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1989 Annual Financial Reporta Wichita TEXAS I.. for Year Ended September 30, 1989 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1989 RECEIVED IN CITY CLERK'S OFFICE Date By �/�� Time PREPARED BY: -DErPARTMEi: _ ... . �.....:E$ Fitm L. wl-7-ITMA, b:Lr, %-.LVI% Vr C1LWAAeff / r , /m"w , W1C�11� ' S TEXAS On the Cover: One of the most beautiful areas in the City of Wichita Falls is Lucy Park. The park is approximately 168 acres and features six miles of paved trails entwined with more rustic trail areas such as the one depicted by the illustration on the cover. The trails are used extensively for walking, bicycle riding, and skating. Other special items in the park are a municipal swimming pool, a Log Cabin built to commemorate the City's Centennial Anniversary, covered pavilions and a children's playground. The park lies adjacent to the Wichita River and can be seen from I-44 traveling south. It takes only a quick turn onto the Seymour Highway for visitors to the City to enjoy one of the prettiest municipal parks in the State of Texas. CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1989 TABLE OF CONTENTS INTRODUCTORY SECTION Exhibit Page Letter of Transmittal i-ix GFOA Certificate of Achievement x organizational chart xi List of Principal officials xii FINANCIAL SECTION Independent Auditor's Report 1-2 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined Balance Sheet - All Fund Types and Account Groups A-1 3-4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds A-2 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General, special Revenue, and Debt Service Funds A-3 6 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types A-4 7 Combined Statement of Changes in Financial Position - All Proprietary Fund Types A-5 8 Notes to the Financial Statements 9-39 REQUIRED SUPPLEMENTARY INFORMATION: Defined Contribution Pension Plan - Analysis of Funding Progress - Last Ten Plan Years B-1 40 Defined Contribution Pension Plan - Revenues by source and Expenses by Type - Last Ten Plan Years B-2 41 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS: General Fund: Comparative Balance Sheet C-1 42 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-2 43-46 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1989 TABLE OF CONTENTS (CONT'D.) Exhibit Paqe COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS (CONT'D.): Special Revenue Funds: Combining Balance Sheet D--1 47 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D--2 48 Revenue sharing Fund: comparative Balance Sheet D--3 49 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D--4 50 Civic/Community Promotion Fund: Comparative Balance Sheet D--5 51 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D--6 52 Hotel/Motel Tax Fund: Comparative Balance Sheet D--7 53 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D--8 54 Community Development Block Grant Fund: Comparative Balance Sheet D--9 55 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D-10 56 Special Revenue Fund: Comparative Balance Sheet D-11 57 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D-12 58 Section 8 Housing Fund: Comparative Balance Sheet D-13 59 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D-14 60 Rental Rehabilitation Program Fund: Comparative Balance Sheet D-15 61 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D-16 62 Debt Service Fund: Comparative Balance Sheet E-1 63 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual E-2 64 Capital Projects Funds: Combining Balance Sheet F-1 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balance F-2 66 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1989 TABLE OF CONTENTS (CONT'D.) Exhibit Paqe COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS (CONT'D.): Enterprise Funds: combining Balance Sheet G-1 67-68 combining Statement of Revenues, Expenses and changes in Retained Earnings G-2 69 combining Statement of changes in Financial Position G-3 70 Internal Service Fund: Comparative Balance Sheet H-1 71 Statement of Revenues, Expenses and Changes in Retained Earnings H-2 72 Statement of Changes in Financial Position H-3 73 Trust and Agency Funds: Combining Balance Sheet I-1 74 Expendable Trust Funds - Combining Statement of Revenues, Expenditures and Changes in Fund Balance I-2 75 Agency Funds - Combining Statement of Changes in Assets and Liabilities I-3 76-78 SUPPORTING SCHEDULES: combined Schedule of Bonded Debt and Interest Maturities J--1 79 Combined Schedule of Bonds Payable J--2 80-81 Debt Service coverage - Revenue Bonds J--3 82 General Fixed Assets - Comparative Schedule of General Fixed Assets - By Sources J--4 83 General Fixed Assets - Schedule of Changes in General Fixed Assets - By Sources J--5 84 General Fixed Assets - Schedule of General Fixed Assets - By Function and Activity J--6 85 General Fixed Assets - Schedule of Changes in General Fixed Assets - By Function and Activity J--7 86 Airport Fund - Plant, Equipment and Depreciation J--8 87 Transit Fund - Plant, Equipment and Depreciation J--9 88 Sanitation Fund - Plant, Equipment and Depreciation J-10 89 Water and Sewer Fund - Plant, Equipment and Depreciation J-11 90 Internal Service Fund - Plant, Equipment and Depreciation J-12 91 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1989 TABLE OF CONTENTS (CONT'D.) Exhibit Paqe STATISTICAL SECTION (UNAUDITED) General Governmental Expenditures by Function (General Fund Only) - Last Ten Fiscal Years K--1 92 General Governmental Revenues by Source (General Fund Only) - Last Ten Fiscal Years K--2 93 Property Tax Levies and Collections - Last Ten Fiscal Years K--3 94 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years K--4 95 Property Tax Rates and Tax Levies - All overlapping Governments - Last Ten Fiscal Years K--5 96 Ten Largest Taxpayers K--6 97 Special Assessment collections (Capital Improvement Assessments Fund) - Last Ten Fiscal Years K--7 98 computation of Legal Debt Margin K--8 99 Ratio of Net General Bonded Debt to Assessed Value and Net General Bonded Debt Per Capita - Last Ten Fiscal Years K--9 100 Ratio of Annual Debt service Expenditures for General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years K-10 101 Computation of Direct and Overlapping Debt K-11 102 Revenue Bond Coverage - Water and Sewer Revenue Bonds - Last Ten Fiscal Years K-12 103 Demographic Statistics - Last Ten Fiscal Years K-13 104 Property value, Building Permits and Bank Deposits - Last Ten Fiscal Years K-14 105 Miscellaneous Statistical Data K-15 106 schedule of Insurance Coverage K-16 107-110 Graphics: Cash and Short -Term Investments L--1 111 Total Bonds Payable L--2 112 General obligation Bonds Payable L--3 113 Revenue Bonds Payable L--4 114 Total Fund Equity L--5 115 Comparison of Tax Levy and Tax collections L--6 116 Analysis of Revenues By Source L--7 117 Analysis of Expenditures By Function L--8 118 General Governmental Revenues (General Fund Only) - Last Ten Fiscal Years L--9 119 General Governmental Expenditures (General Fund Only) - Last Ten Fiscal Years L-10 120 INTRODUCTORY SECTION Wich1ta�MMS ,_ X . SXUL February 15, 1990 The Honorable Mayor and Members of the City Council James Berzina, City Manager City of Wichita Falls, Texas The Comprehensive Annual Financial Report of the City of Wichita Falls, Texas, for the year ended September 30, 1989, is submitted herewith. Local governmental accounting principles are primarily promulgated by the Governmental Accounting Standards Board (GASB). These principles have been adhered to in the preparation of this report. The Notes to the Financial Statements presented with the General Purpose Financial Statements section are an integral part of this comprehensive annual financial report and should be read for a fuller understanding of the statements and information presented within. 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 is accurate in all material aspects; that it is 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 activity have been included. The Comprehensive Annual Financial Report of the City of Wichita Falls, Texas, is reported in three sections; introductory, financial and statistical. The introductory section includes this transmittal letter, the government's organizational chart and a list of principal officials. The financial section includes the General Purpose Financial Statements and the combining and individual fund and account group financial statements and schedules, as well as the auditor's report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi -year basis. This report includes all funds and account groups of the City. 1300 7th Street P.O. Box 1431 817/761-7611 Wichita Falls, Texas 76307 The City provides the full range of basic services contemplated by charter on a continuing basis. These basic services include public safety (police, fire and building inspection), highways and streets, health and welfare services, culture -recreation, public improvements, planning and zoning and general administration services. In addition, the City provides water and sewer services for its citizens. In accordance with NCGA Statement 3, which addresses the issue of defining the reporting entity with respect to other agencies, institutions, commissions, public authorities, or other governmental organizations for inclusion in the reporting entity's general purpose financial statements, four organizations were evaluated. They were the Employee Benefit Trust Fund, Firemen's Relief and Retirement Board, Housing Authority of the City of Wichita Falls, and the Wichita County/City Hospital Board. Only the Employee Benefit Trust Fund met the criteria used to evaluate each organization and is included in these financial statements. The other three did not meet the criteria of financial interdependency and therefore were not included in this report. These organizations have substantial autonomy and separate governmental entity characteristics and are governed by separate boards. However, they are not funded by the City. The City is not obligated to finance any deficits they may incur and the City does not guarantee their indebtedness. ECONOMIC CONDITION AND OUTLOOK The City of Wichita Falls is located in North Central Texas, approximately 130 miles northwest of the Dallas - Fort Worth metropolitan area and 145 miles southwest of Oklahoma City. The City of Wichita Falls is the county seat of Wichita County and was incorporated in 1889. There are 50 square miles of land in the City's boundary. Wichita Falls is the largest city within a 100-mile radius and, therefore, a trade center for a 22-county area in southern Oklahoma and north Texas. Retail trade includes building materials, general merchandise, food stores, automotive, clothing, home furnishings, restaurants, drug stores, liquor stores, and miscellaneous retail. Wichita Falls is also a regional medical center primarily serving a 16-county area. Approximately 240 physicians practice in this area, and there are 19 general and specialized clinics in Wichita Falls. The community has a 5.7% unemployment rate compared to a state rate of 6.3% as of September 30, 1989. MAJOR INITIATIVES For The Year. The City of Wichita Falls has identified programs to meet citizens requests for services and to safeguard the environment, in conformity with applicable federal and state standards. Some of these programs include a study of the need for a new library and the initiation of work on the Holliday Creek channel expansion. ii Major Initiatives, Continued. For the Future. The City was notified on October 18, 1989 that the final commitment has been made by the Texas Water Development Board for financial assistance in the amount of $21,350,000 from the State Water Pollution Control Revolving Fund. This will be evidenced by the Board's purchase of $21,350,000 City of Wichita Falls Water and Sewer System Subordinate Lien Revenue bonds, maturing September 1, 1993 through 2012. The proceeds from this loan will be used for sewer treatment plant renovation and expansion of the installation of a large capacity sewage collection interceptor line. The City currently is evaluating opportunities for rehabilitation and economic development concepts that will enhance the financial viability of the City in the future. FINANCIAL INFORMATION In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls as deemed appropriate by the City Manager. Internal accounting controls are 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 recognizing that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) 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 accounting controls adequately safeguards assets and provide reasonable assurance of proper recording of financial transactions. Budgetary control is maintained at the class level 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. Open encumbrances are reported as reservations of fund balance at September 30, 1989. GOVERNMENTAL FUND TYPES, General Fund. Revenues in General Fund totaled $27,961,067 in the 1988-89 fiscal year, an increase of 3.4% from the 1987-88 fiscal year. The increase is due to an increase in the sales tax and interest income. General property taxes produced 46.25% of general revenues compared to 47.08% in 1987-88 and 48.61% in 1986-87. iii Governmental Fund Types, Continued. Increase (Decrease) Percent Over Prior Revenue Source Amount of Total Year Taxes $23,035,386 82.39% $ 839,668 Charges for service 1,261,555 4.51 ( 34,074) Licenses and permits 440,857 1.58 (158,058) Fines 834,328 2.98 (51,477) Intergovernmental revenue 791,383 2.83 87,196 Miscellaneous revenue 1.597.558 5.71 251,405 Totals $27,961,067 100.00% $ 934,660 Assessed valuation was $2,299,242,866 based on 100% of market value. Current tax collections were 96.31% on the tax levy, down .18% from last year. The ratio of total collections (current and delinquent) to the current tax levy was 98.95%. Allocation of the property tax levy by purpose for the year ended September 30, 1989, and the preceding two fiscal years was as follows: Purposes General Government Debt Service Fund 1988-89 $12,413,867 2,255,081 1987-88 $12,413,891 2,255,057 1986-87 $12,116,281 2,285,575 The increase in levels of expenditures for major functions of the City over the preceding year are shown in the following tabulation: Function Amount Administrative Services $ 4,514,948 Police 7,677,500 Fire 5,240,285 Parks and Recreation 2,478,736 Accounting/Finance 418,733 Planning 336,887 Public Works 4,232,744 Health 1,830,962 Traffic and Transportation 1.249.506 Totals $27,980,301 Increase (Decrease) Percent Over Prior of Total Year 16.14% $( 33,106) 27.44 99,178 18.73 143,722 8.86 (457,910) 1.50 ( 14,044) 1.20 14,108 15.13 395,394 6.54 78,542 4.46 31.556 100.00% $ 257,440 iv Governmental Fund Types, Continued. Expenditures from the General Fund totaled $27,980,301, a increase of .93% over the 1987-88 fiscal year. Major changes are seen in the Fire Division for an increase in personnel related cost for full staffing of the fire stations. A decrease in the Parks Maintenance Division was for the completion of work on the softball complex. The Engineering Division of the Public Works Department has shown an increase for various street overlay projects and resurfacing of areas of the town. 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, 1989, was $.6378 per $100 which means that the City has a tax margin of $1.6122 per $100, and could raise up to $37,068,393 additional tax revenue a year from the present assessed valuation of $2,299,242,866 before the limit is reached. General Fund Balance. The fund balance of the general fund increased by 8.67 percent in 1989. The $851,278 increase provides the government with an additional margin for working days of expenditures. SPECIAL REVENUE FUNDS. The Civic/Community Promotion Fund is a Special Revenue Fund used to account for revenues from various rents and concessions associated with the Auditorium and the Activity Center. The Hotel/Motel Tax Fund is a Special Revenue Fund used to account for revenues from the City -imposed tax of 7% on rental of hotel/motel rooms within the City with a 6% State tax for a total of 13%. The Revenue Sharing Fund, Community Development Block Grant Fund, Rental Rehabilitation Fund and the Section 8 Housing Fund, which are used to subsidize rents and housing payments for lower income families within the City, are also included in the Special Revenue Funds. v CAPITAL PROJECTS FUNDS. The Capital Projects Funds are used to account for all resources used for the acquisition of capital facilities except those financed by enterprise funds. At the end of the fiscal year, completed projects are transferred to General Fixed Assets. During the 1988-89 fiscal period, expenditures from the Capital Projects Funds amounted to $889,410. Capital Projects Funds balances on hand as of September 30, 1989, were $11,468,880. The significant uncompleted project in Capital Projects Funds at the present time is: Holliday Creek Flood Control Project CAPITAL IMPROVEMENT ASSESSMENTS FUND. The Capital Improvement Assessment Fund was established to conform to current financial reporting standards. It is used to account for street and sidewalk paving projects. PROPRIETARY FUNDS, Water and Sewer. The Water and Sewer operations for the past three years is presented in the following tabulation: Water and Sewer: 1988-89 1987-88 1986-87 Income Available for Debt Service $5,867,611 $5,805,625 $4,230,749 Maximum Annual Debt Service 2,456,678 2,453,276 2,453,511 Maximum coverage (income available for debt service divided by maximum annual debt service) 2.39 2.37 1.72 Airport. Operating revenues of the Airport for the year ended September 30, 1989, were $200,895. This is an increase of 10.4% over the prior year. Operating expenses increased 17.0% to $320,966 compared to $274,272. This was due to refurbishing and improving the interior of the airport terminal. Transit. Operating revenues of the Transit system were consistent with the prior year: 88-89 - $153,955; 87-88 - $145,453; a modest increase of 5.8%. Operating expenses were: 88-89 $509,543; 87-88 $490,557; an increase of 3.8%. Sanitation. Sanitation revenues for the year ended September 30, 1989, were $5,401,001. In 87-88 they were $4,716,133, an increase of 14.5% from the prior year. Operating expenses increased 7.1% from $4,263,138 in 87-88 to $4,569,624 in 88-89. Internal Service Fund. Fleet Maintenance Internal Service Fund. The City uses an Internal Service Fund for improved maintenance over the vehicle fleet. Divisions which use the vehicles and equipment are charged a monthly rental fee for the use of the vehicle. vi Fiduciary Funds. Fiduciary Funds are set up for the purpose of accounting for money and property received from non -enterprise fund sources and held by a governmental unit in the capacity of trustee, custodian, or agent for individuals, governmental entities and non- public organizations. Included in the Fiduciary Funds are certain Employee Benefit Trust Fund, Wichita Falls Reinvestment Zone #1 Fund, Social Security Fund, Payroll Fund, Tax Collection Fund, Accounts Payable Fund, and Deferred Compensation Funds. The City of Wichita Falls, Texas created the Reinvestment Zone Number One on March 18, 1986 under Ordinance 22-86. Subsequent to the aforementioned date, the City of Wichita Falls, Texas contracted with the County of Wichita and the Wichita Falls Independent School District for a 15% reduction in the tax increment which these entities will be contributing to the Tax Increment Fund for Reinvestment Zone Number One; both of these contracts were passed and approved by Resolution 199-86 and 200-86 respectively on December 16, 1986. The City of Wichita Falls, Texas will be contributing 100% of the revenue from its tax increment. Wichita County and Wichita Falls Independent School District will be contributing 85% of the revenue from their tax increment. The Tax Increment Base for Reinvestment Zone Number One is as follows: City Wichita County School Taxable Tax Increment Base 1-1-86 $65,062,190 65,062,190 64,965,658 Tax Increment Base 1-1-89 $56,245,345 56,245,345 56,129,007 Current Captured Appraised Value 1-1-89 $1,569,119 1,569,119 1,555,274 Values for January 1, 1989 are subject to modifications by the Wichita Appraisal District, Appraisal Review Board. The Reinvestment Zone Number One has recognized revenues from the tax increment as of September 30, 1989, in the amount of $10,744.00. vii DEBT ADMINISTRATION. Outstanding general obligation September 30, 1989, totaled $20,995,000 and is considered 1 tax supported debt. The ratio of net bonded debt valuation and the amount of bonded debt per capita indicators of the City's debt position to municipal citizens and investors. The data for the 1988-89 fiscal follows: Net Direct Bonded Debt $20,410,200 The current ratings are as follows: General Obligation Bonds Water and Sewer Revenue Bonds bonds at :o be direct :o assessed are useful management, year was as Ratio of Debt of Assessed Debt Per Value Capita .89% $215 Moody's Investors Standard & Service Poor's Al AA Al A+ TREASURY MANAGEMENT. Cash which was temporarily idle during the year, including debt retirement funds, operating funds, and bond proceeds, was invested in government securities and repurchase agreements. The total amount of interest earned on these investments amounted to $3,600,516; an increase over the prior year of $654,731 or 22.2%. RISK MANAGEMENT. During 1988-89, the City of Wichita Falls continued a risk management program for worker's compensation. Various risk control techniques, including employee accident prevention training, have been utilized during the year to minimize accident -related losses. 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, selected by the Mayor and City Council. This requirement has been complied with and Mathis, West, Huffines and Co., P.C.'s opinion has been included in this report. The statistical section of this report was not included within the scope of the audit. 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, Texas, for its comprehensive annual financial report for the fiscal year ended September 30, 1988. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS. Our appreciation is extended to the various elected officials, department heads and employees responsible for the fair presentation of the comprehensive annual report and 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, we would like to acknowledge the special effort of the Department of Finance employees who contributed directly to the development of this report. The continuing support of Wichita Falls' elected officials and City Manager, who remain committed to fiscal integrity and financial leadership, is likewise appreciated. Sincerely yours, Fred L. Werner, CPA Director of Finance ix 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, 1988 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFR's) achieve the highest standards in government accounting and financial reporting. -;O� President Y�� Lrmt Executive Director x CITY OF WIC HITA FALLS ORGANIZATIONAL CHART MC MA FALL! anTENs aoAROs I COLINT ,A1D WE f■ Sli(A 1■1■1■ CITY MANAGER CITY ATTOIEY CITYy MFOIOIAiRMA1 1Q1 ■ A22STANT C"Y ""OEM I TRAFFX- AND � 1RAN90RTA110N DEPARTMENT ANPORT SPORT 7RANSPORC —1 N EANTRAL ENTGwERIm AL NIUIEQ DEPARTMENT FMAN(I- H-1 A�gD7� lX31ECI101 lfTE1TY COLLECTION I PQJCE DEPARTMENT TECHNICAL FIELD SERMM SERVICES ADMNSiRATK1N 1 AOIMISiRATIVE SER%IM DEPARTMENT NTE CENTER E DATA PR02SSIW FAIOIECS AUDIT 0EUM WJbRT A. m LIBRARY BuLom YANTENANCE M AMATTY BI PERSONNEL DEPARTMENT FlRE41 ARSp/ 91PPR690N INVES1IOAn011 PIANNMC DEPARTMENT PLIN r OmE E FOIQ.IOR MDE%IIDPME T HOUI NO PARKS AND REC EATION DEPARTMIE/T RELREAnON B� PARKS 7■ I f■ NNNARKS E CEIIETEAY i NEALTN DEPARTMENT mookA" EN— .n NE MLTN VECidt 'a NUR910 CON1ROL R/WATER ~POULUTXM -M- CONTROL LABORATORY FOOD CONTM Pl1BUC ■ORKS/PUBUC UTLITES DEPARTMENT ENOINEEAWo SANITATKN STREET U71P1`3 MAINTENANCE CITY OF WICHITA FALLS, TEXAS LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30, 1989 Title Name Mayor Perry Goolsby Mayor Pro-Tem Don Kirkham City Council Member David Farabee City Council Member Angus Thompson City Council Member Bill Palmer city council Member Ronald Buffum City Council Member Michael Lam City Manager James Berzina City Attorney Gregory Humbach Municipal Court Judge Larry Gillen City Clerk Wilma Thomas Assistant City Manager Louise Houseworth Director of Traffic and Transportation Robert Parker Director of Finance Fred Werner, C.P.A. Director of Administrative services Louise Houseworth Director of Planning Roger McKinney Director of Public Health Tom Edmonson Police Chief Curtis Harrelson Fire Chief Ronnie James Director of Parks and Recreation Jack Murphy Director of Public works and Public Utilities George Bonnett, P.E. xii FINANCIAL SECTION MATHIS, WEST, HUFFINES & CO., P.C. Certified Public Accountants Capital Center • Indiana at Seventh P. O. Box MWH • Wichita Falls, Texas 76307-9989 (817) 723-1471 • FAX (817) 723-2251 Independent Auditor's Report The Honorable Mayor and Members of the City Council City of Wichita Falls, Texas We have audited the accompanying general purpose financial statements of the city of Wichita Falls, Texas, as of and for the year ended September 30, 1989, as listed in the table of contents. These financial statements are the responsibility of the City's management. our responsibility is to express an opinion on these financial statements based on our audit. we conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. we believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the city of Wichita Falls, Texas, at September 30, 1989, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles. The information listed as required supplementary information in the table of contents is not a required part of the general purpose financial statements, but is supplementary information required by the Governmental Accounting standards Board. we have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. 1 Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements and the supplementary information listed as supporting schedules in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Wichita Falls, Texas. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The supplementary information in the statistical section as listed in the table of contents has not been audited by us, and we do not express an opinion on it. Wichita Falls, Texas January 5, 1990 MATHIS, WEST, HUFFINES & CO., P.C. 2 GENERAL PURPOSE FINANCIAL STATEMENTS Wichita�'c�1�1s TEXAS\�\\\C. W EXHIBIT A-1 (Page 1 of 2) CITr OF WICHITA FALLS, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES A® ACCOOHT CROUPS SEPTEMBER 30, 1989 WITH COMPARATIVE TOTALS FOR SEPTABEt 30, 1988 Fiduciary Account Groups Governmental Fund Types Proprietary Fund Types Fund Types General General Totals Special Debt Capital Internal Trust and Fixed Long -Term (Memorandum Only) General Revenue Service Projectn Enterprise Service Agency Assets Debt 1989 1988 ASSETS Cash and short-term investments $10,885,892 $1,081,751 $ - $11,591,292 $ 9,247,120 $ 461,552 $1,337,260 $ - $ - $ 34,604,867 $ 30,794,782 Receivables (net of allowance for uncollectible): Taxes and assessments (Note 5) 1,203,635 184,479 - 446,531 - - 2,835,958 - - 4,670,603 4,471,549 Customer and trade - - - - 1,722,899 - - - - 1,722,899 1,718,822 Other city funds (Note 16) 175,775 - - - - - - - - 175,775 522,340 Government agencies 558,700 1,746,393 - - 160,445 - 16,556 - - 2,482,094 3,137,977 Other 225,650 4,575 - 4,864 95,637 - - - - 330,726 283,607 Inventory 31,559 - - - 562,712 280,384 - - - 874,655 883,940 Prepaid items 46,389 18,431 - - 4,523 63 - - - 69,406 168,468 Restricted assets (Note 6): Cash and short-term investments - - 566,089 - 6,541,269 - - - - 7,107,358 9,638,999 Receivables: Taxes - - 394,250 - - - - - - 394,250 327,611 Government agencies 166,308 - - - - - - - - 166:31: 135:943 Other - - - - 97,754 - - - - 9775 142181 Plant and equipment (Note 7): Land and betterments - - - - 24,598,680 433,658 - 14,418,475 - 39,450,813 39,334,251 Buildings, systems and improvements - - - - 73,791,942 4,008,948 - 14,182,741 - 91,983,631 79,662,627 Machinery and equipment - - _ _ 2,722,423 _ - 3,695,289 - 6,417,712 6,091,123 Furniture and fixtures - - - - 46,160 5,974 - 440,047 - 494,181 513,624 Motor vehicles and equipment - - - - 3,670 15,379,165 - 91,198 - 15,474,033 14,613,850 construction in progress - - - - 2,099,148 - - 648,983 - 2,748,131 10,141,230 Accumulated depreciation - - - - ( 32,669,440) ( 8,149,602) - - - ( 40,819,042) ( 38,525,793) Deferred charges - - - - 617,893 - - - - 617,893 658,130 Other assets 100 - - - - - - - - 100 188 Amount available for retirement of bonds - - - - - - - - 584,800 584,800 400,423 Amount to be provided for the retirement of capital leases - - - - - - - - 86,455 86,455 15,000 Amount to be provided for accrued vacation and sick leave- - - - - - - - 3,084,558 3,084,558 2,886,413 Amount to be provided for the retirement of bonds _ _ _ _ - - 20,410,200 20,410,200 21,229,577 Amount to be provided for claims and judgments - - - - - - - - 97,664 97,664 82,740 Total assets $13,294,008 $36035, 629 $960,339 $12,042,687 $89,644„835 $12,420,142 $46 189, 774 $33,476,733 $24,263,677 $193,327,824 $189,329,602 The accompanying Notes are an integral part of these financial statements. EXHIBIT A-1 (Page 2 of 2) CITt OF IIICRITA FALLS, TESAS COMBII® BALANCE SH8ET - ALL FOND TZPES AND ACCOUNT GROUPS (CORT'D.) SEPSBIUM 30, 1989 WITH CCOWAR►TIVE TOTALS FOR SEPTHKBEt 30, 1988 Fiduciary Account Groups Governmental Fund Types Proprietary Fund Types Fund Types General General Totals Special Debt capital Internal Trust and Fixed Long -Term (Memorandum Only) General Revenue Service Projects Enterprise Service Agency Assets Debt 1989 1988 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable - trade $ 661,078 $ 89,046 $ - $ 101,864 $ 441,097 $ 271,337 $ 339,893 $ - $ - $ 1,904,315 $ 2,789,214 Accrued payroll 221,920 4,620 - - 255,400 62,111 - - - 544,051 502,471 Accrued vacation and sick leave (Note 19) 100,000 - - - - - - - 3,084,558 3,184,558 2,986,413 Payable to other City funds (Note 16) - 15,516 - - 160,259 - - - - 175,775 522,340 Payable to government agencies 46,104 18,561 - - 2,318 - 2,834,523 - - 2,901,506 2,722,290 Estimated health claims payable - - - - - - 186,863 - - 186,863 193,027 Other liabilities 481,802 9,968 - 25,411 163,076 - 836,269 - - 1,516,526 792,341 Deferred revenue 1,121,122 - - 446,532 - - - - - 1,567, 654 1,676, 417 Capital leases payable (Note 13) - - - - - - - - 86,455 86,455 15,000 Claims and judgments payable (Note 19) - - - - - - - - 97,664 97,664 82,740 Payable from restricted assets: Contracts and trade - - - - 222,439 - - - - 222,439 1,135 Revenue bonds (Note 14) 640,000 - 640,000 600,000 Accrued interest - revenue bonds - - - - 302,458 - - - - 302,458 308,558 Matured bonds and interest payable - - - - 3,000 - - - - 3,000 3,000 Deferred revenue - - 375,539 - 54,000 - - - - 429,539 424,473 General obligation bonds payable (Note 14) - - - - - - - - 20,995,000 20,995,000 21,630,000 Payable to U.S. Government (Note 11) - - - - 1,076,623 - - - - 1,076,623 1,093,040 Revenue bonds payable (Note 14) - - - - 22,195,000 - - - - 22,195,000 22,835,000 Other long-term liabilities: Customer deposits - payable from restricted aBeets - - 1,035,217 - - - - 1,035,217 984,753 Total liabilities 2,632,026 137,711 375,539 573,807 26,550,887 333,448 4,197,548 - 24,263,677 59,064,643 60,162,212 Fund equity (deficit): Contributed capital (Note 18) - - - - 22,159,703 12,376,706 - - - 34,536,409 34,049,069 Investment in general fixed assets - - - - - - - 33,476,733 - 33,476,733 33,178,276 Retained earnings (deficit): Reserved for revenue bond debt service - - - - 2,867,097 - - - - 2,867,097 2,905,568 Unreserved (Note 3) - - - - 38,067,148 ( 290,012) - - - 37,777,136 34,389,686 Fund balances (deficit): Reserved for encumbrances 591,512 868,971 - 1,639,923 - - - - - 3,100,{06 3,542,460 Reserved for inventory and prepaid items 77,948 18,431 - - - - - - - 96,379 187,432 Unreserved: Designated for: Subsequent years expenditures 2,000,000 1,817,956 - 9,628,957 - - 14,549 - - 13,661,462 13,227,538 Debt service - - 584,800 - - - - - - 584,800 400,423 Undesignated (Note 3) 7,992,522 192,560 - - - - ( 22,323) - - 8,162,759 7,286,938 Total fund equity (deficit) 10,661,982 2,897,918 584,800 11,468,880 63,093,948 12,086,694 ( 7.774) 33,476,733 - 134,263,181 129,167,390 Total liabilities and fund equity $13,294,008 $3,035,629 $960, 339 $12,042,687 $89,644,835 $22,420,142 $4, 189, 774 $33„476,733 $24,263,677 6193„327,824 $189,329,602 The accompanying Notes are an integral part of these financial statements. EXHIBIT A-2 Ln CITY OF WICHITA FALLS, TEAS COIBIRM STLTENZW OF HEVSSOES, ,.o..., ......a.d AHD CHAHMM Z1 F9® BALAWL=S - ALL .� FOND TYPES AHD E3PEBDiB7.E TRUST lU�B FOR THE YEAR ENDED SEPTSIBIB 30, 1989 WITH CONPAHATIVE TOTALS FOR THE YEAR ENDED SEPTEIBEa 30, 1988 Revenues: Taxes (Note 5) Special assessments Charges for services Licenses and permits Fines Intergovernmental revenue Contributions Miscellaneous revenue Total revenues Expenditures: Current: Administrative services division Police division Fire division Parks and recreation division Accounting/finance division Planning division Public works division Health division Traffic and transportation division Capital outlay Debt service: Principal retirement Interest and paying agent fees Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): operating transfers in (Note 16) operating transfers out (Note 16) Capitalized leases Total other financing sources (uses) Excess of revenues and other sources over (under) expenditures and other uses Fund balance (deficit) - beginning Fund balance (deficit) - ending Fiduciary Governmental Fund Types Fund Types Totals special Debt Capital Expendable (Memorandum Onlvl General Revenue service Projects Trust 1989 1988 $23,035,386 $ 609,553 $2,354,692 $ - $ - $25,999,631 $25,146,913 - - - - - 20,530 1,261,555 - - - - 1,261,555 1,295,629 440,857 - - - - 440,857 598,915 834,328 - - - - 834,328 885,805 791,383 3,028,406 - - - 3,819,789 3,527,672 - - - - 2,110,748 2,110,748 1,926,449 1,597,558 588,649 117,109 945,013 10,744 3,259,073 2,688,165 27,961,067 4,226,608 2,471,801 945,013 2,121,492 37,725,981 36,090,078 4,514,948 2,889,596 - - 2,072,960 9,477,504 9,683,193 7,677,500 - - - - 7,677,500 7,578,322 5,240,285 - - - - 5,240,285 5,096,563 2,478,736 284,097 - - - 2,762,633 3,192,386 418,733 5,791 - - - 424,524 466,007 336,887 - - - - 336,887 322,779 4,232,744 835,864 - - - 5,060,608 4,459,109 1,830,962 87,717 - - - 1,918,679 1,836,848 1,249,506 276,205 - - - 1,525,711 1,742,171 - 26,113 - 889,410 - 915,523 1,677,796 - - 635,000 - - 635,000 605,000 - - 1,652,424 - 1,652.424 1,683,618 27,980,301 4,405,383 2,287,424 889,410 2,072,960 37,635,478 38,343,792 ( 19,234) ( 178,775) 184,377 55,603 48,532 90,503 ( 2,253,714) 966,100 175,000 - - - 1,141,100 1,196,249 ( 180,558) ( 175,000) - - - ( 355,556) ( 193,545) 84,970 - - 84,970 - $70,512 - - - - 870,512 1,002,704 851,278 ( 278,775) 184,377 55,603 48,532 961,015 ( 1,251,010) 9,810,704 3,076,693 400,423 11,413,277 ( 56,306) 24,644,791 25,895.801 $10,661,982 $2,897,918 $ 584,800 $11,468.880 ($ 76774) $25,605,806 $24,644,791 The accompanying Notes are an integral part of these financial statements. CIS! OF WICHITA FALLS, SgAS COMBINED STATEMENT OF REVENUES, ........ i..........- AND CHANGES IN FUND BALiYCES - BUDGET AND ACTUAL - 6ZNERAL, SPECIAL REVENUE, AND DEB! SERVICE FUBDS FOR THE YEAR ENDED SEPTMUUM 30, 1989 General Fund Special Revenue Funds Debt Service Fund Variance - Variance - Variance - Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues, Taxes (Note 5) $22,362,770 $23,035,386 $ 672,616 $ 565,000 $ 609,553 $ 44,553 $2,285,740 $2,354,692 $ 68,952 Charges for services 1,317,021 1,261,555 ( 55,466) - - - - - - Licenses and permits 375,100 440,857 65,757 - - - - - - Fines 977,000 834,328 ( 142,672) - - - - - - Intergover-ntal revenue 831,348 791,383 ( 39,965) 3,060,784 3,028,406 ( 32,378) - - - Miscellaneous revenue 902,534 1,597,558 695,024 514,105 588,649 74,544 5,000 117,109 112,109 Total revenues 26,765,773 27,961,067 1,195,294 4,139,889 4,226,608 86,719 2,290,740 2,471,801 181,061 Expenditures: Current: Administrative services division 4,916,011 Police division 7,838,301 Fire division 5,262,532 Parke and recreation division 2,586,430 Accounting/finance division 424,976 Planning division 344,181 Public works division 4,535,810 Health division 1,923,749 Traffic and transportation division 1,347,496 Capital outlay - Debt service: Principal retirement - Interest and paying agent fees - Total expenditures 29,179,486 Excess of revenues over (under) expenditures ( 2,413,713) Other financing sources (uses): Operating transfers in (Note 16) 966,100 Operating transfers out (Note 16) ( 185,499) Capitalized leases 77,101 Total other financing sources (uses) $57,702 Excess of revenues and other sources over (under) expenditures and other uses ($ 1,556,011) Fund balance - beginning Fund balance - ending EXHIBIT A-3 Totals (Memorandum Only) Variance - Favorable Budqet Actual (Unfavorable) $25,213,510 $25,999,631 $ 796,121 1,317,021 1,261,555 ( 55,466) 375,100 440,857 65,757 977,000 834$28 ( 142,672) 3,892,132 3,819,789 ( 72,343) 1,421,639 2,303,316 881,677 33,196,402 34,659,476 1,463,074 4,514,948 401,063 3,187,753 2,889,596 298,157 - - - 8,103,764 7,404,544 699,220 7,677,500 160,801 - - - - - - 7,838,301 7,677,500 160,801 5,240,285 22,247 - - - - - - 5,262,532 5,240,285 22,247 2,478,736 107,694 661,397 284,097 377,300 - - - 3,247,027 2,762,833 484,994 418,733 6,243 6,465 5,791 678 - - - 431,446 424,524 6,921 336,887 7,294 - - - - - - 344,181 336,887 7,294 4,232,744 303,066 1,845,909 835,864 1,010,045 - - - 6,381,719 5,068,608 1,313,111 1,830,962 92,787 92,107 87,717 4,390 - - - 2,015,856 1,918,679 97,177 1,249,506 97,990 777,778 276,205 501,573 - - - 2,125,274 1,525,711 599,563 - - 385,630 26,113 359,517 - - - 385,630 26,113 359,517 - - - - - 635,000 635,000 - 635,000 635,000 - - 1,655,740 1,652,424 3,316 1.655,740 1,652,424 3,316 27,980,301 1,199,185 6,957,043 4,405,383 2,551,660 2,290,740 2,287,424 3,316 38,427,269 34,673,108 3,754,161 19,234) 2,394,479 ( 2,817,154) (_ 178,775) 2,638,379 - 184,377 184,377 ( 5,230,867) ( 13,632) 5,217,235 966,100 - 175,000 175,000 - - - - 1,141,100 1,141,100 - 180,558) 4,941 ( 175,000) ( 175,000) - - - - ( 360,499) ( 355,558) 4,941 84,970 7,869 77,101 84,970 7,869 870,512 12,810 857,702 870,512 12,810 851,278 12, 407, 284 ($26817,154) ( 178,775) 2 6$ 38,379 184,377 $ 16.4,377 ($ 4,373,165) 856,880 $5, 230,045 9,810,704 3,076,693 400,423 13,287,820 $10,,661,982 2 8$ 97,918 584,800 $14,1446700 The accompanying Notes are an integral part of these financial statements. EXHIBIT A-4 CITY OF WICHITA FALLS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Operating revenues: Charges for services Rents, concessions and other Total operating revenues Operating expenses: Personnel services Supplies and materials Maintenance and repairs Utilities and other services Insurance and contract support Depreciation and amortization Total operating expenses Operating income Non -operating revenues (expenses): Interest income Gain (loss) on sale of fixed assets Litigation proceeds Interest expense and paying agent fees Contributions from operating grants Total non -operating revenues (expenses) Income before operating transfers Operating transfers: Operating transfers in Operating transfers out Net operating transfers Net income (loss) Retained earnings (deficit) - beginning Retained earnings (deficit) - ending Proprietary Fund Tvpes Totals Internal (Memorandum Only) Enterprise service 1989 1988 $17,757,846 $ - $17,757,846 $17,659,546 363,817 5,246,378 5,610,195 5,805,441 18,121,663 5,246,378 23,368,041 23,464,987 5,090,325 1,033,928 6,124,253 5,986,848 831,756 884,893 1,716,649 1,557,119 4,256,022 1,297,791 5,553,813 6,146,038 2,232,348 206,304 2,438,652 2,564,377 516,304 24,525 540,829 517,672 1,880,366 1,710,900 3,591,266 3,272,245 14,807,121 5,158,341 19,965,462 20,044,299 3,314,542 88,037 3,402,579 3,420,688 1,360,569 - 1,360,569 978,096 105 ( 40,460) ( 40,355) ( 44,136) 52,000 - 52,000 423,709 ( 800,717) - ( 800,717) ( 716,105) 160,445 - 160,445 286,066 772,402 ( 40,460) 731,942 927,630 4,086,944 47,577 4,134,521 4,348,318 180,558 - 180,558 228,224 ( 653,666) ( 312,434) ( 966,100) ( 942,704) ( 473,108) ( 312,434) ( 785,542) ( 714,480) 3,613,836 ( 264,857) 3,348,979 3,633,838 37,320,409 ( 25,155) 37,295,254 33,661,416 $40,934,245 ($ 290,012) 140,644,233 $37,295,254 The accompanying Notes are an integral part of these financial statements. 7 EXHIBIT A-5 CITY OF WICHITA FALLS, TEAS COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Sources of funds: Net income (loss) Items not requiring (providing) working capital: Depreciation and amortization (Gain) loss on sale of assets working capital provided by operations Contributed capital Proceeds from sale of assets Customer deposits, net Decrease in restricted assets Increase in current liabilities payable from restricted assets Total sources of funds Application of funds: Purchase of fixed assets Retirement of revenue bonds Payment of U.S. Government obligation Transfer of assets from General Fixed Asset Account Group Decrease in current liabilities payable from restricted assets Total application of funds Net increase (decrease) in working capital Summary of net changes in working capital: Increase (decrease) in current assets: Cash and short-term investments Receivables: Customer and trade Government agencies Other Inventory Prepaid items Net increase (decrease) in current assets Increase (decrease) in current liabilities: Accounts payable - trade Accrued payroll Payable to other City funds Payable to government agencies other liabilities Net increase (decrease) in current liabilities Net increase (decrease) in working capital Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 1989 1988 $ 3,613,836 ($ 264,857) $ 3,348,979 $ 3,633,838 1,880,366 1,710,900 3,591,266 3,272,245 145 40,460 40,605 44,136 5,494,347 1,486,503 6,980,850 6,950,219 170,752 316,588 487,340 482,184 - 157,271 157,271 87,885 50,464 - 50,464 62,668 2,752,502 - 2,752,502 524,582 201,574 - 201,574 - 8,669,639 1,960,362 10,630,001 8,107,538 5,029,894 2,321,572 7,351,466 6,542,396 640,000 - 640,000 600,000 16,417 - 16,417 15,900 - 17,529 17,529 - - - - 128,547 5,686,311 2,339,101 8,025,412 7,286,843 $ 2,983,328 ($ 378,739) $ 2,604,589 $ 820,695 $ 2,653,372 ($ 389,908) $ 2,263,464 $ 1,186,542 4,077 - 4,077 ( 32,754) ( 26,170) - ( 26,170) 27,800 50,991 - 50,991 ( 41,752) 615 ( 13,669) ( 13,054) 24,576 ( 3,816) ( 424) ( 4,240) 4,752 2,679,069 ( 404,001) 2,275,068 1,169,164 ( 277,885) ( 25,350) ( 303,235) 356,216 17,378 88 17,466 ( 147,715) ( 27,082) - ( 27,082) 30,130 812 - 812 1,506 ( 17,482) - ( 17,482) 108,332 ( 304,259) ( 25,262) ( 329,521) 348,469 $ 2,983,328 ($ 378,739) $ 2,604,589 $ 820,695 The accompanying Notes are an integral part of these financial statements. 8 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1989 Note 1 - DEFINING THE REPORTING ENTITY In accordance with National Council on Governmental Accounting (NCGA) Statement 3, which addresses the issue of defining the reporting entity with respect to other agencies, institutions, commissions, public authorities, or other government organizations for inclusion in the reporting entity's general purpose financial statements, city of Wichita Falls, Texas (City) management identified four organizations which were evaluated for inclusion using the following criteria: 1. Exercise of oversight responsibility over such agencies by the city's elected officials: a. Financial interdependency b. selection of governing authority C. Designation of management d. Ability to significantly influence operations and accountability for fiscal matters. 2. scope of public service: a. whether the activity is for the benefit of the reporting entity and/or its residents b. whether the activity is conducted within the geographic boundaries of the reporting entity and is generally available to the citizens of that entity. The four organizations evaluated were not involved in any joint ventures with the City as defined by NCGA Statement 7. The organizations identified and evaluated for inclusion in the city's financial statements were: Employee Benefit Trust Fund Based on the above criteria, the financial statements of the Employee Benefit Trust Fund are included in the city's accompanying financial statements as an expendable 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. The Employee Benefit 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 Employee Benefit Trust Fund 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. 9 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 1 - DEFINING THE REPORTING ENTITY (CONT'D.) Firemen's Relief and Retirement Fund The activities of the Firemen's Relief and Retirement Fund, in the City 's professional judgment, are not a part of the City and thus are excluded from the accompanying financial statements. The Wichita Falls Firemen's Relief and Retirement Fund is established and 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 and Director of Finance, 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. other Orqanizations Other organizations not meeting the criteria used by the City for inclusion in the city's financial statements include the following: Housing Authority of the City of Wichita Falls Wichita County/City Hospital Board These organizations represent separate non-profit governmental units and are not controlled by or dependent upon the City. They also did not meet the criteria of financial interdependency, which is the most significant manifestation of oversight and includes responsibility for financing deficits, entitlements to surpluses, and guarantees of or 'moral responsibility" for debt. Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of the City conform to generally accepted accounting principles (GAAP) applicable to state and local governments. Generally accepted accounting principles for local governments include 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. 10 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Basis of Presentation The accounts of the City are organized and operated on the basis of funds or account groups, each of which is considered to be a separate fiscal and accounting entity. The operations of each fund are accounted for with a self -balancing set of accounts that comprise its assets, liabilities, fund balances or retained earnings, revenues, and expenditures or expenses. The various funds are grouped by category and type in the financial statements. The city maintains the following fund classifications and account groups: Governmental Funds Governmental funds are used to account for the relatively liquid portion of city's assets that are not accounted for through proprietary or fiduciary funds, the short-term obligations pertaining thereto, and the net balance of these financial resources available for subsequent appropriation and expenditure. General Fund - The General Fund is the general operating fund of the City. This fund is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Capital Proiects Funds - 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 proprietary funds). Proprietary Funds Proprietary funds are those used to account for the City's ongoing organizations and activities which are similar to those found in the private sector. The measurement focus is upon capital maintenance and upon determination of net income, financial position, and changes in financial position. 11 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Proprietary Funds (Cont'd.) Enterprise Funds - Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. 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, or to other governmental units, on a cost reimbursement basis. Fiduciary Funds Fiduciary funds are used to account for assets held by the city in a trustee capacity or as an agent for other governmental units and/or other funds. Trust and agency funds include expendable trust and payroll agency funds. Expendable Trust Funds - These funds are accounted for in the same manner as governmental funds. Agencv Funds - These funds are purely custodial (assets equal liabilities) and thus do not involve measurement of results of operations. Account Groups Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long- term liabilities. The following are the account groups maintained by the City: General Fixed Assets Group - This account group is established to account for all fixed assets of the City other than those accounted for in the proprietary funds. General Lonq-Term Debt Group - This account group is established to account for long-term liabilities of the City other than those accounted for in the proprietary funds. 12 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Basis of Accounting Basis of accounting refers to the time at which revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Governmental funds, expendable trust funds, and agency funds are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available as net current assets. Available means collectible within the current period or expected to be collected within 60 days after year end and be used to pay liabilities of the current period. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include unmatured principal and interest on long-term obligations which are recognized when due. This exception is in conformity with generally accepted accounting principles. Property tax revenues and sales tax receipts are considered measurable and available when collected by the respective intermediary collecting agency and recognized as revenue at that time. Licenses and permits, fines and forfeits, and miscellaneous revenues are recorded as revenues when they are measurable and their validity seems certain. Investment earnings are recorded on the accrual basis in all funds. 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. Intergovernmental revenues are recorded on a basis applicable to the legal and contractual requirements of the various individual grant programs. Intergovernmental revenues are recognized as follows: 1. If monies must be expended on the specific purpose or project before any amounts will be paid to the City, revenues are recognized based upon the expenditures or expenses recorded. 2. If monies are virtually unrestricted and irrevocable, except for failure to comply with prescribed compliance requirements, revenues are recognized when received or susceptible to accrual. Proprietary funds are accounted for using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the 13 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Basis of Accountinq (Cont'd.) accounting period in which they are earned and become measurable. Expenses are recorded in the accounting period incurred, if measurable. Budqet Policies The City Council adheres to the following procedures in establishing the budgets reflected in the financial statements: 1. Prior to the beginning of each fiscal year, the City Manager submits to the City Council a proposed budget for all City departments, divisions and offices for the fiscal year beginning on the following October 1. The operating budget which represents the financial plan for the ensuing fiscal year includes proposed expenditures and the means of financing them. 2. Public hearings are conducted at which all interested persons' comments concerning the budget are heard. 3. The budget for the next fiscal year is legally enacted by the city Council through passage of an ordinance by October 1 each year. Additional appropriations were made during the year in the amount of $2,422,673 which were passed and approved by the City Council. 4. Expenditures may not legally exceed appropriations at the department level for each legally adopted annual operating budget. The City Manager may, without Council approval, transfer appropriation balances from one expenditure account to another within a department or agency of the City. The City Council, however, must approve any transfer of unencumbered appropriation balances or portions thereof from one department or agency to another. The reported budgetary data has been revised for amendments legally authorized during the year. 5. Annual budgets are legally adopted for all governmental funds on a basis consistent with generally accepted accounting principles. However, the budgets for the capital projects funds are adopted for specific projects, are not binding, and may exceed one year. Accordingly, no comparison of budget to actual is presented in the financial statements for these funds. 6. At the close of each fiscal year, any unencumbered appropriation balances (appropriations including prior year encumbrances less current year expenditures and encumbrances) lapse or revert to the undesignated fund balance. The unencumbered appropriation balances in the capital projects funds do not lapse at year end. 14 Note 2 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary control in the general, special revenue, and capital projects funds. Encumbrances outstanding at year end are reported as reservations of fund balance for subsequent year expenditures and are reappropriated in subsequent year budgetary accounts. Investments The City pools idle cash from all funds (except the Deferred Compensation Fund) for the purpose of increasing income through investment activities. Investments are carried at cost except for Deferred compensation Fund investments which are carried at market value. Interest earnings are allocated based on cash amounts in individual funds in a manner consistent with budgetary and legal requirements. Inventory Inventories of the general and proprietary funds consist of supplies and various materials used for the maintenance of fixed 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. Plant and Equipment - Proprietary Funds Plant and equipment owned by the proprietary funds are stated at historical cost. Maintenance and repairs are charged to operations as incurred, and improvements and betterments which extend the useful lives of fixed assets are capitalized. Depreciation of plant and equipment is provided by the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives for straight-line depreciation are as follows: Buildings, systems and improvements 20 - 59 years Machinery, vehicles and other equipment 3 - 25 years Furniture and equipment 3 - 10 years when fixed assets of proprietary funds are sold, the sales proceeds less the adjusted basis of the assets (initial cost less accumulated depreciation) are recorded as a gain or loss. For proprietary fund fixed 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. 15 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Plant and EQUioment - Pronrietary Funds (Cont'd.) No interest is capitalized on fixed assets constructed by proprietary funds which are financed with general obligation bonds because such interest expenditures are reported in the Debt service Fund. For the fiscal year ending September 30, 1989, the City's proprietary funds incurred a total of $1,845,248 of revenue bond interest costs. of this amount, $1,081,986 was capitalized on construction projects and $763,262 was charged to expense. contributions of funds from Federal, State, or local grants restricted for the purpose of purchasing plant and equipment are recorded as equity contributions when received. The cost of water and sewer lines installed by developers is valued by the contractor and recorded as contributed capital in the Water and Sewer Fund. Depreciation on contributed assets from Federal and State governments is recorded as an expense in the statement of operations. General Fixed Assets General fixed assets are those assets acquired for general governmental purposes. Assets purchased are recorded as expenditures in the governmental funds and capitalized at historical cost in the General Fixed Assets Account Group. Contributed fixed assets are recorded in general fixed assets at estimated fair market value at the time received. No depreciation has been provided on general fixed assets. No interest is capitalized on fixed assets constructed which are financed with general obligation bonds in accordance with generally accepted accounting principles. Public domain general fixed assets (infrastructure) consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, and similar assets have not been capitalized. 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 Revenue sharing, Community Development Block Grant, Section 8 Housing Assistance, and the Rental Rehabilitation 16 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Federal and State Grants (Cont'd.) Program. 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. Reserves and Designations Portions of fund equity are segregated for future use, and are therefore not available for future appropriation or expenditure. Amounts reserved for revenue bond debt service and retirement represent portions of fund equity which are required to be segregated in accordance with the city's bond ordinances. Amounts reserved for inventory and prepaid items have already been expended and represent a portion of the fund balance that is not available for future expenditures. Amounts reserved for encumbrances are commitments for materials and services on purchase orders and contracts which are unperformed. Designations of unreserved fund balances in governmental funds indicate city management's tentative plans for use of financial resources in a future period. Transactions Between Funds Transactions between funds that would be treated as revenues, expenditures, or expenses if they involved organizations external to the governmental unit are accounted for as revenues, expenditures, or expenses in the funds involved. Transactions which constitute reimbursements to a fund for expenditures or expenses initially made from that fund which were properly applicable to another fund are recorded as expenditures or expenses in the fund that is reimbursed. Non -recurring or non -routine transfers of equity between funds are treated as residual equity transfers and are reported as additions to or deductions from the fund balance of governmental funds. Residual equity transfers to proprietary funds are treated as contributed capital, and such transfers from proprietary funds are reported as reductions of retained earnings or contributed capital as is appropriate in the circumstances. All other transfers are treated as operating transfers and are included in the results of operations of both governmental and proprietary funds. vacation and Sick Leave All full-time employees accumulate vacation benefits based on length of service up to 15 days per year. The maximum allowable accumulation is 30 days. 17 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) vacation and Sick Leave (Cont'd.) Sick leave is earned at the rate of 4.62 hours per pay period up to a maximum of ninety days. Upon leaving the employment of the City, employees will be paid for unused vacation days which have accrued. 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 ninety days of sick leave. Insurance The City maintains a group health insurance plan for employees and dependents which is 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 the participating employees and are recognized as revenues in the funds. The contributions by the City are recorded as expenditures or expenses of the various funds as appropriate. Comparative Data Comparative data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the city's financial position and operations. However, complete comparative data (i.e., presentation of prior year totals by fund type) have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Reclassifications Certain comparative data have been reclassified to present such amounts in a manner consistent with the current year's financial statements. Total Columns on Combined Financial Statements Total columns on the combined financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Such data is not comparable to a consolidation. Interfund eliminations have not been made in arriving at the totals. 18 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 3 - FUND DEFICITS Enterprise Funds At September 30, 1989, the Airport Fund had a deficit retained earnings balance of $271,728. The intent of management is that this deficit be recovered by transfers from other funds during future years. At September 30, 1989, the Transit Fund had a deficit retained earnings balance of $162,786. The intent of management is that this deficit also be recovered by transfers from other funds during future years. Internal Service Fund At September 30, 1989, the Internal Service Fund had a deficit retained earnings balance of $290,012. In the opinion of management, this deficit will be recovered in future years by maintaining the current rates charged for services rendered to other departments. Expendable Trust Fund At September 30, 1989, the Employee Benefit Trust Fund had a deficit fund balance of $22,323. The intent of the fund's board of trustees is that this deficit be recovered in the next two fiscal years through increased premiums charged and the implementation of new plan provisions. Note 4 - DEPOSITS AND INVESTMENTS Deposits All of the city's demand and time depository accounts are held in a local banking institution under the terms of a written depository contract. At September 30, 1989, the total amount of the city's demand and time deposits per the general ledgers was $424,201, and the total amount per the City's September 30, 1989 bank statements was $1,158,731. The entire amount of the year end bank statement balances was covered by federal depository insurance or by U.S. Government Securities held as collateral by the city's agent in the city's name. Investments The city's investment policies are governed by State statutes. The city is authorized to invest in obligations of the United States or its agencies, obligations of the State of Texas or its agencies, commercial paper rated A or its equivalent by a nationally recognized investment rating firm, and repurchase agreements. 19 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 4 - DEPOSITS AND INVESTMENTS (CONT'D.) Investments (Cont'd.) The City's investments are categorized below to give an indication of the level of risk assumed by the entity at year end. Category 1 includes investments that are insured or registered, or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the city's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty's safekeeping department, but not in the city's name. Description Repurchase Agreements U.S. Government securities Subtotal Assets of Deferred Compensation Fund Total Note 5 - PROPERTY TAXES Category 1 2 $28,944,000 $ - 11,509,881 - 40,453,881 - N/A N/A $40,453,881 $ - Carrying Market 3 Amount Value $ - $28,944,000 $28,958,954 11,509,881 11,593,507 40,453,881 40,552,461 N/A 834,143 834,143 $ - $41,288,024 $41.386,604 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, 1989 was $.6378 per $100 which means that the City has a tax margin of $1.6122 per $100, and could raise up to $37,068,393 additional tax revenue a year from the present assessed valuation of $2,299,242,866 before the limit is reached. The City serves as agent in assessing and collecting ad valorem taxes for the Wichita Falls Independent School District. It also served the Wichita Falls college District in a similar capacity during its existence and currently serves as collector and as custodian of delinquent tax records for successors to the former District. 20 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 5 - PROPERTY TAXES (CONT'D.) Taxes levied and uncollected for the School and College District totaled $2,834,523 and $2,675,217 at September 30, 1989 and 1988, respectively, and are reflected in the Tax Collection Fund in the agency fund group. Note 6 - RESTRICTED ASSETS - WATER AND SEWER FUND Restricted assets in the Water and sewer Fund, held for specific purposes in accordance with bond ordinances or other legal restrictions, are comprised of the following: For Debt Service: Cash and short-term investments $2,867,097 For Capital Improvements: Cash and short-term investments 2,638,955 Receivables 97,754 For Customer Deposits: Cash and short-term investments 1,035,217 Total 66 639,023 21 N N CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 7 - PLANT, EQUIPMENT AND DEPRECIATION A summary of proprietary fund type plant and equipment at September 30, 1989 is as follows: Total Water and Internal Proprietary Airport Transit Sanitation Sewer Service Funds Land and betterments $1,468,175 $ 61,925 $ 653,692 $22,414,888 $ 433,658 $ 25,032,338 Buildings and improvements 1,451,662 626,868 2,298,370 69,415,042 4,008,948 77,800,890 Machinery and equipment 13,608 67,822 92,206 2,548,787 - 2,722,423 Furniture and fixtures 12,477 6,128 4,750 24,805 5,974 54,134 Motor vehicles and equipment - - - 3,670 15,379,165 15,382,835 Construction in progress - - - 2,099,148 - 2,099,148 2,945,922 762,743 3,049,018 96,506,340 19,827,745 123,091,768 Less accumulated depreciation ( 1,080,063) ( 80,490) ( 396,997) ( 31,111,890) ( 8,149,602) ( 40,819,042) Net plant and equipment $1,865,859 $682,253 $2,652,021 $65,394,450 $11,678,143 $ 82,272,726 The following table summarizes the changes in the components of the General Fixed Assets Account Group: Balance Balance October 1, Transfers September 30, 1988 Additions Deletions In (Out) 1989 Land and betterments $14,327,189 $ 91,286 $ - $ - $14,418,475 Buildings and improvements 14,159,440 26,394 83,341 80,248 14,182,741 Machinery and equipment 3,411,385 298,414 14,510 - 3,695,289 Furniture and fixtures 461,194 2,010 23,157 - 440,047 Motor vehicles and equipment 124,805 6,263 39,870 - 91,198 construction in progress 694,263 34,968 - ( 80,248) 648,983 Total $33,178,276 $459,335 $160,878 $ - $33,476,733 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 8 - DEFINED CONTRIBUTION PENSION PLAN Plan Description The City provides pension benefits for all of its full-time employees, except firemen, through a nontraditional, joint contributory, defined contribution plan in the state-wide Texas Municipal Retirement System (TMRS). The City's plan is one of over 500 administered by TMRS, an agent multiple -employer public employee retirement system. The plans in TMRS are substantially defined contribution plans, but have many of the characteristics of defined benefit plans. Therefore, additional voluntary disclosures are provided to help foster a better understanding of the nontraditional characteristics of the plan. Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City -financed monetary credits, with interest. At the date the plan began, the City granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service since the plan began are 200% of the employee's accumulated contributions. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer -financed monetary credits with interest were used to purchase an annuity. Members can retire at ages 60 and above with 15 or more years of service, at ages 50-59 with 25 or more years of service, or with 28 years of service regardless of age. The plan also provides death and disability benefits. A member is vested after 20 years, but must leave his accumulated contributions in the plan. If a member prematurely withdraws his own money, he is not entitled to the employer -financed monetary credits even if vested. The plan provisions are adopted by the City within the options and actuarial constraints detailed in the state statutes governing TMRS. Fundinq Status and Proaress Even though the substance of the city's plan is not to provide a defined benefit in some form, some additional voluntary disclosure is appropriate due to the nontraditional nature of the city's defined contribution plan which had an initial unfunded pension benefit obligation upon the plan's inception. The pension benefit obligation shown below is similar in nature to the standardized disclosure measure required by Governmental Accounting Standards Board (GASB) Statement 5 for defined benefit plans, except that there is no need to project salary increases since the benefit credits earned for service to date are not dependent upon future salaries. This measure is the actuarial present value of credited projected benefits and 23 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 8 - DEFINED CONTRIBUTION PENSION PLAN (CONT'D.) Fundinq status and Progress (Cont'd.) is intended to help users assess the public employee retirement system's funding status on a going concern basis, assess progress being made in accumulating sufficient assets to pay benefits when due, and allow for comparisons among public employee retirement plans. The calculations were made as part of the annual actuarial valuation as of December 31, 1988 and, therefore, all plan disclosures have been presented on a twelve month calendar year basis. Because of the money purchase nature of the plan, the interest rate assumption, currently 8.5% per year, does not have as much impact on the results as it does for a defined benefit plan. The market value of assets is not determined for each individual city's plan, but the market value of assets for TMRS as a whole was 103.6% of book value as of December 31, 1988. Total unfunded pension benefit obligation applicable to the City's employees was $4,721,384 at December 31, 1988, as follows: Pension benefit obligation: Annuitants $ 1,590,642 Terminated employees 1,189,320 Current employees: Accumulated employee contributions including allocated invested earnings 101431,538 Employer -financed vested 9,089,469 Employer -financed nonvested 6,883,212 Total pension benefit obligation 29,184,181 Net assets available for benefits, at book value 24,462,797 Unfunded pension benefit obligation $ 4,721,384 The book value of assets is amortized cost for bonds and original cost for short-term securities and stocks. The actuarial assumptions used to compute the actuarially determined City contribution rate are the same as those used to compute the pension benefit obligation. Contributions Required and contributions Made The contribution rate for all employees, except policemen, is 5%. Policemen contribute 7% to the plan. Under state laws governing TMRS, the City's 24 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 8 - DEFINED CONTRIBUTION PENSION PLAN (CONT'D.) Contributions Reauired and contributions Made (Cont'd.) contribution rate is annually determined by an actuary. Part of the City's contribution rate (the normal cost) is to fund the currently accruing monetary credits, with the other part (the prior service contribution rate) calculated as the level percent of payroll needed to amortize the unfunded actuarial liability over the remainder of the plan's 25-year amortization period. when the City periodically adopts updated service credits and increases the annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-year period. currently, the unfunded actuarial liability is being amortized over the 25-year period which began January, 1989. The unit credit actuarial cost method is used for determining the city's contribution rate. contributions are made monthly by both the employees and the City. Since the City needs to know its contribution rate in advance to budget for it, there is a one-year lag between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. The City's total payroll for the calendar year 1988 was $21,477,114, and the City's contributions were based on a covered payroll of $17,148,324. Both the City and the covered employees made the required contributions for the calendar year 1988, amounting to $1,047,763 for the City and $939,886 for the employees. The City adopted changes in the plan since the previous actuarial valuation, which had the effect of increasing the city's contribution rate for calendar year 1989 by 0.03% of payroll. There were no related -party transactions during 1988. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten-year trend information may be found on pages 40-41 of the city's comprehensive annual financial report. For the three plan years ended December 31, 1986, 1987, and 1988, respectively, available assets were sufficient to fund 81.0, 80.5, and 83.8 percent of the pension benefit obligation. Unfunded pension benefit obligation represented 28.7, 32.9, and 27.5 percent of the annual payroll for employees covered by the plan for the three years ended December 31, 1986, 1987, and 1988, respectively. showing unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation for analysis purposes. In addition, for the three years ended December 31, 1986, 1987, and 1988, the city's contributions to the plan, all made in accordance with actuarially determined requirements, were 5.80, 5.96, and 6.11 percent, respectively, of annual covered payroll. 25 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 9 - FIREMEN'S RELIEF AND RETIREMENT FUND The city's firemen are covered by a locally administered Firemen's Relief and Retirement Fund maintained for members of the City of Wichita Falls Fire Department under provisions of applicable laws of the State of Texas. All firemen, who are under the age of 35 upon entering service as a City firefighter, must become members of the plan. Eighteen percent of each fireman's gross salary is contributed to the Fund, with one-half of the contributed amount being paid by each fireman and one- half by the City. For the year ended September 30, 1989, the city's contribution to this Fund was $337,987 based on a covered payroll of $3,755,411. contributions have been made for all plan years in accordance with actuarially determined contribution requirements determined through an actuarial valuation. Civil statutes of the State of Texas currently permit an actuarial valuation no more than once every two years. The most recent actuarial valuation was performed on April 30, 1986. The next actuarial valuation is currently projected to be completed in the spring of 1990. The actuarial cost method used to value the Fund was the entry -age -actuarial cost method. Under this method, the actuarial present value of projected benefits for each participant is allocated as a level percentage of the earnings of the participant between entry age and assumed retirement. The unfunded actuarially accrued liability at April 30, 1986, as determined by a valuation performed as of that date, was $2,949,325. This liability is to be amortized by a level percentage of payroll over a period of 19 years assuming that total payroll will increase 6% per annum in future years. As indicated in Note 1, the Firemen's Relief and Retirement Fund is not a part of the City and thus has been excluded from the accompanying financial statements. A separate audited financial report of this Fund is publicly available in the City's finance department. 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. All amounts of compensation deferred under the plan, all investments purchased, and all income attributable to these investments are (until paid or made available to the employee or other beneficiary) solely the property of the City subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of their deferred account. 26 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 10 - DEFERRED COMPENSATION PLAN (CONT'D.) It is the opinion of City management that the City has no liability for losses under the plan, but does have the duty of due care that would be required of an ordinary prudent investor. It is also the opinion of city management that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. Note 11 - PAYABLE TO U.S. GOVERNMENT The City of Wichita Falls and Wichita County Water Improvement District No. 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, 2004 of $51,974, which includes interest at the rate of 3.253%. The city's share of the total costs ($5,800,957) is reflected in fixed assets, and the City's share of the U.S. Govern."nent funded portion ($4,484,140) is reflected as contributed capital 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 by NCGA Statement 7. The remaining debt payable to the U.S. Government is classified as follows: September 30, 1989 1988 Long-term $1,076,623 $1,093,040 Current portion in other liabilities 16,417 15,900 Total $1,093,040 $1,108„940 Note 12 - AIRPORT LEASE The airport facilities are located on land at Sheppard Air Force Base. The land is leased from the Department of the Air Force at a cost of $1.00 per year for a period of fifty years, beginning May 15, 1959 and expiring May 14, 2009. Additional rent is based on landing fees at a rate of $1.8264 per scheduled landing. Landing fees collected and paid on this lease were $10,372 and $10,219 for the fiscal years ended September 30, 1989 and 1988, respectively. 27 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 13 - DESCRIPTION OF LEASING ARRANGEMENTS The City has entered into a land lease expiring in 1991 and three copier leases expiring in 1994 which are classified as capital leases and are included in the General Fixed Asset and the General Long -Term Debt account groups. The majority of the operating leases contain the option for annual renewal at the end of the initial lease term. In most cases, leases will be canceled or replaced by other leases. The City leases certain equipment and data processing software under operating leases expiring at varying times through 1990. capital Leases The following is an analysis of the leased property under capital leases by major classes: Classes of Propertv Land Equipment Total Asset Balances at September 30, 1989 1988 $ 50,000 $ 50,000 77.240 - $127,240 $ 50,000 The following is a schedule by years of future minimum lease payments under capital leases and the corresponding present value of the net minimum lease payments as of September 30, 1989: Year ending September 30: 1990 1991 1992 1993 1994 Total minimum lease payments Less: Amount representing interest Present value of minimum lease payments (1) $ 21,371 21,371 16,371 16,371 14,633 $ 90,117 3,662 $ 86,455 28 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 13 - DESCRIPTION OF LEASING ARRANGEMENTS (CONT'D.) Operatinq Leases 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, 1989: Year ending September 30: 1990 $ 35,468 1991 11,843 1992 9,448 1993 6,100 1994 6,100 Later years 14 Total minimum payments required (2) $ 68,973 The following schedule shows the composition of total rental expenses for all operating leases: Minimum rentals Contingent rentals Total rentals Year Ending September 30, 1989 1988 $121,226 $139,751 10,372 10,219 $131,598 $149,970 (1) Reflected in the general long-term debt account group as capital leases payable. (2) Minimum payments do not include contingent rentals which may be paid under the airport lease based on the number of scheduled landings. Note 14 - LONG-TERM DEBT The following is a summary of changes in long-term obligations of the City for the year ended September 30, 1989: 29 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 14 - LONG-TERM DEBT (CONT'D.) Obligations obligations Outstanding New Obligations Outstanding October 1, Obligations Retired September 30, 1988 Incurred or Refunded 1989 General obligation Bonds payable $21,630,000 $ - $ 635,000 $20,995,000 Revenue Bonds payable 23,435,000 - 600,000 22,835,000 Accrued vacation and sick leave (Note 19) 2,886,413 198,145 - 3,084,558 Capital leases payable (Note 13) 15,000 85,048 13,593 86,455 claims and judgments payable (Note 19) 82,740 35,672 20,748 97,664 Payable to U.S. Govt. (Note 11) 1,108,940 - 15,900 1,093,040 Total 5_49,158,093 $318,865 $1,285,241 $48,191,717 Bonds payable at September 30, 1989 are comprised of the following individual issues: Range of Final Annual Bonds Interest Maturity serial Bonds outstanding Rates Date Payments Authorized at 9/30/89 General obligation Bonds: 1986 General obligation Refunding Bonds 5.00% to 9/01/06 $305,000 to $22,540,000 $20,995,000 8.15% 2,115,000 Revenue Bonds: Water and Sewer Revenue Bonds: 1986 Water and Sewer System Refunding Revenue Bonds 5.00% to 8/01/07 395,000 to 24,405,000 22,835,000 8.30% 2,265,000 Total All Bonds $46,945,000 $43,830,000 The 1986 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, 1989, $584,800 was available in this fund to service these bonds. 30 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 14 - LONG-TERM DEBT (CONT'D.) The 1986 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. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant provisions for such limitations and restrictions. The City's current year payments for debt service of general obligation bonds and revenue bonds included $3,502,088 of interest. The annual requirements to pay principal and interest on the bond obligations outstanding as of September 30, 1989 are as follows: Year Ending General obligation Revenue September 30: Principal Interest Principal Interest Total 1990 $ 670,000 $ 1,615,815 $ 640,000 $ 1,814,748 $ 4,740,563 1991 710,000 1,575,615 680,000 1,773,788 4,739,403 1992 755,000 1,531,240 725,000 1,728,228 4,739,468 1993 805,000 1,482,165 775,000 1,677,478 4,739,643 1994 860,000 1,427,827 835,000 1,621,678 4,744,505 1995-1999 5,335,000 6,098,612 5,220,000 7,049,587 23,703,199 2000-2004 7,790,000 3,642,391 7,675,000 4,590,235 23,697,626 2005-2007 4,070,000 504,078 6,285,000 1,070,150 11,929,228 Total $20,995,000 $17,877,743 $22„835,000 $21,325,892 $83,033,635 Note 15 - DEFEASANCE OF PRIOR DEBT In prior years, the City defeased certain outstanding general obligation and revenue bonds by placing the proceeds of new bonds and additional cash in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust escrow accounts and the defeased bonds are not included in the City's financial statements. At September 30, 1989, the following outstanding bonds are considered defeased: Amount General obligation Bonds: 1970 General obligation Bonds $ 125,000 1971 General Obligation Bonds 250,000 1980 General obligation Bonds 2,400,000 1981 General obligation Bonds 3,150,000 1982 General obligation Bonds 1,825,000 1985 General Obligation Refunding and Improvement Bonds 18,535,000 Total Defeased General obligation Bonds 26,285,000 31 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 15 - DEFEASANCE OF PRIOR DEBT (CONT'D.) Amount Revenue Bonds: 1966 Water and Sewer Revenue Bonds 230,000 1966-A Water and Sewer Revenue Bonds 150,000 1973 Water and Sewer Revenue Bonds 400,000 1978 Water and Sewer Revenue Bonds 540,000 1980 Water and Sewer Revenue Bonds 600,000 1981 Water and Sewer Revenue Bonds 700,000 1982 Water and Sewer Revenue Bonds 530,000 1984 Water and Sewer Revenue Bonds 17,980,000 Total Defeased Revenue Bonds 21,130,000 Total Defeased Bonds $47,415,000 Note 16 - INDIVIDUAL FUND DISCLOSURES Interfund receivable and payable balances at September 30, 1989 are as follows: Interfund Interfund Receivables Parables General Fund $175,775 $ - Special Revenue Funds: Community Development Block Grant Fund - 15,515 Rental Rehabilitation Program Fund - 1 Enterprise Fund: Transit Fund - 160,259 Totals $175,775 $175,775 operating transfers between funds during the year were as follows: Operating Operating Transfer In Transfer out General Fund $ 966,100 $ 180,558 Special Revenue Funds: Civic/Community Promotion Fund 175,000 - Hotel/Motel Tax Fund - 175,000 32 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 16 - INDIVIDUAL FUND DISCLOSURES (CONT'D.) Operating Operating Transfer In Transfer Out Enterprise Funds: Transit Fund 180,558 Sanitation Fund - Water and Sewer Fund - Internal Service Fund - Totals $1,321,658 380,692 272,974 312,434 1,321,658 33 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 17 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains four enterprise funds which provide transportation, sanitation, water and sewer services. Segment information for the year ended September 30, 1989 is as follows: Operating revenues Depreciation and amortization operating income (loss) Contributions from operating grants operating transfers: In Out Net income (loss) current capital: contributions Plant and equipment: Additions Deletions Net working capital Total assets Bonds and other long-term liabilities Total equity Total Water Enterprise Airport Transit Sanitation and Sewer Funds $ 200,895 $153,955 $5,401,001 $12,365,812 $18,121,663 91,734 14,585 58,785 1,715,262 1,880,366 ( 120,071) ( 355,588) 831,377 2,958,824 3,314,542 - 160,445 - - 160,445 - 180,558 - - 180,558 - - 380,692 272,974 653,666 ( 115,849) ( 14,585) 629,016 3,115,254 3,613,836 - - - 170,752 170,752 540 - 6,527 5,022,827 5,029,894 - - 9,981 363 10,344 ( 24,655) - 681,274 2,326,709 2,983,328 2,088,342 844,566 5,521,122 81,190,805 89,644,835 - - - 24,306,840 24,306,840 2,005,657 655,959 5,322,317 55,110,015 63,093,948 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 18 - CONTRIBUTED CAPITAL - PROPRIETARY FUNDS During the year ended September 30, 1989, contributed capital in the city's proprietary funds increased by the following amounts: Total Water Internal Proprietary Source Airport Transit Sanitation and Sewer Service Funds Government - fixed assets $ - $ - $ - $ 35,450 $ 316,588 $ 352,038 Developers - fixed assets - - - 135,302 - 135,302 Total additions - - - 170,752 316,588 487,340 contributed capital, Ln October 1, 1988 2,277,385 818,745 2,907,626 15,985,195 12,060,118 34,049,069 Contributed capital, September 30, 1989 $2,277,385 $818,745 $2,907,626 $16,155,947 $12,376,706 $34,536,409 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 19 - COMMITMENTS AND CONTINGENCIES Litiqation The City is a defendant in numerous lawsuits. The ultimate liability of the City cannot be determined at this time, although City management believes such liability will not materially affect the financial position of the City. Accrued Vacation and Sick Leave The city's liability for accrued vacation and sick leave excluding the amount recorded in the enterprise funds was $3,184,558 at September 30, 1989. This accrual is recorded in the General Long -Term Debt account group, except for $100,000 which is believed by City management to be currently payable from available resources and is recorded in the General Fund. Post -Retirement Health Care and Life Insurance Benefits In addition to providing pension benefits, the City provides certain health care and life insurance benefits for retired employees. Substantially all of the City's employees may become eligible for those benefits if they reach normal retirement age while working for the City. The cost of retiree health care is paid for by the retirees. The cost of life insurance benefits is funded jointly by the City and the retirees. The City' s portion of these costs is recognized as expense when paid. For the fiscal year ended September 30, 1989, these costs totaled $5,888. Workmen's Compensation Claims The City is liable for workmen's compensation claims arising in various General Fund departments of $97,664 as of September 30, 1989. This amount is recorded as a liability in the General Long -Term Debt account group. Contract Commitment With West Texas Utilities Companv In 1977, the city and Wichita County water Improvement District Number 2 entered into a sixty -year contract with the West Texas Utilities Company (company) and agreed to provide an adequate water supply for the Company's use in generating power upon completion of the company's construction of a power plant adjacent to the Lake Kemp -Lake Diversion System. The significant terms of the contract provide for standby charges to be paid to the City and the Wichita County water Improvement District Number 2 in equal amounts. Minimum annual charges began on January 1, 1987, and shall continue as follows: 36 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 19 - COMMITMENTS AND CONTINGENCIES (CONT'D.) Contract Commitment With West Texas Utilities Company (Cont'd.) Years Ending December 31: 1989-1991 1992-1996 1997 and all years thereafter until end of contract For water actually consumed, the Company shall pay County Water Improvement District Number 2 equally, twenty-three ($.23) cents per one thousand (1,000) adjusted annually. city 's Annual Share $250,000 375,000 500,000 the city and Wichita at the Base Rate of gallons, which can be 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 Commitment With Army Corps of Engineers On June 13, 1987, the City entered into a construction contract with the Army Corps of Engineers to provide flood protection to the City of Wichita Falls and surrounding vicinity. This flood protection is to be attained by increasing the flood control capabilities in the Holliday Creek area and by modifying the existing Lake Wichita Dam. As of September 30, 1989, the total project costs under this contract were estimated to be $45,200,000. The city must provide a 5 percent cash contribution in proportion to the rate of federal expenditures incurred during the construction period. This required contribution is presently estimated to be $2,260,000. Additionally, the City must provide all land, easements, rights -of -way, and waste material disposal areas, and perform all relocations necessary to complete the project. If the value of the above -mentioned contributions is determined to be less than 25 percent of the total project costs, the City must make an additional cash contribution to make its total contribution equal to 25 percent of the total project costs. The City has incurred a total of $6,668,797 in project costs as of September 30, 1989. The City is also responsible for the estimated $3,214,625 of costs necessary to modify the existing Lake Wichita Dam. These projects are estimated to be completed during the fiscal year ending September 30, 1993. 37 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 19 - COMMITMENTS AND CONTINGENCIES (CONT'D.) Construction Contracts At September 30, 1989, several long-term construction contracts were outstanding in which the city has committed to but has not accrued any expenditures or expense as the work has not yet been performed. The amounts for which the various funds are committed to complete these contracts are as follows: General Fund special Revenue Fund: Community Development Block Grant Fund Capital Projects Fund: 1985 Holliday Creek Project Enterprise Funds: Sanitation Fund Water and Sewer Fund Total Enterprise Funds Total contract commitments $ 419,814 2,991,494 Federally Assisted Proarams - Compliance Audits $ 465,141 855,397 1,562,025 3,411,308 $6,293,871 The City participates in numerous Federally assisted programs, on both a direct and state pass -through basis, as well as on a service -provider basis. Principal among these are Federal Revenue sharing, Community Development Block Grants, Section 8 Housing Assistance, and the Rental Rehabilitation Program. 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. 38 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1989 Note 20 - SUBSEQUENT EVENT on October 18, 1989, the City was informed that its application with the Texas water Development Board for a low interest revolving fund loan in the amount of $21,350,000 was approved. The proceeds from this loan will be used for sewer treatment plant renovation and expansion and the installation of a large capacity sewage collection interceptor line. 39 REQUIRED SUPPLEMENTARY INFORMATION EXHIBIT B-1 CITY OF WICHITA FALLS, TEXAS DEFINED CONTRIBUTION PENSION PLAN - ANALYSIS OF FUNDING PROGRESS - LAST TEN PLAN YEARS (UNAUDITED)*** (6) (4) Unfunded Pension (1) (3) Unfunded (5) Benefit obligation Net Assets (2) Percentage Pension Benefit Annual as a Percentage Plan Available Pension Benefit Funded obligation Covered of Covered Payroll Year For Benefits* obligation (1) '. (2) (2) - (1) Payroll (4) . (5) 1979 $ 7,439,301 $ 8,350,527 89.1% $ 911,226 $ 9,197,671 9.9% 1980 8,608,043 9,472,370 90.9% 864,327 10,770,238 8.0% 1981 10,076,953 10,893,004 92.5% 816,051 11,865,120 6.9% 1982** 11,239,691 12,816,960 87.7% 1,577,269 13,340,527 11.8% 1983 12,944,791 15,224,110 85.0% 2,279,319 13,882,452 16.4% 1984 14,902,005 18,130,886 82.2% 3,228,881 14,185,255 22.8% 1985 17,136,495 21,280,661 80.5% 4,144,166 15,040,953 27.6% 1986 19,097,798 23,567,091 81.0% 4,469,293 15,593,759 28.7% 0 1987 21,932,183 27,236,608 80.5% 5,304,425 16,147,248 32.9% 1988 24,462,797 29,184,181 83.8% 4,721,384 17,148,324 27.5% Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and unfunded pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation 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 pension benefit obligation and annual covered payroll are both affected by inflation. Expressing the unfunded pension benefit obligation 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 this percentage, the stronger the pension plan. * At book value (See Note 8.) ** During 1982, plan benefit provisions were amended to retroactively increase prior service credits. This amendment had the effect of increasing the pension benefit obligation in 1982 by approximately $537,000. *** The City's retirement plan is substantially a defined contribution plan. These voluntary disclosures, similar to the disclosures required for a defined plan, are provided for additional analysis of the city's retirement plan. EXHIBIT B-2 CITY OF WICHITA FALLS, TEXAS DEFINED CONTRIBUTION PENSION PLAN - REVENUES BY SOURCE AND EXPENSES BY TYPE - LAST TEN PLAN YEARS (UNAUDITED)** Employer contributions as Percentage Revenues By Source Plan of Annual Employer Employee Investment Year Covered Pavroll Contributions Contributions Income Total 1979 4.68% $ 430,451 $505,439 $ 480,018 $1,415,908 1980 4.62% 497,585 591,618 624,517 1,713,720 1981 4.59% 544,609 654,082 867,441 2,066,132 1982* 4.55% 606,994 739,073 1,031,285 2,377,352 1983 4.73% 656,640 775,615 1,206,394 2,638,649 1984 5.10% 723,448 793,676 1,419,569 2,936,693 1985 5.35% 804,691 834,538 1,622,861 3,262,090 1986 5.80% 904,438 864,846 1,857,101 3,626,385 1987 5.96% 962,376 894,829 2,101,277 3,958,482 1988 6.11% 1,047,763 939,886 2,461,316 4,448,965 Expenses By Tvoe Aggregate Plan Benefit Administrative Year Payments Expenses Refunds Total 1979 $ 148,291 $ 15,925 $278,239 $ 442,455 1980 263,819 16,377 264,782 544,978 1981 237,588 16,493 343,141 597,222 1982* 910,303 17,378 286,933 1,214,614 1983 703,210 19,245 211,094 933,549 1984 631,278 18,546 329,655 979,479 1985 587,421 19,884 420,295 1,027,600 1986 1,298,373 19,814 346,895 1,665,082 1987 787,769 20,653 315,675 1,124,097 1988 1,535,680 20,067 362,604 1,918,351 Contributions were made in accordance with actuarially -determined contribution requirements. * See note on page 40 for a discussion of the 1982 change in employee benefit provisions. ** The city's retirement plan is substantially a defined contribution plan. These voluntary disclosures, similar to the disclosures required for a defined benefit plan, are provided for additional analysis of the City's retirement plan. 41 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS Wichi s TEXAS GENERAL FUND The General Fund is used to account for all revenues and expenditures not accounted for in other funds. It receives a greater variety and amount of revenues and finances a wider range of governmental activities than any other fund. Major functions financed by the General Fund include: Administrative; Finance; Police; Fire; Protective Inspections, such as building, plumbing and electrical; Traffic Engineering; Public works Engineering; Street Maintenance; Health; Community Enrichment Activities such as Parks, Recreation, and Library; and Planning. EXHIBIT C-1 CITY OF WICHITA FALLS, TEXAS GENERAL FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1989 AND 1988 ASSETS cash and short-term investments Receivables: Taxes and assessments (less $722,000 and $631,824 allowance for uncollectible accounts) other city funds Government agencies Other Inventory Prepaid items Restricted assets: Receivable from government agencies other assets Total assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade Accrued payroll Accrued vacation and sick leave Payable to other City funds Payable to government agencies Other liabilities Deferred revenue Total liabilities Fund balance: Reserved for encumbrances Reserved for inventory and prepaid items Unreserved: Designated for subsequent years expenditures Undesignated Total fund balance Total liabilities and fund balance 1989 1988 $10,885,892 $ 9,671,970 1,203,635 1,184,866 175,775 520,999 558,700 573,225 225,650 224,251 31,559 27,790 46,389 34,825 166,308 135,943 100 188 13 294,008 $12„3744057 $ 661,078 $ 617,737 221,920 197,219 100,000 100,000 - 1,341 46,104 27,300 481,802 485,831 1,121,122 1,133,925 2,632,026 2,563,353 591,512 637,497 77,948 62,615 2,000,000 1,750,000 7,992,522 7,360,592 10,661,982 9,810,704 $13,294,008 $12,374,057 42 EXHIBIT C-2 (Page 1 of 4) CITY OF WICHITA FALLS, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 1989 variance - Favorable 1988 Budget Actual (Unfavorable) Actual Revenues: Taxes: Ad valorem taxes $12,874,770 $12,933,347 $ 58,577 $12,723,158 Penalties and interest 160,000 216,975 56,975 217,639 City sales tax 6,384,000 6,794,509 410,509 6,225,015 Franchise taxes 2,721,000 2,794,283 73,283 2,768,262 Other taxes 223,000 296,272 73,272 261,644 Total taxes 22,362,770 23,035,386 672,616 22,195,718 Charges for services: Golf, tennis and recreation fees 76,730 91,569 14,839 72,489 Tax collection fees 100,874 106,861 5,987 97,568 Other service charges 1,139,417 1,063,125 ( 76,292) 1,125,572 Total charges for services 1,317,021 1,261,555 ( 55,466) 1,295,629 Licenses and permits: Building permits 105,000 101,945 ( 3,055) 301,119 Electrical and plumbing 65,500 88,927 23,427 72,678 Health and animal control 148,000 180,491 32,491 155,959 other licenses and permits 56,600 69,494 12,894 69,159 Total licenses and permits 375,100 440,857 65,757 598,915 Fines: Municipal Court 952,500 813,961 ( 138,539) 863,347 Library 24,500 20,367 ( 4,133) 22,458 Total fines 977,000 834,328 ( 142,672) 885,805 Intergovernmental revenue: Operating grants 552,896 512,931 ( 39,965) 472,868 Wichita Falls school District 237,452 237,452 - 231,319 Wichita County 41,000 41,000 - - Total intergovern- mental revenue 831,348 791,383 ( 39,965) 704,187 43 EXHIBIT C-2 (Page 2 of 4) CITY OF WICHITA FALLS, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Revenues (Cont'd.): Miscellaneous revenue: Parking meters Rentals and concessions Interest Sale of fixed assets other Total miscellaneous revenue Total revenues Expenditures: Administrative services division: Mayor and City Council City Manager Legal Personnel/Risk Management City Clerk Martin Luther King Center Farmer's Market Library Property Management Data Processing Community Information Nondepartmental Municipal Court Building Maintenance Purchasing Total administrative services division Police division: Police Budqet 4,350 104,984 727,700 25,500 40,000 902,534 1989 Actual 3,949 100,989 1,347,193 65,957 79,470 1,597,558 26,765,773 27,961,067 variance - Favorable (Unfavorable) ( 401) ( 3,995) 619,493 40,457 39,470 695,024 1,195,294 1988 Actual 4,022 98,737 1,165,761 28,565 49,068 1,346,153 27,026,407 61,524 61,407 117 42,216 289,358 286,284 3,074 269,909 260,610 237,324 23,286 292,986 399,987 396,933 3,054 295,569 80,223 78,104 2,119 78,267 90,840 90,838 2 86,800 29,575 28,066 1,509 26,675 572,232 499,055 73,177 449,703 47,410 44,158 3,252 47,588 661,210 639,535 21,675 736,491 98,336 92,599 5,737 99,548 1,535,475 1,301,206 234,269 1,408,642 375,122 359,617 15,505 308,906 366,982 356,308 10,674 355,436 47,127 43,514 3,613 49,318 4,916,011 4,514,948 401,063 4,548,054 7,838,301 7,677,500 160,801 7,578,322 44 EXHIBIT C-2 (Page 3 of 4) CITY OF WICHITA FALLS, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Expenditures (Cont'd.): Fire division: Fire Parks and recreation division: Recreation Park maintenance Cemetery Total parks and recreation division Accounting/finance division: Accounting/finance Tax Total accounting/ finance division Planning division: Planning Public works division: Engineering Inspection Street Total public works division Health division: Administration Nursing Air and water pollution Laboratory General environment Food and vector control Animal control Total health division Budqet 5,262,532 447,046 1,949,450 189,934 1989 Actual 5,240,285 435,946 1,877,218 165,572 2,586,430 2,478,736 variance - Favorable (unfavorable) 22,247 11,100 72,232 24,362 107,694 1988 Actual 5,096,563 441,903 2,324,550 170,193 2,936,646 259,155 256,961 2,194 263,841 165,821 161,772 4,049 168,936 424,976 418,733 6,243 432,777 344,181 336,887 7,294 322,779 1,556,361 1,389,730 166,631 823,517 437,668 436,809 859 450,742 2,541,781 2,406,205 135,576 2,563,091 4,535,810 4,232,744 303,066 3,837,350 206,658 198,724 7,934 239,071 749,551 704,477 45,074 648,832 170,927 170,918 9 177,133 108,691 95,708 12,983 97,253 182,033 162,072 19,961 140,765 319,896 313,751 6,145 268,050 185,993 185,312 681 181,316 1,923,749 1,830,962 92,787 1,752,420 45 EXHIBIT C-2 (Page 4 of 4) CITY OF WICHITA FALLS, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 1989 variance - Favorable 1988 Budget Actual (Unfavorable) Actual Expenditures (Cont'd.): Traffic and transportation division: Traffic engineering 1,347,496 1,249,506 97,990 1,217,950 Total expenditures 29,179,486 27,980,301 1,199,185 27,722,861 Excess of revenues over (under) expenditures ( 2,413,713) ( 19,234) 2,394,479 ( 696,454) other financing sources (uses): Operating transfers in 966,100 966,100 - 942,704 operating transfers out ( 185,499) ( 180,558) 4,941 - capitalized leases 77,101 84,970 7,869 - Total other financing sources (uses) 857,702 870,512 12,810 942,704 Excess of revenues and other sources over (under) expenditures and other uses ($ 1,556,011) Fund balance - beginning Fund balance - ending 851,278 $2,407,289 246,250 9,810,704 9,564,454 $10,661,982 $ 9,810,704 46 Wichita is TEXAS\� � SPECIAL REVENUE FUNDS I Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to be expended for specified purposes. seven individual funds are reported within the Special Revenue Funds as follows: Revenue Sharinq Fund The Revenue Sharing Fund accounts for all federal revenue sharing receipts and related expenditures. Civic/Community Promotion Fund The Civic/Community Promotion Fund accounts for the operations of the Wichita Falls Municipal Auditorium and the Wichita Falls Activity Center. 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. Community Development Block Grant Fund The community Development Block Grant Fund accounts for federal grant revenues and related expenditures. Special Revenue Fund The Special Revenue Fund accounts for various revenues generated in the form of contributions, fees, concessions, rents and other charges and their related expenditures. The revenues in this fund are expended to support the activity generating the revenue or as designated by the contributor. 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. Rental Rehabilitation Program Fund The Rental Rehabilitation Program Fund accounts for federal funds received to provide decent, safe, sanitary and affordable rental housing for lower income families within the City by rehabilitating existing substandard rental units to a condition which brings them into compliance with the Standard Housing Code and the requirements of the U.S. Department of Housing and urban Development. EXHIBIT D-1 CITY Or WICHITA rALLS, TEXAS SPECIAL REVEMKIE FUNDS COMBINING BALANCE SHEET SKPTK BER 30, 1989 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1988 Civic/ Hotel/ Community Rental Revenue Community Hotel Development Special Section 8 Rehabilitation Totals Sharing Promotion Tax Block Grant Revenue Housing Proqram 1989 1988 ASSETS Cash and short-term investments $ 294,060 $ 7,345 $ 11,042 $ - $564,737 $204,567 $ - $1,081,751 $1,125,963 Receivables: Taxes and assessments - - 184,479 - - - - 184,479 156,554 Government agencies - 4,848 - 1,655,417 - - 86,128 1,746,393 2,378,137 Other 298 - - - 4,277 - - 4,575 4,206 Prepaid items 310 18,030 90 1 18,431 124,817 Total assets $ 2946358 112,503 11956521 $16673,447 $569,104 $2046568 $ 86,128 $3,035,629 $3, 789,677 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ - $12,270 $ - $ 66,522 S 9,660 $ 594 $ - $ 89,046 $ 221,967 v Accrued payroll - 1,224 - 2,014 - 1,382 - 4,620 5,207 Payable to other City funds - - - 15,515 - - 1 15,516 332,316 Payable to government agencies - - - - - 18,561 - 18,561 18,267 other liabilities - 1,104 555 107 7,504 619 - 9,968 47,465 Deferred revenue 87,762 Total liabilities 14,598 555 84,238 17,164 21,155 1 137,711 712,984 Fund balance (deficit): Reserved for encumbrances 3,961 - - 855,397 9,613 - - 868,971 304,812 Reserved for prepaid items - 310 - 18,030 90 1 - 18,431 124,817 Unreserved: Designated for subsequent years expenditures 290,397 - - 715,782 542,237 183,413 86,127 1,817,956 2,622,343 Undesignated - ( 2,405) 194,966 ( 1) 192,560 24,721 Total fund balance (deficit) 294,358 ( 2,095) 194,966 1,589,209 551,940 183,413 86,127 2,897,918 3,076,693 Total liabilities and fund balance $ 294,358 $12,503 $195,521 $1,671 447 $569,304 $204,568 $ 86, 128 $3,035,629 $3,789,677 A CD CITY OF WICHITA FALLS, TEXAS SPECIAL REVERIE FUNDS COMIRING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES 10 FUND BALANCE - BUDGET AND ACTUAL FOR THE TEAR EmED SEPTE BEt 30, 1989 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTE®El 30, 1988 Civic/ Hotel/ Community Revenue Community Motel Development Special Section 8 Sharing Promotion Tax Block Grant Revenue Housing Revenues: Taxes $ - $ - $609,553 $ - $ - $ - Intergovernmental revenue - - - 1,203,000 - 1,671,406 Miscellaneous revenue 28,854 197,037 941 6,262 355,555 - Total revenues 28,854 197,037 610, 494 1,209,262 355,555 1,671,406 Expenditures: Current: Administrative services division 1,835 374,438 407,776 373,091 44,179 1,528,268 Parks and recreation division 70,999 - - 38,875 174,223 - Accounting/finance division 5,791 - - - - - Public works division - - - 835,864 - - Health division - - - 87,717 - - Traffic and transpor- tation division 264,586 - - 11,619 - - capital outlay 1,849 - - 3,610 20,654 - Total expenditures 345,060 374,438 407,776 1,350,776 239,056 1,528,268 Excess of revenues over (under) expenditures ( 316,206) ( 177,401) 202,718 ( 141,514) 116,499 143,138 Other financing sources (uses): Operating transfers in - 175,000 - - - - operating transfers out - - ( 175,000) - - - Total other financing sources (uses) - 175,000 ( 175,000) - - - Excess of revenues and other sources over (under) expenditures and other uses ( 316,206) ( 2,401) 27,718 ( 141,514) 116,499 143,138 Fund balance - beginning 610,564 306 167,248 1,730,723 435,441 40,275 Fund balance (deficit) - ending 1 294,358 (5 26095) $194, 966 $1,589,209 15514940 1 183, 413 EXHIBIT D-2 Totals 1989 1988 Rental variance - Rehabilitation Favorable Program Actual Budget (Unfavorable) Actual $ - $ 609,553 $ 565,000 $ 44,553 $ 587,386 154,000 3,028,406 3,060,784 ( 32,378) 2,823,485 588,649 514,105 74,544 515,143 154,000 4,226,608 4,139,889 86,719 3,926,014 160,009 2,889,596 3,187,753 298,157 2,829,119 - 284,097 661,397 377,300 462,417 - 5,791 6,469 678 33,230 - 835,864 1,845,909 1,010,045 621,759 - 87,717 92,107 4,390 84,428 - 276,205 777,778 501,573 524,221 26,113 385,630 359,517 386,621 160,009 4,405,383 6,957,043 2,551,660 4,941,795 ( 6,009) ( 178,775) ( 2,817,154) 2,638,379 ( 1,015,781) - 175,000 175,000 - 193,545 ( 175,000) ( 175,000) ( 193,545) ( 6,009) ( 178,775) ($2,817,154) $2,638,379 ( 1,015,781) 92,136 3,076,693 4,092,474 $ 866127 $26897, 918 $3,076,697 EXHIBIT D-3 CITY OF WICHITA FALLS, TEXAS REVENUE SHARING FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1989 AND 1988 ASSETS Cash and short-term investments Receivables: other Total assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade Fund balance: Reserved for encumbrances Unreserved: Designated for subsequent years expenditures Total fund balance Total liabilities and fund balance 1989 1988 $ 294,060 $ 665,971 298 763 $ 294,358 4=666,734 $ - $ 56,170 3,961 258,133 290,397 352,431 294,358 610,564 $ 294,358 $ 666,734 49 EXHIBIT D-4 CITY OF WICHITA FALLS, TEXAS REVENUE SHARING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Revenues: Miscellaneous revenue Expenditures: Current: Administrative services division Parks and recreation division Accounting/finance division Traffic and transporta- tion division capital outlay Total expenditures Excess of revenues over (under) expenditures Fund balance - beginning Fund balance - ending 1989 Budqet Actual $ - $ 28,854 variance - Favorable (Unfavorable) $ 28,854 1988 Actual $ 43,452 3,638 1,835 1,803 1,220 110,343 70,999 39,344 131,050 6,469 5,791 678 33,230 369,241 264,586 104,655 328,808 97,596 1,849 95,747 350,267 587,287 345,060 242,227 844,575 ($ 587,287) ( S 316,206) 610,564 294,358 $ 271,081 ( 801,123) 1,411,687 $ 610,564 50 EXHIBIT D-5 CITY OF WICHITA FALLS, TEXAS CIVIC/COMMUNITY PROMOTION FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1989 AND 1988 ASSETS Cash and short-term investments Receivables: other Prepaid items Total assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade Accrued payroll other liabilities Total liabilities Fund balance (deficit): Reserved for encumbrances Reserved for prepaid items Unreserved: Undesignated Total fund balance (deficit) Total liabilities and fund balance 1989 1988 $ 7,345 $ 6,618 4,848 3,443 310 105 $ 12,503 $ 10,166 $ 12,270 $ 8,375 1,224 1,485 1,104 - 14,598 9,860 - 36,748 310 105 ( 2,405) ( 36,547) ( 2,095) 306 $ 12,503 $ 10,166 51 EXHIBIT D-6 CITY OF WICHITA FALLS, TEXAS CIVIC/COMMUNITY PROMOTION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 1989 variance - Favorable 1988 Budqet Actual (Unfavorable) Actual Revenues: Miscellaneous revenue $ 166,500 $ 197,037 $ 30,537 $ 167,631 Expenditures: Current: Administrative services division 378,352 374,438 3,914 353,563 capital outlay - - - 7,613 Total expenditures 378,352 374,438 3,914 361,176 Excess of revenues over (under) expenditures ( 211,852) ( 177,401) 34,451 ( 193,545) other financing sources (uses): Operating transfers in 175,000 Excess of revenues and other sources over (under) expenditures and other uses ($ 36,852) Fund balance - beginning Fund balance (deficit) - ending ($ 175,000 - 2,401) $ 34,451 306 2,095) 193,545 306 $ 306 52 EXHIBIT D-7 CITY OF WICHITA FALLS, TEXAS HOTEL/MOTEL TAX FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1989 AND 1988 ASSETS Cash and short-term investments Receivables: Taxes and assessments Total assets LIABILITIES AND FUND BALANCE Liabilities: other liabilities Fund balance: Unreserved: Undesignated Total liabilities and fund balance 1989 1988 $ 11,042 $ 10,694 184,479 156,554 $ 195,521 $ 167,248 $ 555 $ - 194,966 167,248 $ 195,521 $ 167,248 53 EXHIBIT D-8 CITY OF WICHITA FALLS, TEXAS HOTEL/MOTEL TAX FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 1989 variance - Favorable Budqet Actual (Unfavorable) Revenues: Taxes $ 565,000 $ 609,553 $ 44,553 Miscellaneous revenue 12,000 941 ( 11,059) Total revenues 577,000 610,494 33,494 Expenditures: Current: Administrative services division 409,000 407,776 1,224 Excess of revenues over (under) expenditures 168,000 202,718 34,718 other financing sources (uses): operating transfers out ( 175,000) ( 175,000) - Excess of revenues and other sources over (under) 1988 Actual $ 587,386 9,174 596,560 559,469 37,091 ( 193,545) expenditures and other uses ($ 7,000) 27,718 $ 34,718 ( 156,454) Fund balance - beginning 167,248 323,702 Fund balance - ending $ 194,966 $ 167,248 54 EXHIBIT D-9 CITY OF WICHITA FALLS, TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1989 AND 1988 1989 1988 ASSETS Receivables: Government agencies $1,655,417 $2,011,450 Prepaid items 18,030 18,732 Total assets $1.673,447 $2,030,182 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ 66,522 $ 140,547 Accrued payroll 2,014 2,374 Payable to other City funds 15,515 109,266 other liabilities 187 47,272 Total liabilities 84,238 299,459 Fund balance: Reserved for encumbrances 855,397 2,568 Reserved for prepaid items 18,030 18,732 Unreserved: Designated for subsequent years expenditures 715,782 1,709,423 Total fund balance 1,589,209 1,730,723 Total liabilities and fund balance $1,673,447 $2,030,182 55 EXHIBIT D-10 CITY OF WICHITA FALLS, TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Revenues: Intergovernmental revenue Miscellaneous revenue Total revenues Expenditures: Current: Administrative services division Parks and recreation division Public works division Health division Traffic and transporta- tion division capital outlay Total expenditures Excess of revenues over (under) expenditures Fund balance - beginning Fund balance - ending 1989 Variance - Favorable 1988 Budqet Actual (Unfavorable) Actual $ 1,243,632 $ 1,203,000 ($ 40,632) $ 1,269,000 - 6,262 6,262 22 1,243,632 1,209,262 ( 34,370) 1,269,022 420,130 373,091 47,039 417,265 106,874 38,875 67,999 124,690 1,845,909 835,864 1,010,045 621,759 92,107 87,717 4,390 84,428 408,537 11,619 396,918 195,413 60,588 3,610 56,978 - 2,934,145 1,350,776 1,583,369 1,443,555 ($ 1,690,513) ( 141,514) 1,730,723 $ 1,589,209 ,1,548,999 ( 174,533) 1,905,256 $ 1,730,723 56 EXHIBIT D-11 CITY OF WICHITA FALLS, TEXAS SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1989 AND 1988 ASSETS Cash and short-term investments Receivables: Other Prepaid items Total assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade other liabilities Total liabilities Fund balance: Reserved for encumbrances Reserved for prepaid items Unreserved: Designated for subsequent years expenditures Total fund balance Total liabilities and fund balance 1989 1988 $ 564,737 $ 442,680 4,277 - 90 - $ 569,104 $ 442,680 $ 9,660 7,504 17,164 9,613 90 542,237 551,940 $ 569,104 $ 7,046 193 7,239 7,363 428,078 435,441 $ 442,680 57 EXHIBIT D-12 CITY OF WICHITA FALLS, TEXAS SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 1989 variance - Favorable 1988 Budqet Actual (Unfavorable) Actual Revenues: Miscellaneous revenue $ 335,605 $ 355,555 $ 19,950 $ 294,790 Expenditures: Current: Administrative services division 97,345 44,179 53,166 65,974 Parks and recreation division 444,180 174,223 269,957 206,677 Capital outlay 227,446 20,654 206,792 17,970 Total expenditures 768,971 239,056 529,915 290,621 Excess of revenues over (under) expenditures ($ 433,366) 116,499 $ 549,865 4,169 Fund balance - beginning 435,441 431,272 Fund balance - ending $ 551,940 $ 435,441 58 EXHIBIT D-13 CITY OF WICHITA FALLS, TEXAS SECTION 8 HOUSING FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1989 AND 1988 ASSETS Cash and short-term investments Receivables: Government agencies Prepaid items Total assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade Accrued payroll Payable to other City funds Payable to government agencies other liabilities Deferred revenue Total liabilities Fund balance: Reserved for prepaid items Unreserved: Designated for subsequent years expenditures Undesignated Total fund balance Total liabilities and fund balance 1989 1988 $ 204,567 $ - - 263,691 1 105,980 $ 204,568 $ 369,671 $ 594 $ 599 1,382 1,348 - 221,420 18,561 18,267 618 - - 87,762 21,155 329,396 1 105,980 183,413 40,275 ( 1) ( 105,980) 183,413 40,275 $ 204,568 $ 369,671 59 EXHIBIT D-14 CITY OF WICHITA FALLS, TEXAS SECTION 8 HOUSING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Revenues: Intergovernmental revenue Miscellaneous revenue Total revenues Expenditures: Current: Administrative services division capital outlay Total expenditures Excess of revenues over expenditures Fund balance - beginning Fund balance - ending 1989 Budqet Actual $ 1,633,152 $ 1,671,406 1,633,152 1,671,406 1,633,152 1,633,152 S - 1,528,268 1,528,268 143,138 40,275 183,413 variance - Favorable (Unfavorable) $ 38,254 38,254 104,884 104,884 $ 143,138 1988 Actual $ 1,367,824 74 1,367,898 1,316,852 10,771 1,327,623 40,275 S 40,275 60 EXHIBIT D-15 CITY OF WICHITA FALLS, TEXAS RENTAL REHABILITATION PROGRAM FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1989 AND 1988 ASSETS Receivables: Government agencies Total assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade Payable to other City funds Total liabilities Fund balance: Unreserved: Designated for subsequent years expenditures Total liabilities and fund balance 1989 $ 86,128 $ 86,128 86,127 $ 86,128 1988 $ 102,996 $ 102,996 $ 9,230 1,630 10,860 92,136 1S 102,996 61 EXHIBIT D-16 CITY OF WICHITA FALLS, TEXAS RENTAL REHABILITATION PROGRAM FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Revenues: Intergovernmental revenue Expenditures: Current: Administrative services division Excess of revenues over (under) expenditures Fund balance - beginning Fund balance - ending Budqet $ 184,000 246,136 ($ 62,136) 1989 variance - Favorable 1988 Actual (Unfavorable) Actual $ 154,000 ($ 30,000) $ 186,661 160,009 86,127 114,776 6,009) $ 56,127 71,885 92,136 20,251 $ 86,127 $ 92,136 62 Wichi �s TEXAS\\\�\� DEBT SERVICE FUND The Debt Service Fund, also known as the Interest and Sinking 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. EXHIBIT E-1 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1989 AND 1988 ASSETS Restricted assets: Cash and short-term investments Receivables: Taxes (net of allowance for uncollectible taxes of $130,545 and $189,322) Total assets LIABILITIES AND FUND BALANCE Liabilities payable from restricted assets: Accounts payable - trade Deferred revenue Total liabilities payable from restricted assets Fund balance: Designated for debt service Total liabilities and fund balance 1989 1988 $ 566,089 $ 389,655 394,250 327,611 $ 960,339 $ 717,266 $ - $ 370 375,539 316,473 375,539 316,843 584,800 400,423 $ 960,339 $ 717,266 63 EXHIBIT E-2 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Revenues: Taxes: Ad valorem taxes Miscellaneous: Interest Total revenues Expenditures: Principal retirement Interest and paying agent fees Total expenditures Excess of revenues over expenditures Fund balance - beginning Fund balance - ending 1989 variance - Favorable Budqet Actual (Unfavorable) $ 2,285,740 $ 2,354,692 $ 68,952 5,000 117,109 112,109 2,290,740 2,471,801 181,061 1988 Actual $ 2,363,809 55,931 2,419,740 635,000 635,000 - 605,000 1,655,740 1,652,424 3,316 1,683,618 2,290,740 2,287,424 3,316 2,288,618 $ - 184,377 $ 184,377 131,122 400,423 269,301 $ 584,800 $ 400,423 64 WichitaC Is TEXAS\C 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 Proprietary Funds). The six Capital Projects Funds are as follows: 1980 General Improvements This fund was established to account for the projects financed by the 1980 General obligation Bonds. significant projects accounted for in this fund included drainage improvements, installation of traffic control equipment, and improvements to the Central services Complex. 1981 C.O. General Improvements This fund was established to account for the projects financed by the 1981 Certificates of obligation. significant projects accounted for in this fund included the construction of a solid waste transfer station and the improvements to Holliday Creek designed to increase flood control capabilities. 1981 G.O. General Improvements This fund was established to account for the projects financed by the 1981 General obligation Bonds. Significant projects accounted for in this fund included street improvements and the construction of a storm drain. 1982 General Improvements This fund was established to account for the projects financed by the 1982 General obligation Bonds. Significant projects accounted for in this fund included park improvements, street improvements and the construction of a softball complex. 1985 Holliday Creek Protect This fund was established to account for a single project financed by the 1985 General obligation Bonds. The project is designed to increase flood control capabilities in the Holliday Creek area. Capital Improvement Assessments This fund was established to account for special assessments which are capital in nature and enhance the utility, accessibility, or aesthetic value of the affected properties. significant projects accounted for in this fund are streets and sidewalks. EXHIBIT F-1 CITY OF WICHITA FALLS, TEXAS CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1989 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1988 1985 1980 1981 1981 1982 Holliday Capital General C.O. General G.O. General General Creek Improvement Totals Improvements Improvements Improvements Improvements Proiect Assessments 1989 1988 ASSETS Cash and short-term investments $1,313,809 $458,126 $1,948,327 $1,198,224 $6,185,717 $487,089 $11,591,292 $11,571,293 Receivables: Capital improvement assessments - - - - - 446,531 446,531 454,730 Other 678 237 1,007 619 2,071 252 4,864 10,379 Total assets $1,314,487 $458,363 $1,949,334 $1,198,843 $6,187,788 $933,872 $12,042,687 $12,036,402 LIABILITIES AND FUND BALANCE cn Liabilities: Accounts payable - trade $ - $ - $ - $ - $ 101,864 $ - $ 101,864 $ 93,965 Other liabilities - - - 20,218 643 4,550 25,411 74,430 Deferred revenue - - - - - 446,532 446,532 454,730 Total liabilities - - - 20,218 102,507 451,082 573,807 623,125 Fund balance: Reserved for encumbrances - - - - 1,639,923 - 1,639,923 2,600,151 Unreserved: Designated for subsequent years expenditures 1,314,487 458,363 1,949,334 1,178,625 4,445,358 482,790 9,828,957 8,813,126 Total fund balance 1,314,487 458,363 1,949,334 1,178,625 6,085,281 482,790 11,468,880 11,413,277 Total liabilities and fund balance $1,314,487 $458,363 $1,949,334 $1,198,843 $6,187,788 $933,872 $12,042,687 $12,036,402 ON ON Revenues: Miscellaneous: Capital improvement assessments Interest Other Total revenues Expenditures: Park improvements Central services complex Softball complex Holliday Creek improvements Total expenditures Excess of revenues over (under) expenditures Fund balance - beginning Fund balance - ending CITY OF WICHITA FALLS, TEXAS CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTE14BER 30, 1989 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1988 1985 1980 1981 1981 1982 Holliday Capital General C.O. General G.O. General General Creek Improvement Improvements Improvements Improvements Improvements Project Assessments $ - $ - $ - $ - $ - $ 8,199 97,059 31,594 144,788 88,801 312,961 40,473 4,215 10,000 1,440 - 205,467 16 101,274 41,594 146,228 88,801 518,428 48,688 - - - 12,153 - - - - - - 877,257 - - - - 12,153 877,257 101,274 41,594 146,228 76,648 ( 358,829) 48,688 1,213,213 416,769 1,803,106 1,101,977 6,444,110 434,102 $1,314,487 $458,363 $1,949,334 $1,178,625 $6,085,281 482 790 EXHIBIT F-2 Totals 1989 1988 $ 8,199 $ 20,530 715,676 715,594 221,138 50,000 945,013 786,124 12,153 6,520 - 13,954 - 2,500 877,257 1,268,201 889,410 1,291,175 55,603 ( 505,051) 11,413,277 11,918,328 $11,468,880 $11,413,277 Wichita is TEXAS ' ENTERPRISE FUNDS 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. The Enterprise Funds include the following: Airport Fund The Airport Fund was established to account for the operating revenues and expenses of the Wichita Falls Municipal Airport. The airport is operated on land leased from the Department of Defense. Commercial and private aviation share airport facilities and runways owned by Sheppard Air Force Base. Transit Fund The Transit Fund accounts for the operation of the Wichita Falls Transit System. The system is supported from passenger fees, subsidies from the General Fund and subsidies from the Urban Mass Transportation Administration. sanitation Fund The Sanitation Fund was established to account for the operating revenues and expenses associated with the collection of residential garbage and refuse produced by commercial establishments within the city of Wichita Falls. Although a program of the City government, the Sanitation Fund is operated as a separate enterprise and the accounting records are maintained on an enterprise fund basis. Water and Sewer Fund The water and Sewer Fund was established for control of the operating revenues and expenses of the city of Wichita Falls water and sewer utility. To comply with bond ordinances and accounting policies, a number of funds have been established to account for water and sewer maintenance and operations, billing and collection, extensions and improvements, and debt service. The various funds used to account for the different functions have been combined into the water and Sewer Fund as presented in the financial statements. rn V ASSETS Current assets: Cash and short-term investments Receivables: Customer and trade Government agencies Other Inventory Prepaid items Total current assets Restricted assets: Cash and short-term investments Other Total restricted assets Plant and equipment: Land and betterments Buildings, systems and improvements Machinery and equipment Furniture and fixtures Motor vehicles and equipment Construction in progress Less accumulated depreciation Total plant and equipment Other assets: Deferred charges Total assets EXHIBIT G-1 (Page 1 of 2) CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1989 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1988 Water and Totals Airport Transit Sanitation Sewer 1989 1988 $ 127,729 $ 1,863 $2,356,727 $ 6,760,801 $ 9,247,120 $ 6,593,748 21,426 - 502,822 1,198,651 1,722,899 1,718,822 - 160,445 - - 160,445 186,615 73,142 - 7,282 15,213 95,637 44,646 - - - 562,712 562,712 562,097 186 5 2,270 2,062 4,523 8,339 222,483 162,313 2,869,101 8,539,439 11,793,336 9,114,267 - - - 6,541,269 6,541,269 9,249,344 - - - 97,754 97,754 142,181 - - - 6,639,023 6,639,023 9,391,525 1,468,175 61,925 653,692 22,414,888 24,598,680 24,573,404 1,451,662 626,868 2,298,370 69,415,042 73,791,942 61,494,239 13,608 67,822 92,206 2,548,787 2,722,423 2,679,738 12,477 6,128 4,750 24,805 48,160 46,456 - - - 3,670 3,670 3,670 - - - 2,099,148 2,099,148 9,446,967 2,945,922 762,743 3,049,018 96,506,340 103,264,023 98,244,474 ( 1,080,063) ( 80,490) ( 396,997) ( 31,111,890) ( 32,669,440) ( 30,839,511) 1,865,859 682,253 2,652,021 65,394,450 70,594,583 67,404,963 - - - 617,893 617,893 658,130 $2,088,342 $844,566 $5,521,122 $81,190,805 $ 89,644,835 $86,568,805 EXHIBIT G-1 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET (CONT'D.) SEPTE14BER 30, 1989 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1988 Water and Totals Airport Transit Sanitation Sewer 1989 1988 LIABILITIES AND FUND EQUITY Current liabilities payable from current assets: Accounts payable - trade $ 5,950 $ 7,151 $ 109,199 $ 318,797 $ 441,097 $ 718,981 Accrued payroll 1,184 21,197 82,530 150,489 255,400 238,022 Payable to other City funds - 160,259 - - 160,259 187,342 Government agencies 2,318 - - - 2,318 1,506 Other liabilities 73,233 7,076 82,767 163,076 180,558 Total current liabilities payable from current assets 82,685 188,607 198,805 552,053 1,022,150 1,326,409 Current liabilities payable from restricted assets: Contracts and trade - - - 222,439 222,439 765 rn Revenue bonds - current maturities - - - 640,000 640,000 600,000 00 Accrued interest - revenue bonds - - - 302,458 302,458 308,558 Matured bonds payable - - - 3,000 3,000 3,000 Deferred revenue - - 54,000 54,000 108,000 Total current liabilities payable from restricted assets - - 1,221,897 1,221,897 1,020,323 Long-term liabilities: Payable to U.S. Government - - - 1,076,623 1,076,623 1,093,040 Revenue bonds, less current maturities - - - 22,195,000 22,195,000 22,835,000 Total long-term liabilities - - - 23,271,623 23,271,623 23,928,040 Long-term liabilities payable from restricted assets: Customer deposits - - - 1,035.217 1,035,217 984,753 Total liabilities 82,685 188,607 198,805 26,080,790 26,550,887 27,259,525 Fund equity: Contributed capital 2,277,385 818,745 2,907,626 16,155,947 22,159,703 21,988,951 Retained earnings: Reserved for revenue bond debt service - - - 2,867,097 2,867,097 2,905,568 Unreserved ( 271,728) ( 162,786) 2,414,691 36,086,971 38,067,148 34,414,841 Total retained earnings (deficit) ( 271,728) ( 162,786) 2,414,691 38,954,068 40,934,245 37,320,409 Total fund equity 2,005,657 655,959 5,322,317 55,110,015 63,093,948 59,309,360 Total liabilities and fund equity $2,088,342 $844,566 $5,521,122 $81,190,805 $89,644,835 $86,568,885 rn CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATE14ENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTE14BER 30, 1988 Operating revenues: Charges for services Rents, concessions and other Total operating revenues Operating expenses: Personnel services Supplies and materials Maintenance and repairs Utilities and other services Insurance and contract support Depreciation and amortization Total operating expenses Operating income (loss) Non -operating revenues (expenses): Interest income Gain (loss) on sale of assets Litigation proceeds Interest expense and paying agent fees Contributions from operating grants Total non -operating revenues (expenses) Income (loss) before operating transfers Operating transfers: Operating transfers in Operating transfers out Net operating transfers Net income (loss) Retained earnings (deficit) - beginning Retained earnings (deficit) - ending Water and Airport Transit Sanitation Sewer $ 17,013 $150,955 $5,399,549 $12,190,329 183,882 3,000 1,452 175,483 200,895 153,955 5,401,001 12,365,812 EXHIBIT G-2 Totals 1989 1988 $17,757,846 $17,659,546 363,817 326,457 18,121,663 17,986,003 28,970 336,235 1,732,114 2,993,006 5,090,325 4,924,630 3,156 48,301 128,579 651,720 831,756 651,800 97,777 62,603 2,299,915 1,795,727 4,256,022 5,015,457 96,420 23,499 183,555 1,928,874 2,232,348 2,306,175 2,909 24,320 166,676 322,399 516,304 514,913 91,734 14,585 58,785 1,715,262 1,880,366 1,692,622 320,966 509,543 4,569,624 9,406,988 14,807,121 15,105,597 ( 120,071) ( 355,588) 831,377 2,958,824 3,314,542 2,880,406 4,232 - 178,081 1,178,256 1,360,569 970,852 - - 250 ( 145) 105 ( 1,764) - - - 52,000 52,000 423,709 ( 10) - - ( 800,707) ( 800,717) ( 716,105) - 160,445 - - 160,445 286,066 4,222 160,445 178,331 429,404 772,402 962,758 ( 115,849) ( 195,143) 1,009,708 3,388,228 4,086,944 3,843,164 - 180,558 - - 180,558 228,224 - - ( 380,692) ( 272,974) ( 653,666) ( 630.270) - 180,558 ( 380,692) ( 272,974) ( 473,108) ( 402,046) ( 115,849) ( 14,585) 629,016 3,115,254 3,613,836 3,441,118 ( 155,879) ( 148,201) 1,785,675 35,838,814 37,320,409 33,879,291 ($ 271,728) ($162,786) $2,414,691 $38,954,068 $40,934,245 $37,320,409 V 0 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Sources of funds: Net income (loss) Items not requiring (providing) working capital: Depreciation and amortization Lose on sale of assets Working capital provided (used) by operations Contributed capital Customer deposits, net Decrease in restricted assets Increase in current liabilities payable from restricted assets Total sources of funds Application of funds: Purchase of fixed assets Retirement of revenue bonds Payment of U.S. Government obligation Decrease in current liabilities payable from restricted assets Total application of funds Net increase (decrease) in working capital Summary of net changes in working capital: Increase (decrease) in current assets: Cash and short-term investments Receivables: Customer and trade Government agencies Other Inventory Prepaid items Net increase (decrease) in current assets Increase (decrease) in current liabilities: Accounts payable - trade Accrued payroll Payable to other City funds Payable to Government agencies Other liabilities Net increase (decrease) in current liabilities Net increase (decrease) in working capital EXHIBIT G-3 Water and Totals Airport Transit Sanitation Sewer 1989 1988 ($ 115,849) ($ 14,585) $ 629,016 $ 3,115,254 $ 3,613,836 $ 3,441,118 91,734 14,585 58,785 1,715,262 1,880,366 1,692,622 - - - 145 145 1,764 ( 24,115) - 687,801 4,830,661 5,494,347 5,135,504 - - - 170,752 170,752 228,970 - - - 50,464 50,464 62,668 - - - 2,752,502 2,752,502 524,582 - - - 201,574 201,574 - ( 24,115) - 687,801 8,005,953 8,669,639 5,951,724 540 - 6,527 5,022,827 5,029,894 4,436,705 - - - 640,000 640,000 600,000 - - - 16,417 16,417 15,900 - - - - - 128,547 540 - 6,527 5,679,244 5,686,311 5,181,152 ($ 24,655)� $ 681,274 $ 2,326,709 $ 2,983,328 $ 770,572 ($ 13,519) $ 1,863 $ 720,944 $ 1,944,084 $ 2,653,372 $ 1,087,007 ( 7,811) - 21,281 ( 9,393) 4,077 ( 32,754) - ( 26,170) - - ( 26,170) 27,800 73,142 - 3,265 ( 25,416) 50,991 ( 41,405) - - - 615 615 62,189 156 ( 270) 336 ( 4,038) ( 3,816) 4,982 51,968 ( 24,577) 745,826 1,905,852 2,679,069 1,107,819 2,419 ( 2,673) 58,103 ( 335,734) ( 277,885) 320,537 208 5,178 6,438 5,554 17,378 ( 123,258) - ( 27,082) - - ( 27,082) 30,130 812 - - - 812 1,506 73,184 - 11 ( 90,677) ( 17,482) 108,332 76,623 ( 24,577) 64,552 ( 420,857) ( 304,259) 337,247 ($ 24,655) $ - $ 681,274 $ 2,326,709 $ 2,983,328 $ 770,572 Wichita 1S TEXAS INTERNAL SERVICE FUND The Internal service Fund is 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. The city's Internal Service 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. EXHIBIT H-1 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1989 AND 1988 ASSETS Current assets: cash and short-term investments Inventory Prepaid items Total current assets Plant and equipment: Land and betterments Buildings, systems and improvements Furniture and fixtures Motor vehicles and equipment Less accumulated depreciation Total plant and equipment Total assets LIABILITIES AND FUND EQUITY current liabilities: Accounts payable - trade Accrued payroll Total current liabilities Fund equity: contributed capital Retained deficit Total fund equity Total liabilities and fund equity 1989 1988 $ 461,552 $ 851,460 280,384 294,053 63 487 741,999 1,146,000 433,658 433,658 4,008,948 4,008,948 5,974 5,974 15,379,165 14,485,375 19,827,745 18,933,955 8,149,602) ( 7,686,282) 11,678,143 11,247,673 $12,420,142 $12,393,673 $ 271,337 $ 296,687 62,111 62,023 333,448 358,710 12,376,706 12,060,118 ( 290,012) ( 25,155) 12,086,694 12,034,963 12 420,142 �12,393,673 71 EXHIBIT H-2 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Operating revenues: Rents, concessions and other Operating expenses: Personnel services Supplies and materials Maintenance and repairs Utilities and other services Insurance and contract support Depreciation and amortization Total operating expenses operating income Non -operating revenues (expenses): Interest income Loss on sale of assets Total non -operating revenues (expenses) Income before operating transfers Operating transfers: Operating transfers out Net income (loss) Retained deficit - beginning Retained deficit - ending 1989 1988 $5,246,378 $5,478,984 1,033,928 1,062,218 884,893 905,319 1,297,791 1,130,581 206,304 258,202 24,525 2,759 1,710,900 1,579,623 5,158,341 4,938,702 88,037 540,282 - 7,244 ( 40,460) ( 42,372) ( 40,460) ( 35,128) 47,577 505,154 ( 312,434) ( 264,857) ( 25,155) ($ 290,012) ( 312,434) 192,720 ( 217,875) ($ 25,155) 72 EXHIBIT H-3 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Sources of funds: Net income (loss) Items not requiring working capital: Depreciation and amortization Loss on sale of assets Working capital provided by operations contributed capital Proceeds from sale of assets Total sources of funds Application of funds: Purchase of fixed assets Net increase (decrease) in working capital summary of net changes in working capital: Increase (decrease) in current assets: cash and short-term investments Receivables: other Inventory Prepaid items Net increase (decrease) in current assets Increase (decrease) in current liabilities: Accounts payable - trade Accrued payroll Net increase (decrease) in current liabilities Net increase (decrease) in working capital 1989 1988 ($ 264,857) $ 192,720 1,710,900 1,579,623 40,460 42,372 1,486,503 1,814,715 316,588 253,214 157,271 87,885 1,960,362 2,155,814 2,339,101 2,105,691 ($ 378,739) $ 50,123 ($ 389,908) $ 99,535 - ( 347) ( 13,669) ( 37,613) ( 424) ( 230) ( 404,001) 61,345 ( 25,350) 35,679 88 ( 24,457) ( 25,262) 11,222 ($ 378,739) $ 50,123 73 TRUST AND AGENCY FUNDS Fiduciary Funds account for assets held by the City of Wichita Falls in a trustee capacity or as an agent for other governmental units and/or other funds. Trust and Agency Funds include the following: Employee Benefit Trust This expendable 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. Wichita Falls Reinvestment Zone $1 This expendable trust fund is used to account for ad valorem taxes levied on captured increments of growth in real property values in a designated zone. The tax revenues derived from this increment are to be spent on public improvements within this designated zone. Social Security Fund This agency fund is used to account for the collection and payment of social security (FICA) taxes. Payroll Fund This agency fund is used to account for the collection of payroll gross amounts from the various City funds and the distribution of payroll checks to city employees. Tax Collection Fund This agency fund is used to account for the collection and payment of ad valorem taxes to the City Is General and Debt Service Funds, the Wichita Falls Independent School District, and Midwestern State University. Accounts Payable Fund This agency fund is used to account for the collection of monies from the various City funds, and the payment of those monies to vendors for goods and services rendered. Deferred Compensation Fund This agency fund is used to account for contributions made by the city and employees to a tax deferred savings plan and the subsequent disbursement of contributions and interest earned upon retirement, death or termination of employment. EXHIBIT I-1 CITY OF WICHITA FALLS, TEXAS TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET SEPTMEH 30, 1989 WITH COMPARATIVE TOTALS AT SEPTOUMM 30, 1980 Expendable Trust Funds Aqencv Funds Employee Wichita Falls Benefit Reinvestment Social Tax Accounts Deferred Totals Trust Zone it Security Payroll Collection Payable Compensation 1989 1988 ASSETS Cash and short-term investments $167,823 $13,114 $116,012 $73,644 $ 132,524 $ - $834,143 $1,337,260 $ 980,348 Receivables: Taxes and assessments - 1,435 - - 2,834,523 - - 2,835,958 2,675,399 Other City funds - - - - - - - - 1,341 Government agencies 16,556 - - - - - - 16,556 - Other ' _ 125 Total assets $1846379 $14,549 $116,012 , 73644 $ 12,967, 047 1 - 1834, 143 14,189,774 13,657,213 LIABILITIES AND FUND BALANCE v Liabilities: 41 Accounts payable - trade $ 19,413 $ - $116,012 $73,644 5 130,824 $ - $ - $ 339,893 $ 154,507 Payable to other City funds - - - - - - - - 1,341 Payable to government agencies - - - _ 2,834,523 _ _ 2,834,523 2,675,217 Estimated health claims payable 186,863 - - - - - - 186,863 193,027 Other liabilities 426 - - - 1,700 834,143 836,269 689,427 Total liabilities 206,702 - 116,012 73,644 2,967,047 - 834,143 4,197,548 3,713,519 Fund balance (deficit): Designated for subsequent years expenditures - 14,549 - - - - - 14,549 42,069 Undesignated ( 22,323) - - - - - _ ( 22,323) ( 98,375) Total fund balance (deficit) ( 22,323 1 14,549 - 7,774) ( 56,306) Total liabilities and fund balance 11841379 114, 549 $116,012 173, 644 $2,967,047 $ $834, 143 $4,189,77{ 13, 657,213 EXHIBIT I-2 CITY OF WICHITA FALLS, TEXAS EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1989 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1988 Employee Wichita Falls Benefit Reinvestment Totals Trust Zone $1 1989 1988 Revenues: Ad valorem taxes $ - $10,744 $ 10,744 $ 5,344 contributions 2,110,748 - 2,110,748 1,926,449 Total revenues 2,110,748 10,744 2,121,492 1,931,793 Expenditures: Current: Administrative services division 2,034,696 38,264 2,072,960 2,099,343 Excess of revenues over (under) expenditures 76,052 ( 27,520) 48,532 ( 167,550) other financing sources (uses): operating transfers in - - - 60,000 Excess of revenues and other financing sources over (under) expenditures and uses 76,052 ( 27,520) 48,532 ( 107,550) Fund balance (deficit) - beginning ( 98,375) 42,069 ( 56,306) 51,244 Fund balance (deficit) - ending ( 22,323) $14,549 ($ 7,774) ($ 56,306,) 75 EXHIBIT I-3 (Page 1 of 3) CITY OF WICHITA FALLS, TEXAS AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED SEPTEMBER 30, 1989 Balance Balance October 1, September 30, 1988 Additions Deductions 1989 SOCIAL SECURITY FUND ASSETS Cash and short-term investments $ Receivables: other City funds Government agencies Total assets $ LIABILITIES A t bl d ccoun s paya e - tra e $ - Payable to other City funds - Total liabilities $ - PAYROLL FUND ASSETS Cash and short-term investments $ - Receivables: Other city funds - Government agencies - Total assets $ LIABILITIES Accounts payable - trade $ Payable to other City funds Total liabilities $ $ 3,018,889 $ 2,902,877 $ 116,012 2,976,079 2,976,079 - 43,292 43,292 - 6,038,260 $ 5,922,248 $ 116,012 $ 3,018,889 $ 2,902,877 $ 116,012 2,902,877 2,902,877 - $ 5,921,766 $ 5,805,754 $ 116,012 $ 22,574,889 $ 22,501,245 $ 73,644 21,919,251 21,919,251 - 576,471 576,471 - $ 45,070„611 $ 44,996,967 73,644 $ 73,644 $ - $ 73,644 1,515,974 1,515,974 - - $ 1,589,618 $ 1,515,974 $ 73,644 76 EXHIBIT I-3 (Page 2 of 3) CITY OF WICHITA FALLS, TEXAS AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Balance Balance October 1, September 30, 1988 Additions Deductions 1989 TAX COLLECTION FUND ASSETS Cash and short-term investments $ 66,766 $ 35,027,251 $ 34,961,493 $ 132,524 Receivables: Taxes and assessments 2,675,217 20,217,067 20,057,761 2,834,523 Total assets $2,741,983 $ 55,244,318 55,019,254 $2,967,047 LIABILITIES Accounts payable - trade $ 63,144 $ 19,875,825 $ 19,808,145 $ 130,824 Payable to government agencies 2,675,217 60,296,685 60,137,379 2,834,523 Payable to other City funds - 19,669,139 19,669,139 - other liabilities 3,622 1,700 3,622 1,700 Total liabilities 2 741,983 99,843,349 $ 99,618,285 2 967,047 ACCOUNTS PAYABLE FUND ASSETS Cash and short-term investments $ - $ 51,354,462 $ 51,354,462 $ - Receivables: Other City funds 1,341 51,449,716 51,451,057 - Total assets i 1,341 $102,804,178 $102,805,519 $ - LIABILITIES Payable to other City funds $ 1,341 $ 114,443 $ 115,784 $ - Total liabilities $ 1,341 § 114,443 $ 115,784. $� 77 EXHIBIT I-3 (Page 3 of 3) CITY OF WICHITA FALLS, TEXAS AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Balance Balance October 1, September 30, 1988 Additions Deductions 1989 DEFERRED COMPENSATION FUND ASSETS Cash and short-term investments $ 685,370 $ 148,773 $ - $ 834,143 Total assets $ 685,370 $ 148,773 $ - $ 834,143 LIABILITIES other liabilities $ 685,370 $ 148,773 $ - $ 834,143 Total liabilities $ 685,370 $ 148,773 S - $ 834,143 TOTALS - ALL AGENCY FUNDS Cash and short-term investments $ 752,136 $112,124,264 $111,720,077 $1,156,323 Receivables: Taxes and assessments 2,675,217 20,217,067 20,057,761 2,834,523 Other City funds 1,341 76,345,046 76,346,387 - Government agencies - 619,763 619,763 - Total assets 3 428„694 $209,306,140 $208,743,988 $3,990,846 LIABILITIES Accounts payable - trade $ 63,144 $ 22,968,358 $ 22,711,022 $ 320,480 Payable to other City funds 1,341 24,202,433 24,203,774 - Payable to government agencies 2,675,217 60,296,685 60,137,379 2,834,523 other liabilities 688,992 150,473 3,622 835,843 Total liabilities $3,428„694 $107,617,949 1$ 07,055,797 $3,990,846 78 SUPPORTING SCHEDULES EXHIBIT J-1 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES SEPTEMBER 30, 1989 Fiscal Year General Obliqation Bonds Water and Sewer Revenue Bonds Ending Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds September 30, Maturities on Bonds and Interest Maturities on Bonds and Interest Total 1990 $ 670,000 $ 1,615,815 $ 2,285,815 $ 640,000 $ 1,814,748 $ 2,454,748 $ 4,740,563 1991 710,000 1,575,615 2,285,615 680,000 1,773,788 2,453,788 4,739,403 1992 755,000 1,531,240 2,286,240 725,000 1,728,228 2,453,228 4,739,468 1993 805,000 1,482,165 2,287,165 775,000 1,677,478 2,452,478 4,739,643 1994 860,000 1,427,827 2,287,827 835,000 1,621,678 2,456,678 4,744,505 1995 920,000 1,367,627 2,287,627 895,000 1,559,888 2,454,888 4,742,515 1996 985,000 1,300,927 2,285,927 960,000 1,491,868 2,451,868 4,737,795 1997 1,060,000 1,227,052 2,287,052 1,035,000 1,416,987 2,451,987 4,739,039 1998 1,140,000 1,145,963 2,285,963 1,120,000 1,335,222 2,455,222 4,741,185 1999 1,230,000 1,057,043 2,287,043 1,210,000 1,245,622 2,455,622 4,742,665 2000 1,330,000 959,873 2,289,873 1,305,000 1,148,217 2,453,217 4,743,090 2001 1,435,000 853,473 2,288,473 1,410,000 1,042,512 2,452,512 4,740,985 2002 1,550,000 737,955 2,287,955 1,525,000 928,302 2,453,302 4,741,257 2003 1,670,000 613,180 2,283,180 1,650,000 803,252 2,453,252 4,736,432 2004 1,805,000 477,910 2,282,910 1,785,000 667,952 2,452,952 4,735,862 2005 1,955,000 331,705 2,286,705 1,930,000 520,690 2,450,690 4,737,395 2006 2,115,000 172,373 2,287,373 2,090,000 361,465 2,451,465 4,738,838 2007 - - - 2,265,000 187,995 2,452,995 2,452,995 $20,995,000 $17,877,743 $38,872,743 $22,835,000 $21,325,892 $44,160,892 $83,033,635 00 0 General obligation bonds: General Obligation Refunding Bonds, Series 1986 Total general obligation bonds Interest Rates and (Dates) 5.0, 5.25, 5.5, 6.0, 6.25, 6.5, 6.75, 7.0, 7.25, 7.5, 7.65, 7.8, 7.9, 8.0, 8.05, 8.1, 8.15 (3/1, 9/1) CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE SEPTE14BER 30, 1989 Final Annual Issue Maturity Serial Date Date Payments 7/01/86 9/01/06 $ 305,000 (1987) 605,000 (1988) 635,000 (1989) 670,000 (1990) 710,000 (1991) 755,000 (1992) 805,000 (1993) 860,000 (1994) 920,000 (1995) 985,000 (1996) 1,060,000 (1997) 1,140,000 (1998) 1,230,000 (1999) 1,330,000 (2000) 1,435,000 (2001) 1,550,000 (2002) 1,670,000 (2003) 1,805,000 (2004) 1,955,000 (2005) 2,115,000 (2006) EXHIBIT J-2 (Page 1 of 2) Bonds Retired or Authorized Issued Refunded Outstandinq $22,540,000 $22,540,000 $ 1,545,000 $20,995,000 22,540,000 22,540,000 1,545,000 20,995,000 OD Revenue bonds: Water and Sewer System Refunding Revenue Bonds, Series 1986 Total revenue bonds Total all bonds Interest Rates and (Dates) 5.0, 5.5, 6.1, 6.4, 6.7, 7.0, 7.2, 7.4, 7.6, 7.8, 7.9, 8.0, 8.05, 8.1, 8.2, 8.25, 8.3 (2/1, 8/1) CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.) SEPTEMBER 30, 1989 Final Annual Issue Maturity Serial Date Date Payments 7/01/86 8/01/07 $ 395,000 (1987) 575,000 (1988) 600,000 (1989) 640,000 (1990) 680,000 (1991) 725,000 (1992) 775,000 (1993) 835,000 (1994) 895,000 (1995) 960,000 (1996) 1,035,000 (1997) 1,120,000 (1998) 1,210,000 (1999) 1,305,000 (2000) 1,410,000 (2001) 1,525,000 (2002) 1,650,000 (2003) 1,785,000 (2004) 1,930,000 (2005) 2,090,000 (2006) 2,265,000 (2007) EXHIBIT J-2 (Page 2 of 2) Bonds Retired or Authorized Issued Refunded Outstandinq 24,405,000 24,405,000 1,570,000 22,835,000 24,405,000 24,405,000 1,570,000 22,835,000 $46,945,000 $46,945,000 $ 3,115,000 $43,830,000 EXHIBIT J-3 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE COVERAGE - REVENUE BONDS SEPTEMBER 30, 1989 Water and Sewer Revenue Bonds: Net income (Exhibit G-2) Add: Revenue bond interest expense and paying agent fees Depreciation and amortization operating transfers out Net earnings for determining debt service coverage Total principal and interest requirements Number of years remaining to pay bonds Average annual principal and interest requirement Average annual debt service coverage Maximum principal and interest requirement Maximum debt service coverage $ 3,115,254 $ 764,121 1,715,262 272,974 2,752,357 $ 5,867,611 $44,160,893 18 $ 2,453,383 2.39 $ 2,456,678 2.39 82 EXHIBIT J-4 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCES SEPTEMBER 30, 1989 AND 1988 General Fixed Assets: Land and betterments Buildings and improvements Machinery and equipment Furniture and fixtures Motor vehicles and equipment Construction in progress Total general fixed assets Investment in General Fixed Assets: From general obligation bonds From local revenues and contributions From federal government contributions From unidentified sources Total investment in general fixed assets 1989 $14,418,475 14,182,741 3,695,289 440,047 91,198 648,983 $33,476,733 $ 734,066 3,922,046 2,157,555 26,663,066 $33,476,733 1988 $14,327,189 14,159,440 3,411,385 461,194 124,805 694,263 $33,178,276 $ 734,066 3,468,170 2,152,096 26,823,944 $33,178,276 83 00 A General fixed assets, October 1, 1988 Additions: Expenditures from local revenues and contributions Expenditures from federal government contributions Completed construction projects Total additions Total Deductions: Assets sold, traded or retired General fixed assets, September 30, 1989 EXHIBIT J-5 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY SOURCES FOR THE YEAR ENDED SEPTEMBER 30, 1989 Motor Buildings Machinery Furniture Vehicles Land and and and and and Construction Total Betterments Improvements Equipment Fixtures Equipment In Proqress $33,178,276 $14,327,189 $14,159,440 $3,411,385 $461,194 $124,805 $694,263 453,876 91,286 26,394 292,955 2,010 6,263 34,968 5,459 - - 5,459 - - - - - 80,248 - - - ( 80,248) 459,335 91,286 106,642 298,414 2,010 6,263 ( 45,280) 33,637,611 14,418,475 14,266,082 3,709,799 463,204 131,068 648,983 160,878 - 83,341 14,510 23,157 39,870 - $33,476,733 $14,418,475 $14,182,741 $3,695,289 $440,047 $ 91,198 $648,983 e EXHIBIT J-6 CIT£ OF WICHITA FALLS, TEXAS GAL FIXED ASSETS SCHEDULE OF G E0RAL FIXED ASSETS - BT FONCTION Alm ACTIVITr SEPTEI®[ 30, 1989 Motor Buildings Machinery Furniture vehicles Land and and and and and Construction Total Betterments Improvements Equipment Fixtures Equipment In Procress Administrative services division: Mayor and City Council $ 12,863 S - $ - S 7,645 S 5,218 S - $ - General Administration 1,880,677 1,319,364 336,872 116,948 36,998 70,495 - Legal and City Clerk 23,800 - - 11,633 12,167 - - Personnel/Risk Management 94,373 - - 85,072 9,301 - Data Processing 726,745 - - 710,671 16,074 - - Martin Luther Xing Center 372,042 - 349,839 6,259 15,944 - - Library 972,030 610,870 291,443 20,765 48,952 - - Municipal Court 578,791 230,000 312,788 25,509 10,494 - - Farmer's Market 946 - - - 946 - - Building Maintenance 15,153 - - 10,659 4,494 - - Purchasing 4,420 - - 2,700 1,720 - - Midtovu 2000 428,578 233,798 184,780 - - - - Auditorium/Activity Center 6,521,616 434,422 5,940,057 74,580 72,557 - - Community Development 84,964 78,358 6,269 337 - - - Total administrative services division 11.706.998 2.906.812 7,422,048 1,072,778 234,865 70,495 - Police division: Police 4,540,280 11095,114 1.323.486 1,388,084 71,583 13,030 648,983 Fire division: Fire 2.130,346 188.851 1,515,142 381,313 45,040 - - Parke and recreation division: Parks 12,805,309 9,800, 050 2,775,021 220,944 9,294 - - Golf 148,302 112,539 27,544 8,219 - - - Cemetery 28.040 15.212 - 12,828 - - - Total parks and recreation division 12.961,651 9.927,801 2.802.565 241,991 9,294 - - Accounting/finance division: Accounting/finance 32,076 - - 16,141 15,935 - - Tax 15,052 - - 11,596 3,456 - - Total accounting/finance division 47.128 - - 27,737 19,391 - - Planning division: Planning 89.215 - - 68,298 14,654 6,263 - Public works division: Engineering 299,286 111,120 19,087 155,943 11,726 1,410 - Inspection 62,263 13,059 - 45,118 4,086 - _ Street Maintenance 196.084 29.937 86.373 74,476 5,298 - Total public works division 557,633 154,116 105,460 275,537 21,110 1,410 - Health division: Health 1.294,224 111.231 976.775 188,434 17,784 - - Traffic and transportation division: Traffic Engineering 124,149 34,550 37,265 49,349 2,985 - - Parking Meters 5.109 - - 1,768 3,341 - - Total traffic and transportation division 129,258 34.550 37.265 51,117 6,326 - - Total general fixed assets $33,476,733 $14,418,475 $14,182,741 12.6 695 289 $440,047 91 198 648 9a3 EXHIBIT J-7 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED SEPTEMBER 30, 1989 Beginning Ending Balance Transfers Balance 10/1/88 Additions Deletions In (Out) 9/30/89 Administrative services division: Mayor and City Council $ 12,863 $ - $ - $ - $ 12,863 General Administration 1,881,382 45,836 45,836 ( 705) 1,880,677 Legal and City Clerk 23,800 - - - 23,800 Personnel/Risk Management 26,475 67,898 - - 94,373 Data Processing 706,593 22,554 2,402 - 726,745 Martin Luther King Center 372,042 - - - 372,042 Library 940,062 31,968 - - 972,030 Municipal Court 573,681 13,716 8,606 - 578,791 Farmer's Market 946 - - - 946 Building Maintenance 15,153 - - - 15,153 Purchasing 4,420 - 553 553 4,420 Midtown 2000 418,578 - - - 418,578 Auditorium/Activity Center 6,521,616 - - - 6,521,616 Community Development 84,964 - - - 84,964 Total administrative services division 11,582,575 181,972 57,397 ( 152) 11,706,998 Police division: Police 4,425,365 125,051 6,675 ( 3,461) 4,540,280 Fire division: Fire 2,096,071 39,760 3,507 ( 1,978) 2,130,346 Parks and recreation division: Parks 12,806,853 85,030 86,021 ( 553) 12,805,309 Golf 148,302 - - - 148,302 Cemetery 24,805 3,235 - - 28,040 Total parks and recreation division 12,979,960 88,265 86,021 ( 553) 12,981,651 Accounting/finance division: Accounting/finance 33,919 - 1,843 - 32,076 Tax 17,347 - 2,295 - 15,052 Total accounting/finance division 51,266 - 4,138 - 47,128 Planning division: Planning 81,071 9,072 553 ( 375) 89,215 Public works division: Engineering 297,674 555 1,295 2,352 299,286 Inspection 59,088 3,175 - - 62,263 Street Maintenance 191,186 4,898 - - 196,084 Total public works division 547,948 8,628 1,295 2,352 557,633 Health division: Health 1,285,647 5,112 702 4,167 1,294,224 Traffic and transportation division: Traffic Engineering 123,264 1,475 590 - 124,149 Parking Meters 5,109 - - - 5,109 Total traffic and transportation division 128,373 1,475 590 - 129,258 Total general fixed assets $33,178,276 S 459,335 $160,878 $ - $33,476,733 86 EXHIBIT J-8 CITY OF WICHITA FALLS, TEXAS AIRPORT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1989 Plant and Equipment: Land and betterments Buildings and improvements Machinery and equipment Furniture and fixtures Total plant and equipment Accumulated Depreciation: Land and betterments Buildings and improvements Machinery and equipment Furniture and fixtures Total accumulated depreciation Net plant and equipment Balance Balance 10/1/88 Additions Deletions 9/30/89 $1,468,175 $ - $ - $1,468,175 1,451,662 - - 1,451,662 13,608 - - 13,608 11,937 540 - 12,477 2,945,382 540 - 2,945,922 520,462 58,892 - 579,354 453,031 30,716 - 483,747 7,302 1,313 - 8,615 7,534 813 - 8,347 988,329 91,734 - 1,080,063 $1,957,053 ($ 91,194) $ - $1,865,859 87 EXHIBIT J-9 CITY OF WICHITA FALLS, TEXAS TRANSIT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1989 Plant and Equipment: Land and betterments Buildings and improvements Machinery and equipment Furniture and fixtures Total plant and equipment Accumulated Depreciation: Buildings and improvements Machinery and equipment Furniture and fixtures Total accumulated depreciation Net plant and equipment Balance Balance 10/1/88 Additions Deletions 9/30/89 $ 61,925 $ - $ - $ 61,925 626,868 - - 626,868 67,822 - - 67,822 6,128 - - 6,128 762,743 - - 762,743 36,692 7,988 - 44,680 27,245 6,150 - 33,395 1,968 447 - 2,415 65,905 14,585 - 80,490 $ 696,838 ($ 14,585) $ _ - ® $ 682,253 88 EXHIBIT J-10 CITY OF WICHITA FALLS, TEXAS SANITATION FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1989 Plant and Equipment: Land and betterments Buildings and improvements Machinery and equipment Furniture and fixtures Total plant and equipment Accumulated Depreciation: Land and betterments Buildings and improvements Machinery and equipment Furniture and fixtures Total accumulated depreciation Net plant and equipment Balance Balance 10/1/88 Additions Deletions 9/30/89 $ 653,692 $ - $ - $ 653,692 2,298,370 - - 2,298,370 95,660 6,527 9,981 92,206 4,750 - - 4,750 31052,472 6,527 9,981 3,049,018 13,356 1,805 - 15,161 281,331 48,853 - 330,184 49,977 7,944 ( 9,981) 47,940 3,529 183 - 3,712 348,193 58,785 ( 9,981) 396,997 $2,704,279 ($ 52,258) $ - $2,652,021 89 O EXHIBIT J-11 CIw OF WICHIT.L FALLS, TEODIH WATER AND SEWER FUND MART, EQUIPMENT AND DEFRECIITIOM FOR THE YEAR ERDED EEPTNEQ 30, 19" Plant and Equipment Accumulated Depreciation Net Plant Balance Transfers Balance Balance Balance and 10/1/88 Additions Deletions In (Out) 9/30/89 10/1/88 Additions Deletions 9/30/89 Equipment Water Departments Land and betterments $22,304,398 $ 25,276 $ - $ - $22,329,674 $ 4,338,458 $ 229,639 $ - $ 4,568,097 $27,761,577 Buildings, systems and improvements 36,719,171 1,499,363 - 8,991,646 47,210,180 13,965,447 800,131 - 14,765,578 32,444,602 Machinery and equipment 2,290,895 43,931 - - 2,334,826 1,340,356 42,579 - 1,382,935 951,891 Furniture and fixtures 22,356 - - - 22,356 14,318 1,499 - 15,817 6,539 Motor vehicles 3,670 - - - 3,670 3,670 - - 3,670 - Construction in progress 8,117,381 965,481 - ( 8,991,646) 91,216 - - - - 91,216 Total Water Department $69„457,671 $2,534,051 $ - S _ - $71,.991,922 $19, 6626249 51,073,848 $ - $20,736,097 $51,255,825 Sewer Department: Land and betterments $ 85,214 $ - $ - $ - $ 85,214 $ - $ - $ - $ - $ 85,214 Buildings, systems and improvements 20,398,168 613,548 - 1,193,148 22,204,864 9,594,932 595,037 - 10,189,969 12,014,895 Machinery and equipment 211,754 2,570 363 - 213,961 179,067 6,010 218 184,859 29,102 Furniture and fixtures 1,285 1,163 - - 2,448 836 129 - 965 1,483 Construction in progress 1,329,585 1,871,495 - ( 2,193,148) 2,007,932 - - - - 2,007,932 Total Sever Department $22,026,006 $2,488,776 S 363 $ - $24,514,419 $ 9,774,835 $ 601, 176 $ 218 S10, 375, 793 $14, 138,626 Combined Water and Gower Departments: Land and betterments $22,389,612 $ 25,276 $ - $ - $22,414,888 $ 4,338,458 $ 229,639 $ - $ 4,568,097 $17,846,791 Buildings, systems and improvements 57,117,339 2,112,911 - 10,184,794 69,415,044 23,560,379 1,395,168 - 24,955,547 44,459,497 Machinery and equipment 2,502,649 46,501 363 - 2,548,787 1,519,423 48,589 218 1,567,794 980,993 Furniture and fixtures 23,641 1,163 - - 24,804 15,154 1,628 - 16,782 8,022 Motor vehicles 3,670 - - - 3,670 3,670 - - 3,670 - Construction in progress 9,446,966 2,836,976 - ( 10,184,794) 2,099,148 - - - - 2,099,148 Total Combined Water and Sewer Departments $91,483,877 $5,022,827 363 $ - $96,506,341 129,437,084 $1, 675, 024 $ 218 $31,111,890 $65,394„451 EXHIBIT J-12 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1989 Plant and Equipment: Land and betterments Buildings and improvements Furniture and fixtures Motor vehicles and equipment Total plant and equipment Accumulated Depreciation: Buildings and improvements Furniture and fixtures Motor vehicles and equipment Total accumulated depreciation Net plant and equipment Balance Balance 10/1/88 Additions Deletions 9/30/89 $ 433,658 $ - $ - $ 433,658 4,008,948 - - 4,008,948 5,974 - - 5,974 14,485,375 2,339,101 1,445,311 15,379,165 18,933,955 2,339,101 1,445,311 19,82",745 399,162 80,085 - 479,247 3,516 423 - 3,939 7,283,604 1,630,392 1,247,580 7,666,416 7,686,282 1,710,900 1,247,580 8,149,602 $11,247,673 $ 628,201 $ 197,731 $11,678,143 91 Wichi �s TEXAS\\\\\� STATISTICAL SECTION (UNAUDITED) Wichita' s TEXAS\\\\\C to N EXHIBIT K-1 CITY OF WICHITA FALLS, TEXAS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (GENERAL FUND ONLY) - LAST TEN FISCAL YEARS (UNAUDITED) Finance Fiscal Administrative Parke and and Public Traffic and Year Services Police Fire Recreation Accountinq Planninq works Health Transportation Total 1979-1980 $3,391,765 $3,567,359 $2,559,343 $1,555,801 $254,141 $ 458,406 $5,194,544 $ 937,651 $1,124,071 $19,043,081 1980-1981 4,640,642 4,233,007 2,950,147 2,286,817 257,656 1,092,712 9,236,190 1,119,781 1,516,665 27,333,617 1981-1982 4,546,379 5,015,271 3,341,335 2,911,708 577,133 1,125,120 8,524,692 1,482,774 1,562,567 29,086,979 1982-1983 5,001,439 5,685,793 3,883,766 2,584,235 563,936 770,007 7,815,997 1,320,500 1,502,279 29,127,952 1983-1984 7,280,506 6,169,438 4,321,815 2,661,586 480,639 965,744 6,711,669 1,432,771 2,037,931 32,062,099 1984-1985 5,569,049 6,357,917 4,923,585 2,566,444 503,270 339,011 4,751,428 1,655,368 1,381,583 28,047,655 1985-1986 4,895,221 7,422,813 4,601,651 2,396,365 525,034 405,519 5,220,861 1,732,984 1,276,928 28,477,376 1986-1987 4,972,244 7,242,687 4,844,086 2,928,346 469,576 269,662 5,233,671 1,939,250 1,296,474 29,195,996 1987-1988 4,548,054 7,578,322 5,096,563 2,936,646 432,777 322,779 3,837,350 1,752,420 1,217,950 27,722,861 1988-1989 4,514,948 7,677,500 5,240,285 2,478,736 418,733 336,887 4,232,744 1,830,962 1,249,506 27,980,301 EXHIBIT K-2 CITY OF WICHITA FALLS, TEXAS GENERAL GOVERNMENTAL REVENUES BY SOURCE (GENERAL FUND ONLY) - LAST TEN FISCAL YEARS (UNAUDITED) Charges Licenses Fiscal for and Intergovernmental Miscellaneous Year Taxes services Permits Fines Revenue Revenue Total 1979-1980 $13,292,089 $2,561,174 $303,713 $535,045 $1,037,185 $ 912,501 $18,641,707 1980-1981 15,617,860 3,414,456 235,263 539,842 2,568,732 1,215,997 23,592,150 1981-1982 16,477,646 4,272,199 234,446 689,301 1,543,277 1,621,773 24,838,642 1982-1983 18,023,712 4,354,410 284,438 808,502 683,388 1,292,813 25,447,263 1983-1984 20,176,122 5,449,200 342,431 753,274 562,519 1,418,298 28,701,844 1984-1985 21,328,803 1,904,610 463,613 815,148 443,014 1,637,783 26,592,971 1985-1986 21,943,688 1,117,348 418,823 836,851 479,325 1,348,003 26,144,038 1986-1987 21,498,718 1,164,667 353,679 840,467 641,949 1,080,753 25,580,233 1987-1988 22,195,718 1,295,629 598,915 885,805 704,187 1,346,153 27,026,407 1988-1989 23,035,386 1,261,555 440,857 834,328 791,383 1,597,558 27,961,067 EXHIBIT K-3 CITY OF WICHITA FALLS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS - LAST TEN FISCAL YEARS (UNAUDITED) Total Collections Percent Delinquent as Percent Fiscal Total Current Tax of Levy Tax Total Tax of Current Year Tax Levv Collections Collected Collections Collections Levy 1979-1980 $ 7,582,393 $ 7,383,608 97.38% $129,220 $ 7,512,828 99.08% 1980-1981 9,315,184 9,031,661 96.96% 152,342 9,184,003 98.59% 1981-1982 10,896,934 10,508,375 96.43% 181,577 10,689,952 98.10% 1982-1983 12,490,900 11,900,747 95.28% 249,522 12,150,269 97.28% 1983-1984 14,050,573 13,524,855 96.26% 301,973 13,826,828 98.41% 1984-1985 14,199,969 13,722,790 96.64% 497,660 14,220,450 100.14% 1985-1986 13,940,609 13,479,038 96.69% 399,623 13,878,661 99.56% 1986-1987 14,401,856 13,743,656 95.43% 378,280 14,121,936 98.06% 1987-1988 14,508,804 13,998,858 96.49% 487,072 14,485,930 99.84% 1988-1989 14,664,571 14,123,525 96.31% 387,088 14,510,613 98.95% 94 ko cn EXHIBIT K-4 CITY OF WICHITA FALLS, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY - LAST TEN FISCAL YEARS (UNAUDITED) Ratio of Total Assessed Real Property Personal Property Total to Total Fiscal Assessed Estimated Assessed Estimated Assessed Estimated Estimated Year Value Actual Value Value Actual Value Value Actual Value Actual Value 1979-1980 $ 552,869,965 $ 789,814,236 $205,360,309 $293,371,870 $ 758,230,274 $1,083,186,106 70.00% 1980-1981 906,905,547 906,905,547 335,093,095 335,093,095 1,241,998,642 1,241,998,642 100.00% 1981-1982 1,068,352,963 1,068,352,963 384,544,358 384,544,358 1,452,897,321 1,452,897,321 100.00% 1982-1983 1,324,181,729 1,324,181,729 478,256,955 478,256,955 1,802,438,684 1,802,438,684 100.00% 1983-1984 1,432,631,714 1,432,631,714 449,813,802 449,813,802 1,882,445,516 1,882,445,516 100.00% 1984-1985 1,587,368,510 1,587,368,510 468,310,782 468,310,762 2,055,679,292 2,055,679,292 100.00% 1985-1986 1,737,427,089 1,737,427,089 489,263,121 489,263,121 2,226,690,210 2,226,690,210 100.00% 1986-1987 1,809,871,886 1,809,871,886 505,911,411 505,911,411 2,315,783,297 2,315,783,297 100.00% 1987-1988 1,789,937,697 1,789,937,697 484,882,457 484,882,457 2,274,820,154 2,274,820,154 100.00% 1988-1989 1,789,389,697 1,789,389,697 509,853,169 509,853,169 2,299,242,866 2,299,242,866 100.00% EXHIBIT K-5 CITY OF WICHITA FALLS, TEXAS PROPERTY TAX RATES AND TAX LEVIES - ALL OVERLAPPING GOVERNMENTS - LAST TEN FISCAL YEARS (UNAUDITED) Fiscal WFISD CVISD Year Citv School (1) School (2) County Total Tax Rates Per $100 Valuation 1979-1980 $1.00 $1.06 $ .89 $ .87 $3.82 1980-1981 .75 .74 1.07 .87 3.43 1981-1982 .75 .73 1.07 .31 2.86 1982-1983 .69 .69 .69 .22 2.29 1983-1984 .75 .74 .67 .25 2.41 1984-1985 .69 .74 .58 .25 2.26 1985-1986 .63 .87 .64 .24 2.38 1986-1987 .62 .82 .75 .24 2.43 1987-1988 .64 .82 .72 .25 2.43 1988-1989 .64 .85 .81 .27 2.57 Tax Levies 1979-1980 $ 7,582,393 $ 7,862,586 $279,632 $4,622,135 $20,346,746 1980-1981 9,315,184 9,234,676 402,354 4,551,667 23,503,881 1981-1982 10,896,934 10,427,882 402,523 4,551,700 26,279,039 1982-1983 12,490,900 12,233,330 488,457 6,858,581 32,071,268 1983-1984 14,050,573 13,541,058 487,548 7,254,768 35,333,947 1984-1985 14,199,969 14,642,156 479,099 7,680,915 37,002,139 1985-1986 13,940,609 18,631,889 538,827 7,763,760 40,875,085 1986-1987 14,401,856 18,270,216 669,201 7,916,250 41,257,523 1987-1988 14,508,804 18,063,909 660,750 8,188,119 41,421,582 1988-1989 14,664,571 19,273,667 708,713 8,913,815 43,560,766 Notes: (1) WFISD - Wichita Falls Independent School District - 98.49% in Wichita Falls city limits (2) CVISD - City View Independent School District - 75.25% in Wichita Falls city limits FL EXHIBIT K-6 CITY OF WICHITA FALLS, TEXAS TEN LARGEST TAXPAYERS (UNAUDITED) SEPTEMBER 30, 1989 Taxpayer Type of Business Southwestern Bell Telephone utility Texas Utilities Electric Utility JMB Group Trust III Shopping Center Robert Seabury shopping Center/ Entertainment Complex Sprague Electric Manufacturing Panhandle Manufacturing Manufacturing Siemens Manufacturing Wichita Falls Hotel Hotel Partnership Texaco, Inc. Oil and Gas Lone Star Gas Gas Utility Totals January 1, 1988 Assessed valuation $ 46,638,818 33,037,549 31,656,032 15,549,954 13,971,120 10,511,775 8,837,627 7,791,108 7,621,544 7,304,160 $182,919,687 Percentage of Total Assessed Valuation 2.03% 1.44% 1.38% .68% .33% .32% 7.97% 97 EXHIBIT K-7 CITY OF WICHITA FALLS, TEXAS SPECIAL ASSESSMENT COLLECTIONS (CAPITAL IMPROVEMENT ASSESSMENTS FUND) - LAST TEN FISCAL YEARS (UNAUDITED) Current Current Ratio of Fiscal Assessments Assessments collections Year Due collected to Amount Due 1979-1980 $578,872 $109,360 18.90% 1980-1981 718,281 87,983 12.25% 1981-1982 625,599 323,627 51.73% 1982-1983 657,912 107,106 16.28% 1983-1984 656,093 216,304 32.97% 1984-1985 539,756 109,799 20.34% 1985-1986 499,695 36,960 7.40% 1986-1987 475,172 20,465 4.31% 1987-1988 454,730 20,530 4.51% 1988-1989 446,531 8,199 1.84% 98 EXHIBIT K-8 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED) SEPTEMBER 30, 1989 Total assessed property value per 1988 tax roll $2,299,242,866 Maximum tax levy* $2.25/$100 Current tax levy for 1988 tax year .6378/$100 Maximum tax levy in excess of 1988 tax levy 1.6122/$100 Total legal debt margin $37,068,393 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 1988 tax rate is $ .6378 per $100 assessed valuation. * Maximum tax levy established by City Charter 99 r O O EXHTHIT K-9 CITY OF WICBITA FALLS, TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET GENERAL BONDED DEBT PER CAPITA - LAST TEN FISCAL YEARS (UNAUDITED) Ratio of Net General Gross Less Debt Bonded Debt Net General Fiscal Assessed General Service Net General To Assessed Bonded Debt Year Population Value Bonded Debt Funds Bonded Debt Value Per Capita 1979-1980 93,600 $ 758,230,274 $13,558,000 $277,095 $13,280,905 1.75% $142 1980-1981 94,201 1,241,998,642 13,564,000 467,080 13,096,920 1.05% 139 1981-1982 96,500 1,452,897,321 19,153,000 633,207 18,519,793 1.27% 192 1982-1983 97,125 1,802,438,684 17,395,000 705,727 16,689,273 .93% 172 1983-1984 104,500 1,882,445,516 15,375,000 929,646 14,445,354 .77% 138 1984-1985 100,200 2,055,679,292 21,870,000 235,914 21,634,086 1.05% 216 1985-1986 101,300 2,226,690,210 22,540,000 245,043 22,294,957 1.00% 220 1986-1987 99,000 2,315,783,297 22,235,000 269,301 21,965,699 .95% 222 1987-1988 98,500 2,274,820,154 21,630,000 400,423 21,229,577 .93% 216 1988-1989 95,000 2,299,242,866 20,995,000 584,800 20,410,200 .89% 215 EXHIBIT K-10 CITY OF WICHITA FALLS, TEXAS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES - LAST TEN FISCAL YEARS (UNAUDITED) Ratio of Total Debt Service Fiscal Total Debt General to General Year Principal Interest Service Expenditures Expenditures 1979-1980 $1,306,000 $ 423,175 $1,729,175 $19,043,081 9.08% 1980-1981 1,309,000 633,791 1,942,791 27,333,617 7.11% 1981-1982 2,801,000 596,285 3,397,285 29,086,979 11.68% 1982-1983 1,758,000 1,480,829 3,238,829 29,127,952 11.12% 1983-1984 2,020,000 1,365,442 3,385,442 32,062,099 10.56% 1984-1985 1,855,000 1,242,282 3,097,282 28,047,655 11.04% 1985-1986 - 902,453 902,453 28,477,376 3.17% 1986-1987 305,000 1,980,711 2,285,711 29,195,996 7.83% 1987-1988 605,000 1,682,502 2,287,502 29,730,585 7.69% 1988-1989 635,000 1,650,740 2,285,740 27,980,301 8.17% 101 EXHIBIT K-11 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF DIRECT AND OVERLAPPING DEBT (UNAUDITED) SEPTEMBER 30, 1989 Percentage Amount Applicable Applicable Taxing Gross Debt to City of to city of .jurisdiction Outstandinq (1) Wichita Falls (2) Wichita Falls city of Wichita Falls $43,830,000 100.00% $43,830,000 Wichita Falls Independent school District 20,375,000 98.49% 20,067,338 Wichita County 2,657,890 77.23% 2,052,688 City view Independent school District 688,000 75.25% 517,720 Burkburnett Independent school District 8,470,000 1.16% 98,252 Total direct and overlapping debt $76,020,890 $66,565,998 Sources: (1) Listed taxing jurisdictions (2) Herbert R. Smith, Inc. 102 EXHIBIT K-12 CITY OF WICHITA FALLS, TEXAS REVENUE BOND COVERAGE - WATER AND SEWER REVENUE BONDS - LAST TEN FISCAL YEARS (UNAUDITED) Average Annual Average Maximum Net Income Principal Annual Principal Maximum Fiscal Available for and Times and Times Year Debt Service Interest Covered Interest Covered 1979-1980 $2,904,365 $ 536,677 5.41 $1,129,840 2.57 1980-1981 2,843,629 507,350 5.60 1,129,840 2.52 1981-1982 2,773,414 682,840 4.06 1,440,487 1.93 1982-1983 3,242,485 640,749 5.06 1,394,164 2.32 1983-1984 4,844,678 596,430 8.12 1,347,556 3.60 1984-1985 5,239,019 2,374,494 2.21 2,377,437 2.20 1985-1986 4,588,812 2,453,643 1.87 2,457,972 1.87 1986-1987 4,230,749 2,453,511 1.72 2,457,972 1.72 1987-1988 5,805,625 2,453,276 2.37 2,456,678 2.36 1988-1989 5,867,611 2,453,383 2.39 2,456,678 2.39 103 EXHIBIT K-13 CITY OF WICHITA FALLS, TEXAS DEMOGRAPHIC STATISTICS - LAST TEN FISCAL YEARS (UNAUDITED) Median Per Fiscal Estimated Capita Education school Unemployment Year Population (1) Income (2) Level (3) Enrollment (3) Rate (4) 1979-1980 93,600 $ 7,500 12.6 14,386 4.0% 1980-1981 94,201 8,703 13.1 14,378 4.1% 1981-1982 96,500 9,857 13.1 14,256 6.4% 1982-1983 97,125 11,302 13.2 14,184 7.1% 1983-1984 104,500 11,835 13.3 14,428 4.4% 1984-1985 100,200 11,970 13.3 14,118 5.9% 1985-1986 101,300 12,985 13.2 14,159 8.4% 1986-1987 99,000 13,874 13.2 14,249 7.8% 1987-1988 98,500 14,732 13.1 13,856 6.3% 1988-1989 95,000 15,836 13.1 14,861 5.7% Sources: (1) city of Wichita Falls Planning Department (2) Midwestern State University Small Business council (3) Wichita Falls I.S.D. - Educational level is grade equivalent of graduating senior. (4) Texas Employment Commission 104 EXHIBIT K-14 CITY OF WICHITA FALLS, TEXAS PROPERTY VALUE, BUILDING PERMITS AND BANK DEPOSITS - LAST TEN FISCAL YEARS (UNAUDITED) Fiscal Property Building Bank Year Value (1) Permits (2) Deposits (3) 1979-1980 $1,083,186,106 $45,236,067 $ 811,428,863 1980-1981 1,241,998,642 82,811,494 888,732,895 1981-1982 1,452,897,321 56,424,318 961,142,020 1982-1983 1,802,438,684 73,235,522 972,585,375 1983-1984 1,882,445,516 45,959,328 1,011,202,125 1984-1985 2,055,679,292 68,942,474 1,020,034,687 1985-1986 2,226,690,210 40,951,045 1,086,818,201 1986-1987 2,315,783,297 31,161,722 1,107,880,373 1987-1988 2,274,820,154 39,510,717 1,075,698,257 1988-1989 2,299,242,866 34,316,901 1,070,274,273 Sources: (1) city of Wichita Falls Tax Department (2) City of Wichita Falls Planning Department (3) Wichita Falls Times/Record News 105 EXHIBIT K-15 CITY OF WICHITA FALLS, TEXAS MISCELLANEOUS STATISTICAL DATA (UNAUDITED) SEPTEMBER 30, 1989 Date of incorporation Form of government Area Miles of streets Number of street lights Fire protection: Number of stations Number of firemen and officers Police protection: Number of stations Number of police officers Municipal water department: Number of consumers - active Average daily consumption Miles of water mains Sewers: Number of customers - active Miles of sanitary sewers Miles of storm sewers Building permits issued: Number issued Amount issued Recreation and culture: Number of parks Number of libraries Number of volumes Employees - full-time 1889 Council - Manager 53 square miles 580.2 6,482 9 149 1 160 31,373 22,655,000 gallons treated water 800 28,740 650 200 6,823 34,316,901 41 with 1,104 acres 1 127,000 995 106 EXHIBIT K-16 (Page 1 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) SEPTEMBER 30, 1989 Insurance Code A Policy: Company: Policy No.: Policy No.: Policy Period: Perils: Coverages: Deductible: Coinsurance: Premium: B Policy: Company: Policy No.: Policy Period: Perils: Coverage: Deductible: coinsurance: Premium: C Policy: Company: Policy No.: Policy Period: Perils: Coverage: Deductible: Coinsurance: Premium: Building and Contents Fireman's Fund XFX 66157 82 Extra Expense XFX 66157 81 October 1, 1989 to October 1, 1990 Fire, extended coverage, vandalism and malicious mischief, including difference in condition $34,625,144 Building and Contents $ 50,000 Extra Expense $ 100,000 Agreed value, Replacement Cost ....................................$17,500 Boiler and Machinery Continental Insurance BM D 2 78 64 46 October 1, 1989 to October 1, 1990 Comprehensive Blanket $5,000,000 Per occurrence $2,500 N/A ....................................$10,545 Electronic Data Processing Equipment Kemper Lloyds Insurance Company 3HF 503 640-01 October 1, 1989 to October 1, 1990 All Risks $633,200 $ 500 N/A ....................................$ 6,103 D Policy: Excess Worker's Compensation and Employer's Liability Company: Aetna Insurance Company Policy No.: 18 XC 31 SCA Policy Period: October 1, 1989 to October 1, 1990 Perils: Worker's Compensation - Employer's Liability Coverage: Statutory Limits Worker's Compensation $1,000,000 Employer's Liability Deductible: $500,000 Coinsurance: N/A Premium:....................................$35,088 107 EXHIBIT K-16 (Page 2 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.) SEPTEMBER 30, 1989 Insurance Code E Policy: Company: Policy No.: Policy No.: Perils: Coverage: Deductible: coinsurance: Premium: Airport Liability U.S. Fire Insurance Company GLA 45-24729-1 October 1, 1989 to October 1, 1990 Owner's, Landlord, and Tenants Liability $1,000,000 CSL None N/A .....................................$ 1,900 F Policy: Public Official Bond Company: Fidelity & Deposit Company Bond No.: 09688496 Bond Period: June 27, 1989 to June 27, 1990 Insured: City Manager - Jim Berzina Coverage: $25,000 Premium: .....................................$ 88 G Policy: Public official Bond Company: Fidelity & Deposit Company Bond No.: 30237391 Bond Period: August 1, 1989 to August 1, 1990 Insured: Purchasing Agent - Peggy Gahagan Coverage: $2,500 Premium: .....................................$ 50 H Policy: Public Employee Blanket Bond Company: Fidelity & Deposit Company Bond No.: CCP 9367053 Bond Period: January 15, 1989 to January 15, 1990 Insured: Honesty Blanket Position Coverages: $10,000 Inside Premises $ 3,000 Outside Premises Premium: .....................................$ 288 I Policy: Public official Bond Company: Fidelity & Deposit Company Bond No.: 9619935 Bond Period: January 15, 1989 to January 15, 1990 Insured: city clerk - Wilma Thomas Coverage: $25,000 Premium: .....................................$ 88 108 EXHIBIT K-16 (Page 3 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.) SEPTEMBER 30, 1989 Insurance Code J Policy: Public official Bond Company: Aetna Insurance Company Bond No.: S100138239BCA Bond Period: April 22, 1989 to April 22, 1990 Insured: Tax Assessor/Collector - Art DeWitt Coverage: $50,000 Premium: ....................................$ 250 K Policy: Public Official Bond Company: Aetna Insurance Company Bond No.: S100084654BCA Bond Period: August 6, 1989 to August 6, 1990 Insured: Director of Public works - George Bonnett Coverage: $2,500 Premium: ....................................$ 50 L Policy: Public official Bond company: Aetna Insurance Company Bond No.: S100179467BCA Bond Period: July 16, 1989 to July 16, 1990 Insured: Municipal Court Administrator - Don vanadore Coverage: $2,500 Premium: ....................................$ 50 M Policy: Public official Bond Company: Aetna Insurance Company Bond No.: s18072205BCA Bond Period: March 5, 1989 to March 5, 1990 Insured: Director of Finance - Fred Werner Coverage: $25,000 Premium: ....................................$ 88 N Policy: Health Insurance Company: Coordinated Benefits system Policy No.: City of Wichita Falls Employee Benefits Trust Policy Period: October 1, 1989 through September 30, 1990 Perils: Illness and Accidental Injury (Non -work Related) Coverage: $1,000,000 Lifetime Maximum Deductible: $250 Annually Per Person (Maximum 3 Family Members) coinsurance: Coinsurance coverage begins when a limit of 20% reaches $2,500 yearly, then insurance company pays 100% of eligible expenses. Premium: .................Annual Estimate $1,700,000 109 EXHIBIT K-16 (Page 4 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.) SEPTEMBER 30, 1989 Insurance Code o Policy: Company: Policy No.: Policy Period: Perils: Coverages: Deductible: Coinsurance: Premium: P Policy: Company: Policy No.: Policy Period: Perils: Coverage: Deductible Premium: Q Policy: Company: Policy No.: Policy Period Perils: Coverage: Deductible: Premium: Dental Insurance Coordinated Benefits Systems City of Wichita Falls Employee Benefits Trust October 1, 1989 through September 30, 1990 Basic Dental Coverage with orthodontics for Children under 19 $1,000 Annual Maximum - Basic Coverage $1,000 Lifetime Maximum - orthodontics Basic coverage - $100 Annually Per Person (Maximum 3 Family Members); No Deductible for orthodontics 80-20 Basic, 50-50 orthodontics, 50-50 Periodontics ....................Annual Estimate $150,000 Life Insurance Aetna Life and Casualty GT-447782 (Group $) October 1, 1989 through September 30, 1990 Death and Dismemberment Benefits varies from $3,000; $5,000; $7,500; $10,000; $12,000; $14,000; $15,000; Double Indemnity for Accidental Death. Dismemberment Benefits. N/A .....................Annual Estimate $80,000 Life Insurance (Directors only) Pilot Life Insurance company 0548 (Group #) January 1, 1988 to December 31, 1989 Accidental Death and Dismemberment $25,000 N/A ........................Annual Estimate $400 110 GRAPHICS Wichita 'cis 1"EXAS\ � EXHIBIT L-1 35 3c 25 20 =S � � D N N 15 v 1C c c CITY OF WICHITA FALLS, TEXAS CASH AND SHORT-TEPIVI INVESTMENTS 1985 19B6 19B7 19BB 1982 YEARS ENDED SEPTEMBER 30, (UNAUDITED) 50 40 n 30 �g � =r N � D in Cn v 20 10 161 CITY OF WICHITA FALLS, TEXAS TOTAL BONDS PAYABLE 1985 1986 1987 1988 1989 YEARS ENDED SEPTEMBEP 30, EXHIBIT L-2 (UNAUDITED) EXHIBIT L-3 26 24 — 22 20 18 16 14 12 10 8 6 4 2 0 CITY OF WICHITA FALLS, TEXAS GENERAL OBLIGATION BONDS PAYABLE 1985 19B6 19B7 19BB 1989 YEARS ENDED SEPTEMBER 30, (UNAUDITED) 26 24 22 20 18 16 n �v 14 � rr 0 D 12 u)N N v 10 8 6 4 2 0 CITY OF WICHITA FALLS, TEXAS PEVENUE BONDS PAYABLE 1985 1986 1987 1988 1989 YEARS ENDED SEPTEMBEP 30, (UNAUDITED) EXHIBIT L-4 EXHIBIT L-5 n �4 r -r 0 D J D (n En lJ 140 130 120 110 100 90 80 70 60 SO 40 30 20 10 0 CITY OF WICHITA FALLS, TEXAS TOTAL FUND EQUITY 1985 ® RESERVED/DESIGNATED I I I I 1986 1987 1988 1989 YEARS ENDED SEPTEMBER 30, ® UNRESERVED/UNDESIGNATED (UNAUDITED) rn EXHIBIT L-6 CITY OF WICHITA FALLS, TEXAS COMPARISON OF TAX LEVY AND TAX COLLECTIONS 15 14 — / 12 — �—� �\ X\ /\ 10 — X� /\ �\ /\ /\ /\ /\ /\ 9 — 8 8 - Xx N xx /N XN XX N XN XN -%K XN \ X\ X\ XN XN X\ X\ XX r / tan 7 / ` /\ /\ /\ /\ /\ /\ /\ /\ /\ v 6 —/,` X\ X\ X,\ X\ X\ X\ /\ X\ �\ 5-ZN i\ i\ XN XN XN XN XN iN iN 4 / ` /\ /\ X\ /\ /\ X\ /\ /\ XN 3 —/\ /\ X\ /\ /\ /\ X\ /\ XN XN 2 -XN //N i\ i\ /\ i\ i\ i\ i\ i\ _/` /\ /\ /\ /\ /\ /\ /\ /\ /\ 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 YEARS ENDED SEPTEMBER 30, ® TAX LEVY ® TAX COLLECTIONS (UNAUDITED) CITY OF WICHITA FALLS, TEXAS ANALYSIS OF REVENUES BY SOURCE FOR THE YEAR ENDED SEPTEMBER 30, 1989 I NTFRFST ANn M I SCFI I ANF(ll1S r i n. R961 INTERGOVERNMENTAL (6, SERVICE CHARGES C 30 . 4%-3 EXHIBIT L-7 TAXES C41.6%) HERMITS, AND FINES C2.0%) RENTS AND CONCESSIONS C9.0%) (UNAUDITED) EXHIBIT L-8 CITY OF WICHITA FALLS, TEXAS ANALYSIS OF EXPENDITURES BY FUNCTION FOR THE YEAR ENDED SEPTEMBER 30, 1989 SANITATION (8.0%) hEALT PUBLIC WORKS C8.9, DEBT SERVICE C4.0%) FIRE C9.2%) PLANNING (0.69 POL I CE iEWER C17.996) AIRPORT CO.6%) PARKS & RECREATION C4.9%) CAPITAL PROJECTS C1.6%) INTERNAL SERVICE C9.1%) ANSIT CO.9%) VE C16.7%) ACCOUNTING rk FINANCE C0.7%) (UNAUDITED) EXHIBIT L-9 30 28 26 24 22 20 r-� 18 �� 16 r 0 > 14 v 12 10 8 6 4 2 0 CITY OF WICHITA FALLS, TEXAS GENERAL GOVERNMENTAL REVENUES - (GENERAL FUND ONLY) LAST TEN FISCAL YEARS 19BO 1981 1982 1983 1984 1985 1986 1987 1988 1989 YEARS ENDED SEPTEMBER 30, (UNAUDITED) CITY OF WICHITA FALLS, TEXAS GENERAL GOVERNMENTAL EXPENDITURES - (GENERAL FUND ONLY) 35 LAST TEN FISCAL YEARS at 25 20 O —r 0 DIDEn cn 15 v 10 5 n EXHIBIT L-10 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 YEARS ENDED SEPTEMBEP 30, (UNAUDITED) it Wlchita►I S TXS� THE CITY OF WICHITA FALLS PRINT SHOP SERVICES 1300 Seventh • P.O. Box 1431 • Wichita Falls, Texas 76307 817-761-7462