2015 Comprehensive Annual Financial ReportCITY OF
14 ic
TEXAS
U.4a F01(5
ic
T e x a s
B/u�Skies Cloldea O��nrtun�ries
Comprehensive
Annual
Financial Report
Year Ended September 30, 2015
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2015
ISSUED BY:
DEPARTMENT OF FINANCE
u�o
ic4i 91 FIOI(5
T E X A S
B/r�Skle, 40AM OmerfWAe,
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2015
TABLE OF CONTENTS
INTRODUCTORY SECTION
Exhibit Page
Letterof Transmittal................................................................................................................................
i-viii
GFOA Certificate of Achievement...........................................................................................................
ix
OrganizationalChart...............................................................................................................................
x
Listof Principal Officials..........................................................................................................................
xi
FINANCIAL SECTION
IndependentAuditor's Report.................................................................................................................
1-3
Management's Discussion and Analysis (Required Supplementary Information) ..................................
4-14
BASIC FINANCIAL STATEMENTS:
Statement of Net Position...............................................................................................................A-1
15
Statement of Activities....................................................................................................................
A-2
16
Balance Sheet - Governmental Funds...........................................................................................A-3
17
Reconciliation of the Governmental Funds Balance Sheet to the Statement
ofNet Position..............................................................................................................................A-4
18
Statement of Revenues, Expenditures and Changes in Fund Balances -
GovernmentalFunds....................................................................................................................A-5
19
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of the Governmental Funds to the Statement of Activities............................................A-6
20
Statement of Fund Net Position - Proprietary Funds......................................................................A-7
21-22
Statement of Revenues, Expenses and Changes in Fund Net Position -
ProprietaryFunds.........................................................................................................................A-8
23
Statement of Cash Flows - Proprietary Funds................................................................................A-9
24-25
Statement of Fiduciary Assets and Liabilities................................................................................A-10
26
Notes to the Financial Statements.....................................................................................................
27-67
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule - General Fund..........................................................................B-1
68
Notes to the Required Supplementary Information...........................................................................
69
Schedule of Changes in Net Pension Liability and Related Ratios —
Texas Municipal Retirement System............................................................................................B-2
70
Schedule of Contributions — Texas Municipal Retirement System .................................................
B-3
71
Schedule of Changes in Net Pension Liability and Related Ratios —
Wichita Falls Firemen's Relief and Retirement Fund...................................................................B-4
72
Schedule of Contributions — Wichita Falls Firemen's Relief and
RetirementFund...........................................................................................................................B-5
73
Wichita Falls Retiree Health Care Plan — Analysis of Funding Progress ........................................
B-6
74
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2015
TABLE OF CONTENTS (CONT'D.)
Exhibit
Page
COMBINING FINANCIAL STATEMENTS:
Nonmajor Governmental Funds:
CombiningBalance Sheet.........................................................................................................C-1
75
Combining Statement of Revenues, Expenditures and Changes in Fund Balances.................C-2
76
Budgetary Comparison Schedule — Community Development Block Grant Fund ....................C-3
77
Budgetary Comparison Schedule — Section 8 Housing Fund...................................................C-4
78
Budgetary Comparison Schedule — Home Investment Partnership Agreement Fund
..............C-5
79
Budgetary Comparison Schedule — Hotel/Motel Tax Fund.......................................................C-6
80
Budgetary Comparison Schedule — Golf Fund..........................................................................C-7
81
Budgetary Comparison Schedule — MPEC Fund......................................................................C-8
82
Budgetary Comparison Schedule — Debt Service Fund............................................................C-9
83
Nonmajor Enterprise Funds:
Combining Statement of Net Position........................................................................................D-1
84
Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................D-2
85
Combining Statement of Cash Flows........................................................................................D-3
86-87
Internal Service Funds:
Combining Statement of Net Position........................................................................................
E-1
88
Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................
E-2
89
Combining Statement of Cash Flows........................................................................................
E-3
90
Agency Fund:
Statement of Changes in Assets and Liabilities........................................................................
F-1
91
Component Units:
Combining Statement of Net Position........................................................................................G-1
92
Combining Statement of Activities.............................................................................................G-2
93
SUPPORTING SCHEDULES:
Combined Schedule of Bonded Debt and Interest Maturities.........................................................H-1
94
Combined Schedule of Bonds Payable..........................................................................................H-2
95-100
Debt Service Coverage — Revenue Bonds.....................................................................................H-3
101
Capital Assets Used in the Operation of Governmental Funds -
Schedule By Function and Activity...............................................................................................H-4
102
Capital Assets Used in the Operation of Governmental Funds -
Schedule of Changes By Function and Activity............................................................................H-5
103
Regional Airport Fund — Capital Assets and Accumulated Depreciation........................................H-6
104
Kickapoo Airport Fund — Capital Assets and Accumulated Depreciation .......................................
H-7
105
Transit Fund — Capital Assets and Accumulated Depreciation......................................................H-8
106
Stormwater Drainage Fund - Capital Assets and Accumulated Depreciation................................H-9
107
Sanitation Fund — Capital Assets and Accumulated Depreciation................................................H-10
108
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2015
TABLE OF CONTENTS (CONT'D.)
Exhibit
Water and Sewer Fund — Capital Assets and Accumulated Depreciation ..................................... H-11
Waterpark Fund — Capital Assets and Accumulated Depreciation ................................................ H-12
Fleet Maintenance Fund — Capital Assets and Accumulated Depreciation...................................H-13
Duplicating Services Fund — Capital Assets and Accumulated Depreciation................................H-14
Information Technology Fund — Capital Assets and Accumulated Depreciation ...........................H-15
Wichita Falls Economic Development Corporation — Capital Assets and
Accumulated Depreciation...........................................................................................................H-16
STATISTICAL SECTION (UNAUDITED)
Net Position By Component — Last Ten Fiscal Years.....................................................................
1-1
Changes in Net Position — Last Ten Fiscal Years..........................................................................
1-2
Fund Balances, Governmental Funds — Last Ten Fiscal Years .....................................................
1-3
Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years ..................................
1-4
Tax Revenues By Source, Governmental Funds — Last Ten Fiscal Years ....................................
1-5
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years ....................
1-6
Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ............................................
1-7
Principal Property Taxpayers — Current Year and Nine Years Ago ................................................
1-8
Property Tax Levies and Collections — Last Ten Fiscal Years .......................................................
1-9
Ratios of Outstanding Debt by Type — Last Ten Fiscal Years .......................................................
1-10
Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years .........................................
1-11
Direct and Overlapping Governmental Activities Debt.................................................................
1-12
Computation of Legal Debt Margin — Last Ten Fiscal Years.........................................................
1-13
Pledged Revenue Coverage — Water and Sewer Revenue Bonds —
LastTen Fiscal Years..................................................................................................................
1-14
Demographic Statistics — Last Ten Fiscal Years...........................................................................
1-15
Principal Employers — Current Year and Ten Years Ago..............................................................
1-16
Full -Time Equivalent City Government Employees by Function/Program —
LastTen Fiscal Years..................................................................................................................
1-17
Operating Indicators by Function/Program — Last Ten Fiscal Years .............................................
1-18
Capital Asset Statistics by Function/Program — Last Ten Fiscal Years .........................................
1-19
Graphics:
Cash and Investments..........................................................
Total Bonds Payable............................................................
General Obligation Bonds Payable ......................................
Revenue Bonds Payable ......................................................
General Fund Equity............................................................
Comparison of Tax Levy and Collections ............................
Revenues by Source — FYE 9/30/14....................................
Expenditures by Function — FYE 9/30/14.............................
General Governmental Revenues (General Fund Only) ......
General Governmental Expenditures (General Fund Only)
Page
109
110
111
112
113
114
115
116-117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
Ur-
ic it, ra
T E X A S
B/u�Skies Cfo-/der� Oyyo�'ti�t��ies
Introductory Section
uic.441 To �5'
T E X A S
ai�sk;� �ord� oyy�tu�r;�
March 30, 2016
The Honorable Mayor,
Members of the City Council,
City Manager and Citizens of Wichita Falls, Texas
FINANCE DEPARTMENT
I am pleased to submit herewith, the Comprehensive Annual Financial Report (CAFR) of the City of Wichita
Falls, Texas for the fiscal year ended September 30, 2015. The purpose of this report is to provide the City
Council, City Manager, citizens and other interested parties with detailed information concerning the financial
condition of the City of Wichita Falls. In addition, this report provides assurance that the City presents fairly its
financial position as verified by independent auditors.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
The CAFR of the City of Wichita Falls, Texas, for the year ended September 30, 2015, was prepared according
to accounting principles as promulgated by the Governmental Accounting Standards Board (GASB). The
financial statements and related notes have been audited by the independent audit firm of Edgin, Parkman,
Fleming & Fleming, PC, whose report is included herein.
Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation,
including all disclosures, rests with the City. We believe the data, as presented, are accurate in all material
aspects; that they are presented in a manner designed to fairly set forth the financial position and results of
operation of the City as measured by the financial activity of its various funds; and that all disclosures necessary
to enable the reader to gain understanding of the City's financial activities have been included.
The CAFR continues to present financial data using the reporting model promulgated by GASB Statement No.
34. This reporting model changed governmental financial reporting by incorporating government -wide financial
statements. The Finance Department believes that this presentation provides better information to users of the
report, and it requires management to provide a narrative introduction, overview and analysis to accompany the
basic financial statements in the form of a Management's Discussion and Analysis (MD&A). The MD&A can
be found immediately following the independent auditors' report and is designed to complement this transmittal
letter and should be read in conjunction with it.
GENERAL INFORMATION - CITY OF WICHITA FALLS, TEXAS
The City of Wichita Falls is located in the south-central United States in north -central Texas. Wichita Falls is
linked to major southwestern, western, and mid -western cities by Interstate 44, U.S. Highways 82, 281, 277, 287,
and Texas State Route 79. The city is approximately 130 miles northwest of the Dallas/Fort Worth Metroplex,
15 miles from the Red River that marks the Texas/Oklahoma border, and 125 miles south of Oklahoma City.
The city is located in the cross -timbers area of the gently rolling north -central plains and is dissected by the
Wichita River. Due to the city's geographic location, Wichita Falls serves as a regional economic hub for north
Texas and south central Oklahoma. Wichita Falls is the county seat of Wichita County and the major population
center in North Texas.
The economy is based on mineral production, retail trade, manufacturing, agribusiness, and government
installations. Principal sources of agricultural income include cattle, cotton and wheat. Wichita Falls is home to
Sheppard Air Force Base, which operates the Euro-NATO jet pilot training program. The city's major university
is Midwestern State University. The city is also home to a branch of Vernon College, a fully accredited
community college. Principal manufacturers within the area include metal fabrication, industrial and commercial
equipment, engine components, flexible packaging, and assorted plastic, glass and fiberglass. North Texas State
Hospital -Wichita Falls Branch, Midwestern State University, James V. Allred Prison and Sheppard Air Force
Base are also large employers located within the city. The City operates a Multi -Purpose Events Center, which
includes a coliseum, exhibit hall, and an agricultural arena/show barn. The 2014 population for Wichita Falls, as
estimated by the City, is 105,114, an increase of 0.54% from the 2010 Census estimates, and an increase of
0.88% over the 2000 population.
CITY SERVICES AND ORGANIZATION OF THE GOVERNMENT
The City of Wichita Falls utilizes a Council -Manager form of government and is organized under the
Constitution and Laws of the State of Texas. The City Council is comprised of five members elected from
separate districts, and a Mayor and one member elected by the citizens at -large. The City Council appoints the
City Manager, City Attorney, Municipal Court Judge and City Clerk. All other staff members work under the
direction of the City Manager.
The City provides on a continuing basis a full range of basic municipal services including: public safety (police,
fire and building inspection); highways, streets and engineering; health and welfare services; parks, recreation
and cemeteries; library services; public improvements; planning and zoning; and general administrative services.
In addition, the City provides water, sewer, sanitation and transportation services for its citizens.
ECONOMIC CONDITION AND ACTIVITY
Over the past few decades, Wichita Falls has successfully diversified its economy to include new manufacturing,
government, medical services, retail and service related commerce. This diversification is in addition to the more
typical North Texas industries of agriculture, and oil and gas production. The Wichita Falls MSA houses a
robust manufacturing sector, with many companies having employment in excess of 100 persons. This sector of
the economy generates almost $271 million in annual payroll, representing approximately 9% of total
employment within the city, and accounts for more than $1.2 billion in gross sales annually. Wichita Falls is also
a nexus of international investment. Three area manufacturing facilities are foreign -owned, representing France,
Sweden, and Germany.
The city is the economic hub of a 60-mile radius trade area, populated by an estimated 379,400 people. Of that
population, an estimated 240,000 are currently in the workforce and look to Wichita Falls for their employment,
shopping, entertainment, educational, cultural and health care needs. Being the largest community within 100
miles, Wichita Falls boasts a larger retail trade than a community its size would normally enjoy. Many national
retailers and restaurants have found Wichita Falls to be a superb location.
In May 2015, the City of Wichita Falls experienced significant rainfall to the point that flooding occurred.
However, a positive result from the excessive rainfall was that the City's lakes were filled to capacity and drought
restrictions on outside irrigation and water usage were removed. The City did incur flood damages as a result of
the excessive rainfall and FEMA issued a disaster declaration, which allowed the City to apply for reimbursement
for debris removal, protective and emergency response, infrastructure damage, and administrative costs.
From 2009 to 2011, the national recession considerably affected the local economy. During that time, four local
manufacturing companies closed, eliminating almost 1,200 jobs and several other companies reduced their
workforce by 10 to 20 percent. In response to this downturn in the local economy, efforts were made to nearly
double the economic development marketing campaigns and develop a community -wide branding, marketing and
public relations campaign. Additionally, the City and the Wichita Falls Economic Development Corporation
have been aggressive over the last few years in granting economic development incentives for primary job
creation. Since 2010, 26 projects have been approved for incentive funding with the potential for creating
and/or retaining over 2,300 jobs. Several of these projects have invested in the local economy resulting in the
addition or retention of hundreds of jobs. Others are still in the early phases of their expansion plans and the
results remain to be seen.
11
Although no major plant developments were announced during the 2014-15 fiscal year, several industries made
investments in the local economy to create and/or retain hundreds of primary jobs. The projects that occurred
over the 2014-15 fiscal year are outlined below:
Alcoa Power & Propulsion — Wichita Falls Casting Plant, Naturally Engineered Water Treatment
(NEWT) Project a forgivable loan up to $1,200,000 for the construction and operation of a reverse
osmosis and natural water treatment system. Alcoa proposes to spend approximately $2,400,000 on a
prototype technology to reduce potable water usage at its plant. This project is expected to reduce
potable water consumption by 65%, reducing consumption to approximately 20 million gallons a year.
Incentives are for the retention of 600 local employees for the 18 month loan term.
Pratt & Whitney Technology Enhancement Project — technology investment of approximately
$2,893,000 at the local plant for the purchase of three technology enhancement items — (1) 3D
Measuring Equipment and Software; (2) Direct Metal Laser Sintering Equipment; and (3) Interactive
Machining Equipment. Support for this endeavor by the Wichita Falls Economic Development
Corporation is in the form of a no interest, forgivable loan of $1,815,000 for the purchase of the
technology enhancements mentioned above. The loan is forgivable over a period of seven years should
the company maintain 120 jobs as part of the agreement.
American Fuel Cell and Coated Fabric's (AMFUEL) Project — AMFUEL, is owned by Zodiac
Aerospace, a French company headquartered in Paris, France. Crosslake Investments, a Seattle based
investment firm recently invested in AMFUEL's operation, and intends to establish an operation at the
old Delphi facility in Wichita Falls. AMFUEL manufactures fuel tanks for the aerospace industry,
primarily commercial/military/general aviation aircraft and helicopters. Additionally, AMFUEL makes
liquid storage containers for industrial chemicals, water, sewage, and ground fuel storage. This
operation is approximately $30 million per year. AMFUEL expects to create and retain 280 employees
over a ten year period. The WFEDC incentives include a no interest, forgivable loan of $800,000 for the
purchase of an autoclave, valued at $1.2 million, that is used in the manufacturing process, cash for jobs
in the amount of $844,750 for creating and retaining 280 jobs in Wichita Falls, and a grant up to a
maximum of $366,000 for skills development training should a grant application to the Governor's
Economic Development and Tourism Department not be approved.
Cobra Kai Flight Simulator Project — Cobra Kai Flight Academy expanded its flight school career center
in Wichita Falls with an additional investment of approximately $484,000 in the purchase of hangar
space, airplanes and a flight simulator. Cobra Kai expects to employ an additional 5 employees over a
five year period, adding to its current labor force of 8 employees. The WFEDC incentives are based on:
No Interest, Forgivable Loan of $140,000 for the purchase of a Redbird Flight Simulator. The loan is
forgivable over a period of five years should the company create and maintain the additional jobs as
stipulated in the agreement.
Lone Star Milk Producers Recruitment Project — incentives for Lone Star Milk Producers and related
entities in the amount of up to $116,000 of costs for expenditures for the retention and recruitment of
primary jobs at the company headquarters facility in Wichita Falls. Lone Star Milk Producers (LSMP)
was headquartered in Jack County, Texas and is a farmer owned dairy cooperative. It is ranked as the
12th largest dairy cooperative in the United States based on the annual survey in Hoard's Dairyman, and
is ranked as the 64th largest cooperative in the United States according to the National Cooperative
Bank. LSMP desires relocated their main headquarters operations to Wichita Falls with staffing of
twenty (20) full time positions. The incentives are based on cash for jobs in the amount of $96,000 for
twenty new positions to be created and retained with up to $20,000 in additional incentives for high
paying positions.
Eagle Railcar Services Expansion Project — up to $928,800 for creation of 64 new jobs, training
expenses, and a forgivable loan to purchase a sponge jet robot blaster, a global finish spray booth, a
1,500 cfin air compressor, and related equipment at the company's facility located at 4501 Allendale
Road. Eagle Railcar Services is one of the nation's leading independent providers of rail car repair
services with facilities in Cairo, Ohio, Elkhart and Roscoe, Texas, and its newest location in Wichita
Falls. All of the locations provide general maintenance and repair, cleaning, painting and lining, wreck
iii
damage repair and tank car requalification. Eagle Railcar Services seeks to expand its operations in
Wichita Falls with an additional investment of more than $4,000,000 in land, capital improvements and
machinery and equipment. Eagle expects to employ an additional 64 employees over a three year
period, adding to its current labor force of 47 employees. The WFEDC incentives are based on cash for
new positions up to $352,000 for the creation of at least 64 new jobs; a skills development training
reimbursement up to $76,800 if a Texas Workforce Commission Skills Development Fund grant is not
obtained; and a no interest, forgivable loan of $500,000 for the purchase of a sponge jet robot blaster,
global finish spray booth, an air compressor and related equipment. The loan is forgivable over a period
of five years should the company create and maintain the additional jobs as stipulated in the agreement.
4A Economic Development Sales tax funds have also been used to assist with activities of the Military Affairs
Committee, a regional organization established a few years ago to work directly with Sheppard Air Force Base
(SAFB), Air Education and Training Command, the Chief of Staff for the Air Force, and our Congressional,
State and Local elected officials. This Committee was formed to increase the value of SAFB, strengthen
community development and build a stronger economy. The City, SAF13 and surrounding communities have
also conducted a Joint Land Use Study (JLUS), which was a cooperative planning initiative to promote
compatible community growth that supports military training and operational missions. The inter jurisdictional
partnership resulted in the identification of actions that can be taken jointly by the community and installation to
promote compatible development and address current and future encroachment. The goal of compatibility
planning is to promote an environment where both entities (military and civilian) can coexist successfully.
Implementation of those actions began in 2015. Also, scheduled for fall 2016 is a proposed Transportation and
Perimeter Security Project for Sheppard Air Force Base is the use of $1,250,000 of 4A Sales Tax Funds to
provide improved security at the front gate entrance to minimize potential terrorist threat activity and better
position SAFB for any future Base Alignment and Closure processes that the feddral government may consider.
Small business manufacturing represents the fastest growing sector of the economy in terms of the number of new
businesses. With many area manufacturers having less than 50 employees, small manufacturers represent a vital
link in the economy. Companies in food, beverage and clothing are flourishing in Wichita County.
The value of construction permits is also an indication of economic activity in the community. Residential
permits totaled $27,308,996 during the 2014-15 fiscal year, which is a decrease of $12,536,683, or 3 1 % from the
prior year. The value of commercial construction permits totaled $80,046,046, which is an increase of
$18,918,149, or of 31 % from the prior fiscal year. However, the prior year figures were the highest in both
categories for the last five fiscal years. Additionally, several commercial construction permits issued were above
$1 million in value which directly impacts local construction contractors, and often times results in additional
secondary jobs. Those permits include:
• United Regional Hospital Addition — a total of 30,918 sq. ft. with an estimated value of $9,636,868.
• Grace Church Addition — a total of 11,334 sq. ft. with an estimated value of $2,000,000.
• Trampoline Park — a total of 21,000 sq. ft. with an estimated value of $2,258,550.
• Pediatric Clinic — a total of 11,200 sq. ft. with an estimated value of $2,500,000.
• Burlington Coat Factory — a total of 64,000 sq. ft. with an estimated value of $10,332,700.
• Red River Hospital Addition — a total of 32,000 sq. ft. with an estimated value of $9,000,000.
• Aspen Dental & Select Comfort Offices — a total of 5,996 sq. ft. with an estimated value of $1,258,122.
• Luxury Bath — a total of 8,362 sq. ft. with an estimated value of $1,136,400.
Another indicator of local economic performance is the retail sales tax. During the 2014-15 fiscal year, the City
generated $29,871,209 in retail sales taxes, which was $260,349, or 0.86% less than in the prior fiscal year.
lv
MAJOR INITIATIVES
For The Year. The City Council continues to identify programs to meet citizens' requests for services and to
safeguard the environment. Over the last 4 years, the City of Wichita Falls experienced extreme drought
conditions. Beginning in 2011 and ending in May 2015, the City experienced record setting temperatures and
extremely low rainfall which decreased the City's water supply from nearly maximum lake capacity to
approximately 21%. The City's drought contingency plan requires water restrictions and surcharges for
excessive water use when the lake capacity gets below 50% (Stage II -Drought Warning). In May 2014, the City
entered Stage V-Drought Catastrophe at 25% of lake capacity. Essentially, all outside use of potable water, with
the exception of watering home foundations once per week, was eliminated, decreasing water consumption by
almost 56%. Additionally, in August 2013, the City issued $13 million in Combination Tax and Revenue
Certificates of Obligation to construct an emergency above ground pipeline from the River Road Wastewater
Treatment Plant to convey 7.5 million gallons per day of treated effluent directly to the Cypress Water Treatment
Plant for treatment and distribution. This pipeline and pump station went on line in July 2014. These extreme
water conservation measures reduced consumption from average daily use of 25 million gallons per day to
approximately 11 million gallons per day. The City also borrowed $33.8 million through the Texas Water
Development Board's low interest loan program to construct a permanent below ground pipeline from the River
Road Wastewater Treatment Plant to convey up to 16 million gallons of treated effluent per day to Lake
Arrowhead. This system was designed to eliminate the emergency pipeline project and is expected to go on-line
in the fall of 2016. Water rates were increased on average by 53% during this drought to address significantly
lower water revenues resulting from these drought conditions. Fortunately, in May 2015, the watersheds received
substantial rainfall, increasing the City's lake levels to full capacity. As a result, water restrictions were removed
and the emergency pipeline was deactivated.
Construction of the McNeil Avenue Drainage Project, which began in the summer of 2014, with an estimated
cost of $6.5 million, with the State of Texas paying for $2.1 million, continued during the fiscal year. The
drainage project has its completion occurring in 2016. The City's share of this jointly -funded project is being
paid from the City's Storm Water Utility Fund, while the State is providing funding for its share of project. The
project is generally described as the construction of an underground drainage system including concrete box
culverts, storm water inlets, and collection piping. The project will also relocate existing water and sewer
facilities along McNeil Avenue to avoid conflicts with the new drainage improvements. TxDOT's share of the
project includes the enclosure of a portion of the open channel along SW Parkway at the McNeil/Southwest
Parkway intersection to facilitate the construction of a right turn lane on SW Parkway as well as signal
improvements at this intersection. The limits of the project are from Pool Street to Southwest Parkway. This
project will remove 30 homes from the 100 year floodplain and eliminate to continuous nuisance flooding in the
area.
With the City's on -going efforts to reduce the effects of flooding within its boundaries, a contract for the 2014
Wichita River Flood Control Clearing Project was awarded to a private contractor in the amount of $109,720 in
October 2014. This project is generally described as the clearing of trees and vegetation within the flood
passageway of the Wichita River, and associated work. The limits of this project extend along the south side of
the river from Martin Luther King Blvd to the River Road Wastewater Treatment Plant. The area to be cleared
consists of 37.4 acres.
In November 2014, a contract was approved in the amount of $1,299,066 for Phase 1 of the City's Hike & Bike
Trail from Seymour Highway to Lucy Park. This project is generally described as the construction of a concrete
hike and bike trail with amenity stations/shelters in the Wichita Bluff Nature Area off of Seymour Highway, and
associated work. The project is the first of two phases in connecting the Circle Trail along Seymour Highway to
Lucy Park. This project will be funded with bond funds remaining from the Parks Trail Extension Project and
from Special Revenue Funds.
In December 2014, a contract was approved for the 2015 8`h and Ohio Intersection Enhancement Project in the
amount of $479,826. This project is generally described as the upgrade and enhancement of the 8's and Ohio
intersection, and associated work, similar to the work performed on other intersections on 8`s. Also included in
the project is the replacement of an old deteriorated water and sewer mains under the intersection as well as
improvements to the storm sewer in the intersection. 4B funds allocated for street rehab in the amount of
v
$400,000 has been targeted for this project. The additional cost will be funded using remaining funds from the
2014 annual street rehabilitation project.
In December 2014, the City awarded a contract in the amount of $224,000 for the Cypress Water Treatment
Plant Ultraviolet Disinfection System Construction/Installation Contract in association with the Direct Potable
Reuse Project (DPR). The work in this contract was for the installation of the Ultraviolet (UV) Disinfection
Equipment, all necessary piping, valves, and all necessary coordination with the UV supplier for a complete and
TCEQ approved operational system. This contract was necessitated by a reclassification of the status of the DPR
Project from a "temporary" status to a "permanent" one, requiring the City to install an additional treatment
process (UV) as required by TCEQ. This system was installed and used with the DPR system after the temporary
status of the Pipeline exceeded six months.
In February 2015, a contract was awarded in the amount of $1,287,790 for the 2015 Asphalt Street Rehabilitation
Project. This project is to rehabilitate asphalt streets and complete base repair at various locations. Additionally,
in March 2015, a contract was awarded in the amount of $817,960 for the 2015 Concrete Street Rehabilitation
Project. This project is generally described as the concrete repair of selected City streets, and associated work.
The concrete replacement is funded as part of the annual street rehabilitation budget. Both of these projects
make up the principal work of the Annual Street Rehabilitation Project.
In March 2015, a contract was awarded to an engineering firm in the amount not to exceed $168,000 for
preparation of a water rights application for the proposed Lake Ringgold. As part of the City's long range
planning for water resources, it was recommended that the City to pursue the development of Lake Ringgold and
this contract represents the initial step in that overall process.
In June 2015, a contract was awarded in the estimated amount of $4,603,938 for the Reconstruction of Taxiway
"C" Project at Wichita Falls Regional Airport. This project will reconstruct the entire Taxiway, with the
exception of the newly constructed portion at the new commercial apron, from Runway 35 to Taxiway D. The
construction will replace all base material and restripe the taxiway. Construction of this project is allotted nine
months to complete, and there will be extensive coordination that will be required with Sheppard Air Force Base
throughout the project. The Federal Aviation Administration (FAA) will fund 90% of the cost of this project
through an Airport Improvement Program grant. The FAA's total for this project will amount to $4,143,545. The
City of Wichita Falls will pay the remaining 10% ($460,393) from money available through bond proceeds,
airport equity, and airport operational revenues.
In August 2015, a contract was awarded in the amount of $930,604 for the 2015 Sanitary Sewer Lift Station 65
Extension Project. This project is generally described as the installation of an 18" and 10" sanitary sewer main,
and associated work. The purpose of the project is to relieve surcharging of wastewater collection system south
of Hwy 287. The project will reduce sewer overflows by removing the prison wastewater flow from the smaller
deteriorated clay tile lines. The project is also sized to accommodate future development in the area and will
eliminate an existing lift station from the collection system, which will reduce O&M costs on the system.
In September 2015, a contract was awarded for the 2015 Budget Utility Improvements Project. This project is
generally described as the installation of 6-inch, 8-inch, 12-inch waterlines, reconnect services, large valve
replacements, and associated work. The purpose of the project is to replace deteriorating cast iron water mains,
replace broken large valves, and eliminate dead end mains. This project will help to improve the water quality,
and overall reliability of the water distribution system. Funding for this project was recommended, and
approved, to be funded from remaining bond proceeds from the Direct Potable Reuse (DPR) Project.
For The Future. To continue addressing our water supply needs, the City authorized the issuance of $33.8
million of 30-Year Combination Tax and Revenue Certificates of Obligation to finance the cost of engineering
and construction associated with the City's Permanent Indirect Potable Water Reuse Project (IPR Project). This
project will ultimately replace the Emergency Direct Potable Water Reuse System and involve the construction of
a pump station and pipeline to convey treated wastewater effluent from the River Road Wastewater Treatment
Plant to Lake Arrowhead. The project is designed to convey up to 16 mgd of treated effluent, thereby adding
additional water supply to City's water resources. Construction of this system is underway and is estimated to
take approximately 1 more year to complete. The pipe that was being used for the temporary Direct Potable
Reuse Project was dismantled and relocated to the Permanent IPR Project. The Certificates of Obligation were
V1
issued through the Texas Water Development Board as part of their Clean Water State Revolving Loan Program.
This financing mechanism provides loans to municipalities for wastewater projects at 1.2% lower interest rates
than what the City would receive in the private market. For this particular issue, the State Loan Program will
save the City approximately $8 million in interest costs over the 30-year period.
In December 2015, the City awarded a contract in the amount of $638,512 for the engineering, design,
equipment, labor and installation of new lighting at the Four -field Softball Complex North. This new lighting
replaced a lighting system that was 26 years old and improved the level of lighting for the complex at a reduced
energy consumption of more than 50% over standard lighting system and addresses the 25-year guaranteed
constant light level of 50 foot candles as required by Amateur Softball Association standards. With this contract,
the City receives a warranty and maintenance program, eliminating 100% of maintenance cost for 25-years,
including labor and material.
Also, in December 2015, the City entered into a professional services contract with a consulting firth in the
amount of $70,900 to perform an operational and facility study for the Multi -Purpose Events Center. Essentially,
the study is intended to analyze the operations and to develop findings and recommendations for improvement,
which may include alternative management structures, in order to enhance the MPEC's overall marketability and
financial performance with the ultimate goal of decreasing the financial subsidy required from the City.
In February 2016, the City awarded a contract to an energy services company as part of a performance contract
for Advanced Metering Infrastructure (AMI). AMI Systems measure, collect, and assist with analyzing water
usage through two-way radio communication media on a pre -defined schedule. They are essentially smart water
meters capable of producing digital output automatically and sending readings from the meter to a data
collector/radio repeater on a fixed tower system and returning data to the utility billing office for billing and data
analysis. They also provide customers with the ability to log into a customer portal to view their water usage on
an hourly basis. The system will consist principally of products provided by Sensus, who is a leading vendor in
this industry, and has been used in numerous AMI/AMR systems for cities in the State of Texas. The funding for
this project was acquired through Banc of America Public Capital Corporation in the form of a 20-year capital
lease agreement in the amount of $16,561,360 with an obligation to AMERESCO in the amount of $15,884,487
and Financing Interest and related costs of $676,873. A preliminary study indicated that this system could
produce enough savings and additional revenue to pay the annual debt service of a project costing $18 million
over a 20-year period.
FINANCIAL INFORMATION
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal
control as deemed appropriate by the City Manager. Internal control is designed to provide reasonable, but not
absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition;
and (2) the reliability of financial records for preparing financial statements and maintaining accountability for
assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits
likely to be derived and the evaluation of costs and benefits requires estimates and judgments by the City
Manager.
All internal control evaluations occur within the above framework. The City believes that its internal control
adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions.
The Annual Operating Budget is proposed by the City Manager and approved by the City Council following
public discussion. Budgetary control is maintained at the class level by the Finance Department within each
division by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors.
Purchase orders which result in an overrun of class level balances are not released until additional appropriations
are made available. In instances when budgetary transfers are necessary, management control of the operating
budget is maintained at the fund and department level. Transfers within a department of the same fund must be
approved by the City Manager. Transfers across departments or funds must be approved by the City Council.
Unencumbered appropriation balances lapse at year end and are not carried forward to new budget periods.
Open encumbrances are reported as reservations of fund balance at September 30, 2015, and related
appropriations are carried forward to the new fiscal year through a supplemental budgetary allocation.
Vll
In September 2012, the City adopted a fund balance policy for the General Fund, Water/Sewer Fund, and the
Sanitation Fund. The policy requires the City to maintain at least 20% of expenditures in unassigned fund
balance in the General Fund, 17% of expenditures (less debt service expenses) in the Water/Sewer Fund, and
15% of expenditures in the Sanitation Fund. These financial statements reflect that the policy has been followed
in the General Fund and Sanitation Fund. Persisting drought conditions and water restrictions resulted in much
lower water sales this fiscal year, causing the City to fall below the stated reserve requirements in the
Water/Sewer Fund. However, the City Council approved substantial retail water rate increases in August 2014
in an effort to replenish these reserves over the next several years as outlined in the policy.
The City also maintains an informal policy to limit tax supported debt to no more than 5% of total assessed
property value or $1,500 per capita. As of September 30, 2015, the City's tax supported debt was approximately
$50.5 million, which is 1.09% of the taxable value of property, and $481 per capita.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the books of account, financial records, and transactions of all
administrative departments of the City by Certified Public Accountants. The accounting firm of Edgin, Parkman,
Fleming & Fleming, PC was selected by the Mayor and City Council to satisfy this charter requirement. The
auditors' report on the basic financial statements and combining fund statements and schedules is included in the
financial section of this report. In addition to meeting the requirements set forth in the City Charter, the audit
also was designed to meet the requirements of the federal Single Audit Act Amendments of 1996 and related
OMB Circular A-133, and the State Single Audit Act. These reports are issued under separate cover.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Wichita Falls for its Comprehensive Annual
Financial Report for the fiscal year ended September 30, 2014. This was the 20'h consecutive year that the
government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual financial report.
This report must satisfy both generally accepted accounting principles 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 GFOA to determine its eligibility for another certificate.
Acknowledgments
My appreciation is extended to the various elected officials, city manager, department heads and employees
responsible for the fair presentation of the CAFR and for contributing to the sound financial position of the City
of Wichita Falls. The City of Wichita Falls has been blessed with a group of persons who appreciate and respect
principles of fiscal restraint and propriety. In particular, I would like to acknowledge the special efforts of the
Department of Finance employees who contributed directly to the development of this report. The continuing
support of City Council and City Manager, who remain committed to fiscal integrity and financial leadership, is
likewise appreciated.
Respectfully submitted,
I P�'
Patrick Halverson
Director of Finance
G�
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Wichita Falls
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2014
*/0
'00V
Executive Director/CEO
ix
CITY OF WICHITA FALLS
ORGANIZATIONAL CHART
WICHITA FALLS
CITIZENS
CITIZEN
CITY COUNCIL CITIZEN BOARDS
COMMISSIONS-'-
MUNICIPAL
CITY MANAGER CITY ATTORNEY CITY CLERK
COURTIUDGE !-
-
DEPUTY PUBLIC WORKS/
PUBLIC UTILITIES
CRY'MANAGER
POLICE FIRE
DEPARTMENT DEPARTMENT
DEPARTMENT
J
COMMA NITY
DEVELOPMENT
DEPARTMENT
COMPREHENSIVE
BUILDING
PLANNNG
_
INSPECTION
PROPERTY
I CODE
MANAGEMENT
_
r ENFORCEMENT
NEIGHBORHOOD
RESOURCES
HOUSING
I
FINANCE
DEPARTMENT
BUDGET
DEVELOPMENT - ALCOUNTING
PURCHASING - UTILITY
COLLECTIONS
MUNICIPAL
COURT
HUMAN
N
RESOURCES
DEPARTMENT
PERSONNEL - RISK
MANAGEMENT
EMPLOYEE
BENEFITS
I
TECHNOLOGIES &
FACILITIES
DEPARTMENT
INFORMATION _ BUILDING
TECHNOLOGY MANTENANCE
PUBLIC
COMMUNICATION
ENGINEERING - - SANITATION
J
STREET UTILITIES
MAINTENANCE
- TECHNICALSERVIC
ECHNIES J FIELD SERVICES
I
PARKSAND
RECREATION
DEPARTMENT
ADMINSTRATpN
FIRE SUPRESSION - - ARSON
INVESTIGATION
MULTI -PURPOSE
EVENT CENTER
DEPARTMENT
EMERGENCY
MANAGEMENT
HEALTH
DEPARTMENT
ADMINISTRATION - ENVIRONMENTAL
HEALTH
PUBLIC HEALTH _ _ LAB/WATER
NURSING POLLUTION
_J
ANIMAL
SERVICES
I
AVIATION, TRAFFIC
AND
TRANSPORTATION.
RECREATON - P� CONVENTION& - _AIRPORTS I _ PUBLIK
EXHIBIT HALL
MAINTENANCE VISITORS BUREAU Z _J TRANSPORTATION J
MU( CENTER - LIBRARY I AGRICULTURE COLISEUM j ENGINTRAEFIC
RING 1 SERVICESL
CEMETERY I TRANSPORTATION I
PLANNING
X
CITY OF WICHITA FALLS, TEXAS
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2015
Title Name
Mayor
Glenn Barham
Mayor Pro-Tem
Michael Smith
City Council Member
Stephen Santellana
City Council Member
Deandra Chenault
City Council Member
Brian Hooker
City Council Member
Tim Ingle
City Council Member
Tom Quintero
City Manager
Darron Leiker
City Attorney
Kinley Hegglund
Municipal Court Judge
Larry Gillen
City Clerk
Tracy Norr
Deputy City Manager
Jim Dockery
Director of Aviation, Traffic and Transportation
John Burrus
Finance Director
Patrick Halverson
Director of Public Health
Lou Kreidler
Police Chief
Manuel Borrego
Fire Chief
Jon Reese
Director of Parks and Recreation
Jack Murphy
Director of Public Works and Public Utilities
Russell Schreiber
Director of Multi -Purpose Events Center
Bob Sullivan
xi
Ui
ic i a a�(5
T E X A S
$/u�SkieS: Crolde� Oy�ot-tu�c��ie,
Financial Section
gaoda,d s,aogipnd 4uapuadapuI
EDGIN, PARKMAN, FLEMING & FLEMING, PC
CERTIFIED PUBLIC ACCOUNTANTS
4110 KELL BLVD., SECOND FLOOR P.O. Box 750
WICHITA FALLS, TExAs 76307-0750
PH. (940) 766-5550 • FAx (940) 766-5778
Independent Auditor's Report on Financial Statements
The Honorable Mayor and Members of the City Council
City of Wichita Falls, Texas
MICHAEL D. EDGIN, CPA
DAVID L. PARKMAN, CPA
A. PAUL FLEMING, CPA
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of the City of Wichita Falls, Texas (the City) as of
and for the year ended September 30, 2015, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the City's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City as of September 30, 2015, and the respective changes in financial
position, and, where applicable, cash flows thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2015, the City adopted new accounting
guidance, Government Accounting Standards Board (GASB) Statement No. 68, Accounting and
Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for
Contributions Made Subsequent to the Measurement Date — an Amendment of GASB Statement
No. 68. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, the Budgetary Comparison Schedule — General Fund, the
schedules on the Texas Municipal Retirement System, the Wichita Falls Firemen's Relief and
Retirement Fund, and the Wichita Falls Retiree Health Care Plan be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory section, combining
and individual nonmajor fund financial statements, supporting schedules, and statistical section
are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining and individual nonmajor fund financial statements and supporting schedules are
the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements and supporting schedules are fairly
stated in all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
2
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued under separate cover our
report dated March 30, 2016, on our consideration of the City's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
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
in considering the City's internal control over financial reporting and compliance.
Respectfully submitted,
Edgin, Parkman, Fleming & Fleming, PC
March 30, 2016
B/u,Skie,. *AenOffo�'tuta+ties
Management Discussion and Analysis
FINANCE DEPARTMENT
1 dic 4 %la l,a_4
T E X A S
AIW15AMl ! 40kel * OfFortl iel,5:.
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
Management's discussion and analysis provides a narrative overview of the financial activities and
changes in the financial position of the City of Wichita Falls, Texas, for the fiscal year ended September
30, 2015. It is offered here by the management of the City to the readers of its financial statements.
Readers should use the information presented here in conjunction with additional information fumished in
our letter of transmittal, which can be found in the Introductory Section of this Comprehensive Annual
Financial Report.
Financial Highlights
The assets of the City of Wichita Falls exceeded its liabilities at September 30, 2015, by $351,617,157
(net position). Net position for the City decreased by $47,665,868 over the prior year. This decrease is a
result of an increase in net position of $6,407,527 from the current fiscal year activity offset by a prior
period adjustment of $(54,073,395) as a result of the implementation of Governmental Accounting
Standards Board (GASB) Statement No. 68, (GASB 68) Accounting and Financial Reporting for
Pensions -an Amendment of GASB Statement No. 27. Among other things, GASB Statement No. 68
requires the governmental entity to record the unfunded actuarial liability for pensions on the face of the
government -wide financial statements. Previous to this statement, the unfunded liability was disclosed in
the footnotes, but not recorded in the financial statements. The City has implemented GASB Statement
No. 68 which required prior period adjustments to report the effect of GASB 68 retroactively. (See Note
1 Sec. G, Note 8 and Note 18 for additional information).
While the unrestricted net position for Governmental Activities was ($59,103,807), the Business -type
Activities had an unrestricted net position of $13,941,283 for an overall unrestricted net position of
($45,162,524). This change of net position can be attributed principally to the reporting of the unfunded
actuarial pension liability as promulgated under GASB Statement No. 68. Contributing to the positive
change in the Business -type Activities in unrestricted net position is the Water/Sewer Fund as it reflected
net change of $4,855,896 compared to a net change of ($2,222,245) in the prior year. This change in the
Water/Sewer Fund reflected an increase in operating income of $7.2 million compared to the prior year.
This increased income resulted from water consumption restrictions being canceled in June 2015 as the
City exited its prolonged drought and the effects of the water rate increase passed in August 2014 could
be realized without water restrictions being in place. The Sanitation Fund had operating income of $3.9
million while the Regional Airport reported an increase in revenues $89,000 over the prior year, while
operating expenses increased by $681,000 due to the a full year of airport operations being recorded.
4
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
(continued)
At September 30, 2015, the City's governmental funds reported combined ending fund balances
of $23,250,262. Of this amount, $13,131,198, or 56.48%, is available for spending at the
government's discretion, (unassigned fund balance).
At the end of the current fiscal year, unassigned fund balance for the General Fund was
$13,682,061 or 19.34% of total General Fund expenditures.
During the 2014-15 fiscal year, the City's total debt increased by $22,188,392. The City issued
$33,545,000 in Combination Tax and Revenue Certificates of Obligation to pay for a Permanent
Indirect Potable Water Reuse Project. The City also incurred $48,990 in capital lease obligations
to finance new equipment to be used at the Champion's Golf Course. This new debt was partially
offset as the City continued to retire outstanding General Obligation Bonds, Water and Sewer
System Revenue Bonds, Combination Tax and Revenue Bonds, Capital Leases and Notes
Payable.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The reporting focus is on the City as a whole and on individual major funds. It is
intended to present a comprehensive view of the City's financial activities. The basic financial
statements are comprised of three components: 1) government -wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report contains other
supplementary information in addition to the basic financial statements.
Government -wide Financial Statements
The government -wide financial statements, which can be found on pages 15-16 of this report,
include the Statement of Net Position (Exhibit A-1) and the Statement of Activities (Exhibit A-2).
These statements are designed to provide readers with a broad overview of the City's finances in
a manner similar to a private -sector business. Both are prepared using the economic resources
focus and the accrual basis of accounting; meaning that all current year's revenues and expenses
are included regardless of when cash is received or paid. Thus, revenues and expenses are
reported in these statements for some items that will result in cash flows in future fiscal periods
(e.g. uncollected taxes and earned but not used vacation leave).
The Statement of Net Position presents information on all of the City's assets and liabilities,
including capital assets and long-term obligations. The difference between the City's assets and
liabilities is reported as net position. Over time, the increases or decreases in net position may
serve as a useful indicator of whether the financial position of the City is improving or
deteriorating. Other indicators of the City's financial position should be taken into consideration,
such as the change in the City's property tax base and condition of the City's infrastructure (e.g.,
roads, traffic signals, water and sewer lines, etc.), in order to more accurately assess the overall
financial condition of the City.
The Statement of Activities presents information showing how the City's net position changed
during the most recent fiscal year. It focuses on both the gross and net costs of the government
services. This statement includes all current year revenues and expenses.
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
(continued)
The Statement of Net Position and the Statement of Activities divide the City's activities into three
types:
Governmental activities — Most of the City's basic services are reported here, including police,
fire, parks and recreation, public works, health, traffic and transportation, community
development and planning, duplicating services, information technology, health insurance claims,
and general administration and finance. The Multi -Purpose Events Center and Champions Golf
Course are also reported as governmental activities. Property taxes, sales taxes, franchise fees,
and various grant funds provide the majority of financing for these activities.
Business-tvpe activities — Activities for which the City charges fees to customers to pay most or
all of the cost of a service it provides are reported as business -type activities. The City's
business -type activities include water and wastewater treatment and distribution, solid waste
collection and disposal, regional and municipal airports, transit system, storm water drainage
improvements, fleet maintenance services and water park operations.
Component Units — Four legally separate organizations, for which the City is financially
accountable, are included in these statements as discretely presented component units. These
organizations include the Wichita Falls Economic Development Corporation, Wichita Falls 4B
Sales Tax Corporation, Wichita Falls Reinvestment Zone #2, and the Wichita Falls Reinvestment
Zone #3.
Fund Financial Statements
The City of Wichita Falls, like other state and local governments, uses fund accounting to provide
more detailed information about the City's most significant funds, not the City as a whole. A
fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. Some funds are required to be established by
state law or bond covenants. However, the City Council establishes many other funds to help it
control and manage money for particular purposes or to show that it is meeting legal
responsibilities. All of the funds of the City can be divided into three categories: governmental
funds, proprietary funds and fiduciary funds.
Governmental Funds — These funds are used to account for the majority of the City's activities,
which are essentially the same functions reported as governmental funds in the government -wide
statements. However, unlike the government -wide financial statements, governmental fund
financial statements are reported using an accounting method identified as the modified accrual
basis of accounting, which measures cash and all other financial assets that can be readily
converted to cash. The governmental fund statements focus on near -term inflows and outflows of
expendable resources, as well as expendable resources available at the end of the fiscal year for
future spending. Such information may be useful in evaluating a government's near -term
financing requirements.
The focus of the governmental funds financial statements is narrower than that of the
government -wide financial statements. Therefore, it is useful to compare the information
presented for governmental funds with similar information presented for governmental activities
in the government -wide statements. By doing so, readers may better understand the long-term
impact of the government's short term financing decisions. Both the Governmental Fund Balance
6
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
(continued)
Sheet and the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund
Balances provide a reconciliation to facilitate this comparison. The reconciliation explains the
differences between the government's activities reported in the government -wide statements and
the information presented in the governmental funds financial statements.
The City of Wichita Falls maintains 15 individual governmental funds. Information for the
General Fund is presented separately in the Governmental Fund Balance Sheet and in the
Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances because
it is considered a major fund of the City. Data for the other governmental funds are combined
into a single, aggregated presentation. Individual fund data for each of the non -major
governmental funds are provided in the Combining Financial Statement Section of this report.
The Basic Governmental Funds Financial Statements can be found on pages 17-20 of this report.
Proprietary Funds — When the City charges customers for services it provides, whether to outside
customers or to other units within the City, the activities are generally reported in proprietary
funds. The City of Wichita Falls maintains two different types of proprietary funds: enterprise
funds and internal service funds.
• Enterprise funds are used to report the same functions presented as business -type
activities in the government -wide financial statements. The City uses enterprise funds to
account for its water and sewer operations, sanitation collection and disposal services,
regional and municipal airports, transit operations, storm water utility district, and water
park operations.
Internal service funds are an accounting device used to report activities that provide
supplies and services to other City programs, such as fleet maintenance, print shop
services, information technology, and employee benefit trust. Because these services
benefit both governmental and business -type functions, they have been allocated between
governmental and business -type activities in the government -wide financial statements.
Proprietary fund financial statements provide the same type of information as the business -type
activities shown in the government -wide financial statements, only in more detail and include
some of the internal service fund -type activities. The proprietary fund financial statements
provide separate information for the Water and Sewer Fund, the Sanitation Fund and the Regional
Airport Fund since they are considered to be major funds of the City. The non -major proprietary
funds are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for each of the non -major proprietary funds are provided in the
Combining Financial Statement Section of this report.
Fiduciary Funds — Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government -wide financial
statements because the resources of those funds are not available to support the City's own
programs. The accounting method used for fiduciary funds is much like that used for proprietary
funds. Agency funds are a component of fiduciary funds and are used to account for situations
where the City's role is purely custodial, such as receipt, temporary investment and remittance of
fiduciary funds to individuals, private organizations or other governments. The City maintains
7
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
(continued)
one fiduciary fund. This fund is an agency fund used to account for property that has been
abandoned or unclaimed pending escheatment to the State of Texas.
Notes to the Financial Statements
The Notes to the Financial Statements provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. These
notes can be found on pages 27-67 of this report.
Government -Wide Financial Analysis
The City's combined net position was $351,617,157 as of September 30, 2015, a decrease of
$47,665,868, or 11.94% from the prior year. Using the Tables below, an analysis of the net
position of the City can be made. The largest portion of the City's net position, $381,263,889, or
108.43%, is reflected in capital assets (land and improvements, buildings, infrastructure,
machinery and equipment), less any related debt used to acquire those assets that is still
outstanding. The City uses these assets to provide services to its citizens; consequently, these
assets are not available for future spending. Although the City reports its capital assets net of
related debt, the resources needed to repay this debt must be provided from other sources since
the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net position, $15,515,792, or 4.41%, represents resources that
are subject to external restrictions on how they may be used.
Net Position
(in thousands)
Governmental
Business -type
Activities
Activities
Total
2015
2014
2015
2014
2015
2014
Current and Other Assets
$ 31,074
$ 43,721
$ 80,790
$ 50,573
$ 111,864
$ 94,294
Capital Assets
173,538
173,893
351,405
342,677
524,943
516,570
Total Assets
204,612
217,614
432,195
393,250
636,807
610,864
Deferred Outflows of
Resources
5,565
-
3,837
2.330
9,402
2,330
Long Term Liabilities
110,389
65,288
163,578
128,368
273,967
193,656
Other Liabilities
10,333
13,077
8,023
7,178
18,356
20,255
Total Liabilities
120,722
78,365
171,601
135,546
292,323
213,911
Deferred Inflows of Resources
1,829
Z
440
-
2,269
Net Position:
Net Investment in Capital
Assets 143,015 128,169 238,249 225,576 381,264 353,745
Restricted 3,715 5,290 11,801 11,886 15,516 17,176
Unrestricted 59104 5,790 13,941 22,572 (45,163) 28,362
Total Net Position 62 1322M
8
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
(continued)
CHANGES IN NET POSITION
(in thousands)
Governmental
Business -type
Activities
Activities
Total
9
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
(continued)
Governmental Activities — Governmental Activities reduced the City's net position by
$51,622,852 principally because the effects of implementation of GASB 68 for recognition of the
unfunded actuarial liability for pensions on the City's financial statements.
Business -Type Activities — Business -type Activities increased the City's net position by
$3,956,984. The Sanitation Fund shows a decrease of net position of nearly $3.0 million
principally due to a transfer to the Employee Benefit Trust Fund of $2.3 million to fund excess
health claims and includes a prior period adjustment for the recognition of the net pension
liability for the fund. The Storm Water Utility Fund shows improvement of nearly $2.8 million in
net position to allow unrestricted net position to grow in anticipation of the ensuing McNeil
Drainage Improvement Project. Over $689,000 is due to an increase in net position in the
Information Technology Fund to allow unrestricted net position to grow in anticipation of future
improvements to public safety communication systems. Water consumption restrictions for
drought conditions were removed in June 2015 and the City anticipates that water consumption
will gradually return to near pre -drought usage patterns. As a result of the lifting of the
restrictions, the Water/Sewer Fund experienced a change in net position of $4.8 million due to
higher water consumptions which was offset by a prior period adjustment of $4.5 million for the
net pension liability of the fund.
Financial Analysis of the City's Funds
Governmental Funds — The focus of the governmental funds is to provide information on near -
term inflows, outflows and balances of expendable resources. Such information is useful in
assessing the City's financing requirements. In particular, unassigned 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 September 30, 2015, the City's governmental funds reported combined fund balances of
$23,250,262, which is a decrease of $8,499,271 from the prior year. Virtually all of this decrease
is attributable to the reduction of intergovernmental revenue over the previous fiscal year due to
the completion of the Wichita Falls Regional Airport Terminal Project.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year,
unassigned fund balance of the General Fund was $13,682,061, a reduction of $1,204,138 from
the prior year. As a measure of the General Fund's liquidity, it may be useful to compare both
the unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund
balance represents 19.34% of total General Fund expenditures, while the total fund balance
represents 21.19% of total General Fund expenditures.
Proprietary Funds — The financial statements of the proprietary funds provide information for
two types of funds: the business type (enterprise) funds and the internal service funds. The
accounting principles applied to proprietary funds are similar to that of the private sector.
Consequently, with the exception of the allocation of internal service fund net income or loss, the
net position and changes in net position of the enterprise funds in these financial statements are
identical with the net position and changes in net position reflected in the business type activities
in the city-wide presentation.
10
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
(continued)
The City's internal service funds include the Fleet Maintenance Fund, Employee Benefit Trust
Fund, Duplicating Services Fund and the Information Technology Fund. At the close of
September 30, 2015, the net position for the City's internal service funds was $23,784,097, a
decrease of $511,816. The Fleet Maintenance Fund reflects a reduction of $1,128,525 in net
position principally because depreciation expenses were higher than equipment replacement
expenses. The Employee Benefit Trust Fund reflects a reduction of $86,361 in net position
because of a higher than normal employee and retiree health claim experience during the year.
The Information Technology Fund reflects an increase of $689,339 in net position as the City
continues to increase this Fund's unrestricted net position to finance future improvements to our
public safety communication systems.
General Fund Budgetary Highlights
The final amended expenditure budget for the General Fund, including transfers out, was
increased by $4,304,801 from the original adopted budget. The reasons for this increase in
appropriations can be briefly summarized as follows:
Approximately $1,950,000 of prior year encumbrances for street repair projects was
carried forward to the 2014-15 amended budget.
A total of $925,044 was budgeted to fund a 4% cost of living increase (COLA) for
employees.
Actual revenues in the General Fund for the 2014-15 fiscal year were $66,574,649, which was
$718,598 below final budgeted figures. Reduced sales tax receipts accounted for approximately
$601,592 of this amount. Natural gas franchise revenue helped offset the reduction in sales tax
receipts by exceeding the budgeted amount by approximately a $162,000 due to higher natural
gas prices. Electricity franchise revenue decreased by approximately $97,000. A decrease in
mixed beverage tax revenue of approximately $29,000 which attributed to the overall change of
revenue.
Actual expenditures in the General Fund for the 2014-15 fiscal year were $70,763,152, which
was $1,845,241 below budgeted expenditures. Almost all of this variance was due to large
encumbrances for street repairs, emergency tree watering, traffic control equipment and street
lights that weren't liquidated by the close of the fiscal year that will be expended in the 2015-16
fiscal year.
11
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
(continued)
Capital Asset and Debt Administration
Capital Assets - The City's investment in capital assets for its governmental and business -type
activities as of September 30, 2015 amounts to $524,943,198 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, equipment, infrastructure and
construction in progress.
Major capital asset events during this fiscal year included the following:
• Construction in progress of the new Regional Airport Facilities
• Construction in progress of the McNeil Avenue Drainage Improvement Project
• Construction in progress of the Permanent Water Reuse Project
• Completion of the Wastewater Treatment Plant Effluent Reuse Conveyance Project
• Completion of the Direct Potable Water Reuse Project
• Completion of the new slide at Castaway Cove Water Park
• Street Rehabilitation and Utility Improvement Projects
Capital Assets, net of Accumulated Depreciation
(in thousands)
Governmental Business -type
Activities Activities
2015 2014 2015 2014
Total
2015 2014
Land
$ 10,683
$ 10,683
$ 9,042
$ 9,042
$ 19,725
$ 19,725
Land Betterments
17,184
17,682
31,967
33,679
49,151
51,361
Buildings, Systems
and Improvements
51,389
52,252
283,138
243,889
334,527
296,141
Infrastructure
84,145
82,384
-
-
84,145
82,384
Machinery and Equip
9,878
10,107
2,771
2,674
12,649
12,781
Furniture and Fixtures
1
2
-
-
1
2
Motor Vehicles
-
-
15,125
15,340
15,125
15,340
Construction in
Progress
258
783
9,362
38,053
9,620
38,836
Totals
$342.677,
$ 524,943
$ 516.570
Additional information on the City's capital assets can be found in Note 7 on pages 44-45 of this
report.
12
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
(continued)
Long Term Debt — At the end of the current fiscal year, the City had a total bonded debt, notes
and capital leases outstanding of $203,094,009. During the 2014-15 fiscal year, the City issued
$33,545,000 in Combination Tax and Revenue Certificates of Obligation to pay for a Permanent
Indirect Potable Water Reuse Project. The City also incurred $48,990 in capital lease obligations
to finance new equipment to be used at the Champion's Golf Course. This new debt was partially
offset as the City continued to retire outstanding General Obligation Bonds, Water and Sewer
System Revenue Bonds, Combination Tax and Revenue Bonds, Capital Leases and Notes
Payable.
As of September 30, 2015, Moody's Investor's Service had assigned a credit rating of Aa2 for the
City's General Obligation Bonds and a rating of A3 for the City's Water and Sewer System
Revenue Bonds. Standard & Poor's had assigned a credit rating of AA for the City's General
Obligation Bonds and a rating of A for its Water and Sewer System Revenue Bonds.
Outstanding Debt at Year -End
(in thousands)
Governmental
Activities
2015 2014
General Obligation Bonds
$ 3,851
$ 4,680
Combination Tax and
Revenue Bonds
46,710
49,302
Utility System Revenue
Bonds
-
-
Capital Lease Payable
3,230
3,511
Notes Payable
-
-
Total
$ 53,791
$ 57,493
Business -type
Activities
2015 2014
$ 1,930 $ 1,930
Total
2015 2014
$ 5,781 $ 6,610
54,126 24,285 100,836 73,587
92,086
723
438
$ 149,303
95,724 92,086
1,000 3,953
474 438
$ 123,413 $ 203,094
95,724
4,511
474
$ 180,906
The City is permitted by its Home Rule Charter to levy taxes up to $2.25 per $100 of assessed
valuation for general governmental services, including the payment of principal and interest on
long-term debt. The combined tax rate to finance general governmental services for the year
ended September 30, 2015, was $.65526 per $100, which means that the City has a tax margin of
$1.59474 per $100, and could generate up to $73,753,723 additional tax revenue a year from the
present assessed valuation of $4,624,811,743 before the limit is reached. The current ratio of
general bonded debt outstanding to the assessed value of all taxable property is 1.09%.
Additional information about the City's long-term debt can be found in Note 13 on pages 59-63
of this report.
13
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2015
(continued)
Economic Factors and Next Year's Budget and Rates
Total 2015-16 operating revenues, including transfers in from other funds, are budgeted at
$171,677,150, which is an increase of $6,269,389, or 3.79% from the 2014-15 adopted budget.
In the 2015-16 budget, sales taxes in the General Fund are projected to generate $22,477,092, a
decrease of $532,571, or 2.3% from the prior year adopted budget. It should be noted that this
projection was based upon an estimate of 2014-15 actual receipts and a growth rate of 2.00%.
The Property Tax is the largest source of revenue in the City's budget and is also relied heavily
upon to provide general City services. The property tax base, as certified by the Wichita County
Appraisal District, is $4.77 billion, an increase of $147.2 million, or 3.19% from the prior year.
This is the seventh consecutive year that the property tax base has shown very slight growth or
remained flat. The 2015-16 budget increased the property tax rate from $0.65526 to $0.70598 per
$100 of taxable property. This rate is estimated to generate $3,293,035 in additional property tax
revenue for the General Fund during the 2015-16 fiscal year and will be used entirely to provide
increases to the City's pay plans that have remained significantly unchanged for several years.
Civil service Police and Fire personnel received cost of living adjustments of 9% and 7%
respectively, while all other personnel received a 1% cost of living adjustment.
The City maintains a reserve account in the General Fund to be used for major emergencies such
as a widespread tornado, large legal liabilities or important one-time expenditures. The City's
fund balance policy established a goal of maintaining 20% of expenditures in unassigned General
Fund balance. Current figures indicate that the City will maintain this 20% General Fund balance
goal which does not allow the flexibility to fund many one-time capital improvements but,
nevertheless, it is necessary to transfer $1 million to provide sufficient one-time funds to upgrade
the Public Safety Radio System in the 2015-16 budget.
The 2015-16 budget maintains the water rates as approved on August 5, 2014 that included an
increase of 53% to retail water rates. This rate increase was needed to provide for approximately
$1.4 million of anticipated annual debt service on the Indirect Potable Water Reuse Project, set
aside $1 million annually for a future water supply project that will be determined, and to adjust
for significantly lower water sales due to lower water consumption/demand.
Requests for Information
This financial report is designed to provide a general overview of the finances of the City of
Wichita Falls for all those with an interest in the government's finances. Questions concerning
any of the information provided in this report, or request for additional financial information,
should be addressed to the City Finance Department, 1300 Seventh Street, Wichita Falls, Texas
76301.
14
r
Flo
5
T E X A S
�/ct�Skies Cr�/den O��o�'tu�it%es
Basic Financial Statements
EXHIBIT A-1
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
Primary Government
Governmental
Business -type
Component
Activities
Activities
Total
Units
Assets
Cash and cash equivalents
$ 20,381,024
$ 13,086,714
$ 33,467,738
$ 21,772,282
Receivables (net):
Taxes and assessments
882,600
-
882,600
-
Customer and trade
-
8,065,968
8,065,968
-
Government agencies
9,480,160
1,941,870
11,422,030
1,265,626
Other
2,718,547
184,007
2,902,554
-
Internal balances
(6,156,486)
6,156,486
-
Inventory
245,874
1,829,362
2,075,236
Prepaid items
59,679
38,609
98,288
Other assets
155,018
-
155,018
Restricted assets:
Cash and cash equivalents
3,307,799
49,487,140
52,794,939
-
Capital assets not being depreciated
10,941,020
18,404,002
29,345,022
1,469,797
Capital assets net of accumulated depreciation
162,597,022
333,001,152
495,598,174
737,597
Total assets
204,612,257
432,195,310
636,807,567
25,245,302
Deferred Outflows of Resources
Pension -related
5,564,997
1,707,754
7,272,751
-
Deferred losses on bond refundings
-
2,128,967
2,128,967
Total deferred outflows of resources
5,564,997
3,836,721
9,401,718
-
Liabilities
Accounts payable - trade
2,389,991
3,234,718
5,624,709
76,894
Accrued payroll
1,835,527
474,924
2,310,451
-
Accrued interest payable
313,596
742,419
1,056,015
Payable to government agencies
443,806
97,966
541,772
Estimated health claims payable
930,000
-
930,000
Other liabilities
4,383,296
530,191
4,913,487
Unearned revenue
37,236
-
37,236
Customer deposits
-
2,942,257
2,942,257
Long-term liabilities:
Portion due or payable within one year
6,163,884
9,406,724
15,570,608
Portion due or payable after one year
56,179,421
145,044,861
201,224,282
Net pension liability
48,045,497
9,126,431
57,171,928
-
Totalliabilities
120,722,254
171,600,491
292,322,745
76,894
Deferred Inflows of Resources
Pension -related
1,828,930
440,453
2,269,383
-
Net Position
Net investment in capital assets
143,014,752
238,249,137
381,263,889
2,207,394
Restricted for:
Perpetual care (nonexpendable)
1,006,353
-
1,006,353
-
Debt service (expendable)
324,747
11,800,667
12,125,414
Capital projects (expendable)
959,047
-
959,047
Federal grant programs (expendable)
1,424,968
1,424,968
Tourism (expendable)
10
-
10
-
Unrestricted
(59,103,807)
13,941,283
(45,162,524)
22,961,014
Total net position
$ 87,626,070
$ 263,991,087
$ 351,617,157
$ 25,168,408
See accompanying notes to the basic financial statements.
15
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Functions/Programs
Primary government:
Governmental activities:
Administrative services
Police
Fire
Parks and recreation
Accounting/finance
Community development
Public works
Health
Traffic and transportation
Multi -Purpose Events Center
Interest and fees on long-term debt
Total governmental activities
Business -type activities:
Regional Airport
Kickapoo Airport
Transit
Sanitation
Water and sewer
Stormwater drainage
Waterpark
Total business -type activities
Total primary government
Component units:
Community development
General revenues and transfers:
Taxes:
Property tax
Sales tax
Franchise fees
Hotel occupancy tax
Beverage tax
Bingo tax
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Prior period adjustments
Net position - ending
Program Revenues
Operating
Charges for Grants and
Expenses Services Contributions
$ 14,837,668
$ 4,030,674
$ 417,549
23,705,432
396,228
219,921
16,455,087
6,866
190,775
5,492,124
447,990
90,642
876,069
-
-
6,400,781
1,006,966
4,235,964
8,117,413
9,510
684,166
5,398,191
995,634
1,999,854
2,555,837
162,184
353,992
4,553,654
1,604,828
19,000
1,910,975
-
2,807,982
90,303,231
8,660,880
11,019,845
2,532,243
864,505
-
1,412,211
1,090,276
-
2,524,244
541,389
1,826,749
9,489,348
12,790,072
-
33,554,406
38,855,845
-
674,839
2,763,120
1,557,158
1,492,787
51,744,449
58,397,994
1,826,749
$ 142,047,680
$ 67,058,874
$ 12,846,594
$ 7,650,101
$ 106,800
$ 498,085
See accompanying notes to the basic financial statements.
16
EXHIBIT A-2
Net (Expense) Revenue and
Changes in Net Position
Capital
Primary Government
Grants and
Governmental
Business -type
Component
Contributions
Activities
Activities
Total
Units
$
$ (10,389,445)
$
$ (10,389,445)
$
(23,089,283)
(23,089,283)
-
(16,257,446)
(16,257,446)
158,125
(4,795,367)
(4,795,367)
-
(876,069)
(876,069)
(1,157,851)
(1,157,851)
(7,423,737)
(7,423,737)
-
(2,402,703)
(2,402,703)
5,191,117
3,151,456
3,151,456
-
(2,929,826)
(2,929,826)
-
897,007
897,007
5,349,242
(65,273,264)
(65,273,264)
-
(1,667,738)
(1,667,738)
(321,935)
(321,935)
(156,106)
(156,106)
-
3,300,724
3,300,724
258,587
5,560,026
5,560,026
1,300,002
3,388,283
3,388,283
-
(64,371)
(64,371)
1,558,589
10,038,883
10,038,883
$ 6,907,831
(65,273,264)
10,038,883
(55,234,381)
$ -
-
-
-
(7,045,216)
31,072,640
31,072,640
563,973
22,403,406
22,403,406
7,467,802
5,414,414
5,414,414
-
1,775,372
1,775, 372
291,091
291,091
32,764
-
32,764
-
20,732
14,884
35,616
126,889
529,526
87,079
616,605
118,231
(2,072,770)
2,072,770
-
-
59,467,175
2,174,733
61,641,908
8,276,895
(5,806,089)
12,213,616
6,407,527
1,231,679
139,248,922
260,034,103
399,283,025
22,343,729
(45,816,763)
(8,256,632)
(54,073,395)
1,593,000
$ 87,626,070
$ 263,991,087
$ 351,617,157
$ 25,168,408
\Uic,4i,q A j'
T E X A S
S/u�Skies Cro�der� 0���'tur�>�%es
EXHIBIT A-3
CITY OF WICHITA FALLS, TEXAS
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
Total
Nonmajor
Governmental
General
Governmental
Funds
Assets
Cash and cash equivalents
$
6,621,220
$ 8,255,896
$
14,877,116
Receivables (net):
Taxes and assessments
709,772
172,828
882,600
Other City funds
10,055,789
-
10,055,789
Government agencies
4,156,324
5,323,836
9,480,160
Other
1,463,241
268,756
1,731,997
Inventory
178,456
67,217
245,673
Prepaid items
31,613
28,066
59,679
Other assets
-
155,018
155,018
Total assets
$
23,216,415
$ 14,271,617
$
37,488,032
Liabilities
Accounts payable
$
1,389,603
$ 870,644
$
2,260,247
Accrued payroll
1,685,150
115,933
1,801,083
Payable to other City funds
-
4,037,429
4,037,429
Payable to government agencies
345,423
98,383
443,806
Other liabilities
3,568,767
814,159
4,382,926
Claims and judgments payable
38,425
-
38,425
Unearned revenue
-
37,236
37,236
Total liabilities
7,027,368
5,973,784
13,001,152
Deferred inflows of resources
Unavailable revenues
1,194,891
41,727
1,236,618
Fund balances
Nonspendable:
Inventory and prepaid items
210,069
95,283
305,352
Restricted for:
Perpetual care
-
1,006,353
1,006,353
Debt service
283,020
283,020
Capital projects
2,712,353
2,712,353
Federal and state grant programs
1,975,831
1,975,831
Tourism
-
10
10
Committed for:
Golf course
-
106,889
106,889
Multi -Purpose Events Center
-
126,751
126,751
Local projects
-
2,500,479
2,500,479
Assigned for:
Subsequent year's expenditures
1,102,026
-
1,102,026
Unassigned
13,682,061
(550,863)
13,131,198
Total fund balances
14,994,156
8,256,106
23,250,262
Total liabilities, deferred inflows of resources
and fund balances
$
23,216,415
$ 14,271,617
$
37,488,032
See accompanying notes to the basic financial statements.
17
UiC4-monamoo-W
i 10 -FOI(5
T E X A S
EXHIBIT A-4
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
Total fund balances - governmental funds (Exhibit A-3)
Amounts reported for governmental activities in the Statement of Net Position (Exhibit A-1)
are different because:
Capital assets used in governmental activities are not financial resources and therefore not
reported in the funds. Capital assets at year-end consist of:
Gross capital assets
Related accumulated depreciation
$ 23,250,262
$ 305,431,374
133,417, 070 172,014, 304
Property taxes receivable and municipal court fines are not available to pay for current
period expenditures and therefore are reported as deferred inflows of resources in the funds.
Long-term liabilities are not due and payable in the current period and therefore
not reported as liabilities in the funds. Long-term liabilities at year-end consist of:
Bonds payable
Capital lease payable
Accrued vacation and sick leave
Claims and judgments payable
Accrued interest
1,236,617
50, 561, 001
3,230,595
8,437,764
24,752
313,596 (62,567,708)
The City's net pension liability and related deferred outflows and inflows related to its
participation in the Texas Municipal Retirement System and the Wichita Falls Firemen's
Relief and Retirement Fund do meet criteria to be reported in the governmental funds
financial statements. These items consist of:
Net pension liabilities
Deferred outflows - pension related items
Deferred inflows - pension related items
47,361,538
(5,437,013)
1,795,922 (43,720,447)
Internal service funds are used by management to charge the costs of duplicating services,
information technology and health insurance claims to the individual funds. The assets and
liabilities of these internal service funds are included with the governmental activities.
Internal service funds are used by management to charge the costs of central garage
services to the individual funds. The assets and liabilities of this fund are included with the
business -type activities. This amount represents the governmental activity portion
of the central garage activity.
Total net position - governmental activities (Exhibit A-1)
See accompanying notes to the basic financial statements.
7,034,628
(9,621,586)
$ 87,626,070
18
EXHIBIT A-5
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Total
Nonmajor
Governmental
General
Governmental
Funds
Revenues
Taxes
$ 58,567,665
$ 2,439,854
$ 61,007,519
Charges for services
2,643,506
718,666
3,362,172
Licenses and permits
1,941,205
-
1,941,205
Fines and forfeitures
2,046,542
216,239
2,262,781
Intergovernmental revenue
5,168
12,395,907
12,401,075
Contributions
359,598
3,652,211
4,011,809
Miscellaneous revenue
1,010,965
2,107,459
3,118,424
Total revenues
66,574,649
21,530,336
88,104,985
Expenditures
Administrative services
13,077,874
1,335,766
14,413,640
Police
21,739,622
258,179
21,997,801
Fire
14,557,568
161,506
14,719,074
Parks and recreation
4,975,932
89,290
5,065,222
Accounting/finance
747,341
-
747,341
Community development
1,886,731
4,554,232
6,440,963
Public works
5,300,485
149,375
5,449,860
Health
2,920,626
2,297,344
5,217,970
Traffic and transportation
1,854,423
541,414
2,395,837
Multi -Purpose Events Center
-
3,747,189
3,747,189
Capital outlay
3,702,550
1,665,569
5,368,119
Debt service - principal
-
3,350,000
3,350,000
Debt service - interest and paying agent fees
-
1,998,760
1,998,760
Total expenditures
70,763,152
20,148,624
90,911,776
Excess of revenues over (under) expenditures
(4,188,503)
1,381,712
(2,806,791)
Other Financing Sources (Uses)
Capital lease proceeds - 47,848 47,848
Transfers in 2,911,455 14,683,455 17,594,910
Transfers out (745,776) (22,589,462) (23,335,238)
Total other financing sources (uses) 2,165,679 (7,858,159) (5,692,480)
Net change in fund balance (2,022,824) (6,476,447) (8,499,271)
Fund balances - beginning 17,016,980 16,325,553 33,342,533
Prior period adjustment - (1,593,000) (1,593,000)
Fund balances - ending $ 14,994,156 $ 8,256,106 $ 23,250,262
See accompanying notes to the basic financial statements.
19
EXHIBIT A-6
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Net change in fund balances - total governmental funds (Exhibit A-5) $ (8,499,271)
Amounts reported for governmental activities in the Statement of Activities (Exhibit A-2)
are different because:
Capital outlays are reported in governmental funds as expenditures. However, in the Statement
of Activities, the cost of those assets are allocated over their estimated useful lives as
depreciation expense. The net difference between the two is as follows:
Capital outlay during the year $
5,632,764
Depreciation expense for the year
6,429,104 (796,340)
Proceeds from the sale of capital assets are recorded as revenues when received in the
governmental funds. In the Statement of Activities, the difference between the proceeds
and the book value of the capital asset is reported as a gain (loss) from sale.
(214,022)
Because property tax receivables and municipal court receivables will not be collected for
several months after the City's fiscal year ends, they are not considered 'available' revenues and
are deferred in the governmental funds. Deferred inflows decreased by this amount this year.
(68,767)
The issuance of long-term debt provides current financial resources to governmental funds.
However, the issuance increases long-term liabilities in the Statement of Net Position. The City
issued a capital lease during 2014-15 in the amount of:
(47,848)
Repayment of long-term debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the Statement of Net Position. Bond and capital
lease principal payments in 2014-15 were:
3,749,572
Included in long-term debt are obligations for accrued vacation and sick leave, and claims
and judgments payable. The changes in these obligations are not included in the
governmental fund financial statements, but are included in the government -wide
financial statements. The changes in these long-term obligations were:
Accrued vacation and sick leave
(824,731)
Claims and judgments payable
12,376 (812,355)
Interest on long-term debt in the Statement of Activities differs from the amount reported
in the governmental funds because interest is recognized as an expenditure in the funds
when it is due, and thus requires the use of current financial resources. In the Statement
of Activities, however, interest expense is recognized as the interest accrues, regardless
of when it is due. The decrease in accrued interest is as follows:
Accrued interest at September 30, 2014 330,011
Accrued interest at September 30, 2015 313,596
16,415
The City participates in two defined benefit pension plans. Contributions to the plan are
expenditures at the fund level when payments are due. At the government -wide level,
pension expenses are recognized on an actuarial basis. Payments were less than the
actuarial expense in the current year.
(115,457)
Internal service funds are used by management to charge the costs of duplicating services,
information technology and health insurance claims to the individual funds. The net
revenues of these internal service funds are included with the governmental activities.
1,808,780
Internal service funds are used by management to charge the costs of central garage
services to the individual funds. The net revenue of this fund is included with the
business -type activities. This amount represents the governmental activity portion
of the central garage activity.
(826,796)
Change in net position of governmental activities (Exhibit A-2) $ (5,806,089)
See accompanying notes to the basic financial statements.
20
1
EXHIBIT A-7
(Page 1 of 2)
Assets
Current assets:
Cash and cash equivalents
Restricted cash and cash equivalents
Receivables (net):
Customer and trade
Government agencies
Other
Inventory
Prepaid items
Total current assets
Long-term assets:
Capital assets, net of accumulated
depreciation
Total long-term assets
Total assets
Deferred Outflows of Resources
Pension -related
Deferred losses on bond refundings
Total deferred outflows of resources
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2015
Enterprise Funds
Nonmajor
Water and Regional Enterprise
Sewer Sanitation Airport Funds
Internal
Total Service Funds
$ 3,046,398
$ 4,240,264
$ 260,967
$ 4,694,170
$ 12,241,799
$ 6,348,823
49,129,799
-
357,341
-
49,487,140
3,307,799
6,041,357
1,661,634
-
362,977
8,065,968
-
71,859
-
-
1,870,011
1,941,870
-
41,235
53,836
45,138
43,798
184,007
986,550
1,067,130
-
-
28,766
1,095,896
733,466
1,889
-
32,220
4,498
38,607
55,037
59,399,667
5,955,734
695,666
7,004,220
73,055,287
11,431,675
236,811,354
8,611,256
47,142,988
41,065,341
333,630,939
19,297,955
236,811,354
8,611,256
47,142,988
41,065,341
333,630,939
19,297,955
296,211,021
14,566,990
47,838,654
48,069,561
406,686,226
30,729,630
950,603 374,490 9,534 165,054 1,499,681 336,057
2,128,967 - - - 2,128,967 -
3,079,570 374,490 9,534 165,054 3,628,648 336,057
See accompanying notes to the basic financial statements.
21
EXHIBIT A-7
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2015
Enterprise Funds
Nonmajor
Water and
Regional
Enterprise
Internal
Sewer
Sanitation
Airport
Funds
Total
Service Funds
Liabilities
Current liabilities:
Accounts payable - trade
2,772,930
35,752
18,107
121,477
2,948,266
416,196
Accrued payroll
256,005
100,724
6,538
51,275
414,542
94,829
Accrued vacation and sick leave
420,973
176,891
3,748
47,538
649,150
157,003
Payable to other City funds
139,435
-
-
2,572,872
2,712,307
3,306,052
Payable to government agencies
-
93,117
431
4,418
97,966
-
Estimated health claims payable
-
-
-
-
-
930,000
Other liabilities
178,540
28,138
323,513
530,191
370
Payable to U.S. Government - current
maturity
36,548
-
-
36,548
-
Capital leases - current maturities
25,378
25,378
245,326
Revenue bonds - current maturities
8,524,452
8,524,452
-
Accrued interest - revenue bonds
742,419
-
-
-
742,419
-
Total current liabilities
13,096,680
406,484
56,962
3,121,093
16,681,219
5,149,776
Long-term liabilities:
Payable to U.S. Government, less
current maturities
401,104
-
-
-
401,104
-
Capital leases, less current maturities
202,814
202,814
249,219
Revenue bonds, less current maturities
139,617,573
-
139,617,573
-
Estimated liability for landfill closure and
post -closure care costs
-
4,393,786
4,393,786
Customer deposits
2,942,257
-
2,942,257
-
Net pension liability
5,080,127
2,001,315
50,953
882,070
8,014,465
1,795,925
Total long-term liabilities
148,243,875
6,395,101
50,953
882,070
155,571,999
2,045,144
Total liabilities
161,340,555
6,801,585
107,915
4,003,163
172,253,218
7,194,920
Deferred Inflows of Resources
Pension -related
245,173
96,586
2,459
42,570
386,788
86,673
Net Position
Net investment in capital assets
124,149,880
8,611,256
47,142,988
41,065,341
220,969,465
18,803,410
Restricted for debt service
11,800,667
-
-
-
11,800,667
-
Unrestricted
1,754,316
(567,947)
594,826
3,123,541
4,904,736
4,980,684
Total net position
$ 137,704,863
$ 8,043,309
$ 47,737,814
$ 44,188,882
237,674,868
$ 23,784,094
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds
26,316,219
Net position of business type activities
$ 263,991,087
See accompanying notes to the basic financial statements.
22
�C l ct A rj'
T E X A S
B/cr�Skies Crolae i oyTVTr MnIAes
EXHIBIT A-8
Operating revenues:
Charges for services
Rents, concessions and other
Contributions
Total operating revenues
Operating expenses:
Personnel services
Supplies and materials
Maintenance and repairs
Utilities and other services
Insurance and contract support
Other expenses
Depreciation and amortization
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Interest income
Gain/(loss) on sale/abandonment of capital
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Enterprise Funds
Nonmajor
Water and Regional Enterprise
Sewer Sanitation Airport Funds
Total
Internal
Service Funds
$ 38,680,712
$ 12,735,141
$ -
$ 4,272,269
$ 55,688,122
$ 13,697,095
175,133
54,931
864,505
1,615,303
2,709,872
1,539,216
-
-
-
-
-
11,986,245
38,855,845
12,790,072
864,505
5,887,572
58,397,994
27,222,556
9,198,493
3,695,787
181,151
2,122,217
15,197,648
3,196,446
2,432,298
331,411
12,965
1,156,508
3,933,182
3,855,141
1,634,259
346,391
7,224
443,689
2,431,563
2,642,260
4,945,563
3,801,986
293,898
878,314
9,919,761
322,933
799,108
60,421
7,736
121,095
988,360
13,917,923
1,467,952
399,891
113,593
357,740
2,339,176
2,057,231
7,431,495
251,688
966,226
999,726
9,649,135
4,148,875
27,909,168
8,887,575
1,582,793
6,079,289
44,458,825
30,140,809
10,946,677
3,902,497
(718,288)
(191,717)
13,939,169
(2,918,253)
8,549 3,133 373 2,829
assets
51,376
(998,245)
Interest expense and paying agent fees
(5,519,369)
-
Bond issuance costs
(439,619)
-
Intergovernmental operating grants
-
1,826,749
Total nonoperating revenues (expenses)
(5,950,439)
54,509
(997,872)
1,829,578
Income (loss) before contributions and transfers
4,996,238
3,957,006
(1,716,160)
1,637,861
Capital contributions
258,587
-
-
1,300,002
Transfers in
1,203,393
8,529,250
62,298
Transfers out
(1,602,322)
(5,136,777)
(404,639)
(947,241)
Change in net position
4,855,896
(1,179,771)
6,408,451
2,052,920
Net position - beginning
137,444,931
11,033,659
41,375,460
42,933,965
Prior period adjustment
(4,595,964)
(1,810,579)
(46,097)
(798,003)
Net position - ending
$ 137,704,863
$ 8,043,309
$ 47,737,814
$ 44,188,882
Adjustment to reflect the consolidation of internal service funds
activities
related to enterprise funds
Change in net position of business type
activities
See accompanying notes to the basic financial statements.
23
14,884
(946,869)
(5,519,369)
(439,619)
1,826,749
(5,064,224)
8,874,945
1,558,589
9,794,941
(8,090,979)
12,137,496
130,960
$ 12,268,456
(88,889)
95,277
(11,557)
(5,169)
(2,923,422)
4,348,366
(312,000)
1,112,944
24,295,914
(1,624,764)
$ 23,784,094
EXHIBIT A-9
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Enterprise Funds
Nonmajor
Water and
Regional
Enterprise
Internal
Sewer
Sanitation
Airport
Funds
Total
Service Funds
Cash flows from operating activities:
Received from customers and users
$ 36,973,976
$ 12,559,363
$ 841,964
$ 5,830,408
$ 56,205,711
$ 3,888,107
Received from interfund charges
-
-
-
-
22,323,768
Other operating receipts
49,630
Payments to suppliers
(10,192,347)
(2,029,449)
(422,992)
(3,868,131)
(16,512,919)
(22,645,420)
Payments for interfund charges
(2,255,496)
(3,971,914)
(17,953)
(346,146)
(6,591,509)
(394,081)
Payments to employees
(6,761,524)
(2,657,674)
(151,259)
(1,713,122)
(11,283,579)
(2,380,058)
Net cash provided (used) by operating activities
17,764,609
3,900,326
249,760
(96,991)
21,817,704
841,946
Cash flows from noncapital financing activities:
Intergovernmental operating grants
-
-
-
444,667
444,667
3,205,126
Interfund loans received (repaid)
85,067
-
1,732,213
1,817,280
(15,720)
Transfers in from other funds
1,203,393
8,529,250
62,298
9,794,941
4,348,366
Transfers out to other funds
(1,602,322)
(5,136,777)
(404,639)
(947,241)
(8,090,979)
(312,000)
Net cash provided (used) by noncapital financing
activities
(313,862)
(5,136,777)
8,124,611
1,291,937
3,965,909
7,225,772
Cash flows from capital and related financing activities:
Capital contributions
-
2,005,033
2,005,033
-
Acquisition and construction of capital assets
(4,715,722)
(1,025,469)
(8,553,321)
(4,780,272)
(19,074,784)
(4,576,707)
Proceeds from sale of capital assets
-
81,423
81,423
189,593
Proceeds from issuance of long-term debt
33,545,000
-
33,545,000
-
Payment of bond issuance costs
(439,619)
(439,619)
Principal paid on long-term debt
(7,402,334)
(7,402,334)
(241,554)
Interest and fees paid on long-term debt
(5,576,103)
(5,576,103)
(11,557)
Net cash provided (used) for capital and
related financing activities
15,411,222
(944,046)
(8,553,321)
(2,775,239)
3,138,616
(4,640,225)
Cash flows from investing activities:
Interest on investments
8,549
3,133
373
2,829
14,884
(88,889)
Net cash (used) provided by investing activities
8,549
3,133
373
2,829
14,884
(88,889)
Net Increase (Decrease) in Cash and Cash Equivalents
32,870,518
(2,177,364)
(178,577)
(1,577,464)
28,937,113
3,338,604
Cash and Cash Equivalents - Beginning
19,305,679
6,417,628
796,885
6,271,634
32,791,826
6,318,018
Cash and Cash Equivalents - Ending
$ 52,176,197
$ 4,240,264
$ 618,308
$ 4,694,170
$ 61,728,939
$ 9,656,622
Reconciliation of cash and cash equivalents on the
balance sheet to the statement of cash flows:
Cash and cash equivalents
$ 3,046,398
$ 4,240,264
$ 260,967
$ 4,694,170
$ 12,241,799
$ 6,348,823
Restricted assets - cash and cash equivalents
49,129,799
-
357,341
-
49,487,140
3,307,799
Total cash and cash equivalents at end of year
$ 52,176,197
$ 4,240,264
$ 618,308
$ 4,694,170
$ 61,728,939
$ 9,656,622
See accompanying notes to the basic financial statements.
24
EXHIBIT A-9
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Enterprise Funds
Nonmajor
Water and Regional Enterprise Internal
Sewer Sanitation Airport Funds Total Service Funds
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities:
Operating income (loss)
$ 10,946,677
$ 3,902,497
$ (718,288)
$ (191,717)
$ 13,939,169
$ (2,918,253)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation and amortization
7,431,495
251,688
966,226
999,726
9,649,135
4,148,875
Customer deposits received
78,225
-
-
-
78,225
-
(Increase) decrease in assets and deferred
outflows:
Receivables:
Customer and trade
(1,964,008)
(176,873)
(82,818)
(2,223,699)
Other
3,914
(53,836)
(22,541)
25,654
(46,809)
(958,592)
Inventory
18,163
48,765
66,928
49,240
Prepaid items
(1,889)
(4,576)
(22)
(6,487)
198,562
Deferred outflows - pension -related
(318,168)
(125,343)
(3,191)
(55,243)
(501,945)
(112,478)
Increase (decrease) in liabilities and deferred
inflows:
Accounts payable - trade
1,374,752
(134,223)
16,987
(864,957)
392,559
47,087
Accrued payroll
35,552
12,358
4,082
5,223
57,215
11,408
Accrued vacation and sick leave
13,647
34,511
(3,170)
8,930
53,918
9,841
Estimated health claims payable
-
-
-
-
-
334,460
Payable to government agencies
-
24,751
121
460
25,332
-
Other liabilities
49,347
-
13,138
(7,817)
54,668
(2,459)
Estimated liability for landfill closure
-
126,621
-
126,621
Net pension liability
(148,271)
(58,411)
(1,487)
(25,745)
(233,914)
(52,418)
Deferred inflows - pension -related
245,173
96,586
2,459
42,570
386,788
86,673
Total adjustments
6,817,932
(2,171)
968,048
94,726
7,878,535
3,760,199
Net cash provided (used) by
operating activities
$ 17,764,609
$ 3,900,326
$ 249,760
$ (96,991)
$ 21,817,704
$ 841,946
Noncash capital and financing activities:
Capital assets received from developers
$ 258,587
$ -
$ -
$ -
$ 258,587
$ -
See accompanying notes to the basic financial statements.
25
EXHIBIT A-10
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
Assets
Cash and cash equivalents
Liabilities
Other liabilities
SEPTEMBER 30, 2015
Agency
Fund
$ 117,713
$ 117,713
See accompanying notes to the basic financial statements.
26
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the City of Wichita Falls, Texas (City) conform to
accounting principles generally accepted in the United States of America (GAAP) applicable to
state and local governments. GAAP for local governments includes those principles prescribed by
the Governmental Accounting Standards Board (GASB), which includes all statements and
interpretations of the National Council on Governmental Accounting (NCGA) unless modified by
the GASB, and those principles prescribed by the American Institute of Certified Public
Accountants in the publication entitled Audits of State and Local Governmental Units. The
following is a summary of the more significant policies and practices used by the City.
A. Reportinq Entitv
The City is a municipal corporation governed by an elected Mayor and six -member City Council.
As required by Governmental Accounting Standards Board (GASB) Statement No. 61, these
financial statements present the City and its component units, entities for which the City is
considered to be financially accountable. Blended component units, although legally separate
entities, are in substance, part of the City's operations and data from these units are combined
with data presented by the City. A discretely presented component unit, on the other hand, is
reported in a separate column in the basic financial statements to emphasize it is legally separate
from the City. Each blended and discretely presented component unit has a September 30th year
end.
Blended Component Unit
Employee Benefit Trust Fund. On October 1, 1983, an "Agreement and Declaration of Trust"
was made and entered into between the City and the Employee Benefit Trust Committee,
acting as Trustee to administer the Employee Benefit Trust (Trust). The Trust Committee
consists of four Trustees selected by the City, who may, but need not be, beneficiaries of the
health and welfare program funded by the Trust, and/or officers or employees of the City. The
purpose of the Trust is to provide health and welfare benefits, which may include life,
accidental death and dismemberment, disability, medical and dental insurance, and any other
benefits as determined by the Trustee Committee. The Trust is funded through contributions
by the City and employees who choose to participate. It may be terminated in writing, at any
time, by either party. The Employee Benefit Trust Fund is presented in the accompanying
financial statements as an internal service fund.
Discretelv Presented Component Units
The Wichita Falls Economic Development Corporation. The Wichita Falls Economic
Development Corporation is a non-profit corporation formed in May 1997 for the purpose of
increasing employment opportunities, primarily through assisting qualifying enterprises with
funds provided by a portion of the local sales tax. Assistance may be in the form of incentive
grants, loans or leases which call for discounted rates or rebates for job development. The
Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A.
Since the City Council appoints its Board of Directors, approves its budgets, and exercises
final authority over its operations, the Wichita Falls Economic Development Corporation is
considered to be part of the City's reporting entity and presented in the accompanying basic
financial statements as a discretely presented component unit. The Wichita Falls Economic
Development Corporation utilizes full accrual accounting.
27
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
The Wichita Falls 4B Sales Tax Corporation. The Wichita Falls 413 Sales Tax Corporation is a
non-profit corporation formed in May 1997 for the purpose of increasing employment
opportunities and for public improvement projects such as parks, auditoriums, learning
centers, open space improvements, athletic and exhibition facilities, and the related
maintenance and operating costs of such projects. The Corporation operates under the
authority of Vernon's Civil Statutes, Article 5190.6, Section 4B. Since the City Council appoints
its Board of Directors, approves its budgets, and exercises final authority over its operations,
the Wichita Falls 4B Sales Tax Corporation is considered to be part of the City's reporting
entity and presented in the accompanying basic financial statements as a discretely presented
component unit. The Wichita Falls 4B Sales Tax Corporation utilizes full accrual accounting.
Wichita Falls Reinvestment Zone #2. On August 16, 2005, the City of Wichita Falls, Texas,
with the advice and consent of the Wichita Falls Independent School District and Wichita
County, approved the creation of the Wichita Falls Reinvestment Zone #2 (Zone). This Zone is
permitted by Article 1066e of the State of Texas Tax Increment Financing Act passed in 1981.
The area of the Zone is approximately 236 acres and includes the Lawrence Road area of the
City. The purpose of the Zone is to capture increments of growth in real property values in the
Zone from base values established on January 1, 2004, and use the ad valorem taxes derived
from these increments to contribute to the zoned area. Tax funds derived from the increment
can only be spent for public improvements in the Zone or for the payment of debt service on
bonds issued to provide funds for public improvements. The Zone terminates on December
31, 2025, or when all debt has been paid if later. After all costs have been paid at the end of
the tax increment financing period, any money remaining is to be remitted to the taxing
entities. Since the City Council appoints a majority of its Board, approves its budget, and
exercises final authority over its operations, the Wichita Falls Reinvestment Zone #2 is
considered to be part of the City's reporting entity and presented in the accompanying basic
financial statements as a discretely presented component unit. The Zone utilizes full accrual
accounting.
Wichita Falls Reinvestment Zone #3. On September 1, 2009, the City of Wichita Falls, Texas,
with the advice and consent of the Wichita Falls Independent School District and Wichita
County, approved the creation of the Wichita Falls Reinvestment Zone #3 (Zone). This Zone is
permitted by Article 1066e of the State of Texas Tax Increment Financing Act passed in 1981.
The area of the Zone is approximately 630 acres and includes a significant portion of the
Eastside Neighborhood. The purpose of the Zone is to capture increments of growth in real
property values in the Zone from base values established on January 1, 2009, and use the ad
valorem taxes derived from these increments to contribute to the zoned area. Tax funds
derived from the increment can only be spent for public improvements in the Zone or for the
payment of debt service on bonds issued to provide funds for public improvements. The Zone
terminates on December 31, 2029. After all costs have been paid at the end of the tax
increment financing period, any money remaining is to be remitted to the taxing entities. Since
the City Council appoints a majority of its Board, approves its budget, and exercises final
authority over its operations, the Wichita Falls Reinvestment Zone #3 is considered to be part
of the City's reporting entity and presented in the accompanying basic financial statements as
a discretely presented component unit. The Zone utilizes full accrual accounting.
RE
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
No separate audited financial statements are available for the City's blended and discretely
presented component units. Complete financial statements for the individual component units
may be obtained from the City's Assistant City Manager/CFO at 1300 7th Street, Wichita Falls,
Texas.
Excluded From the Reporting Entitv
Wichita Falls Firemen's Relief and Retirement Fund. The Wichita Falls Firemen's Relief and
Retirement Fund was established and is controlled through various State of Texas legislative
enactments. This Fund is administered locally by a seven -member board, independent of the
City Council. City management and the City Council do not influence or control the
administrative and financial affairs of the Fund, and the assets of the Fund are not the
property of the City. The seven -member Board of Trustees, composed of the Mayor, the
Finance Manager from the City's Finance Department, three firefighters elected by a majority
vote of the firefighters and two citizens, who are not employees or officers of the City and are
chosen by the unanimous vote of the first five Trustees, are subject to the administrative
supervision of and report to the State Firemen's Pension Board. The activities of the
Firemen's Relief and Retirement Fund, in the City's judgment, are not a part of the City and
thus are excluded from the accompanying financial statements.
B. Basis of Presentation
Government -wide financial statements
The basic financial statements include both government -wide (based on the City as a whole) and
fund financial statements. The government -wide financial statements (i.e., the statement of net
position and the statement of activities) report information on all non -fiduciary activities of the
primary government and its component units. For the most part, the effect of interfund activity has
been removed from these statements. However, interfund services provided and used are not
eliminated in the process of consolidation. Governmental activities, which normally are supported
by taxes and intergovernmental revenues, are reported separately from business -type activities,
which rely to a significant extent on fees and charges for support.
The government -wide statement of activities demonstrates the degree to which the direct
expenses of a functional category (police, public works, etc.) or segment are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include 1) charges to customers or applicants who purchase, use or
directly benefit from goods, services or privileges provided by a given function or segment, 2)
grants and contributions that are restricted to meeting operational requirements of a particular
function or segment, and 3) grants and contributions that are restricted to meeting the capital
requirements of a particular function or segment. Taxes and other items not included among
program revenues are reported instead as general revenues.
29
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
Fund financial statements
Separate fund -based financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government -wide financial
statements. Major individual governmental funds and major enterprise funds are reported as
separate columns in the fund financial statements. GASB Statement No. 34 sets forth minimum
criteria (percentage of assets (combined with deferred outflows of resources), liabilities (combined
with deferred inflows of resources), revenues or expenditures/expenses of either fund category for
governmental and enterprise) for the determination of major funds. The major governmental fund
is the General Fund. The major enterprise funds are the Water and Sewer Fund, the Sanitation
Fund and the Regional Airport Fund. Non -major funds are combined in a column in the fund
financial statements. Non -major funds are detailed in the combining section of the statements.
Internal service funds, which traditionally provide services primarily to other funds of the
government, are presented in the summary form as part of the proprietary fund financial
statements. Because the principal users of internal services are the City's governmental and
business -type activities, financial statements of internal service funds are allocated (based on the
percentage of goods or services provided) between the governmental and business -type activities
when presented at the government -wide level.
The government -wide focus is more on the sustainability of the City as an entity and the change in
aggregate financial position resulting from the activities of the fiscal period. The focus of the fund
financial statements is on the major individual funds of the governmental and business -type
categories. Each presentation provides valuable information that can be analyzed and compared
to enhance the usefulness of the information.
C. Measurement focus, basis of accounting and financial statement presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary funds. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year in which
they are levied. Grants and similar items are recognized as soon as all eligibility requirements
imposed by the provider have been met.
Government fund -level 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 government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal 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 tax, franchise fees, and sales tax associated with the current fiscal period are all
susceptible to accrual and have been recognized as revenues of the current fiscal period. All of the
revenue items are considered to be measurable and available only when cash is received.
30
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. All general tax revenues and other
receipts that are not allocated by law or contractual agreement to some other fund are
accounted for in this fund. From the fund are paid general operating costs, fixed charges, and
capital improvement costs that are not paid through other funds.
Other governmental funds are a summarization of all the non -major governmental funds.
The City reports the following major proprietary funds:
The Water and Sewer Fund accounts for the water and sewer utility services provided to
residents of the City. Activities necessary to provide such services are accounted for in the
fund, including, but not limited to, administration, operations, maintenance, finance and related
debt service.
The Sanitation Fund accounts for refuse collection services to the residents of the City as well
as the operations of the City's landfill. Activities necessary to provide such services are
accounted for in the fund, including, but not limited to, administration, operations and
maintenance.
The Regional Airport Fund accounts for the operations of the Wichita Falls Regional Airport.
Operational activities, including administration, operations and maintenance, of the airport are
accounted for in this fund.
Other enterprise funds are a summarization of all of the non -major proprietary funds.
The City additionally reports the following fund types:
Internal service funds are used to account for the financing of materials and services provided
by one department of the City to other departments of the City on a cost -reimbursement basis.
The City uses internal service funds to report the activities of fleet maintenance, duplicating
services, employee health and life insurance, and information technology.
An agency fund is used to account for any unclaimed vendor or payroll checks that will be
escheated to the State if they remain unclaimed. These funds are held on a purely custodial
basis.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expense 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 City's water and sewer, sanitation, transit, and airport funds are
charges to customers for services. Operating expenses for the enterprise funds and internal
service funds include the cost of sales and services, administrative expenses and depreciation on
capital assets. All revenues not meeting this definition are reported as nonoperating revenues and
expenses.
31
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
When both restricted and unrestricted resources are available for use, it is the government's policy
to use restricted resources first, then unrestricted resources as they are needed.
Capital improvement assessments are recorded as revenues in the fiscal period when the
assessment becomes both measurable and available to finance expenditures of the fiscal period.
Assessment revenues are considered measurable and available when collected by the City and
recognized as revenue at that time. Payments for capital improvement assessments received in
advance of the levy are reflected as deferred revenue.
D. Nonexchange Transactions
In a nonexchange transaction, a government gives (or receives) value without directly receiving (or
giving) equal value in return. The statement defines when the City should recognize revenue or
expense for nonexchange transactions involving financial or capital resources and how to account
for timing and purpose restrictions. The timing of recognition depends on whether a nonexchange
transaction is (a) a derived tax revenue (b) an imposed nonexchange revenue transaction or (c) a
government -mandated or voluntary nonexchange transaction. Under this standard, revenue
transactions with purpose restrictions are recorded as restricted resources until the purpose
restrictions are met.
Nonexchange transactions include the following classifications:
• Derived tax revenues result from assessments imposed by governments on exchange
transactions.
• Imposed nonexchange revenues result from assessments by governments on
nongovernmental entities, other than assessments on exchange transactions.
• Government -mandated nonexchange transactions occur when a government at one level
provides resources to a government at another level and require that government to use
them for a specific purpose or purposes established in the provider's enabling legislation.
• Voluntary nonexchange transactions result from legislative or contractual agreements, other
than exchanges, entered into willingly by two or more parties. Examples of the City's
voluntary nonexchange transactions include capital grants, state shared revenue and
private donations.
Providers of government -mandated nonexchange transactions and voluntary nonexchange
transactions should recognize liabilities and expenses/expenditures and recipients should
recognize receivables (or decrease in liabilities) and revenue when all applicable eligibility
requirements, including time requirements are met.
All nonexchange transactions occurring in governmental fund types are also subject to the
modified accrual revenue recognition criteria. Accordingly, assets and revenue should not be
recognized unless measurable and available.
32
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
E. Assets, liabilities and net position or fund balances
1. Cash, cash equivalents and investments
The City'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 are carried at fair value. Fair value is determined as the price at which two
willing parties would complete an exchange. Interest earned on investments is recorded
in the funds in which the investments are recorded.
2. Inventory and Prepaid Items
Inventories of the general and proprietary funds consist of supplies and various materials
used for the maintenance of capital assets. The consumption method is used to account
for these inventories. Under this method, inventory acquisitions are recorded in inventory
accounts initially and charged as expenditures when used. Inventories are stated at
average cost.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government -wide and fund financial statements.
3. Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets
(e.g. roads, bridges, sidewalks and similar items), are reported in the applicable
governmental or business -like activities columns in the government -wide financial
statements. The City defines capital assets as assets with an initial, individual cost of
more than $1,000 and an estimated useful life in excess of one year. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at estimated fair market value at the time received.
Capital assets are depreciated using the straight line method over the following useful
lives:
Assets Years
Buildings, systems and improvements 20-59 years
Infrastructure 8-100 years
Machinery, vehicles and other equipment 3 - 25 years
Furniture and equipment 3 - 10 years
For business -type activities' capital assets, interest is capitalized on construction costs
incurred during the year at an average interest rate on borrowed funds (revenue bonds) in
accordance with generally accepted accounting principles.
33
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
For the fiscal year ended September 30, 2015, the City's business -type activities incurred
a total of $5,530,926 of interest costs. This entire amount was charged to expense as
there was no capitalized interest in the current year.
Contributions of funds from federal, state, or local grants restricted for the purpose of
purchasing plant and equipment are recorded as revenue when received. The cost of
water and sewer lines installed by developers is valued by the contractor and recorded as
nonoperating revenue in the Water and Sewer Fund.
4. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element
represents a consumption of net position that applies to a future period(s) and so will not
be recognized as an outflow of resources (expense/expenditure) until then. Certain
amounts related to the City's participation in pension plans (See Note 8) are reported in
this category, along with deferred losses on bond refunding.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflow of resources. This separate financial statement element
represents an acquisition of net position that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time. The City has only two types
of items that qualify for reporting in this category. Property taxes receivable ($784,680)
and municipal court fines receivable ($451,937) are unavailable and therefore cannot be
recognized as revenue in the governmental funds until they are received. There are also
certain items related to the City's participation in pension plans (See Note 8) that are
reported in this category.
5. Lonq-Term Obliqations
Long-term debt and other obligations for general government purposes are recorded in the
government -wide statement of net assets. Long-term debt and other obligations financed by
proprietary funds are reported as liabilities in the appropriate funds.
For the government -wide financial statements and proprietary fund types, bond premiums
and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the straight-line method in the government -wide financial statements. Bonds
payable are reported net of the applicable bond premium or discount. Issuance costs are
reported as deferred bond issue costs and amortized over the term of the related debt. In
addition, gains or losses on proprietary fund bond refunding are amortized over the term of
the lesser of the new bonds or the refunded bonds' life using the effective interest method. In
the governmental fund financials, bond proceeds are reported as another financing source.
Bond premiums and discounts in governmental funds are also recognized currently as other
financing sources or uses. Issuance costs, even if withheld from the actual net proceeds
received, are reported as debt service expenditures.
34
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
6. Fund Balances — Governmental Funds
Fund balances of the governmental funds are classified as follows
Nonspendable Fund Balance — represents amounts that cannot be spent because they
are either not in spendable form (such as inventory or prepaid insurance) or legally
required to remain intact (such as notes receivable or principal of a permanent fund).
Restricted Fund Balance — represents amounts that are constrained by external parties,
constitutional provisions or enabling legislation.
Committed Fund Balance — represents amounts that can only be used for a specific
purpose by adoption of an ordinance by the City Council. Committed amounts cannot be
used for any other purpose unless the governing board removes those constraints through
the adoption of another ordinance. Committed fund balance amounts differ from restricted
balances in that the constraints on their use do not come from outside parties,
constitutional provisions, or enabling legislation, but rather from inside the City.
Assigned Fund Balance — represents amounts which the City intends to use for a specific
purpose, but that do not meet the criteria to be classified as restricted or committed. The
City Council has by resolution authorized the Assistant City Manager/CFO to assign fund
balance. Specific amounts that are not restricted or committed in a special revenue,
capital projects, debt service or permanent fund are assigned for purposes in accordance
with the nature of their fund type or the fund's primary purpose. Assignments within the
General Fund convey that the intended use of those amounts is for a specific purpose that
is narrower than the general purposes of the City itself. Unlike commitments, assignments
only exist temporarily. Therefore additional action does not normally have to be taken for
the removal of an assignment.
Unassigned Fund Balance — represents amounts which are unconstrained in that they
may be spent for any purpose. Only the General Fund reports a positive unassigned fund
balance. Other governmental funds might report a negative balance in this classification
because of overspending for specific purposes for which amounts had been restricted,
committed or assigned.
When an expenditure is incurred for a purpose for which both restricted and unrestricted
fund balance is available, the City considers restricted funds to have been spent first.
When an expenditure is incurred for which committed, assigned, or unassigned fund
balances are available, the City considers amounts to have been spent first out of
committed funds, then assigned funds, and finally unassigned funds.
7. Federal and State Grants
Grants and shared revenues are generally accounted for within the appropriate fund of the
City to be financed by such grants or shared revenues. Federal grants include Community
Development Block Grant, Section 8 Housing Assistance, Home Investment Partnership
Agreement Program, and numerous health -related grants.
35
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
Each Federal grant is accounted for in a separate special revenue fund. State grant
revenues received for purposes normally financed through the general government are
accounted for within the General Fund.
8. Transactions Between Funds
Outstanding balances between funds are reported as "due to/from other City funds." Any
residual balances between governmental activities and business -type activities are reported
in the government -wide statements as "internal balances." Nonrecurring or non -routine
transfers of equity between funds are accounted for as transfers.
9. Vacation and Sick Leave
All full-time employees accumulate vacation benefits based on length of service up to 20
days per year. The maximum allowable accumulation is 35 days. Upon leaving the
employment of the City, employees will be paid for unused vacation days which they have
accrued.
Sick leave is earned at the rate of 4.62 hours per pay period up to a maximum of ninety
days. Additionally, police officers and firefighters may accumulate an unlimited number of
sick leave days while employed with the City. Upon termination, police officers and
firefighters are compensated for up to 720 hours and 1,080 hours, respectively.
10. Risk Manaaement
The government is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters for which the
government carries commercial insurance. For insured programs, there have been no
significant reductions in insurance coverage. Settlement amounts have not exceeded
insurance coverage for the current year or the three prior years.
The City maintains a group health insurance plan for employees and dependents which is
partially self -insured by the City. A group life insurance plan is maintained through an
insurance company. Contributions to the plans are provided for by both the City and
participating employees. These contributions are recognized as revenues in the internal
service fund used to account for these plans. The contributions made by the City are
recorded as expenditures or expenses of the various funds as appropriate.
Liabilities are reported when it is probable that a loss has occurred and the amount of the
loss can be reasonably estimated. An excess coverage insurance policy covers individual
claims in excess of $500,000. Liabilities include an amount for claims that have been
incurred but not reported. Claim liabilities are calculated considering the effects of
inflation, recent claim settlement trends including frequency and amount of pay -outs and
other economic and social factors.
0
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
The City is also self -insured up to $250,000 for workers' compensation claims. Such
claims are processed by a third party administrator. The City's estimated liability for
workers' compensation claims payable at September 30, 2015 is based on management's
estimate of probable losses in the amount of $63,177. The payment dates of such claims
cannot be precisely determined, but are expected to be paid on a periodic basis over the
next few years. Accordingly, the long-term liability has been recorded in the government -
wide financial statements. $38,425 is believed by City management to be currently
payable from available resources and is recorded in the General Fund.
The following represents changes in the amount of claims liabilities for the City from
October 1, 2013 to September 30, 2015:
Health
Workers'
Care
Compensation
Liability balance, October 1, 2013
$ 528,397
$ 138,580
Incurred claims/adjustments
9,021,053
517,796
Claim payments
( 8,953,910)
( 528.630)
Liability balance, September 30, 2014
595,540
127,746
Incurred claims/adjustments
13,251,044
503,245
Claim payments
( 12.916,584)
( 567,814)
Liability balance, September 30, 2015
$ 930.000
$ 63.177
F. Pension Plan
For purposes of measuring the net pension liability, deferred outflows of resources, and deferred
inflows of resources related to pensions, and pension expense, information about the Fiduciary
Net Position of the Texas Municipal Retirement System (TMRS) and the Wichita Falls Firemen's
Relief and Retirement Fund (WFFRRF) and additions to/deductions from Fiduciary Net Position
have been determined on the same basis as they are reported to TMRS and WFFRRF. For this
purpose, plan contributions are recognized in the period that compensation is reported for the
employee, which is when contributions are legally due. Benefit payments and refunds are
recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
G. New Accountinq Standards Adopted
The City adopted five new statements of financial accounting standards issued by the GASB.
Two of these statements had a material effect on the City's financial statements: GASB
Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB
Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made
Subsequent to the Measurement Date — an amendment of GASB Statement No. 68.
37
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
Statement No. 68 establishes standards of accounting and financial reporting, but not funding or
budgetary standards, for defined benefit pensions and defined contribution pensions provided to
the employees of state and local government employers through pension plans that are
administered through trusts or equivalent arrangements. Statement No. 68 replaces the
requirements of Statement No. 27, Accounting for Pensions by State and Local Government
Employers, as well as the requirements of Statement No. 50, Pension Disclosures, as they
relate to pensions that are provided through pension plans within the scope of the Statement.
The requirements of Statement No. 68 apply to the financial statements of all state and local
governmental employers whose employees are provided with pensions through pension plans
that are administered through trusts or equivalent arrangements as described above, and to the
financial statements of state and local governmental non -employer contributing entities that have
a legal obligation to make contributions directly to such pension plans. Statement No. 68
establishes standards for measuring and recognizing assets, liabilities, deferred outflows of
resources, deferred inflows of resources, and expense/expenditures related to pensions. Note
disclosure and Required Supplementary Information requirements about pensions are also
addressed. For defined benefit pension plans, this Statement identifies the methods and
assumptions that should be used to project benefit payments, discount projected benefit
payments to their actuarial present value, and attribute that present value to periods of employee
service.
The adoption of Statement No. 68 has no impact on the City's governmental fund financial
statements, which continue to report expenditures in the contribution amount determined
legislatively for each plan. The calculation of pension contributions is unaffected by the change.
However, the adoption has resulted in the restatement of the City's beginning net position for the
fiscal year 2014 government -wide and proprietary fund financial statements to reflect the
reporting of net pension asset, deferred outflows of resources, and deferred inflows of resources
for its qualified pension plan and the recognition of pension expense in accordance with the
provisions of Statement No. 68.
Statement No. 71 amends Statement No. 68 to require that, at transition, a government
recognize a beginning deferred outflow of resources for its pension contributions, if any, made
subsequent to the measurement date of the beginning net pension liability. Since the
measurement date of the pension plan was different than the City's year-end, the effects from
the City's reported contributions to the plan subsequent to the respective measurement date of
the plan is an increase in deferred outflows of resources and a decrease in net position.
Note 2 - COMPLIANCE AND ACCOUNTABILITY
Finance -Related Leoal and Contractual Provisions
The City had no violations of finance -related legal and contractual provisions for the year ended
September 30, 2015.
Deficit Fund Balances — Individual Funds
The Airport Improvement Grant Fund, a special revenue fund, had a deficit fund balance of $550,863
as of September 30, 2015. This deficit occurred because the City only requests grant funds as
disbursements are made. This deficit will be alleviated within a year.
38
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 3 - DEPOSITS AND INVESTMENTS
Deposits
All of the City's demand and time depository accounts are held in local banking institutions under
the terms of written depository contracts. At September 30, 2015, the total amount of the City's
demand and time deposits per the general ledger was $2,993,036, and the total amount per the
City's September 30, 2015 bank statements was $4,127,161. The entire amount of the year-end
bank statement balances was covered by federal depository insurance or by collateral held by the
City's agent in the City's name.
Investments
The investment policies of the City and its discretely presented component units are governed by
The Public Funds Investment Act. Authorized investments include obligations of the U.S.
Treasury, agencies and instrumentalities, obligations of the State of Texas and related agencies,
obligations of states, agencies, counties, cities and political subdivisions of any state rated A or
above by a nationally recognized investment rating firm, repurchase agreements, public funds
investment pools, and commercial paper.
The investments of the City and its discretely presented component units at September 30, 2015
are as follows:
Fair Value/
Average
Weighted Average
Carrying
Credit Quality/
Months to
Types of Investments
Amount
Cost
Ratinos
Maturitv
Primary Government:
TexPool
$ 27,967,254
$ 27,967,254
Not rated
1.00
LOGIC
11,142,840
11,142,840
Not rated
1.00
Money market account
12,819,678
12,819,678
Not rated
1.00
Total primary government
investments
51.929,772
51,929.772
Component Units:
TexPool 20,005,939 20,005,939 Not rated 1.00
Total component unit
investments 20,005,939 20,005.939
Total investments
TexPool is a public funds investment pool administered by the Treasurer of the State of Texas
pursuant to the Interlocal Cooperation Act passed in 1989 by the 71st Texas Legislature. This Act
authorized the City to delegate to TexPool the authority to make investment purchases and to hold
legal title as custodian of the investment securities. All TexPool investments are in the possession
of the Texas Treasury Safekeeping Trust Company and held in its book -entry safekeeping account
at the Federal Reserve Bank of Dallas. The Texas Treasury Safekeeping Trust Company was
created in 1986 by the 69th Texas Legislature to enable the Treasurer of the State of Texas to
manage, safekeep, and invest public funds of state agencies and political subdivisions more
efficiently and economically. TexPool is not registered with the Securities and Exchange
Commission (SEC) as an investment company. TexPool is operated in a manner consistent with
the SEC's Rule 2a-7 of the Investment Company Act of 1940. Therefore, the fair value of the
City's position in TexPool is the same as the value of the pool shares.
39
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 3 - DEPOSITS AND INVESTMENTS (CONTD.)
LOGIC was also established pursuant to the Interlocal Cooperation Act passed by the State of
Texas and is administered by Southwest Securities Group, Inc. LOGIC's governing body is a five -
member board of directors comprised of three government officials and two other persons with
expertise in public finance. LOGIC's investments are only those authorized by the Texas Public
Funds Investment Act governing pools for local governments. LOGIC presently offers two
investment pools, each of which is separately managed and has a different investment objective.
Each participating government owns an undivided beneficial interest in the assets of the pool
represented by units. Participants may terminate their participation in LOGIC at any time by
redeeming their units. LOGIC is not registered with the Securities and Exchange Commission
(SEC) as an investment company. LOGIC is operated in a manner consistent with the SEC's Rule
2a-7 of the Investment Company Act of 1940. Therefore, the fair value of the City's position in
LOGIC is the same as the value of the pool shares.
GASB Statement No. 40 requires a determination as to whether the City was exposed to the
following specific investment risks at year end and if so, the reporting of certain related
disclosures:
a. Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The ratings of securities by nationally recognized rating agencies are designed
to give an indication of credit risk. At year end, the City was not exposed to credit risk.
b. Custodial Credit Risk
Deposits are exposed to custodial credit risk if they are not covered by depository
insurance and the deposits are uncollateralized, collateralized with securities held by the
pledging financial institution, or collateralized with securities held by the pledging financial
institution's trust department or agent but not in the City's name.
Investment securities are exposed to custodial risk if the securities are uninsured, are not
registered in the name of the government, and are held by either the counterparty or the
counterparty's trust department or agent but not in the City's name.
At year end, the City was not exposed to custodial credit risk.
c. Concentration of Credit Risk
This risk is the risk of loss attributed to the magnitude of a government's investment in a
single issuer. At year end, the City was not exposed to concentration of credit risk.
d. Interest Rate Risk
This is the risk that changes in interest rates will adversely affect the fair value of an
investment. In accordance with its investment policy, the City manages its exposure to
interest rate risk by allowing no more than 20% of the City's portfolio to be invested for a
period greater than one year.
40
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 3 - DEPOSITS AND INVESTMENTS (CONTD.)
e. Foreign Currency Risk
This is the risk that exchange rates will adversely affect the fair value of an investment. At
year end, the City was not exposed to foreign currency risk.
Note 4 - PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of the prior January 1. Taxes are
levied on October 1, and become delinquent after January 31, unless the half -payment option is
elected, in which case one-half of the tax is due November 30, and the balance the following June
30.
The City is permitted by its Home Rule Charter to levy taxes up to $2.25 per $100 of assessed
valuation for general governmental services including the payment of principal and interest on
long-term debt. The combined tax rate to finance general governmental services for the year
ended September 30, 2015 was $.65526 per $100 which means that the City has a tax margin of
$1.59474 per $100, and could raise up to $73,753,723 additional tax revenue a year from the
present assessed valuation of $4,624,811,743 before the limit is reached.
41
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 5 - RECEIVABLES
Receivables at September 30, 2015 consist of the following:
Nonmajor
Nonmajor
Totals
Totals
Governmental
Water and
Regional
Enterprise
Internal
Primary
Component
Reporting
General
Funds
Sewer
Sanitation
Airport
Funds
Service
Government
Units
Entitv
Receivables:
Taxes and assessments
$ 1,224,325
$ 193,593
$ -
$ -
$
$ -
$
$ 1,417,918
$
$ 1,417,918
Customer and trade
-
-
7,691,449
2,247,754
462,363
10,401,566
10,401,566
Other City funds
10,055,789
-
-
-
-
10,055,789
10,055,789
Government agencies
4,156,324
5,323,836
71,859
-
1,870,011
11,422,030
1,265,626
12,687,656
Other
1.463.242
268.756
41.235
53.836
45,138
43.798
986,550
2.902.555
-
2.902.555
Gross receivables
16,899,680
5,786,185
7,804,543
2,301,590
45,138
2,376,172
986,550
36,199,858
1,265,626
37,465,484
Less: Allowance for
uncollectible accounts
( 514.552)
( 20.765)
( 1.650.092)
( 586.120)
( 99.386)
-
( 2,870,915)
-
( 2.870.915)
Net total receivables
There are no net receivables, other than delinquent property taxes, that the City does not expect to collect within a year. The City expects to collect
approximately $350,000 of the $1,417,918 total delinquent property taxes within a year. This amount is similar to the amounts collected in previous
years.
42
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 6 - RESTRICTED ASSETS
Restricted assets in the Water and Sewer Fund, Regional Airport Fund, and Internal Service
Funds, are held for specific purposes in accordance with bond ordinances or other legal
restrictions.
Water and Sewer restricted assets are comprised of the following:
For Debt Service:
Cash and cash equivalents $11,800,667
For Capital Improvements:
Cash and cash equivalents 37.329,132
Total $49.129.799
Regional Airport restricted assets are comprised of the following:
For Passenger Facility Charges:
Cash and cash equivalents $ 3,689
For Customer Facility Charges:
Cash and cash equivalents 353.652
Total $357.341
Internal Service Fund restricted assets are comprised of the following:
For Employee Insurance:
Cash and cash equivalents $3.307.799
43
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 7 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2015 was as follows:
Balance
Balance
Governmental activities:
October 1,
September 30,
2014
Increases
Decreases
2015
Capital assets not being depreciated:
Land
$ 10,682,820
$ -
$ -
$ 10,682,820
Construction in progress
783.079
52.500
577,379
258.200
Total capital assets not being depreciated
11,465,899
52,500
577.379
10.941.020
Capital assets being depreciated:
Land betterments
23,422,644
-
-
23,422,644
Buildings, systems and improvements
73,420,800
826,388
25,407
74,221,781
Infrastructure
171,477,465
4,494,838
491,222
175,481,081
Machinery and equipment
22,720,927
1,816,325
1,143,632
23,393,620
Furniture and fixtures
164.368
-
2,633
161.735
Total capital assets being depreciated
291.206.204
7,137,551
1,662,894
296,680,861
Less accumulated depreciation for:
Land betterments
5,739,929
498,316
-
6,238,245
Buildings, systems and improvements
21,169,029
1,679,115
14,873
22,833,271
Infrastructure
89,093,152
2,717,082
473,752
91,336,482
Machinery and equipment
12,614,101
1,858,785
957,615
13,515,271
Furniture and fixtures
162.738
465
2.633
160.570
Total accumulated depreciation
128,778.949
6,753.763
1,448,873
134.083.839
Total capital assets being depreciated, net
162.427.255
383.788
214,021
162,597,022
Governmental activities capital
assets, net $173.893.154
$ 436,288
$ 791.400
S173.538.042
Depreciation expense was charged to functions as follows:
Governmental activities:
Administrative services
$ 980,492
Police
1,324,574
Fire
148,501
Parks and recreation
244,158
Accounting/finance
94,538
Community development
7,385
Public works
2,421,360
Health
159,044
Traffic and transportation
369,980
Multi -Purpose Events Center
1,003.731
Total governmental depreciation
$6.753.763
44
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2015
Note 7 - CAPITAL ASSETS (CONTD.)
Balance
Balance
Business -type activities:
October 1,
September 30,
2014
Increases
Decreases
2015
Capital assets not being depreciated:
Land
$ 9,042,199
$ -
$ -
$ 9,042,199
Construction in progress
38,052,969
6,850.712
35,541,878
9,361,803
Total capital assets not being depreciated
47,095,168
6,850,712
35,541.878
18,404,002
Capital assets being depreciated:
Land betterments
48,140,344
118,374
793,467
47,465,251
Buildings, systems and improvements
351,112,221
47,830,147
1,297,115
397,645,253
Machinery and equipment
8,801,612
569,694
19,478
9,351,828
Furniture and fixtures
39,174
-
35,060
4,114
Motor vehicles
52,711,312
3,497,543
2,714,216
53,494,639
Total capital assets being depreciated
460,804,663
52,015,758
4.859.336
507,961,085
Less accumulated depreciation for
Land betterments
14,461,781
1,269,950
233,422
15,498,309
Buildings, systems and improvements
107,223,074
8,113,794
829,894
114,506,974
Machinery and equipment
6,127,926
471,490
18,457
6,580,959
Furniture and fixtures
39,174
-
35,060
4,114
Motor vehicles
37,371,356
3,618,122
2.619.901
38,369,577
Total accumulated depreciation
165,223,311
13,473,356
3.736.734
174,959,933
Total capital assets being depreciated, net
295,581,352
38,542,402
1.122.602
333,001,152
Business -type activities capital
assets, net
$342.676.520
$45.393.114
$36.664.480
$351.405.154
Depreciation expense was charged to
programs as follows:
Business -type activities:
Regional Airport
$ 970,643
Kickapoo Airport
431,478
Transit
553,988
Sanitation
2,831,367
Water and sewer
8,229,865
Stormwater drainage
238,225
Waterpark
217,790
Total business -type depreciation
$13.473.356
45
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 8 - PENSION PLANS
Eligible City employees participate in one of two pension plans. Eligible firefighters participate in
the Wichita Falls Firemen's Relief and Retirement Fund (WFFRRF). All other eligible employees
participate in the Texas Municipal Retirement System (TMRS).
The table below summarizes the amounts reported by the City for each plan as of September 30,
2015. Detailed information for each plan follows.
Net pension liability
Deferred outflows of resources
Deferred inflows of resources
Pension expense
Texas Municipal Retirement Svstem
Plan Description
TMRS WFFRRF Total
$32,438,115 $24,733,813 $57,171,928
6,069,880
1,202,871
1,565,501
703,882
4,030,154
2,354,834
7,272,751
2,269,383
The City participates as one of 860 plans in the nontraditional, joint contributory, hybrid defined
benefit plan administered by the TMRS. TMRS is an agency created by the State of Texas and
administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code
(the TMRS Act) as an agent multiple -employer retirement system for municipal employees in
the State of Texas. The TMRS Act places the general administration and management of the
System with a six -member Board of Trustees. Although the Governor, with the advice and
consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of
Texas. TMRS's defined benefit pension plan is a tax -qualified plan under Section 401(a) of the
Internal Revenue Code. TMRS issues a publicly available comprehensive annual financial
report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by
the City Council, within the options available in the governing state statutes of TMRS.
At retirement, the benefit is calculated as if the sum of the employee's contributions, with
interest, and the City -financed monetary credits with interest were used to purchase an
annuity. Members may choose to receive their retirement benefit in one of seven payment
options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum
Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75%
of the member's deposits and interest.
46
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 8 - PENSION PLANS (CONTD.)
Employees Covered by Benefit Terms
At the December 31, 2014 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 591
Inactive employees entitled to but not yet receiving benefits 331
Active employees 1,005
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross
earnings, and the participating city matching percentages are either 100%, 150%, or 200%,
both as adopted by the governing body of the participating city. Under the state law governing
TMRS, the contribution rate for each city is determined annually by the actuary, using the
Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the
estimated amount necessary to finance the cost of benefits earned by employees during the
year, with an additional amount to finance any unfunded accrued liability.
Employees of the City were required to contribute 5% of their annual gross earnings during the
fiscal year. The contribution rates for the City were 14.26% and 15.08% in calendar years
2014 and 2015, respectively. The City's contributions to TMRS for the year ended September
30, 2015, were $5,443,008, and were equal to the required contributions.
Net Pension Liabilitv
The City's Net Pension Liability (NPL) was measured as of December 31, 2014, and the Total
Pension Liability used to calculate the Net Pension Liability was determined by an actuarial
valuation as of that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2014 actuarial valuation was determined using
the following actuarial assumptions:
Inflation 3.0% per year
Overall payroll growth 3.0% per year
Investment rate of return 7.0%, net of pension plan investment expense, including
inflation
Salary increases were based on a service -related table. Mortality rates for active members,
retirees, and beneficiaries were based on the gender -distinct RP2000 Combined Healthy
Mortality Table, with male rates multiplied by 109% and female rates multiplied by 103%.
Based on the size of the City, rates are multiplied by a factor of 95.0%. The rates are projected
on a fully generational basis by scale BB to account for future mortality improvements. For
disabled annuitants, the gender -distinct RP2000 Disabled Retiree Mortality Table is used, with
slight adjustments.
47
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 8 - PENSION PLANS (CONTD.)
Actuarial assumptions used in the December 31, 2014, valuation were based on the results of
actuarial experience studies. The experience study in TMRS was for the period January 1,
2006 through December 31, 2009, first used in the December 31, 2010 valuation. Healthy
post -retirement mortality rates and annuity purchase rates were updated based on a Mortality
Experience Investigation Study covering 2009 through 2011, and dated December 31, 2013.
These assumptions were first used in the December 31, 2013 valuation, along with a change
to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No
additional changes were made for the 2014 valuation.
The long-term expected rate of return on pension plan investments is 7.0%. The pension
plan's policy in regard to the allocation of invested assets is established and may be amended
by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an
emphasis on both capital appreciation as well as the production of income, in order to satisfy
the short-term and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighing the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. The target allocation and best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:
Long -Term Expected Real
Asset Class
Target Allocation
Rate of Return (Arithmetic)
Domestic Equity
17.5%
4.80%
International Equity
17.5%
6.05%
Core Fixed Income
30.0%
1.50%
Non -Core Fixed Income
10.0%
3.50%
Real Return
5.0%
1.75%
Real Estate
10.0%
5.25%
Absolute Return
5.0%
4.25%
Private Equity
5.0%
8.50%
Total
Discount Rate
100.00
The discount rate used to measure the Total Pension Liability was 7.0%. The projection of
cash flows used to determine the discount rate assumed that employee and employer
contributions will be made at the rates specified in statute. Based on that assumption, the
pension plan's Fiduciary Net Position was projected to be available to make all projected
future benefit payments of current active and inactive employees. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the Total Pension Liability.
48
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 8 - PENSION PLANS (CONTD.)
Changes in Net Pension Liability
Increase (Decrease)
Total Pension
Fiduciary Net
Net Pension
Liability
Position
Liability
(a)
(b)
(a) — (b)
Balances as of December 31, 2013
$227,614,915
$194,230,044
$33,384,871
Changes for the year:
Service cost
4,098,031
-
4,098,031
Interest on total pension liability
15,665,423
-
15,665,423
Change of benefit terms
-
-
-
Difference between expected and
actual experience
( 2,042,671)
-
( 2,042,671)
Change of assumptions
-
-
-
Contributions — employer
-
5,379,333
( 5,379,333)
Contributions — employee
-
2,303,770
( 2,303,770)
Net investment income
-
11,109,980
( 11,109,980)
Benefit payments, including refunds
of employee contributions
( 11,744,340)
( 11,744,340)
-
Administrative expense
-
( 116,005)
116,005
Other changes
-
( 9,538)
9.538
Balances as of December 31, 2014
=3.591.358
$201.153.244
$32.438.114
Sensitivity Analysis
The following presents the net pension asset of the City, calculated using the discount rate of
7.0%, as well as what the City's net pension liability / (asset) would be if it were calculated using
a discount rate that is 1 percentage point lower (6.0%) or 1 percentage point higher (8.0%) than
the current rate.
Net pension liability
1% Current 1%
Decrease Discount Rate Increase
6.0% 7.0% 8.0%
$64,198,381 $32,438,114 $6,339,291
Pension Enense. Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended September 30, 2015, the City recognized pension expense of $4,030,154
related to its participation in TMRS.
49
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 8 - PENSION PLANS (CONTD.)
At September 30, 2015, the City reported deferred outflows of resources and deferred inflows of
resources related to TMRS from the following sources:
Differences between expected and
actual experience
Net difference between projected and
actual earnings
Contributions made subsequent to
measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 1,565,501
4,080,982
$6.069.880 $ 1.565.501
$4,080,982 reported as deferred outflows of resources related to pensions resulting from
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability for the year ending September 30, 2016. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year Ended December 31:
2015
$ 20,055
2016
20,055
2017
20,055
2018
363,232
2019
-
Thereafter
-
Total
$423.397
Wichita Falls Firemen's Relief and Retirement Fund
Plan Description
The City provides pension benefits for all of its firefighters through a single -employer defined
benefit pension plan. The Wichita Falls Firemen's Relief and Retirement Fund (Fund)
operates under an act passed in 1937 by the Texas State Legislature and adopted by the
City's firefighters.
The stand-alone financial report for the Firemen's Relief and Retirement Fund can be obtained
from the City's Assistant City Manager / CFO at 1300 7th Street, Wichita Falls, Texas.
Benefits Provided
Benefits are determined on a "formula" or a "final salary" plan. A firefighter who qualifies for a
retirement benefit will receive monthly retirement equal to 2.55% of the firefighter's average
salary, multiplied by the member's years of credited service. Benefits are calculated based
upon a member's average salary for the 78 consecutive biweekly pay periods which produce
the highest average.
50
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 8 - PENSION PLANS (CONTD.)
Members can receive a service retirement at ages 50 and above with 20 or more years of
service. Members are eligible for actuarially reduced early retirement benefits before age 50,
provided the employee has accrued at least 20 years of service. The plan also provides death
and disability benefits. Members who terminate their service and are nonvested are entitled to
the excess of the member's contributions over any benefits previously received.
The valuations used for this plan are based on a valuation performed as of December 31,
2014.
Employees Covered by Benefit Terms
At the December 31, 2014 measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 115
Inactive employees entitled to but not yet receiving benefits 3
Active employees 156
Contributions
The contribution rate for the firefighters is 12% and the City contributes 12.95%. Both the
firefighters and City make contributions bi-weekly. Contribution requirements are not
actuarially determined, however, state law requires that each plan of benefits adopted by the
Fund must be approved by a qualified actuary. The actuary certifies that the contribution
commitments by the firefighters and the City provide an adequate financing arrangement.
Using the individual entry age normal cost method, the plan's normal cost is determined as a
percentage of payroll.
The City's contributions to the Plan for the year ended September 30, 2015, were $1,248,549,
and were equal to the required contributions.
Net Pension Liabilitv
The City's Net Pension Liability (NPL) was measured as of December 31, 2014, and the Total
Pension Liability used to calculate the Net Pension Liability was determined by an actuarial
valuation as of that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2014, actuarial valuation was determined
using the following actuarial assumptions:
Inflation 3.0% per year
Overall payroll growth 4.5% per year
Investment rate of return 8.0%, net of pension plan investment expense, including
inflation
51
Note 8 -
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
PENSION PLANS (CONTD.)
Salary increases were based on a service -related table. Mortality rates for employee and
healthy annuitant combined rates were taken from RP2000 Mortality Table, projected to 2015
using Scale AA, with separate rates for males and females.
Actuarial assumptions used in the valuation were based on the results of actuarial experience
studies. The experience study was last performed for the December 31, 2014 valuation.
The long-term expected rate of return on pension plan investments is 8.0%. The pension
plan's policy in regard to the allocation of invested assets is established and may be amended
by the Plan's Board of Trustees.
The long-term expected rate of return on pension plan investments was determined using a
method in which best estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by
weighing the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. The target allocation and best estimates of arithmetic real rates
of return for each major asset class are summarized in the following table:
Long -Term Expected Real
Asset Class
Target Allocation
Rate of Return (Arithmetic)
Cash & Short-term Fixed Income
0.65%
0.60%
Fixed Income:
Investment Grade
26.07%
3.60%
High Yield
3.93%
5.00%
Equities, Real Estate & Other
All -cap
14.38%
6.78%
Large -cap (S&P 500)
16.18%
6.78%
Large -cap (Russell index)
5.27%
7.47%
Mid -cap
5.62%
9.07%
Small -cap
1.33%
8.03%
International Equity
13.72%
6.78%
Real Estate
4.14%
7.50%
Alternative Investments
8.71%
6.08%
Total
Discount Rate
100.00%
The discount rate used to measure the Total Pension Liability was 8.0%. The projection of
cash flows used to determine the discount rate assumed that employee and employer
contributions will be made at the rates specified in statute. Based on that assumption, the
pension plan's Fiduciary Net Position was projected to be available to make all projected
future benefit payments of current active and inactive employees. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the Total Pension Liability.
52
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 8 - PENSION PLANS (CONTD.)
Changes in Net Pension Liability
Increase (Decrease)
Total Pension
Fiduciary Net
Net Pension
Liability
Position
Liability
(a)
(b)
(a) — (b)
Balances as of December 31, 2013
$69,628,166
$45,558,298
$24,069,868
Changes for the year:
Service cost
1,447,068
-
1,447,068
Interest on total pension liability
5,537,931
-
5,537,931
Change of benefit terms
-
-
-
Difference between expected and
actual experience
( 320,862)
-
( 320,862)
Change of assumptions
( 423,984)
-
( 423,984)
Contributions —employer
-
1,232,957
( 1,232,957)
Contributions — employee
-
1,144,644
( 1,144,644)
Net investment income
-
3,284,243
( 3,284,243)
Benefit payments, including refunds
of employee contributions
( 3,616,549)
( 3,616,549)
-
Administrative expense
-
( 85,636)
85,636
Other changes
-
-
-
Balances as of December 31, 2014
$72,251,770
$A7.517.957
$24.733.813
Sensitivity Analysis
The following presents the net pension liability of the City, calculated using the discount rate of
8.0%, as well as what the City's net pension liability / (asset) would be if it were calculated
using a discount rate that is 1 percentage point lower (7.0%) or 1 percentage point higher
(9.0%) than the current rate.
Net pension liability
1 % Current 1 %
Decrease Discount Rate Increase
7.0% 8.0% 9.0%
$33,010,993 $24,733,013 $17,769,397
Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended September 30, 2015, the City recognized pension expense of $2,354,834
related to the Wichita Falls Firemen's Relief and Retirement Fund.
53
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 8 - PENSION PLANS (CONTD.)
At September 30, 2015, the City reported deferred outflows of resources and deferred inflows of
resources related to the WFFRRF from the following sources:
Differences between expected and
actual experience
Difference due to changes in actuarial
assumptions
Net difference between projected and
actual earnings
Contributions made subsequent to
measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ - $ 303,216
400,666
245,950 -
956.921 -
$1.202.871 $ 703.882
$956,921 reported as deferred outflows of resources related to pensions resulting from
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability for the year ending September 30, 2016. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year Ended December 31:
2015
2016
2017
2018
2019
Thereafter
Total
$ 20,524
20,524
20,524
20,522
( 40,964)
(499.062)
($457.932)
54
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 9 - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Plan Description
The City administers the City of Wichita Falls Retiree Health Care Plan for all permanent
employees who retire after satisfying eligibility retirement requirements through a single -employer
defined benefit plan. All employees who retire and are actively in one of the City's health plans
can continue to receive health care benefits under the City's plan for themselves and any
dependents for as long as the retiree and/or dependents live. The plan does not issue a stand-
alone financial report.
Retiree Premiums
Pre -Medicare: Retirees share in the cost of the Plan by paying premiums according to the
following schedule:
PPO
PPO
PPO
PPO
Under 65
Core
Enhanced
CAT
HSA
Dental
Retiree Only
$ 337
$ 556
$ 271
$ 257
$25
Retiree/Spouse
$1,289
$1,786
$1,146
$1,096
$51
Retiree/Child
$1,012
$1,427
$ 891
$ 851
$53
Retiree/Family
$1,845
$2,503
$1,656
$1,586
$82
Post -Medicare: Eligible retirees and spouses on Medicare are eligible to participate in a Medicare
supplement health care plan. Effective January 1, 2009, the following changes will be
implemented to Medicare eligible retirees:
For retirees and spouses who were on Medicare as of January 1, 2009, the City will provide
$250 in premium assistance towards the full premium for a Medicare subsidy program. The
$250 is expected to be a fixed amount.
For retirees and spouses retired as of January 1, 2009 but not yet Medicare -eligible, the City
will provide $100 in premium assistance towards the full premium for a Medicare subsidy
program. The $100 is expected to be a fixed amount.
For members who retire on or after January 1, 2009, the City will provide no premium
assistance once Medicare -eligible. The retiree premium for post-65 coverage is $432/month
for each covered member as of June 1, 2010.
Benefits for Spouses of Retired Emplovees
Spouses of retirees are eligible to participate in the retiree health care program. Souses are
eligible to continue with same coverage after the death of the retiree.
Vision Coverage
Vision coverage is offered through a separate, fully -insured plan. Retirees may participate but are
100% responsible for payment of the vision premiums.
55
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 9 - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONTD.)
Dental Coveraoe
Retirees and spouses, prior to qualifying for Medicare, are eligible to participate in the same
dental care program as active employees. There is no dental coverage for retiree or spouses on
the Medicare supplement.
Life Insurance Coverage
General employees and Firefighters receive $7,500 of employer -paid life insurance which is
included in the liabilities of the Plan. No life insurance coverage is provided for spouses of
retirees.
Fundinq Policv and Annual OPEB Cost
The City's annual other post -employment benefits (OPEB) cost is based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of accrual that, if paid on an
ongoing basis, is projected to cover the normal cost each year and to amortize any unfunded
actuarial liabilities (or funding excess) over a period not to exceed thirty years. The City's OPEB
cost for the year ended September 30, 2015 is as follows:
Annual Required Contribution
$2,476,733
Interest on OPEB obligation
9,746
Adjustment to ARC
( 7,802)
Annual OPEB cost (expense) end of year
2,478,677
Net estimated employer contributions
( 2.513,506)
Increase (decrease) in net OPEB obligation
( 34,829)
Net OPEB obligation — beginning of year
129.950
Net OPEB obligation — end of year
$ 95.121
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for the fiscal year ending September 30, 2015 and the preceding two
fiscal years were as follows:
Fiscal Year Ended
September 30, 2013
September 30, 2014
September 30, 2015
Employer
Annual
Amount
OPEB Cost
Contributed
$2,444,427
$2,444,427
2,404,595
2,274,645
2,478,677
2,513,506
Percentage
Net OPEB
Contributed
Obliaation
100.0%
$ -
94.6%
129,950
101.4%
95,121
56
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 9 - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONTD.)
Schedule of Actuarial Liabilities and Fundina Status
Actuarial Valuation Date
12/31/14
Actuarial Value of Assets
$ 2,849,848
Actuarial Accrued Liabilities
$16,099,920
Unfunded Actuarial Accrued Liability (UAAL)
$13,250,072
Funded Ratio
17.7%
Annual Covered Payroll
$51,167,922
UAAL as a Percentage of Annual Covered Payroll
25.9%
Actuarial Methods and Assumptions
The Individual Entry -Age actuarial cost method is used to calculate the GASB ARC for the City's
retiree health care plan. Using the plan benefits, the present health premiums and a set of
actuarial assumptions, the anticipated future payments are projected. The projected unit credit
method then provides for a systematic funding for these anticipated payments. The yearly ARC
is computed to cover the cost of benefits being earned by covered members as well as to
amortize a portion of the accrued liability.
Projections of health benefits are based on the plan as understood by the City and include the
types of benefits in force at the valuation date and the pattern of sharing benefit costs between
the City and its employees to that point. Actuarial calculations reflect a long-term perspective and
employ methods and assumptions that are designed to reduce short-term volatility in actuarial
accrued liabilities and the actuarial value of assets. Significant methods and assumptions were
as follows:
Inflation rate
Investment rate of return
Actuarial cost method
Amortization method
Amortization period
Salary growth
Healthcare cost trend rate
2.50% per annum
7.25%, net of expenses
Individual entry -age
Level as a percentage of employee payroll
13-year closed amortization
3.0% per annum
Initial rate of 7.00% declining to an ultimate
rate of 4.25% after 14 years
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the profitability of events in the future. Amounts determined regarding the funded status and the
annual required contributions of the City's retiree health care plan are subject to continual revision
as actual results are compared to past expectations and new estimates are made about the
future. The required schedule of funding progress presented as required supplementary
information provides multi -year trend information that shows whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
57
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 10 - DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a
portion of their salary until future years. The deferred compensation is not available to the
employees until termination, retirement, death, or an unforeseen emergency.
Note 11 - AIRPORT LEASE
The Regional Airport facilities are located on land at Sheppard Air Force Base. The land is
leased from the Department of the Air Force for a period of fifty years, beginning May 15, 2009
and expiring May 14, 2059. The City's expense for the year ended September 30, 2015 was
$43,152. The lease payment increases by 3% per year with a final lease payment of $141,307 in
2059.
Note 12 - DESCRIPTION OF LEASING ARRANGEMENTS
The majority of the City's operating leases contain an option for annual renewal at the end of the
initial lease term. In most cases, these leases will be canceled or replaced by other leases. The
City leases certain equipment under operating leases expiring at various times through the year
ending September 30, 2015.
The following is a schedule by years of future minimum rental payments required under operating
leases that have initial or remaining noncancellable lease terms in excess of one year as of
September 30, 2015:
Year ending September 30:
2016
$ 157,029
2017
140,691
2018
110,204
2019
68,702
2020
46,874
2021-2025
246,064
2026-2030
282,851
2031-2035
327,902
2036-2040
380,128
2041-2045
440,672
2046-2050
510,860
2051-2055
592,227
2056-2059
541.008
Total minimum payments required $3.845.212
The total rental expenses for all operating leases for the year ended September 30, 2015 was
$157,029. There were no contingent rentals during the year ended September 30, 2015.
58
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 13 - LONG-TERM LIABILITIES
Long-term liabilities transactions for the year ended September 30, 2015 are summarized as
follows:
Balance at
Balance at
October 1,
Retired and
September 30,
Due Within
2014 Issued
Transferred (1)
2015
One Year
Governmental Activities:
General obligation bonds
$ 4,679,866 $
$ 829,160
$ 3,850,706
$ 822,122
Combination tax and revenue bonds
49,302,503
2,592,209
46,710,294
2,679,908
Accrued vacation and sick
leave payable
7,667,389 2,241,705
1,420,562
8,488,532
2,250,000
Capital lease payable
3,510,950 48,990
329,345
3,230,595
372,177
Claims and judgments payable
127.746 503.245
567,814
63.177
38.425
Total governmental activities
65,288.454 2.793.940
5,739.090
62.343.304
6,162,632
Business-twe Activities:
Utility system revenue bonds,
net of premium (discount)
95,723,505 -
3,637,413
92,086,092
3,791,421
Combination tax and revenue bonds
24,284,987 33,545,000
3,704,054
54,125,933
2,803,032
General obligation bonds
1,930,000 -
-
1,930,000
1,930,000
Accrued vacation and sick
leave payable
681,120 681,862
607,598
755,384
625,000
Note payable
474,200 -
36,548
437,652
37,737
Capital leases payable
999,606 -
276,869
722,737
272,569
Landfill closure, post -closure costs
4.267.165 126.621
-
4.393.786
-
Total business -type activities
128.360.583 34.353.483
8.262.482
154.451.584
9.459.759
Total long-term liabilities
$193,649,037 $37 147 423
$14 001.572
$216 794 888
$15 622 391
(1) Includes bond premium
amortization of $24,160 related to the
general obligation
bonds,
$47,209 related to combination tax and revenue bonds (governmental
activities), $27,413 related
to revenue bonds, and $139,054 related to the combination tax and revenue bonds (business -type
activities).
For governmental activities, claims and judgments payable and compensated absences are
generally liquidated by the General Fund.
Bonds Pavable
Bonds payable at September 30, 2015, including net unamortized premium on the revenue bonds,
are comprised of the following individual issues:
General Obligation Bonds:
General Obligation Refunding
Bonds, Series 2011
Plus bond premium
General Obligation Refunding
Bonds, Series 2013
Total General Obligation Bonds
Range of
Final
Annual
Interest
Maturity
Serial
Rates
Date
Pavments
1.50% -
9/01/21
$405,000 to
3.00%
$485,000
1.50% -
9/01/18
$335,000 to
3.00%
$2,305,000
Bonds
Bonds
Outstanding
Authorized
at 9/30/15
$ 4,365,000
$ 2,715,000
85,706
3,740,000
2,980,000
5.780.706
59
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 13 - LONG-TERM LIABILITIES (CONTD.)
Range of
Interest
Rates
Combination Tax and Revenue Bonds:
Combination Tax and Revenue
4.90% -
Refunding Bonds, Series 2005
5.00%
Plus bond premium
Combination Tax and Revenue
3.55% -
Certificates of Obligation, Series 2006A
5.00%
Plus bond premium
Combination Tax and Revenue
5.20% -
Certificates of Obligation, Series 2006E
6.25%
Plus bond premium
Combination Tax and Revenue
2.25% -
Certificates of Obligation, Series 2009
4.75%
Combination Tax and Revenue
5.60%
Certificates of Obligation, Series 2010
Combination Tax and Revenue
2.00% -
Refunding Bonds, Series 2010
4.00%
Plus bond premium
Combination Tax and Revenue
2.00% -
Certificates of Obligation, Series 2011
4.00%
Plus bond premium
Combination Tax and Revenue
2.00% -
Certificates of Obligation, Series 2013
3.375%
Plus bond premium
Combination Tax and Revenue
2.00% -
Certificates of Obligation, Series 2013A
4.625%
Combination Tax and Surplus
0.00% -
Revenue Bonds, Series 2015
2.12%
Total Combination Tax and Revenue Bonds
Revenue Bonds:
Water & Sewer System Priority
4.00%-
Lien Refunding Revenue Bonds,
4.50%
Series 2007
Plus bond premium
Total Revenue Bonds
Total All Bonds
Final
Annual
Bonds
Maturity
Serial
Bonds
Outstanding
Date
Pavments
Authorized
at 9/30/15
8/01/16
$115,000 to
14,020,000
740,000
$2,650,000
27,350
9/01/26
$580,000 to
16,875,000
10,830,000
$1,225,000
168,369
9/01/26
$130,000 to
4,275,000
2,870,000
$345,000
39,232
10/01/29
$340,000 to
10,820,000
8,350,000
$780,000
2/01/25
$165,000 to
3,930,000
2,965,000
$375,000
8/01/18
$170,000 to
9,830,000
7,625,000
$3,600,000
193,583
9/01/31
$135,000 to
3,200,000
2,790,000
$220,000
70,037
9/01/33
$530,000 to
19,875,000
18,550,000
$1,315,000
77,656
9/01/33
$505,000 to
13,000,000
11,995,000
$905,000
3/01/45
$890,000 to
33,545,000
33,545,000
$1,425,000
100,836.227
8/01/27 $225,000to 103,495,000 91,895,000
$11,070,000
191.092
92.086.092
$ 198 703.025
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 13 - LONG-TERM LIABILITIES (CONTD.)
Aggregate maturities of the long-term debt (principal and interest) for the years subsequent to September 30, 2015 are as follows:
Combination
Tax and
Year Ending
General Obligation Bonds
Revenue Bonds
Revenue Bonds
Notes Pavable
Caoital Lease Pavable
Total
September 30.
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
2016
$2,752,122
$101,103
$ 5,482,940
$ 2,441,342
$ 3,791,420
$ 4,059,030
$ 37,737
$ 14,237
$ 644,746
$ 97,937
$ 12,708,965
$ 6,713,649
2017
789,373
60,777
7,787,324
2,365,597
3,940,386
3,900,052
38,964
13,009
666,926
83,431
13,222,973
6,422,866
2018
801,559
44,841
7,978,114
2,171,959
4,114,310
3,734,740
40,232
11,742
329,098
68,372
13,263,313
6,031,654
2019
468,681
28,619
4,447,395
1,968,971
8,163,252
3,572,198
41,541
10,433
336,852
59,476
13,457,721
5,639,697
2020
479,266
19,384
4,584,505
1,870,932
8,520,949
3,218,376
42,892
9,082
352,178
50,771
13,979,790
5,168,545
2021-2025
489,705
9,844
25,229,838
7,283,820
48,665,334
10,037,391
236,286
23,549
1,623,532
107,231
76,244,695
17,461,835
2026-2030
-
-
20,012,072
3,719,175
14,890,441
836,058
-
-
-
-
34,902,513
4,555,233
2031-2035
12,294,039
1,858,584
-
-
12,294,039
1,858,584
2036-2040
6,180,000
1,036,616
6,180,000
1,036,616
2041-2045
6.840.000
367.555
6.840.000
367.555
Totals
$ajffl 7
$2$2
$1Q0.836,22Z
$25,0114.551
$92.086.092
$29-357.845
$437,652
$_82 05
$3 953 332
$467.M
$203 094,009
$55 256 234
61
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 13 - LONG-TERM LIABILITIES (CONTD.)
All of the General Obligation Bonds were issued on the full faith and credit of the City and are
secured by ad valorem taxes levied against all taxable property. With the exception of a portion of
the Series 2013 General Obligation Refunding Bonds, these bonds are serviced by the Debt
Service Fund with an apportionment of the ad valorem tax levy. At September 30, 2015, this fund
had a deficit fund balance of $408.
The Combination Tax and Revenue Bonds are secured by ad valorem taxes levied against all
taxable property as well as a pledge of surplus net revenues of the City's combined waterworks and
sewer system. The Series 2003, 2010 and 2011 Certificates will be serviced by the Debt Service
Fund by contributions from the Wichita Falls 4B Economic Development Corporation. The Series
2004, Series 2005, and Series 2015 Certificates will be serviced by the net revenues of the Water
and Sewer Fund, as well as the Series 2010 Combination Tax and Revenue Refunding
Certificates. A portion of the Series 2013 General Obligation Refunding Bonds will also be serviced
by these net revenues.
All of the Water and Sewer Revenue Bonds were issued for purposes of improving the City's water
and sewer systems and are serviced by the net revenues of the Water and Sewer Fund.
Notes Pavable
The City of Wichita Falls and Wichita County Water Improvement District Number 2, upon the
completion of the Lake Kemp reconstruction project in January 1976 by the U.S. Government, are
required to reimburse the U.S. Government 22.7% of its reported total cost of $8,774,705, or
$1,991,858. The City's share of this amount is 66.11%, or $1,316,817, payable in forty-nine annual
installments through January 2025 of $51,974, which includes interest at the rate of 3.253%.
The City's share of the total costs ($5,800,957) as well as the U.S. Government funded portion
($4,484,140) is reflected as capital assets in the Water and Sewer Enterprise Fund.
This contractual arrangement is strictly a cost -sharing agreement and is not considered a joint
venture as defined in Section J50 of the Codification of Governmental Accounting and Financial
Reporting Standards. The remaining debt payable to the U.S. Government at September 30, 2015
is classified as follows:
Long-term $ 399,915
Current portion 37.737
Total $ 437.652
Capital Leases Pavable
The City issued a capital lease in 2012 for the purchase of fire department equipment in the amount
of $1,466,854. The asset is listed under "Motor Vehicles" in the business -type activities. The lease
carries an interest rate of 1.57% and matures in 2016. This capital lease is recorded in the Fleet
Maintenance Internal Service Fund and is included in the business -type activities of the
government -wide statements.
62
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 13 - LONG-TERM LIABILITIES (CONTD.)
The City also entered into a capital lease agreement in 2012 to finance a portion of an energy
efficiency project that includes several City facilities. The capital lease financed $4,419,310 of the
total project. The assets are listed under "Buildings, systems and improvements" in both
Governmental Activities and Business -type Activities. The lease carries an interest rate of 2.54%
and is for a period of 12 years, with final payment due in fiscal year 2024.
The City also entered into a capital lease agreement in 2015 to finance equipment purchased for
the golf course. This capital lease totaled $48,990. The assets are listed under "Machinery and
equipment" in Governmental Activities. The lease carries an interest rate of 5.89% and is for a
period of 4 years, with final payment due in fiscal year 2019.
Note 14 - INTERFUND BALANCES
Due To Fund
Due From Fund
Amount
Purpose
General Fund
Nonmajor Governmental Funds
$ 4,037,429
Short-term loan
General Fund
Water and Sewer Fund
139,435
Short-term loan
General Fund
Nonmajor Enterprise Funds
2,572,872
Short-term loan
General Fund
Internal Service Funds
3,306,052
Short-term loan
Total
All amounts due are scheduled to be repaid within one year.
Transfers to and from other funds during the year ended September 30, 2015 were as follows:
Transfers From
General Fund
General Fund
General Fund
General Fund
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Water and Sewer Fund
Water and Sewer Fund
Water and Sewer Fund
Sanitation Fund
Sanitation Fund
Sanitation Fund
Regional Airport Fund
Regional Airport Fund
Regional Airport Fund
Nonmajor Enterprise Funds
Nonmajor Enterprise Funds
Nonmajor Enterprise Funds
Nonmajor Enterprise Funds
Internal Service Funds
Transfers To
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Nonmajor Enterprise Funds
Internal Service Funds
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Regional Airport Fund
Water and Sewer Fund
Nonmajor Enterprise Funds
Internal Service Funds
General Fund
Nonmajor Governmental Funds
Internal Service Funds
General Fund
Internal Service Funds
Internal Service Funds
General Fund
Nonmajor Governmental Funds
Nonmajor Governmental Funds
General Fund
Nonmajor Governmental Funds
Nonmajor Governmental Funds
Internal Service Funds
General Fund
Tota I
Amount
Reason
$ 556,459
Supplement capital projects
171,437
Supplement operating deficits
13,228
Supplement operating deficits
4,652
Purchase capital assets
955,098
Fund debt service payment
1,682,664
Fund operating deficits
9,969,962
Fund capital projects
8,529,250
Supplement capital projects
1,203,393
Fund capital projects
49,070
Fund capital projects
200,024
Purchase capital assets
983,964
Administrative overhead
500,000
Fund debt service payment
118,358
Purchase capital assets
1,411,401
Administrative overhead
1,382,376
Purchase capital assets
2,343,000
Fund operating deficits
54,054
Administrative overhead
300,585
Fund debt service payment
50,000
Supplement operating grant
150,036
Administrative overhead
47,977
Supplement operating grant
449,273
Fund debt service payment
299,955
Purchase capital assets
312,000
$31 738 216
Administrative overhead
63
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 15 - LANDFILL AND TRANSFER STATION CLOSURE AND POSTCLOSURE CARE COSTS
State and federal laws and regulations require that the City place a final cover on its landfill when
closed, and perform certain maintenance and monitoring functions at the landfill site for thirty years
after closure. In accordance with the Texas Administrative Code, Title 30, Part 1, Chapter 7, the
City annually submits a financial assurance letter to the Texas Commission on Environmental
Quality (TCEQ). In addition to operating expenses related to current activities of the landfill, an
expense provision and related liability are being recognized based on the future closure and
postclosure care costs that will be incurred near or after the date the landfill no longer accepts
waste. The recognition of these landfill closure and postclosure care costs is based on the amount
of the landfill used during the year. The estimated liability for landfill closure and postclosure care
costs has a balance of $4,326,610 as of September 30, 2015, which is based on 20% usage of the
landfill. The City will recognize the remaining estimated cost of closure and postclosure care of
$17,306,439 as the remaining estimated capacity is filled. The landfill is expected to be filled to
capacity in 2153. Additionally, the City has recorded a liability of $67,176 for closure and
postclosure care costs related to the City's transfer station. Actual costs may be higher due to
inflation, change in technology, or changes in regulations.
Note 16 - COMMITMENTS AND CONTINGENCIES
Litiqation
The City is a defendant in numerous lawsuits. In the opinion of the City's management, any
unrecorded liabilities resulting from such suits will not materially affect the financial position of the
City.
Contract Commitment With West Texas Utilities Comoanv
In 1977, the City and Wichita County Water Improvement District Number 2 entered into a sixty -
year contract with the West Texas Utilities Company (the Company) and agreed to provide an
adequate water supply for the Company's use in generating power upon completion of the
Company's construction of a power plant adjacent to the Lake Kemp -Lake Diversion System.
The significant terms of the contract provide for standby charges to be paid to the City and the
Wichita County Water Improvement District Number 2 in equal amounts. Minimum charges for
the calendar year 1997 and all years thereafter until the end of contract will be $500,000 per year.
For water actually consumed, the Company shall pay the City and Wichita County Water
Improvement District Number 2 equally, at the base rate of $0.23 per one thousand gallons,
which is adjusted annually. The rate for the year ended September 30, 2015 was $.404046 per
one thousand gallons.
This contract can be terminated at any time by the Company. If the contract is terminated, the
Company is required to make a maximum termination payment equal to the minimum charges
which would have become due and payable during the following twenty-four month period.
64
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 16 - COMMITMENTS AND CONTINGENCIES (CONTD.)
Contract Commitments
At September 30, 2015, the City was committed to various contracts. The amounts for which the
various funds are committed to complete these contracts are as follows:
General Fund $ 1,072,422
Nonmajor Governmental Funds 5,988,878
Water and Sewer Fund 4,846,935
Sanitation Fund 328,322
Nonmajor Enterprise Funds 1,220,084
Internal Service Funds 366,244
Total contract commitments - City $13 822 885
Additionally, component units are committed to various contracts as of September 30, 2015. The
remaining commitments are as follows:
Wichita Falls Economic Development Corporation $ 476,300
Wichita Falls 4B Sales Tax Corporation $ 65,977
Federal and State Grants - Compliance Audits
The City participates in numerous Federal and State grants, on both a direct and state pass -
through basis, as well as on a service -provider basis. Principal among these are Community
Development Block Grants, Section 8 Housing Assistance, Home Investment Partnership
Agreement Program, and numerous health -related grants.
In connection with these grants, the City is required to comply with specific terms and agreements
as well as applicable Federal and State laws and regulations. Such compliance is subject to
review and audit by the grantors and their representatives.
In the opinion of management, the City has complied with all requirements. However, since such
programs are subject to future audit or review, the possibility of disallowed expenditures exists. In
the event of any disallowance of claimed expenditures, the City expects the resulting liability to be
immaterial.
65
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 17 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED
COMPONENT UNITS
The City has four component units that are discretely presented in the City's basic financial
statements. Condensed financial information for the year ended September 30, 2015 is as
follows:
Wichita Falls
Wichita Falls
Economic
4B Sales
Wichita Falls
Wichita Falls
Development
Tax
Reinvestment
Reinvestment
Corporation
Comoration
Zone #2
Zone #3
Totals
Condensed statement of net position:
Cash, investments and other
current assets
$18,858,458
$3,881,084
$ -
$298,366
$23,037,908
Capital assets, net of accumulated
depreciation
2.207.394
2.207.394
Total assets
21.065.852
3,881.084
298,366
25,245,302
Accounts payable and other
current liabilities
59.341
17,553
76.894
Total liabilities
59,341
17,553
76.894
Net position
$21 006 511
$3 863 531
$298 366
$25,168,408
Condensed statement of activities:
Expenses:
Community development
$ 2.643.205
$4.508.811
$498,085
$
$ 7.650.101
Program revenues:
Charges for services
106,800
-
-
106,800
Operating grants and contributions
-
498,085
498.085
Total program revenues
106.800
498.085
604.885
Net program expense
( 2,536.405)
( 4.010,726)
498,085)
( 7.045.216)
General revenues:
Taxrevenues
3,733,901
3,733,901
497,991
65,982
8,031,775
Non -tax general revenues
127.787
117.106
94
133
245,120
Total general revenues
3,861,688
3.851.007
498,085
66,115
8,276.895
Change in net position
1,325,283
(159,719)
-
66,115
1,231,679
Beginning net position (restated)
19,681.228
4.023.250
232,251
23.936.729
Ending net position
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2015
Note 18 - PRIOR PERIOD ADJUSTMENTS
Contribution from Component Unit
In the prior year, the City received a contribution from the Wichita Falls 4B Sales Tax Corporation
in the amount of $1,593,000. This contribution was dependent on a specific project being funded.
However, that project was not ultimately funded. The contribution was returned to the Corporation
in the current year. The contribution should have been reported as a loan from the Corporation
until the project was funded. The contribution was returned to the Corporation in the current year.
Implementation of New Standards
In the current year the City implemented GASB Statement No. 68, Accounting and Financial
Reporting for Pensions — An Amendment to GASB Statement No. 27, and GASB Statement No.
71, Pension Transition for Contributions Made Subsequent to the Measurement Date — An
Amendment of GASB Statement No. 68, as those statements are effective for fiscal years
beginning on or after June 15, 2014. Implementation of this statement was made to improve
accounting and financial reporting by the City for pensions provided by the TMRS as described in
Note 8. Implementation required a prior period adjustment to beginning net position as of
October 1, 2014.
The total prior period adjustments are shown below:
Governmental
Activities
Government -wide:
Texas Municipal Retirement System
Net pension liability ($23,992,073)
Deferred outflows of resources - contributions 2,902,116
Wichita Falls Firemen's Relief and
Retirement Fund
Net pension liability
Deferred outflows of resources - contributions
Contribution from component unit
Total prior period adjustment
( 24,069,868)
936,062
( 1,593.000)
Total
Business -Type Primary Component
Activities Government Unit
($9,392,798) ($33,384,871) $ -
1,136,166 4,038,282 -
( 24,069,868)
936,062
( 1,593,000) 1.593.000
($45.816.763) ($8 256 632) ($54.073.395) $1,59aJM
At the fund level, the adjustment related to the implementation of new standards decreased
beginning net position in the Water and Sewer Fund ($4,595,964), Sanitation Fund ($1,810,579),
Regional Airport Fund ($46,097), Nonmajor Enterprise Funds ($798,003) and Internal Service
Funds ($1,624,764). The adjustment related to the contribution from the component unit decreased
beginning fund balance by $1,593,000 in Nonmajor Governmental Funds.
Since pension liability data is not available for periods prior to September 30, 2014, the effect of
the prior period adjustment on the change in net position for the fiscal year ended September 30,
2014, is not determinable. The contribution from the component unit would have decreased the
change in net position for governmental activities in the prior year by $1,593,000 and increased
the change in net position for the component unit by $1,593,000.
67
uic4i 0 a -- Flo t(5
A/ct�Skle, 401de , OPforfwfies
Required Supplementary Information
EXHIBIT B-1
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Revenues:
Taxes
Charges for services
Licenses and permits
Fines and forfeitures
Intergovernmental revenue
Contributions
Miscellaneous revenue
Total revenues
Expenditures:
Current:
Administrative services
Police
Fire
Parks and recreation
Accounting/finance
Community development
Public works
Health
Traffic and transportation
Capital outlay
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Excess of revenues and other sources
over (under) expenditures and other uses
Fund balance - beginning
Fund balance - ending
Variance With
Final Budget -
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 59,200,098
$ 59,200,098
$ 58,567,665
$ (632,433)
2,770,586
2,770,586
2,643,506
(127,080)
1,972,913
1,972,913
1,941,205
(31,708)
2,173,000
2,173,000
2,046,542
(126,458)
14,746
14,746
5,168
(9,578)
158,057
158,057
359,598
201,541
1,003,847
1,003,847
1,010,965
7,118
67,293,247
67,293,247
66,574,649
(718,598)
12,313,320
13,371,996
13,077,874
294,122
21,340,667
21,810,643
21,739,622
71,021
13,551,421
14,557,571
14,557,568
3
5,211,477
5,272,340
4,975,932
296,408
796,416
770,739
747,341
23,398
1,962,127
2,052,168
1,886,731
165,437
5,306,840
5,300,491
5,300,485
6
3,008,853
2,942,139
2,920,626
21,513
1,838,249
1,873,504
1,854,423
19,081
3,303,486
4,656,802
3,702,550
954,252
68,632,856
72,608,393
70,763,152
1,845,241
(1,339,609)
(5,315,146)
(4,188,503)
1,126,643
2,852,759
2,911,455
2,911,455
-
(411,861)
(741,125)
(745,776)
(4,651)
2,440,898
2,170,330
2,165,679
(4,651)
1,101,289
(3,144,816)
(2,022,824)
1,121,992
17,016,980
17,016,980
17,016,980
-
$ 18,118,269
$ 13,872,164
$ 14,994,156
$ 1,121,992
Uic it, Fa �(5
S/u�Skie,. Cry-lden O��o�tun�ties
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2015
Demonstrating compliance with the adopted budget is an important component of a government's
accountability to the public. Many citizens participate in the process of establishing the annual operating
budgets of state and local governments, and have a keen interest in following the actual financial
progress of their governments over the course of the year. The City and many other governments revise
their original budgets over the course of the year for a variety of reasons. Under the new reporting model,
governments will continue to provide budgetary comparison information in their annual reports. An
important change, however, is a requirement to add the government's original budget to the current
comparison of final budget and actual results.
The City adheres to the following procedures in establishing the operating budget reflected in the basic
financial statements:
On or before August 15 of each year, the City Manager submits to the City Council a proposed budget for
the fiscal year beginning the following October 1. The operating budget includes proposed expenditures
and the means of financing them. Public hearings are conducted. The budget is legally enacted by the
City Council through passage of appropriation and tax levying ordinances prior to September 30 and is
published under a separate cover.
An annual budget, including debt service requirements, is legally adopted for the General Fund, the
Community Development Block Grant Fund, the Section 8 Housing Fund, the HOME Investment
Partnership Agreement Fund, the Hotel/Motel Tax Fund, the Golf Fund, the MPEC Fund and the Debt
Service Fund, on a basis which is consistent with generally accepted accounting principles.
The City Council must approve any transfer of appropriation balances or portions thereof from one
department to another. The City Manager has the authority, without City Council approval, to transfer
appropriation balances from one expenditure account to another within a single department of the City.
Supplemental appropriations of $3,975,537 were approved by the City Council. The reported budgetary
data includes amendments made during the year.
At the close of each fiscal year, any unencumbered appropriated balance lapses to the unreserved fund
balance. The unencumbered appropriation balances in the Capital Projects Funds do not lapse at year
end.
. •
EXHIBIT B-2
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
TEXAS MUNICIPAL RETIREMENT SYSTEM
2014
Total Pension Liability
Service cost $ 4,098,031
Interest on total pension liability 15,665,423
Changes of benefit terms -
Difference between expected and actual experience (2,042,671)
Changes of assumptions -
Benefit payments/refunds of contributions (11,744,340)
Net change in total pension liability 5,976,443
Total pension liability, beginning 227,614,915
Total pension liability, ending (a) $ 233,591,358
Fiduciary Net Pension
Contributions - employer
$ 5,379,333
Contributions - employee
2,303,770
Net investment income
11,109,980
Benefit payments/refunds of contributions
(11,744,340)
Administrative expenses
(116,005)
Other
(9,538)
Net change in fiduciary net position
6,923,200
Fiduciary net pension, beginning
194,230,044
Fiduciary net pension, ending (b)
$ 201,153,244
Net pension liability / (asset), ending = (a) - (b) $ 32,438,114
Fiduciary net position as a % of total pension liability 86.11 %
Covered employee payroll $ 41,538,672
Net pension liability (asset) as a % of covered payroll 78.09%
This schedule is presented to illustrate the requirement to show information for 10 years. However,
recalculations of prior years are not required, and if prior years are not reported in accordance with the
standards of GASB 67/68, they should not be shown here. Therefore, we have shown only years for which the
new GASB statements have been prepared.
70
EXHIBIT B-3
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
2015
Actuarial determined contribution $ 5,422,031
Contributions in relation to the actuarially determined contribution (5,422,031)
Contribution deficiency $ _
Covered employee payroll $ 42,951,296
Contributions as a percentage of covered employee payroll 12.62%
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31 and become effective 13 months
later.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 19 years
Asset Valuation Method 10 Year smoothed market; 15% soft corridor
Inflation 3.0%
Salary Increases 3.50% to 12.00% including inflation
Investment Rate of Return 7.00%
Retirement Age Experience -based table of rates that are specific to the City's plan of
benefits. Last updated for the 2010 valuation pursuant to an experience
study of the period 2005-2009
Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment with
male rates multiplied by 109% and female rates multiplied by 103% and
projected on a fully generational basis with scale BB
Other Information:
There were no benefit changes during the year.
71
EXHIBIT B-4
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND
2014
Total Pension Liability
Service cost $ 1,447,068
Interest on total pension liability 5,537,931
Changes of benefit terms -
Difference between expected and actual experience (320,862)
Changes of assumptions (423,984)
Benefit payments/refunds of contributions (3,616,549)
Net change in total pension liability 2,623,604
Total pension liability, beginning 69,628,166
Total pension liability, ending (a) $ 72,251,770
Fiduciary Net Pension
Contributions - employer
$
1,232,957
Contributions - employee
1,144,644
Net investment income
3,284,243
Benefit payments/refunds of contributions
(3,616,549)
Administrative expenses
(85,636)
Other
-
Net change in fiduciary net position
1,959,659
Fiduciary net pension, beginning
45,558,298
Fiduciary net pension, ending (b)
$
47,517,957
Net pension liability / (asset), ending = (a) - (b)
$
24,733,813
Fiduciary net position as a % of total pension liability
65.77%
Covered employee payroll
$
9,629,250
Net pension liability (asset) as a % of covered payroll
256.86%
This schedule is presented to illustrate the requirement to show information for 10 years. However,
recalculations of prior years are not required, and if prior years are not reported in accordance with the
standards of GASB 67/68, they should not be shown here. Therefore, we have shown only years for which the
new GASB statements have been prepared.
72
EXHIBIT B-5
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND
2015
Actuarial determined contribution $ 1,248,549
Contributions in relation to the actuarially determined contribution (1,248,549)
Contribution deficiency $ _
Covered employee payroll $ 9,629,250
Contributions as a percentage of covered employee payroll 12.97%
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31 and become effective 13 months
later.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Individual Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 105.9 years
Asset Valuation Method 5-year smoothed market with a 20% of market value corridor
Inflation 3.0%
Salary Increases SS Table 0515
Investment Rate of Return 8.00%
Retirement Age RR Table 0515
Mortality Employee and healthy annuitant combined rates from the RP-2000
Mortality Table, projected to 2024 using Scale AA, with separate rates
for males and females
Other Information:
There were no benefit changes during the year.
73
EXHIBIT B-6
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS RETIREE HEALTH CARE PLAN -
ANALYSIS OF FUNDING PROGRESS (UNAUDITED)
(1)
(2)
(3)
(4)
(5)
(6)
Unfunded
UAAL as a
Actuarial
Actuarial
Actuarial
Percentage
Actuarial Accrued
Annual
Percentage of
Valuation
Value
Accrued
Funded
Liability (UAAL)
Covered
Covered Payroll
Date
of Assets
Liability (AAL)
(1) _ (2)
(2) - (1)
Payroll
(4) _ (5)
12/31/06 (a)
$ -
$ 29,656,852
0.0%
$ 29,656,852
$ 40,021,675
74.1%
12/31/07 (b)
-
-
-
-
-
-
12/31/08
-
32,143,378
0.0%
32,143,378
43,571,340
73.8%
12/31/09 (b)
-
-
-
-
-
-
12/31/10
853,478
32,409,858
2.6%
31,556,380
47,297,531
66.7%
12/31/11 (b)
-
-
-
-
-
-
12/31/12
1,709,516
32,117,774
5.3%
30,408,258
48,492,352
62.7%
12/31/13 (b)
-
-
-
-
-
-
12/31/14
2,849,848
16,099,920
17.7%
13,250,072
51,167,922
25.9%
Analysis of the dollar amounts of the actuarial value of assets, actuarial accrued liability, and unfunded actuarial accrued liability
in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability
provides one indication of the City's funding status on a going -concern basis. Analysis of this percentage over time indicates
whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the pension
plan. Trends in unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the
unfunded actuarial accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation
and aids analysis of the City's progress made in accumulating sufficient assets to pay benefits when due. Generally, the smaller
the percentage, the stronger the pension plan.
(a) The first actuarial valuation was performed as of December 31, 2006 as the City began to prepare for the implementation
of GASB 45.
(b) Historical trend information is presented for as many years as such information about the plan is available. No actuarial
valuation or update was performed as of these dates. Texas state law does not require an actuarial valuation to be completed
annually.
74
Combining Financial Statements
Nonmajor Governmental Funds
Special Revenue Funds
The special revenue funds are used to account for the proceeds from specific revenue sources
(other than for major capital projects or proprietary funds) that are either legally restricted to be
expended for specified purposes or have revenue sources committed for specific purposes.
Communitv Development Block Grant Fund
The Community Development Block Grant Fund accounts for federal block grant revenues
and related expenditures.
Section 8 Housino Fund
The Section 8 Housing Fund accounts for federal funds received to subsidize rents and
housing payments for lower income families within the City.
Home Investment Partnership Aoreement Fund
The Home Investment Partnership Agreement Fund accounts for federal funds received to
provide home ownership opportunities to low income, first-time homebuyers through the
acquisition, rehabilitation and resale of single-family dwellings that are currently owned by
governmental agencies.
Hotel/Motel Tax Fund
The Hotel/Motel Tax Fund accounts for revenues derived from an occupancy tax which is
expended on programs promoting the growth of the City of Wichita Falls.
Airport Improvement Grant Fund
The Airport Improvement Grant Fund is used to account for improvements made to the
City's Regional Airport that are funded by state and federal grants.
Golf Fund
The Golf Fund accounts for the activities at the Weeks Park Golf Course.
MPEC Fund
The MPEC Fund is used to account for the operations of the City's Multi -Purpose Events
Center.
Miscellaneous Special Revenue Fund
The Miscellaneous Special Revenue Fund accounts for various revenues generated in the
form of contributions, fees, concessions, rents and other charges and their related
expenditures. This fund also includes revenues derived from various grants for health and
police programs. The revenues in this fund are expended to support the activity generating
the revenue or as designated by the contributor. This fund is not required to have a legally
adopted budget; therefore no budgetary comparison schedule is presented.
Debt Service Funds
Debt Service Fund
The Debt Service Fund is established by ordinances authorizing the issuance of general
obligation bonds to provide for the payment of bond principal and interest. An ad valorem
tax rate and tax levy are required to be computed and levied which will be sufficient to
produce the funds required to pay principal and interest as they come due. This fund is also
used to provide for the payment of paying agent fees.
Excess Sales Tax Fund
The Excess Sales Tax Fund is used to account for and administer the excess sales tax
collected related to the property reduction tax. This fund is not required to have a legally
adopted budget; therefore no budgetary comparison schedule is presented.
Capital Projects Funds
The capital projects funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities, other than those financed by federal grants
or proprietary funds.
4B Sales Tax Proiects
This fund was established to account for projects financed by the Wichita Falls 4B Sales Tax
Corporation. Significant projects accounted for in this fund included the construction of
three fire stations and the renovation of the second floor of the Wichita Falls Public Library
building for recreational purposes.
Airport Construction Fund
This fund was established to account for the construction of a new terminal building at
Municipal Airport. This fund includes the proceeds of the Combination Tax and Revenue
Certificates of Obligation, Series 2013, which will be used to fund a portion of the
construction project. The City will also receive federal grant funding for a portion of the
project.
Miscellaneous Capital Proiects Funds
This fund is an accumulation of several projects that have been undertaken over the years
including library renovations, street improvements and drainage improvements.
Permanent Fund
The permanent fund is used to account for principal trust amounts received and related interest
income. The interest earnings of this fund may be used for maintenance of the City's cemeteries.
uic4itl F401(5
B/ct�Skie, Gro�denO��o�'tun��ies
ASSETS
Cash and cash equivalents
Receivables:
Taxes and assessments
Government agencies
Other
Inventory
Prepaid items
Other assets
Total assets
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable - trade
Accrued payroll
Payable to other City funds
Payable to government agencies
Other liabilities
Unearned revenue
Total liabilities
Deferred inflows of resources
Unavailable revenues
Fund balance:
Nonspendable:
Inventory and prepaid items
Restricted for:
Perpetual care
Debt service
Capital projects
Federal and state grant programs
Tourism
Committed for:
Golf course
Multi -Purpose Events Center
Local projects
Unassigned
Total fund balance
Total liabilities, deferred inflows of
resources and fund balances
CITY OF WICHITA FALLS, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
Special Revenue
Home
Community
Investment
Hotel/
Airport
Development
Section 8
Partnership
Motel
Improvement
Golf
Block Grant
Housing
Agreement
Tax
Grant
Fund
$
$ 949,465
$ 38,764
$ -
$
$ 37,851
-
-
145,279
-
912,971
(21,013)
509,206
-
2,910,620
1,274
-
-
2,892
-
-
-
-
-
152,018
$ 914,245
$ 928,452
$ 547,970
$ 145,279
$ 2,910,620
$ 192,761
$ 81,349
$ 677
$ 9,814
$ $ 360,754 $ 82,298
5,834
8,733
330
- -
160,962
-
-
145,269 2,895,459
-
72,460
20,000
- - -
29,933
24,744
205,270 682
248,145
111,803
54,888
145,269 3,461,483 82,980
2,892
666,100 816,649 493,082
- - - 10 -
106,889
- - - - (550,863) -
666,100 816,649 493,082 10 (550,863) 109,781
$ 914,245 $ 928,452 $ 547,970 $ 145,279 $ 2,910,620 $ 192,761
75
EXHIBIT C-1
Permanent
Debt Service
Capital Projects
Fund
Total
Miscellaneous
Airport
Miscellaneous
Nonmajor
MPEC
Special
Debt Excess
4B Sales
Construction
Capital
Perpetual
Governmental
Fund
Revenue
Service Sales Tax
Tax Projects
Fund
Projects
Care
Funds
$ 525,437
$ 2,377,342
$ 2,170 $ 283,429
$ 20,875
$ 343,951
$ 2,670,259
$ 1,006,353
$ 8,255,896
-
-
27,549 -
-
-
-
-
172,828
-
995,704
16,348
5,323,836
75,033
192,449
-
268,756
67,217
-
67,217
11,424
13,750
28,066
-
3,000
- -
-
-
-
-
155,018
$ 679,111
$ 3,582,245
$ 46,067 $ 283,429
$ 20,875
$ 343,951
$ 2,670,259
$ 1,006,353
$ 14,271,617
$ 103,618 $ 84,411 $ $
50,111 50,925
- 830,228 4,749
3,621 2,302 -
316,369 62,914
- 37,236 -
473,719 1,068,016 4,749
- - 41,727
$ $ 122,083 $ 25,640 $
762
143,454 30,793
265,537 57,195
$ 870,644
115,933
4,037,429
98,383
814,159
37,236
5,973,784
41,727
78,641 13,750 95,283
- - 1,006,353 1,006,353
(409) 283,429 - - - - 283,020
- - 20,875 78,414 2,613,064 2,712,353
- - - 1,975,831
10
- 106,889
126,751 - 126,751
- 2,500,479 2,500,479
- - - - - - - - (550,863)
205,392 2,514,229 (409) 283,429 20,875 78,414 2,613,064 1,006,353 8,256,106
$ 679,111 $ 3,582,245 $ 46,067 $ 283,429 $ 20,875 $ 343,951 $ 2,670,259 $ 1,006,353 $ 14,271,617
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Revenues:
Taxes
Charges for services
Fines and forfeitures
Intergovernmental revenue
Contributions
Miscellaneous revenue
Total revenues
Expenditures:
Current:
Administrative services
Police
Fire
Parks and recreation
Community development
Public works
Health
Traffic and transportation
Multi -Purpose Events Center
Capital outlay
Debt service:
Principal retirement
Interest and paying agent fees
Total expenditures
Excess of revenues over
(under) expenditures
Other financing sources (uses):
Capital lease proceeds
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - beginning
Prior period adjustment
Fund balance - ending
Special Revenue
Home
Community
Investment
Hotel/
Airport
Development
Section 8
Partnership
Motel
Improvement
Golf
Block Grant
Housing
Agreement
Tax
Grant
Fund
$
$
$
$ 1,744,321
$
$
-
434,373
1,112,813
3,062,514
291,390
4,981,550
-
8,479
-
-
-
278,658
1,112,813
3,070,993
291,390
1,744,321
4,981,550
713,031
116,845
-
-
91,368
-
863,167
745,730
3,272,106
536,396
100,000
-
-
13,908
83,958
976,483
3,272,106
536,396
91,368
83,958
863,167
136,330
(201,113)
(245,006)
1,652,953
4,897,592
(150,136)
-
-
-
47,848
102,288
(1,682,664)
(4,987,572)
-
-
(1,682,664)
(4,987,572)
150,136
136,330
(201,113)
(245,006)
(29,711)
(89,980)
-
529,770
1,017,762
738,088
29,721
(460,883)
109,781
$ 666,100
$ 816,649
$ 493,082
$ 10
$ (550,863)
$ 109,781
76
EXHIBIT C-2
Permanent
Debt Service
Capital Projects
Fund
Total
Miscellaneous
Airport
Miscellaneous
Nonmajor
MPEC
Special
Debt
Excess
413 Sales
Construction
Capital
Perpetual
Governmental
Fund
Revenue
Service
Sales Tax
Tax Projects
Fund
Projects
Care
Funds
$ -
$ -
$ 695,533
$
$
$
$
$
$ 2,439,854
244,952
39,341
-
718,666
-
216,239
216,239
-
2,947,640
-
12,395,907
19,000
457,537
2,407,982
400,000
209,567
158,125
3,652,211
1,359,876
378,175
105
250
-
34
38,707
43,175
2,107,459
1,623,828
4,038,932
3,103,620
250
400,000
209,601
196,832
43,175
21,530,336
-
264,386
-
-
-
-
-
-
1,335,766
258,179
258,179
161,506
-
-
161,506
88,094
220
976
89,290
-
-
-
4,554,232
46,575
2,800
149,375
2,243,984
-
53,360
2,297,344
-
417,289
-
26,259
-
541,414
3,733,910
-
13,279
-
-
3,747,189
12,380
355,766
-
784,153
513,270
1,665,569
-
-
3,350,000
-
-
3,350,000
-
-
1,998,760
-
-
-
-
1,998,760
3,746,290
3,835,779
5,348,760
-
797,432
26,259
569,650
976
20,148,624
(2,122,462)
203,153
(2,245,140)
250
(397,432)
183,342
(372,818)
42,199
1,381,712
-
-
-
-
-
-
-
47,848
2,091,484
314.765
2,204,956
9,811,962
158,000
14,683,455
-
(609,599)
-
(280,000)
(106,035)
(13,992,650)
(930,942)
(22,589,462)
2,091,484
(294,834)
2,204,956
(280,000)
(106,035)
(4,180,688)
(772,942)
-
(7,858,159)
(30,978)
(91,681)
(40,184)
(279,750)
(503,467)
(3,997,346)
(1,145,760)
42,199
(6,476,447)
236,370
2,605,910
39,775
563,179
2,117,342
4,075,760
3,758,824
964,154
16,325,553
-
-
-
-
(1,593,000)
-
-
-
(1,593,000)
$ 205,392
$ 2,514,229
$ (409)
$ 283,429
$ 20,875
$ 78,414
$ 2,613,064
$ 1,006,353
$ 8,256,106
EXHIBIT C-3
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - COMMUNITY DEVELOPMENT BLOCK GRANT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Revenues:
Charges for services
Intergovernmental revenue
Total revenues
Expenditures:
Administrative services
Community development
Public works
Traffic and transportation
Capital outlay
Total expenditures
Excess of revenues over (under) expenditures
Fund balance - beginning
Fund balance - ending
Variance With
Final Budget -
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
1,156,356
1,112,813
1,112,813
-
1,156,356
1,112,813
1,112,813
-
120,000
116,845
116,845
-
819,271
1,122,934
745,730
377,204
100,000
100,000
100,000
-
-
13,908
13,908
-
157,085
253,957
-
253,957
1,196,356
1,607,644
976,483
631,161
(40,000)
(494,831)
136,330
631,161
542,358
542,358
529,770
(12,588)
$ 502,358
$ 47,527
$ 666,100
$ 618,573
77
EXHIBIT C-4
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - SECTION 8 HOUSING FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Revenues:
Intergovernmental revenue
Miscellaneous revenue
Total revenues
Expenditures:
Community development
Capital outlay
Total expenditures
Excess of revenues under expenditures
Fund balance - beginning
Fund balance - ending
Budgeted Amounts
Original Final
$ 3,569,066 $ 3,606,998
3,569,066 3,606,998
3,567,650
1,416
3,569,066
1,234,910
$ 1,234,910
3,605,498
1,500
3,606,998
1,234,910
$ 1,234,910
Actual
$ 3,062,514
8,479
3,070,993
3,272,106
3,272,106
(201,113)
1.017.762
$ 816,649
Variance With
Final Budget -
Positive
(Negative)
$ (544,484)
8,479
(536,005)
333,392
1,500
334,892
(201,113)
(217,148)
$ (418,261)
78
EXHIBIT C-5
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - HOME INVESTMENT PARTNERSHIP AGREEMENT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Variance With
Final Budget -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:
Intergovernmental revenue
$ 325,444
$ 291,390
$ 291,390
$ -
Total revenues
325,444
291,390
291,390
-
Expenditures:
Community development
325,444
927,344
536,396
390,948
Total expenditures
325,444
927,344
536,396
390,948
Excess of revenues over (under) expenditures
-
(635,954)
(245,006)
390,948
Fund balance - beginning
807,431
807,431
738,088
(69,343)
Fund balance - ending
$ 807,431
$ 171,477
$ 493,082
$ 321,605
79
EXHIBIT C-6
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - HOTEL/MOTEL TAX FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Revenues:
Taxes
Total revenues
Expenditures:
Administrative services
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Excess of revenues and other sources
over (under) expenditures and other uses
Fund balance - beginning
Fund balance - ending
Budgeted Amounts
Original Final Actual
$ 1,600,000 $ 1,744,322 $ 1,744,321
1,600,000 1,744,322 1,744,321
93,500
93,500
1,506,500
(1,535,920)
(1,535,920)
91,369
91,369
1,652,953
(1,682,665)
(1,682,665)
91,368
91,368
1,652,953
(1,682,664)
(1,682,664)
Variance With
Final Budget -
Positive
(Negative)
$ (1)
(1)
1
1
1
1
(29,420)
(29,712)
(29,711)
1
17,391
17,391
29,721
12,330
$ (12,029) $
(12,321) $
10 $
12,331
EXHIBIT C-7
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GOLF FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Revenues:
Charges for services
Miscellaneous revenue
Total revenues
Expenditures:
Administrative services
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):
Capital lease proceeds
Transfers in
Total other financing sources (uses)
Excess of revenues and other sources
over (under) expenditures and other uses
Fund balance - beginning
Fund balance - ending
Budgeted
Amounts
Original
Final
Actual
$ 740,000
$ 740,000
$ 434,373
-
-
278,658
740,000
740,000
713,031
850,000
842,000
863,167
850,000
842,000
863,167
(110,000)
(102,000)
(150,136)
-
-
47,848
110,000
102,000
102,288
110,000
102,000
150,136
31,780
31,780
109,781
$ 31,780
$ 31,780
$ 109,781
Variance With
Final Budget -
Positive
(Negative)
$ (305,627)
278,658
(26,969)
(21,167)
(21,167)
(48,136)
47,848
288
48,136
78,001
$ 78,001
81
EXHIBIT C-8
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - MPEC FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Revenues:
Charges for services
Contributions
Miscellaneous revenue
Total revenues
Expenditures:
MPEC
Capital outlay
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Total other financing sources (uses)
Excess of revenues and other sources
over (under) expenditures and other uses
Fund balance - beginning
Fund balance - ending
Budgeted Amounts
Original Final Actual
$ 180,644 $ 232,427 $ 244,952
- - 19,000
1,516, 823 1,425,443 1,359,876
1,697,467 1,657,870 1,623,828
3,246,014
3,246,014
(1,548,547)
1,548,547
1,548,547
236,370
$ 236,370 $
3,737,407
12,380
3,749,787
(2,091,917)
2,129,485
2,129,485
3,733,910
12,380
3,746,290
(2,122,462)
2,091,484
2,091,484
37,568
(30,978)
236,370
236,370
273,938 $
205,392
Variance With
Final Budget -
Positive
(Negative)
$ 12,525
19,000
(65,567)
(34,042)
3,497
3,497
(30,545)
(38,001)
(38,001)
(68,546)
$ (68,546)
EXHIBIT C-9
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Revenues:
Taxes
Contributions
Miscellaneous revenue
Total revenues
Expenditures:
Debt service - principal
Debt service - interest and paying agent fees
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Total other financing sources (uses)
Excess of revenues and other sources
over (under) expenditures and other uses
Fund balance - beginning
Fund balance - ending
Budgeted Amounts
Original Final
$ 718,884 $ 720,912
4,606,535 4,576,850
5,325,419 5,297,762
3,000,000
2,375,419
5,375,419
(50,000)
3,350,000
1,997,762
5,347,762
(50,000)
Actual
$ 695,533
2,407,982
105
3,103,620
3,350,000
1,998,760
5,348,760
(2,245,140)
2,204,956
2,204,956
Variance With
Final Budget -
Positive
(Negative)
$ (25,379)
(2,168,868)
105
(2,194,142)
(998)
(998)
(2,195,140)
2,204,956
2,204,956
(50,000)
(50,000)
(40,184)
9,816
70,448
70,448
39,775
(30,673)
$ 20,448 $
20,448 $
(409) $
(20,857)
83
Nonmajor Enterprise Funds
Nonmajor enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises. The intent of the governing body is that the cost
of providing the service to the general public on a continuing basis be recovered primarily through
user charges.
Kickapoo Airport Fund
During the year ended September 30, 2000, the City acquired Kickapoo Downtown Airport, a
private airport. The Kickapoo Airport Fund was established to account for the operating
revenues and expenses of the airport.
Transit Fund
The Transit Fund accounts for the operation of the Wichita Falls transit system. This system
is supported from passenger fees, subsidies from the General Fund and subsidies from the
Federal Transit Administration.
Stormwater Drainage Fund
The Stormwater Drainage Fund was established to account for operating revenues and
expenses associated with the Storm Water Drainage Utility System (System). The System
was established effective May 1, 2001 and provides a funding mechanism for drainage
improvements in the City.
Waterpark Fund
The Waterpark Fund was established to account for the operating revenues and expenses of
the Castaway Cove Waterpark. The waterpark was purchased on February 4, 2010.
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2015
Kickapoo
Airport
Transit
Assets
Current assets:
Cash and cash equivalents
$ 416,116
$ -
Receivables (net of allowance for
uncollectible accounts):
Customer and trade
-
-
Government agencies
-
1,768,270
Other
43,798
-
Inventory
28,766
-
Prepaid items
4,498
-
Total current assets
493,178
1,768,270
Capital assets, net of accumulated depreciation
9,483,773
5,269,499
Total assets
9,976,951
7,037,769
Deferred outflows of resources
Pension -related
20,444
106,807
Liabilities
Current liabilities payable from current assets:
Accounts payable - trade
7,505
16,528
Accrued payroll
7,648
33,438
Accrued vacation and sick leave
9,674
16,878
Payable to other City funds
-
2,572,872
Payable to government agencies
166
-
Other liabilities
20,059
21,909
Total current liabilities payable
from current assets
45,052
2,661,625
Long-term liabilities:
Net pension liability
109,254
570,789
Deferred inflows of resources
Pension -related
5,273
27,547
Net position
Net investment in capital assets
9,483,773
5,269,499
Unrestricted
354,043
(1,384,884)
Total net position
$ 9,837,816
$ 3,884,615
84
EXHIBIT D-1
Total
Nonmajor
Stormwater Enterprise
Drainage Waterpark Funds
$ 3,940,802 $ 337,252 $ 4,694,170
362,977 - 362,977
101,741 - 1,870,011
- - 43,798
- 28,766
- - 4,498
4,405,520 337,252 7,004,220
22,298,733
4,013,336
41,065,341
26,704,253
4,350,588
48,069,561
23,750
14,053
165,054
97,444
-
121,477
6,244
3,945
51,275
11,898
9,088
47,538
-
-
2,572,872
-
4,252
4,418
281,545
-
323,513
397,131
17,285
3,121,093
126,924
75,103
882,070
6,125
3,625
42,570
22,298,733
4,013,336
41,065,341
3,899,090
255,292
3,123,541
$ 26,197,823
$ 4,268,628
$ 44,188,882
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Kickapoo
Airport Transit
Operating revenues:
Charges for services $ - $ 504,374
Rents, concessions and other 1,090,276 37,015
Total operating revenues 1,090,276 541,389
Operating expenses:
Personnel services
238,233
1,156,487
Supplies and materials
599,591
332,047
Maintenance and repairs
1,965
368,548
Utilities and other services
121,279
116,807
Insurance and contract support
12,931
45,857
Other expenses
62,779
256,711
Depreciation and amortization
400,611
143,100
Total operating expenses
1,437,389
2,419,557
Operating income (loss)
(347,113)
(1,878,168)
Nonoperating revenues (expenses):
Interest income
225
-
Intergovernmental operating grants
-
1,826,749
Total nonoperating revenues (expenses)
225
1,826,749
Income (loss) before contributions and transfers
(346,888)
(51,419)
Capital contributions
-
-
Transfers in
-
13,228
Transfers out
(47,977)
(383,138)
Change in net position
(394,865)
(421,329)
Net position - beginning
10,331,522
4,822,334
Prior period adjustment
(98,841)
(516,390)
Net position - ending
$ 9,837,816
$ 3,884,615
85
EXHIBIT D-2
Total
Nonmajor
Stormwater Enterprise
Drainage Waterpark Funds
$ 2,685,558
$ 1,082,337
$ 4,272,269
77,562
410,450
1,615,303
2,763,120
1,492,787
5,887,572
242,934
484,563
2,122,217
5,823
219,047
1,156,508
23,830
49,346
443,689
152,708
487,520
878,314
1,756
60,551
121,095
5,905
32,345
357,740
238,225
217,790
999,726
671,181
1,551,162
6,079,289
2,091,939
(58,375)
(191,717)
2,393
211
2,829
-
-
1,826,749
2,393
211
1,829,578
2,094,332
(58,164)
1,637,861
1,300,002
-
1,300,002
49,070
-
62,298
(516,126)
-
(947,241)
2,927,278
(58,164)
2,052,920
23,385,372
4,394,737
42,933,965
(114,827)
(67,945)
(798,003)
$ 26,197,823
$ 4,268,628
$ 44,188,882
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Cash flows from operating activities:
Receipts from customers and users
Payments to suppliers
Payments for interfund services
Payments to employees
Net cash provided (used) by operating activities
Cash flows from noncapital financing activities:
Intergovernmental operating grants
Interfund loan received
Transfers out to other funds
Transfers from other funds
Net cash provided (used) by noncapital financing activities
Cash flows from capital and related
financing activities:
Capital contributions
Acquisition and construction of capital assets
Net cash provided (used) for capital and related
financing activities
Cash flows from investing activities:
Interest on investments
Net cash provided by investing activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning
Cash and Cash Equivalents - Ending
Kickapoo
Airport Transit
$1,115,930
$ 541,389
(731,691)
(1,332,966)
(69,560)
(100,838)
(183,325)
(914,555)
131,354
(1,806,970)
-
444,667
-
1,732,213
(47,977)
(383,138)
-
13,228
(47,977)
1,806,970
(647) -
(647) -
225 -
225
82,955 -
333,161 -
$ 416,116 $ -
:.
EXHIBIT D-3
(Page 1 of 2)
Total
Nonmajor
Stormwater Enterprise
Drainage Waterpark Funds
$ 2,680,302
$ 1,492,787
$ 5,830,408
(910,168)
(893,306)
(3,868,131)
(155,693)
(20,055)
(346,146)
(195,402)
(419,840)
(1,713,122)
1,419,039
159,586
(96,991)
-
-
444,667
-
-
1,732,213
(516,126)
-
(947,241)
49,070
-
62,298
(467,056)
-
1,291,937
2,005,033
-
2,005,033
(4,146,074)
(633,551)
(4,780,272)
(2,141,041)
(633,551)
(2,775,239)
2,393
211
2,829
2,393
211
2,829
(1,186,665)
(473,754)
(1,577,464)
5,127,467
811,006
6,271,634
$ 3,940,802
$ 337,252
$ 4,694,170
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS (CONT'D.)
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Kickapoo
Airport
Transit
Cash flows from operating activities:
Operating income (loss)
$ (347,113)
$(1,878,168)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities:
Depreciation and amortization
400,611
143,100
(Increase) decrease in assets and deferred outflows of resources:
Receivables:
Customer and trade
-
-
Other
25,654
-
Inventory
48,765
-
Prepaid items
(22)
-
Deferred outflows - pension -related
(6,843)
(35,748)
Increase (decrease) in liabilities and deferred inflows of resources:
Accounts payable - trade
3,806
(39,165)
Accrued payroll
2,143
1,599
Accrued vacation and sick leave
2,213
-
Payable to government agencies
54
-
Other liabilities
2
(9,475)
Net pension liability
(3,189)
(16,660)
Deferred inflows - pension -related
5,273
27,547
Total adjustments
478,467
71,198
Net cash provided by (used in)
operating activities
$ 131,354
$(1,806,970)
87
EXHIBIT D-3
(Page 2 of 2)
Stormwater
Drainage W aterpark Totals
$ 2,091,939 $ (58,375) $ (191,717)
238,225 217,790 999,726
(82,818) - (82,818)
- - 25,654
- 48,765
- (22)
(7,949) (4,703) (55,243)
(829,098)
(500)
(864,957)
948
533
5,223
3,715
3,002
8,930
-
406
460
1,656
-
(7,817)
(3,704)
(2,192)
(25,745)
6,125
3,625
42,570
(672,900)
217,961
94,726
$ 1,419,039
$ 159,586
$ (96,991)
Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the City on a cost -reimbursement
basis.
Fleet Maintenance Fund
The Fleet Maintenance Fund accounts for the costs associated with the operation,
maintenance and replacement of the City's vehicle and equipment fleet. City departments
which use the vehicles and equipment are charged a monthly rental fee based upon actual
operating costs associated with each class of vehicle or equipment.
Duplicatinq Services Fund
The Duplicating Services Fund accounts for the costs associated with the operation and
maintenance of the City's duplicating equipment. City departments which use the duplicating
services are charged a fee based upon actual usage.
Employee Benefit Trust Fund
The Employee Benefit Trust Fund is used to account for and administer group health
insurance, which is self -insured by the City, and life insurance for employees and covered
dependents.
Information Technologv Fund
The Information Technology Fund accounts for the costs associated with the operation and
maintenance of the City's Information Technology assets. City departments which use
information technology are charged a fee based on usage.
��klla Fa �g
B/u�Skies Cro�den O��o�•tun%t-es
EXHIBIT E-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2015
Employee
Information
Fleet
Duplicating
Benefit
Technology
Maintenance
Services
Trust
Fund
Totals
Assets
Current assets:
Cash and cash equivalents
$ 844,915
$
$ 2,344,945
$ 3,158,963
$ 6,348,823
Restricted cash and cash equivalents
-
3,307,799
-
3,307,799
Receivables:
Other
-
986,550
986,550
Inventory
733,466
-
-
733,466
Prepaid items
-
201
-
54,836
55,037
Total current assets
1,578,381
201
6,639,294
3,213,799
11,431,675
Capital assets, net of accumulated depreciation
17,774,217
1,687
-
1,522,051
19,297,955
Total assets
19,352,598
1,888
6,639,294
4,735,850
30,729,630
Deferred outflows of resources
Pension -related
208,073
754
10,408
116,822
336,057
Liabilities
Current liabilities:
Accounts payable - trade
286,452
5,867
7,477
116,400
416,196
Accrued payroll
60,382
413
2,507
31,527
94,829
Accrued vacation and sick leave
106,235
-
-
50,768
157,003
Payable to other City funds
-
31,196
3,274,856
-
3,306,052
Estimated health claims payable
-
-
930,000
930,000
Other liabilities
(1)
371
370
Capital leases - current maturities
245,326
-
-
-
245,326
Total current liabilities
698,394
37,476
4,215,211
198,695
5,149,776
Long-term liabilities:
Capital leases, less current maturities
249,219
-
-
-
249,219
Net pension liability
1,111,966
4,029
55,622
624,308
1,795,925
Total long-term liabilities
1,361,185
4,029
55,622
624,308
2,045,144
Total liabilities
2,059,579
41,505
4,270,833
823,003
7,194,920
Deferred inflows of resources
Pension -related
53,665
194
2,684
30,130
86,673
Net position
Net investment in capital assets
17,279,672
1,687
-
1,522,051
18,803,410
Unrestricted
167,755
(40,744)
2,376,185
2,477,488
4,980,684
Total net position
$ 17,447,427
$ (39,057)
$ 2,376,185
$ 3,999,539
$ 23,784,094
m
EXHIBIT E-2
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Employee
Information
Fleet
Duplicating
Benefit
Technology
Maintenance
Services
Trust
Fund
Totals
Operating revenues:
Charges for services
$ 9,570,852
$ 143,808
$
$ 3,982,435
$ 13,697,095
Rents, concessions and other
40,398
-
1,498,818
-
1,539,216
Contributions
-
-
11,986,245
-
11,986,245
Total operating revenues
9,611,250
143,808
13,485,063
3,982,435
27,222,556
Operating expenses:
Personnel services
2,005,566
10,212
99,822
1,080,846
3,196,446
Supplies and materials
3,228,801
1,432
196
624,712
3,855,141
Maintenance and repairs
2,098,783
-
-
543,477
2,642,260
Utilities and other services
86,205
2,425
80,135
154,168
322,933
Insurance and contract support
55,979
-
13,861,944
-
13,917,923
Other expenses
206,587
111,193
1,733,117
6,334
2,057,231
Depreciation and amortization
3,824,216
1,174
-
323,485
4,148,875
Total operating expenses
11,506,137
126,436
15,775,214
2,733,022
30,140,809
Operating income (loss)
(1,894,887)
17,372
(2,290,151)
1,249,413
(2,918,253)
Nonoperating revenues (expenses):
Interest income
-
-
(88,889)
-
(88,889)
Gain on sale of capital assets
90,542
4,735
95,277
Interest expense
(11,557)
-
(11,557)
Total nonoperating revenues
(expenses)
78,985
-
(88,889)
4,735
(5,169)
Income (loss) before transfers
(1,815,902)
17,372
(2,379,040)
1,254,148
(2,923,422)
Transfers in
2,005,366
-
2,343,000
-
4,348,366
Transfers out
(312,000)
-
-
-
(312,000)
Change in net position
(122,536)
17,372
(36,040)
1,254,148
1,112,944
Net position - beginning
18,575,952
(52,784)
2,462,546
3,310,200
24,295,914
Prior period adjustment
(1,005,989)
(3,645)
(50,321)
(564,809)
(1,624,764)
Net position - endinc
$ 17,447,427
$ (39,057)
$ 2,376,185
$ 3,999,539
$ 23,784,094
EXHIBIT E-3
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Cash flows from operating activities:
Received from customers and users
Received from interfund charges
Other operating receipts
Payments to suppliers
Payments for interfund services
Payments to employees
Net cash provided (used) by operating activities
Cash flows from noncapital financing activities:
Interfund loans received
Interfund loans repaid
Transfers in from other funds
Transfers out to other funds
Net cash provided (used) by noncapital financing activities
Cash flows from capital and related
financing activities:
Acquisition of capital assets
Proceeds from sale of capital assets
Principal paid on long-term debt
Interest and fees paid on long-term debt
Net cash used for capital and
related financing activities
Cash flows from investing activities:
Interest on investments
Net cash used by investing activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning
Cash and Cash Equivalents - Ending
Cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation and amortization
(Increase) decrease in assets and deferred outflows:
Receivables:
Other
Inventory
Prepaid items
Deferred outflows - pension -related
Increase (decrease) in liabilities and deferred outflows:
Accounts payable - trade
Accrued payroll
Accrued vacation and sick leave
Estimated health claims payable
Other liabilities
Net pension liability
Deferred outflows - pension -related
Total adjustments
Net cash provided (used) by
operating activities
Employee
Information
Fleet
Duplicating
Benefit
Technology
Maintenance
Services
Trust
Fund
Totals
$ 280,176
$ -
$ 3,607,931
$ -
$ 3,888,107
9,355,950
143,808
8,841,575
3,982,435
22,323,768
-
-
49,630
-
49,630
(5,584,945)
(118,172)
(15,365,511)
(1,576,792)
(22,645,420)
(263,055)
(4,011)
(13,370)
(113,645)
(394,081)
(1,474,707)
(5,905)
(73,829)
(825,617)
(2,380,058)
2,313,419
15,720
(2,953,574)
1,466,381
841,946
-
-
3,205,126
-
3,205,126
-
(15,720)
-
(15,720)
2,005,366
2,343,000
4,348,366
(312,000)
-
(312,000)
1,693,366
(15,720)
5,548,126
7,225,772
(3,596,797)
-
(979,910)
(4,576,707)
184,858
4,735
189,593
(241,554)
-
(241,554)
(11,557)
(11,557)
(3,665,050)
(975,175)
(4,640,225)
(88,889)
(88,889)
-
(88,889)
-
(88,889)
341,735
2,505,663
491,206
3,338,604
503,180
3,147,081
2,667,757
6,318,018
$ 844,915
$
$ 5,652,744
$ 3,158,963
$ 9,656,622
$ (1,894,887) $ 17,372 $ (2,290,151) $ 1,249,413 $ (2,918,253)
3,824,216 1,174 323,485 4,148,875
27,993
(986,585)
49,240
-
253,111
287
(54,836)
(69,642)
(252)
(3,483)
(39,101)
84,872
(2,343)
(9,672)
(25,770)
6,993
(594)
139
4,870
13,429
-
-
(3,588)
-
334,460
(3,117)
-
658
(32,454)
(118)
(1,624)
(18,222)
53,665
194
2,684
30,130
4,208,306
(1,652)
(663,423)
216,968
$ 2,313,419
$ 15,720
$ (2,953,574)
$ 1,466,381
(958,592)
49,240
198,562
(112,478)
47,087
11,408
9,841
334,460
(2,459)
(52,418)
86,673
3,760,199
$ 841,946
90
Agency Fund
Escheatment Fund - The agency fund is used to account for assets held by the City of Wichita
Falls in a custodial capacity. The assets in this fund have been abandoned or remain unclaimed
pending escheatment to the State of Texas.
r
J�Ii4i
C a a 5
T E X A S
B/u�Skie, Cro�den Oyyo�'tctn�7�ies
EXHIBIT F-1
CITY OF WICHITA FALLS, TEXAS
AGENCYFUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Balance Balance
10/1/2014 Additions Deductions 9/30/2015
ESCHEATMENTFUND
Assets
Cash and cash equivalents $ 103,132 $ 31,642 $ 17,061 $ 117,713
Liabilities
Other liabilities $ 103,132 $ 31,642 $ 17,061 $ 117,713
91
Component Units
Discretely Presented Component Units of the City of Wichita Falls are legally separate entities;
however, the City is considered to be financially accountable for their operations. The four
discretely presented component units are as follows:
Wichita Falls Economic Development Corporation
The Wichita Falls Economic Development Corporation is a nonprofit corporation formed in
May 1997 for the purpose of increasing employment opportunities, primarily through assisting
qualified enterprises with funds provided by a portion of the local sales tax. The Corporation
operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A.
Wichita Falls 4B Sales Tax Corporation
The Wichita Falls 4B Sales Tax Corporation is a nonprofit corporation formed in May 1997 for
the purpose of increasing employment opportunities and for public improvement projects
such as parks, auditoriums, learning centers, open space improvements, athletic and
exhibition facilities and the related maintenance and operating costs of such projects. These
projects are funded by a portion of the local sales tax. The Corporation operates under the
authority of Vernon's Civil Statutes, Article 5190.6, Section 4B.
Wichita Falls Reinvestment Zone #2
The Wichita Falls Reinvestment Zone #2 was created in August 2005 by the City, with the
advice and consent of the Wichita Falls Independent School District and Wichita County.
The purpose of the Wichita Falls Reinvestment Zone #2 is to capture increments of growth in
real property values in the designated zone area from base values established in January
2004 and use the ad valorem taxes derived from the increments to contribute to the zoned
area. Tax funds derived from the increment can only be spent for public improvements in the
zoned area or for payment of debt service on bonds issued to provide funds for public
improvements.
Wichita Falls Reinvestment Zone #3
The Wichita Falls Reinvestment Zone #3 was created in September 2009 by the City, with
the advice and consent of the Wichita Falls Independent School District and Wichita County.
The purpose of the Wichita Falls Reinvestment Zone #3 is to capture increments of growth in
real property values in the designated zone area from base values established in January
2009 and use the ad valorem taxes derived from the increments to contribute to the zoned
area. Tax funds derived from the increment can only be spent for public improvements in the
zoned area or for payment of debt service on bonds issued to provide funds for public
improvements.
EXHIBIT G-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET POSITION
COMPONENT UNITS
SEPTEMBER 30, 2015
Wichita Falls
Economic
Wichita Falls
Wichita Falls
Wichita Falls
Development
4B Sales Tax
Reinvestment
Reinvestment
Corporation
Corporation
Zone #2
Zone #3
Totals
Assets
Cash and cash equivalents
$ 18,225,416
$ 3,248,042
$ -
$ 298,824
$ 21,772,282
Receivables:
Government agencies
633,042
633,042
(458)
1,265,626
Capital assets, net of accumulated depreciation
2,207,394
-
-
2,207,394
Total assets
21,065,852
3,881,084
298,366
25,245,302
Liabilities
Accounts payable - trade
59,341
17,553
-
76,894
Total liabilities
59,341
17,553
76,894
Net position
Net investment in capital assets
2,207,394
-
-
2,207,394
Unrestricted
18,799,117
3,863,531
298,366
22,961,014
Total net position
$ 21,006,511
$ 3,863,531
$
$ 298,366
$ 25,168,408
92
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Community development
Wichita Falls Economic Development Corporation
Wichita Falls 46 Sales Tax Corporation
Wichita Falls Reinvestment Zone #2
Wichita Falls Reinvestment Zone #3
Total component units
General revenues and special item:
Taxes:
Property tax
Sales tax
Investment earnings
Miscellaneous
Total general revenues and special item
Change in net position
Net position - beginning
Prior period adjustment
Net position - ending
Expenses
Program Revenue
Operating
Charges for Grants and
Services Contributions
$ 2,643,205 $ 106,800 $ -
4,508,811 - 498,085
498,085 - -
$ 7,650,101 $ 106,800 $ 498,085
93
EXHIBIT G-2
Net(Expense)Revenue and
Changes in Net Position
Wichita Falls
Economic Wichita Falls Wichita Falls Wichita Falls
Development 4B Sales Tax Reinvestment Reinvestment
Corporation Corporation Zone #2 Zone #3
$ (2,536,405) $ -
(4,010,726)
(2,536,405) (4,010,726)
(498,085)
(498,085)
Totals
$ (2,536,405)
(4,010,726)
(498,085)
(7,045,216)
-
- 497,991
65,982
563,973
3,733,901
3,733,901 -
-
7,467,802
9,556
117,106 94
133
126,889
118,231
- -
-
118,231
3,861,688
3,851,007 498,085
66,115
8,276,895
1,325,283
(159,719) -
66,115
1,231,679
19,681,228
2,430,250 -
232,251
22,343,729
-
1,593,000 -
-
1,593,000
$ 21,006,511
$ 3,863,531 $ -
$ 298,366
$ 25,168,408
*rt
Uic1-
' 4
i aFlo
T E X A S
B/u,Skie, GroIww, OPlpnrtmnfrie,
Supporting Schedules
'7.
S
T E X A S
�/uE S� %ES Crc*ldrn Cp�c*rfur� %t-�s
Fiscal Year
Ending
September 30,
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES
SEPTEMBER 30, 2015
General Obligation Bonds
Serial Bond
Interest
Total Bonds
Maturities (1)
on Bonds
and Interest
$ 2,752,122
$ 101,103
$ 2,853,225
789,373
60,777
850,150
801,559
44,841
846,400
468,681
28,619
497,300
479,266
19,384
498,650
489,705
9,844
499,549
$ 5,780,706 $ 264,568 $ 6,045,274
(1) Includes amortization of bond premium of $85,706.
(2) Includes amortization of bond premium of $576,227.
(3) Includes amortization of bond premium of $191,092.
Combination Tax and Revenue Bonds
Serial Bond
Interest
Total Bonds
Maturities (2)
on Bonds
and Interest
$ 5,482,940
$ 2,441,342
$ 7,924,282
7,787,325
2,365,598
10,152,923
7,978,114
2,171,958
10,150,072
4,447, 395
1,968,971
6,416,366
4,584,505
1,870,932
6,455,437
4,726,446
1,747,622
6,474,068
4,873,112
1,614,997
6,488,109
5,034,223
1,466,865
6,501,088
5,200,154
1,310,105
6,510,259
5,395,902
1,144,231
6,540,133
5,191,434
979,936
6,171,370
3,726,747
818,179
4,544,926
3,840,717
729,271
4,569,988
3,969,658
636,177
4,605,835
3,283,516
555,612
3,839,128
3,377,340
491,481
3,868,821
3,251,120
424,899
3,676,019
3,350,579
364,231
3,714,810
1,145,000
299,782
1,444,782
1,170,000
278,191
1,448,191
1,185,000
255,699
1,440,699
1,215,000
232,357
1,447,357
1,235,000
208,162
1,443,162
1,260,000
183,148
1,443,148
1,285,000
157,250
1,442,250
1,310,000
130,455
1,440,455
1,340,000
102,761
1,442,761
1,370,000
74,237
1,444,237
1,395,000
44,997
1,439,997
1,425,000
15,105
1,440,105
$ 100,836,227 $ 25,084,551 $ 125,920,778
94
EXHIBIT H-1
Water and
Sewer Priority Lien Revenue Bonds
Totals - All Bonded Debt
Serial Bond
Interest
Total Bonds
Serial Bond
Interest
Total Bonds
Maturities (3)
on Bonds
and Interest
Maturities
on Bonds
and Interest
$ 3,791,420
$ 4,059,030
$ 7,850,450
$ 12,026,482
$ 6,601,475
$ 18,627,957
3,940,386
3,900,052
7,840,438
12,517,084
6,326,427
18,843,511
4,114,310
3,734,740
7,849,050
12,893,983
5,951,539
18,845,522
8,163,252
3,572,198
11,735,450
13,079,328
5,569,788
18,649,116
8,520,949
3,218,376
11,739,325
13,584,720
5,108,692
18,693,412
8,903,475
2,838,350
11,741,825
14,119,626
4,595,816
18,715,442
9,295,889
2,441,111
11,737,000
14,169,001
4,056,108
18,225,109
9,713,189
2,026,211
11,739,400
14,747,412
3,493,076
18,240,488
10,150,366
1,592,534
11,742,900
15,350,520
2,902,639
18,253,159
10,602,415
1,139,185
11,741,600
15,998,317
2,283,416
18,281,733
11,074,332
665,493
11,739,825
16,265,766
1,645,429
17,911,195
3,816,109
170,565
3,986,674
7,542,856
988,744
8,531,600
-
-
-
3,840,717
729,271
4,569,988
3,969,658
636,177
4,605,835
3,283,516
555,612
3,839,128
3,377,340
491,481
3,868,821
3,251,120
424,899
3,676,019
3,350,579
364,231
3,714,810
1,145,000
299,782
1,444,782
1,170,000
278,191
1,448,191
1,185,000
255,699
1,440,699
1,215,000
232,357
1,447,357
1,235,000
208,162
1,443,162
1,260,000
183,148
1,443,148
1,285,000
157,250
1,442,250
1,310,000
130,455
1,440,455
1,340,000
102,761
1,442, 761
1,370,000
74,237
1,444,237
1,395,000
44,997
1,439,997
-
-
-
1,425,000
15,105
1,440,105
$ 92,086,092
$ 29,357,845
$ 121,443,937
$ 198,703,025
$ 54,706,964
$ 253,409,989
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30, 2015
Final
Interest Rates
Issue
Maturity
Annual
and (Dates)
Date
Date
Serial Payments
General Obligation Bonds:
General Obligation Refunding Bonds,
1.50, 2.00, 3.00
10/15/11
09/01/21
415,000 (2012)
Series 2011
(3/1, 9/1)
405,000 (2013)
410,000 (2014)
420,000 (2015)
425,000 (2016)
435,000 (2017)
445,000 (2018)
455,000 (2019)
470,000 (2020)
485,000 (2021)
General Obligation Refunding Bonds,
Series 2011 - Premium
General Obligation Refunding Bonds,
1.50, 2.00, 3.00
03/15/13
09/01/18
375,000 (2014)
Series 2013
(3/1, 9/1)
385,000 (2015)
2,305,000 (2016)
335,000 (2017)
340,000 (2018)
Total General Obligation Bonds
Combination Tax and Revenue Bonds
Combination Tax and Revenue 4.90, 5.00 09/01/05 08/01/16 115,000 (2005)
Refunding Bonds, (211, 811) 2,055,000 (2006)
Series 2005 2,150,000 (2007)
2,210,000 (2013)
2,350,000 (2014)
2,490,000 (2015)
2,650,000 (2016)
Combination Tax and
Revenue Refunding
Bonds, Series 2005 - Premium
95
EXHIBIT H-2
(Page 1 of 6)
Bonds
Retired or
Authorized Issued Refunded Outstanding
$ 4,365,000 $ 4,365,000 $ 1,650,000 $ 2,715,000
- 194,300 108,594 85,706
3,740,000 3,740,000 760,000 2,980,000
8,105,000
8,299,300
2,518,594
5,780,706
14,020,000
14,020,000
13,280,000
740,000
1,050,891 1,023,541 27,350
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT-D.)
SEPTEMBER 30, 2015
Final
Interest Rates
Issue Maturity
Annual
and (Dates)
Date Date
Serial Payments
Combination Tax and Revenue
3.55, 3.60, 3.90, 4.00
11/15/06 09/01/26
705,000 (2007)
Certificates of Obligation,
4.10, 4.20, 4.25, 5.00
580,000 (2008)
Series 2006A
(3/1, 9/1)
605,000 (2009)
625,000 (2010)
650,000 (2011)
680,000 (2012)
705,000 (2013)
735,000 (2014)
760,000 (2015)
795,000 (2016)
825,000 (2017)
855,000 (2018)
890,000 (2019)
930,000 (2020)
965,000 (2021)
1,010,000 (2022)
1,060,000 (2023)
1,110,000 (2024)
1,165,000 (2025)
1,225,000 (2026)
Combination Tax and
Revenue Certificates of
Obligation, Series 2006A - Premium
Combination Tax and Revenue 5.20, 5.30, 6.00, 6.25 11/15/06 09/01/26
170,000 (2007)
Certificates of Obligation, (3/1, 9/1)
130,000 (2008)
Series 2006E
135,000 (2009)
140,000 (2010)
150,000 (2011)
155,000 (2012)
165,000 (2013)
175,000 (2014)
185,000 (2015)
190,000 (2016)
205,000 (2017)
215,000 (2018)
230,000 (2019)
240,000 (2020)
255,000 (2021)
270,000 (2022)
290,000 (2023)
305,000 (2024)
325,000 (2025)
345,000 (2026)
Combination Tax and
Revenue Certificates of
Obligation, Series 20068 - Premium
91
Authorized
16,875,000
Issued
16, 875, 000
448,769
Bonds
Retired or
Refunded Outstanding
6,045,000 10,830,000
280,400 168,369
4,275,000 4,275,000 1,405,000 2,870,000
103,279
64,047 39,232
EXHIBIT H-2
(Page 2 of 6)
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT-D.)
SEPTEMBER 30, 2015
Final
Interest Rates
Issue Maturity
Annual
and (Dates)
Date Date
Serial Payments
Combination Tax and Revenue 2.25, 2.50, 2.75, 3.00,
01/15/09 10/01/29
340,000 (2010)
Certificates of Obligation, 3.25, 3.50, 4.00, 4.125,
405,000 (2011)
Series 2009 4.25, 4.50, 4.625, 4.75
415,000 (2012)
(4/1, 10/1)
425,000 (2013)
435,000 (2014)
450,000 (2015)
460,000 (2016)
475,000 (2017)
490,000 (2018)
505,000 (2019)
525,000 (2020)
550,000 (2021)
570,000 (2022)
595,000 (2023)
620,000 (2024)
650,000 (2025)
675,000 (2026)
710,000 (2027)
745,000 (2028)
780,000 (2029)
Combination Tax and Revenue 5.60 (2/1, 8/1) 01/01/10 02/01/25 165,000 (2011)
Certificates of Obligation, 185,000 (2012)
Series 2010 195,000 (2013)
205,000 (2014)
215,000 (2015)
230,000 (2016)
240,000 (2017)
255,000 (2018)
270,000 (2019)
285,000 (2020)
300,000 (2021)
320,000 (2022)
335,000 (2023)
355,000 (2024)
375,000 (2025)
Combination Tax and Revenue 2.00, 3.00, 3.50, 4.00 05/01/10 08/01/18 170,000 (2010)
Refunding Bonds, Series 2010 (2/1, 8/1) 285,000 (2012)
595,000 (2013)
580,000 (2014)
575,000 (2015)
555,000 (2016)
3,470,000 (2017)
3,600,000 (2018)
Combination Tax and Revenue
Refunding Bonds, Series 2010 -
Premium
97
EXHIBIT H-2
(Page 3 of 6)
Bonds
Retired or
Authorized Issued Refunded Outstanding
10.820,000 10,820,000 2,470,000 8,350,000
3,930,000 3,930,000 965,000 2,965,000
9,830,000 9,830,000 2,205,000 7,625,000
685,333 491,750 193,583
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30, 2015
Final
Interest Rates
Issue Maturity
Annual
and (Dates)
Date Date
Serial Payments
Combination Tax and Revenue
2.00, 3.00, 4.00
10/15/11 09/01/31
135,000 (2013)
Certificates of Obligation,
(3/1, 9/1)
135,000 (2014)
Series 2011
140,000 (2015)
145,000 (2016)
145,000 (2017)
150,000 (2018)
150,000 (2019)
155,000 (2020)
160,000 (2021)
165,000 (2022)
165,000 (2023)
170,000 (2024)
180,000 (2025)
185,000 (2026)
190,000 (2027)
195,000 (2028)
205,000 (2029)
210,000 (2030)
220,000 (2031)
Combination Tax and Revenue
Certificates of Obligation,
Series 2011 -Premium
Combination Tax and Revenue 2.00, 3.00, 3.25, 3.375 03/01/13 09/01/33 530,000 (2014)
Certificates of Obligation, (3/1, 9/1) 795,000 (2015)
Series 2013 815,000 (2016)
830,000 (2017)
845,000 (2018)
860,000 (2019)
890,000 (2020)
915,000 (2021)
940,000 (2022)
970,000 (2023)
1,000,000 (2024)
1,030,000 (2025)
1,060,000 (2026)
1,090,000 (2027)
1,125,000 (2028)
1,160,000 (2029)
1,195,000 (2030)
1,235,000 (2031)
1,275,000 (2032)
1,315,000 (2033)
Combination Tax and Revenue
Certificates of Obligation, Series 2013 -
Premium
Authorized
3,200,000
Issued
3,200,000
98,494
Bonds
Retired or
Refunded Outstanding
410,000 2,790,000
28,457 70,037
19,875,000 19,875,000 1,325,000 18,550,000
96,293
18,637 77,656
EXHIBIT H-2
(Page 4 of 6)
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT-D.)
SEPTEMBER 30, 2015
Combination Tax and Revenue
Certificates of Obligation,
Series 2013A
Combination Tax and Revenue
Certificates of Obligation,
Series 2015
Interest Rates
and (Dates)
2.00, 3.00, 3.125, 3.25,
3.625, 3.75, 4.00, 4.25,
4.375, 4.50, 4.625
(3/1, 9/1)
0.00, 0.09, 0.40, 0.68,
0.89, 1.05, 1.16, 1.29,
1.40, 1.47, 1.53, 1.59
1.64, 1.69, 1.74, 1.79
1.84, 1.89, 1.93, 1.96
1.99, 2.02, 2.05, 2.08
2.10, 2.11, 2.12
(3/1, 9/1)
Final
Issue Maturity
Date Date
08/15/13 09/01/33
01/02/15 03/01/45
Annual
Serial Payments
505,000 (2014)
500,000 (2015)
510,000 (2016)
520,000 (2017)
530,000 (2018)
545,000 (2019)
560,000 (2020)
580,000 (2021)
595,000 (2022)
615,000 (2023)
630,000 (2024)
650,000 (2025)
675,000 (2026)
700,000 (2027)
730,000 (2028)
760,000 (2029)
795,000 (2030)
830,000 (2031)
865,000 (2032)
905,000 (2033)
890,000 (2016)
960,000 (2017)
960,000 (2018)
960,000 (2019)
965,000 (2020)
970,000 (2021)
975,000 (2022)
980,000 (2023)
990,000 (2024)
1,005,000 (2025)
1,015,000 (2026)
1,030,000 (2027)
1,040,000 (2028)
1,060,000 (2029)
1,080,000 (2030)
1,090,000 (2031)
1,110,000 (2032)
1,130,000 (2033)
1,145,000 (2034)
1,170,000 (2035)
1,185,000 (2036)
EXHIBIT H-2
(Page 5 of 6)
Bonds
Retired or
Authorized Issued Refunded Outstanding
13,000,000 13,000,000 1,005,000 11,995, 000
33,545,000 33,545,000 33,545,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT-D.)
SEPTEMBER 30, 2015
Final
Interest Rates
Issue Maturity
Annual
and (Dates)
Date Date
Serial Payments
1,215,000 (2037)
1,235,000 (2038)
1,260,000 (2039)
1,285,000 (2040)
1,310,000 (2041)
1,345,000 (2042)
1,370,000 (2043)
1,395,000 (2044)
1,425,000 (2045)
Total Combination Tax and Revenue Bonds
Water and Sewer System
4.00, 4.25, 4.375, 4.50
02/01/07 08/01/27
225,000 (2008)
Priority Lien Refunding Revenue
(2/1, 8/1)
230,000 (2009)
Bonds, Series 2007
240,000 (2010)
250,000 (2011)
260,000 (2012)
3,325,000 (2013)
3,460,000 (2014)
3,610,000 (2015)
3,765,000 (2016)
3,915,000 (2017)
4,090,000 (2018)
8,140,000 (2019)
8,500,000 (2020)
8,885,000 (2021)
9,280,000 (2022)
9,700,000 (2023)
10,140,000 (2024)
10,595,000 (2025)
11,070,000 (2026)
3,815,000 (2027)
Water and Sewer System
Priority Lien Refunding Revenue
Bonds, Series 2007 - Premium
Total Priority Lien Revenue Bonds
Total All Bonds
100
EXHIBIT H-2
(Page 6 of 6)
Bonds
Retired or
Authorized Issued Refunded Outstanding
129,370,000
131,853,059
31,016,832
100,836,227
103,495,000
103,495,000
11,600,000
91,895,000
437,938 246,846 191,092
103,495,000 103,932,938 11,846,846 92,086,092
$ 240,970,000 $ 244,085,297 $ 45,382,272 $ 198,703,025
r
T E X A S
S/ct�Skies Cr�lden O��nt'turi�/;�es
EXHIBIT H-3
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE COVERAGE - REVENUE BONDS
SEPTEMBER 30, 2015
Water and Sewer Revenue Bonds:
Change in net position (Exhibit A-8)
$ 4,855,896
Add:
Depreciation and amortization
$ 7,431,495
Interest expense and paying agent fees
5,519,369
Transfers out
1,602,322
14,553,186
Subtract:
West Texas Utilities water revenues
399,738
Gain (loss) on sale/abandonment of capital assets
-
Capital contributions from developers
258,587
Transfers in
1,203,393
(1,861,718)
Net earnings for determining debt service coverage
$ 17,547,364
Priority
Subordinate
Lien Bonds
Lien Bonds
Net earnings for determining debt service coverage
$ 17,547,364
Principal and interest requirements to maturity
$ 121,443,937
$ -
Number of years remaining to pay bonds
12
N/A
Average annual principal and interest requirement
10,120,328
N/A
Minimum bond covenant debt service coverage
1.25
1.10
Minimum debt service coverage requirement
$ 12,650,410
$ -
12,650,410
Excess over debt service coverage requirements
$ 4,896,954
101
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2015
Buildings
Machinery
Land and
and
and
Betterments
Improvements
Equipment
Administrative services:
Mayor and City Council
$
$ -
$ -
City Manager
265,898
2,019
Personnel/Risk Management
-
4,658
Martin Luther King Center
-
749,447
-
Library
477,942
4,511,041
636,642
General Public Information
-
-
420,914
Building Maintenance
-
2,770,246
139,556
Nondepartmental
46,347
380,754
76,380
Municipal Court
230,000
316,527
189,899
Legal
-
_
1,488
City Clerk
1,411
Homeland security
721,006
Training Center
-
-
536,254
Golf course
3,808,375
786,801
94,140
Total administrative services
4,562,664
9,780,714
2,824,367
Police
1,131,749
10,231,506
14,842,231
Fire
190,565
7,051,522
204,922
Parks and recreation:
Recreation
754,606
1,744,656
252,880
Park maintenance
4,586,567
642,417
61,938
Cemetery
141,685
-
9,423
Total parks and recreation
5,482,858
2,387,073
324,241
Accounting/finance:
Information Systems
-
-
3,895,195
Total accounting/finance
3,895,195
Community development:
Planning
26,833
Inspection
-
-
3,610
Property management
10,334,824
420,892
26,999
Weed and Seed program
-
-
7,504
Hazard Mitigation grant
170,800
-
-
Total community development
10,505,624
420,892
64,946
Public works:
Engineering
-
13,744
125,848
Street maintenance
10,147
100,108
36,963
Infrastructure
1,300,172
-
-
Total public works
1,310,319
113,852
162,811
Health:
Administration
34,820
2,877,755
329,550
General City nursing
76,411
1,123
19,678
Environmental health
_
-
21,911
Lab water pollution
-
-
37,273
Animal reclaim center
150,737
3,321,311
30,808
Total health
261,968
6,200,189
439,220
Traffic and transportation
-
31,045
136,177
Multi -Purpose Events Center
9,560,210
38,004,988
499,510
Wichita Falls Business Park
1,099,507
-
-
Total capital assets used in the operation of governmental funds
$ 34,105,464
$ 74,221,781
$ 23,393,620
102
EXHIBIT H-4
Furniture
and
Construction
Fixtures
Infrastructure in Progress Totals
$ 5,218
$ $ $ 5,218
13,644
281,561
4,660
9,318
-
749,447
86,417
5,712,042
3,184
424,098
-
2,909,802
-
503,481
1,435
737,861
-
1,488
1,411
721,006
536,254
-
4,689,316
1 14, 558
17,282,303
8,760
205,700 26,419,946
-
- 7,447,009
1,727
2,753,869
-
5,290,922
-
151,108
1,727
8,195,899
-
3,895,195
3,895,195
26,833
3,610
10,782,715
7,504
170,800
10,991,462
139,592
147,218
164,475,899 165,776,071
- 164,475,899 166,062,881
14,573 - 3,256,698
- 97,212
21,911
- 37,273
- 52,500 3,555,356
14,573 52,500 6,968,450
- 11,005,182 11,172,404
22,117 - 48,086,825
- - - 1,099,507
$ 161,735 $ 175,481.081 $ 258,200 $ 307,621,881
EXHIBIT H-5
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Beginning
Ending
Balance
Balance
10/1/2014
Additions
Deletions
9/30/2015
Administrative services:
Mayor and City Council
$ 5,218
$
$
$ 5,218
City Manager
281,561
281,561
Personnel/Risk Management
9,318
9,318
Martin Luther King Center
749,447
-
749,447
Library
5,553,613
170,764
12,335
5,712,042
General Public Information
419,023
30,791
25,716
424,098
Building Maintenance
2,822,859
86,943
-
2,909,802
Nondepartmental
472,615
30,866
503,481
Municipal Court
737,861
-
-
737,861
Legal
3,357
1,869
1,488
City Clerk
1,411
-
-
1,411
Homeland security
725,792
10,425
15,211
721,006
Training center
536,254
-
-
536,254
Golf course
4,385,211
304,105
-
4,689,316
Total administrative services
16,703,540
633,894
55,131
17,282,303
Police
27,232,461
176,086
988,601
26,419,946
Fire
7,485,707
-
38,698
7,447,009
Parks and recreation:
Recreation
2,747,365
9,308
2,804
2,753,869
Park maintenance
5,561,987
-
271,065
5,290,922
Cemetery
151,108
-
-
151,108
Total parks and recreatior
8,460,460
9,308
273,869
8,195,899
Accounting/finance:
Information Systems
2,965,215
1,124,931
194,951
3,895,195
Total accounting/finance
2,965,215
1,124,931
194,951
3,895,195
Community development:
Planning
26,833
-
-
26,833
Inspection
4,970
1,360
3,610
Property management
10,782,715
-
10,782,715
Weed and Seed program
7,504
7,504
Hazard Mitigation Grant
170,800
-
170,800
Total community development
10,992,822
-
1,360
10,991,462
Public works:
Engineering
136,510
3,082
-
139,592
Street maintenance
147,218
-
-
147,218
Infrastructure
162,223,120
3,929,548
376,597
165,776,071
Total public works
162,506,848
3,932,630
376,597
166,062,881
Health:
Administration
3,257,850
-
1,152
3,256,698
General city nursing
97,212
-
-
97,212
Environmental health
21,362
13,000
12,451
21,911
Lab water pollution
44,229
-
6,956
37,273
Animal reclaim center
3,502,856
52,500
-
3,555,356
Total health
6,923,509
65,500
20,559
6,968,450
Traffic and transportation
10,717,777
569,252
114,625
11,172,404
Multi -Purpose Events Center
47,584,257
502,568
-
48,086,825
Wichita Falls Business Park
1,099,507
-
-
1,099,507
Total capital assets
$ 302,672,103
$ 7,014,169
$ 2,064,391
$ 307,621,881
111191
EXHIBIT H-6
CITY OF WICHITA FALLS, TEXAS
REGIONAL AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Capital Assets:
Land and betterments
Buildings and improvements
Machinery and equipment
Furniture and fixtures
Construction in progress
Total capital assets
Accumulated Depreciation:
Land and betterments
Buildings and improvements
Machinery and equipment
Furniture and fixtures
Total accumulated depreciation
Net capital assets
Balance Balance
10/1/2014 Additions Deletions 9/30/2015
$ 15,686,316
$ -
$ 793,467
$14,892,849
1,675,076
33,315,418
1,201,454
33,789,040
52,908
24,071
16,500
60,479
35,060
-
35,060
-
25,640,821
854,651
25,640,821
854,651
43,090,181
34,194,140
27,687,302
49,597,019
1,320,636
611,271
233,422
1,698,485
1,161,028
348,349
763,706
745,671
19,319
6,607
16,051
9,875
35,060
-
35,060
-
2,536,043
966,227
1,048,239
2,454,031
$ 40,554,138
$ 33,227,913
$ 26,639,063
$47,142,988
104
EXHIBIT H-7
CITY OF WICHITA FALLS, TEXAS
KICKAPOO AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Balance Balance
10/1/2014 Additions Deletions 9/30/2015
Capital Assets
Land and betterments
$ 8,769,905
$ - $ -
$ 8,769,905
Buildings and improvements
3,264,730
- -
3,264,730
Machinery and equipment
593,715
- -
593,715
Construction in progress
61,035
647 -
61,682
Total capital assets
12,689,385
647 -
12,690,032
Accumulated Depreciation:
Land and betterments
1,747,946
261,504 -
2,009,450
Buildings and improvements
767,534
107,432 -
874,966
Machinery and equipment
290,167
31,676 -
321,843
Total accumulated depreciation
2,805,647
400,612 -
3,206,259
Net capital assets
$ 9,883,738
$ (399,965) $ -
$ 9,483,773
105
EXHIBIT H-8
CITY OF WICHITA FALLS, TEXAS
TRANSIT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Capital Assets:
Land and betterments
Buildings and improvements
Machinery and equipment
Total capital assets
Accumulated Depreciation:
Land and betterments
Buildings and improvements
Machinery and equipment
Total accumulated depreciation
Net capital assets
Balance Balance
10/1/2014 Additions Deletions 9/30/2015
$ 457,254 $ - $ - $ 457,254
5,135,957 - - 5,135,957
357,867 - 1,833 356,034
5,951,078 - 1,833 5,949,245
15,823 10,549 - 26,372
304,101 100,244 - 404,345
218,555 32,307 1,833 249,029
538,479 143,100 1,833 679,746
$5,412,599 $ (143,100) $ - $ 5,269,499
w.
EXHIBIT H-9
CITY OF WICHITA FALLS, TEXAS
STORMWATER DRAINAGE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Capital Assets:
Drainage
Land betterments
Machinery and equipment
Construction in progress
Total capital assets
Accumulated Depreciation:
Drainage
Land betterments
Machinery and equipment
Total accumulated depreciation
Net capital assets
Balance Balance
10/1/2014 Additions Deletions 9/30/2015
$ 17,243,558
$ 191,540 $ -
$17,435,098
157,506
4,091 -
161,597
89,017
- -
89,017
1,865,764
4,154,673 -
6,020,437
19,355,845
4,350,304 -
23,706,149
1,085,723
231,191 -
1,316,914
7,798
4,918 -
12,716
75,670
2,116 -
77,786
1,169,191
238,225 -
1,407,416
$ 18,186,654
$ 4,112,079 $ -
$22,298,733
107
EXHIBIT H-10
CITY OF WICHITA FALLS, TEXAS
SANITATION FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Capital Assets:
Land and betterments
Buildings and improvements
Machinery and equipment
Total capital assets
Accumulated Depreciation:
Land and betterments
Buildings and improvements
Machinery and equipment
Total accumulated depreciation
Net capital assets
Balance
10/1 /2014
Additions Deletions
Balance
9/30/2015
$ 6,939,935
$ 96,779
$ - $ 7,036,714
2,872,039
738,972
86,661 3,524,350
396,243
189,719
1,145 584,817
10,208,217
1,025,470
87,806 11,145,881
814,005
137,815
-
951,820
1,342,415
77,355
57,186
1,362,584
184,276
36,518
573
220,221
2,340,696
251,688
57,759
2,534,625
$ 7,867,521
$ 773,782
$ 30,047
$ 8,611,256
108
EXHIBIT H-11
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Balance
10/1/2014 Additions Deletions
Capital AssetE:
Land and betterments
Buildings, systems and
improvements
Machinery and equipment
Furniture and fixtures
Motor vehicles
Construction in progress
Total capital assets
Accumulated Depreciatior:
Land and betterments
Buildings, systems and
improvements
Machinery and equipment
Furniture and fixtures
Motor vehicles
Total accumulated depreciation
Net capital assetE
$ 24,345,465
$ 17,504 $
313,394,450
12,378,158
5,657,194
292,447
1,164
-
1,235
-
9,899,586
1,791,691
353,299,094
14,479,800
Balance
9/30/2015
$ 24,362,969
9,000 325,763,608
- 5,949,641
1,164
- 1,235
9,315,294 2,375,983
9,324,294 358,454,600
10,553,615 243,632 - 10,797,247
99,387,370 6,962,704 9,000 106,341,074
4,277,368 225,158 - 4,502,526
1,164 - - 1,164
1,235 - - 1,235
114,220,752 7,431,494 9,000 121,643,246
$ 239,078,342 $ 7,048,306 $ 9,315,294 $ 236,811,354
109
EXHIBIT H-12
CITY OF WICHITA FALLS, TEXAS
WATERPARK FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Capital Assets:
Land and betterments
Buildings and improvements
Machinery and equipment
Construction in progress
Total capital assets
Accumulated Deoreciatior:
Buildings and improvements
Machinery and equipment
Total accumulated depreciation
Net capital asset:
Balance Balance
10/1/2014 Additions Deletions 9/30/2015
$ 389,894 $ - $ - $ 389,894
3,362,609 1,206,059 - 4,568,668
188,457 13,253 - 201,710
585,761 - 585,761 -
4,526,721 1,219,312 585,761 5,160,272
836,416 198,282 - 1,034,698
92,730 19,508 - 112,238
929,146 217,790 - 1,146,936
$ 3,597,575 $ 1,001,522 $ 585,761 $ 4,013,336
110
EXHIBIT H-13
CITY OF WICHITA FALLS, TEXAS
FLEET MAINTENANCE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Balance Balance
10/1/2014 Additions Deletions 9/30/2015
Capital Assets:
Land and betterments
$ 436,269
$ - $ -
$ 436,269
Buildings and improvements
4,163,802
- -
4,163,802
Machinery and equipment
1,466,208
50,204 -
1,516,412
Furniture and fixtures
2,950
- -
2,950
Motor vehicles
52,710,077
3,497,543 2,714,216
53,493,404
Construction in progress
-
49,050 -
49,050
Total capital assets
58,779,306
3,596,797 2,714,216
59,661,887
Accumulated Depreciation
Land and betterments - other
1,958
261 -
2,219
Buildings and improvements
2,338,485
88,235 -
2,426,720
Machinery and equipment
969,841
117,600 -
1,087,441
Furniture and fixtures
2,950
- -
2,950
Motor vehicles
37,370,119
3,618,120 2,619,899
38,368,340
Total accumulated depreciation
40,683,353
3,824,216 2,619,899
41,887,670
Net capital assets
$18,095,953
$ (227,419) $ 94,317
$ 17,774,217
111
EXHIBIT H-14
CITY OF WICHITA FALLS, TEXAS
DUPLICATING SERVICES FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Balance Balance
10/1 /2014 Additions Deletions 9/30/2015
Capital Assets:
Machinery and equipment
Accumulated Deoreciation:
Machinery and equipment
Net capital assets
$ 10,617 $ - $ - $ 10,617
7,756 1,174 - 8,930
$ 2,861 $ (1,174) $ - $ 1,687
►i
112
EXHIBIT H-15
CITY OF WICHITA FALLS, TEXAS
INFORMATION TECHNOLOGY FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Capital Assets:
Machinery and equipment
Construction in progress
Total capital assets
Accumulated Depreciation:
Machinery and equipment
Net capital assets
Balance
10/1/2014
Balance
Additions Deletions 9/30/2015
$ 1,054,958 $ 1,124,931 $ - $ 2,179,889
145,021 - 145,021 -
1,199,979 1,124,931 145,021 2,179,889
334,353 323,485 - 657,838
$ 865,626 $ 801,446 $ 145,021 $ 1,522,051
113
EXHIBIT H-16
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Capital Assets:
Land and betterments
Buildings and improvements
Total capital assets
Accumulated Depreciation:
Buildings and improvements
Net capital assets
Balance
10/1 /2014
Additions Deletions
Balance
9/30/2015
$ 1,432,069 $ - $ - $ 1,432,069
957,191 - - 957,191
2,389,260 - - 2,389,260
162,722 19,144 - 181,866
$ 2,226,538 $ (19,144) $ - $ 2,207,394
114
AIW51<1e, Cr Aetp OPyl,,TfA pries
Statistical Section (Unaudited)
This part of the City of Wichita Falls,
detailed information as a context fo
statements, note disclosures, and
government's overall financial health.
Contents
Texas' comprehensive annual financial report presents
r understanding what the information in the financial
required supplementary information says about the
Page
Financial Trends 115
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity 121
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax.
Debt Capacity 125
These schedules present information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's ability to
issue additional debt in the future.
Demographic and Economic Information 130
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities take
place.
Operating Information 132
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates to the
services the government provides and the activities it performs.
CITY OF WICHITA FALLS, TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS (UNAUDITED)
2005-2006
2006-2007
2007-2008
2008-2009
Governmental activities
Net investment in capital assets
$
132,958,014
$
133,737,880
$
139,868,969
$
138,550,295
Restricted
1,373,786
1,541,859
1,631,963
1,186,730
Unrestricted
20,689,055
27,487,733
21,189,932
14,880,792
Total governmental activities net position
$
155,020,855
$
162,767,472
$
162,690,864
$
154,617,817
Business -type activities
Net investment in capital assets
$
120,263,391
$
132,852,246
$
143,023,239
$
156,170,924
Restricted
16,234,804
12,681,053
12,945,497
12,958,909
Unrestricted
11,962,104
12, 513,454
12, 810, 854
10, 712, 005
Total business -type activities net position
$
148,460,299
$
158,046,753
$
168,779,590
$
179,841,838
Primary government
Net investment in capital assets
$
253,221,405
$
266,590,126
$
282,892,208
$
294,721,219
Restricted
17, 608, 590
14, 222,912
14, 577,460
14,145, 639
Unrestricted
32,651,159
40,001,187
34,000,786
25,592,797
Total primary government net position
$
303,481,154
$
320,814,225
$
331,470,454
$
334,459,655
If�y
EXHIBIT 1-1
Fiscal Year
2009-2010 2010-2011
2011-2012 2012-2013
2013-2014 2014-2015
$ 135,957,279
$ 138,876,124
$ 139,058,565
$ 138,319,208
$ 128,168,873
$ 143,014,752
5,006,079
6,048,238
6,931,511
6,248,074
5,290,076
3,715,125
9,263,524
7,189,782
7,453,791
6,661,101
5,789,973
(59,103,807)
$ 150,226,882
$ 152,114,144
$ 153,443,867
$ 151,228,383
$ 139,248,922
$ 87,626,070
$ 172,590,416 $ 172,634,321
12,942,163 11,734,924
10,734,533 23,006,940
$ 196,267,112 $ 207,376,185
$ 185,087,683 $ 198,540,484
11,374,316 11,881,663
28,157,150 25,390,068
$ 224,619,149 $ 235,812,215
$ 225,576,460 $ 238,249,137
11,885,698 11,800,667
22,571,945 13,941,283
$ 260,034,103 $ 263,991,087
$ 308,547,695
$ 311,510,445
$ 324,146,248
$ 336,859,692
$ 353,745,333
$ 381,263,889
17, 948, 242
17, 783,162
18, 305, 827
18,129, 737
17,175, 774
15, 515, 792
19,998,057
30,196,722
35,610,941
32,051,169
28,361,918
(45,162,524)
$ 346,493,994
$ 359,490,329
$ 378,063,016
$ 387,040,598
$ 399,283,025
$ 351,617,157
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (UNAUDITED)
Expenses
Governmental activities:
Administrative services
Police
Fire
Parks and recreation
Accounting/finance
Community development
Public works
Health
Traffic and transportation
Multi -Purpose Events Center
Interest and fees on long-term debt
Total governmental activities expenses
Business -type activities:
Golf
Municipal Airport
Kickapoo Airport
Transit
Sanitation
Water and Sewer
Stormwater drainage
Waterpark
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
Administrative services
Police
Fire
Parks and recreation
Accounting/finance
Community development
Public works
Health
Traffic and transportation
Multi -Purpose Events Center
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
2005-2006
2006-2007
2007-2008
2008-2009
$ 10,648,044
$ 10,363,134
$ 11,662,086
$ 12,026,311
17,733,480
18,587,210
20,527,967
21,008,696
10,825,964
11,295,623
12,492,842
13,028,146
4,210,463
4,478,311
5,107,579
5,757,363
1,843,810
1,893,389
2,231,952
2,473,024
6,293,156
6,573,917
6,921,352
7,584,142
7,706,209
8,616,348
8,314,596
8,282,184
4,409,374
4,736,162
4,873,643
4,995,764
2,527,270
2,590,309
2,679,026
2,499,869
2,166,331
4,291,434
4,335,968
4,027,612
721,762
1,308,748
1,405,383
1,620,854
69,085,863
74,734,585
80,552,394
83,303,965
901,454
-
-
-
281,117
276,368
310,980
289,195
574,929
966,961
1,245,021
1,354,624
1,280,540
1,373,283
1,793,369
1,616,322
8,059,991
8,638,374
9,199,341
8,509,153
26,380,183
26,764,879
28,126,920
30,165,844
328,833
355,697
407,035
477,415
37,807,047
38,375,562
41,082,666
42,412,553
$ 106,892,910 $ 113,110,147 $ 121,635,060 $ 125,716,518
$ 3,691,411
$ 3,327,519
$ 3,211,546
$ 4,267,891
402,583
700,216
600,020
470,020
5,195
5,434
2,612
4,369
473,121
443,827
517,707
513,682
1,195,203
1,138,671
1,124,534
891,803
48,871
7,286
100,000
165,363
807,002
803,115
864,874
888,890
292,234
212,911
154,941
164,350
-
2,215,411
2,141,584
1,789,269
11,109,618
12,298,595
11,468,654
10,891,021
2,667,389
3,218,003
3,097,319
1,631,109
20,692,627
24,370,988
23,283,791
21,677,767
116
EXHIBIT 1-2
(Page 1 of 2)
Fiscal Year
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
$ 10,043,369
$ 10,881,691
$ 11,934,804
$ 12,782,404
$ 13,873,741
$ 14,837,668
21,133,526
21,822,371
22,103,892
22,767,560
23,195,421
23,705,432
13,065,768
13,291,048
13,523,616
14,226,064
14,387,072
16,455,087
5,687,527
5,405,955
5,152,616
5,579,717
5,574,156
5,492,124
2,428,055
2,534,141
975,863
924,240
923,727
876,069
7,243,744
7,084,165
6,777,614
6,729,171
6,497,467
6,400,781
8,035,626
7,613,089
7,956,752
7,747,847
8,155,640
8,117,413
4,931,859
4,911,165
5,021,625
5,167,794
5,166,135
5,398,191
2,525,097
2,451,154
2,510,936
2,757,545
2,617,801
2,555,837
4,181,379
4,295,871
3,895,665
4,136,952
4,302,368
4,553,654
1,781,245
1,765,406
1,711,328
2,122,969
1,992,169
1,910,975
81,057,195
82,056,056
81,564,711
84,942,263
86,685,697
90,303,231
337,946
435,774
529,827
655,452
855,765
2,532,243
1,108,515
1,262,976
1,419,681
1,495,562
1,423,952
1,412,211
1,602,362
1,847,362
1,903,560
1,938,827
2,416,274
2,524,244
9,152,130
8,959,973
8,904,795
9,236,474
9,333,512
9,489,348
30,250,390
32,969,719
28,996,520
30,135,738
32,364,514
33,554,406
785,543
533,715
406,570
430,012
560,389
674,839
1,253,557
1,399,255
1,375,832
1,397,270
1,456,084
1,557,158
44,490,443
47,408,774
43,536,785
45,289,335
48,410,490
51,744,449
$ 125,547,638
$ 129,464,830
$ 125,101,496
$ 130,231,598
$ 135,096,187
$ 142,047,680
$ 4,414,667
$ 4,499,281
$ 4,390,463
$ 4,304,737
$ 4,220,786
$ 4,030,674
495,459
527,007
541,201
624,272
339,867
396,228
2,042
11,400
14,613
18,459
15,854
6,866
515,008
513,746
525,505
524,519
530,305
447,990
-
65,000
-
-
-
-
1,042,574
1,017,718
942,649
1,131,684
1,094,904
1,006,966
2,600
2,740
24,420
116,035
94,772
9,510
908,415
965,741
1,075,277
1,073,172
1,051,444
995,634
201,961
184,138
217,262
126,163
133,133
162,184
1,767,398
1,644,569
1,656,358
1,597,702
1,553,729
1,604,828
14,606,807
13,268,583
9,868,484
11,157,348
10,837,248
11,019,845
6,145,852
2,315,245
8,066,065
4,394,038
12,956,740
5,349,242
30,102,783
25,015,168
27,322,297
25,068,129
32,828,782
25,029,967
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET POSITION (CONT-D.)
LAST TEN FISCAL YEARS (UNAUDITED)
2005-2006
2006-2007
2007-2008
2008-2009
Business -type activities:
Charges for services:
Golf
828,055
-
-
-
Municipal Airport
448,384
441,471
430,561
544,332
Kickapoo Airport
347,761
789,522
1,025,300
745,444
Transit
214,771
206,109
224,856
229,483
Sanitation
9,517,673
9,917,386
10,939,617
12,025,478
Water and Sewer
33,436,585
30,031,969
33,042,845
33,888,553
Stormwater drainage
1,209,196
1,267,533
1,318,340
1,252,544
Waterpark
-
-
-
-
Operating grants and contributions
1,251,770
1,026,685
1,389,202
1,142,191
Capital grants and contributions
455,217
580,729
1,021,644
456,743
Total business -type activities program revenues
47,709,412
44,261,404
49,392,365
50,284,768
Total primary government program revenues
$ 68,402,039
$
68,632,392
$
72,676,156
$
71,962,535
Net (Expense)/Revenue
Governmental activities
$ (48,393,236)
$
(50,363,597)
$
(57,268,603)
$
(61,626,198)
Business -type activities
9,902,365
5,885,842
8,309,699
7,872,215
Total primary government net expense
$ (38,490,871)
$
(44,477,755)
$
(48,958,904)
$
(53,753,983)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Property tax
$ 23,522,746
$
24,975,158
$
26,160,116
$
27,869,849
Sales tax
19,272,204
20,068,529
21,353,896
20,451,906
Franchise fees
5,740,202
5,780,311
5,598,406
5,570,399
Hotel occupancy tax
1,333,747
1,417,397
1,560,353
1,506,423
Beverage tax
234,075
236,367
251,386
249,121
Bingo tax
178,666
166,223
168,864
109,739
Investment earnings
1,409,188
2,684,388
1,727,671
415,156
Gain (loss) on sale of capital assets
-
-
(397,404)
-
Miscellaneous
172,500
712,358
242,811
134,983
Transfers
2,482,958
1,972,819
525,898
(2,439,625)
Total governmental activities
54,346,286
58,013,550
57,191,997
53,867,951
Business -type activities
Investment earnings
5,094,418
5,575,703
2,949,036
602,872
Miscellaneous
-
199,174
-
147,536
Transfers
(2,482,958)
(1,972,819)
(525,898)
2,439,625
Total business -type activities
2,611,460
3,802,058
2,423,138
3,190,033
Total primary government
$ 56,957,746
$ 61,815,608
$ 59,615,135
$ 57,057,984
Change in Net Position
Governmental activities
$ 5,953,050
$ 7,649,953
$ (76,606)
$ (7,758,247)
Business -type activities
12,513,825
9,687,900
10,732,837
11,062,248
Total primary government
$ 18,466,875
$ 17,337,853
$ 10,656,231
$ 3,304,001
117
Fiscal Year
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
EXHIBIT 1-2
(Page 2 of 2)
2014-2015
624,298
681,639
716,608
769,557
775,829
864,505
798,034
988,457
1,153,038
1,255,153
1,239,973
1,090,276
274,577
367,374
405,852
410,737
476,716
541,389
11,826,882
11,911,026
12,807,160
12,606,675
13,196,489
12,790,072
33,264,688
40,679,751
36,771,008
32,798,786
31,272,972
38,855,845
1,272,430
2,485,346
2,552,650
2,503,255
2,601,158
2,763,120
1,283,919
1,633,155
1,475,842
1,398,164
1,292,639
1,492,787
2,312,062
1,323,581
2,371,658
3,787,014
1,830,334
1,826,749
108,471
192,620
181,759
1,339,265
1,017,827
1,558,589
51,765,361
60,262,949
58,435,575
56,868,606
53,703,937
61,783,332
$ 81,868,144
$ 85,278,117
$ 85,757,872
$ 81,936,735
$ 86,532,719
$ 86,813,299
$ (50,954,412)
$ (57,040,888)
$ (54,242,414)
$ (59,874,134)
$ (53,856,915)
$ (65,273,264)
7,274,918
12,854,175
14,898,790
11,579,271
5,293,447
10,038,883
$ (43,679,494)
$ (44,186,713)
$ (39,343,624)
$ (48,294,863)
$ (48,563,468)
$ (55,234,381)
$ 27,570,092
$ 28,556,762
$ 28,625,696
$ 29,107,168
$ 29,784,202
$ 31,072,640
20,033,820
21,082,993
21,406,823
22,062,365
22,397,536
22,403,406
5,593,573
5,593,781
5,574,882
5,423,680
5,558,600
5,414,414
1,553,674
1,572,105
1,677,100
1,578,764
1,684,329
1,775,372
246,541
248,350
207,735
230,728
281,598
291,091
77,883
70,747
61,696
40,122
36,688
32,764
129,653
49,239
54,579
53,244
33,309
20,732
160,949
-
326,861
636,417
879,538
529,526
(8,802,705)
1,754,171
(2,363,233)
(1,473,837)
(18,778,342)
(2,072,770)
46,563,480
58,928,148
55,572,139
57,658,651
41,877,458
59,467,175
194,428
153,223
8,802,705
9,150,356
$ 55,713,836
50,858
(41,792)
(1,754,171)
(1,745,105)
$ 57,183,043
39,865
(58,924)
2,363,233
2,344,174
$ 57,916,313
$ (4,390,932) $ 1,887,260 $ 1,329,725
16,425,274 11,109,070 17,242,964
$ 12,034,342 $ 12,996,330 $ 18,572,689
27,902
149,173
1,473,837
1,650,912
$ 59,309,563
$ (2,215,483)
13,230,183
$ 11,014,700
11,680
138,419
18,778,342
18,928,441
$ 60,805,899
$ (11,979,457)
24,221,888
$ 12,242,431
14,884
87,079
2,072,770
2,174,733
$ 61,641,908
$ (5,806,089)
12,213,616
$ 6,407,527
CITY OF WICHITA FALLS, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
General Fund
Reserved
Unreserved
Nonspendable
Assigned
Unassigned
Total general fund
All other Governmental Funds
Reserved
Unreserved, reported in:
Special revenue funds
Capital projects funds
Nonspendable
Restricted
Committed
Unassigned
Total all other governmental funds
2005-2006
$ 2,393,129
11,503,795
$ 13,896,924
2006-2007
$ 3,161,776
15,569,840
$ 18,731,616
2007-2008
$ 2,686,432
14,500,836
$ 17,187,268
2008-2009
$ 1,499,613
13, 042, 044
$ 14,541,657
$ 3,179,513
$ 2,371,514
$ 2,888,944
$ 6,254,620
4,746,615
7,089,584
6,180,559
4,808,127
4,857,539
23,458,510
15,033,333
10,963,970
$ 12,783,667
$ 32,919,608
$ 24,102,836
$ 22,026,717
Note : GASB 54 was implemented in 2010-11, which changed the terminology for fund balances. Prior years were not reclassified.
118
EXHIBIT 1-3
Fiscal Year
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
$ 1,392,329
$
-
$
-
$
-
$
_
$
_
14,294,519
-
-
-
_
_
-
478,617
352,835
384,574
180,992
210,069
-
579,022
1,010,976
958,924
1,949,792
1,102,026
-
16,002,361
16,570,675
16,226,597
14,886,199
13,682,061
$ 15,686,848
$
17,060,000
$
17,934,486
$
17,570,095
$
17,016,983
$
14,994,156
$ 11,753,749
$
-
$
-
$
-
$
_
$
_
1,713,168
1,850,806
-
-
-
_
_
-
81,376
89,668
84,940
120,573
95,283
-
10,927,373
10,744,065
26,934,100
13,834,375
5,977,567
-
1,762,248
2,305,013
2,896,812
2,831,488
2,734,119
-
(24,418)
(269,288)
(269,288)
(460,883)
(550,863)
$ 15,317,723
$
12,746,579
$
12,869,458
$
29,646,564
$
16,325,553
$
8,256,106
CITY OF WICHITA FALLS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
2005-2006 2006-2007 2007-2008 2008-2009
Revenues
Taxes
$ 50,228,509
$ 52,637,318
$ 55,155,574
$ 55,752,982
Charges for services
2,597,044
3,202,699
3,270,930
3,689,717
Licenses and permits
2,206,023
2,215,813
2,116,140
1,887,434
Fines and forfeitures
2,481,816
2,127,062
1,964,391
1,970,612
Intergovernmental revenue
9,682,237
11,136,433
8,428,310
9,287,371
Contributions
4,094,770
4,366,961
6,137,663
3,234,759
Miscellaneous revenue
2,816,865
6,664,315
5,369,689
3,804,438
Total revenues
74,107,264
82,350,601
82,442,697
79,627,313
Expenditures
Administrative services
10,103,642
9,965,494
10,873,576
11,315,351
Police
17,228,066
18,068,168
19,524,824
20,182,150
Fire
10,739,651
11,238,422
12,206,774
12,833,183
Parks and recreation
4,110,013
4,373,460
4,841,597
5,457,410
Accounting/finance
1,765,350
1,811,690
2,087,572
2,327,608
Community development
6,355,136
6,652,162
6,925,581
7,433,617
Public works
5,128,384
6,038,790
5,606,784
5,452,172
Health
4,407,758
4,728,414
4,775,418
4,950,213
Traffic and transportation
2,309,854
2,355,249
2,459,070
2,292,890
Multi -Purpose Events Center
1,355,846
3,498,189
3,506,091
3,208,713
Capital outlay
7,244,115
7,093,636
15,219,394
12,088,928
Debt service - principal
3,190,000
2,510,000
2,395,000
2,065,000
Debt service - interest
731,921
1,271,106
1,456,540
1,364,831
Debt service - bond issuance costs
-
-
-
-
Total expenditures
74,669,736
79,604,780
91,878,221
90,972,066
Excess of revenues over (under)
expenditures
(562,472)
2,745,821
(9,435,524)
(11,344,753)
Other Financing Sources (Uses)
Proceeds from bonds
-
21,702,048
-
10,840,779
Capital lease proceeds
-
-
-
-
Payment to refunded bonds escrow agent
-
-
-
-
Transfers in
3,282,459
5,922,091
7,268,938
5,530,309
Transfer out
(2,227,586)
(5,401,565)
(8,194,534)
(9,433,265)
Total other financing sources (uses)
1,054,873
22,222,574
(925,596)
6,937,823
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
$ 492,401 $ 24,968,395 $(10,361,120) $ (4,406,930)
5.82%
5.21 % 5.02% 4.35%
119
EXHIBIT 1-4
Fiscal Year
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
$ 55,006,901 $
57,122,006
$ 57,607,312
$ 58,613,615
$ 59,739,545
$ 61,007,519
3,715,832
3,886,160
3,710,371
3,422,621
3,331,183
3,362,172
1,990,328
2,064,972
2,002,559
2,234,081
2,048,293
1,941,205
2,214,884
2,209,026
2,409,792
2,435,625
2,402,794
2,262,781
14,783,860
11,041,679
14,488,236
11,722,524
18,081,798
12,401,075
5,711,904
4,542,149
3,446,313
3,828,862
5,712,190
4,011,809
3,597,927
3,216,734
3,261,049
3,463,425
3,642,155
3,118,424
87,021,636
84,082,726
86,925,632
85,720,753
94,957,958
88,104,985
9,694,632
10,235,720
12,158,781
12,677,867
13,347,029
14,413,640
20,182,168
20,235,012
20,545,965
20,884,744
21,539,820
21,997,801
12,671,757
12,897,810
13,277,876
13,807,699
14,085,219
14,719,074
5,359,692
4,966,060
4,833,743
5,157,417
5,197,591
5,065,222
2,279,241
2,367,814
845,076
793,960
831,313
747,341
7,315,631
7,124,851
6,829,018
6,760,826
6,559,064
6,440,963
5,355,585
5,170,624
5,777,249
5,325,013
5,613,107
5,449,860
4,896,841
4,796,934
4,894,351
5,004,381
5,057,946
5,217,970
2,245,038
2,233,311
2,194,962
2,468,051
2,274,249
2,395,837
3,358,470
3,436,052
3,062,507
3,365,932
3,536,661
3,747,189
8,758,421
7,600,491
8,537,049
7,867,468
5,230,269
5,368,119
2,240,000
2,115,000
2,270,000
2,515,000
3,000,000
3,350,000
1,781,176
1,934,935
1,604,392
1,618,299
2,342,331
1,998,760
-
-
137,461
310,777
-
-
86,138,652
85,114,614
86,968,430
88,557,434
88,614,599
90,911,776
882,984
(1,031,888)
(42,798)
(2,836,681)
6,343,359
(2,806,791)
3,930,000
-
7,836,338
23,869,261
-
-
-
-
1,452,760
2,666,243
-
47,848
-
-
(4,484,698)
(3,831,570)
-
-
5,676,896
6,239,483
6,411,855
7,181,518
16,643,513
17,594,910
(16,053,685)
(6,405,589)
(10,176,091)
(10,636,058)
(36,860,991)
(23,335,238)
(6,446,789)
(166,106)
1,040,164
19,249,394
(20,217,478)
(5,692,480)
$ (5,563,805) $
(1,197,994)
$ 997,366
$ 16,412,713
$ (13,874,119)
$ (8,499,271)
5.20%
5.22%
4.94%
5.12%
6.41 %
6.25%
EXHIBIT 1-5
CITY OF WICHITA FALLS, TEXAS
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
Fiscal
Hotel
Year
Property
Sales
Franchise
Occupancy
Beverage
Bingo
Total
2005-2006
$ 23,469,615
$ 19,272,204
$ 5,740,202
$ 1,333,747
$ 234,075
$ 178,666
$ 50,228,509
2006-2007
24,968,481
20,068,529
5,780,311
1,417,397
236,367
166,233
52,637,318
2007-2008
26,217,499
21,353,896
5,598,406
1,565,523
251,386
168,864
55,155,574
2008-2009
27,865,394
20,451,906
5,570,399
1,506,423
249,121
109,739
55,752,982
2009-2010
27,501,412
20,033,820
5,593,573
1,513,484
246,541
77,883
54,966,713
2010-2011
28,554,029
21,082,994
5,593,781
1,572,105
248,350
70,747
57,122,006
2011-2012
28,679,076
21,406,823
5,574,882
1,677,100
207,735
61,696
57,607,312
2012-2013
29,277,956
22,062,365
5,423,680
1,578,764
230,728
40,122
58,613,615
2013-2014
29,780,795
22,397,536
5,558,599
1,684,329
281,598
36,688
59,739,545
2014-2015
31,090,472
22,403,406
5,414,414
1,775,372
291,091
32,764
61,007,519
120
EXHIBIT 1-6
CITY OF WICHITA FALLS, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY -
LAST TEN FISCAL YEARS (UNAUDITED)
Personal
Ratio of Total
Real Property
Property
Total
Total
Assessed to
Fiscal
Assessed
Assessed
Assessed
Direct
Estimated
Total Estimated
Year
Value
Value
Value
Tax Rate
Actual Value
Actual Value
2005-2006
$2,992,717,987
$ 726,512,178
$3,719,230,165
$0.59246
$3,719,230,165
100.00%
2006-2007
3,208,236,037
744,353,082
3,952,589,119
0.59246
3,952,589,119
100.00%
2007-2008
3,389,094,572
802,449,151
4,191,543,723
0.59246
4,191,543,723
100.00%
2008-2009
3,553,825,553
877,030,381
4,430,855,934
0.59526
4,430,855,934
100.00%
2009-2010
3,622,501,148
803,697,677
4,426,198,825
0.60526
4,426,198,825
100.00%
2010-2011
3,693,399,778
728,642,824
4,422,042,602
0.62526
4,422,042,602
100.00%
2011-2012
3,714,449,662
716,365,316
4,430,814,978
0.62526
4,430,814,978
100.00%
2012-2013
3,749,608,055
715,113,536
4,464,721,591
0.63526
4,464,721,591
100.00%
2013-2014
3,777,010,620
771,002,233
4,548,012,853
0.63526
4,548,012,853
100.00%
2014-2015
3,859,560,337
765,251,406
4,624,811,743
0.65526
4,624,811,743
100.00%
121
EXHIBIT 1-7
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES -
LAST TEN FISCAL YEARS (UNAUDITED)
Tax Rates Per $100 Valuation
Fiscal
City of Wichita Falls
Wichita County
Burkburnett ISD (1)
Year
M&O
AS Total
M&O
I&S
Total
M&O
AS Total
2005-2006
$ 0.55
$ 0.04 $
0.59
$ 0.44
$ 0.02
$ 0.46
$ 1.50
$ 0.13 $
1.63
2006-2007
0.57
0.02
0.59
0.43
0.02
0.45
1.37
0.13
1.50
2007-2008
0.57
0.02
0.59
0.43
0.01
0.44
1.17
0.11
1.28
2008-2009
0.58
0.02
0.60
0.43
-
0.43
1.17
0.14
1.31
2009-2010
0.59
0.02
0.61
0.48
-
0.48
1.17
0.14
1.31
2010-2011
0.61
0.01
0.62
0.52
-
0.52
1.17
0.14
1.31
2011-2012
0.61
0.01
0.62
0.53
-
0.53
1.17
0.14
1.31
2012-2013
0.62
0.01
0.63
0.52
-
0.52
1.17
0.13
1.30
2013-2014
0.62
0.01
0.63
0.51
-
0.51
1.17
0.12
1.29
2014-2015
0.64
0.02
0.66
0.51
-
0.51
1.17
0.14
1.31
City
View ISD (2)
Iowa
Park CISD (3)
Wichita Falls ISD (4)
Grand
M&O
AS Total
M&O
I&S
Total
M&O
AS Total
Total
2005-2006
$ 1.50
$ 0.23 $
1.73
$ 1.36
$ 0.09
$ 1.45
$ 1.33
$ 0.06 $
1.39
$ 7.25
2006-2007
1.37
0.23
1.60
1.04
0.08
1.12
1.04
0.15
1.19
6.45
2007-2008
1.04
0.22
1.26
1.04
0.08
1.12
1.04
0.16
1.20
5.89
2008-2009
1.17
0.23
1.40
1.04
0.11
1.15
1.04
0.16
1.20
6.09
2009-2010
1.17
0.25
1.42
1.04
0.10
1.14
1.04
0.16
1.20
6.16
2010-2011
1.17
0.25
1.42
1.04
0.09
1.13
1.04
0.17
1.21
6.21
2011-2012
1.17
0.25
1.42
1.04
0.24
1.28
1.04
0.17
1.21
6.37
2012-2013
1.17
0.25
1.42
1.04
0.24
1.28
1.04
0.17
1.21
6.36
2013-2014
1.17
0.25
1.42
1.04
0.24
1.28
1.04
0.17
1.21
6.34
2014-2015
1.17
0.25
1.42
1.04
0.23
1.27
1.04
0.10
1.14
6.31
Notes:
(1) Burkburnett Independent School District - 25% in Wichita Falls city limits
(2) City View Independent School District - 90% in Wichita Falls city limits
(3) Iowa Park Consolidated Independent School District - 2% in Wichita Falls city limits
(4) Wichita Falls Independent School District - 99% in Wichita Falls city limits
122
EXHIBIT 1-8
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
SEPTEMBER 30, 2015
Taxable
Assessed
Taxpayer
Value
GGP - Sikes Senter LLC
$ 58,000,000
Oncor Electric Delivery Co
39,946,434
Wal-Mart Stores Texas LP
23,673,540
Wal-Mart Stores East Inc
20,645,100
Quail Creek Crossing Ltd
18,581,000
North American Pipe Corp
17,654,203
Southwestern Bell
14,928,053
Atmos Energy / Mid -Tex Division
14,899,486
Kell West Regional Hospital
13,951,556
Alon USA LP
12,651,296
Clinics of North Texas
-
Lowe's Home Improvement Center
-
Cingular Wireless LLC
-
HD Development Properties
-
Time Warner Cable
-
Totals
$ 234,930,668
2014-2015
2005-2006
Percentage
Percentage
of Total
Taxable
of Total
Assessed
Assessed
Assessed
Rank
Valuation
Value
Rank
Valuation
1
1.25%
$ 53,866,528
1
1.16%
2
0.86%
39,409,836
2
0.85%
3
0.51%
34,786,987
3
0.75%
4
0.45%
-
N/A
0.00%
5
0.40%
-
N/A
0.00%
6
0.38%
-
N/A
0.00%
7
0.32%
30,782,822
4
0.66%
8
0.32%
-
N/A
0.00%
9
0.30%
11,895,939
8
0.26%
10
0.27%
-
N/A
0.00%
N/A
0.00%
15,975,977
5
0.34%
N/A
0.00%
13,185,428
6
0.28%
N/A
0.00%
12,955,444
7
0.28%
N/A
0.00%
11,718,281
9
0.25%
N/A
0.00%
11,011,985
10
0.24%
5.08%
$ 235,589,227
5.07%
123
Uic. 4 i tl -Fa t(5
B/u15,kie, 40AM O�yvrtun�7�ies
EXHIBIT 1-9
CITY OF WICHITA FALLS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS -
LAST TEN FISCAL YEARS (UNAUDITED)
Collected within the
Taxes Levied
Fiscal Year of the Levy
Collections
Total Collections to Date
Fiscal
for the
Percentage
in Subsequent
Percentage
Year
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
2005-2006
$ 22,034,951
$ 21,612,888
98.08%
$ 325,484
$ 21,938,372
99.56%
2006-2007
23,421,270
23,043,185
98.39%
298,013
23,341,198
99.66%
2007-2008
24,833,219
24,408,683
98.29%
304,751
24,713,434
99.52%
2008-2009
26,375,113
25,905,854
98.22%
366,363
26,272,217
99.61%
2009-2010
26,752,242
26,166,043
97.81%
386,521
26,552,564
99.25%
2010-2011
27,649,264
27,179,642
98.30%
306,238
27,485,880
99.41%
2011-2012
27,704,114
27,306,706
98.57%
282,346
27,589,052
99.58%
2012-2013
28,362,591
27,906,520
98.39%
245,519
28,152,039
99.26%
2013-2014
28,876,552
28,375,563
98.27%
191,870
28,567,433
98.93%
2014-2015
30,270,748
29,809,308
98.48%
-
29,809,308
98.48%
124
CITY OF WICHITA FALLS, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE -
LAST TEN FISCAL YEARS (UNAUDITED)
Governmental Activities
General
Combination
Capital
Utility
Fiscal
Obligation
Tax and
Note
Lease
System
Year
Bonds
Revenue Bonds
Payable
Payable
Revenue Bonds
2005-2006
$ 8,270,000
$ 5,360,000
$ 120,443
$ -
$ 124,824,242
2006-2007
7,390,000
25,396,016
61,093
-
123,869,328
2007-2008
6,480,000
23,867,228
-
-
121,887,613
2008-2009
5,535,000
33,524,726
-
-
119,841,741
2009-2010
4,790,000
35,918,687
-
-
107,501,744
2010-2011
4,450,000
34,104,162
-
-
105,277,778
2011-2012
4,116,110
35,503,123
-
1,452,760
102,566,093
2012-2013
5,491,678
51,570,623
-
3,833,640
99,211,869
2013-2014
4,679,866
49,302,503
-
3,510,950
95,723,505
2014-2015
3,850,706
46,710,294
-
3,230,595
92,086,092
125
EXHIBIT 1-10
Business -type Activities
Combination
General
Capital
Total
Percentage
Tax and
Obligation
Note
Leases
Primary
of Personal
Per
Revenue Bonds
Bonds
Payable
Payable
Government
Income
Capita
$ 30,961,933
$ -
$ 728,039
$ -
$ 170,264,657
3.81 %
$ 1,581.87
27,864,844
-
699,748
-
185,281,029
4.01%
1,721.38
24,479,232
-
670,537
-
177,384,610
3.71 %
1,644.78
21,004,768
-
640,377
722,464
181,269,076
7.34%
1,711.13
27,744,748
-
609,234
549,621
177,114,034
8.03%
1,694.01
23,969,757
-
577,079
371,696
168,750,472
6.10%
1,614.02
19,798,342
-
543,877
1,704,341
165,684,646
7.11%
1,594.18
27,887,899
1,930,000
509,596
1,261,663
191,696,968
7.67%
1,833.51
24,284,987
1,930,000
474,200
999,606
180,905,617
7.74%
1,724.59
54,125,933
1,930,000
437,652
722,737
203,094,009
8.47%
1,932.13
EXHIBIT 1-11
CITY OF WICHITA FALLS, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING -
LAST TEN FISCAL YEARS (UNAUDITED)
Governmental Activities
Percentage of
General
Combination
Actual Taxable
Fiscal
Obligation
Tax and
Value of
Per
Year
Bonds
Revenue Bonds
Total
Property
Capita
2005-2006
$ 8,270,000
$ 5,360,000 $
13,630,000
0.37%
$ 126.63
2006-2007
7,390,000
25,396,016
32,786,016
0.83%
304.60
2007-2008
6,480,000
23,867,228
30,347,228
0.72%
281.39
2008-2009
5,535,000
33,524,726
39,059,726
0.88%
368.71
2009-2010
4,790,000
35,918,687
40,708,687
0.92%
389.36
2010-2011
4,450,000
34,104,162
38,554,162
0.87%
368.75
2011-2012
4,116,110
35,503,123
39,619,233
0.89%
381.21
2012-2013
5,491,678
51,570,623
57,062,301
1.28%
545.78
2013-2014
4,679,866
49,302,503
53,982,369
1.19%
514.62
2014-2015
3,850,706
46,710,294
50,561,000
1.09%
481.01
126
EXHIBIT 1-12
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT (UNAUDITED)
SEPTEMBER 30, 2015
Gross Percentage
Amount
Governmental Applicable
Applicable
Activities to City of
to City of
Debt (1) Wichita Falls (2)
Wichita Falls
Direct:
City of Wichita Falls
$ 53,791,595
100%
$ 53,791,595
Overlapping:
Wichita County
131,546
100%
131,546
Burkburnett Independent School District
7,583,079
25%
1,895,770
City View Independent School District
10,265,155
90%
9,238,640
Iowa Park Consolidated Independent
School District
15,689,676
2%
313,794
Wichita Falls Independent School District
108,035,977
99%
106,955,617
Total overlapping
141,705,433
118,535,366
Total direct and overlapping bonded debt
$ 195,497,028
$ 172,326,961
Sources:
(1) Listed taxing jurisdictions
(2) City of Wichita Falls Planning Department calculated based on percentage of taxing entity within the
City of Wichita Falls city limits.
127
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN -
LAST TEN FISCAL YEARS (UNAUDITED)
Total assessed property value per 2014 tax roll
Maximum tax rate'
Current tax rate for 2014 tax year
Maximum tax rate in excess of 2014 tax rate
Total legal debt margin
2005-2006
Assessed value $ 3,719,230,165
Maximum tax rate $ 2.25/$100
Current tax rate .59246/$100
Maximum tax rate in excess of current rate 1.65754/$100
Total legal debt margin $ 61,647,728
$ 2.25/$100
.65526/$100
$ 4,624,811,743
1.61474/$100
$ 74,678,685
2006-2007
2007-2008
2008-2009
$ 3,952,589,119
$ 4,191,543,723
$ 4,430,855,934
$ 2.25/$100
$ 2.25/$100
$ 2.25/$100
.59246/$100
.59246/$100
.59526/$100
1.65754/$100
1.65754/$100
1.65474/$100
$ 65,515,746
$ 69,476,514
$ 73,319,145
There is no debt limit established by law. The limit is, therefore, governed by the City's ability to
levy and collect taxes to service the outstanding indebtedness. The City's maximum legal tax rate
established under its Charter is $2.25 per $100 assessed valuation. The 2013 tax rate is $.63526
per $100 assessed valuation.
Maximum tax levy established by City Charter
128
EXHIBIT 1-13
Fiscal Year
2009-2010
2010-2011
2011-2012
$ 4,426,198,825
S 4,422,042,602
$ 4,430,814,978
S 2.25/$100
S 2.25/$100
$ 2.25/$100
.60526/$100
.62526/$100
.62526/$100
1.64474/$100
1.62474/$100
1.62474/$100
$ 72,799,463
S 71,846,695
$ 71,989,223
2012-2013
$ 4,464,721,591
$ 2.25/$100
.63526/$100
1.61474/$100
$ 72,093,645
2013-2014
$ 4,548,012,853
$ 2.25/$100
.63526/$100
1.61474/$100
$ 73,438,583
2014-2015
$ 4,624,811,743
S 2.25/$100
65526/$100
1.61474/$100
$ 74,678,685
CITY OF WICHITA FALLS, TEXAS
PLEDGED REVENUE COVERAGE - WATER AND SEWER REVENUE BONDS -
LAST TEN FISCAL YEARS (UNAUDITED)
Net Revenue
Fiscal
Gross
Operating
Available For
Year
Revenues(l)
Expenses (2)
Debt Service
2005-2006
$ 32,976,347
$ 16,986,210
$ 15,990,137
2006-2007
29,598,709
17,273,862
12,324,847
2007-2008
33,514,257
17,896,263
15,617,994
2008-2009
33,662,220
19,546,745
14,115,475
2009-2010
33,264,688
19,924,687
13,340,001
2010-2011
40,084,478
22,422,525
17,661,953
2011-2012
36,405,921
19,501,942
16,903,979
2012-2013
32,200,867
19,160,351
13,040,516
2013-2014
30,839,265
20,981,384
9,857,881
2014-2015
38,456,107
20,477,673
17,978,434
Notes:
(1) Includes all operating revenues with the exception of water sales to West Texas Utilities
(see Exhibit H-3).
(2) Includes all operating expenses of the Water and Sewer Fund with the exception of
depreciation and amortization (see Exhibit H-3).
(3) Excludes bond premium amortization.
129
EXHIBIT 1-14
Debt Service Requirement
Principal (3)
Interest
Total
Coverage
$4,505,000
$ 7,600,831
$12,105,831
1.32
4,985,000
6,608,627
11,593,627
1.06
5,165,000
6,424,544
11,589,544
1.35
5,410,000
6,185,216
11,595,216
1.22
5,615,000
5,879,680
11,494,680
1.16
5,805,000
5,646,250
11,451,250
1.54
6,130,000
5,364,300
11,494,300
1.47
3,325,000
4,518,925
7,843,925
1.66
3,460,000
4,385,925
7,845,925
1.26
3,610,000
4,238,875
7,848,875
2.29
EXHIBIT 1-15
CITY OF WICHITA FALLS, TEXAS
DEMOGRAPHIC STATISTICS -
LAST TEN FISCAL YEARS (UNAUDITED)
Per
Capita
Fiscal
Estimated
Personal
Personal
Median
Education
School
Unemployment
Year
Population (1)
Income
Income (2)
Age
Level (3)
Enrollment (3)
Rate (4)
2005-2006
107,635
$ 4,464,915,070
$ 41,482
35.4
13.1
13,743
4.2%
2006-2007
107,635
4,616,722,182
42,892
34.9
13.1
14,707
4.1%
2007-2008
107,847
4,783,093,091
44,351
34.9
13.3
14,533
5.5%
2008-2009
105,935
2,470,050,408
23,317
33.2
13.5
15,473
8.2%
2009-2010
104,553
2,205,022,770
21,090
32.3
13.3
16,217
7.3%
2010-2011
104,553
2,766,263,274
26,458
32.8
13.2
15,539
6.6%
2011-2012
103,931
2,330,756,606
22,426
32.4
13.2
14,569
6.9%
2012-2013
104,552
2,499,106,456
23,903
32.5
13.1
14,639
6.2%
2013-2014
104,898
2,336,602,950
22,275
32.5
13.2
15,181
4.9%
2014-2015
105,114
2,397,229,884
22,806
32.5
13.2
15,155
4.4%
Sources:
(1) City of Wichita Falls Planning Department for all years, except for 2009-10 and 2010-11 from US Bureau of Census.
(2) C.A.C.I. Marketing Services
(3) Wichita Falls I.S.D. - Educational level is grade equivalent of graduating senior
(4) Texas Workforce Commission
130
EXHIBIT 1-16
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO (UNAUDITED)
SEPTEMBER 30, 2015
2014-2015
2005-2006
Percentage
Percentage
of Total
of Total
City
City
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Sheppard Air Force Base
10,015
1
14.01%
11,670
1
15.94%
North Texas State Hospital
2,071
2
2.90%
2,016
3
2.75%
Wichita Falls ISD
1,925
3
2.69%
2,023
2
2.76%
United Regional Health Care System
1,739
4
2.43%
1,871
4
2.56%
Midwestern State University
1,297
5
1.81 %
-
N/A
-
City of Wichita Falls
1,175
6
1.64%
1,096
6
1.50%
Howmet Corporation
1,090
7
1.52%
988
7
1.35%
Wal-Mart - 3 locations
1,026
8
1.43%
-
N/A
-
Cryovac Division - Sealed Air Corp.
896
9
1.25%
750
10
1.02%
James B. Allred Prison Unit
869
10
1.22%
1,120
5
1.53%
Vetrotex America
-
N/A
-
888
8
1.21 %
Stanley Works, Mechanics Division
-
N/A
-
787
9
1.08%
Totals 22,103 30.90% 23,209 31.70%
Sources:
2005-2006 data is from Texas Workforce Commission. 2014-2015 data is from Wichita Falls Chamber of Commerce.
131
CITY OF WICHITA FALLS, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
2005-2006
2006-2007
2007-2008
2008-2009
Administrative services
99.9
103.0
105.1
104.6
Police
286.5
294.0
293.0
294.0
Fire
156.0
162.0
164.0
164.0
Parks and recreation
75.8
75.8
82.9
82.9
Accounting/finance
22.4
24.5
25.5
26.0
Community development
38.7
40.7
40.5
41.0
Public works
80.2
80.2
80.2
80.8
Health
77.1
74.9
72.5
69.0
Traffic and transportation
51.5
52.6
52.6
50.6
Multi -Purpose Events Center
-
22.4
22.8
23.0
Water and sewer
177.5
179.5
179.5
179.9
Sanitation
81.0
81.0
82.0
82.5
Golf
19.2
19.4
-
-
Municipal Airport
1.0
1.6
1.6
1.6
Kickapoo Airport
5.0
4.4
4.4
4.4
Transit
19.3
19.2
19.6
22.1
Stormwater Drainage
1.3
1.3
1.3
1.3
132
EXHIBIT 1-17
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
102.0
97.0
94.6
94.3
94.1
95.1
295.0
296.5
298.5
299.5
300.0
299.0
164.0
162.0
162.0
162.5
162.5
162.5
84.8
88.7
89.7
92.9
92.1
92.6
26.0
25.0
27.0
27.0
27.0
26.4
40.1
40.0
40.0
42.0
42.0
41.0
80.8
79.2
78.5
78.5
78.5
78.5
68.4
71.5
72.0
81.9
78.7
77.5
51.7
52.6
53.6
53.6
56.1
56.1
23.0
22.8
22.8
22.8
22.8
22.8
180.1
179.6
180.2
182.1
189.1
187.7
82.5
82.5
82.5
81.5
83.5
83.5
1.6
1.6
1.6
1.6
1.6
3.0
5.4
5.4
5.6
6.4
3.4
3.4
21.6
21.6
22.2
24.7
26.2
26.7
1.3
1.3
1.3
1.8
1.8
1.8
CITY OF WICHITA FALLS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
General government
Building permits issued
Building inspections conducted
Police
Physical arrests
Parking violations
Traffic violations
Fire
Emergency responses
Fires extinguished
Inspections
Refuse collection
Refuse collected (tons)
Recyclables collected
Library
Volumes in collection
Total volumes borrowed
Water
New connections
Water main breaks
Average daily consumption
(thousands of gallons)
Wastewater
Average daily sewage treatment
(thousands of gallons)
Transit
Total route miles
Passengers
2005-2006
2006-2007
2007-2008
2008-2009
7,553
7,813
7,420
6,769
12,591
12,048
11,425
9,565
8,571
7,279
6,752
7,186
327
383
197
-
24,126
17,904
16,236
23,253
8,234
8,634
8,684
8,687
792
554
1,340
718
850
900
2,647
3,250
78,165
182,855
168,681
161,243
2,018
19,034
21,624
22,010
172,391
179,728
184,231
185,009
293,884
302,565
352,408
368,685
325
310
212
146
881
741
898
872
23,680
19,936
22,511
19,200
11,097
13,930
11,410
7,670
435,446
476,758
488,842
530,771
229,601
294,670
324,666
327,463
133
EXHIBIT 1-18
Fiscal Year
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
6,802
8,130
7,303
9,979
8,542
7,399
11,038
13,321
11,834
12,823
13,472
12,852
6,235
5,845
6,182
5,978
6,042
5,036
109
125
529
65
43
90
25,558
23,780
21,660
21,651
22,538
18,792
8,693
9,139
9,027
8,979
8,708
9,392
654
703
583
591
452
432
3,281
3,114
3,221
3,198
3,316
2,931
156,630
141,251
116,961
124,250
121,502
76,145
16,923
16,780
18,743
18,884
14,643
1,384
185,009
193,064
177,229
173,996
174,993
194,715
368,685
344,107
327,336
276,065
293,860
293,364
48
64
119
134
(344)
74
724
1,250
1,028
954
944
863
19,851
25,798
20,269
15,564
13,207
12,051
12,435
10,080
10,551
9,217
6,452
8,440
536,181
552,238
586,893
572,744
575,004
591,417
340,181
374,277
485,101
460,484
462,853
486,104
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
Police
Stations
Patrol units
Fire stations
Refuse collection
Collection trucks
Other public works
Streets (miles)
Streetlights
Traffic signals
Parks and recreation
Acreage
Playgrounds
Golf courses
Water
Water mains (miles)
Fire hydrants
Storage capacity (thousands of gallons)
Wastewater
Sanitary sewers (miles)
Storm sewers (miles)
Treatment capacity (thousands of gallons)
Transit
Buses
2005-2006
2006-2007
2007-2008
2008-2009
1
1
1
1
114
114
103
105
8
8
8
8
34
34
36
36
585
587
515
529
7,926
7,922
7,976
8,203
102
98
102
104
1,200
1,200
1,200
1,200
47
47
47
40
1
1
1
1
830
846
720
720
6,000
6,019
2,264
2,264
14,000
21,500
21,000
22,500
529
531
538
550
96
96
117
117
56,600
21,410
21,410
22,800
12
12
12
12
Notes:
Data was not available for all items for all years. The City will provide more data as it becomes available.
134
EXHIBIT 1-19
Fiscal Year
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
2014-2015
1
1
1
1
1
1
115
114
114
113
113
113
8
8
8
8
8
8
36
36
36
36
36
36
514
514
515
515
515
515
7,958
8,084
7,931
7,942
7,972
7,996
104
104
104
104
104
104
1,200
1,200
1,200
1,200
1,200
1,200
39
39
39
39
39
39
1
1
1
1
1
1
572
572
577
578
579
580
2,545
2,547
2,579
2,588
2,588
2,593
37,000
37,000
37,000
37,000
37,000
37,000
543
543
545
546
547
548
97
97
97
98
98
98
21,410
24,410
24,410
21,410
21,410
21,410
14
14
14
14
14
13
lc i a a l
5
T E X A S
e/a,Skies 4ella'enOy��-tun��ies
Graphics
100
a
70
c
O 60
E
50
40
O
0 3C
Z
CITY OF WICHITA FALLS, TEXAS
CASH AND INVESTMENTS
(UNAUDITED)
EXHIBIT J-1
135
10
CITY OF WICHITA FALLS, TEXAS
GENERAL OBLIGATION BONDS PAYABLE
l-JK:;pLGlllUlUl .Jv, 2015
(UNAUDITED)
EXHIBIT J-3
137
200
175
150
c
O 125
100
L
75
O
50
25
CITY OF WICHITA FALLS, TEXAS
REVENUE BONDS PAYABLE
September ju, 2015
(UNAUDITED)
EXHIBIT J-4
138
16
14
U)
C
O 12
E 10
c
cn 8
ca
O 6
4
2
0
CITY OF WICHITA FALLS, TEXAS
GENERAL FUND EQUITY
2013
September 30,
2014
ElUnassigned ®Assigned/Committed
(UNAUDITED)
139
2015
EXHIBIT J-5
35
30 /
c 25
O
E 20 '
c
L
15
O
10 -
5 -
x
CITY OF WICHITA FALLS, TEXAS
COMPARISON OF TAX LEVY AND COLLECTIONS
Tax Collections ®Tax Levy `v T 2015
(UNAUDITED)
EXHIBIT J-6
ax Levy
Collections
140
CITY OF WICHITA FALLS, TEXAS
REVENUES BY SOURCE - FYE 9/30/15
Fines and forfeitures
1%
Taxes
41%
Miscellaneous Contributions Intergovernmental
4% 4% 9%
(UNAUDITED)
.s for services
39%
-ises and permits
2%
EXHIBIT J-7
141
Debt Sery
7%
Capital Outlay
3%
MPEC
2%
Traffic and Transportal
11%
CITY OF WICHITA FALLS, TEXAS
EXPENDITURES BY FUNCTION - FYE 9/30/15
Administrative Services
18%
31/0 Public Works
25%
(UNAUDITED)
EXHIBIT J-8
Fire
8%
Parks and Recreation
4%
Accounting/Finance
2%
mmunity Development
4%
142
70
65
5E
5
CITY OF WICHITA FALLS, TEXAS
GENERAL GOVERNMENTAL REVENUES (GENERAL FUND ONLY)
Years Ended September 30,
(UNAUDITED)
EXHIBIT J-9
143
C4
T E X A 5