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CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2017
ISSUED BY:
DEPARTMENT OF FINANCE
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CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2017
TABLE OF CONTENTS
INTRODUCTORY SECTION
Exhibit Page
Letterof Transmittal................................................................................................................................ i-ix
GFOA Certificate of Achievement........................................................................................................... x
OrganizationalChart ............................................................................................................................... xi
Listof Principal Officials.......................................................................................................................... xii
FINANCIAL SECTION
IndependentAuditor's Report................................................................................................................. 1-2
Management's Discussion and Analysis (Required Supplementary Information) .................................. 3-13
BASIC FINANCIAL STATEMENTS
Statement of Net Position...............................................................................................................A-1
14
Statementof Activities....................................................................................................................A-2
15
Balance Sheet - Governmental Funds...........................................................................................A-3
16
Reconciliation of the Governmental Funds Balance Sheet to the Statement
ofNet Position..............................................................................................................................A-4
17
Statement of Revenues, Expenditures and Changes in Fund Balances -
GovernmentalFunds....................................................................................................................A-5
18
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of the Governmental Funds to the Statement of Activities............................................A-6
19
Statement of Net Position - Proprietary Funds...............................................................................A-7
20-21
Statement of Revenues, Expenses and Changes in Net Position -
ProprietaryFunds.........................................................................................................................A-8
22
Statement of Cash Flows - Proprietary Funds................................................................................A-9
23-24
Statement of Fiduciary Assets and Liabilities................................................................................A-10
25
Notesto the Financial Statements.....................................................................................................
26-64
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule - General Fund..........................................................................
B-1
65
Notes to the Required Supplementary Information...........................................................................
66
Schedule of Changes in Net Pension Liability and Related Ratios —
Texas Municipal Retirement System............................................................................................
B-2
67
Schedule of Contributions — Texas Municipal Retirement System.................................................B-3
68
Schedule of Changes in Net Pension Liability and Related Ratios —
Wichita Falls Firemen's Relief and Retirement Fund...................................................................
B-4
69
Schedule of Contributions — Wichita Falls Firemen's Relief and
RetirementFund...........................................................................................................................B-5
70
Wichita Falls Retiree Health Care Plan — Analysis of Funding Progress ........................................
B-6
71
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2017
TABLE OF CONTENTS (CONT'D.)
Exhibit
COMBINING FINANCIAL STATEMENTS:
Nonmajor Governmental Funds:
CombiningBalance Sheet.........................................................................................................C-1
Combining Statement of Revenues, Expenditures and Changes in Fund Balances.................C-2
Budgetary Comparison Schedule — Community Development Block Grant Fund ....................C-3
Budgetary Comparison Schedule — Section 8 Housing Fund...................................................C-4
Budgetary Comparison Schedule — Home Investment Partnership Agreement Fund ..............C-5
Budgetary Comparison Schedule — Hotel/Motel Tax Fund.......................................................C-6
Budgetary Comparison Schedule — Golf Fund..........................................................................C-7
Budgetary Comparison Schedule — MPEC Fund......................................................................C-8
Budgetary Comparison Schedule — Debt Service Fund............................................................C-9
Nonmajor Enterprise Funds:
Combining Statement of Net Position........................................................................................D-1
Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................D-2
Combining Statement of Cash Flows........................................................................................D-3
Internal Service Funds:
Combining Statement of Net Position........................................................................................
E-1
Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................
E-2
Combining Statement of Cash Flows........................................................................................
E-3
Agency Fund:
Statement of Changes in Assets and Liabilities........................................................................
F-1
Component Units:
Combining Statement of Net Position........................................................................................G-1
Combining Statement of Activities.............................................................................................G-2
SUPPORTING SCHEDULES:
Combined Schedule of Bonded Debt and Interest Maturities ........................
Combined Schedule of Bonds Payable.........................................................
Debt Service Coverage — Revenue Bonds ....................................................
Capital Assets Used in the Operation of Governmental Funds -
Schedule By Function and Activity..............................................................
Capital Assets Used in the Operation of Governmental Funds -
Schedule of Changes By Function and Activity ...........................................
Regional Airport Fund — Capital Assets and Accumulated Depreciation.......
Kickapoo Airport Fund — Capital Assets and Accumulated Depreciation ......
Transit Fund — Capital Assets and Accumulated Depreciation .....................
Stormwater Drainage Fund - Capital Assets and Accumulated Depreciation
Sanitation Fund — Capital Assets and Accumulated Depreciation ................
Page
72
73
74
75
76
77
78
79
80
81
82
83-84
85
86
87
116
................H-1
91
................ H-2
92-96
................H-3
97
................ H-4
98
................ H-5
99
................H-6
100
................ H-7
101
................ H-8
102
................ H-9
103
............... H-10
104
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2017
TABLE OF CONTENTS (CONT'D.)
Exhibit
Page
Water and Sewer Fund — Capital Assets and Accumulated Depreciation .....................................
H-11
105
Waterpark Fund — Capital Assets and Accumulated Depreciation ................................................
H-12
106
Fleet Maintenance Fund — Capital Assets and Accumulated Depreciation...................................H-13
107
Duplicating Services Fund — Capital Assets and Accumulated Depreciation................................H-14
108
Information Technology Fund — Capital Assets and Accumulated Depreciation ...........................H-15
109
Wichita Falls Economic Development Corporation — Capital Assets and
Accumulated Depreciation...........................................................................................................H-16
110
STATISTICAL SECTION (UNAUDITED)
Net Position By Component — Last Ten Fiscal Years.....................................................................
1-1
111
Changes in Net Position — Last Ten Fiscal Years..........................................................................
1-2
112-113
Fund Balances, Governmental Funds — Last Ten Fiscal Years .....................................................
1-3
114
Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years ..................................
1-4
115
Tax Revenues By Source, Governmental Funds — Last Ten Fiscal Years ....................................
1-5
116
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years ....................
1-6
117
Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ............................................
1-7
118
Principal Property Taxpayers — Current Year and Nine Years Ago ................................................
1-8
119
Property Tax Levies and Collections — Last Ten Fiscal Years .......................................................
1-9
120
Ratios of Outstanding Debt by Type — Last Ten Fiscal Years .......................................................
1-10
121
Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years .........................................
1-11
122
Direct and Overlapping Governmental Activities Debt.................................................................
1-12
123
Computation of Legal Debt Margin — Last Ten Fiscal Years.........................................................
1-13
124
Pledged Revenue Coverage — Water and Sewer Revenue Bonds —
LastTen Fiscal Years..................................................................................................................
1-14
125
Demographic Statistics — Last Ten Fiscal Years...........................................................................
1-15
126
Principal Employers — Current Year and Ten Years Ago..............................................................
1-16
127
Full -Time Equivalent City Government Employees by Function/Program —
LastTen Fiscal Years..................................................................................................................
1-17
128
Operating Indicators by Function/Program — Last Ten Fiscal Years .............................................
1-18
129
Capital Asset Statistics by Function/Program — Last Ten Fiscal Years .........................................
1-19
130
Graphics:
Cashand Investments...............................................................................................................
J-1
131
TotalBonds Payable.................................................................................................................
J-2
132
General Obligation Bonds Payable...........................................................................................
J-3
133
RevenueBonds Payable...........................................................................................................
J-4
134
GeneralFund Equity.................................................................................................................
J-5
135
Comparison of Tax Levy and Collections.................................................................................
J-6
136
Revenues by Source — FYE 9/30/17.........................................................................................
J-7
137
Expenditures by Function — FYE 9/30/17..................................................................................
J-8
138
General Governmental Revenues (General Fund Only)...........................................................
J-9
139
General Governmental Expenditures (General Fund Only) ....................................................
J-10
140
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Introductory Section
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March 27, 2018
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, 2017. 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, 2017, 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 (SAFB), which operates the Euro-NATO jet pilot training program. The city's major
university is Midwestern State University (MSU). 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 (MPEC), which includes a coliseum, exhibit hall, and an agricultural arena/show barn. The 2017
population for Wichita Falls, as estimated by the City, is 104,724, an increase of 0.15% from the 2010 Census
estimates, and an increase of 0.49% 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.
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
(WFDEC) have been aggressive over the last few years in granting economic development incentives for primary
job creation. From 2010 through the present, 36 projects have been approved for incentive funding totaling
$26,799,000 with the potential for creating and/or retaining over 4,443 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.
During the 2017 calendar year, the WFDEC supported numerous economic development projects totaling
$8,783,305.
• Comprehensive Economic Development Strategy — One of the City Council's top strategic goals
recently established is to accelerate economic growth. An objective to accomplish that goal was to
collaborate on a comprehensive economic development strategy. In early 2017, the WFEDC and 4B
Sales Tax Boards selected Market Street Services to prepare this strategy. The project established an
Economic Development Steering Committee consisting of 25-30 leaders from representatives of the
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City, County, WFEDC, 4B Sales Tax Board, Wichita Falls Independent School District, MSU, SAFB,
and a few industries and local businesses. The work was separated into six phases: project initiation
and stakeholder engagement; a regional assessment and development of scorecard; target sector analysis
and marketing review; development of the strategy; implementation of the plan; and a one-year
implementation assessment. The plan is nearly complete and implementation will soon begin. The cost
of the study was $183,500, and both the 4A and 4B Boards are sharing equally with $91,750 of the cost
of the study. Sheppard Military Affairs Committee BRAC Strategy — Sheppard Air Force Base is the
area's largest employer and extremely important to the local economy. As a result, WFEDC approved
$33,600 to pay a portion of the $56,000 cost to hire a consultant to develop a strategy for SAFB to be
prepared in case a BRAC process is commissioned.
Chantex Manufacturing, Inc. - Chantex Manufacturing, Inc. is a third -generation business that has
successfully expanded their operations and created manufacturing jobs in our community. In late 2016,
the WFEDC provided a forgivable loan in the amount of $128,000 to purchase equipment for Chantex
in return for the creation of 16 new jobs. Chantex created 28 new jobs as part of that first phase.
Chantex now has plans for a second expansion project to build another new 7,500 sq. ft. steel building
on the property already owned by Chantex. The new building would be used for the manufacturing and
assembly of closure heads for pressure vessels. The WFEDC approved another forgivable loan in the
amount of $168,750 to purchase additional equipment for Chantex in return for the creation of 20 new
jobs.
• Vitro Architectural Glass (formerly PPG) Super Coater Project — A total of $3 million was
approved by the WFEDC as an economic incentive to assist with the new super coater addition at the
Vitro Architectural Glass Plant. Vitro chose their plant in Wichita Falls for this expansion above several
of their other facilities. The total project cost is estimated to be $55 million and would require up to 50
new employees.
Marketing Expenses for Stanley Tools and ATCO Structures Facilities — The WFEDC currently
owns two facilities that have been improved and are very close to being ready for future economic
development projects. The corporation owns the property at 2801 Production Boulevard (known
formerly as the Stanley Tools property) and a building at 2400 Burkburnett Road (the facility formally
leased by ATCO Structures). On March 30, 2017, the WFEDC approved funding in the amount of
$38,105 to Holmes Davis, Binswanger in Dallas, to market these facilities for sale or lease.
• MPEC Parking Lot Additions — The WFEDC budgeted $497,500 for 50% of the expected costs for
parking lot additions on the MPEC grounds as part of the proposed Hotel/Conference Center Project.
The footprint of the proposed hotel and conference center will consume 158 parking spaces. The new
parking being designed is estimated to provide 175-185 parking spaces at an estimated construction cost
of $995,000. The 4A and 4B Boards are sharing equally in the construction cost.
Sheppard AFB Installation Main Gate Upgrades Project — Sheppard Air Force Base (SAFB) has
plans to make extensive revisions to the main gate to the Base, known as Sheppard Gate. These
modifications are principally designed to address Unified Facilities Criteria (UFC), in the area of Anti-
Terrorism/Force Protection guidelines. This proposed Main Gate Upgrade Project will deliver
necessary improvements to safeguard the installation against outside threats and will ensure the safety of
airmen, civilians, and support personnel on base. Upgrades will include traffic calming measures by
adding curves to inbound/outbound lanes, speed humps, and channelization islands. An additional
inbound lane will improve queuing capacity within the Entry Control Facility and reduce traffic
congestion past the Burkburnett Road/Sheppard Access Road intersection. Placement of guard booths at
the channelization islands will allow for greater efficiency in ID checks and vehicular denial, while also
providing additional safety measures for Security Forces personnel. The cost estimated to complete the
project is $5.7 million. SAFB has a total of $2.7 million available from grants, and the remaining funds
are expected to come from a $1.5 million Defense Economic Adjustment Assistance Grant (DEAAG)
and $1.5 million of WFEDC funds.
• Eagle Rail Car Services Project (Phase III) — Eagle Rail Car Services (ERCS) began operations in
Wichita Falls at new facilities located at the former Vetrotex/Certainteed plant in September of 2014.
iii
The 4A Corporation provided incentives in two previous phases in return for the creation of 124 jobs.
The company met those requirements and has invested in excess of $15 million in the Wichita Falls
facility. This year, the WFEDC approved an additional $500,000 in equipment and cash for jobs if the
company creates and maintains an additional 32 jobs.
Owens Corning Technical Fiberglass Project — Owens Corning has two facilities that manufacture
technical fiberglass fabric in the US: Wichita Falls, Texas, and Brunswick, Maine. Neither plant is
currently competitive, primarily because the company doesn't have enough business to justify two sites.
Owens Coming's management has given approval to either consolidate two facilities, or to find a brand
new third site somewhere in the upper Midwest and consolidate all operations. The company has
decided that Wichita Falls would provide an ideal location for this expansion. They intend to invest
approximately $13 million in the community and create an additional 50 jobs. The WFEDC approved a
forgivable loan of $1,615,000 for this project.
Wichita Falls 4B Sales Tax Corporation
The 413 Sales Tax Corporation continues to be the primary funding mechanism for meeting the City Council's
goal of redeveloping downtown. Over the past year, 12 Downtown Improvement Grants were approved through
the $5,000 matching grant program, for a total of $46,569. These grants are typically used for existing business
that need help improving their property for such things as sidewalks, facades, awnings, landscaping, lighting,
signage, windows, paint, etc. Additionally, the 4B Sales Tax Corporation approved 9 projects for new
developments in the downtown area totaling $1,521,400. These projects are summarized below:
Wichita Falls Brewing Company at 701 Indiana: The two partners/owners of Wichita Falls Brewing
Company are locating their new business of brewing and reselling beer at 701 Indiana. The 4B Sales
Tax Corporation provided $40,000 to install a fire suppression system in the building as part of their
redevelopment effort. The company has formed the LLC, leased the property, ordered and installed the
brewing equipment, finished the garage doors/windows, and launched a marketing campaign. They are
expected to open in the near future.
• P-2 The Deuce Realty LLC (The Warehouse) at 1401 Lamar: P-2 The Deuce Realty LLC is the
parent organization of the Warehouse. This company converted a 15,000 square foot warehouse into a
venue for public events, weddings, receptions, private parties and banquets, etc. at 1401 Lamar. The
"Warehouse" services approximately 1,100 people for such events. The Board approved $6,200 to
cover the cost of a handicap accessible ramp for the building.
• Half Pint LLC at 817 Ohio: The owners of property at 817 Ohio recently opened for business in a
renovated historic building. The business is a brick oven pizza pub, including craft beer, wine, live
music, and private party rentals. The 4B Sales Tax Corporation approved $44,200 for the project so
that the building could be retrofitted with a fire suppression system.
Overland Property Management Group/OPG Lamar Partners, LLC at 1100 to 1102 Lamar
Street: The Overland Property Management Group plans to convert the Old Maskat Shriner Temple
Building at 1100-1102 Lamar Street into senior living units and mixed use retail space. This project
was approved for both Historic and Affordable Tax Credits. The total project cost is estimated to be $8
million and the 4B Sales Tax Corporation approved $300,000 to assist with fire suppression and other
elements of the project.
• Wichita County Heritage Society's Kell House Museum Renovations at 900 Bluff Street: The
Wichita County Heritage Society has plans to completely restore the Kell House Museum. The
estimated cost for the project is $2 million. The 413 Sales Tax Corporation approved $100,000 for the
project conditioned on $750,000 of matching funds be raised for the project.
• HLCC Ventures LLC (aka Hook and Ladder Wine and Coffee Company) at 616 Seventh Street:
Hook and Ladder Wine and Coffee Company has plans to historically preserve and renovate the
building at 616 Seventh Street into a retail & wholesale coffee roasting and winery facility. The
expected opening is March, 2018. HLCC Ventures LLC has purchased the historic building, which was
formerly used for a retail apparel store for over ten years. The 4B Sales Tax Corporation approved
$16,000 for plumbing, electrical, and other infrastructure work to preserve this building. The total
renovation cost is anticipated to be approximately $160,000.
• Ganache Custom Cakery, LLC Renovation Project at 800-806 Ohio Street: Ganache Custom
Cakery, LLC has plans to spend approximately $1.95 million on a project to renovate the old Zales
Building at 800, 802-806 Ohio Street into a Karat Bar & Bistro, Supper Club and Upstairs Patio Bar.
The 4B Board approved $105,000 for the completion of the Karat Bar & Bistro, $45,000 for the
completion of the Supper Club, and $45,000 upon completion of the Upstairs Patio Bar.
• Petroleum Building Wichita Falls LLC Renovation Project at 726 Scott Avenue: Will Kelty,
owner of the Petroleum Building Wichita Falls LLC, has plans to convert the old Crescent Plaza Hotel
into 170 residential living units. This project, when completed is expected to cost $8.8 million over two
phases: 1) $4.8 million to install the fire suppression system throughout the building, renovate 110 units
on floors 2 thru 5 for residential units intended primarily for student and/or military housing, and
upgrade the swimming pool; and 2) renovate 60 units on floors 6 thru 10 into more regular style
apartments. The units on the bottom floors would be efficiency or dormitory style living quarters
without full kitchens. The 4B Sales Tax Corporation approved $800,000 to cover the cost of the fire
suppression and alarm system for the project upon completion of the 110 dormitory style units.
• Vectra #3, LLC. Renovation Project at 914 Indiana. Vectra #3 LLC plans to renovate the building at
914 Indiana into a dinner theatre and rehearsal studio for the 4Kidz Sake Program managed by the
Wichita Theatre. Vectra #3 will complete the renovations and then lease the facility to the Wichita
Theatre for its use. The 413 Board approved $20,000 towards the fire suppression system installation.
Full -Service Hotel/Conference Center Project: The 413 Sales Tax Corporation also spent nearly $753,000
over the past 18 months with Gatehouse Capital LLC on pre -development expenses related to a proposed full -
service hotel and conference center to be built on the grounds of MPEC. The first $111,000 of this amount was
paid to Gatehouse to develop an Initial Period Conceptual Plan that revised a third party market study and
econometric study; develop conceptual Hotel and Conference Center drawings; conceptual development and
construction budgets; develop critical event path for planning, development and opening of the Hotel; solicit term
sheets from the hotel brand and management firm; outline of the proposed capital and operating financing
structure, and identify the proposed professional development team. The conceptual plan resulting from this
initial work identified a project consisting of a public -private partnership between the City/413 Corporation and
Gatehouse Capital in the construction and operation of a 150-Room Full -Service Hotel with 12,000 square feet of
conference space. The plan consisted of a capital financing plan for the hotel that called for Gatehouse to borrow
approximately $19.5 million from a private lending institution and also borrow $9.5 million from the 4B
Corporation. The 4B Corporation would be required to issue revenue bonds to make that loan. The market study
and pro -forma showed that both of these loans could be paid back through the operating income of the Hotel if
certain tax incentives were approved such as property tax abatement, hotel tax rebates, and sales tax rebates. The
Hotel would be owned by Gatehouse Capital and managed by Aimbridge Hospitality. The second element of the
conceptual plan involved City ownership of 12,000 square feet of Conference Center space adjoined to the Hotel.
The plan would be for the City to borrow $7.6 million for construction of the conference center space, with the
413 Corporation paying the annual debt service on that note.
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 with several
new businesses or relocations occurring in the downtown revitalization emphasis of the City.
The value of construction permits is also an indication of economic activity in the community. Residential
permits totaled $32,947,479 during the 2016-17 fiscal year, which is a decrease of $1,603,808, or a 4.6%
decrease from the prior year. The value of commercial construction permits totaled $70,836,908, which is a
decrease of $80,016,960, or a 53.1% decrease over the prior fiscal year. Most of this decrease in commercial
construction permits reflects the completion of several school building additions and the new WFISD Career
v
Education Center, which in the 2015-16 fiscal year totaled $41,865,000 in value. 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:
• New Residence Inn — New Construction - a total of 67,480 sq. ft. with an estimated value of $6,000,000.
• Apartment Complex — New Construction - a total of 46,420 sq. ft. with an estimated value of
$4,200,400.
• YMCA Gym Addition - a total of 14,000 sq. ft. with an estimated value of $3,500,000.
• Women's Clinic — New Construction - a total of 11,000 sq. ft. with an estimated value of $2,500,000.
• Dialysis Center - New Construction — a total of 9,000 sq. ft. with an estimated value of $1,950,000.
Another indicator of local economic performance is the retail sales tax. During the 2016-17 fiscal year, the City
generated $29,884,529 in retail sales taxes, which was $52,839, or 0.18% more than in the prior fiscal year.
MAJOR INITIATIVES
For The Year.
In October 2016, a contract in the amount of $73,400 was awarded to Freese and Nichols, Inc. for engineering
services for the Cypress 1987 Water Treatment Plant. This project includes the design of improvements for the
replacement of filter influent valves, drain valves, and incorporation of actuators to allow for remote control;
upgrades to the air compressor system; rehabilitation/replacement of the main filter control panel; and the
replacement of the clarifier radial collector troughs and effluent weirs.
In December 2016, a contract in the amount of $361,979 was awarded to Duke Holding Company, Inc. dba Duke
Construction Company for the 2016 Falls Bridge Replacement and Trail Improvement Project. This project
includes the installation of a new steel pedestrian and light vehicle bridge, construction of a concrete hike and
bike trail connector, landscaping, handrail, and associated work.
Also in December 2016, a contract in the amount of $189,775 was awarded to Biggs and Mathews, Inc. for
engineering services for the Drainage Master Plan for Quail Creek to prevent flooding occurring along Kemp
Street, Maplewood Avenue and Midwestern Parkway.
In February 2017, a contract was awarded in the amount of $1,597,516 to Oldcastle Materials Texas, Inc. for the
2017 Asphalt Street Rehabilitation Project. This project is generally described as the rehabilitation of selected
asphalt streets to include base repair, Type D HMAC, milling, and associated work.
In March 2017, a contract was awarded to Biggs & Matthews, Inc. the Phase III Sanitary Sewer Evaluation Study
to comply with Texas Commission on Environmental Quality Agreement in the amount of $150,000. The
purpose of the SSES is to assist the City in identifying the locations, and causes of the Sanitary Sewer Overflows
(SSO) and is to be used as a tool or roadmap for the City when developing sewer maintenance and repair
projects.
In April 2017, a contract in the amount of $506,607 was awarded to Freeman Paving, LLC for the 2017 Concrete
Street Rehabilitation Project. This project is generally described as the concrete repair of selected City streets
and associated work.
In May 2017, a contract was awarded to Scales Concrete Construction Co., Inc. in the amount of $1,436,123 for
the Hike and Bike Trail from Wichita Bluffs to Loop 11 with a parking lot, and associated work. This project is
the second of three phases in connecting the Circle Trail along Seymour Highway to Lucy Park.
vi
In June 2017, a contract was awarded to JLT Contracting, LLC in the amount of $481,737.80 for the Pedestrian
Improvements along Kemp Blvd from Midwestern Parkway to Southwest Parkway. This project is generally
described as the construction of concrete sidewalks, pedestrian ramps, intersection improvements along Kemp
Blvd from Midwestern Pkwy to Southwest Pkwy and associated work.
Also in June 2017, a contract was awarded to A&M Construction and Utilities, Inc. for the 2017 Water Budget
Utility Improvements Project in the amount of $1,038,657. This project is generally described as the
replacement of old deteriorated mains with new 6-inch and 8-inch PVC waterlines, dead end main improvements,
large valve replacement, and associated work. This project will help to improve the water quality, and overall
reliability of the water distribution system.
In July 2017, a contract was awarded to Insituform Technologies, LLC in the amount of $98,655 for the 2017
Sewer Budget Utility Improvements Project Phase I. This project will rehabilitate existing sanitary sewer line
segments on Bunny Run Drive, Brookdale Drive, Briarwood Drive, Mistletoe Drive, and Maplewood Avenue.
Also in July 2017, a contract was awarded to Freeman Paving, L.L.C. in the amount of $285,238 for the 2017
Alley Rehabilitation Project. This project is generally described as the removal and replacement of concrete
alley, 6-inch sewer main, sanitary sewer manholes, and associated work.
In August 2017, a contract was awarded to Bowles Construction Co. in the amount of $147,320 for the 2017
CDBG Waterline Replacement Project. This project is generally described as the replacement of old deteriorated
2" galvanized mains with new 6-inch PVC waterlines, dead end main improvements, reconnect services, and
associated work. This project will improve the overall reliability of the water system and reduce maintenance
costs.
Also in August 2017, a contract was awarded to Platinum Utility & Construction Partnership in the amount of
$759,691 for the 2017 Sanitary Sewer Budget Utility Improvement Project — Phase 2. This project is generally
described as the replacement of deteriorated clay tile sewer lines and the rehabilitation of selected alleys, and
associated work. The intent of the sewer main replacement is to improve the overall reliability of the collection
system, reduce maintenance costs and overflows.
In September 2017, a contract was awarded to Earth Builders, L.P. in the amount of $182,525.00 for 2017 Lake
Arrowhead Dam Repair. This action was needed to repair the eastern end of the dam on the lake that serves as
the largest water supply lake for the City.
For The Future.
In May 2018, the City of Wichita Falls will call a bond election for improvements to the City's infrastructure.
The City has identified seven (7) projects totaling $131 million that will be placed on the ballot and citizens will
have a choice to address each proposition individually. The projects and associated costs are listed below:
Proposition A: Parks and Trails - $7.38 million. This proposal would provide 20% matching funds for already
approved 80% state grants that will fund the cost of 3 projects that continue the completion of the 26-mile circle
trail system, renovate with artificial turf 4 existing fields at the City's Sports Complex on Sheppard Access Rd;
and resurface the southernmost parking lot and entrance at Lake Wichita Park, adjacent to Fairway Blvd and
Lakeshore Drive.
Proposition B: Lake Wichita Improvements - $3.915 million. Construction of a boardwalk and pavilion on the
shore of Lake Wichita near the Spillway, Construction of a Veteran's Memorial Plaza along the shore of Lake
Wichita, the addition of a 1.0-mile section of the 26-mile circle trail system along the shore of Lake Wichita
between Larry's Marina west to Barnett Road.
Proposition C: Streets $17.3 million. Provides funds to rehabilitate existing City streets. The total project cost
would be dedicated to street overlays, a method of street rehabilitation that reduces pavement roughness,
cracking, and irregularities at a lesser cost than street reconstruction; and Connect and expand to 4 lanes
vii
Maplewood Ave between Lawrence Rd and McNeil Ave; and expand Taft Boulevard from 2 lanes to 4 lanes
from Southwest Parkway south to Kemp Boulevard, including related drainage improvements.
Proposition D: Downtown -area Municipal Government Center $77 million. New downtown -area Municipal
Government Center facility that would include City government administrative offices, a new central police/fire
department headquarters and a new Fire Station #1. If approved, this project would replace the existing City Hall
which is within the 90-year old Memorial Auditorium that requires repairs and renovations to address structural
and federal accessibility issues; both the 55-year old police station and 53-year old Fire Station #1/Fire
Administration that require repairs to address overcrowding, federal accessibility, and systems -related issues.
Proposition E: MPEC Improvements $2.175 million. Renovations at the Exhibit Hall including a new sound
system and video surveillance, restroom renovations, and replacement of the air walls/room dividers; and
renovations at the Agricultural Center including roof replacement, new video surveillance, and replacement of
the panels, chutes, and announcer stands; and renovations at the Coliseum including new video surveillance and
ticket scanners, replacement of video board cameras, portable seating, and interior lighting with LED lights.
Proposition F: Memorial Auditorium $1.45 million. Replacement of event -related equipment including rigging,
curtains, lighting, and the sound system.
Proposition G: Downtown Improvements $21.9 million. Reconstruction, replacement, and/or additions in the
downtown core area including sidewalks, landscaping, crosswalks, decorative street lights, traffic control devices,
public parking, and related infrastructure and pedestrian areas.
The City also entered into a professional services agreement for the joint public/private construction of a major
brand 150 room full -service conference hotel to be constructed adjacent to the City's multi -purpose event center.
In addition, the City will construct a conference center next to the conference hotel. With the addition of this
hotel and facilities, the City hopes to make major strides in attracting more conferences and conventions to the
city. The City anticipates issuing debt in the summer of 2018 to fund the conference center and to assist with the
construction of the conference hotel.
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, 2017, and related
appropriations are carried forward to the new fiscal year through a supplemental budgetary allocation.
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
Viii
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, Water/Sewer Fund, and the Sanitation Fund.
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, 2017, the City's tax supported debt was approximately
$42.7 million, which is 0.89% of the taxable value of property, and $407 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
Uniform Guidance, 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, 2016. This was the 22nd 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,
�� oj%-"
Patrick Halverson
Director of Finance
ix
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, 2016
Executive Director/CEO
x
CITY OF WICHITA FALLS
ORGANIZATIONAL CHART
WICHITA FALLS
CITIZENS
CITIZEN CITYCOUNCIL CITIZEN BOARDS
COMMISSIONS
MUNICIPAL CITY MANAGER CITYATTORNEY CITY CLERK
COURTJUDGE
I
DEPUTY
I
POLICE
I
FIRE
I
HEALTH
CITY MANAGE
1
_DEPARTMENT !
i
DEPARTMENT
DEPARTMENT
TECHNICAL -
FIELD SERVICES
_ ARSON
FIRE SUPRESSION
ADMINISTRATION - - ENVIRONMENTAL
SERVICES
INVESTIGATION
HEALTH
HUMAN
FINANCE
RESOURCES
DEPARTMENT
DE►ARTMENT
EMERGENCY
PUBLIC HEALTH LAB/WATER
...
ADMINISTRATION
MANAGEMENT
NURSING POLLUTION
BUDGET
DEVELOPMENT - ACCOUNTING
RISK
PERSONNEL - - MANAGEMENT
ANIMAL
SERVICES �
UTILITY
EMPLOYEE
PURCHASING --
COLLECTIONS
BENEFITS
I
I
MULTI -PURPOSE
AVIATION, TRAFFIC
PUBLIC WORKS/
EVENT CENTER
AND
PUBLIC UTILITIES
MUNICIPAL
DEPARTMENT
TRANSPORTATION
DEPARTMENT
COURT
CONVENTION &
PUBLIC
VISITORSBUREAU -- EXHIBIT HALL
AIRPORTS -- TRANSPORTATION
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ENGINEERING �--- SANITATION
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PARKSAND
TECHNOLOGIES&
RECREATION
FACILITIES
AGRICULTURE
TRAFFIC CENTRAL
STREET
DEPARTMENT
DEPARTMENT
ARENA COLISEUM-
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ENGINEERING � SERVICES
t- - UTILITIES
MAINTENANCE
PARKS
INFORMATION BUILDING
TRANSPORTATION
RECREATION --
MAINTENANCE
_-
TECHNOLOGY MAINTENANCE
PLANNING
PUBLIC
MLKCENTER -- LIBRARY
COMMUNICATION
CEMETERY
J
I
ASSISTANT
CITY MANAGER
COMMUNITY
DEVELOPMENT
DEPARTMENT
COMPREHENSIVE
BUILDING
--
PLANNNG
INSPECTION
PROPERTY --
CODE
MANAGEMENT
ENFORCEMENT
NEIGHBORHOOD
RESOURCES
HOUSING
w
CITY OF WICHITA FALLS, TEXAS
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2017
Title
Mayor
Mayor Pro-Tem
City Council Member
City Council Member
City Council Member
City Council Member
City Council Member
City Manager
City Attorney
Municipal Court Judge
City Clerk
Deputy City Manager
Assistant City Manager
Director of Aviation, Traffic and Transportation
Finance Director
Director of Public Health
Police Chief
Fire Chief
Director of Public Works and Public Utilities
Name
Stephen Santellana
Michael Smith
Eric West
Deandra Chenault
Brian Hooker
Jesse Brown
Romeo Montez
Darron Leiker
Kinley Hegglund
Larry Gillen
Tracy Norr
Jim Dockery
Paul Menzies
John Burrus
Patrick Halverson
Lou Kreidler
Manuel Borrego
Jon Reese
Russell Schreiber
xii
Financial Section
Independent Auditor's Report
EDGIN, PARKMAN, FLEMING & FLEMING, PC
CERTIFIED PUBLIC ACCOUNTANTS
4111 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, 2017, 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, 2017, 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.
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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued under separate cover our report
dated March 27, 2018, 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 27, 2018
2
Management Discussion and Analysis
FINANCE DEPARTMENT
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T E X A S
B/ue skies Crolden O�yortun�ties
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
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, 2017. 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 furnished 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, 2017, by
$376,582,645 (net position). The net position for the City increased by $9,764,583 over the prior
year. While the unrestricted net position for Governmental Activities was ($68,466,161), the
Business -type Activities had an unrestricted net position of $27,573,458 for an overall
unrestricted net position of ($40,892,703). Contributing to the change in the Business -type
Activities in unrestricted net position is the Water/Sewer Fund as it reflected a net change of
$8,784,044 compared to a net change of $9,254,843 in the prior year. This change in the
Water/Sewer Fund reflected an increase in operating revenue of $528,581 compared to the prior
year. This increased income can be attributed to the customer base returning to near pre -drought
consumption levels and keeping the water rate increase passed in August 2014 in place. The
Sanitation Fund had operating income of $3.4 million while the Regional Airport reported an
increase in revenues of $11,000 over the prior year, while operating expenses decreased by
$53,000 for the same period.
At September 30, 2017, the City's governmental funds reported combined ending fund balances
of $21,392,687. Of this amount, $11,913,991, or 55.69%, 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
$13,138,307 or 17.85% of total General Fund expenditures.
During the 2016-17 fiscal year, the City's total debt decreased by $11,566,249. In February
2017, the City entered into a capital lease agreement to fund the purchase of needed Fire
apparatus upgrades for the City's Fire department in the amount of $2.7 million. 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.
3
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
(continued)
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 14-15 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.
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 -tune 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
4
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
(continued)
collection and disposal, regional and municipal airports, transit system, storm water drainage
improvements, fleet maintenance services and water park operations.
Component Units - Five 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, Wichita Falls Reinvestment Zone
#3, and the Wichita Falls Reinvestment Zone #4.
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
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 16-19 of this report.
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
(continued)
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 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
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 26-64 of this report.
Government -Wide Financial Analysis
The City's combined net position was $376,582,645 as of September 30, 2017, an increase of
$9,756,122, or 2.66% 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, $400,930,582, or
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
(continued)
106.47%, 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, $16,544,766, or 4.39%, represents resources that
are subject to external restrictions on how they may be used.
Net Position
(in thousands)
Governmental
Activities
2017 2016
Current and Other Assets $ 27,797 $ 27,584
Capital Assets 177,256 176,502
Total Assets 205,053 204,086
Deferred Outflows of
Resources 37,804 16,789
Long Term Liabilities 140,491 119,579
Other Liabilities 10,422 10,103
Total Liabilities 150,913 129,682
Deferred Inflows of Resources
Net Position:
Net Investment in Capital
Assets
Restricted
Unrestricted
Total Net Position
4.136 2,797
Business -type
Activities Total
2017 2016 2017 2016
$ 72,357 $ 85,400 $ 100,154 $ 112,984
386,984 369,625 564,240 546,127
459,341 455,025 664,394 659,111
8,229 8,728 46,033 25,517
167,891 174,893 308,382 294,472
10,728 10,135 21,150 20,238
178,619 185,028 329,532 314,710
176 303 4,312 3,100
150,776 148,207 250,154 236,074 400,930 384,281
5,498 4,468 11,047 11,082 16,545 15,550
(68,466) (64,279) 27,574 31,266 (40,892) (33,013)
S 288.775 $1$
7
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
(continued)
CHANGES IN NET POSITION
(in thousands)
Governmental
Business -type
Activities
Activities
Total
2017
2016
2017
2016
2017
2016
Revenues:
Program Revenues:
Charges For Services
$ 8,958
$ 8,836
$ 64,419
$ 63,948
$ 73,377
$ 72,784 j
Operating Grants and
Contributions
14,935
14,803
1,702
2,282
16,637
17,085
Capital Grants and Contributions
1,033
3,943
397
209
1,430
4,152
General Revenues:
Property Taxes
35,121
34,515
-
-
35,121
34,515
Sales Taxes
22,413
22,374
-
-
22,413
22,374
Other Taxes/Fees
7,363
7,262
-
-
7,363
7,262 '
Investment Earnings
303
130
416
176
303
306
Miscellaneous
1,652
447
22
60
1,652
507
Total Revenue
91,778
92,310
66,956
66,675
158,734
158,985
Expenses:
Administrative Services
15,199
14,236
-
-
15,199
14,236
Police
25,513
25,634
-
-
25,513
25,634
Fire
21,108
17,477
-
-
21,108
17,477
Parks and Recreation
5,656
5,637
-
-
5,656
5,637
Accounting/Finance
760
788
-
-
760
788
Community Development
6,903
6,682
-
-
6,903
6,682
Public Works
8,552
8,335
-
-
8,552
8,335
Health
5,815
5,707
-
-
5,815
5,707
Traffic and Transportation
2,579
2,667
-
-
2,579
2,667
MPEC
4,021
4,545
-
-
4,021
4,545
Interest and Fees on Long-term
Debt
1,444
1,631
-
-
1,444
1,631
Regional Airport
-
-
1,828
1,881
1,828
1,881
Kickapoo Airport
-
-
1,199
1,252
1,199
1,252
Transit
-
-
2,540
2,673
2,540
2,673
Sanitation
-
-
10,217
9,842
10,217
9,842
Water and Sewer
-
-
33,289
32,120
33,289
32,120
Stormwater Drainage
-
-
816
828
816
828
Waterpark
-
-
1,538
1,599
1,538
1,599
Total Expenses
97,550
93,339
51,427
50,195
148,977
143,534
Increase (Decrease) in Net Position
Before Transfers
(5,772)
(1,029)
15,529
16,480
9,757
15,451
Transfers
5,184
2,004
(5,184)
(2004)
-
-
Increase (Decrease) in Net Position
(588)
975
10,345
14,476
9,757
15,451
Net Position - Beginning of Year
88,396
87,421
278,430
263,954
366,826
351,375
Net Position - End of Year
$$Z Q
$$$
$288.775
$278.430
$376.593
$366,826
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
(continued)
Governmental Activities — Governmental Activities decreased the City's net position by $588,316
principally resulting from expenses related to the Fire Department's responses to wildland fires
and Hurricane Harvey disasters. Reimbursements for these activities will come from State
emergency response agencies.
Business -Type Activities — Business -type Activities increased the City's net position by
$10,344,438. The Water and Sewer Fund contributed to the majority of the increase in net
position with an increase of $8,784,044. The Sanitation Fund shows an increase of net position
of $131,054 compared to an increase of $487,107 in the previous fiscal year. The Storm Water
Utility Fund shows improvement of $516,636 in net position to allow unrestricted net position to
grow in anticipation of upcoming drainage improvement projects.
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, 2017, the City's governmental funds reported combined fund balances of
$21,392,687, which is a decrease of $539,738 from the prior year. Virtually all this decrease is
attributable to the reduction of intergovernmental revenue over the previous fiscal year due to the
completion of the Taxiway `C' rehabilitation project at the Wichita Falls Regional Airport. The
US Defense Department leases this taxiway to the airport under a 50-year lease agreement that
expires in May 2058.
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 $13,138,307, a reduction of $23,383 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 17.85% of total General Fund expenditures, while the total fund balance
represents 19.47% 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.
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, 2017, the net position for the City's internal service funds was $27,286,816, an
increase of $1,104,781. The Fleet Maintenance Fund reflects an increase of $19,369 in net
position. The Employee Benefit Trust Fund reflects an increase of $909,335 in net position
because of employee health care plan changes, an increase of employer contributions and a lower
9
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
(continued)
claim experience level compared to the previous year. The Information Technology Fund reflects
an increase of $171,208 in net position as the City continues to increase this Fund's unrestricted
net position to provide for the acquisition of a finance, purchasing, payroll and human resources
software to replace the current software whose support terminates after December 2018.
General Fund Budgetary Highlights
The final amended expenditure budget for the General Fund, including transfers out, was
increased by $1,634,035 from the original adopted budget. The reason for this increase in
appropriations can be briefly summarized as follows:
• Approximately $878,000 of prior year encumbrances were carried forward into the 2016-
17 amended budget. These encumbrances were used for on -going projects which
included $428,000 for street repairs and $310,000 for City Hall structural engineering
fees and repairs.
Actual revenues in the General Fund for the 2016-17 fiscal year were $71,632,818, which was
$176,496 below final budgeted figures. Reduced sales tax receipts accounted for approximately
$83,288 of this amount. All three of the city's utility franchise agreements reflected declines with
electricity franchise revenue being $207,805 less, the natural gas franchise revenue being
$102,305 less and the cable franchise revenue being $10,188 less. These decreases of sales tax
receipts and franchise revenues were partially offset by an increase of $78,500 over the budgeted
interest revenue due to financial market increases in interest rates.
Actual expenditures in the General Fund for the 2016-17 fiscal year were $73,605,525, which
was $1,351,127 below budgeted expenditures. A large portion of this variance was due to large
encumbrances for street repairs, building structure repairs and traffic control equipment that were
not liquidated by the close of the fiscal year that will be expended in the 2017-18 fiscal year.
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, 2017 amounts to $564,239,792 (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:
• Substantial Completion of the Permanent Indirect Water Reuse Project
• Completion of the Advanced Metering Infrastructure Project
• Construction in progress of the Kemp -Monroe Drainage Improvements Project
• Construction in progress of the Regional Airport Taxiway Charlie Rehabilitation
• Hike & Bike Trail from Seymour Road to Lucy Park Project
• Street Rehabilitation and Utility Improvement Projects
10
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
(continued)
Capital Assets, net of Accumulated Depreciation
(in thousands)
Governmental Business -type
Activities Activities Total
2017
2016
2017
2016
2017
2016
Land
$ 12,227
$ 12,225
$ 9,303
$ 9,303
$ 21,530
$ 21,528
Land Betterments
16,192
16,686
29,920
31,036
46,112
47,722
Buildings, Systems
and Improvements
49,381
49,678
279,109
279,203
328,490
328,881
Infrastructure
84,404
81,392
-
-
84,404
81,392
Machinery and Equip
10,820
8,982
2,395
2,567
13,215
11,549
Furniture and Fixtures
-
1
9
12
9
13
Motor Vehicles
-
-
14,874
15,070
14,874
15,070
Construction in
Progress
4,232
7.538
51,374
32,434
55,606
39,972
Totals
$177,256
5176.502
%386.984
5369.625
06546.127
Additional information on the City's capital assets can be found in Note 7 on pages 42-43 of this
report.
Long Term Debt - At the end of the current fiscal year, the City had a total bonded debt, notes
and capital leases outstanding of $194,935,293. During the 2016-17 fiscal year, the City's total
debt decreased by $11,808,281. In February 2017, the City entered into a capital lease agreement
to fund the purchase of needed Fire apparatus upgrades for the City's Fire department in the
amount of $2.7 million. 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, 2017, 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.
11
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
(continued)
Outstanding Debt at Year -End
(in thousands)
Governmental
Activities
2017 2016
Business -type
Activities
2017 2016
Total
2017 2016
General Obligation Bonds
$ 14,133
$ 16,129
$ -
$ -
$ 14,133
$ 16,129
Combination Tax and
Revenue Bonds
29,435
31,139
46,298
51,323
75,733
82,462
Utility System Revenue
Bonds
-
-
83,099
87,938
83,099
87,938
Capital Lease Payable
2,466
2,857
19,143
16,958
21,609
19,815
Notes Payable
-
-
361
400
361
400
Total
$ 46,034
$ 50,125
$ 148,901
$ 156,619
$ 194,935
$ 206,744
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, 2017, was $.70598 per $100, which means that the City has a tax margin of
$1.54402 per $100, and could generate up to $74,875,350 additional tax revenue a year from the
present assessed valuation of $4,849,376,974 before the limit is reached. The current ratio of
general bonded debt outstanding to the assessed value of all taxable property is 0.90%.
Additional information about the City's long-term debt can be found in Note 14 on pages 57-61
of this report.
Economic Factors and Next Year's Budget and Rates
Total 2017-18 operating revenues, including transfers in from other funds, are budgeted at
$173,599,627, which is an increase of $2,442,178, or +1.43% from the 2016-17 adopted budget.
In the 2017-18 budget, sales taxes in the General Fund are projected to generate $23,379,694, a
decrease of $42,998, or -0.19% from the prior year adopted budget. It should be noted that this
projection was based upon an estimate of 2016-17 actual receipts with a growth rate of zero
percent for budget year 2017-18.
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 $4.94 billion, an increase of $91.4 million, or 1.88% from the prior year.
This is the eighth consecutive year that the property tax base has shown very slight growth or
remained flat. The 2017-18 budget maintained the property tax rate of $0.70598 per $100 of
taxable property that was in effect in the 2016-17 budget. This rate is estimated to generate
12
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2017
(continued)
$517,513 in additional property tax revenue for the General Fund during the 2017-18 fiscal year
and will help provide increases to the City's pay plans that have remained significantly
unchanged for several years. The 2017-18 budget does not include any cost of living adjustment
for the City's pay plans.
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 currently does not allow the flexibility to fund one-time capital improvements in the
2017-18 budget.
The 2017-18 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.
13
\ (rU/C�jl�a )aUS
Basic Financial Statements
EXHIBIT A-1
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2017
Primary Government
Governmental
Business -type
Component
Activities
Activities
Total
Units
Assets
Cash and cash equivalents
$ 21,794,516
$ 25,135,829
$ 46,930,345
$ 19,553,768
Receivables (net):
Taxes and assessments
897,660
-
897,660
-
Customer and trade
-
7,327,091
7,327,091
-
Government agencies
7,117,985
504,499
7,622,484
1,313,630
Other
1,473,118
122,114
1,595,232
-
Internal balances
(9,440,065)
9,440,065
-
Inventory
81,942
1,762,109
1,844,051
Prepaid items
50,590
2,757,862
2,808,452
Other assets
713,694
-
713,694
Restricted assets:
Cash and cash equivalents
5,107,658
25,307,902
30,415,560
-
Capital assets not being depreciated
16,458,757
60,676,592
77,135,349
1,469,797
Capital assets net of accumulated depreciation
160,797,503
326,306,940
487,104,443
699,309
Total assets
205,053,358
459,341,003
664,394,361
23,036,504
Deferred Outflows of Resources
Pension -related
37,477,746
4,761,668
42,239,414
-
Deferred losses on bond refundings
326,523
3,466,845
3,793,368
Total deferred outflows of resources
37,804,269
8,228,513
46,032,782
-
Liabilities
Accounts payable - trade
1,893,302
3,331,173
5,224,475
554,017
Accrued payroll
2,305,965
587,413
2,893,378
-
Accrued interest payable
269,207
775,678
1,044,885
Payable to government agencies
433,723
78,577
512,300
Estimated health claims payable
682,770
-
682,770
Other liabilities
4,800,237
2,852,770
7,653,007
Unearned revenue
37,236
-
37,236
Customer deposits
-
3,102,801
3,102,801
Long-term liabilities:
Portion due or payable within one year
6,465,681
11,674,046
18,139,727
Portion due or payable after one year
48,360,765
142,715,333
191,076,098
Net pension liability
85,664,518
13,501,369
99,165,887
-
Totalliabilities
150,913,404
178,619,160
329,532,564
554,017
Deferred Inflows of Resources
Pension -related
4,136,425
175,508
4,311,933
-
Net Position
Net investment in capital assets
150,776,165
250,154,417
400,930,582
2,169,106
Restricted for:
Perpetual care (nonexpendable)
1,055,177
-
1,055,177
-
Debt service (expendable)
782,311
11,046,973
11,829,284
Capital projects (expendable)
1,509,877
-
1,509,877
Federal grant programs (expendable)
2,150,418
2,150,418
Tourism (expendable)
10
-
10
-
Unrestricted
(68,466,161)
27,573,458
(40,892,703)
20,313,381
Total net position
$ 87,807,797
$ 288,774,848
$ 376,582,645
$ 22,482,487
See accompanying notes to the basic financial statements.
14
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2017
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
Net position - ending
Program Revenues
Operating
Charges for Grants and
Expenses Services Contributions
$ 15,198,841
$ 4,735,471
$ 758,454
25,513,220
420,289
163,634
21,107, 882
36,937
820,844
5,655,633
441,751
118,510
760,506
-
-
6,902,628
1,209,021
5,357,411
8,551,971
14,223
114,675
5,814,947
1,081,910
2,216,468
2,579,284
126,334
2,773,589
4,021,413
892,049
335,000
1,443,552
-
2,276,344
97,549,877
8,957,985
14,934,929
1,827,618
1,120,916
-
1,198,823
884,354
-
2,540,427
432,083
1,701,652
10,216,686
13,394,186
-
33,288,819
43,527,980
816,334
3,738,019
1,538,193
1,321,622
-
51,426,900
64,419,160
1,701,652
$ 148,976,777
$ 73,377,145
$ 16,636,581
$ 10,839,941
$ 17,800
$ 321,161
See accompanying notes to the basic financial statements.
15
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
$ -
$ (9,704,916)
$
$ (9,704,916) $ -
-
(24,929,297)
(24,929,297) -
-
(20,250,101)
(20,250,101) -
-
(5,095,372)
-
(5,095,372) -
-
(760,506)
-
(760,506) -
-
(336,196)
-
(336,196) -
1,032,502
(7,390,571)
-
(7,390,571) -
-
(2,516,569)
-
(2,516,569) -
-
320,639
-
320,639 -
-
(2,794,364)
-
(2,794,364) -
-
832,792
-
832,792 -
1,032,502
(72,624,461)
-
(72,624,461) -
-
-
(706,702)
(706,702) -
-
(314,469)
(314,469) -
-
(406,692)
(406,692) -
-
-
3,177,500
3,177,500 -
396,830
-
10,635,991
10,635,991 -
-
-
2,921,685
2,921,685 -
-
-
(216,571)
(216,571) -
396,830
-
15,090,742
15,090,742 -
$ 1,429,332
(72,624,461)
15,090,742
(57,533,719) -
$ -
-
-
(10,500,980)
35,120,896
-
35,120,896
760,618
22,413,397
-
22,413,397
7,471,132
5,193,721
-
5,193,721
-
1,878,061
-
1,878,061
281,687
-
281,687
-
9,098
-
9,098
-
303,325
415,837
719,162
140,504
1,651,791
22,028
1,673,819
7,843
5,184,169
(5,184,169)
-
-
72,036,145
(4,746,304)
67,289,841
8,380,097
(588,316)
10,344,438
9,756,122
(2,120,883)
88,396,113
278,430,410
366,826,523
24,603,370
$ 87,807,797
$ 288,774,848
$ 376,582,645
$ 22,482,487
EXHIBIT A-3
CITY OF WICHITA FALLS, TEXAS
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2017
Assets
Cash and cash equivalents
Receivables (net):
Taxes and assessments
Other City funds
Government agencies
Other
Inventory
Prepaid items
Other assets
Total assets
Liabilities
Accounts payable
Accrued payroll
Payable to other City funds
Payable to government agencies
Other liabilities
Claims and judgments payable
Unearned revenue
Total liabilities
Deferred inflows of resources
Unavailable revenues
Fund balances
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
Assigned for:
Subsequent year's expenditures
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources
Total
Nonmajor
Governmental
General
Governmental
Funds
$ 12,196,924
$ 7,463,257
$ 19,660,181
727,110
170,550
897,660
4,521,596
-
4,521,596
4,201,023
2,916,962
7,117,985
1,310,526
159,639
1,470,165
81,472
-
81,472
49,840
750
50,590
1,000
712,694
713,694
$ 23,089,491
$ 11,423,852
$ 34,513,343
$ 1,179,130
$ 450,625
$ 1,629,755
2,166,792
95,858
2,262,650
-
2,609,846
2,609,846
338,961
94,762
433,723
3,761,595
1,037,347
4,798,942
11,922
-
11,922
-
37,236
37,236
7,458,400
4,325,674
11,784,074
1,301,623
34,959
1,336,582
131,311 - 131,311
- 1,055,177
1,055,177
- 747,353
747,353
- 1,664,444
1,664,444
- 2,150,418
2,150,418
- 10
10
- 43,785
43,785
- 152,608
152,608
- 2,473,740
2,473,740
1,059,850 -
1,059,850
13,138,307 (1,224,316)
11,913,991
14,329,468 7,063,219
21,392,687
and fund balances $ 23,089,491 $ 11,423,852
See accompanying notes to the basic financial statements.
16
$ 34,513,343
EXHIBIT A-4
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2017
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
$ 21,392,687
$ 316,896,093
144,170,157 172,725,936
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
1,336,582
43,568,073
2,466,589
8,715,174
12,376
269,207 (55,031,419)
In the governmental funds financial statements, refunding losses are expended when
incurred, whereas in the government -wide financial statements the losses are capitalized
and amortized.
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
326,523
84,622,625
(37,110,289)
4,122,881 (51,635,217)
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.
9,574,698
(10,881,993)
$ 87,807,797
17
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, 2017
Total
Nonmajor
Governmental
General
Governmental
Funds
Revenues
Taxes
$ 62,294,827
$ 2,591,310
$ 64,886,137
Charges for services
2,839,067
501,683
3,340,750
Licenses and permits
1,905,507
-
1,905,507
Fines and forfeitures
2,546,559
248,656
2,795,215
Intergovernmental revenue
4,995
10,828,926
10,833,921
Contributions
574,632
4,558,878
5,133,510
Miscellaneous revenue
1,467,231
2,772,724
4,239,955
Total revenues
71,632,818
21,502,177
93,134,995
Expenditures
Administrative services
13,577,525
1,292,681
14,870,206
Police
23,796,876
86,233
23,883,109
Fire
15,704,250
831,794
16,536,044
Parks and recreation
5,173,327
104,217
5,277,544
Accounting/finance
719,865
-
719,865
Community development
2,001,370
4,929,931
6,931,301
Public works
5,003,776
728,551
5,732,327
Health
3,101,416
2,548,497
5,649,913
Traffic and transportation
1,828,435
289,531
2,117,966
Multi -Purpose Events Center
-
3,231,913
3,231,913
Capital outlay
2,698,685
3,507,808
6,206,493
Debt service - principal
-
3,525,000
3,525,000
Debt service - interest and paying agent fees
-
1,591,022
1,591,022
Total expenditures
73,605,525
22,667,178
96,272,703
Excess of revenues over (under) expenditures
(1,972,707)
(1,165,001)
(3,137,708)
Other Financing Sources (Uses)
Transfers in
3,245,079
5,720,691
8,965,770
Transfers out
(1,140,277)
(5,227,397)
(6,367,674)
Total other financing sources (uses)
2,104,802
493,294
2,598,096
Net change in fund balance
132,095
(671,707)
(539,612)
Fund balances - beginning
14,197,373
7,734,926
21,932,299
Fund balances - ending
$ 14,329,468
$ 7,063,219
$ 21,392,687
See accompanying notes to the basic financial statements.
18
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, 2017
Net change in fund balances - total governmental funds (Exhibit A-5)
$ (539,612)
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
$ 7,526,973
Depreciation expense for the year
6,539,999 986,974
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.
(66,379)
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 increased by this amount this year.
241,339
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 2016-17 were:
4,090,311
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
(93,905)
Claims and judgments payable
12,376 (81,529)
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, 2016
283,187
Accrued interest at September 30, 2017
269,207 13,980
Amortization of deferred losses on refundings is only reported in the government -wide financial
statements. Current year amortization was:
(41,244)
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.
(5,183,127)
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.
781,396
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.
(790,425)
Change in net position of governmental activities (Exhibit A-2)
$ (588,316)
See accompanying notes to the basic financial statements.
19
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 NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2017
Enterprise Funds
Nonmajor
Water and Regional Enterprise
Sewer Sanitation Airport Funds
$ 13,168,020
$ 5,724,254 $
24,860,935
-
5,411,710
1,508,489
71,859
-
28,620
19,445
1,019,562
-
37,691
174
44,598,397
7,252,362
Internal
Total Service Funds
- $ 5,884,029 $ 24,776,303 $ 2,493,861
446,967 - 25,307,902 5,107,658
406,892
7,327,091
- 432,640
504,499
-
13,726 33,033
94,824
30,246
- 42,912
1,062,474
699,635
31,379 5,908
75,152
2,683,330
492,072 6,805,414
59,148,245
11,014,730
269,063,204
8,701,345
49,638,557
41,866,017
369,269,123
22,244,733
269,063,204
8,701,345
49,638,557
41,866,017
369,269,123
22,244,733
313,661,601
15,953,707
50,130,629
48,671,431
428,417,368
33,259,463
2,630,573 1,112,050 30,227 426,505 4,199,355
3,466,845 - - - 3,466,845
6,097,418 1,112,050 30,227 426,505 7,666,200
See accompanying notes to the basic financial statements.
20
929,769
929,769
EXHIBIT A-7
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2017
Enterprise Funds
Nonmajor
Water and
Regional
Enterprise
Internal
Sewer
Sanitation
Airport
Funds
Total
Service Funds
Liabilities
Current liabilities:
Accounts payable - trade
2,836,010
78,571
16,151
244,867
3,175,599
419,121
Accrued payroll
316,337
133,179
6,441
63,297
519,254
111,477
Accrued vacation and sick leave
404,827
190,293
10,071
41,006
646,197
168,671
Payable to other City funds
163,055
-
196,114
1,386,771
1,745,940
165,810
Payable to government agencies
-
73,941
1,041
3,595
78,577
-
Estimated health claims payable
-
-
-
-
-
682,770
Other liabilities
2,642,883
7,987
25,000
176,900
2,852,770
1,295
Payable to U.S. Government - current
maturity
40,232
-
-
-
40,232
-
Capital leases - current maturities
489,304
489,304
249,198
Revenue bonds - current maturities
10,076,123
10,076,123
-
Accrued interest - revenue bonds
775,678
-
-
-
775,678
-
Total current liabilities
17,744,449
483,971
254,818
1,916,436
20,399,674
1,798,342
Long-term liabilities:
Payable to U.S. Government, less
current maturities
320,718
-
-
-
320,718
-
Capital leases, less current maturities
15,970,600
15,970,600
2,433,512
Revenue bonds, less current maturities
119,320,943
-
119,320,943
-
Estimated liability for landfill closure and
post -closure care costs
-
4,726,193
4,726,193
Customer deposits
3,102,801
-
-
-
3,102,801
-
Net pension liability
7,458,800
3,153,138
85,706
1,209,326
11,906,970
2,636,293
Total long-term liabilities
146,173,862
7,879,331
85,706
1,209,326
155,348,225
5,069,805
Total liabilities
163,918,311
8,363,302
340,524
3,125,762
175,747,899
6,868,147
Deferred Inflows of Resources
Pension -related
96,959
40,989
1,114
15,720
154,782
34,269
Net Position
Net investment in capital assets
135,761,953
8,701,345
49,638,557
41,866,017
235,967,872
22,244,733
Restricted for debt service
11,046,973
-
-
-
11,046,973
-
Unrestricted
8,934,823
(39,879)
180,661
4,090,437
13,166,042
5,042,083
Total net position
$ 155,743,749
$ 8,661,466
$ 49,819,218
$ 45,956,454
260,180,887
$ 27,286,816
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds
28,593,961
Net position of business type activities
$ 288,774,848
See accompanying notes to the basic financial statements.
21
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EXHIBIT A-8
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
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
assets
Interest expense and paying agent fees
Intergovernmental operating grants
Total nonoperating revenues (expenses)
Income (loss) before contributions and transfers
Capital contributions
Transfers in
Transfers out
Change in net position
Net position - beginning
Net position - ending
Enterprise Funds
Nonmajor
Water and Regional Enterprise
Sewer Sanitation Airport Funds
Total
Internal
Service Funds
$ 43,421,124
$ 13,338,193
$ -
$ 5,013,617
$ 61,772,934
$ 13,090,487
106,856
55,993
1,120,916
1,362,461
2,646,226
670,185
-
-
-
-
-
13,813,107
43,527,980
13,394,186
1,120,916
6,376,078
64,419,160
27,573,779
10,244,065
4,393,121
194,415
2,258,364
17,089,965
3,506,874
2,041,559
307,013
4,509
1,010,792
3,363,873
2,890,619
1,622,099
102,218
41,985
568,866
2,335,168
3,137,240
4,953,014
4,287,693
196,249
875,761
10,312,717
306,862
1,018,419
98,091
29,330
115,381
1,261,221
12,238,158
1,764,764
486,953
208,001
177,577
2,637,295
2,198,207
8,506,927
285,654
1,290,533
1,069,080
11,152,194
4,450,210
30,150,847
9,960,743
1,965,022
6,075,821
48,152,433
28,728,170
13,377,133
3,433,443
(844,106)
300,257
16,266,727
(1,154,391)
291,615
57,175
4,363
62,684
415,837
577,228
(124,974)
-
-
-
(124,974)
142,119
(3,966,161)
-
(3,966,161)
(3,912)
-
-
1,701,652
1,701,652
-
(3,799,520)
57,175
4,363
1,764,336
(1,973,646)
715,435
9,577,613
3,490,618
(839,743)
2,064,593
14,293,081
(438,956)
396,830
-
-
-
396,830
-
688,851
2,141,977
159,798
2,990,626
2,057,792
(1,879,250)
(3,359,564)
(672,329)
(2,538,767)
(8,449,910)
(514,058)
8,784,044
131,054
629,905
(314,376)
9,230,627
1,104,778
146,959,701
8,530,412
49,189,315
46,270,830
26,182,038
$ 155,743,745
$ 8,661,466
$49,819,220
$ 45,956,454
$ 27,286,816
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.
22
1,113,811
$ 10,344,438
EXHIBIT A-9
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
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
$ 44,161,919
$ 13,535,304
$ 1,134,735
$ 6,413,492
$ 65,245,450
$ 4,907,240
Received from interfund charges
-
-
-
-
22,267,108
Other operating receipts
775,632
Payments to suppliers
(11,137,353)
(2,248,531)
(349,718)
(2,172,319)
(15,907,921)
(20,819,591)
Payments for interfund charges
(3,653,669)
(4,588,576)
(171,250)
(1,049,867)
(9,463,362)
(623,137)
Payments to employees
(7,033,880)
(2,973,471)
(156,105)
(1,744,433)
(11,907,889)
(2,450,423)
Net cash provided (used) by operating activities
22,337,017
3,724,726
457,662
1,446,873
27,966,278
4,056,829
Cash flows from noncapital financing activities:
Intergovernmental operating grants
-
-
-
1,700,166
1,700,166
-
Interfund loans received (repaid)
9,300
(253,536)
(88,436)
(332,672)
(563,132)
Transfers in from other funds
688,851
2,141,977
159,798
2,990,626
2,057,792
Transfers out to other funds
(1,879,250)
(3,359,564)
(672,329)
(2,538,767)
(8,449,910)
(514,058)
Net cash provided (used) by noncapital financing
activities
(1,181,099)
(3,359,564)
1,216,112
(767,239)
(4,091,790)
980,602
Cash flows from capital and related financing activities:
Capital contributions
-
88,907
88,907
-
Acquisition and construction of capital assets
(23,857,489)
(252,513)
(1,925,379)
(1,028,531)
(27,063,912)
(3,992,365)
Proceeds from sale of capital assets
177,406
Principal paid on long-term debt
(7,872,385)
(7,872,385)
(249,198)
Interest and fees paid on long-term debt
(5,934,589)
(5,934,589)
(3,912)
Net cash provided (used) for capital and
related financing activities
(37,664,463)
(252,513)
(1,925,379)
(939,624)
(40,781,979)
(4,068,069)
Cash flows from investing activities:
Interest on investments
291,615
57,175
4,363
62,684
415,837
577,228
Net cash provided (used) by investing activities
291,615
57,175
4,363
62,684
415,837
577,228
Net Increase (Decrease) in Cash and Cash Equivalents
(16,216,930)
169,824
(247,242)
(197,306)
(16,491,654)
1,546,590
Cash and Cash Equivalents - Beginning
54,245,885
5,554,430
694,209
6,081,335
66,575,859
6,054,929
Cash and Cash Equivalents - Ending
$ 38,028,955
$ 5,724,254
$ 446,967
$ 5,884,029
$ 50,084,205
$ 7,601,519
Reconciliation of cash and cash equivalents on the
balance sheet to the statement of cash flows:
Cash and cash equivalents
$ 13,168,020
$ 5,724,254
$ -
$ 5,884,029
$ 24,776,303
$ 2,493,861
Restricted assets - cash and cash equivalents
24,860,935
-
446,967
-
25,307,902
5,107,658
Total cash and cash equivalents at end of year
$ 38,028,955
$ 5,724,254
$ 446,967
$ 5,884,029
$ 50,084,205
$ 7,601,519
See accompanying notes to the basic financial statements.
23
EXHIBIT A-9
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation and amortization
Customer deposits received
(Increase) decrease in assets and deferred
outflows:
Receivables:
Customer and trade
Other
Inventory
Prepaid items
Deferred outflows - pension -related
Increase (decrease) in liabilities and deferred
inflows:
Accounts payable - trade
Accrued payroll
Accrued vacation and sick leave
Estimated health claims payable
Payable to government agencies
Other liabilities
Estimated liability for landfill closure
Net pension liability
Deferred inflows - pension -related
Total adjustments
Net cash provided (used) by
operating activities
Noncash capital and financing activities:
Capital assets received from developers
Enterprise Funds
Nonmajor
Water and Regional Enterprise
Sewer Sanitation Airport Funds
Total
Internal
Service Funds
$ 13,377,133 $ 3,433,443 $ (844,106) $ 300,257 $ 16,266,727 $ (1,154,391)
8,506,927
285,654
1,290,533
1,069,080
11,152,194
4,450,210
86,190
-
-
-
86,190
-
521,970
70,268
-
25,645
617,883
-
25,779
70,850
13,819
11,769
122,217
378,171
15,810
-
-
50,026
65,836
(22,403)
(37,344)
(58)
2,359
(3,937)
(38,980)
109
50,613
13,302
(217)
42,263
105,961
23,479
(305,040)
(466,161)
(8,259)
175,858
(603,602)
196,618
(13,996)
(8,864)
(1,790)
1,356
(23,294)
2,762
(1,434)
9,685
570
4,458
13,279
1,215
-
-
-
-
102,770
(6,098)
(180)
937
(5,341)
-
(159,636)
7,987
(340)
(182,326)
(334,315)
(1,970)
-
178,562
-
178,562
-
339,610
165,061
6,023
(35,125)
475,569
105,194
(69,565)
(28,905)
(750)
(13,388)
(112,608)
(24,935)
8,959,884
291,283
1,301,768
1,146,616
11,699,551
5,211,220
$ 22,337,017
$ 3,724,726
$ 457,662
$ 1,446,873
$ 27,966,278
$ 4,056,829
$ 396,830
$ -
$ -
$ -
$ 396,830
$ -
See accompanying notes to the basic financial statements.
24
EXHIBIT A-10
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
Assets
Cash and cash equivalents
Liabilities
Other liabilities
SEPTEMBER 30, 2017
See accompanying notes to the basic financial statements.
Agency
Fund
127,799
127,799
25
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2017
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. Reporting 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.
26
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
The Wichita Falls 4B Sales Tax Corporation. The Wichita Falls 4B 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 413 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.
27
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
Wichita Falls Reinvestment Zone #4. On March 17, 2015, 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 #4 (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 246 acres and includes a significant portion of the
downtown area. 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, 2015, 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, 2035. 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 #4 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.
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 Deputy City Manager at 1300 7th Street, Wichita Falls, Texas.
Excluded From the Reoortina Entity
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
Director of Finance 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.
W?
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
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.
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 oresentation
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.
29
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
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.
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.
30
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
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 expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the 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.
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.
31
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
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.
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 via the
purchases method.
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 acquisition value at the time received.
32
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
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.
For the fiscal year ended September 30, 2017, the City's business -type activities incurred
a total of $3,966,161 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 inflows 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 ($745,096)
and municipal court fines receivable ($591,486) 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 position. Long-term debt and other obligations financed
by proprietary funds are reported as liabilities in the appropriate funds.
33
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
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.
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 Deputy City Manager 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.
34
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
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.
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 Management
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.
35
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
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.
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, 2017 is based on management's
estimate of probable losses in the amount of $24,298. 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. $11,922 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, 2015 to September 30, 2017:
Health Workers'
Care Compensation
Liability balance, October 1, 2015
Incurred claims/adjustments
Claim payments
Liability balance, September 30, 2016
Incurred claims/adjustments
Claim payments
Liability balance, September 30, 2017
F. Pension Plan
$ 930,000 $ 63,177
11,493,136 578,447
( 11.843.136) ( 578,447)
580,000 63,177
11,458,966 719,069
(11,356,196) ( 757,948)
$ 682.770 $ 24.298
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.
36
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 2 - COMPLIANCE AND ACCOUNTABILITY
Finance -Related Leqal and Contractual Provisions
The City had no violations of finance -related legal and contractual provisions for the year ended
September 30, 2017.
Deficit Fund Balances — Individual Funds
The Airport Improvement Grant Fund, a special revenue fund, and the Airport Construction Fund, a
capital projects fund, had deficit fund balances of $953,338 and $270,978, respectively, as of
September 30, 2017. The City plans for these deficits to be alleviated within a year.
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, 2017, the total amount of the City's
demand and time deposits per the general ledger was $1,738,355, and the total amount per the
City's September 30, 2017 bank statements was $2,744,491. 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, 2017
are as follows:
Fair Value/
Average
Weighted Average
Carrying
Credit Quality/
Months to
Tvoes of Investments
Amount
Cost
Ratinas
Maturitv
Primary Government:
TexPool
$ 11,566,445
$ 11,566,445
Not rated
1.00
LOGIC
39,216,851
39,216,851
Not rated
1.00
Money market accounts
23,365,399
23,365.399
Not rated
1.00
Total primary government
investments
74,148,695
74.148.695
Component Units:
TexPool
18,831.728
18,831.728
Not rated
1.00
Total component unit
investments
18.831.728
18.831.728
Total investments
$92 980 423
$92,980,423
37
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 3 - DEPOSITS AND INVESTMENTS (CONTD.)
TexPool is a local government investment pool organized in conformity with the Interlocal
Cooperation Act, Chapter 791 of the Texas Government Code, and operates under the Public
Funds Investment Act, Chapter 2256 of the Texas Government Code. The State Comptroller of
Public Accounts is the sole officer, director, and shareholder of the Texas Treasury Safekeeping
Trust Company, which is authorized to operate TexPool. Pursuant to the TexPool Participation
Agreement, administrative and investment services to TexPool are provided by Federated
Investors, Inc., under an agreement with the Comptroller, acting on behalf of the Trust Company.
As required by the Public Funds Investment Act, the Advisory Board is composed equally of
participants in TexPool and other persons who do not have a business relationship with TexPool
who are qualified to advise TexPool. TexPool is comprised of two investment alternatives: TexPool
(which the City is invested in) and TexPool Prime. Both funds seek to maintain a net asset value of
$1.00 per unit and are rated AAAm by Standard and Poor's.
Local Government Investment Cooperative (LOGIC) was organized in conformity with the
Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds
Investment Act, Chapter 2256 of the Texas Government Code, and operates as a public funds
investment pool under the Public Funds Investment Act. LOGIC is organized and existing as a
business trust under the laws of the State of Texas with all Participant funds and all investment
assets held and managed in trust by a Board of Trustees for the benefit of the Participants. The
Board of Trustees is LOGIC's governing body and is comprised of employees, officers or elected
officials of Participant Government Entities or individuals who do not have a business relationship
with the Pool and are qualified to advise it. A maximum of two advisory board members represent
the Co -Administrators of the Pool. LOGIC seeks to maintain a net asset value of $1.00 per unit
and are rated AAAm by Standard and Poor's.
The City categorizes its fair value measurements with the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs. Investments that are measured at fair value using the net asset value per
share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy
below. In instances where inputs used to measure fair value fall into different levels in the above
fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest
level input that is significant to the valuation. The City's assessment of the significance of
particular inputs to these fair value measurements requires judgement and considers factors
specific to each asset or liability.
The City values its certificates of deposit and money market accounts using Level 2 inputs.
TexPool and LOGIC are valued at net asset value per unit/share.
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.
38
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 3 - DEPOSITS AND INVESTMENTS (CONTD.)
b. Custodial Credit Risk
Deposits are exposed to custodial credit risk if they are not covered by depository
insurance and the deposits are uncollateral ized, 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.
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, 2017 was $.70598 per $100 which means that the City has a tax margin of
$1.54402 per $100, and could raise up to $74,875,350 additional tax revenue a year from the
present assessed valuation of $4,849,376,974 before the limit is reached.
39
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 5 - RECEIVABLES
Receivables at September 30, 2017 consist of the following:
General
Receivables:
Taxes and assessments
$ 1,384,654
Customer and trade
-
Other City funds
4,521,599
Government agencies
4,201,023
Other
1,310,523
Gross receivables
11,417,799
Less: Allowance for
uncollectible accounts
( 657,544
Net total receivables
Nonmajor
Nonmajor
Totals
Totals
Governmental
Water and
Regional
Enterprise
Internal
Primary
Component
Reporting
Funds
Sewer
Sanitation
Airport
Funds
Service
Government
Units
Entitv
$ 190,840
$ -
$ -
$
$ -
$
$ 1,575,494
$
$ 1,575,494
-
7,982,377
2,339,708
568,988
10,891,073
10,891,073
-
-
-
-
4,521,599
4,521,599
2,916,962
71,859
-
432,640
7,622,484
1,313,630
8,936,114
159,639
28,620
19.445
13,726
33,033
30,246
1.595.232
-
1.595.232
3,267,441
8,082,856
2,359,153
13,726
1,034,661
30,246
26,205,882
1,313,630
27,519,512
( 20,290)
( 2.570.667)
( 831,219)
( 162,096)
-
( 4.241.816).
-
( 4.241.8161
$ 3 247 151
SS .512 1£i4
9;1.527 934
$1 Q
� 5
$� 246
0.21,964,066
S 1.313.630
$2377 696
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 $1,427,686 total delinquent property taxes within a year. This amount is similar to the amounts collected in previous
years.
40
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
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 $ 11,046,973
For Capital Improvements:
Cash and cash equivalents 13.813.962
Total $ 24.860.935
Regional Airport restricted assets are comprised of the following:
For Passenger Facility Charges:
Cash and cash equivalents $ 14,947
For Customer Facility Charges:
Cash and cash equivalents 432.020
Total $446.967
Internal Service Fund restricted assets are comprised of the following:
For Employee Insurance:
Cash and cash equivalents $ 5.107.658
41
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 7 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2017 was as follows:
Balance Balance
Governmental activities: October 1, September 30,
2016 Increases Decreases 2017
Capital assets not being depreciated:
Land $ 12,224,594 $ 2,219 $ - $ 12,226,813
Construction in progress 7,537,982 2,548,550 5,854,587 4.231,944
Total capital assets not being depreciated 19,762,576 2,550,769 5,854,587 16,458,757
Capital assets being depreciated
Land betterments
23,422,644
2,400
-
23,425,044
Buildings, systems and improvements
74,143,480
1,420,143
27,536
75,536,087
Infrastructure
175,088,757
6,029,224
602,810
180,515,171
Machinery and equipment
24,153,016
3,868,194
919,965
27,101,245
Furniture and fixtures
152,949
-
-
152,949
Total capital assets being depreciated
296,960,846
11,319,961
1,550,311
306,730,496
Less accumulated depreciation for
Land betterments
6,736,459
496,317
-
7,232,776
Buildings, systems and improvements
24,464,922
1,711,884
22,023
26,154,783
Infrastructure
93,696,313
2,984,324
569,232
96,111,405
Machinery and equipment
15,171,246
1,997,862
887,794
16,281,314
Furniture and fixtures
152,250
465
-
152,715
Total accumulated depreciation
140.221,190
7.190,852
1,479,049
145,932,993
Total capital assets being depreciated, net
Governmental activities capital
assets, net $176 502,232
Depreciation expense was charged to functions as follows
Governmental activities:
Administrative services
Police
Fire
Parks and recreation
Accounting/finance
Community development
Public works
Health
Traffic and transportation
Multi -Purpose Events Center
Total governmental depreciation
156,739,656 4,129,109 71,262 160,797,503
$ 1,269,897
1,172,043
204,976
238,353
47,260
5,711
2,640,976
160,805
419,575
1,031,256
$ 7.190.852
42
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 7 - CAPITAL ASSETS (CONTD.)
Balance
Balance
Business -type activities:
October 1,
September 30,
2016
Increases Decreases 2017
Capital assets not being depreciated:
Land
$ 9,303,195
$ - $ - $ 9,303,195
Construction in progress
32,433,830
28.203.644 9,264,077 51,373.397
Total capital assets not being depreciated
41,737,025
28,203,644 9.264,077 60.676,592
Capital assets being depreciated
Land betterments
47,794,622
148,878
-
47,943,500
Buildings, systems and improvements
402,933,435
9,887,180
704,581
412,116,034
Machinery and equipment
9,616,100
353,490
286,394
9,683,196
Furniture and fixtures
16,943
-
-
16,943
Motor vehicles
55.426.970
3,380,588
1,987,100
56.820.458
Total capital assets being depreciated
515.788.070
13,770,136
2,978,075
526,580.131
Less accumulated depreciation for:
Land betterments
16,758,368
1,265,026
-
18,023,394
Buildings, systems and improvements
123,730,065
9,620,052
342,995
133,007,122
Machinery and equipment
7,049,314
518,280
279,074
7,288,520
Furniture and fixtures
5,397
2,566
-
7,963
Motor vehicles
40,357,259
3,545,632
1,956,699
41.946.192
Total accumulated depreciation
187,900,403
14,951,556
2.578.768
200.273.191
Total capital assets being depreciated, net
327.887.667
( 1.181.420)
399.307
326.306.940
Business -type activities capital
assets, net $369 624,692 $27 02Z224 $9 663 384 $386 983 532
Depreciation expense was charged to programs as follows:
Business -type activities:
Regional Airport
$ 1,294,739
Kickapoo Airport
431,350
Transit
460,515
Sanitation
2,862,077
Water and sewer
9,267,040
Stormwater drainage
384,252
Waterpark
251,583
Total business -type depreciation $14.951.556
43
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
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,
2017. 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
$47,756,261 $51,409,626 $99,165,887
16,842,701 25,396,713
620,797 3,691,136
6,966,866 5,663,845
42,239,414
4,311,933
12,630,711
The City participates as one of 872 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.
44
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 8 - PENSION PLANS (CONTD.)
Employees Covered by Benefit Terms
At the December 31, 2016 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 638
Inactive employees entitled to but not yet receiving benefits 400
Active employees 1,009
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 11.92% and 12.54% in calendar years
2016 and 2017, respectively. The City's contributions to TMRS for the year ended September
30, 2017, were $5,521,772, and were equal to the required contributions.
Net Pension Liabilitv
The City's Net Pension Liability (NPL) was measured as of December 31, 2016, 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, 2016 actuarial valuation was determined using
the following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.0% per year
Investment rate of return 6.75%, 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 100.0%. 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.
45
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 8 - PENSION PLANS (CONTD.)
Actuarial assumptions used in the December 31, 2016, valuation were developed primarily
from an actuarial investigation of the experience of TMRS over the four-year period from
December 31, 2010 through December 31, 2014, first used in the December 31, 2015
valuation. The post -retirement mortality assumption for healthy annuitants and annuity
purchase rates are 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.
The long-term expected rate of return on pension plan investments is 6.75%. 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
Tarqet Allocation
Rate of Return (Arithmetic)
Domestic Equity
17.5%
4.80%
International Equity
17.5%
6.05%
Core Fixed Income
10.0%
1.50%
Non -Core Fixed Income
20.0%
3.50%
Real Return
10.0%
1.75%
Real Estate
10.0%
5.25%
Absolute Return
10.0%
4.25%
Private Equity
5.0%
8.50%
Total
Discount Rate
1 .0°
The discount rate used to measure the Total Pension Liability was 6.75%. 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.
i,
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
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, 2015
$243,852,508
$197,324,331
$46,528,177
Changes for the year:
Service cost
2,466,531
-
21466,531
Interest on total pension liability
16,126,720
-
16,126,720
Change of benefit terms
-
-
-
Difference between expected and
actual experience
3,641,511
-
3,641,511
Change of assumptions
-
-
-
Contributions — employer
-
5,339,437
( 5,339,437)
Contributions — employee
-
2,494,525
( 2,494,525)
Net investment income
-
13,331,438
( 13,331,438)
Benefit payments, including refunds
of employee contributions
( 12,342,806)
( 12,342,806)
-
Administrative expense
-
( 150,608)
150,608
Other changes
-
( 8.114)
8.114
Balances as of December 31, 2016
$253,744,464
$205,988 203
$47,756 261
Sensitivity Analysis
The following presents the net pension liability of the City, calculated using the discount rate of
6.75%, 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 (5.75%) or 1 percentage point higher
(7.75%) than the current rate.
Net pension liability
1 % Current 1 %
Decrease Discount Rate Increase
5.75% 6.75% 7.75%
$81,590,888 $47,756,261 $19,866,097
Pension Exoense, Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended September 30, 2017, the City recognized pension expense of $6,966,866
related to its participation in TMRS.
47
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 8 - PENSION PLANS (CONTD.)
At September 30, 2017, the City reported deferred outflows of resources and deferred inflows of
resources related to TMRS from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual experience $ 2,871,206 $ 611,160
Net difference in assumptions 678,365 -
Net difference between projected and
actual earnings 9,264,808 9,637
Contributions made subsequent to
measurement date 4,028,322 -
Total $16.842.701 $ 620.797
$4,028,322 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, 2017. 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:
2017
$ 4,028,830
2018
4,372,007
2019
3,646,697
2020
146,048
2021
-
Thereafter
-
Total
$ 12.193.582
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 Deputy City Manager at 1300 7th Street, Wichita Falls, Texas.
EN
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 8 - PENSION PLANS (CONTD.)
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 2.50% 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.
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,
2016.
Employees Covered by Benefit Terms
At the December 31, 2016 measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 124
Inactive employees entitled to but not yet receiving benefits 2
Active employees 157
Contributions
The contribution rate for the firefighters is 12% (13% effective April 20, 2016) and the City
contributes 12%. 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, 2017, were $1,324,468,
and were equal to the required contributions.
Net Pension Liabilitv
The City's Net Pension Liability (NPL) was measured as of December 31, 2016, and the Total
Pension Liability used to calculate the Net Pension Liability was determined by an actuarial
valuation as of that date.
49
Note 8 -
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
PENSION PLANS (CONTD.)
Actuarial Assumptions
The Total Pension Liability in the December 31, 2016, 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 5.81%, net of pension plan investment expense, including
inflation
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 2024
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, 2015 valuation.
The long-term expected rate of return on pension plan investments is 5.81 %. 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
Tarqet Allocation
Rate of Return (Arithmetic)
Domestic Equity
35.00%
7.50%
International Equity
15.00%
8.50%
Domestic Fixed Income
25.00%
2.50%
Global Fixed Income
5.00%
3.50%
Real Estate
10.00%
4.50%
Alternative
10.00%
5.00%
Total
100.00%
Discount Rate
The discount rate used to measure the Total Pension Liability was 5.81 %. The projection of
cash flows used to determine the discount rate assumed that plan member contributions will
be made at the current contribution rate and that City contributions will be made at rates equal
to the difference between actuarially determined contribution rates and the plan member rate.
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 plan members. 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.
50
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
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, 2015
$73,558,655
$46,396,915
$27,161,740
Changes for the year:
Service cost
1,560,472
-
1,560,472
Interest on total pension liability
5,827,804
-
5,827,804
Change of benefit terms
-
-
-
Difference between expected and
actual experience
( 2,151,748)
-
( 2,151,748)
Change of assumptions
24,107,651
-
24,107,651
Contributions — employer
-
1,283,410
( 1,283,410)
Contributions — employee
-
1,350,904
( 1,350,904)
Net investment income
-
2,577,572
( 2,577,572)
Benefit payments, including refunds
of employee contributions
( 4,543,166)
( 4,543,166)
-
Administrative expense
-
( 115,843)
115,843
Other changes
-
250
( 250)
Balances as of December 31, 2016
$98,359,668
$46.950.042
$51,409,626
Sensitivity Analysis
The following presents the net pension liability of the City, calculated using the discount rate of
5.81 %, 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 (4.81 %) or 1 percentage point higher
(6.81 %) than the current rate.
Net pension liability
1 % Current 1 %
Decrease Discount Rate Increase
4.81 % 5.81 % 6.81 %
$73,018,381 $51,409,626 $46,020,944
Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended September 30, 2017, the City recognized pension expense of $5,663,845
related to the Wichita Falls Firemen's Relief and Retirement Fund.
51
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 8 - PENSION PLANS (CONTD.)
At September 30, 2017, 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
$ - $3,337,106
21,429,024 354,030
2,956,617 -
1.011,072 -
$25.396.713 $3.691.136
$1,011,072 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, 2017. 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:
2017
$ 3,141,650
2018
3,141,650
2019
3,080,162
2020
2,416,467
2021
2,205,828
Thereafter
6,708,748
Total
$20.694.505
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.
52
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 9 - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONTD.)
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. Spouses 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.
Dental Coverage
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 retirees 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.
53
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 9 - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONTD.)
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, 2017 is as follows:
Annual Required Contribution
$1,742,270
Interest on OPEB obligation
6,565
Adjustment to ARC
( 9,869)
Annual OPEB cost (expense) end of year
1,738,966
Net estimated employer contributions
( 1,742,270)
Increase (decrease) in net OPEB obligation
( 3,304)
Net OPEB obligation — beginning of year
92,470
Net OPEB obligation — end of year
$ 89.166
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, 2017 and the preceding two
fiscal years were as follows:
Employer
Annual
Amount
Percentage
Net OPEB
Fiscal Year Ended
OPEB Cost
Contributed
Contributed
Obliqation
September 30, 2015
$2,478,677
$2,513,506
101.4%
$ 95,121
September 30, 2016
1,688,873
1,691,524
100.2%
92,470
September 30, 2017
1,738,966
1,742,270
100.2%
89,166
Schedule of Actuarial Liabilities and Fundinq Status
Actuarial Valuation Date
12/31/16
Actuarial Value of Assets
$ 3,803,317
Actuarial Accrued Liabilities
$21,052,192
Unfunded Actuarial Accrued Liability (UAAL)
$17,248,875
Funded Ratio
18.1 %
Annual Covered Payroll
$52,607,052
UAAL as a Percentage of Annual Covered Payroll
32.8%
54
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 9 - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONTD.)
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
7.10%, net of expenses
Individual entry -age
Level as a percentage of employee payroll
15-year closed amortization
3.0% per annum
Initial rate of 7.30% 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.
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, 2017 was
$46,967. The lease payment increases by 3% per year with a final lease payment of $157,805 in
2059.
55
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
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, 2017.
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, 2017:
Year ending September 30:
2018
$ 156,138
2019
143,401
2020
116,716
2021
115,234
2022
100,732
2023-2027
304,413
2028-2032
345,165
2033-2037
400,140
2038-2042
463,874
2043-2047
537,755
2048-2052
623,706
2053-2057
722,699
2058-2059
157,805
Total minimum payments required $4.187.778
The total rental expenses for all operating leases for the year ended September 30, 2017 was
$154,259. There were no contingent rentals during the year ended September 30, 2017.
Note 13 - 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 $4,658,005 as of September 30, 2017, which is based on 21 % usage of the
landfill. The City will recognize the remaining estimated cost of closure and postclosure care of
$17,301,160 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 $68,188 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.
56
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 14 - LONG-TERM LIABILITIES
Long-term liabilities transactions for the year ended September 30, 2017 are summarized as
follows:
Balance at
Balance at
October 1,
Retired and
September 30,
Due Within
2016 Issued
Transferred (1)
2017
One Year
Governmental Activities:
General obligation bonds
$ 16,129,132 $
$ 1,996,159
$ 14,132,973
$ 2,018,435
Combination tax and revenue bonds
31,138,675
1,703,575
29,435,100
1,753,129
Accrued vacation and sick
leave payable
8,675,818 2,471,480
2,379,812
8,767,486
2,375,000
Capital lease payable
2,857,166 -
390,577
2,466,589
307,205
Claims and judgments payable
63.177 719.069
757.948
24.298
11,912
Total governmental activities
58,863,968 3.190.549
7.228.071
54,826.446
6.465,681
Business-tvoe Activities:
Utility system revenue bonds,
net of premium (discount)
87,938,263 -
4,839,290
83,098,973
4,948,031
Combination tax and revenue bonds
51,322,900 -
5,024,808
46,298,092
5,128,092
Accrued vacation and sick
leave payable
751,875 644,330
633,649
762,556
625,000
Note payable
399,915 -
38,964
360,951
40,232
Capital leases payable
16,957,523 2,682,710
497,618
19,142,615
932,691
Landfill closure, post -closure costs
4,547.631 178.562
-
4.726.193
-
Total business -type activities
161,918.107 3.505.602
11.034.329
154.389,380
11,674.046
Total long-term liabilities
S220 792 075 $6,696,151
S18,262 400
$ 02 q 15,826
$18,139,727
(1) Includes bond premium
amortization of $161,159 related
to the general obligation
bonds,
$13,575 related to combination
tax and revenue bonds
(governmental
activities), $2,204,290
related to revenue bonds,
and $74,808 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, 2017, including net unamortized premium on the 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
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 9/30/17
$ 4,365,000 $ 1,855,000
44,212
3,740,000 340,000
57
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2017
Note 14 - LONG-TERM LIABILITIES (CONTD.)
Range of
Final
Annual
Interest
Maturity
Serial
Rates
Date
Pavments
General Obligation Refunding 2.00% -
9/01/26
$200,000 to
Bonds, Series 2015A 5.00%
$1,105,000
Plus bond premium
General Obligation Refunding
0.73% -
Bonds, Series 2015B
3.48%
Total General Obligation Bonds
Combination Tax and Revenue Bonds:
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 Revenue
0.00% -
Certificates of Obligation, Series 2015
2.12%
Total Combination Tax and Revenue Bonds
Revenue Bonds:
Water & Sewer System Revenue 2.00% -
Refunding Bonds, Series 2016 5.00%
Plus bond premium
Total Revenue Bonds
Total All Bonds
9/01/26 $110,000 to
$310,000
10/01/29 $340,000 to
$780,000
2/01/25 $165,000 to
$375,000
8/01/18 $170,000 to
$3,600,000
9/01/31 $135,000 to
$220, 000
9/01/33 $530,000 to
$1,315,000
9/01/33 $505,000 to
$905,000
3/01/45 $890,000 to
$1,425,000
8/01 /27 $2,435,000 to
$9,705,000
Bonds
Authorized
9,650,000
2,885,000
Bonds
Outstanding
at 9/30/17
8,640,000
733,761
2,520,000
14,132,973
10,820,000 7,415,000
3,930,000 2,495,000
9,830,000
3,600,000
38,092
3,200,000
2,500,000
56,559
19, 875,000
16,905,000
63,541
13, 000, 000
10, 965, 000
33,545,000 31,695,000
75,733,192
74,005,000 71,370,000
11,728,973
83,098,973
S 172,965 138
58
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 14 - LONG-TERM LIABILITIES (CONT-D.)
Aggregate maturities of the long-term debt (principal and interest) for the years subsequent to September 30, 2017 are as follows:
Combination Tax and
Year Ending
General Obligation Bonds
Revenue
Bonds
Revenue Bonds
Notes Pavable
Caoital Lease Pavable
Total
Seotember 30,,
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
2018
$ 2,018,435
$ 304,800
$ 6,881,222
$ 2,051,014
$ 4,948,031
$ 1,472,219
$ 40,232
$ 11,742
$1,240,615
$ 622,169
$ 15,128,535
$ 4,461,944
2019
1,717,018
264,785
3,302,670
1,877,833
8,893,852
1,412,148
41,541
10,433
1,237,471
610,702
15,192,552
4,175,901
2020
1,745,507
240,073
3,392,095
1,796,019
9,042,086
1,268,164
42,892
9,082
1,312,194
578,622
15,534,774
3,891,960
2021
1,771,429
203,382
3,486,501
1,706,905
9,200,108
1,116,892
44,287
7,686
1,440,101
542,877
15,942,426
3,577,742
2022
1,314,759
169,091
3,575,762
1,610,597
9,352,334
957,916
45,728
6,246
1,522,796
503,993
15,811,379
3,247,843
2023-2027
5,565,825
376,814
18,687,012
6,432,028
41,662,562
2,142,688
146,270
9,617
5,385,601
1,941,311
71,447,270
10,902,458
2028-2032
-
-
17,722,351
3,597,975
-
-
-
-
4,261,874
1,254,371
21,984,225
4,852,346
2033-2037
8,065,579
1,472,115
5,208,552
346,805
13,274,131
1,818,920
2038-2042
6,430,000
781,776
-
-
6,430,000
781,776
2043-2045
4.190.000
134.339
4.190.000
134.339
Totals $14 132 973 $1.558,945 $75 733 192 $21-460,601 $83 Q98 973 $ 8 370,027 $360 950 $ 54,806 $21,609,204 $6 400-850 $194,935,292 $37 8.45 229
59
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 14 - 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. These bonds are serviced by the
Debt Service Fund with an apportionment of the ad valorem tax levy. At September 30, 2017, this
fund had a fund balance of $673,348.
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 2010 and 2011 Certificates will be serviced by the Debt Service Fund by
contributions from the Wichita Falls 4B Economic Development Corporation. The Series 2016
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, 2017
is classified as follows:
Long-term $ 320,718
Current portion 40,232
Total $ 360.950
Capital Leases Pavable
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.
.11
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 14 - LONG-TERM LIABILITIES (CONTD.)
The City entered into a capital lease agreement in 2016 to finance the replacement of all of the
City's water meters. The total amount of the capital lease was $16,506,103. As the project is not
yet completed, these assets are currently listed under "Construction in progress" in the Water and
Sewer Fund and in Business -type Activities. The lease carries an interest rate of 3.23% and is for
a period of 20 years, with final payment due in fiscal year 2036.
The City issued a capital lease in 2017 for the purchase of fire department equipment in the
amount of $2,682,710. The equipment will not be delivered to the City until after September 30,
2017. Therefore, this amount is recorded as a prepaid item in the Fleet Maintenance Internal
Service Fund at September 30, 2017. 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.
Note 15 - INTERFUND BALANCES
Due To Fund
Due From Fund
Amount
Purpose
General Fund
Nonmajor Governmental Funds
$ 2,609,846
Short-term loan
General Fund
Water and Sewer Fund
163,055
Short-term loan
General Fund
Regional Airport Fund
196,114
Short-term loan
General Fund
Nonmajor Enterprise Funds
1,386,771
Short-term loan
General Fund
Internal Service Funds
165.810
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, 2017 were as follows:
Transfers From
General Fund
General Fund
General Fund
General Fund
General Fund
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
Regional Airport Fund
Nonmajor Enterprise Funds
Nonmajor Enterprise Funds
Nonmajor Enterprise Funds
Nonmajor Enterprise Funds
Internal Service Funds
Internal Service Funds
Transfers To
Amount
Reason
Nonmajor Governmental Funds
$ 163,917
Supplement operating grants
Nonmajor Governmental Funds
554,872
Supplement operating deficits
Regional Airport Fund
166,963
Supplement operating deficits
Nonmajor Enterprise Funds
159,798
Supplement operating deficits
Internal Service Funds
94,727
Supplement operating deficits
Nonmajor Governmental Funds
1,057,942
Fund debt service payment
Nonmajor Governmental Funds
1,728,558
Fund operating deficits
Nonmajor Governmental Funds
435,828
Fund capital projects
Regional Airport Fund
1,925,379
Supplement capital projects
Internal Service Funds
79,690
Fund capital projects
General Fund
1,365,675
Administrative overhead
Nonmajor Governmental Funds
500,000
Fund debt service payment
Internal Service Funds
13,575
Fund capital projects
General Fund
1,567,404
Administrative overhead
Internal Service Funds
1,792,160
Purchase capital assets
Nonmajor Governmental Funds
672,329
Fund debt service payment
Nonmajor Governmental Funds
405,186
Fund debt service payment
Water and Sewer Fund
688,851
Fund debt service payment
Regional Airport Fund
49,635
Supplement operating grant
Internal Service Funds
77,640
Purchase capital assets
General Fund
312,000
Administrative overhead
Nonmajor Governmental Funds
202.058
Administrative overhead
Total
$14 014 187
61
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 15 - INTERFUND BALANCES (CONTD.)
Additionally, the Nonmajor Enterprise Funds transferred $1,317,455 in capital assets to the
Governmental Activities. This transfer is not reported on the Governmental Funds financial
statements as the capital assets do not represent current financial resources.
Note 16 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED
COMPONENT UNITS
The City has five component units that are discretely presented in the City's basic financial
statements. Condensed financial information for the year ended September 30, 2017 is as
follows:
Condensed statement of net position:
Cash, investments and other
current assets
Capital assets, net of accumulated
depreciation
Total assets
Accounts payable and other
current liabilities
Total liabilities
Net position
Condensed statement of activities:
Expenses:
Community development
Program revenues:
Charges for services
Operating grants and contributions
Total program revenues
Net program expense
General revenues:
Tax revenues
Non -tax general revenues
Total general revenues
Change in net position
Beginning net position
Ending net position
Wichita Falls Wichita Falls
Economic 4B Sales
Development Tax Wichita Falls Reinvestment
Corporation Corooration Zone #2 Zone #3 Zone #4 Totals
$15,931,120 $3,883,186 $509,019 $464,405 $79,668 $20,867,398
2.169,106 2.169.106
18,100,226 3,883.186 509,019 464,405 79,668 23.036.504
453,099 100.918 554.017
453.099 100,918 554.017
$17 647 127 $3.782 268 �5045�405 S22 482 487
$ 6.363.863 $4.154.917 $321,161 $ 10.839,941
17,800 -
- 321,161
17,800 321,161
( 6.346.063) ( 3.833.756) ( 321,161)
3,735,566 3,735,566 636,995
121,087 21,666 2,331
3,856,653 3,757,232 639,326
( 2,489,410) ( 76,524) 318,165
20.136,537 3.858.792 190,854
17,800
321.161
338,961
( 10.500.980)
83,221
40,402
8,231,750
2.875
388
148,347
86,096
40,790
8,380,097
86,096
40,790
( 2,120,883)
378,309
405405
38,878
�Z4
24,603,370
%22 482 487
M.
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 17 - COMMITMENTS AND CONTINGENCIES
Litigation
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 Companv
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, 2017 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.
Contract Commitments
At September 30, 2017, 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 $ 429,787
Nonmajor Governmental Funds 2,812,069
Water and Sewer Fund 3,397,598
Sanitation Fund 493,106
Nonmajor Enterprise Funds 1,075,158
Internal Service Funds 732,307
Total contract commitments - City $8.940.025
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.
63
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2017
Note 17 - COMMITMENTS AND CONTINGENCIES (CONTD.)
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.
Note 18 - TAX ABATEMENT AGREEMENTS
The City has approved value limitation agreements with companies for a limitation on the
appraised value of properties within the City pursuant to Chapter 312 of the Texas Tax Code, as
amended, i.e., the Property Tax Abatement Act. Under these agreements, the City has agreed
to abate varying amounts of property taxes levied on qualified improvements during the
abatement period. These abatements may be granted to businesses that construct
improvements within certain areas designated by the Mayor and City Council.
For the fiscal year ended September 30, 2017, the City abated property taxes totaling
$1,040,175 under this program and received payments in lieu of taxes totaling $983,690.
64
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EXHIBIT B-1
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
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
Budgeted Amounts
Original Final
$ 62,730,924
2,849,779
2,071,985
2,451,000
5,300
169,590
1,051,736
71, 330, 314
$ 62,805,924
2,854,779
2,106,985
2,615,000
5,300
169,590
1,251,736
71,809,314
Actual
$ 62,294,827
2,839,067
1,905,507
2,546,559
4,995
574,632
1,467,231
71,632,818
Variance With
Final Budget -
Positive
(Negative)
$ (511,097)
(15,712)
(201,478)
(68,441)
(305)
405,042
215,495
(176,496)
12,859,950
13,834,553
13,577,525
257,028
24,025,638
23,881,138
23,796,876
84,262
15,471,254
15,819,704
15,704,250
115,454
5,460,903
5,425,914
5,173,327
252,587
705,316
720,016
719,865
151
2,047,251
2,044,552
2,001,370
43,182
5,210,174
5,098,732
5,003,776
94,956
3,258,324
3,188,514
3,101,416
87,098
1,823,609
1,761,520
1,828,435
(66,915)
2,848,365
3,182,009
2,698,685
483,324
73,710,784
74,956,652
73,605,525
1,351,127
(2,380,470)
(3,147,338)
(1,972,707)
1,174,631
3,045,079
3,245,079
3,245,079
-
(664,609)
(1,052,776)
(1,140,277)
(87,501)
2,380,470
2,192,303
2,104,802
(87,501)
-
(955,035)
132,095
1,087,130
14,994,156
14,994,156
14,197,373
(796,783)
$ 14,994,156
$ 14,039,121
$ 14,329,468
$ 290,347
65
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2017
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 $1,245,868 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
Total Pension Liability
Service cost
Interest on total pension liability
Changes of benefit terms
Difference between expected and actual experience
Changes of assumptions
Benefit payments/refunds of contributions
Net change in total pension liability
Total pension liability, beginning
Total pension liability, ending (a)
Fiduciary Net Position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments/refunds of contributions
Administrative expenses
Other
Net change in fiduciary net position
Fiduciary net position, beginning
Fiduciary net position, ending (b)
Net pension liability, ending = (a) - (b)
Fiduciary net position as a % of total pension liability
Covered employee payroll
2016
2015
2014
$ 2,466,531
$ 4,697,339
$ 4,098,031
16,126,720
16,093,246
15,665,423
3,641,511
203,406
(2,042,671)
-
1,340,184
-
(12,342,806)
(12,073,025)
(11,744,340)
9,891,956
10,261,150
5,976,443
243,852,508
233,591,358
227,614,915
$ 253,744,464
$ 243,852,508
$ 233,591,358
$ 5,339,437
2,494,525
13,331,438
(12,342,806)
(150,608)
(8,114)
8,663,872
197,324,331
$ 205,988,203
$ 5,639,053
2,497,984
296,795
(12,073,025)
(180,789)
(8,931)
(3,828,913)
201,153,244
$ 197,324,331
$ 5,379,333
2,303,770
11,109,980
(11,744,340)
(116,005)
(9,538)
6,923,200
194,230,044
$ 201,153,244
$ 47,756,261 $ 46,528,177 $ 32,438,114
81.18% 80.92% 86.11 %
$ 44,793,885 $ 45,036,746 $ 41,538,672
Net pension liability as a % of covered payroll 106.61 % 103.31 % 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.
67
EXHIBIT B-3
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
2017
2016
2015
Actuarial determined contribution
$ 5,521,772
$ 5,427,145
$ 5,422,031
Contributions in relation to the actuarially
determined contribution
(5,521,772)
(5,427,145)
(5,422,031)
Contribution deficiency
$ -
$ -
$ -
Covered employee payroll
$ 44,687,123
$ 44,674,967
$ 42,951,296
Contributions as a percentage of covered
employee payroll
12.36%
12.15%
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
2.5%
Salary Increases
3.50% to 12.00% including inflation
Investment Rate of Return
6.75%
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.
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
Total Pension Liability
Service cost
Interest on total pension liability
Changes of benefit terms
Difference between expected and actual experience
Changes of assumptions
Benefit payments/refunds of contributions
Net change in total pension liability
Total pension liability, beginning
Total pension liability, ending (a)
Fiduciary Net Position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments/refunds of contributions
Administrative expenses
Other
Net change in fiduciary net position
Fiduciary net position, beginning
Fiduciary net position, ending (b)
Net pension liability / (asset), ending = (a) - (b)
Fiduciary net position as a % of total pension liability
Covered employee payroll
2016
2015
2014
$ 1,560,472
$
1,493,672
$
1,447,068
5,827,804
5,298,361
5,537,931
-
7,781
-
(2,151,748)
(1,542,023)
(320,862)
24,107,651
-
(423,984)
(4,543,166)
(3,950,906)
(3,616,549)
24,801,013
1,306,885
2,623,604
73,558,655
72,251,770
69,628,166
$ 98,359,668
$
73,558,655
$
72,251,770
$ 1,283,410
$
1,273,913
$
1,232,957
1,350,904
1,221,926
1,144,644
2,577,572
421,270
3,284,243
(4,543,166)
(3,950,906)
(3,616,549)
(115,843)
(87,245)
(85,636)
250
-
-
553,127
(1,121,042)
1,959,659
46,396,915
47,517,957
45,558,298
$ 46,950,042
$
46,396,915
$
47,517,957
$ 51,409,626 $ 27,161,740 $ 24,733,813
47.73% 63.07% 65.77%
$ 10,391,569 $ 10,182,717 $ 9,520,903
Net pension liability (asset) as a % of covered payroll 494.72% 266.74% 259.78%
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.
EXHIBIT B-5
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND
2017
Actuarial determined contribution $ 1,368,280
Contributions in relation to the actuarially
determined contribution (1,368,280)
Contribution deficiency $ -
Covered employee payroll $ 10,391,569
Contributions as a percentage of covered
employee payroll 13.17%
2016
$ 1,310,258
(1,310,258)
$ 10,182,717
12.87%
2015
$ 1,248,549
(1,248,549)
$ 9,629,250
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
5.81%
Retirement Age
RR Table
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.
70
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%
12/31/15 (b)
-
-
-
-
-
-
12/31/16
3,803,317
21,052,192
18.1%
17,248,875
52,607,052
32.8%
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.
71
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 Housinq 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 Agreement 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.
B/u�Ski� I o-Nal z Opf�trrt�7i�
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.
ASSETS
Cash and cash equivalents
Receivables:
Taxes and assessments
Government agencies
Other
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:
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, 2017
Special Revenue
Home
Community
Investment
Hotel/
Airport
Development
Section 8
Partnership
Motel
Improvement
Golf
Block Grant
Housing
Agreement
Tax
Grant
Fund
$ 50
$ 1,338,027
$ 118,502
$ -
$
$
-
-
-
147,808
710,995
-
263,068
-
369,452
8,455
1,902
-
-
-
-
-
-
-
190,853
$ 719,500
$ 1,339,929
$ 381,570
$ 147,808
$ 369,452
$ 190,853
$ 24,006 $ 384 $ - $ $ 21,174 $ 78,097
7,739 11,899 564 - -
63,822 - - 147,798 1,066,622 68,289
- 72,460 20,000 - - -
2,725 62,238 24,744 234,994 682
98,292 146,981 45,308 147,798 1,322,790 147,068
621,208 1,192,948 336,262
- - - 10 -
43,785
- - - - (953,338) -
621,208 1,192,948 336,262 10 (953,338) 43,785
$ 719,500 $ 1,339,929 $ 381,570 $ 147,808 $ 369,452 $ 190,853
72
EXHIBIT C-1
Permanent
Debt Service
Capital Projects
Fund
Total
Miscellaneous
Airport
Miscellaneous
Nonmajor
MPEC
Special
Debt Excess
46 Sales
Construction
Capital
Perpetual
Governmental
Fund
Revenue
Service Sales Tax
Tax Projects
Fund
Projects
Care
Funds
$ 96,974
$ 2,175,430
$ 669,505 $ 12
$ 746,222
$
$ 1,263,358
$ 1,055,177
$ 7,463,257
-
-
22,742 -
-
-
-
170,550
225
1,483,919
15,310 73,993
2,916,962
113,671
35,611
- -
159,639
-
-
750
750
518.841
3,000
- -
-
-
-
712,694
$ 729,711
$ 3,697,960
$ 708,307 $ 74,005
$ 746,222
$
$ 1,263,358
$ 1,055,177
$ 11,423,852
$ 9,024 $ 103,904 $ $ $ 47,596 $ $ 166,440 $
9,368 66,288 - -
- 991,576 270,977 762
- 2,302 - - -
558,711 22,914 47,814 1 82,524
- 37,236 - - -
577,103 1,224,220 95,410 270,978 249,726
34,959
673,348 74,005 -
- - 650,812
152,608 -
- 2,473.740
152,608 2,473,740 673,348 74,005 650,812
$ 729,711 $ 3,697,960 $ 708,307 $ 74,005 $ 746,222 $
$ 450,625
95,858
2,609,846
94,762
1,037,347
37,236
4,325,674
34,959
1,055,177 1,055,177
- - 747,353
1,013,632 1,664,444
- 2,150,418
10
43,785
152,608
2,473,740
(270,978) - - (1,224,316)
(270,978) 1,013,632 1,055,177 7,063,219
$ 1,263,358 $ 1,055,177 $ 11,423,852
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
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):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - beginning
Fund balance - ending
Special Revenue
Home
Community
Investment
Hotel/
Airport
Development
Section 8
Partnership
Motel
Improvement
Golf
Block Grant
Housing
Agreement
Tax
Grant
Fund
$ -
$
$
$ 1,825,778
$
$
304
-
414,735
1,115,824
4,288,581
267,205
2,333,282
-
17,204
11,292
-
-
364,471
1,116,128
4,305,785
278,497
1,825,778
2,333,282
779,206
117,161
-
-
97,220
-
873,098
16,398
-
-
676,811
4,079, 757
173,363
105,342
-
-
75,298
-
(108,110)
13,020
1,004,030
4,079,757
173,363
97,220
(108,110)
873,098
112,098
226,028
105,134
1,728,558
2,441,392
(93,892)
-
-
-
-
93,892
(1,728,558)
(2,925,379)
-
-
-
-
(1,728,558)
(2,925,379)
93,892
112,098
226,028
105,134
(483,987)
-
509,110
966,920
231,128
10
(469,351)
43,785
$ 621,208
$ 1,192,948
$ 336,262
$ 10
$ (953,338)
$ 43,785
73
EXHIBIT C-2
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
$
$ -
$ 691,539
$ 73,993
$
$
$
$
$ 2,591,310
86,644
-
-
501,683
248,656
248,656
2,643,004
-
181,030
10,828,926
335,000
1,096,062
2,276,344
-
783,497
67,975
4,558,878
892,049
370,332
16,880
325
-
1,012,891
87,280
2,772,724
1,227,049
4,444,698
2,984,763
74,318
783,497
1,261,896
87,280
21,502,177
-
205,202
-
-
-
-
1,292,681
86,233
86,233
831,794
-
-
831,794
22,265
3,078
62,476
104,217
-
-
-
4,929,931
18,493
604,716
728,551
2,471,599
1,600
2,548,497
-
397,641
-
-
289,531
3,224,663
-
7,250
-
3,231,913
141,312
219,080
-
923,119
2,211,277
3,507,808
-
-
3,525,000
-
-
3,525,000
-
-
1,591,022
-
-
-
1,591,022
3,365,975
4,252,307
5,116,022
-
930,369
2,820,671
62,476
22,667,178
(2,138,926)
192,391
(2,131,259)
74,318
(146,872)
(1,558,775)
24,804
(1,165,001)
2,165,903
187,553
2,837,515
-
385,511
50,317
-
5,720,691
-
(515,518)
-
(57,942)
-
-
(5,227,397)
2,165,903
(327,965)
2,837,515
(57,942)
385,511
50,317
-
493,294
26,977
(135,574)
706,256
16,376
238,639
(1,508,458)
24,804
(671,707)
125,631
2,609,314
(32,908)
57,629
412,173
(270,978)
2,522,090
1,030,373
7,734,926
$ 152,608
$ 2,473,740
$ 673,348
$ 74,005
$ 650,812
$ (270,978)
$ 1,013,632
$ 1,055,177
$ 7,063,219
EXHIBIT C-3
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - COMMUNITY DEVELOPMENT BLOCK GRANT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Revenues:
Charges for services
Intergovernmental revenue
Total revenues
Expenditures:
Administrative services
Parks and recreation
Community development
Public works
Health
Capital outlay
Total expenditures
Excess of revenues over (under) expenditures
Fund balance - beginning
Fund balance - ending
Budgeted Amounts
Original Final
1,235,824 1,115,824
1,235,824 1,115,824
Actual
$ 304
1,115, 824
1,116,128
Variance With
Final Budget -
Positive
(Negative)
$ 304
304
117,161
117,161
117,161
-
-
16,398
16,398
-
795,694
1,139,754
676,811
462,943
110,000
250,242
105,342
144,900
68,069
76,035
75,298
737
144,900
13,020
13,020
-
1,235,824
1,612,610
1,004,030
608,580
-
(496,786)
112,098
608,884
509,110
509,110
509,110
-
$ 509,110
$ 12,324
$ 621,208
$ 608,884
74
EXHIBIT C-4
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - SECTION 8 HOUSING FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Variance With
Final Budget -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:
Intergovernmental revenue
$ 3,620,857
$ 4,288,581
$ 4,288,581
$ -
Miscellaneous revenue
-
-
17,204
17,204
Total revenues
3,620,857
4,288,581
4,305,785
17,204
Expenditures:
Community development
3,620,857
4,288,962
4,079,757
209,205
Total expenditures
3,620,857
4,288,962
4,079,757
209,205
Excess of revenues over (under) expenditures
-
(381)
226,028
226,409
Fund balance - beginning
966,920
966,920
966,920
-
Fund balance - ending
$ 966,920
$ 966,539
$ 1,192,948
$ 226,409
75
EXHIBIT C-5
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - HOME INVESTMENT PARTNERSHIP AGREEMENT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Revenues:
Intergovernmental revenue
Miscellaneous revenue
Total revenues
Expenditures:
Community development
Total expenditures
Excess of revenues over (under) expenditures
Fund balance - beginning
Fund balance - ending
Budgeted Amounts
Original Final
$ 295,904 $ 295,904
295,904 295,904
295,904
295,904
231,128
$ 231,128 $
Actual
$ 267,205
11,292
278,497
624,430
624,430
(328,526)
231,128
(97,398) $
Variance With
Final Budget -
Positive
(Negative)
$ (28,699)
11,292
(17,407)
173,363
451,067
173,363
451,067
105,134
433,660
231,128
-
336,262
$ 433,660
76
EXHIBIT C-6
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - HOTEL/MOTEL TAX FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Revenues:
Taxes
Total revenues
Expenditures:
Administrative services
Total expenditures
Excess of revenues over (under) 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
Variance With
Final Budget -
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 1,790,000
$ 1,858,000
$ 1,825,778
$ (32,222)
1,790,000
1,858,000
1,825,778
(32,222)
97,220
97,220
97,220
-
97,220
97,220
97,220
-
1,692,780
1,760,780
1,728,558
(32,222)
(1,697,500)
(1,756,070)
(1,728,558)
27,512
(1,697,500)
(1,756,070)
(1,728,558)
27,512
(4,720)
4,710
-
(4,710)
10
10
10
-
$ (4,710)
$ 4,720
$ 10
$ (4,710)
77
EXHIBIT C-7
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - GOLF FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Revenues:
Charges for services
Miscellaneous revenue
Total revenues
Expenditures:
Administrative services
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
$ 750,000
$ 750,000
$ 414,735
-
-
364,471
750,000
750,000
779,206
870,000
880,000
873,098
870,000
880,000
873,098
(120,000)
(130,000)
(93,892)
120,000
120,000
93,892
120,000
120,000
93,892
-
(10,000)
-
43,785
43,785
43,785
$ 43,785
$ 33,785
$ 43,785
Variance With
Final Budget -
Positive
(Negative)
$ (335,265)
364,471
29,206
6,902
6,902
36,108
(26,108)
(26,108)
10,000
$ 10,000
78
EXHIBIT C-8
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - MPEC FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Variance With
Final Budget -
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:
Charges for services
$ 221,000
$ 221,000
$ -
$ (221,000)
Contributions
50,000
350,000
335,000
(15,000)
Miscellaneous revenue
1,491,554
1,491,554
892,049
(599,505)
Total revenues
1,762,554
2,062,554
1,227,049
(835,505)
Expenditures:
MPEC
3,689,888
3,758,606
3,224,663
533,943
Capital outlay
-
205,000
141,312
63,688
Total expenditures
3,689,888
3,963,606
3,365,975
597,631
Excess of revenues over (under) expenditures
(1,927,334)
(1,901,052)
(2,138,926)
(237,874)
Other financing sources (uses):
Transfers in
1,927,334
2,185,904
2,165,903
(20,001)
Total other financing sources (uses)
1,927,334
2,185,904
2,165,903
(20,001)
Excess of revenues and other sources
over (under) expenditures and other uses
-
284,852
26,977
(257,875)
Fund balance - beginning
125,631
125,631
125,631
-
Fund balance - ending
$ 125,631
$ 410,483
$ 152,608
$ (257,875)
79
EXHIBIT C-9
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Variance With
Final Budget -
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
Revenues:
Taxes
$ 732,098
$ 732,098
$ 691,539
$ (40,559)
Contributions
2,276,344
2,276,344
2,276,344
-
Miscellaneous revenue
-
-
16,880
16,880
Total revenues
3,008,442
3,008,442
2,984,763
(23,679)
Expenditures:
Debt service - principal
3,525,000
3,525,000
3,525,000
Debt service - interest and paying agent fees
1,591,022
1,591,022
1,591,022
Total expenditures
5,116,022
5,116,022
5,116,022
Excess of revenues over (under) expenditures
(2,107,580)
(2,107,580)
(2,131,259)
(23,679)
Other financing sources:
Transfers in
2,107,580
2,107,580
2,837,515
729,935
Total other financing sources
2,107,580
2,107,580
2,837,515
729,935
Excess of revenues and other sources
over (under) expenditures and other uses
-
-
706,256
706,256
Fund balance - beginning
(32,908)
(32,908)
(32,908)
-
Fund balance - ending
$ (32,908)
$ (32,908)
$ 673,348
$ 706,256
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,
private airport. The Kickapoo Airport Fund
revenues and expenses of the airport.
Transit Fund
the City acquired Kickapoo Downtown Airport, a
was established to account for the operating
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 Drainaqe 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, 2017
Kickapoo
Airport
Transit
Assets
Current assets:
Cash and cash equivalents
$ 258,738
$ 3,000
Receivables (net of allowance for
uncollectible accounts):
Customer and trade
-
-
Government agencies
-
432,640
Other
49,929
(1,263)
Inventory
42,912
-
Prepaid items
5,734
-
Total current assets
357,313
434,377
Capital assets, net of accumulated depreciation
8,910,970
4,993,823
Total assets
9,268,283
5,428,200
Deferred outflows of resources
Pension -related
57,799
282,661
Liabilities
Current liabilities payable from current assets
Accounts payable - trade
11,758
3,730
Accrued payroll
8,702
44,391
Accrued vacation and sick leave
10,792
16,878
Payable to other City funds
-
1,386,771
Payable to government agencies
77
-
Other liabilities
20,170
14,416
Total current liabilities payable
from current assets
51,499
1,466,186
Long-term liabilities:
Net pension liability 163,886 801,465
Deferred inflows of resources
Pension -related 2,130 10,418
Net position
Net investment in capital assets 8,910,970 4,993,823
Unrestricted 197,597 (1,561,031)
Total net position $ 9,108,567 $ 3,432,792
81
EXHIBIT D-1
Total
Nonmajor
Stormwater
Enterprise
Drainage
Waterpark
Funds
$ 5,284,858
$ 337,433
$ 5,884,029
406,892
-
406,892
-
-
432,640
-
(15,633)
33,033
-
-
42,912
174
-
5,908
5,691,924
321,800
6,805,414
24,396,879
3,564,345
41,866,017
30,088,803
3,886,145
48,671,431
50,651
35,394
426,505
229,379
-
244,867
6,739
3,465
63,297
6,197
7,139
41,006
-
-
1,386,771
-
3,518
3,595
133,201
9,113
176,900
375,516
23,235
1,916,436
143,618
100,357
1,209,326
1,867
1,305
15,720
24,396,879
3,564,345
41,866,017
5,221,574
232,297
4,090,437
$ 29,618,453
$ 3,796,642
$ 45,956,454
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Kickapoo
Airport
Transit
Operating revenues:
Charges for services
$ -
$ 402,431
Rents, concessions and other
884,354
29,652
Total operating revenues
884,354
432,083
Operating expenses:
Personnel services
273,900
1,266,867
Supplies and materials
382,980
423,623
Maintenance and repairs
2,771
497,044
Utilities and other services
104,655
66,909
Insurance and contract support
10,834
55,372
Other expenses
48,899
75,437
Depreciation and amortization
400,086
134,771
Total operating expenses
1,224,125
2,520,023
Operating income (loss)
(339,771)
(2,087,940)
Nonoperating revenues (expenses)
Interest income
2,414
-
Gain (loss) on sale of capital assets
-
-
Intergovernmental operating grants
-
1,701,652
Total nonoperating revenues (expenses)
2,414
1,701,652
Income (loss) before contributions and transfers
(337,357)
(386,288)
Transfers in
-
159,798
Transfers out
(49,635)
-
Change in net position
(386,992)
(226,490)
Net position - beginning
9,495,559
3,659,282
Net position - ending
$ 9,108,567
$ 3,432,792
82
EXHIBIT D-2
Total
Nonmajor
Stormwater Enterprise
Drainage Waterpark Funds
$ 3,692,496
$ 918,690
$ 5,013,617
45,523
402,932
1,362,461
3,738,019
1,321,622
6,376,078
190,583
527,014
2,258,364
3,664
200,525
1,010,792
20,485
48,566
568,866
264,997
439,200
875,761
100
49,075
115,381
28,670
24,571
177,577
282,640
251,583
1,069,080
791,139
1,540,534
6,075,821
2,946,880
(218,912)
300,257
58,888
1,382
62,684
-
-
1,701,652
58,888
1,382
1,764,336
3,005,768
(217,530)
2,064,593
-
-
159,798
(2,489,132)
-
(2,538,767)
516,636
(217,530)
(314,376)
29,101,817
4,014,172
46,270,830
$ 29,618,453
$ 3,796,642
$ 45,956,454
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Kickapoo
Airport
Transit
Cash flows from operating activities:
Receipts from customers and users
$ 881,698
$ 430,875
Payments to suppliers
(492,218)
(718,857)
Payments for interfund services
(125,144)
(718,786)
Payments to employees
(195,819)
(953,509)
Net cash provided (used) by operating activities
68,517
(1,960,277)
Cash flows from noncapital financing activities:
Intergovernmental operating grants - 1,700,166
Interfund loan repaid - (88,436)
Transfers out to other funds (49,635) -
Transfers from other funds - 159,798
Net cash provided (used) by noncapital financing activities (49,635) 1,771,528
Cash flows from capital and related
financing activities:
Capital contributions - -
Acquisition and construction of capital assets (229,732) -
Proceeds from sale of capital assets - Net cash provided (used) for capital and related
financing activities (229,732) -
Cash flows from investing activities:
Interest on investments 2,414 Net cash provided by investing activities 2,414 -
Net Increase (Decrease) in Cash and Cash Equivalents (208,436) (188,749)
Cash and Cash Equivalents - Beginning 467,174 191,749
Cash and Cash Equivalents - Ending $ 258,738 $ 3,000
83
EXHIBIT D-3
(Page 1 of 2)
Total
Nonmajor
Stormwater Enterprise
Drainage Waterpark Funds
$ 3,763,664
$ 1,337,255
$ 6,413,492
(162,362)
(798,882)
(2,172,319)
(181,877)
(24,060)
(1,049,867)
(132,286)
(462,819)
(1,744,433)
3,287,139
51,494
1,446,873
- 1,700,166
- (88,436)
(2,489,132) - (2,538,767)
- 159,798
(2,489,132) - (767,239)
88,907
-
88,907
(787,253)
(11,546)
(1,028,531)
(698,346)
(11,546)
(939,624)
58,888
1,382
62,684
58,888
1,382
62,684
158,549
41,330
(197,306)
5,126,309
296,103
6,081,335
$ 5,284,858
$ 337,433
$ 5,884,029
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS (CONT'D.)
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Kickapoo
Airport
Transit
Cash flows from operating activities:
Operating income (loss)
$ (339,771)
$ (2,087,940)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities:
Depreciation and amortization
400,086
134,771
(Increase) decrease in assets and deferred outflows of resources:
Receivables:
Customer and trade
-
-
Other
(2,656)
(1,208)
Inventory
(2,822)
52,848
Prepaid items
(3,937)
-
Deferred outflows - pension -related
954
23,322
Increase (decrease) in liabilities and deferred inflows of resources:
Accounts payable - trade
8,574
(61,476)
Accrued payroll
467
698
Accrued vacation and sick leave
1,170
-
Payable to government agencies
(25)
-
Other liabilities
113
(1,957)
Net pension liability
7,883
(10,755)
Deferred inflows - pension -related
(1,519)
(8,580)
Total adjustments
408,288
127,663
Net cash provided by (used in)
operating activities
$ 68,517
$(1,960,277)
84
EXHIBIT D-3
(Page 2 of 2)
Stormwater
Drainage Waterpark Totals
$ 2,946,880 $ (218,912) $ 300,257
282,640 251,583 1,069,080
25,645 - 25,645
- 15,633 11,769
- 50,026
- - (3,937)
10,116 7,871 42,263
228,760
-
175,858
1,820
(1,629)
1,356
263
3,025
4,458
-
962
937
(189,346)
8,864
(182,326)
(17,732)
(14,521)
(35,125)
(1,907)
(1,382)
(13,388)
340,259
270,406
1,146,616
$ 3,287,139
$ 51,494
$ 1,446,873
-Aloaftwo—
/C i a a
T E X A S
B/cr�Skies Cjo�dety O��o�'tc��ie�
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.
Emolovee 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 Technology 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.
EXHIBIT E-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2017
Employee
Information
Fleet
Duplicating
Benefit
Technology
Maintenance
Services
Trust
Fund
Totals
Assets
Current assets:
Cash and cash equivalents
$ 359,526
$
$ 7,192
$ 2,127,143
$ 2,493,861
Restricted cash and cash equivalents
-
5,107,658
-
5,107,658
Receivables:
Other
27,290
2,956
30,246
Inventory
699,635
-
-
699,635
Prepaid items
2,682,710
470
-
150
2,683,330
Total current assets
3,769,161
470
5,117,806
2,127,293
11,014,730
Capital assets, net of accumulated depreciation
17,714,409
-
-
4,530,324
22,244,733
Total assets
21,483,570
470
5,117,806
6,657,617
33,259,463
Deferred outflows of resources
Pension -related
562,313
7,582
27,158
332,716
929,769
Liabilities
Current liabilities:
Accounts payable - trade
155,574
5,759
3,932
253,856
419,121
Accrued payroll
68,159
918
3,134
39,266
111,477
Accrued vacation and sick leave
116,359
-
-
52,312
168,671
Payable to other City funds
-
4,505
161,305
-
165,810
Estimated health claims payable
-
-
682,770
682,770
Other liabilities
(1)
1,296
1,295
Capital leases - current maturities
249,198
-
-
-
249,198
Total current liabilities
589,289
11,182
852,437
345,434
1,798,342
Long-term liabilities:
Capital leases, less current maturities
2,433,512
-
-
-
2,433,512
Net pension liability
1,594,399
21,497
77,004
943,393
2,636,293
Total long-term liabilities
4,027,911
21,497
77,004
943,393
5,069,805
Total liabilities
4,617,200
32,679
929,441
1,288,827
6,868,147
Deferred inflows of resources
Pension -related
20,726
279
1,001
12,263
34,269
Net position
Net investment in capital assets
17,714,409
-
-
4,530,324
22,244,733
Unrestricted
(306,452)
(24,906)
4,214,522
1,158,919
5,042,083
Total net position
$ 17,407,957
$ (24,906)
$ 4,214,522
$ 5,689,243
$ 27,286,816
85
EXHIBIT E-2
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
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 on sale of capital assets
Interest expense
Total nonoperating revenues
(expenses)
Income (loss) before transfers
Transfers in
Transfers out
Change in net position
Net position - beginning
Net position - endin(
Employee
Information
Fleet
Duplicating
Benefit
Technology
Maintenance
Services
Trust
Fund
Totals
$ 9,647,524
$ 141,752
$ -
$ 3,301,211
$ 13,090,487
13,017
-
657,168
-
670,185
-
-
13,813,107
-
13,813,107
9,660,541
141,752
14,470,275
3,301,211
27,573,779
2,128,591
35,491
113,247
1,229,545
3,506,874
2,645,751
2,198
57
242,613
2,890,619
2,513,877
-
-
623,363
3,137,240
71,865
637
72,399
161,961
306,862
187,460
-
12,050,683
15
12,238,158
183,154
98,048
1,901,782
15,223
2,198,207
3,799,355
512
-
650,343
4,450,210
11,530,053
136,886
14,138,168
2,923,063
28,728,170
(1,869,512)
4,866
332,107
378,148
(1,154,391)
-
-
577,228
-
577,228
147,001
-
(4,882)
142,119
(3,912)
-
(3,912)
143,089
-
577,228
(4,882)
715,435
(1,726,423)
4,866
909,335
373,266
(438,956)
2,057,792
-
-
-
2,057,792
(312,000)
-
-
(202,058)
(514,058)
19,369
4,866
909,335
171,208
1,104,778
17,388,588
(29,772)
3,305,187
5,518,035
26,182,038
$ 17,407,957
$ (24,906)
$ 4,214,522
$ 5,689,243
$ 27,286,816
EXHIBIT E-3
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
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 provided 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 inflows:
Accounts payable - trade
Accrued payroll
Accrued vacation and sick leave
Estimated health claims payable
Other liabilities
Net pension liability
Deferred inflows - pension -related
Total adjustments
Net cash provided (used) by
operating activities
Employee
Information
Fleet
Duplicating
Benefit
Technology
Maintenance
Services
Trust
Fund
Totals
$ 268,563
$ -
$ 4,638,677
$ -
$ 4,907,240
9,387,585
141,752
9,436,560
3,301,211
22,267,108
-
-
775,632
-
775,632
(5,703,017)
(103,774)
(13,956,613)
(1,056,187)
(20,819,591)
(463,650)
(6,416)
(14,920)
(138,151)
(623,137)
(1,485,326)
(20,032)
(59,204)
(885,861)
(2,450,423)
2,004,155
11,530
820,132
1,221,012
4,056,829
-
(11,530)
(551,602)
(563,132)
2,057,792
2,057,792
(312,000)
(202,058)
(514,058)
1,745,792
(11,530)
(551,602)
(202,058)
980,602
(3,503,194)
(489,171)
(3,992,365)
177,406
177,406
(249,198)
(249,198)
(3,912)
(3,912)
(3,578,898)
-
(489,171)
(4,068,069)
577,228
577,228
-
577,228
-
577,228
171,049
845,758
529,783
1,546,590
188,477
4,269,092
1,597,360
6,054,929
$ 359,526
$ -
$ 5,114,850
$ 2,127,143
$ 7,601,519
$ (1,869,512)
$ 4,866
$ 332,107
$ 378,148
$ (1,154,391)
3,799,355
512
-
650,343
4,450,210
(2,121)
-
380,292
-
378,171
(22,403)
-
-
-
(22,403)
295
(36)
(150)
109
18,776
(2,112)
(4,032)
10,847
23,479
39,736
1,123
(6,506)
162,265
196,618
2,744
264
36
(282)
2,762
3,452
-
-
(2,237)
1,215
-
102,770
102,770
(2,272)
-
302
-
(1,970)
51,469
6,974
15,598
31,153
105,194
(15,364)
(61)
(435)
(9,075)
(24,935)
3,873,667
6,664
488,025
842,864
5,211,220
$ 2,004,155
$ 11,530
$ 820,132
$ 1,221,012
$ 4,056,829
87
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.
Alw,5kie,, 40'lal n Op fo�f ctr��ie,
EXHIBIT F-1
CITY OF WICHITA FALLS, TEXAS
AGENCYFUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Balance Balance
10/1/2016 Additions Deductions 9/30/2017
ESCHEATMENT FUND
Assets
Cash and cash equivalents
Liabilities
Other liabilities
$ 125,849 $ 11,318 $ 9,368 $ 127,799
$ 125,849 $ 11,318 $ 9,368 $ 127,799
F.E.
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 five
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.
Wichita Falls Reinvestment Zone #4
The Wichita Falls Reinvestment Zone #4 was created in March 2015 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 #4 is to capture increments of growth in
real property values in the designated zone area from base values established in January
2015 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, 2017
Wichita Falls
Economic
Wichita Falls
Wichita Falls
Wichita Falls
Wichita Falls
Development
413 Sales Tax
Reinvestment
Reinvestment
Reinvestment
Corporation
Corporation
Zone #2
Zone #3
Zone #4
Totals
Assets
Cash and cash equivalents
$ 15,274,076
$ 3,226,142
$ 509,019
$ 464,863
$ 79,668
$ 19,553,768
Receivables:
Government agencies
657,044
657,044
-
(458)
-
1,313,630
Capital assets, net of accumulated depreciation
2,169,106
-
-
-
-
2,169,106
Total assets
18,100,226
3,883,186
509,019
464,405
79,668
23,036,504
Liabilities
Accounts payable - trade
453,099
100,918
-
-
-
554,017
Total liabilities
453,099
100,918
554,017
Net position
Net investment in capital assets
2,169,106
-
-
-
-
2,169,106
Unrestricted
15,478,021
3,782,268
509,019
464,405
79,668
20,313,381
Total net position
$ 17,647,127
$ 3,782,268
$ 509,019
$ 464,405
$ 79,668
$ 22,482,487
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Community development
Wichita Falls Economic Development Corporation
Wichita Falls 46 Sales Tax Corporation
Wichita Falls Reinvestment Zone #2
Wichita Falls Reinvestment Zone #3
Wichita Falls Reinvestment Zone #4
Total component units
General revenues:
Taxes:
Property tax
Sales tax
Investment earnings
Miscellaneous
Total general revenues
Change in net position
Net position - beginning
Net position - ending
Expenses
Program Revenue
Operating
Charges for Grants and
Services Contributions
$ 6,363,863 $ 17,800 $ -
4,154,917 - 321,161
321,161 - -
$ 10,839,941 $ 17,800 $ 321,161
a
EXHIBIT G-2
Wichita Falls
Economic
Wichita Falls
Development
4B Sales Tax
Corporation
Corporation
$ (6,346,063)
$ -
-
(3,833,756)
(6,346,063)
(3,833,756)
Net (Expense) Revenue and
Changes in Net Position
Wichita Falls Wichita Falls Wichita Falls
Reinvestment Reinvestment Reinvestment
Zone #2 Zone #3 Zone #4
(321,161) - -
(321,161) - -
Totals
$ (6,346,063)
(3,833,756)
(321,161)
(10,500,980)
-
-
636,995
83,221
40,402
760,618
3,735,566
3,735,566
-
-
-
7,471,132
113,244
21,666
2,331
2,875
388
140,504
7,843
-
-
-
-
7,843
3,856,653
3,757,232
639,326
86,096
40,790
8,380,097
(2,489,410)
(76,524)
318,165
86,096
40,790
(2,120,883)
20,136,537
3,858,792
190,854
378,309
38,878
24,603,370
$ 17,647,127
$ 3,782,268
$ 509,019
$ 464,405 $
79,668
$ 22,482,487
\ Wic�i� ��is
Supporting Schedules
Flo
.E.As
B/w,1Skie-,5- 4Xal m Cpmrfc mrle--,f
Fiscal Year
Ending
September 30,
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, 2017
General Obligation Bonds
Serial Bond
Interest
Total Bonds
Maturities (1)
on Bonds
and Interest
$ 2,018,435
$ 304,800
$ 2,323,235
1,717,018
264,785
1,981,803
1,745,507
240,073
1,985,580
1,771,429
203,382
1,974,811
1,314,759
169,091
1,483,850
1,344,180
138,687
1,482,867
1,380,070
109,904
1,489,974
1,404,044
84,717
1,488,761
1,437,531
43,506
1,481,037
$ 14,132,973 $ 1,558,945 $ 15,691,918
(1) Includes amortization of bond premium of $777,973.
(2) Includes amortization of bond premium of $158,192.
(3) Includes amortization of bond premium of $11,728,973.
Combination
Tax and Revenue
Bonds
Serial Bond
Interest
Total Bonds
Maturities (2)
on Bonds
and Interest
$ 6,881,222 $
2,051,014
$ 8,932,236
3,302,670
1,877,833
5,180,503
3,392,095
1,796,019
5,188,114
3,486,501
1,706,905
5,193,406
3,575,762
1,610,597
5,186,359
3,670,001
1,508,862
5,178,863
3,774,229
1,400,712
5,174,941
3,898,433
1,285,469
5,183,902
3,617,602
1,172,537
4,790,139
3,726,747
1,064,448
4,791,195
3,840,717
947,497
4,788,214
3,969,658
823,421
4,793,079
3,283,516
709,605
3,993,121
3,377,340
610,692
3,988,032
3,251,120
506,760
3,757,880
3,350,579
406,087
3,756,666
1,145,000
299,781
1,444,781
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
$ 75,733,192 $
21,460,601
$ 97,193,793
91
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
$ 4,948,031
$ 1,472,219
$ 6,420,250
$ 13,847,688
$ 3,828,033
$ 17,675,721
8,893,852
1,412,148
10,306,000
13,913,540
3,554,766
17,468,306
9,042,086
1,268,164
10,310,250
14,179,688
3,304,256
17,483,944
9,200,108
1,116,892
10,317,000
14,458,038
3,027,179
17,485,217
9,352,334
957,916
10,310,250
14,242,855
2,737,604
16,980,459
9,518,618
791,132
10,309,750
14,532,799
2,438,681
16,971,480
9,698,231
616,019
10,314,250
14,852,530
2,126,635
16,979,165
9,880,444
432,056
10,312,500
15,182,921
1,802,242
16,985,163
10,059,221
252,779
10,312,000
15,114, 354
1,468,822
16, 583,176
2,506,048
50,702
2,556,750
6,232,795
1,115,150
7,347,945
-
-
-
3,840,717
947,497
4,788,214
3,969,658
823,421
4,793,079
3,283,516
709,605
3,993,121
3,377,340
610,692
3,988,032
3,251,120
506,760
3,757,880
3,350,579
406,087
3,756,666
1,145,000
299,781
1,444,781
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
$ 83,098,973
$ 8,370,027
$ 91,469,000
$ 172,965,138
$ 31,389,573
$ 204,354,711
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30, 2017
General Obligation Bonds:
General Obligation Refunding Bonds,
Series 2011
General Obligation Refunding Bonds,
Series 2011 - Premium
General Obligation Refunding Bonds,
Series 2013
General Obligation Refunding Bonds,
Series 2015A
General Obligation Refunding Bonds,
Series 2015A - Premium
General Obligation Refunding Bonds,
Series 2015B
Total General Obligation Bonds
Interest Rates
and (Dates)
1,50, 2.00, 3.00
(3/1, 9/1)
1.50, 2.00, 3.00
(3/1, 9/1)
2.00, 2.25, 2.625, 2.75,
3.00, 4.00, 5.00
(3/1, 9/1)
0.73, 1.19, 1.62, 1.99,
2.29, 2.62, 2.83, 2.91,
3.11, 3.27, 3.48
(3/1, 9/1)
Final
Issue Maturity
Date Date
10/15/11 09/01 /21
03/15/13 09/01/18
11/15/15 09/01/26
11/15/15 09/01/26
Annual
Serial Payments
415,000 (2012)
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)
375,000 (2014)
385,000 (2015)
2,305,000 (2016)
335,000 (2017)
340,000 (2018)
200,000 (2016)
810,000 (2017)
830,000 (2018)
870,000 (2019)
890,000 (2020)
915,000 (2021)
955,000 (2022)
990,000 (2023)
1,030,000 (2024)
1,055,000 (2025)
1,105,000 (2026)
110,000 (2016)
255,000 (2017)
255,000 (2018)
260,000 (2019)
265,000 (2020)
270,000 (2021)
275,000 (2022)
285,000 (2023)
295,000 (2024)
305,000 (2025)
310,000 (2026)
EXHIBIT H-2
(Page 1 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
$ 4,365.000 $ 4,365,000 $ 2,510,000 $ 1,855,000
- 194,300 150,088 44.212
3,740,000 3,740,000 3,400,000 340,000
9,650,000 9,650,000 1,010,000 8,640,000
- 947,256 213,495 733,761
2,885,000 2,885,000 365,000 2,520.000
20,640,000 21.781,556 7,648.583 14,132,973
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT-D.)
SEPTEMBER 30, 2017
Final
Interest Rates
Issue Maturity
Annual
and (Dates)
Date Date
Serial Payments
Combination Tax and Revenue Bonds:
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
93
Authorized
10,820,000
3,930,000
Issued
10,820,000
3,930,000
Bonds
Retired or
Refunded Outstanding
3,405,000 7,415,000
1,435,000 2,495,000
9,830,000 9,830,000 6,230,000 3,600,000
685,333
647,241 38,092
EXHIBIT H-2
(Page 2 of 5)
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT-D.)
SEPTEMBER 30, 2017
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
94
m
Bonds
Retired or
Authorized Issued Refunded Outstanding
3,200,000 3,200,000 700,000 2,500,000
98,494 41,935 56,559
19,875,000 19,875,000 2,970,000 16,905,000
96,293 32,752 63,541
EXHIBIT H-2
(Page 3 of 5)
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT-D.)
SEPTEMBER 30, 2017
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)
1,215,000 (2037)
1,235,000 (2038)
1,260,000 (2039)
1,285,000 (2040)
1,310,000 (2041)
1,340,000 (2042)
1,370,000 (2043)
1,395,000 (2044)
1,425,000 (2045)
Total Combination Tax and Revenue Bonds
95
EXHIBIT H-2
(Page 4 of 5)
Authorized
13,000,000
33,545,000
Issued
13,000,000
33,545,000
Bonds
Retired or
Refunded Outstanding
2,035,000 10,965,000
1,850,000 31,695,000
94,200,000 95,080,120 19,346,928 75,733,192
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT-D.)
SEPTEMBER 30, 2017
Water and Sewer System
Revenue Refunding Bonds,
Series 2016
Water and Sewer System
Revenue Refunding Bonds,
Series 2016 - Premium
Total Priority Lien Revenue Bonds
Total All Bonds
Final
Interest Rates
Issue Maturity
and (Dates)
Date Date
2.00, 4.00, 5.00
06/01/16 08/01/27
(2/1, 8/1)
Annual
Serial Payments
2,635,000 (2017)
2,885,000 (2018)
6,915,000 (2019)
7,265,000 (2020)
7,635,000 (2021)
8,010,000 (2022)
8,410,000 (2023)
8,835,000 (2024)
9,275,000 (2025)
9,705,000 (2026)
2,435,000 (2027)
•N
EXHIBIT H-2
(Page 5 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
74,005,000 74,005,000 2,635,000 71,370,000
13,933,263 2,204,290 11,728,973
74,005,000 87,938,263 4,839,290 83,098,973
$ 188,845,000 $ 204,799,939 $ 31,834,801 $ 172,965,138
��GfPi.S/F%PS �O�A'PyL 0�7�l0I"fGGf2f�%PS.
EXHIBIT H-3
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE COVERAGE - REVENUE BONDS
SEPTEMBER 30, 2017
Water and Sewer Revenue Bonds:
Change in net position (Exhibit A-8)
Add:
Depreciation and amortization
Interest expense and paying agent fees
Transfers out
Subtract:
West Texas Utilities water revenues
Gain (loss) on sale/abandonment of capital assets
Capital contributions from developers
Transfers in
Net earnings for determining debt service coverage
Net earnings for determining debt service coverage
Principal and interest requirements to maturity
Number of years remaining to pay bonds
Average annual principal and interest requirement
Minimum bond covenant debt service coverage
Minimum debt service coverage requirement
Excess over debt service coverage requirements
Priority
Lien Bonds
$ 91,469,000
10
9,146,900
1.25
$ 11,433,625
$ 8,506,927
3,966,161
1,879,250
473,527
(124,974)
396,830
688,851
Subordinate
Lien Bonds
N/A
N/A
1.10
$ 8,784,044
14,352,338
(1,434,234)
$ 21,702,148
$ 21,702,148
$ - 11,433,625
$ 10,268,523
97
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2017
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
627,488
General Public Information
-
510,676
433,893
Building Maintenance
-
2,770,246
139,556
Nondepartmental
46,347
380,754
85,497
Municipal Court
230,000
310,819
72,007
Legal
_
_
1,488
City Clerk
1,411
Homeland security
732,673
Training Center
-
-
42,172
Golf course
3,808,375
786,801
122,339
Total administrative services
4,562,664
10,285,682
2,265,201
Police
1,131,749
10,231,506
14,874,272
Fire
190,565
7,051,522
786,659
Parks and recreation:
Recreation
754,606
1,697,141
252,619
Park maintenance
4,588,967
589,802
61,938
Cemetery
141,685
-
9,423
Total parks and recreation
5,485,258
2,286,943
323,980
Accounting/finance:
Information Systems
-
-
7,542,468
Total accounting/finance
7,542,468
Community development:
Planning
26,833
Inspection
-
-
3,610
Property management
10,334,824
420,892
11,384
Weed and Seed program
-
-
7,504
Hazard Mitigation grant
170,800
-
-
Total community development
10,505,624
420,892
49,331
Public works:
Engineering
-
13,744
138,041
Street maintenance
10,147
100,108
33,386
Lake Wichita Revitalization
-
-
_
SAFB Gate Perimeter Project
1,543,993
Infrastructure
1,300,172
-
-
Total public works
2,854,312
113,852
171,427
Health:
Administration
34,820
2,877,755
307,391
General City nursing
76,411
1,123
10,108
Environmental health
-
-
47,156
Lab water pollution
-
-
37,273
Animal reclaim center
150,737
4,089,467
28,633
Total health
261,968
6,968,345
430,561
Traffic and transportation
-
31,045
146,638
Multi -Purpose Events Center
9,560,210
38,146,300
510,708
Wichita Falls Business Park
1,099,507
-
-
Total capital assets used in the operation of governmental funds
$ 35,651,857
$ 75,536,087
$ 27,101,245
98
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
79,358
5,695,829
3,184
947,753
_
2,909,802
-
512,598
1,435
614,261
_
1,488
1,411
732,673
42,172
_
4,717,515
107,499
17,221,046
8,760 205,700 26,451,987
- 8,028,746
2,704,366
5,240,707
151,108
- 8,096,181
104,751 7,647,219
104,751 7,647,219
- 26,833
3,610
10,767,100
7,504
170,800
10,975,847
151,785
143,641
424,175
424,175
-
370,021
1,914,014
169,304,380
2,915,130
173,519,682
-
169,304,380
3,709,326
176,153,297
14,573
-
13,020
3,247,559
_
-
87,642
47,156
37,273
-
-
4,268,837
14,573
-
13,020
7,688,467
-
11,210,791
199,147
11,587,621
22,117
-
-
48,239,335
_
_
-
1,099,507
$ 152,949
$ 180,515,171
$ 4,231,944
$ 323,189,253
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, 2017
Beginning
Ending
Balance
Balance
10/1/2016
Additions
Deletions
9/30/2017
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
5,706,795
10,140
21,106
5,695,829
General Public Information
947,753
-
-
947,753
Building Maintenance
2,909,802
-
2,909,802
Nondepartmental
514,098
1,500
512,598
Municipal Court
728,456
114,195
614,261
Legal
1,488
-
1,488
City Clerk
1,411
-
-
1,411
Homeland security
748,684
8,400
24,411
732,673
Training center
536,254
-
494,082
42,172
Golf course
4,717,515
-
-
4,717,515
Total administrative services
17,857,800
18,540
655,294
17,221,046
Police
26,467,238
37,516
52,767
26,451,987
Fire
8,028,746
-
-
8,028,746
Parks and recreation:
Recreation
2,729,641
1,495
26,770
2,704,366
Park maintenance
5,246,397
2,400
8,090
5,240,707
Cemetery
151,108
-
-
151,108
Total parks and recreatior
8,127,146
3,895
34,860
8,096,181
Accounting/finance:
Information Systems_
7,310,212
489,170
152,163
7,647,219
Total accounting/finance
7,310,212
489,170
152,163
7,647,219
Community development:
Planning
26,833
-
-
26,833
Inspection
3,610
-
3,610
Property management
10,782,715
15,615
10,767,100
Weed and Seed program
7,504
-
7,504
Hazard Mitigation Grant
170,800
-
170,800
Total community development
10,991,462
-
15,615
10,975,847
Public works:
Engineering
147,545
11,224
6,984
151,785
Street maintenance
143,641
-
-
143,641
Lake Wichita Revitalizatior
334,864
89,311
424,175
SAFB Gate Perimeter Projecl
1,541,774
372,240
-
1,914,014
Infrastructure
167,675,372
6,365,676
521,366
173,519,682
Total public works
169,843,196
6,838,451
528,350
176,153,297
Health:
Administration
3,256,638
13,020
22,099
3,247,559
General city nursing
95,360
-
7,718
87,642
Environmental health
33,776
13,380
-
47,156
Lab water pollution
37,273
-
37,273
Animal reclaim center
4,148,629
120,208
-
4,268,837
Total health
7,571,676
146,608
29,817
7,688,467
Traffic and transportation
11,328,413
340,651
81,443
11,587,621
Multi -Purpose Events Center
48,098,023
141,312
-
48,239,335
Wichita Falls Business Park
1,099,507
-
-
1,099,507
Total capital assets
$ 316,723,419
$ 8,016,143
$ 1,550,309
$ 323,189,253
99
EXHIBIT H-6
CITY OF WICHITA FALLS, TEXAS
REGIONAL AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
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
10/1/2016 Additions Deletions 9/30/2017
$ 14,892,849 $ - $
- $14,892,849
34,086,309 -
- 34,086,309
127,836 -
- 127,836
12,829 -
- 12,829
3,566,725 1,925,379
- 5,492,104
52,686,548 1,925,379
- 54,611,927
2,294,199
595,714
- 2,889,913
1,367,180
676,665
- 2,043,845
20,175
15,588
- 35,763
1,283
2,566
- 3,849
3,682,837
1,290,533
- 4,973,370
$ 49,003,711
$ 634,846 $
- $49,638,557
100
EXHIBIT H-7
CITY OF WICHITA FALLS, TEXAS
KICKAPOO AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Balance Balance
10/1/2016 Additions Deletions 9/30/2017
Capital Assets
Land and betterments
$ 8,769,905
$ - $ -
$ 8,769,905
Buildings and improvements
3,264,730
- -
3,264,730
Machinery and equipment
583,215
- -
583,215
Construction in progress
61,682
229,732 -
291,414
Total capital assets
12,679,532
229,732 -
12,909,264
Accumulated Depreciation:
Land and betterments
2,270,954
261,504 -
2,532,458
Buildings and improvements
982,399
107,432 -
1,089,831
Machinery and equipment
344,855
31,150 -
376,005
Total accumulated depreciation
3,598,208
400,086 -
3,998,294
Net capital assets
$ 9,081,324
$ (170,354) $ -
$ 8,910,970
101
EXHIBIT H-8
CITY OF WICHITA FALLS, TEXAS
TRANSIT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
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
10/1/2016 Additions Deletions
Balance
9/30/2017
$ 457,254 $ - $ - $ 457,254
5,135,957 - - 5,135,957
358,195 - 18,204 339,991
5,951,406 - 18,204 5,933,202
36,921
10,549
504,589
100,244
281,301
23,979
822,811
134,772
$5,128,595
$ (134,772) $
18,204
18,204
47,470
604,833
287,076
939,379
$ 4,993,823
102
EXHIBIT H-9
CITY OF WICHITA FALLS, TEXAS
STORMWATER DRAINAGE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Capital Assets:
Drainage
Land and 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
10/1/2016 Additions Deletions 9/30/2017
$ 18,134,401 $
6,945,832
$ - $25,080,233
426,513
-
- 426,513
89,017
2,323
- 91,340
6,894,289
2,739,521
8,900,596 733,214
25,544,220
9,687,676
8,900,596 26,331,300
1,554,044
274,722
17,835
5,217
79,901
2,702
1,651,780
282,641
$ 23,892,440
$ 9,405,035
- 1,828,766
- 23,052
- 82,603
- 1,934,421
$ 8,900,596 $24,396,879
103
EXHIBIT H-10
CITY OF WICHITA FALLS, TEXAS
SANITATION FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Capital Assets:
Land and betterments
Buildings and improvements
Machinery and equipment
Construction in progress
Total capital assets
Accumulated Depreciation:
Land and betterments
Buildings and improvements
Machinery and equipment
Total accumulated depreciation
Net capital assets
Balance Balance
10/1/2016 Additions Deletions 9/30/2017
$ 7,362,165
$ 148,878 $ -
$ 7,511,043
3,555,655
- -
3,555,655
632,060
23,764 -
655,824
-
79,870 -
79,870
11,549,880
252,512 -
11,802,392
1,095,100
148,279 -
1,243,379
1,455,745
93,700 -
1,549,445
264,548
43,675 -
308,223
2,815,393
285,654 -
3,101,047
$8,734,487
$ (33,142) $ -
$8,701,345
104
EXHIBIT H-11
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Balance Balance
10/1/2016 Additions Deletions 9/30/2017
Caoital AssetE:
Land and betterments
$ 24,362,969
$ -
$ -
$ 24,362,969
Buildings, systems and
improvements
329,502,929
2,873,668
704,581
331,672,016
Machinery and equipment
5,994,115
258,244
268,193
5,984,166
Furniture and fixtures
1,164
-
-
1,164
Motor vehicles
1,235
-
-
1,235
Construction in progress
21,911,134
23,229,140
363,481
44,776,793
Total capital assets
381,773,546
26,361,052
1,336,255
406,798,343
Accumulated Deoreciatior:
Land and betterments
11,040,879
243,632
-
11,284,511
Buildings, systems and
improvements
114,074,995
8,022,877
342,995
121,754,877
Machinery and equipment
4,713,804
240,418
260,870
4,693,352
Furniture and fixtures
1,164
-
-
1,164
Motor vehicles
1,235
-
-
1,235
Total accumulated depreciation
129,832,077
8,506,927
603,865
137,735,139
Net capital asset:
$251,941,469
$ 17,854,125
$ 732,390
$269,063,204
105
EXHIBIT H-12
CITY OF WICHITA FALLS, TEXAS
WATERPARK FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Capital Assets:
Land and betterments
Buildings and improvements
Machinery and equipment
Total capital assets
Accumulated Depreciatior:
Buildings and improvements
Machinery and equipment
Total accumulated depreciation
Net capital assets
Balance Balance
10/1/2016 Additions Deletions 9/30/2017
$ 389,894 $ - $ - $ 389,894
4,597,737 3,750 - 4,601,487
210,784 10,484 - 221,268
5,198,415 14,234 - 5,212,649
1,263,858 229,981 - 1,493,839
132,863 21,602 - 154,465
1,396,721 251,583 - 1,648,304
$ 3,801,694 $ (237,349) $ - $ 3,564,345
106
EXHIBIT H-13
CITY OF WICHITA FALLS, TEXAS
FLEET MAINTENANCE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Capital Assets:
Land and betterments
Buildings and improvements
Machinery and equipment
Furniture and fixtures
Motor vehicles
Total capital assets
Accumulated Depreciation:
Land and betterments - other
Buildings and improvements
Machinery and equipment
Furniture and fixtures
Motor vehicles
Total accumulated depreciation
Net capital assets
Balance
10/1/2016
Balance
Additions Deletions 9/30/2017
$ 436,269
$ -
$ - $ 436,269
4,655,717
63,930
- 4,719,647
1,620,875
58,676
- 1,679,551
2,950
-
- 2,950
55,425,735
3,380,588
1,987,100 56,819,223
62,141,546
3,503,194
1,987,100 63,657,640
2,480
131 -
2,611
2,527,253
114,429 -
2,641,682
1,211,867
139,166 -
1,351,033
2,950
- -
2,950
40,356,022
3,545,630 1,956,697
41,944,955
44,100,572
3,799,356 1,956,697
45,943,231
$ 18,040,974
$ (296,162) $ 30,403
$17,714,409
107
EXHIBIT H-14
CITY OF WICHITA FALLS, TEXAS
DUPLICATING SERVICES FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Capital Assets:
Machinery and equipment
Accumulated Depreciation:
Machinery and equipment
Net capital assets
Balance
10/1 /2016
$ 10,617
41,
10,105
512
Additions Deletions
Balance
9/30/2017
$ - $ 1,500 $ 9,117
512 1,500 9,117
$ (512) $ - $ -
108
EXHIBIT H-15
CITY OF WICHITA FALLS, TEXAS
INFORMATION TECHNOLOGY FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Capital Assets:
Machinery and equipment
Construction in progress
Total capital assets
Accumulated Depreciation:
Machinery and equipment
Net capital assets
Balance
10/1/2016
Balance
Additions Deletions 9/30/2017
$ 2,410,014
$ 3,778,081
$ 8,803
$ 6,179,292
3,393,662
104,751
3,393,662
104,751
5,803,676
3,882,832
3,402,465
6,284,043
1,107,298
$ 4,696,378
650,343 3,922 1,753,719
$ 3,232,489 $ 3,398,543 $ 4,530,324
109
EXHIBIT H-16
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Capital Assets:
Land and betterments
Buildings and improvements
Total capital assets
Accumulated Depreciation:
Buildings and improvements
Net capital assets
Balance
10/1/2016 Additions Deletions
Balance
9/30/2017
$ 1,432,069 $ - $ - $ 1,432,069
957,191 - - 957,191
2,389,260 - - 2,389,260
201,010 19,144 - 220,154
$ 2,188,250 $ (19,144) $ - $ 2,169,106
110
GNam Offo�trr die,
Statistical Section (Unaudited)
This part of the City of Wichita Falls, Texas' comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
government's overall financial health.
Contents
Page
Financial Trends ill
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 117
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax.
Debt Capacity 121
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 126
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 128
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)
2007-2008 2008-2009 2009-2010 2010-2011
Governmental activities
Net investment in capital assets
$
139,868,969
$
138,550,295
$
135,957,279
$
138,876,124
Restricted
1,631,963
1,186,730
5,006,079
6,048,238
Unrestricted
21,189,932
14,880,792
9,263,524
7,189,782
Total governmental activities net position
$
162,690,864
$
154,617,817
$
150,226,882
$
152,114,144
Business -type activities
Net investment in capital assets
$
143,023,239
$
156,170,924
$
172,590,416
$
172,634,321
Restricted
12,945,497
12,958,909
12,942,163
11,734,924
Unrestricted
12,810,854
10,712,005
10,734,533
23,006,940
Total business -type activities net position
$
168,779,590
$
179,841,838
$
196,267,112
$
207,376,185
Primary government
Net investment in capital assets
$
282,892,208
$
294,721,219
$
308,547,695
$
311,510,445
Restricted
14,577,460
14,145,639
17,948,242
17,783,162
Unrestricted
34,000,786
25,592,797
19,998,057
30,196,722
Total primary government net position
$
331,470,454
$
334,459,655
$
346,493,994
$
359,490,329
111
EXHIBIT 1-1
Fiscal Year
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
2016-2017
$ 139,058,565
$
138,319,208
$
128,168,873
$
143,014,752
$
148,206,829
$
150,776,165
6,931,511
6,248,074
5,290,076
3,715,125
4,468,638
5,497,793
7,453,791
6,661,101
5,789,973
(59,103,807)
(64,279,354)
(68,466,161)
$ 153,443,867
$
151,228,383
$
139,248,922
$
87,626,070
$
88,396,113
$
87,807,797
$ 185,087,683
$
198,540,484
$
225,576,460
$
238,249,137
$
236,074,244
$
250,154,417
11,374,316
11,881,663
11,885,698
11,800,667
11,082,332
11,046,973
28,157,150
25,390,068
22,571,945
13,941,283
31,265,373
27,573,458
$ 224,619,149
$
235,812,215
$
260,034,103
$
263,991,087
$
278,421,949
$
288,774,848
$ 324,146,248
$
336,859,692
$
353,745,333
$
381,263,889
$
384,281,073
$
400,930,582
18,305,827
18,129,737
17,175,774
15,515,792
15,550,970
16,544,766
35,610,941
32,051,169
28,361,918
(45,162,524)
(33,013,981)
(40,892,703)
$ 378,063,016
$
387,040,598
$
399,283,025
$
351,617,157
$
366,818,062
$
376,582,645
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:
Municipal Airport
Kickapoo Airport
Transit
Sanitation
Water and Sewer
Stormwater drainage
Waterpark
Total business -type activities expenses
Total primary government expenses
2007-2008
2008-2009
2009-2010
2010-2011
$ 11,662,086
$ 12,026,311 $
10,043,369
$ 10,881,691
20,527,967
21,008,696
21,133,526
21,822,371
12,492,842
13,028,146
13,065,768
13,291,048
5,107,579
5,757,363
5,687,527
5,405,955
2,231,952
2,473,024
2,428,055
2,534,141
6,921,352
7,584,142
7,243,744
7,084,165
8,314,596
8,282,184
8,035,626
7,613,089
4,873,643
4,995,764
4,931,859
4,911,165
2,679,026
2,499,869
2,525,097
2,451,154
4,335,968
4,027,612
4,181,379
4,295,871
1,405,383
1,620,854
1,781,245
1,765,406
80,552,394
83,303,965
81,057,195
82,056,056
310,980
289,195
337,946
435,774
1,245,021
1,354,624
1,108,515
1,262,976
1,793,369
1,616,322
1,602,362
1,847, 362
9,199,341
8,509,153
9,152,130
8,959,973
28,126,920
30,165,844
30,250,390
32,969,719
407,035
477,415
785,543
533,715
-
-
1,253,557
1,399,255
41,082,666
42,412,553
44,490,443
47,408,774
$ 121,635,060 $ 125,716,518 $ 125,547,638 $ 129,464,830
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
3,211,546
$ 4,267,891
$ 4,414,667
$ 4,499,281
600,020
470,020
495,459
527,007
2,612
4,369
2,042
11,400
517,707
513,682
515,008
513,746
-
-
-
65,000
1,124,534
891,803
1,042,574
1,017,718
100,000
165,363
2,600
2,740
864,874
888,890
908,415
965,741
154,941
164,350
201,961
184,138
2,141, 584
1,789,269
1,767,398
1,644, 569
11,468,654
10,891,021
14,606,807
13,268,583
3,097,319
1,631,109
6,145,852
2,315,245
23,283,791
21,677,767
30,102,783
25,015,168
112
EXHIBIT 1-2
(Page 1 of 2)
Fiscal Year
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
$ 11,934,804
$ 12,782,404
$ 13,873,741
$ 14,837,668
$ 14,235,870
$ 15,198,841
22,103,892
22,767,560
23,195,421
23,705,432
25,633,843
25,513,220
13,523,616
14,226,064
14,387,072
16,455,087
17,476,759
21,107,882
5,152,616
5,579,717
5,574,156
5,492,124
5,637,654
5,655,633
975,863
924,240
923,727
876,069
787,945
760,506
6,777,614
6,729,171
6,497,467
6,400,781
6,681,803
6,902,628
7,956,752
7,747,847
8,155,640
8,117,413
8,334,993
8,551,971
5,021,625
5,167,794
5,166,135
5,398,191
5,707,386
5,814,947
2,510,936
2,757,545
2,617,801
2,555,837
2,667,418
2,579,284
3,895,665
4,136,952
4,302,368
4,553,654
4,544,817
4,021,413
1,711,328
2,122,969
1,992,169
1,910,975
1,631,355
1,443,552
81,564,711
84,942,263
86,685,697
90,303,231
93,339,843
97,549,877
529,827
655,452
855,765
2,532,243
1,881,055
1,827,618
1,419,681
1,495,562
1,423,952
1,412,211
1,252,359
1,198,823
1,903,560
1,938,827
2,416,274
2,524,244
2,673,176
2,540,427
8,904,795
9,236,474
9,333,512
9,489,348
9,841,683
10,216,686
28,996,520
30,135,738
32,364,514
33,554,406
32,120,018
33,288,819
406,570
430,012
560,389
674,839
828,537
816,334
1,375,832
1,397,270
1,456,084
1,557,158
1,598,720
1,538,193
43,536,785
45,289,335
48,410,490
51,744,449
50,195,548
51,426,900
$ 125,101,496
$ 130,231,598
$ 135,096,187
$ 142,047,680
$ 143,535,391
$ 148,976,777
$ 4,390,463
$ 4,304,737
$ 4,220,786
$ 4,030,674
$ 4,270,749
$ 4,735,471
541,201
624,272
339,867
396,228
335,112
420,289
14,613
18,459
15,854
6,866
1,749
36,937
525,505
524,519
530,305
447,990
429,207
441,751
942,649
1,131,684
1,094,904
1,006,966
1,101,085
1,209,021
24,420
116,035
94,772
9,510
11,824
14,223
1,075,277
1,073,172
1,051,444
995,634
1,051,834
1,081,910
217,262
126,163
133,133
162,184
72,965
126,334
1,656,358
1,597,702
1,553,729
1,604,828
1,561,783
892,049
9,868,484
11,157,348
10,837,248
11,019,845
14,803,477
14,934,929
8,066,065
4,394,038
12,956,740
5,349,242
3,942,929
1,032,502
27,322,297
25,068,129
32,828,782
25,029,967
27,582,714
24,925,416
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET POSITION (CONT'D.)
LAST TEN FISCAL YEARS (UNAUDITED)
2007-2008
2008-2009
2009-2010
2010-2011
Business -type activities:
Charges for services:
Municipal Airport
430,561
544,332
624,298
681,639
Kickapoo Airport
1,025,300
745,444
798,034
988,457
Transit
224,856
229,483
274,577
367,374
Sanitation
10,939,617
12,025,478
11,826,882
11,911,026
Water and Sewer
33,042,845
33,888,553
33,264,688
40,679,751
Stormwater drainage
1,318,340
1,252,544
1,272,430
2,485,346
Waterpark
-
-
1,283,919
1,633,155
Operating grants and contributions
1,389,202
1,142,191
2,312,062
1,323,581
Capital grants and contributions
1,021,644
456,743
108,471
192,620
Total business -type activities program revenue:
49,392,365
50,284,768
51,765,361
60,262,949
Total primary government program revenues
$ 72,676,156
$
71,962,535
$
81,868,144
$
85,278,117
Net(Expense)/Revenue
Governmental activities
$ (57,268,603)
$
(61,626,198)
$
(50,954,412)
$
(57,040,888)
Business -type activities
8,309,699
7,872,215
7,274,918
12,854,175
Total primary government net expense
$ (48,958,904)
$
(53,753,983)
$
(43,679,494)
$
(44,186,713)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Property tax
$ 26,160,116
$
27,869,849
$
27,570,092
$
28,556,762
Sales tax
21,353,896
20,451,906
20,033,820
21,082,993
Franchise fees
5,598,406
5,570,399
5,593,573
5,593,781
Hotel occupancy tax
1,560,353
1,506,423
1,553,674
1,572,105
Beverage tax
251,386
249,121
246,541
248,350
Bingo tax
168,864
109,739
77,883
70,747
Investment earnings
1,727,671
415,156
129,653
49,239
Gain (loss) on sale of capital assets
(397,404)
-
-
-
Miscellaneous
242,811
134,983
160,949
-
Transfers
525,898
(2,439,625)
(8,802,705)
1,754,171
Total governmental activities
57,191,997
53,867,951
46,563,480
58,928,148
Business -type activities:
Investment earnings
2,949,036
602,872
194,428
50,858
Miscellaneous
-
147,536
153,223
(41,792)
Transfers
(525,898)
2,439,625
8,802,705
(1,754,171)
Total business -type activities
2,423,138
3,190,033
9,150,356
(1,745,105)
Total primary government
$ 59,615,135
$
57,057,984
$
55,713,836
$
57,183,043
Change in Net Position
Governmental activities
$ (76,606)
$
(7,758,247)
$
(4,390,932)
$
1,887,260
Business -type activities
10,732,837
11,062,248
16,425,274
11,109,070
Total primary government
$ 10,656,231
$
3,304,001
$
12,034,342
$
12,996,330
113
EXHIBIT 1-2
(Page 2 of 2)
Fiscal Year
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
716,608
769,557
775,829
864,505
1,109,959
1,120,916
1,153,038
1,255,153
1,239,973
1,090,276
970,129
884,354
405,852
410,737
476,716
541,389
503,708
432,083
12,807,160
12,606,675
13,196,489
12,790,072
13,223,470
13,394,186
36,771,008
32,798,786
31,272,972
38,855,845
42,999,399
43,527,980
2,552,650
2,503,255
2,601,158
2,763,120
3,703,803
3,738,019
1,475,842
1,398,164
1,292,639
1,492, 787
1,437, 615
1,321,622
2,371,658
3,787,014
1,830,334
1,826,749
2,282,163
1,701,652
181,759
1,339,265
1,017,827
1,558,589
209,110
396,830
58,435,575
56,868,606
53,703,937
61,783,332
66,439,356
66,517,642
$ 85,757,872
$ 81,936,735
$ 86,532,719
$ 86,813,299
$ 94,022,070
$ 91,443,058
$ (54,242,414)
$ (59,874,134)
$ (53,856,915)
$ (65,273,264)
$ (65,757,129)
$ (72,624,461)
14,898,790
11,579,271
5,293,447
10,038,883
16,243,808
15,090,742
$ (39,343,624)
$ (48,294,863)
$ (48,563,468)
$ (55,234,381)
$ (49,513,321)
$ (57,533,719)
$ 28,625,696
$ 29,107,168
$ 29,784,202
$ 31,072,640
$ 34,515,164
$ 35,120,896
21,406,823
22,062,365
22,397,536
22,403,406
22,373,768
22,413,397
5,574,882
5,423,680
5,558,600
5,414,414
5,038,247
5,193,721
1,677,100
1,578,764
1,684,329
1,775,372
1,910,468
1,878,061
207,735
230,728
281,598
291,091
286,986
281,687
61,696
40,122
36,688
32,764
26,736
9,098
54,579
53,244
33,309
20,732
129,886
303,325
326,861
636,417
879,538
529,526
447,357
1,651,791
(2,363,233)
(1,473,837)
(18,778,342)
(2,072,770)
2,003,892
5,184,169
55,572,139
57,658,651
41,877,458
59,467,175
66,732,504
72,036,145
39,865
(58,924)
2,363,233
2,344,174
$ 57,916,313
27,902
149,173
1,473,837
1,650,912
$ 59,309,563
11,680
138,419
18,778,342
18,928,441
$ 60,805,899
$ 1,329,725 $ (2,215,483) $ (11,979,457)
17,242,964 13,230,183 24,221,888
$ 18,572,689 $ 11,014,700 $ 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
175,860
60,331
(2,003,892)
(1,767,701)
$ 64,964,803
$ 975,375
14,476,107
$ 15,451,482
415,837
22,028
(5,184,169)
(4,746,304)
$ 67,289,841
$ (588,316)
10,344,438
$ 9,756,122
CITY OF WICHITA FALLS, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
2007-2008
2008-2009
2009-2010
2010-2011
General Fund
Reserved
$ 2,686,432
$ 1,499,613
$ 1,392,329
$ -
Unreserved
14,500,836
13,042,044
14,294,519
-
Nonspendable
-
-
-
478,617
Assigned
-
-
-
579,022
Unassigned
-
-
-
16,002,361
Total general fund
$ 17,187,268
$ 14,541,657
$ 15,686,848
$ 17,060,000
All other Governmental Funds
Reserved
$ 2,888,944
$ 6,254,620
$ 11,753,749
$ -
Unreserved, reported in:
Special revenue funds
6,180,559
4,808,127
1,713,168
-
Capital projects funds
15,033,333
10,963,970
1,850,806
-
Nonspendable
-
-
-
81,376
Restricted
-
-
-
10,927,373
Committed
-
-
-
1,762,248
Unassigned
-
-
-
(24,418)
Total all other governmental funds
$ 24,102,836
$ 22,026,717
$ 15,317,723
$ 12,746,579
Note : GASB 54 was implemented in 2010-11, which changed the terminology for fund balances. Prior years were not reclassified.
114
EXHIBIT 1-3
Fiscal Year
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
352,835
384,574
180,992
210,069
157,494
131,311
1,010,976
958,924
1,949,792
1,102,026
878,314
1,059,850
16,570,675
16,226,597
14,886,199
13,682,061
13,161,690
13,138,307
$ 17,934,486
$ 17,570,095
$ 17,016,983
$
14,994,156
$
14,197,498
$
14,329,468
89,668
84,940
120,573
95,283
84,013
-
10,744,065
26,934,100
13,834,375
5,977,567
5,729,434
5,617,402
2,305,013
2,896,812
2,831,488
2,734,119
2,694,718
2,670,133
(269,288)
(269,288)
(460,883)
(550,863)
(773,238)
(1,224,316)
$ 12,869,458
$ 29,646,564
$ 16,325,553
$
8,256,106
$
7,734,927
$
7,063,219
CITY OF WICHITA FALLS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
Revenues
Taxes
Charges for services
Licenses and permits
Fines and forfeitures
Intergovernmental revenue
Contributions
Miscellaneous revenue
Total revenues
Expenditures
Administrative services
Police
Fire
Parks and recreation
Accounting/finance
Community development
Public works
Health
Traffic and transportation
Multi -Purpose Events Center
Capital outlay
Debt service - principal
Debt service - interest
Debt service - bond issuance costs
Total expenditures
Excess of revenues over (under)
expenditures
Other Financing Sources (Uses)
Proceeds from bonds
Capital lease proceeds
Payment to refunded bonds escrow agent
Transfers in
Transfer out
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
2007-2008
2008-2009
2009-2010
2010-2011
$ 55,155,574
$ 55,752,982
$ 55,006,901
$ 57,122,006
3,270,930
3,689,717
3,715,832
3,886,160
2,116,140
1,887,434
1,990,328
2,064,972
1,964,391
1,970,612
2,214,884
2,209,026
8,428,310
9,287,371
14,783,860
11,041,679
6,137,663
3,234,759
5,711,904
4,542,149
5,369,689
3,804,438
3,597,927
3,216,734
82,442,697
79,627,313
87,021,636
84,082,726
10,873,576
11,315,351
9,694,632
10,235,720
19,524,824
20,182,150
20,182,168
20,235,012
12,206,774
12,833,183
12,671,757
12,897,810
4,841,597
5,457,410
5,359,692
4,966,060
2,087,572
2,327,608
2,279,241
2,367,814
6,925,581
7,433,617
7,315,631
7,124,851
5,606,784
5,452,172
5,355,585
5,170,624
4,775,418
4,950,213
4,896,841
4,796,934
2,459,070
2,292,890
2,245,038
2,233,311
3,506,091
3,208,713
3,358,470
3,436,052
15,219,394
12,088,928
8,758,421
7,600,491
2,395,000
2,065,000
2,240,000
2,115,000
1,456,540
1,364,831
1,781,176
1,934,935
91,878,221
90,972,066
86,138,652
85,114,614
(9,435,524)
(11,344,753)
882,984
(1,031,888)
-
10,840,779
3,930,000
-
7,268,938
5,530,309
5,676,896
6,239,483
(8,194,534)
(9,433,265)
(16,053,685)
(6,405,589)
(925,596)
6,937,823
(6,446,789)
(166,106)
$(10,361,120) $ (4,406,930) $ (5,563,805) $ (1,197,994)
5.02%
4.35% 5.20% 5.22%
115
EXHIBIT 1-4
Fiscal Year
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
$ 57,607,312
$ 58,613,615
$ 59,739,545
$ 61,007,519
$ 64,201,677
$ 64,886,137
3,710,371
3,422,621
3,331,183
3,362,172
3,370,573
3,340,750
2,002,559
2,234,081
2,048,293
1,941,205
1,971,212
1,905,507
2,409,792
2,435,625
2,402,794
2,262,781
2,561,817
2,795,215
14,488,236
11,722,524
18,081,798
12,401,075
13,537,869
10,833,921
3,446,313
3,828,862
5,712,190
4,011,809
5,208,537
5,133,510
3,261,049
3,463,425
3,642,155
3,118,424
3,120,633
4,239,955
86,925,632
85,720,753
94,957,958
88,104,985
93,972,318
93,134,995
12,158,781
12,677,867
13,347,029
14,413,640
14,805,672
14,870,206
20,545,965
20,884,744
21,539,820
21,997,801
23,580,992
23,883,109
13, 277,876
13,807,699
14,085,219
14, 719,074
16,077,272
16,536,044
4,833,743
5,157,417
5,197,591
5,065,222
5,204,296
5,277,544
845,076
793,960
831,313
747,341
702,883
719,865
6,829,018
6,760,826
6,559,064
6,440,963
6,678,753
6,931,301
5,777,249
5,325,013
5,613,107
5,449,860
5,555,929
5,732,327
4,894,351
5,004,381
5,057,946
5,217,970
5,483,135
5,649,913
2,194,962
2,468,051
2,274,249
2,395,837
2,224,511
2,117,966
3,062,507
3,365,932
3,536,661
3,747,189
3,718,058
3,231,913
8,537,049
7,867,468
5,230,269
5,368,119
6,343,551
6,206,493
2,270,000
2,515,000
3,000,000
3,350,000
3,745,000
3,525,000
1,604,392
1,618,299
2,342,331
1,998,760
1,764,412
1,591,022
137,461
310,777
-
-
-
-
86,968,430
88,557,434
88,614,599
90,911,776
95,884,464
96,272,703
(42,798)
(2,836,681)
6,343,359
(2,806,791)
(1,912,146)
(3,137,708)
7,836,338
23,869,261
-
-
13,482,256
-
1,452,760
2,666,243
-
47,848
(13,295,568)
-
(4,484,698)
(3,831,570)
-
-
-
-
6,411,855
7,181,518
16,643,513
17,594,910
7,574,334
8,965,770
(10,176,091)
(10,636,058)
(36,860,991)
(23,335,238)
(6,961,378)
(6,367,674)
1,040,164
19,249,394
(20,217,478)
(5,692,480)
799,644
2,598,096
$ 997,366
$ 16,412,713
$(13,874,119)
$ (8,499,271)
$ (1,112,502)
$ (539,612)
4.94%
5.12%
6.41 %
6.25%
6.15%
5.68%
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
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
2015-2016
34,567,763
22,373,768
5,035,947
1,910,477
286,986
26,736
64,201,677
2016-2017
35,110,173
22,413,397
5,193,721
1,878,061
281,687
9,098
64,886,137
116
EXHIBIT 1-6
Fiscal
Year
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
CITY OF WICHITA FALLS, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY -
LAST TEN FISCAL YEARS (UNAUDITED)
Real Property
Assessed
Value
$ 3,389,094,572
3,553,825,553
3, 622, 501,148
3,693,399,778
3,714,449,662
3,749,608,055
3,777,010,620
3,859,560,337
3,944,783,610
4,031,6E
Personal
Property
Total
Total
Assessed
Assessed
Direct
Estimated
Value
Value
Tax Rate
Actual Value
$ 802,449,151
$4,191,543,723
$0.59246
$4,191,543,723
877,030,381
4,430,855,934
0.59526
4,430,855,934
803,697,677
4,426,198,825
0.60526
4,426,198,825
728,642,824
4,422,042,602
0.62526
4,422,042,602
716,365,316
4,430,814,978
0.62526
4,430,814,978
715,113,536
4,464,721,591
0.63526
4,464,721,591
771,002,233
4,548,012,853
0.63526
4,548,012,853
765,251,406
4,624,811,743
0.65526
4,624,811,743
820,827,696
4,765,611,306
0.70598
4,765,611,306
Ratio of Total
Assessed to
Total Estimated
Actual Value
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
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
AS
Total
M&O
I&S Total
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
2015-2016
0.69
0.02
0.71
0.55
-
0.55
1.17
0.14
1.31
2016-2017
0.69
0.02
0.71
0.58
0.03
0.61
1.17
0.37
1.54
City View ISD (2)
Iowa Park CISD (3)
Wichita
Falls ISD (4)
Grand
M&O
I&S Total
M&O
AS
Total
M&O
I&S Total
Total
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
2015-2016
1.17
0.25
1.42
1.17
0.16
1.33
1.04
0.19
1.23
6.55
2016-2017
1.17
0.25
1.42
1.17
0.16
1.33
1.04
0.19
1.23
6.84
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
118
EXHIBIT 1-8
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
SEPTEMBER 30, 2017
Taxable
Assessed
Taxpayer
Value
GGP - Sikes Senter LLC
$ 62,000,000
Oncor Electric Delivery Co
38,904,630
North American Pipe Corp
22,931,911
Wal-Mart Stores East Inc
20,645,100
Atmos Energy / Mid -Tex Division
19,317,860
Wal-Mart Stores Texas LP
19,295,250
Quail Creek Crossing Ltd
17,186,000
Kell West Regional Hospital
15,089,127
Lowe's Home Centers Inc.
12,176,200
Cryovac Sealed Air Corporation
11,732,890
Southwestern Bell
-
United Supermarkets LLC
-
HD Development Properties
-
Clinics of North Texas
-
Totals
$ 239,278,968
Source:
Wichita Appraisal District
2016-2017
2007-2008
Percentage
Percentage
of Total
Taxable
of Total
Assessed
Assessed
Assessed
Rank
Valuation
Value
Rank
Valuation
1
1.28%
$ 54,134,300
1
1.02%
2
0.80%
40,973,290
2
0.77%
3
0.47%
13,068,062
5
0.25%
4
0.43%
35,170,703
3
0.66%
5
0.40%
-
N/A
0.00%
6
0.40%
-
N/A
0.00%
7
0.35%
-
N/A
0.00%
8
0.31%
11,352,391
9
0.21%
9
0.25%
12,953,978
6
0.24%
10
0.24%
-
N/A
0.00%
N/A
0.00%
30,638,056
4
0.58%
N/A
0.00%
12,327,913
7
0.23%
N/A
0.00%
11,960,975
8
0.22%
N/A
0.00%
11,109,760
10
0.21 %
4.93%
$ 233,689,428
4.39%
119
po
T E X A S
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
2007-2008
$ 24,833,219
$ 24,408,683
98.29%
$ 308,491
$ 24,717,174
99.53%
2008-2009
26,375,113
25,905,854
98.22%
370,042
26,275,896
99.62%
2009-2010
26,752,242
26,166,043
97.81%
391,480
26,557,523
99.27%
2010-2011
27,649,264
27,179,642
98.30%
313,366
27,493,008
99.43%
2011-2012
27,704,114
27,306,706
98.57%
295,426
27,602,132
99.63%
2012-2013
28,362,591
27,906,520
98.39%
267,582
28,174,102
99.34%
2013-2014
28,876,552
28,375,563
98.27%
238,910
28,614,473
99.09%
2014-2015
30,270,748
29,809,308
98.48%
243,133
30,052,441
99.28%
2015-2016
33,644,264
33,124,968
98.46%
226,550
33,351,518
99.13%
2016-2017
34,228,872
33,694,059
98.44%
-
33,694,059
98.44%
120
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
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
2015-2016
16,129,132
31,138,675 -
2,857,166
87,938,263
2016-2017
14,132,973
29,435,100 -
2,466,589
83,098,973
121
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
$ 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
51,322,900
-
399,915
16,957,523
206,743,574
8.63%
1,974.44
46,298,092
-
360,951
19,142,615
194,935,293
8.14%
1,861.42
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
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
2015-2016
16,129,132
31,138,675
47,267,807
0.99%
451.42
2016-2017
14,132,973
29,435,100
43,568,073
0.90%
416.03
122
EXHIBIT 1-12
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT (UNAUDITED)
SEPTEMBER 30, 2017
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
$ 46,034,662
100%
$ 46,034,662
Overlapping:
Wichita County
8,911,826
100%
8,911,826
Burkburnett Independent School District
51,731,656
25%
12,932,914
City View Independent School District
9,814,094
90%
8,832,685
Iowa Park Consolidated Independent
School District
16,878,962
2%
337,579
Wichita Falls Independent School District
103,683,212
99%
102,646,380
Total overlapping
191,019,750
133,661,384
Total direct and overlapping bonded debt
$ 237,054,412
$179,696,046
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.
123
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN -
LAST TEN FISCAL YEARS (UNAUDITED)
Total assessed property value per 2016 tax roll
Maximum tax rate *
Current tax rate for 2015 tax year
Maximum tax rate in excess of 2015 tax rate
Total legal debt margin
$ 2.25/$100
.70598/$100
$ 4,849,376,974
1.54402/$100
$ 74,875,350
2007-2008
2008-2009
2009-2010
Assessed value
$ 4,191,543,723
$ 4,430,855,934
$ 4,426,198,825
Maximum tax rate
$ 2.25/$100
$ 2.25/$100
$ 2.25/$100
Current tax rate
.59246/$100
.59526/$100
.60526/$100
Maximum tax rate in excess of current rate
1.65754/$100
1.65474/$100
1.64474/$100
Total legal debt margin
$ 69,476,514
$ 73,319,145
$ 72,799,463
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 2015 tax rate was $.70598
per $100 assessed valuation.
* Maximum tax levy established by City Charter
2010-2011
$ 4,422,042,602
$ 2.25/$100
.62526/$100
1.62474/$100
$ 71,846,695
124
EXHIBIT 1-13
Fiscal Year
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
$ 4,430,814,978
$ 4,464,721,591
$ 4,548,012,853
$ 4,624,811,743
$ 4,765,611,306
$ 4,849,376,974
$ 2.25/$100
$ 2.25/$100
$ 2.25/$100
$ 2.25/$100
$ 2.25/$100
$ 2.25/$100
.62526/$100
.63526/$100
.63526/$100
.65526/$100
.70598/$100
.70598/$100
1.62474/$100
1.61474/$100
1.61474/$100
1.59474/$100
1.54402/$100
1.54402/$100
$ 71,989,223
$ 72,093,645
$ 73,438,583
$ 73,753,723
$ 73,581,992
$ 74,875,350
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
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
2015-2016
42,499,482
20,415,375
22,084,107
2016-2017
43,054,453
21,643,920
21,410,533
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.
125
EXHIBIT 1-14
Debt Service Requirement
Principal (3)
Interest
Total
Coverage
$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
4,625,000
3,356,255
7,981,255
2.77
2,635,000
3,777,314
6,412,314
3.34
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)
2007-2008
107,847
$ 4,783,049,824
$ 44,350
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%
2015-2016
104,710
2,394,298,860
22,866
32.5
13.2
15,181
4.8%
2016-2017
104,724
2,395,980,396
22,879
32.5
13.2
15,124
3.4%
Sources:
(1) City of Wichita Falls Planning Department for all years, except for 2010-13 from US Bureau of Census.
(2) U.S. Bureau of Census Department of Numbers
(3) Wichita Falls I.S.D. - Educational level is grade equivalent of graduating senior
(4) Texas Workforce Commission
126
EXHIBIT 1-16
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO (UNAUDITED)
SEPTEMBER 30, 2017
2016-2017
2007-2008
Percentage
Percentage
of Total
of Total
City
City
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Sheppard Air Force Base
12,581
1
17.60%
12,201
1
17.06%
North Texas State Hospital
2,071
2
2.90%
1,987
3
2.78%
United Regional Health Care System
2,021
3
2.83%
1,794
4
2.51%
Wichita Falls ISD
1,992
4
2.79%
2,000
2
2.80%
Midwestern State University
1,315
5
1.84%
1,222
6
1.71%
City of Wichita Falls
1,238
6
1.73%
1,576
5
2.20%
Wal-Mart - 3 locations
1,140
7
1.59%
1,188
7
1.66%
Howmet Corp. WF Casting Division
850
8
1.19%
1,020
8
1.43%
James V. Allred Prison Unit
806
9
1.13%
908
9
1.27%
United Supermarkets - 3 locations
778
10
1.09%
-
N/A
-
AT&T Wireless
-
N/A
-
836
10
1.03%
Totals
24,792
34.69%
24,732
34.45%
Sources:
2006-2007 data is from Texas Workforce Commission. 2015-2016 data is from Wichita Falls Chamber of Commerce.
127
CITY OF WICHITA FALLS, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
2007-2008
2008-2009
2009-2010
2010-2011
Administrative services
105.1
104.6
102.0
97.0
Police
293.0
294.0
295.0
296.5
Fire
164.0
164.0
164.0
162.0
Parks and recreation
82.9
82.9
84.8
88.7
Accounting/finance
25.5
26.0
26.0
25.0
Community development
40.5
41.0
40.1
40.0
Public works
80.2
80.8
80.8
79.2
Health
72.5
69.0
68.4
71.5
Traffic and transportation
52.6
50.6
51.7
52.6
Multi -Purpose Events Center
22.8
23.0
23.0
22.8
Water and sewer
179.5
179.9
180.1
179.6
Sanitation
82.0
82.5
82.5
82.5
Municipal Airport
1.6
1.6
1.6
1.6
Kickapoo Airport
4.4
4.4
5.4
5.4
Transit
19.6
22.1
21.6
21.6
Stormwater Drainage
1.3
1.3
1.3
1.3
128
EXHIBIT 1-17
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
94.6
94.3
94.1
95.1
94.1
86.0
298.5
299.5
300.0
299.0
299.0
295.8
162.0
162.5
162.5
162.5
162.5
162.5
89.7
92.9
92.1
92.6
92.6
89.5
27.0
27.0
27.0
26.4
26.2
26.0
40.0
42.0
42.0
41.0
41.0
40.0
78.5
78.5
78.5
78.5
78.5
72.5
72.0
81.9
78.7
77.5
78.7
78.8
53.6
53.6
56.1
56.1
57.0
52.0
22.8
22.8
22.8
22.8
22.8
22.8
180.2
182.1
189.1
187.7
188.6
186.1
82.5
81.5
83.5
83.5
85.5
86.5
1.6
1.6
1.6
3.0
1.6
1.6
5.6
6.4
3.4
3.4
4.4
4.4
22.2
24.7
26.2
26.7
26.7
25.2
1.3
1.8
1.8
1.8
1.8
4.8
CITY OF WICHITA FALLS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
2007-2008
2008-2009
2009-2010
2010-2011
General government
Building permits issued
7,420
6,769
6,802
8,130
Building inspections conducted
11,425
9,565
11,038
13,321
Police
Physical arrests
6,752
7,186
6,235
5,845
Parking violations
197
-
109
125
Traffic violations
16,236
23,253
25,558
23,780
Fire
Emergency responses
8,684
8,687
8,693
9,139
Fires extinguished
1,340
718
654
703
Inspections
2,647
3,250
3,281
3,114
Refuse collection
Refuse collected (tons)
168,681
161,243
156,630
141,251
Recyclables collected
21,624
22,010
16,923
16,780
Library
Volumes in collection
184,231
185,009
185,009
193,064
Total volumes borrowed
352,408
368,685
368,685
344,107
Water
New connections
212
146
48
64
Water main breaks
898
872
724
1,250
Average daily consumption
22,511
19,200
19,851
25,798
(thousands of gallons)
Wastewater
Average daily sewage treatment
11,410
7,670
12,435
10,080
(thousands of gallons)
Transit
Total route miles
488,842
530,771
536,181
552,238
Passengers
324,666
327,463
340,181
374,277
129
EXHIBIT 1-18
Fiscal Year
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-17
7,303
9,979
8,542
7,399
7,413
7,874
11,834
12,823
13,472
12,852
11,302
10,803
6,182
5,978
6,042
5,036
5,214
5,845
529
65
43
90
110
175
21,660
21,651
22,538
18,792
19,424
23,514
9,027
8,979
8,708
9,392
9,432
8,442
583
591
452
432
477
449
3,221
3,198
3,316
2,931
4,133
3,175
116,961
124,250
121,502
76,145
136,646
136,911
18,743
18,884
14,643
1,384
16,134
18,232
177,229
173,996
174,993
194,715
176,160
820,301
327,336
276,065
293,860
293,364
282,808
294,798
119
134
(344)
74
(2,523)
3,144
1,028
954
944
863
696
519
20,269
15,564
13,207
12,051
14,974
14,180
10,551
9,217
6,452
8,440
7,900
9,877
586,893
572,744
575,004
591,417
586,565
591,538
485,101
460,484
462,853
486,104
493,164
464,838
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
2007-2008
2008-2009 2009-2010 2010-2011
1
1
1
1
103
105
115
114
8
8
8
8
36
36
36
36
515
529
514
514
7,976
8,203
7,958
8,084
102
104
104
104
1,200
1,200
1,200
1,200
47
40
39
39
1
1
1
1
720
720
572
572
2,264
2,264
2,545
2,547
21,000
22,500
37,000
37,000
538
550
543
543
117
117
97
97
21,410
22,800
21,410
24,410
12
12
14
14
130
EXHIBIT 1-19
Fiscal Year
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
1
1
1
1
1
1
114
113
113
113
113
113
8
8
8
8
8
8
36
36
36
36
36
36
515
515
515
515
530
531
7,931
7,942
7,972
7,996
8,015
8,451
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
577
578
579
580
806
782
2,579
2,588
2,588
2,593
2,842
2,822
37,000
37,000
37,000
37,000
37,000
37,000
545
546
547
548
599
592
97
98
98
98
98
98
24,410
21,410
21,410
21,410
21,410
21,410
14
14
14
13
13
13
4e-lale , Cfmrtmqlties
tau
90
Me
r
C
O 60
E
50
4C
O
0 3(
21
1
CITY OF WICHITA FALLS, TEXAS
CASH AND INVESTMENTS
0Cf.1lCIIIUCI JU, 2017
(UNAUDITED)
EXHI BI T J - 1
131
••ease•• •i
EXHIBIT J-2
cn
c
0
E
c
cn
c�
0
0
200
150
CITY OF WICHITA FALLS, TEXAS
TOTAL BONDS PAYABLE
2015
September 30,
(UNAUDITED)
132
2016
EXHIBIT J-3
20
15
5
CITY OF WICHITA FALLS, TEXAS
GENERAL OBLIGATION BONDS PAYABLE
September ;3u, 2017
(UNAUDITED)
133
100
75
c
O
E
50
L
O
0
25
CITY OF WICHITA FALLS, TEXAS
REVENUE BONDS PAYABLE
September 30, 2017
(UNAUDITED)
134
EXHIBIT J-4
18
16
14
C
O 12
E 10
C
1-1
to 8
L
O 6
4
CITY OF WICHITA FALLS, TEXAS
GENERAL FUND EQUITY
September 30, 2017
o Unassigned oAssigned/Committed
(UNAUDITED)
135
EXHIBIT J-5
35 ,
30
C 25
O
E 20
c
L
15
O
10
5
I
CITY OF WICHITA FALLS, TEXAS
COMPARISON OF TAX LEVY AND COLLECTIONS
-- - I Zuin
❑Tax Collections OTax Levy 2017
(UNAUDITED)
EXHIBIT J-6
ax Levy
Collections
136
CITY OF WICHITA FALLS, TEXAS
REVENUES BY SOURCE - FYE 9/30/17
Fines and forfeitures
2%
Taxes
41%
Miscellaneous Contributions Intergovernmental
3% 3% 9%
(UNAUDITED)
137
-ges for services
41%
and permits
1%
EXHIBIT J-7
CITY OF WICHITA FALLS, TEXAS
EXPENDITURES BY FUNCTION - FYE 9/30/17
Administrative Services
16%
Debt Ser
5%
Capital Outlay
4%
MPEC
2%
Traffic and Transportatio
11%
Public Works
26%
(UNAUDITED)
138
pnlira
EXHIBIT J-8
Fire
9%
Parks and Recreation
4%
Accounting/Finance
2%
munity Development
4%
0
6C
5
CITY OF WICHITA FALLS, TEXAS
GENERAL GOVERNMENTAL REVENUES (GENERAL FUND ONLY)
Years Ended September 30, `v'v 2017
(UNAUDITED)
139
EXHIBIT J-9
75 1'
T
c
0
E
65
c�
0
0
60
55
CITY OF WICHITA FALLS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES (GENERAL FUND ONLY)
2008 2009
2010 11 L
20-_ __ �•J
2012 2013
2014
2015
Years Ended September 30,
(UNAUDITED)
140
2016
2017
EXHIBIT J-10
\ GUicki� ��(s
4131W,151<1es *olden O��o�tc�n�7ie5: