlastiCS Manufacturer 24,807.940 0.55%
Victoria Hospital. LLC Hos pital 20,784.630 0.46%
Union Gas Operating Company Gas Utility 1 6,452,550 0.36%
H E Butt Grocery Company Retail 1 5.496.300 �

$ 79911 91 ,075 17.66%
1 33
SALES TAX REVENUE
(1 ) (1 )
(1 ) Percel'lt of Equivalent of (1 )
Fiscal Total Ad Valorem Ad Valorem Per
Year Collected Tax Levy Tax Rate Capita
1 997 $ 4,074,422 41 .23% 0.1 406 $ 49.93
1 998 4,382,896 43.1 2% 0 . 1 470 53.03
1 999 4,503 , 1 01 41 .91% 0.1 429 54.86
2000 4,729,825 42.99% 0 . 1 466 56.25
2001 4,992,320 44.24% 0.1 509 58 93
2002 4,858,298 39.70% 0.1 384 57.20
2003 4,921,323 38.55% 0.1 388 57.63
2004 5,546,860 39.31% 0.1567 64.61
2005 5,883,458 39.90% 0.1 590 68.69
(1) Information for years prior to 1 997 is not readily available. Additional Information will be added until ten
years are disclosed.
1 34
SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS
December 31, 2006
Annual Surety
County Bond
Name Coml2ensation Amount
Donald R. Pozzi County Judge $ 82,929 $ 1 ,000
Chris Rivera Commissioner, Precinct # 1 62,0 1 2 6,000
Robert J. Nobles Commissioner, Precinct # 2 62,012 6,000
Gary Burns Commissioner, Precinct # 3 62,012 6,000
Wayne D. Dierlam Commissioner, Precinct # 4 62,01 2 6,000
Judy McAdams County Auditor 62,012 5,000
Cathy Bailey County Treasurer 62,012 250,000
Rena Scherer County Tax Assessor-Collector 62,012 1 00,000
Val D. Huvar County Clerk 62,01 2 1 00,000
M.P. "Dexter" Eaves Criminal District Attorney 7,010 5.000
Laura Weiser Judge, County Court-at-Law # 1 67,269 1 ,000
Juan Velasquez, III Judge, County Court-at-Law # 2 67,269 1 ,000
Cathy Stuart District Clerk 62,012 70,000

T Michael O'Connor County Sheriff 62,0 1 2 5,000
Annie Ramos Justice of the Peace # 1 36,210 5.000
Jack Milam Justice of the Peace # 2 36, 2 1 0 5,000
Beatriz Gonzalez Justice of the Peace # 3 62,01 2 5,000
Tom Eastland Justice of the Peace # 4 36,210 5,000
1 35
DEMOGRAPHIC STATISTICS
December 31, 2005
Average
Number of
Number of Persons per Unemployment
Population Households Household Rate
1 900 1 3,678 NfA N/A N/A
1 91 0 1 4,990 NIA N/A NIA
1 920 1 8,271 N/A NfA N/A
1930 20, 048 NIA N/A N/A
1 940 23, 74 1 NIA NIA NIA
1 950 31 , 24 1 NIA NfA NIA
1 960 46,475 N/A N/A NIA
1 970 53,766 NfA NIA NIA
1 980 68,807 23,700 2 .90 NIA
1 990 74, 36 1 26,269 2 . 83 5.20%
1 991 75,502 26,200 2. 88 4.90%
1 992 77,042 26,300 2.93 5.80%
1993 77, 1 71 26,700 2.89 5 . 1 0%
1 994 77 , 300 27,300 2.83 5.90%
1 995 79,992 28,200 2.84 6.01%
1 996 80,100 28,600 2.80 5.20%
1 997 81 ,600 28,800 2.83 3 .70%
1 998 82,650 28,800 2.87 4.10%
1 999 82,087 29,200 2.81 3.60%
2000 84,088 29,400 2 .86 3.50%
2001 84,710 30,400 2. 79 4.00%
2002 84 , 932 33 ,47 3 2 .54 5.20%
2003 85 , 395 33,473 2.55 5.20%
2004 85, 853 30,982 2.77 5.20%
2005 85 ,648 30,982 2.76 5.40%
Souroes: County of Viotoria, Victoria Economic Development Corporation, US Census Bureau, US Dept. of Labor
136
MISCELLANEOUS STATISTICAL DA TA
Dec!':Imber 31, 2005
Creation Created In 1836 from Mexican municipality named for

Mexican President Guadalupe Victoria.
Form of government A public corporation and political sUbdivision of the

State of Texas.
Area 892 square miles.
Altitude 200 feet above sea level.
County maintained roads, in miles

Pet. # 1 Pet. # 2 Pet. # 3 Pet. # 4 Total
Hard surface 96 1 18 1 32 80 426
Gravel 79 19 5 81 1 84
Total miles maintained 1 75 1 37 1 37 1 61 610
Motor vehicle registrations

Year Number
1 996 69,500
1997 73,736
1 998 75,236
1999 78.551
2000 77,169
2001 81 ,007
2002 82,472
2003 81 .773
2004 81 ,739
2005 85,407
Voting statistics
2004 2000 1 996 1 992 1 98s
Total number of registered voters 54,738 55, 1 30 48,447 37,176 38,390
Votes cast in presidential election 29.833 27. 582 24.256 26.037 24.353
Voter turnout percentage 55% 50% 50% 70% 63%
Number of County employees

2005 2004 2003 2002 2001
587 673 546 570 575
1 37
SINGLE AUDIT SECTION
HARRISON, WALDROP & UHEREK, L.L.P.
STEPHeN W. VAN MANEN, CPA
HAMILTOf'>' H. REDMON, c;;;P A
DeNNIS c. CIHAL CP'.....
HWU
E. e�l,.Ice WOOLSON. CPA
e�IC L. KUCER...., CPA
CLAYTON P. VAN PliiI.T.CPA
R06�IU W. SCHAA�, CP�
MeliSSA. M. TERRY, CPA
ce�IFIED PUBLIC ACCOUNTANTS
101 S, M...I�j, SUITE .o1oo VOICE; !361) 573-3255
YICTO�rA. f;X...:; 77901 -81 �2 FAX: (MII 57:l-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

of the Com missioners' Court
Cou nty of Victoria, Texas
We have audited the financial statements of the governmental activities, the buslnes5"\ype activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of County of Victoria, Texas (the 'County") as of and for the year ended December 31 , 2005,
which collectively comprise the County's basic financial statements and have issued our report thereon dated
May 5, 2006. 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. The financial statements of the C�izens
Medical Center and the Victoria County Child Welfare Board were not audited in accordance with
Government Auditing Standards.
Internal Control Over Financial Reponing
In planning and performing our audit, we conSidered the County's internal control over finanCial reporting
In order to determine our auditing procedures for the purpose of expressing our opinions on the financial
statements and not to provide an opinion on the Internal control over financial reporting. Our
consideration of the internal control over financial reporting would not necessarily disclose all matters in
the Internal control over financial reporting that might be material weaknesses. A materfal weakness Is a
condition in which the design or operation of one or more of the internal control components does not
reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over financial reporting and its operation that we consider to be
material weaknesses,
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 malerial 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 thai are reqUired to be
reported under Government Auditing Standards.
This report is intended solely for the information and use of the County Judge and members of
Commissioners' Court, 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.
�UWu,.,�1H.
May 5, 2006
MEMBERS OF
AMERIC.-.N INSTITUTe O� CERTIFIEO PUSllC ACCOUNTANTS
TEXAS SOCIeTY OF CERTlPIEO PUBLIC ACCOUNTANTS
HARRISON, WALDROP & UHEREK, L,L.P.
STePHEN w, VAN MANEN. CPA
I-IAM I �TON H. �eOMON, CPA
DENNIS C, CII.jAL, CPA
HWU
E. BRUCE wOOLSON. CPA
EFlIC l. r.:UCERA, CPA
C�A'r'TON P. VAN PELT, CPA
FJOBERT W. SCHAAR, CPA
MEliSSA M. TERRY, CP A
CERTI�IED PrJeLIC ACCOUNTANTS
101 S. MAIN, SUIT� 400 VOICE.: 1:;'61) ,!:i3-325S
VICTO�IA, TEXAS 77901-81.42 FAX: {361J 573-9531
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABI.E TO

EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER
COMPI.IANCE IN ACCORDANCe WITH OMB CIRCULAR A-i 33
The Honorable County J ud ge and Members

Complia nce
We have audited the com plianoe of the County of Victoria, Texas (the 'County"), wRh the types of compliance
requirements desoribed in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement that are applicable to each of its m ajor federal programs for the year ended Decem ber 31 , 2005.
The County's major federal programs are identified in the summary of auditor's results section of the
acoompanylng schedule of find ing s and questioned costs. Compliance with the requi re ments 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 ex pres s an opinio n on the County's compliance based o n our
audit.
We co nducted our audit of com pl iance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audrts contained In Government Auditing
Standards. iss ued by the Com ptroller General of the Un�ed States; and OMS Circular A·133. Audits of
States, Local Governments. and Non-Profrt Organizations. Those sta ndards and OMS Circular A-133
require th at we plan and perform the audit to obtain reasonable assurance about whether noncom pl iance
with the types Of compliance requirements referred to above that could have a direct and material effect on a
m ajor federal program occurred. An audit includes exa m ining, on a test basis, evide nce 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 reason able 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 oom plied , in al l material respects, with the requirements referred to above t hat are
applicable to each of its major federal programs for the year ended December 31, 2005.
lD.lemal Control Over Compl iance
The management of the County is responsible for establishing and maintaining effeCb\le Interna l control oller
compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. I n
planning and performing our audit. we conSidered the County's internal control over compliance with
req u irem ents that could have a direct and malerial effect on a major federal program in order to determ ine
our auditing procedures for the purpose of expressing an opin io n on compliance and to tesl and report on
internal control over compliance In accordance with OMB Circular A-133.
MEMBEIiIS OF
AM�I:!ICAN INSTITUTE OF ceRTIFIED P UBLIC ACCOIJNTA.NTS
TEXAS SOCIETY OF ceRTIFI�O PUBL IC ACCOUNTANTS
Our consideration of the internal control over compliance would not necessarily disclo$e all matters in the
Internal control that might be material weaknesses. A material weakness is a condition in which the design
or operation of one or more of the internal conll'ol components does not reduce to a relatively low level the
risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants that would
be material in relation to a major federal program being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over compliance and its operation that we consider to be material
weaknesses.
This report is intended solely for the infonnatlon and use of the County Judge and members of
Commissioners' Court, management, and federal and state awarding agencies, and is not intended to be
and should not be used by anyone other than these specified parties.
May 5, 2006
140
SCHEDULE OF EXPENDITURES OF FEDERAL AND S TA TE AWARDS
Federal Agency or
CFDA Pass-through
Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures
FEDERAL EXPENDITURES
U, S. Department of Transportation
Airport Improvement Grant 20.106 3-48-0219-1 8-04 $ 752,060
Airport Improvement Grant 20.106 3-48-021 9-1 7-03 1 .009,496
Total U.S. Department of Transportation 1,761.556
U. S, Dep artment of Homeland Security

State Homeland Security Program 97.004 2004-GE-T4-001 5 64,900
State Homeland Security LETPP 97.074 2004-GE-T4-0015 1 4,998
Total U.S. Department of Ho m eland Security ZIl,698
U. S. Department of Justice
Passed Through the Office of Governor of T(lxas, Criminal Justice Division
Victims Coordinator Uason Grant 1 6.575 04G03714 22,787
Victims Coordinator Llason Grant 16.575 06-02042 1 8,801
Victims Coordinator Uason Grant 1 6.575 04G03821 25,31 1
Victims Coordinator Liason Grant 1 6.575 06-02051 15,293
Other Viotims Assistance Grant 1 6.575 04003726 31 ,735
Other Victims Assistance Grant 1 6.575 06-02864 1 7,648
Juvenile Accountability Incentive Block Grant 1 6.523 JB4>3-J20-1 5526-05 4,722
Total U.S. Depa rtment of Justice 1 36,297
U, S. Department of Agriculture
Passed Through T(lxas Department of State Health SelVlces
Special Supplemental Nutrition Program for Wom en,
Infants, and Children 1 0.557 74600244524>6 1 96,809
Special Supplemental Nutr�lon Program for Women,
Infants, and Ch ild ren 1 0.557 7460024452-05 552,01 1
Total Texas Department of Stale Health Se rvices 748,820
Passed Through Texes Department of Human SelV/ces

School Breakfast Program 10.553 TX235-2005 22,640
National School Lunch Program 1 0.555 TX235-2005 42,094
Total Texas Department of Human Services 64 ,934
Total U.S. Department of Agriculture 813,754
(co ntinued )
1 41
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE A WARDS
Federal Agency or
CFDA Pass-through
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 7460024452-06 $ 97,668
BNS-Public Health Nutrition 93.991 7460024452-05-07 18.794
Immunization Grant 93.268 7460024462-05-01 84,062
Immunization Grant 93.268 7460024452-06 40.764
lotal Texas Department of State Health Services 241,288
Passed Through Texas Department of Health in Bexar County

Ryan White Title II - 2005 93.91 7 N/A 44,728
Ryan White Title I I 2006
- 93.91 7 N/A 1 1 6.170
Total Texas Department of Health in Bexar County 160,898
Passad Through Texas Juvenila Probation Commission

Federal Foster Care Grant Title IV-E 93 658
. TJPC-E-05-235 142,733
Passed Through Texas Department of Protective and

Regulatory Services
Title IV-E Legal Services 93.658 2005085080 39.180
Total U.S. Department of Health and Human ServiCes 584.099
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 67,962
Passed Tilrough Texas Department of Health in Bexar County

HOPWA - 2005 1 4.241 N/A 4, 730
HOPWA - 2006 1 4.241 N/A 64,438
Total Texas Department of Health in Bexar County 69,168
Total U.S. Department of Housing and Urban Development 237,130
U. $. Department of Commerce
Passed Through National Oceanic & Atmospheric Adm.
NOAA Coastal Impact Grant 1 1 .419 NA170Z218a 25,460
(continued)
1 42
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
Federal Agency or
CFDA Pass-through
Federal Grantor/Pass-Through GrantorlProgram Title Number Number Expenditures
FEDERAL EXPENDITURES · (Continued)
U. S, Elections Asslst<lnce Commission

Passed Through Texas Secretary of State - Elections Division
County E ducation Fund 39.01 1 77530 $ 993
Voting System Replacement 39.01 1 77833 1 1 4,920
Voting System Accessibility 90.401 78965 1 08,000
General HAVA Compliance 90.401 78710 448,881
Total U.S. Elections ASSista nce Commission 672,794
TOTAL FEDERAL EXPENDITURES 4,31 0,988
STATE EXPENDITURES
Texas Department of Health

OPHP/LPHS N/A 7460024452-05H04 1 29,986
OPHP/LPHS N/A 7460024452-06-02A 37,397
TB Control N/A 7460024452-05 27,493
TB Control N/A 7460024452-{)6 1 4,356
209,232
Passed Through Texas Department of Health in Bexar County

HIV Treatment, Health and Social Services - 2005 N/A N/A 16,973
HIV Treatment, Health and Soc ial Services 2006
- N/A N/A 32,289
Total Texas Department of Health In Bexar County 51 ,262
Total Texas Department of Health 260,494
Texas Juvenile Probation Commission

State Aid N/A TJPC-A-2006-235 39,680
State Aid N/A TJPC-A-2005-235 55, 550
Progressive Santions J PO N/A TJPC-F-2006-235 39,210
Progressive Santlons JPO N/A TJPC-F-200f).235 54,894
Progressive Sanlions 1 23 Program N/A TJPC-G-2006-235 1 2,755
Progressive San tlons 123 Program N/A TJPC-G·2005-235 1 7,854
Community Corrections ASSistance Progra m N/A TJPC-Y-2006.235 92,075
Community C orrections Assistance Program N/A TJPC-Y-2005-235 1 28,906
Salary Adjustment N/A TJPC-Z-2006-Z35 42,750
Salary Adjustment N/A TJPC-Z-2005·235 47,106
Total Texas Juvenile Probat io n Commission 530,780
OffJ..e of the Attorney Gener<ll of Texas

Texas Vine Grant N/A 05-00644 1 7,253
(continued)
1 43
SCHEDULE OF EXPENDITURES OF FEDERAL AND STA TE AWARDS
For th& year ended Decembe( 31, 2005
Federal Agency or
CFDA Pass-through
STATE EXPENDITURES - (Continued)
Texas Commission on Environmental Quality

Passed Through Golden Crescent R&glonal Planning Commission
Solid Waste Grant N/A 04-17-G03 $ 26.133
Texas Department of PubliC Safety

Electronic Traffle Conviction Reporting N/A CD04482-ILC152 5.000
Texas Task Force on Indigent Defense

Indigent Defense N/A N/A 49,6 1 3
TOTAL STATE EXPENDITURES 889,273
TOTAL FEDERAL AND STATE EXPENDITURES $ $,2001261
See accompanying notes to sChedule of expenditures of federal and state awards.
1 44
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE: AWARDS
For the .year ended December 31, 2005
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 OMS 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
financial statements.
145
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 financia l reporting:

• Material weakness(es) Identified? D yes 181 no
• Reportable condition(s) identified
that are not considered to be
material weaknesses? D yes [8J none reported
Noncompliance material to financia l

statements noted? D yes [8J no
Federal AW;;Jrds
Internal control over major programs:

• Material weakness(es) identified? D yes [8J no
• Reportable condition(s) identified
that are not considered to be
material weaknesses? D yes [8J none reported
Type of auditor's report issued on compliance for major programs: Qualified
Any aud� findings disclosed that are

required to be reported in accordance
wnh section 51 0(a) of Circular A-1 33? D yes 181 110
Identification of major programs;
�Numbar(s) Name of Feder<J/ Program or Cluster

.?-O .1.!?.!5 . .
.. . . ...______ ' . ' _. ___
.... .. _______ ", t!r
.. . !.?,,�.�_fl1_I?!!! .§.r.!!�,t. ,
.�r:t.!f!1.P
_____ .. , .. _ __ __._ " " __ _
.. .. . , ._______. . . . ... ..... ......_ . . __ _ ._ " " " "" .
�2:�]. __ ___. _.... .... _ ___ " . .

Help �!!1�ri£<l_I!?.!E:l_�?! g!�.!.___ ' '' . .. _ ______ _ "
_ __ _.... ___ ___ " " __.___ . ...______ _ , , " .. ... _
N/A ___-'
.""'''.•�� ..,..."",.." .
,___._.. _ ______ . _ ._ Texas Juvenile Probation
••, ........."."'.� ........_ Commission-2005/2006-235
, ,,"""."___,. ___.___ _ ___ _
.•._,_.,�.,,,,",""'�___,__,',,'" .._....... '".�._.""""'M'".___ ... ,.'''..''''·,_·_. __····_· ·___.�'.n.""'�., _
Doliar threshold used to distinguish

between type A and type B programs: $300,000
Auditee qualified as low-risk auditee? D yes [8J no
Section 11 - FinanCial Statement Findings
None noted
Section 111 - Federal Award Findings and Questioned Costs
None noted
1 46
SCHEDULE OF PRIOR AUDIT FINDINGS
For the year ended D@cember 31, 2005
U.S. Department of Homeland Security
FEMA Unmet Needs CFDA 97.039

-
2004-1 Grant No . FEMA 1257 - DR
Condition: The finding was a reportable condition stating that the grant reimbursement requests
included retain age amounts owed to the contractor but were not immediately paid to the contractor in
accordance with the terms of the construction agreement.
Rfilcommendation: The auditor recommended that the responsible County official be reminded of the
procedures in place to ensure that cash management procedures are followed .
Currant SlaWs: Cash management procedures were complied with as of the report date of this 2005
fiscal year audit.
1 47

2005 Victoria County CAFR

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2005 Victoria County CAFR

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COUNTY OF VICTORIA, TEXAS

COMPREHENSIVE ANNUAL FINANCIAL REPORT

Prepared by: County Auditor's Office

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

Basic Financial Statements

Government-Wide Financial Statements

Fund Financial Statements

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

Required Supplementary Information

Schedule of Revenues, Expenditures, and Changes in Fund Balance

Notes to Required Supplementary Information . . ..... .. ...... ............ ...................... .

Combining and Individual Fund Statements and Schedules

FINANCIAL SECTION - (Continued)

Combining a nd Indlvldyal Fund Statements and Schedules - (Continued)

Governmental Funds - (Continued)

Nonmajor Special Revenue Funds .......................................................................... ...... ...... 74

Nonmajor Debt Service Funds .......................... ............................................ ....................... 96

Individual Statements and Schedules

Nonmajor Speoial Revenue Funds

FINANCIAL SECTION - (Continued)

Combining and Individual Fund Statements and Sohedules - (Continued)

Governmental Funds, (Continued)

STATISTICAL SeCTION (UNAUDITED)

General Governmental Expenditures by Function - Last Ten Fiscal

Estimated Actual Value and Assessed Value of Taxable Property •

Last Ten Fiscal Years ..... .. .. ....... ....................... . ...... . ......

Ratio ofNet General Bonded Debt to Assessed Value and Net

Computation of Direct and Overlapping Debt ....................................................................................... 131

STATISTICAL SECTION (UNAUDITED) - (Continued)

Ratios of Annual Debt Service Expenditures for General Bonded

Principal Taxpayers .... .. . . ... . .... ..... ........ . . .. ......................................................................................

Sales Tax Revenue..................................................................................................... ........... .. .............. 1 34

Demographic Statistics .......................................................................................................................... 136

SINGLE AUDIT SECTION

Report on Internal Control Over Financial Reporting and on

Report on Compliance With Requirements Applicable to Each Major

Notes to Schedule of Expenditures of Federal and State Awards........................................................ 145

115 N, Bridge, Room 122 Tel: (361)6764461

June 12, 2006

Honorable District Judges

PROFILE OF VICTORIA COUNTY

FACTORS AFFECTING FINANCIAL CONDITION

AWARDS AND ACKNOWLEDGEMENTS

A Certificate of Achievement for Excellence in Financial

Val D. Huvar County Clerk

Cathy Bailey County Treasurer

Annie Ramos Jusllce of the Peace # 1

INDEPENDENT AUDITOR'S RI:PORT

The Honorable County Judge and Members

OVERVIEW OF THE FINANCIAL STATEMENTS

Organization and Flow of Financial Section Information

Management's Discussion and Analysis

Government-wide Financial Fund Financial Statements Component Unit Financial

Peaes 1 3 10 16 Peaes 1 7 to 26 PaQes 27 to 29

Notes to I'lnaneial Statements

The government-wide financial statements can be found on pages 1 3-16 of th is report.

County of VIc:tQ[I!!. T!xas

Count� of Victoria, Texas

Total Revenues 36,849,739 36,027,278 3,973,689 3,473,725 40,823,428 39,501,003

General governmental 1 4 , 1 52,292 1 3,237,845 1 4 , 1 52,292 1 3,237,845

Total Expenses 33,692,170 31 ,052,471 2,850,209 2,875,359 36,542,379 33,927,830

Change in net assets before special

SpeCial item-loss on refunding