2010 Comprehensive Annual Financial Report Comprehensive
Annual
Financial Report
City of
Wichita Falls,
Texas
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For Year Ended
September 30, 2010
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2010
ISSUED BY:
DEPARTMENT OF FINANCE
T E X A S
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CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2010
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Letterof Transmittal............................................................................................................................... i-vii
GFOA Certificate of Achievement.......................................................................................................... viii
OrganizationalChart.............................................................................................................................. ix
Listof Principal Officials......................................................................................................................... x
FINANCIAL SECTION
IndependentAuditor's Report ................................................................................................................ 1-2
Management's Discussion and Analysis................................................................................................ 3-13
BASIC FINANCIAL STATEMENTS:
Statementof Net Assets................................................................................................................A-1 14
Statement of Activities...................................................................................................................A-2 15
Balance Sheet- Governmental Funds...........................................................................................A-3 16
Reconciliation of the Governmental Funds Balance Sheet to the Statement
ofNet Assets................................................................................................................................A-4 17
Statement of Revenues, Expenditures and Changes in Fund Balances-
GovernmentalFunds....................................................................................................................A-5 18
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of the Governmental Funds to the Statement of Activities...........................................A-6 19
Statement of Fund Net Assets- Proprietary Funds.......................................................................A-7 20-21
Statement of Revenues, Expenses and Changes in Fund Net Assets-
ProprietaryFunds ........................................................................................................................A-8 22
Statement of Cash Flows- Proprietary Funds...............................................................................A-9 23-24
Statement of Fiduciary Assets and Liabilities...............................................................................A-10 25
Notes to the Financial Statements.................................................................................................... 26-58
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule-General Fund......................................................................... B-1 59
Notes to the Required Supplementary Information........................................................................... 60
Texas Municipal Retirement System -Analysis of Funding Progress-
LastTen Plan Years .................................................................................................................... B-2 61
Wichita Falls Firemen's Relief and Retirement Fund -Analysis of Funding Progress................... B-3 62
Wichita Falls Retiree Health Care Plan-Analysis of Funding Progress........................................ B-4 63
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2010
TABLE OF CONTENTS (CONT'D.)
Exhibit Page
COMBINING FINANCIAL STATEMENTS:
Nonmajor Governmental Funds:
CombiningBalance Sheet........................................................................................................C-1 64
Combining Statement of Revenues, Expenditures and Changes in Fund Balances................C-2 65
Budgetary Comparison Schedule—Community Development Block Grant.............................C-3 66
Budgetary Comparison Schedule—Section 8 Housing Fund...................................................C-4 67
Budgetary Comparison Schedule—Home Investment Partnership Agreement Fund..............C-5 68
Budgetary Comparison Schedule—Hotel/Motel Tax Fund.......................................................C-6 69
Budgetary Comparison Schedule—Golf Fund.........................................................................C-7 70
Budgetary Comparison Schedule—MPEC Fund......................................................................C-8 71
Budgetary Comparison Schedule—Debt Service Fund...........................................................C-9 72
Nonmajor Enterprise Funds:
Combining Statement of Net Assets.........................................................................................D-1 73
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ..................D-2 74
Combining Statement of Cash Flows........................................................................................D-3 75-76
Internal Service Funds:
Combining Statement of Net Assets......................................................................................... E-1 77
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets .................. E-2 78
Combining Statement of Cash Flows........................................................................................ E-3 79
Agency Fund:
Statement of Changes in Assets and Liabilities......................................... F-1 80
Component Units:
Combining Statement of Net Assets.........................................................................................G-1 81
Combining Statement of Activities............................................................................................G-2 82
SUPPORTING SCHEDULES:
Combined Schedule of Bonded Debt and Interest Maturities........................................................H-1 83
Combined Schedule of Bonds Payable.........................................................................................H-2 84-89
Debt Service Coverage—Revenue Bonds....................................................................................H-3 90
Capital Assets Used in the Operation of Governmental Funds-
Schedule By Function and Activity...............................................................................................H-4 91
Capital Assets Used in the Operation of Governmental Funds-
Schedule of Changes By Function and Activity H-5 92
Municipal Airport Fund—Capital Assets and Accumulated Depreciation......................................H-6 93
Kickapoo Airport Fund—Capital Assets and Accumulated Depreciation...................................... H-7 94
Transit Fund—Capital Assets and Accumulated Depreciation......................................................H-8 95
Stormwater Drainage Fund-Capital Assets and Accumulated Depreciation................................H-9 96
Sanitation Fund—Capital Assets and Accumulated Depreciation................................................H-10 97
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2010
TABLE OF CONTENTS (CONT'D.)
Exhibit Page
Water and Sewer Fund—Capital Assets and Accumulated Depreciation....................................H-11 98
Waterpark Fund—Capital Assets and Accumulated Depreciation...............................................H-12 99
Fleet Maintenance Fund—Capital Assets and Accumulated Depreciation..................................H-13 100
Duplicating Services Fund—Capital Assets and Accumulated Depreciation...............................H-14 101
Employee Benefit Trust Fund—Capital Assets and Accumulated Depreciation..........................H-15 102
Wichita Falls Economic Development Corporation—Capital Assets and
Accumulated Depreciation..........................................................................................................H-16 103
STATISTICAL SECTION (UNAUDITED)
Net Assets By Component—Last Eight Fiscal Years.....................................................................1-1 104
Changes in Net Assets—Last Eight Fiscal Years ..........................................................................1-2 105-106
Fund Balances, Governmental Funds—Last Ten Fiscal Years......................................................1-3 107
Changes in Fund Balances, Governmental Funds—Last Ten Fiscal Years ..................................1-4 108
Tax Revenues By Source, Governmental Funds—Last Ten Fiscal Years.....................................1-5 109
Assessed and Estimated Actual Value of Taxable Property—Last Ten Fiscal Years....................1-6 110
Direct and Overlapping Property Tax Rates—Last Ten Fiscal Years ............................................1-7 111
Principal Property Taxpayers—Current Year and Nine Years Ago................................................1-8 112
Property Tax Levies and Collections—Last Ten Fiscal Years........................................................1-9 113
Ratios of Outstanding Debt by Type—Last Ten Fiscal Years.......................................................1-10 114
Ratios of General Bonded Debt Outstanding—Last Ten Fiscal Years..........................................1-11 115
Direct and Overlapping Governmental Activities Debt ..................................................................1-12 116
Computation of Legal Debt Margin—Last Ten Fiscal Years .........................................................1-13 117
Pledged Revenue Coverage—Water and Sewer Revenue Bonds—
LastTen Fiscal Years..................................................................................................................1-14 118
Demographic Statistics—Last Ten Fiscal Years...........................................................................1-15 119
Principal Employers—Current Year and Ten Years Ago...............................................................1-16 120
Full-Time Equivalent City Government Employees by Function/Program—
LastTen Fiscal Years..................................................................................................................1-17 121
Operating Indicators by Function/Program—Last Ten Fiscal Years .............................................1-18 122
Capital Asset Statistics by Function/Program—Last Ten Fiscal Years.........................................1-19 123
Graphics:
Cashand Investments...............................................................................................................J-1 124
TotalBonds Payable..................................................................................................................J-2 125
General Obligation Bonds Payable............................................................................................J-3 126
RevenueBonds Payable ...........................................................................................................J-4 127
GeneralFund Equity..................................................................................................................J-5 128
Comparison of Tax Levy and Collections .................................................................................J-6 129
Revenues by Source—FYE 9/30/09..........................................................................................J-7 130
Expenditures by Function—FYE 9/30/09 ..................................................................................J-8 131
General Governmental Revenues (General Fund Only)............................................................J-9 132
General Governmental Expenditures(General Fund Only) .....................................................J-10 133
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Introductory Section
Mc I ra (5 OFFICE OF THE CITY MANAGER
T E X A S
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March 24,2011
The Honorable Mayor,
Members of the City Council,
City Manager and Citizens of Wichita Falls,Texas
I am pleased to submit herewith, the Comprehensive Annual Financial Report (CAFR) of the City of Wichita
Falls, Texas for the fiscal year ended September 30, 2010. The purpose of this report is to provide the City
Council, City Manager, citizens and other interested parties with detailed information concerning the financial
condition of the City of Wichita Falls. In addition,this report provides assurance that the City presents fairly its
financial position as verified by independent auditors.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
The CAFR of the City of Wichita Falls, Texas, for the year ended September 30, 2010, was prepared in
accordance with accounting principles as promulgated by the Governmental Accounting Standards Board
(GASB). The financial statements and related notes have been audited by the independent audit firm of Edgin,
Parkman,Fleming&Fleming,PC,whose report is included herein. '
Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation,
including all disclosures, rests with the City. We believe the data, as presented, 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 activities have been included.
The CAFR continues to present financial data using the reporting model promulgated by GASB Statement No.
34. This reporting model changed governmental financial reporting by incorporating government-wide financial
statements. The Finance Department believes that this presentation provides better information to users of the
report, and it requires management to provide a narrative introduction, overview and analysis to accompany the
basic financial statements in the form of a Management's Discussion and Analysis(MD&A). The MD&A can be
found immediately following the independent auditor's report and is designed to complement this transmittal
letter and should be read in conjunction with it.
GENERAL INFORMATION-CITY OF WICHITA FALLS,TEXAS
The City of Wichita Falls is located 15 miles south of the Red River/Oklahoma border at the intersection of
Interstate 44 and U.S. Highway 287. The city is approximately 130 miles northwest of Dallas and 125 miles
south of Oklahoma City. Wichita Falls is the county seat of Wichita County and the major population center in
North Texas, serving a trade area which extends into southern Oklahoma. Wichita Falls has a strong
international presence, unique for a city of its size and location. Sheppard Air Force Base maintains the Euro-
NATO jet pilot training program;there is considerable international investment in the area's manufacturing base;
and Midwestern State University has significant foreign student representation. Principal employers within the
area manufacture glass, engine components,flexible packaging, laundry equipment,and pipe. North Texas State
Hospital-Wichita Falls Branch, Midwestern State University, James V. Allred Prison and Sheppard Air Force
Base are also large employers located within the City. The City operates a Multi-Purpose Events Center,which
includes a coliseum, exhibit hall, and an agricultural arena/show barn. The 2009 population for Wichita Falls,as
CITY OF WICHITA FALLS
1300 7"Street-P.O.Box 1431-Wichita Falls,Texas 76307-t: (940) 761-7404-f: (940) 761-8833
www.wichitafallstx.gov
estimated by the City's Community Planning and Development Department,is 104,553,an increase of 0.3%over
the 2000 Census estimates,and an increase of 8.35%over the 1990 population.
CITY SERVICES AND ORGANIZATION OF THE GOVERNMENT
The City of Wichita Falls utilizes a Council-Manager form of government and is organized under the
Constitution and Laws of the State of Texas. The City Council is comprised of five members elected from
separate districts, and a Mayor and one member elected by the citizens at-large. The City Council appoints the
City Manager, City Attorney, Municipal Court Judge and City Clerk. All other staff members work under the
direction of the City Manager.
The City provides on a continuing basis a full range of basic municipal services including:public safety(police,
fire and building inspection); highways, streets and engineering; health and welfare services; parks, recreation
and cemeteries; library services;public improvements;planning and zoning;and general administrative services.
In addition,the City provides water,sewer,sanitation and transportation services for its citizens.
ECONOMIC CONDITION AND ACTIVITY
Wichita Falls has successfully diversified its economy to include manufacturing, government, medical services,
and education in addition to the more typical North Texas industries of agriculture, and oil and gas production.
Manufacturing plays a vital role in the area economy. Wichita Falls has over 257 manufacturing outlets with
$254 million in annual payroll, representing approximately 13% of total employment within the City. Large
durable goods manufacturing represents a major portion of the area's employment base including metal
fabrication, industrial and commercial machines and equipment, and assorted plastic and glass products. The
remaining manufacturing jobs are in the processing of non-durable goods such as food, printing materials and
garments. Six of the local manufacturers are operated by Fortune 500 companies or their subsidiaries. Three
area manufacturing facilities are foreign-owned,representing France, Sweden, and Switzerland. The community
has benefited in recent years through several major industrial expansions that have contributed in excess of$180
million in new manufacturing investments.
At the beginning of the 2009-10 fiscal year, the local economy was showing considerable signs of stress. In
March of 2009, the Avis/Budget Call Center closed its doors displacing 220 workers. In July of 2009, Saint
Gobain ceased manufacturing fiberglass reinforcements eliminating 750 jobs. In September 2009, Washex
closed its doors, idling 50 manufacturing workers. Also in September 2009, ABB Control announced it would
close its manufacturing operation by the end of March 2010,ultimately affecting 170 employees. The recession
also took its toll on many area businesses in the form of layoffs. Howmet/Alcoa, United Electric, Circuit City,
Wichita Tank, PPG, OCV Fabrics, Kalco Machine, Wichita Clutch and many others laid off between 10 to 20
percent of their workforce.
In response to the worst recession in modem history and this downturn in the local economy, efforts were made
to nearly double the economic development marketing campaigns. Additionally, in December of 2009 the
Chamber of Commerce, City of Wichita Falls, Convention and Visitor's Bureau, and Downtown Proud
organizations unveiled a well thought out community-wide branding, marketing and public relations campaign.
This effort was a public/private partnership with a goal of generating $250,000 per year for three years from
citizens and local businesses, and matching funds from the 4A Economic Development Corporation. Within 90
days of the goal's announcement,the funding commitments were generated.
The City and 4A Economic Development Corporation also made a shift in philosophy for granting economic
development incentives for primary job creation. In the past, 4A funds were awarded to companies and
payments were made six to twelve months following capital investment and job creation. In the past twelve
months, that philosophy has changed from a "pay for performance" model to a "pay for potential" model.
Essentially, this change in philosophy involved offering interest-free forgivable loans for desirable projects.
These loans are considered too high risk for banks, but without these loans, companies would not be able to
expand and create new jobs. Because of the higher risk involved, performance agreements required the
companies to provide a series of guarantees and collateral equal to or,in most cases,greater than the value of the
loan amount.
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This shift in philosophy has resulted in increased expenditures of the 4A Economic Development Corporation for
job creation. Over the last fiscal year, 11 projects have been approved with the potential for creating over 2,000
jobs. A summary of those projects are outlined in the following pages.
Carter Aviation Technologies (CAT) is under contract with a major defense contractor to purchase two
preproduction rotorcrafts. The Defense contractor will convert the aircraft into unmanned, aerial vehicles for
military applications. In concert with Textron Systems, CAT is exploring additional uses for the"slowed-rotor"
technology. Manufacturing has begun and at its peak is estimated to create 300 high-tech, high-paying jobs in
Wichita Falls' targeted aerospace industry cluster. The Wichita Falls Economic Development Corporation
approved a loan for$3.75 million dollars and a $250,000 grant for building improvements to help with this $12
million project.
Tryer Process Equipment located a manufacturing operation in the former Piping Engineering building on Old
Iowa Park Road in 2008 and pledged to create 16 new jobs with the assistance of$120,000 of 4A funds. The
company continues to grow and in December of 2009 received an additional $112,000 of 4A funds for the
creation of another 16 high-paying'obs.
J
Natura World USA has chosen Wichita Falls to become its new headquarters in the United States for
manufacturing, R&D, warehousing and distribution of mid to high-end, all natural mattresses and bedding
products. This Cambridge, Canada, company has purchased the former Delphi Automotive building and is
investing $30.0 million. A total of$7.3 million in 4A funds have been allocated to the project in the form of
construction grants and secured loans. A total of 300 new jobs are estimated to be created through this project.
Gel Solutions, a sister company to Natura World USA, co-located their manufacturing operations in Wichita
Falls when they relocated all operations from Utah. Gel Solutions will invest $6.0 million in capital and
equipment paired with $2.0 million in 4A local incentives. They own the exclusive global license to produce a
new and innovative gel-foam insert on top of conventional mattresses. This new mattress topper was invented in
the long-term healthcare industry and has become an extraordinarily comfortable sleep system. The plant started
with one production line and is expected to grow to 100 jobs.
WDS/Global, an international technical support center providing services to the wireless telephone industry,
announced early in 2010 it would lease the former Avis/Budget facility on Airport Road and create 750 jobs by
the end of 2010. A total of$3.675 million dollars of 4A funds were pledged to entice the company to Wichita
Falls.
Wichita Clutch is one of Wichita Falls' oldest continuous running manufacturing plants. To ensure they would
be competitive in the oil and gas market, Wichita Clutch purchased and installed a new cell capable of
conducting research and development on new clutch designs as well as bench testing for quality control. The
purchase price for the equipment and installation was $600,000 and the 4A Board loaned them$440,000 with a
deferred repayment until the energy economy turns around allowing them to be at the forefront of the new market
and thereby retain and create new job growth.
Armor Controls-A group of local businessmen purchased the former ABB Controls building and re-established
an electronic control device business under the name Armor Controls. Up to 70 of the former ABB employees
may be reemployed. The total project cost is estimated at $3 million and $600,000 of 4A funds have been
pledged towards the project in the form of cash for jobs.
BuyDentalEquipment.com — This dental office refurbishment company is in the process of expanding their
operation in a larger facility in downtown Wichita Falls. Approximately $521,000 of 4A funds was pledged for
retained and new jobs in the form of a ten year promissory note secured by the company's real property.
Excalibur Paint and Coatings —Opening in Wichita Falls in 2000, Excalibur manufactured and sold a variety
of water-based industrial paints and coatings. Through several business cycles, the plant had reduced its
operations to only seven employees. The owner created a new water-based polyurethane capable of being
applied in greater thicknesses than any currently in the marketplace. The City has assisted Excalibur with up to
$1.5 million in three loans secured by real property and personal guarantees. These funds will help ensure the
revival of this company leading to the possible creation of I I I new jobs.
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I
MagicAire—The pending sale of MagicAire by Carrier Corporation resulted in the high likelihood of closure of
the local plant. This undeniable possibility set in motion plans of a local group of investors led by the on-site
management team to purchase the operation. The management team secured local investors, a commitment from
a local bank and a$1 million forgivable loan from the 4A Corporation and purchased the operation from Carrier.
The 4A loan is forgivable over a 20 year term provided employment is maintained. This action converted a
satellite into a locally owned headquarter operation.
Latex International — Following the arrival of Natura World USA's U.S. Headquarters, Latex International
reversed their plans to consolidate operations in Georgia by combining two fabrication plants in Wichita Falls. A
total of $1.7 million of 4A funds were committed to this project and should result in significant increased
production over the next three years.
4A Economic Development Sales tax funds have also been used to assist with activities of the Military Affairs
Committee, a regional organization established a few years ago to work directly with Sheppard Air Force Base
(SAFB), Air Education and Training Command, the Chief of Staff for the Air Force, and our Congressional,
State and Local elected officials. This Committee was formed to increase the value of SAFB, strengthen
community development and build a stronger economy.
Another key indicator of the local economy is the value of residential and commercial construction permits.
Although, the value of both residential and commercial permits declined during the fiscal year, the amount was
still fairly strong for Wichita Falls. Residential permits totaled$35,144,812,which is a decrease of$10,695,121,
or 23% from the prior year. Commercial construction pennits totaled$80,645,569, which is also a reduction of
14% from the prior fiscal year. Nevertheless, several commercial construction permits issued were above $1
million in value which directly impacts local construction contractors. Those permits include:
• Grace Church Addition—a total of 45,336 sq.ft.addition,with an estimated value of$6,000,000.
• Diagnostic Center Of Wichita Falls Addition—a total of 8,000 sq. ft.addition with an estimated value of
$1,350,000.
• Hospice Addition—a total of 10,891 sq.ft.addition,with an estimated value of$1,410,000.
• United Supermarket Addition—a total of 6,460 sq.ft.addition with an estimated value of$1,150,000.
• First Baptist Church Youth Center Commercial Assembly — a total of 9,055 sq. ft. with an estimated
value of$2,250,000.
• City of Wichita Falls Animal Shelter—a total of 11,994 sq. ft.with an estimated value of$3,600,000.
• Patterson Honda—a total of 22,000 sq. ft.with an estimated value of$2,750,000.
• City of Wichita Falls Water Plant—a total of 28,828 sq.ft.with an estimated value of$11,908,000.
• Storage Buildings—a total of 23,750 sq.ft.with an estimated value of$1,364,440.
Another indicator of local economic performance is the retail sales tax. Like elsewhere in the nation,retail sales
taxes in Wichita Falls declined fairly significantly from the prior fiscal year. In 2009-10, the City generated
$26,711,760 in retail sales taxes,which was$557,448,or 2.04%less than in the prior fiscal year.
MAJOR INITIATIVES
For The Year. The City Council continues to identify programs to meet citizens' requests for services and to
safeguard the environment. The major challenge for the City during this fiscal year was evaluating methods to
reduce operating expenses in the General Fund due to declining revenues. The City made several mid-year
expenditure reductions principally in deferred capital expenditures, building maintenance projects, and the
deferral or elimination of hiring personnel when vacancies occurred. Through these efforts, over 15 full-time
positions were eliminated in the General Fund and over $2 million in General Fund expenditures were saved.
iv
The City has also hired a third party administrator for management and oversight of the City's Worker's
Compensation Program in an effort to identify areas where claim expenses could be reduced. The City also
entered into a multi-year agreement for the purchase of electricity at lower prices that has begun to show
significant savings to the City's budget. Finally, a program was initiated to replace City owned street lighting
and park security lighting with more efficient LED technology.
Work is nearing completion on the City's major water system improvement projects. In 2001,the City embarked
on a M 18 million improvement program designed primarily to expand the City's water supply and treatment
capabilities and to meet regulatory treatment requirements of the EPA and TCEQ. Specific projects that are
complete are the addition of Lake Kemp Reservoir, Pump Station and Pipeline; a state-of-the-art 10 mgd Reverse
Osmosis Facility; Distribution and Elevated Storage Improvements, Conventional Water Treatment Plant
Modifications and Improvements; High Service Pump Station and Storage, and new Water Plant Administration
and Maintenance Facilities. Two water system improvement projects that remain to be completed include a 10
mgd Conventional Water Treatment Expansion and a Secondary Reservoir Pumping Station. The contract to
construct the Conventional Water Treatment Plant Expansion was awarded in August 2009 in the amount of
$42.7 million. Construction of this project is expected to be finished by the end of 2011. The Secondary
Reservoir Pumping Station,that is needed to service this plant expansion,is estimated to cost$2.5 million.
The City completed a $4.2 million drainage project for Phase II and III in the Faith Village Subdivision. This
project is generally described as the widening of McGrath Creek's open channel downstream of Kemp
Boulevard, installing box culverts along Kemp Boulevard,replacing the existing system of box culverts and open
concrete channel in the median, repaving Kemp Boulevard, and widening the existing open channel upstream of
Kemp Boulevard to Southwestern Parkway. The project will improve the drainage system in this area and
provide better flood protection to residents and businesses. Funds that remained from prior bond issues for flood
control projects and the City's Storm Water Utility Funds were used to finance this project.
In May of 2009,the City Council approved a new 50 year facility lease with the United States Department of the
Air Force, which covers the use of the airfield for the City's airport and the method of paying the military for
services provided by Sheppard Air Force Base. This long term lease gives the City the ability to apply FAA
Improvement Funds to needed projects identified for the Municipal Airport. During the 2009-10 fiscal year, the
City used approximately $4.5 million of entitlement funds for the rehabilitation on the runway 17/35 and to
develop a Master Plan for the Airport.
In January 2010, the City Council authorized the issuance of $3,930,000 in 15 Year Combination Tax and
Revenue Certificates of Obligation to purchase the Castaway Cove Water Park. This water park was initially
opened for business in June 2004 by a Texas Limited Partnership consisting of 27 local investors. Financial
records indicate that the initial capital investment in the park was$6,188,000,not including the value of 49 acres
of undeveloped land surrounding the park. Additionally, $600,000 of capital investment was made for a new
water slide attraction two years ago. The water park, although a successful recreational venue for citizens and
visitors of the community,was in jeopardy of closing because the operating income of the park was not sufficient
to pay the annual debt service costs. After much deliberation,the City purchased the park and adjacent land and
began operating the park as a City facility in the spring of 2010. The debt service on the park is being paid for
with 4B Sales Tax Funds. All other operating and capital replacement costs are expected to be supported with
proceeds from park admissions and other retail sales at the park. The City Council also approved an agreement
with a water park management firm to oversee the day-to-day operations.
In April 2010, the City also refinanced over $10.5 million in outstanding Utility System Revenue Bonds as
Combination Tax and Revenue Bonds to lower the annual debt service costs on the remaining balance of that
debt.
Another significant project undertaken during the 2009-10 fiscal year was the construction of a new Animal
Services Center for the City's Animal Reclaim Program. For decades, the City contracted with the Wichita
County Humane Society for these services, but aging facilities and the desire of the Humane Society to focus
exclusively on adoption services, led the City to move toward a new City facility operated with internal City
resources. Approximately $4.1 million of 2009 bond funds were used to construct this facility and operations
began in February 2011. The City and the Humane Society will continue to work together on moving animals
suitable for adoption to their facilities and in many public educational efforts.
V
For The Future. Efforts to revitalize the downtown and Central Business District are underway as part of the
City's Vision 2020 Comprehensive Plan. Recently, the City Council approved the creation of a new Tax
Increment Financing Zone for the downtown area to replace the original TIF Zone that expired a few years ago.
Also, 4B Sales Tax funding has been approved in the amount of$400,000 annually to renovate aging streets
principally in the downtown area. The 4B Board also recently approved roved the use of$1 million to reconstruct
three major intersections in the downtown area with decorative concrete and sidewalk replacement, and
landscaping,along with upgrades to existing utilities and drainage within the intersections.
Another major undertaking that is making progress in the downtown area is the design and construction of a new
travel center for various public and private transportation services. This new travel center will serve as a major
transportation hub for the region. Currently, property acquisition and design services are underway. The
estimated cost of the project is $3.5 million, which will be funded principally with grant funds from the Federal
Transit Administration. Local matching funds will be identified as the federal funds become available.
The City is also in the process of beginning the design of a new airport terminal building for the City's Municipal
Airport. A new terminal building has been identified as a need in the City's Airport Master Plan,but funding has
been a major hurdle to overcome. With an estimated construction cost in excess of$30 million, the City has a
significant need for FAA discretionary and entitlement funding to assist with the cost for this facility. However,
in an effort to be in a better position to receive this grant funding, the City has committed to 100%of the design
of the parking, entry road and aircraft apron, and 35%of the terminal structure itself. Should federal assistance
not materialize in the near future,this level of design would still be useable when funds do become available.
In the next few years,the City should make considerable strides in the extension of its Circle Hike and Bike Trail
System. In 2009, $2.9 million of bond funds were issued for the trail system. In addition, in August 2010, a
Texas Transportation Enhancement Grant in the amount of$2.5 million was awarded for continuation of the trail
system. About one-half of these funds are currently being used to connect two existing sections of the trail in
and around Holliday Creek. The remaining funds will be used towards design and construction of two sections
of the trail in the western portion of the city along Seymour Highway and along Barnett Road.
FINANCIAL INFORMATION
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal
control as deemed appropriate by the City Manager. Internal control is designed to provide reasonable, but not
absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition;
and (2) the reliability of financial records for preparing financial statements and maintaining accountability for
assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits
likely to be derived and the evaluation of costs and benefits requires estimates and judgments by the City
Manager.
All internal control evaluations occur within the above framework. The City believes that its internal control
adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions.
The Annual Operating Budget is proposed by the City Manager and approved by the City Council following
public discussion. Budgetary control is maintained at the class level by the Finance Department within each
division by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors.
Purchase orders which result in an overrun of class level balances are not released until additional appropriations
are made available. In instances when budgetary transfers are necessary, management control of the operating
budget is maintained at the fund and department level. Transfers within a department of the same fund must be
approved by the City Manager. Transfers across departments or funds must be approved by the City Council.
Unencumbered appropriation balances lapse at year end and are not carried forward to new budget periods.
Open encumbrances are reported as reservations of fund balance at September 30, 2010, and related
appropriations are carried forward to the new fiscal year through a supplemental budgetary allocation.
The City's informal policy is to maintain approximately 20% of unreserved fund balances in the General Fund
for emergencies and other unanticipated needs. These financial statements reflect that this policy has been
followed. Additionally, the City maintains an informal policy to limit tax supported debt to no more than 5%of
Vi
total assessed property value or$1,500 per capita. As of September 30,2010,the City's tax supported debt was
approximately$41 million,which is 0.92%of the taxable value of property and$389 per capita.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the books of account, financial records, and transactions of all
administrative departments of the City by Certified Public Accountants. The accounting firm of Edgin,Parkman,
Fleming & Fleming, PC was selected by the Mayor and City Council to satisfy this charter requirement. The
auditor's report on the basic financial statements and combining fund statements and schedules is included in the
financial section of this report. In addition to meeting the requirements set forth in the City Charter, the audit
also was designed to meet the requirements of the federal Single Audit Act Amendments of 1996 and related
OMB Circular A-133,and the State Single Audit Act. These reports are issued under separate cover.
Awards
The Government Finance Officers Association of the United States and Canada(GFOA)awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Wichita Falls for its Comprehensive Annual
Financial Report for the fiscal year ended September 30, 2009. This was the 15th consecutive year that the
government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual financial report.
This report must satisfy both generally accepted accounting principles and applicable legal requirements. A
Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive
Annual Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are
submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgments
My appreciation is extended to the various elected officials, city manager, department heads and employees
responsible for the fair presentation of the CAFR and for contributing to the sound financial position of the City
of Wichita Falls. The City of Wichita Falls has been blessed with a group of persons who appreciate and respect
principles of fiscal restraint and propriety. In particular, I would like to acknowledge the special efforts of the
Department of Finance employees who contributed directly to the development of this report. The continuing
support of the City Council and City Manager, who remain committed to fiscal integrity and financial leadership,
is likewise appreciated.
Respectfully submitted,
oma��
Jim Dockery
Assistant City Manager/CFO
vii
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, 2009
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(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
t ANrc
CMM 0President
Executive Director
viii
CITY OF WICHITA FALLS
ORGANIZATIONAL CHART
WICHITA FALLS
CnIZENS
CITIZEN1LITIZE
COMMISSIONS I — COY COUNCIL BOARDSN
MUNICIPAL Cry CITY CITY
COURT JUDGE MANAGER ATTORNEY CLERK
I I
ASSISTANT CITY PUBLIC ASSISTANT CITY
MANAGER COMMUNICATIONS MANAGER
/CFO
FINANCE AND ADMINISTRATIVE PARKS AND COMMUNITY
HUMAANCEA SUPPORTS RECREATION DEVELOPMENT
DEPARTMENT SERVICES DEPARTMENT DEPARTMENT
BUDGET DEVELOPMENT ACCOUNTINBUILDING
N"IG PERSONNEL MANAGEMENT RECREATION MAINTENANCE 1 PAPKSO PLANNING nF d INSPECTION
N PURCHASING EMPLOYEE BUIL&W"G M.L.K. CODE
BENEFITS MAINTENANCE CENTER 1 � LIBRARY � � MANAGEMENT 7 �ENFORCEMENT
INFORh&TIOI COLLECTION MUNICIPALPROPER
COURT PRIM'SHOP I CEMETERY I NEIG� DH HOUSING
777 11 � 11
POLICE FIRE TRAFFIC AND HEALTH PUBLIC WORKS/ MULTI-PURPOSE
DEPARTMENT DEPARTMENT TRANSPORTATION DEPARTMENT PUBLIC UTII.RIFS EVENT CENTER
DEPARTMENT ` DEPARTMENT - DEPARTMENT
TECHNICAL FIELD SERVICES SERVICES F SUPPRESSION INVESTIGATION AIRPORTS PUBLIC�TRANSPORTATIONI ADMDVLSTRATION ENVIItEAO LNME�MfAI' ENGINEERING SANITATION CONVENTION&�VISITORSBUREAU� EHALL�
ADMINISTRATION MANAGEMENT I ENGINEERING 1 SERVICES NURSING POLLUTEMERGENCY TRAFFIC I CENT I ION MAINTENANCE UTII.ITIPS AGAREA
cvLnmA N L COLISEUM
I LIC HEALTHH
TRANSPORTATION+
PLANNING JI
CITY OF WICHITA FALLS, TEXAS
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2010
Title Name
Mayor Glenn Barham
Mayor Pro-Tern Dorothy Roberts-Burns
City Council Member Michael Smith
City Council Member Rick Hatcher
City Council Member Tim Ingle
City Council Member Mary Ward
City Council Member Linda Ammons
City Manager Darron Leiker
City Attorney Miles Risley
Municipal Court Judge Larry Gillen
City Clerk Lydia Ozuna
Assistant City Manager Kevin Hugman
Director of Aviation, Traffic and Transportation John Burrus
Assistant City Manager/Chief Financial Officer Jim Dockery
Director of Community Development(Acting) Kevin Hugman
Director of Public Health Lou Franklin
Police Chief Dennis Bachman
Fire Chief Earl Foster
Director of Parks and Recreation Jack Murphy
Director of Public Works and Public Utilities Russell Schreiber
Director of Multi-Purpose Events Center Bob Sullivan
x
Financial Section
Independent Auditor's Report
EDGIN, PARKMAN, FLEMING & FLEMING, PC
CERTIFIED PUBLIC ACCOUNTANTS
MICHAEL D.EDGIN,CPA
4501 NORTHWEST FwY. • P.O. Box 750 DAVID L.PARKMAN,CPA,CFE
WICHITA FALLS,TExAs 76307-0750 A.PAUL FLEMING,CPA
PH.(940)766-5550 • FAx(940)766-5778 J.MARK FLEMING,CPA
Independent Auditor's Report
The Honorable Mayor and Members of the City Council
City of Wichita Falls, Texas
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of the City of Wichita Falls, Texas, as of and for
the year ended September 30, 2010, which collectively comprise the City's basic financial
statements 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 auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Wichita Falls, Texas, as of September 30, 2010, and the
respective changes in financial position, and cash flows, where applicable, thereof for the year
then ended in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued under separate cover
our report dated March 25, 2011 on our consideration of the City of Wichita Falls, Texas'
internal control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements and other matters. The purpose of that report
is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our
audit.
1
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, the schedules on the Texas Municipal Retirement
System, the Wichita Falls Firemen's Relief and Retirement Fund, and the Wichita Falls Retiree
Health Care Plan be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistencywith management's responses to our inquiries, the basic financial
9 P q
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements as a whole. The introductory section,
combining and individual fund financial statements, supporting schedules, and statistical section
are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining financial statements and supporting schedules are the responsibility
of management and were derived from and relate directly to the underlying accounting and other
records used to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated
in all material respects in relation to the basic financial statements taken as a whole. The
introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
EDGIN, PARKMAN, FLEMING & FLEMING, PC
Wichita Falls, Texas
March 25, 2011
2
Management Discussion and Analysis
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T E X A S
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City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2010
Management's discussion and analysis provides a narrative overview of the financial activities
and changes in the financial position of the City of Wichita Falls, Texas, for the fiscal year ended
September 30, 2010. It is offered here by the management of the City to the readers of its
financial statements. Readers should use the information presented here in conjunction with
additional information furnished in our letter of transmittal, which can be found in the
Introductory Section of this Comprehensive Annual Financial Report.
Financial Highlights
The assets of the City of Wichita Falls exceeded its liabilities at September 30, 2010, by
$346,493,994 (net assets). Of this amount, $19,998,057 (unrestricted net assets) may be used to
meet the government's ongoing obligations to citizens and creditors.
The City's total net assets increased by $12,034,342. This increase can be attributed to several
factors: (1) mid year budget reductions in the General Fund resulting in over $3 million in
expenditure savings; (2) continued reduction in long term liabilities (outstanding debt) in the
water and sewer fund; (3) grants from the federal and state government for capital improvements
at Municipal Airport, circle trail system, and energy efficiency projects; (4) deferral of over $2
million in water and sewer fund capital outlay expenditures; and(5) grants from the 4B Sales Tax
Corporation for debt service payments and capital improvements. However, net assets would
have increased more substantially over the prior fiscal year had revenues from sales taxes, interest
earnings, and water sales met budgeted expectations.
At September 30, 2010, the City's governmental funds reported combined ending fund balances
of $31,004,571. Of this amount, $17,858,493, or 57.60%, is available for spending at the
government's discretion,(unreserved fund balance).
At the end of the current fiscal year, unreserved fund balance for the General Fund was
$14,294,519 or 23.19%of total General Fund expenditures.
The City's total debt decreased by $4,155,041 during the current fiscal year. The primary reason
for this reduction is because the City continued to retire outstanding General Obligation Bonds,
Water and Sewer System Revenue Bonds, and Combination Tax and Revenue Bonds. However,
this reduction was offset, partially, by the issuance of $3,930,000 in Combination Tax and
Revenue Bonds for the purchase of Castaway Cove Water Park. It should also be noted, that the
City refinanced $10,515,333 in outstanding Water and Sewer System Revenue Bonds as
Combination Tax and Revenue Bonds to lower annual debt service obligations.
3
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2010
(continued)
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The reporting focus is on the City as a whole and on individual major funds. It is
intended to present a comprehensive view of the City's financial activities. The basic financial
statements are comprised of three components: 1) government-wide financial statements,2)fund
financial statements, and 3) notes to the financial statements. This report contains other
supplementary information in addition to the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements, which can be found on pages 14-15 of this report,
include the Statement of Net Assets (Exhibit A-1) and the Statement of Activities (Exhibit A-2).
These statements are designed to provide readers with a broad overview of the City's finances in
a manner similar to a private-sector business. Both are prepared using the economic resources
focus and the accrual basis of accounting; meaning that all current year's revenues and expenses
are included regardless of when cash is received or paid. Thus, revenues and expenses are
reported in these statements for some items that will result in cash flows in future fiscal periods
(e.g.uncollected taxes and earned but not used vacation leave).
The Statement of Net Assets presents information on all of the City's assets and liabilities,
including capital assets and long-term obligations. The difference between the City's assets and
liabilities is reported as net assets. Over time, the increases or decreases in net assets may serve
as a useful indicator of whether the financial position of the City is improving or deteriorating.
Other indicators of the City's financial position should be taken into consideration, such as the
change in the City's property tax base and condition of the City's infrastructure (e.g., roads,
traffic signals, water and sewer lines, etc.), in order to more accurately assess the overall financial
condition of the City.
The Statement of Activities presents information showing how the City's net assets changed
during the most recent fiscal year. It focuses on both the gross and net costs of the government
services. This statement includes all current year revenues and expenses.
The Statement of Net Assets and the Statement of Activities divide the City's activities into three
types:
Governmental activities — Most of the City's basic services are reported here, including police,
fire, parks and recreation, public works, health, traffic and transportation, community
development and planning, and general administration and finance. The Multi-Purpose Events
Center and Champions Golf Course are also reported as governmental activities. Property taxes,
sales taxes, franchise fees, and various grant funds provide the majority of financing for these
activities.
4
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2010
(continued)
Business-type activities—Activities for which the City charges fees to customers to pay most or
all of the cost of a service it provides are reported as business-type activities. The City's
business-type activities include water and wastewater treatment and distribution, solid waste
collection and disposal, municipal airports, transit system, storm water drainage improvements,
fleet maintenance services and water park operations.
Component Units — Four legally separate organizations, for which the City is financially
accountable, are included in these statements as discretely presented component units. These
organizations include the Wichita Falls Economic Development Corporation, Wichita Falls 4B
Sales Tax Corporation, Wichita Falls Reinvestment Zone 42, and the Wichita Falls Reinvestment
Zone#3.
Fund Financial Statements
The City of Wichita Falls, like other state and local governments,uses fund accounting to provide
more detailed information about the City's most significant funds, not the City as a whole. A
fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. Some funds are required to be established by
state law or bond covenants. However, the City Council establishes many other funds to help it
control and manage money for particular purposes or to show that it is meeting legal
responsibilities. All of the funds of the City can be divided into three categories: governmental
funds,proprietary funds and fiduciary funds.
Governmental Funds —These funds are used to account for the majority of the City's activities,
which are essentially the same functions reported as governmental funds in the government-wide
statements. However, unlike the government-wide financial statements, governmental fund
financial statements are reported using an accounting method identified as the modified accrual
basis of accounting, which measures cash and all other financial assets that can be readily
converted to cash. The governmental fund statements focus on near-term inflows and outflows of
expendable resources, as well as expendable resources available at the end of the fiscal year for
future spending. Such information may be useful in evaluating a government's near-term
financing requirements.
The focus of the governmental funds financial statements is narrower than that of the
government-wide financial statements. Therefore, it is useful to compare the information
presented for governmental funds with similar information presented for governmental activities
in the government-wide statements. By doing so, readers may better understand the long-term
impact of the government's short term financing decisions. Both the Governmental Fund Balance
Sheet and the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund
Balances provide a reconciliation to facilitate this comparison. The reconciliation explains the
differences between the government's activities reported in the government-wide statements and
the information presented in the governmental funds financial statements.
5
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2010
(continued)
The City of Wichita Falls maintains 15 individual governmental funds. Information for the
General Fund is presented separately in the Governmental Fund Balance Sheet and in the
Governmental Fund Statement of Revenues and Changes in Fund Balances because it is
considered a major fund of the City. Data for the other governmental funds are combined into a
single, aggregated presentation. Individual fund data for each of the non-major governmental
funds are provided in the Combining Financial Statement Section of this report.
The Basic Governmental Funds Financial Statements can be found on pages 16-19 of this report.
Proprietary Funds—When the City charges customers for services it provides,whether to outside
customers or to other units within the City, the activities are generally reported in proprietary
funds. The City of Wichita Falls maintains two different types of proprietary funds: enterprise
funds and internal service funds.
• Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to
account for its water and sewer operations, sanitation collection and disposal services,
municipal airports, transit operations, storm water utility district, and water park
operations.
• Internal service funds are an accounting device used to report activities that provide
supplies and services to other City programs, such as fleet maintenance, print shop
services, and employee benefit trust. Because these services benefit both governmental
and business-type functions, they have been allocated between governmental and
business-type activities in the government-wide financial statements.
Proprietary fund financial statements provide the same type of information as the business-type
activities shown in the government-wide financial statements, only in more detail and include
some of the internal service fund-type activities. The proprietary fund financial statements
provide separate information for the Water and Sewer Fund and the Sanitation Fund since they
are considered to be major funds of the City. The non-major proprietary funds are combined into
a single, aggregated presentation in the proprietary fund financial statements. Individual fund
data for each of the non-major proprietary funds are provided in the Combining Financial
Statement Section of this report.
Fiduciary Funds—Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City's own
programs. The accounting method used for fiduciary funds is much like that used for proprietary
funds. Agency funds are a component of fiduciary funds and are used to account for situations
where the City's role is purely custodial, such as receipt, temporary investment and remittance of
fiduciary funds to individuals, private organizations or other governments. The City maintains
one fiduciary fund. This fund is an agency fund used to account for property that has been
abandoned or unclaimed pending escheatment to the State of Texas.
6
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2010
(continued)
Notes to the Financial Statements
The Notes to the Financial Statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. These
notes can be found on pages 26-58 of this report.
Government-Wide Financial Analysis
The City's combined net assets were $346,493,994 as of September 30, 2010, an increase of
$12,034,342, or 3.60% from the prior year. Using the Tables below, an analysis of the net assets
of the City can be made. The largest portion of the City's net assets, $308,547,695, or 89.05%, is
reflected in capital assets (land and improvements, buildings, infrastructure, machinery and
equipment), less any related debt used to acquire those assets that is still outstanding. The City
uses these assets to provide services to its citizens; consequently, these assets are not available for
future spending. Although the City reports its capital assets net of related debt, the resources
needed to repay this debt must be provided from other sources since the capital assets themselves
cannot be used to liquidate these liabilities.
An additional portion of the City's net assets, $17,948,242, or 5.18%, represents resources that
are subject to external restrictions on how they may be used. The remaining balance of net assets,
$19,998,057, or 5.77%, may be used to meet the government's ongoing obligations to citizens
and creditors.
Net Assets
(in thousands)
Governmental Business-type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Current and Other Assets $ 42,290 $ 46,699 $ 71,443 $ 97,170 $ 113,733 $ 143,869
Capital Assets 167,699 164,629 274,169 238,025 441,868 402,654
Total Assets 209,989 211,328 345,612 335,195 555,601 546,523
Long Term Liabilities 47,732 46,621 140,367 146,996 188,099 193,617
Other Liabilities 12,030 10,089 8,978 8,357 21,008 18,446
Total Liabilities 59,762 56,710 149,345 155,353 209,107 212,063
Net Assets:
Invested in Capital Assets,
Net of Related Debt 135,957 138,550 172,591 156,171 308,548 294,721
Restricted 5,006 1,187 12,942 12,959 17,948 14,146
Unrestricted 9,264 14,881 10,734 10,712 19,998 25,593
Total Net Assets $ 150.227 $ 154,618 S 196.267 $ 179.842 346,494 $ 334.460
7
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30, 2010
(continued)
CHANGES IN NET ASSETS
(in thousands)
Governmental Business-type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Revenues:
Program Revenues:
Charges For Services $ 9,350 $ 9,155 $ 49,345 $ 48,686 $ 58,695 $ 57,841
Operating Grants and
Contributions 14,607 10,891 2,312 1,142 16,919 12,033
Capital Grants and Contributions 6,146 1,631 108 456 6,254 2,087
General Revenues:
Property Taxes 27,570 27,870 - - 27,570 27,870
Sales Taxes 20,034 20,452 - - 20,034 20,452
Other Taxes/Fees 7,471 7,436 - - 7,471 7,436
Investment Earnings 130 415 194 603 324 1,018
Miscellaneous 161 135 153 147 314 282
Total Revenue 85,469 77,985 52,112 51,034 137,581 129,019
Expenses:
Administrative Services 10,043 12,026 - - 10,043 12,026
Police 21,133 21,009 - - 21,133 21,009
Fire 13,066 13,028 - - 13,066 13,028
Parks and Recreation 5,688 5,757 - - 5,688 5,757
Accounting/Finance 2,428 2,473 - - 2,428 2,473
Community Development 7,244 7,584 - - 7,244 7,584
Public Works 8,036 8,282 - - 8,036 8,282
Health 4,932 4,996 - - 4,932 4,996
Traffic and Transportation 2,525 2,500 - - 2,525 2,500
MPEC 4,181 4,028 - - 4,181 4,028
Interest and Fees on Long-term
Debt 1,781 1,621 - - 1,781 1,621
Golf - - - - - _
Municipal Airport - - 338 289 338 289
Kickapoo Airport - - 1,108 1,354 1,108 1,354
Transit - - 1.602 1.616 1,602 1,616
Sanitation - - 9,152 8,509 9,152 8,509
Water and Sewer - - 30,250 30,166 30,250 30,166
Stormwater Drainage - - 786 477 786 477
Waterpark - - 1,254 - 1,254 -
Total Expenses 81,057 83,304 44,490 42,411 125,547 125,715
Increase(Decrease)in Net Assets
Before Transfers 4,412 (5,319) 7,622 8,623 12,034 3,304
Transfers (8,803) (2,439) 8,803 2,439 - -
Increase(Decrease)in Net Assets (4,391) (7,758) 16,425 11,062 12,034 3,304
Net Assets-Beginning of Year 154,618 162,691 179,842 168,780 334,460 331,471
Prior Period Adjustment - (315) - - - (315)
Net Assets-End of Year $150.227 S 154.618 $196.267 $179,842 $346.494 $334.460
8
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30, 2010
(continued)
Governmental Activities—Governmental Activities decreased the City's net assets by$4,390,932.
However, that reduction is principally due to the reclassification of several large capital assets for
storm water drainage improvements, Castaway Cove Water Park, and Municipal Airport
improvements from Governmental Activities (Capital Project and Grant Funds) to Business-type
Activities (Enterprise Funds). Some of these reductions due to asset reclassifications were offset
by increases in assets in Governmental Activities due to savings derived from mid year
expenditure cuts, receipt of grants for street lighting and ark trail improvements, and
P P
contributions to MPEC from the 4B Sales Tax Corporation.
Business-Type Activities - Net assets for the City's Business-type Activities increased by
$16,425,274, accounting for 136%of the total growth in the City's net assets. The City continues
to reduce liabilities in its Water and Sewer Fund as debt service payments are made on
outstanding revenue bonds. Business-type Activities also benefited from the reclassification of
capital assets from Governmental Activities for storm water drainage improvements, Castaway
Cove Water Park, and Municipal Airport improvements to Business-type Activities. Also, net
assets in the Sanitation Operation were increased by $516,000 due to the adoption of a surplus
budget that was intended to replenish cash that was used in the prior year for replacement
equipment.
Financial Analysis of the City's Funds
Governmental Funds — The focus of the governmental funds is to provide information on near-
term inflows, outflows and balances of expendable resources. Such information is useful in
assessing the City's financing requirements. In particular, unreserved fund balance may serve as
a useful measure of a government's net resources available for spending at the end of the fiscal
year.
As of September 30, 2010, the City's governmental funds reported combined fund balances of
$31,004,571, which is a reduction of$5,563,805 from the prior year. This reduction was due,
however, to the expenditure of designated Capital Project funds for the City's new Animal
Shelter,Police Firing Range and improvements to the Park Trail System.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year,
unreserved fund balance of the General Fund was $14,294,519, an increase of$1,252,475 from
the prior year. As a measure of the General Fund's liquidity, it may be useful to compare both
the unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund
balance represents 23.19% of total General Fund expenditures, while the total fund balance
represents 25.45% of total General Fund expenditures.
Proprietary Funds — The financial statements of the proprietary funds provide information for
two types of funds: the business type (enterprise) funds and the internal service funds. The
accounting principles applied to proprietary funds are similar to that of the private sector.
Consequently, with the exception of the allocation of internal service fund net income or loss,the
net assets and changes in net assets of the enterprise funds in these financial statements are
identical with the net assets and changes in net assets reflected in the business type activities in
the city-wide presentation.
9
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30, 2010
(continued)
The City's internal service funds include the Fleet Maintenance Fund, Employee Benefit Trust
Fund and the Duplicating Services Fund. At the close of September 30, 2010, the net assets for
the City's internal service funds were $24,385,005, an increase of$2,439,552. This increase is
principally due to fleet purchases such as sanitation collection and disposal equipment and new
buses that were made with other funds and donated to the Fleet Maintenance Fund. Also, the
Employee Benefit Trust Fund ended the fiscal year with a net income of$332,365 due to lower
than expected costs for employee health claims. It should be noted that of the net assets for the
City's internal service funds, $20,562,243 is invested in capital assets and $2,524,360 is reserved
for employee life and health benefits. The remainder of net assets of the internal service funds is
typically used to replace equipment in the Fleet Maintenance Fund. The purpose of the internal
service funds is to provide services within the organization on a break-even basis. The net
income or loss from these internal service funds has been allocated back to the using departments
or funds for the City-wide financial statements.
General Fund Budgetary Highlights
The final amended expenditure budget for the General Fund, including transfers out, was
increased by $1,553,489 from the original adopted budget. The primary reasons for this increase
in appropriations can be briefly summarized as follows:
• Approximately $1,064,000 of prior year encumbrances were carried forward to the 2009-
10 amended budget, the majority of which was for the Street Overlay Program and a
professional service agreement for Lake Wichita survey work.
• Approximately $465,609 was appropriated for emergency repairs to the Lake Diversion
Spillway.
• An additional $24,000 was budgeted for a legal settlement.
Actual revenues in the General Fund for the 2009-10 fiscal year were $60,980,113, which was
$240,665 below final budgeted figures. Revenues from taxes fell short of budgeted amounts by
$635,402, principally due to declining sales tax receipts and lower than expected property tax
collections. Interest earnings also were lower than expected due to declining interest rates.
However, some of this shortfall was offset by higher than anticipated revenues from municipal
court fines. In addition, the City received donated street and drainage assets from private
developers valued at approximately $222,000 that were not budgeted in the original budget.
Actual expenditures in the General Fund for the 2009-10 fiscal year were $61,645,860 compared
to a final budget of$64,859,150. Much of this variance is due to significant mid year expenditure
cuts that were made in anticipation of a shortfall in revenues. Significant savings were realized
through a reduction in positions through attrition and/or an early retirement incentive. The City
also benefited greatly through a third party administrative agreement to manage workers
compensation claims. There were also a few maintenance projects and supply purchases that
were deferred. Finally, there was over $1,055,000 in encumbrances that were not liquidated by
the close of the fiscal year and will be expended during the 2010-11 fiscal year.
10
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2010
(continued)
Capital Asset and Debt Administration
Capital Assets - The City's investment in capital assets for its governmental and business-type
activities as of September 30, 2010, amounts to $441,867,948 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, equipment, infrastructure and
construction in progress.
Major capital asset events during this fiscal year included the following:
• Continued improvements to the water system, principally at Cypress Water Treatment
Plant.
• Runway Improvements at Municipal Airport
• Purchase of Castaway Cove Water Park
• Purchase of 8 new buses
• Drainage Improvements in Faith Village and Plum Creek
• Construction of a new Animal Services Center
• Completion of a new Police Firing Range
• Extension of the Park System Hike/Bike Trail
• Construction of South Weeks Park Pond
Capital Assets,net of Accumulated Depreciation
(in thousands)
Governmental Business-type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Land S 9,314 $ 9,143 $ 8,855 S 8,466 S 18,169 $ 17,609
Land Betterments 19,629 20,079 18,178 16,493 37,807 36,572
Buildings,Systems
and Improvements 49,927 47,154 190,054 187,632 239,981 234,786
Infrastructure 72,255 71,751 - - 72,255 71,751
Machinery and Equip 9,496 9,890 2,095 2,070 11,591 11,960
Furniture and Fixtures 8 13 2 5 10 18
Motor Vehicles - - 18,163 15,612 18,163 15,612
Construction in
Progress 7,070 6,599 36,822 7,747 43,892 14,346
Totals $ 167.699. S 164.629 $274.169 $238.025 $ 441.868 $ 402.654
Additional information on the City's capital assets can be found in Note 7 on pages 40-42 of this
report.
11
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2010
(continued)
Long Term Debt — At the end of the current fiscal year, the City of Wichita Falls had a total
bonded debt, notes and capital leases outstanding of$177,114,034. The City issued $3,930,000
in Combination Tax and Revenue Bonds during the 2009-10 fiscal year to purchase the Castaway
Cove Water Park. Additionally, $10,515,333 of outstanding Utility System Revenue Bonds were
refinanced as Combination Tax and Revenue Bonds to lower annual debt service costs.
Moody's Investor's Service has assigned a credit rating of Aa2 for the City's General Obligation
Bonds and a rating of A2 for the City's Water and Sewer System Revenue Bonds. As of
September 30, 2010, Standard & Poors had assigned a credit rating of AA for the City's General
Obligation Bonds and a rating of AA-for its Water and Sewer System Revenue Bonds.
Outstanding Debt at Year-End
(in thousands)
Governmental Business-type
Activities Activities Total
2010 2009 2010 2009 2010 2009
General Obligation Bonds $ 4,790 $ 5,535 $ - $ - $ 4,790 $ 5,535
Combination Tax and
Revenue Bonds 35,919 33,525 27,745 21,005 63,664 54,530
Utility System Revenue - -
Bonds 107,502 119,842 107,502 119,842
Capital Lease Payable - - 550 722 550 722
Notes Payable - _ 609 640 609 640
Total $ 40.709 $ 39.060 $ 136,406 $ 142.209 $ 177,115 $ 181.269
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, 2010,was $.60526 per$100, which means that the City has a tax margin of
$1.64474 per $100, and could raise up to $72,799,463 additional tax revenue a year from the
present assessed valuation of $4,426,198,825 before the limit is reached. The current ratio of
general bonded debt outstanding to the assessed value of all taxable property is 0.92%.
Additional information about the City's long-term debt can be found in Note 13 on pages 50-54
of this report.
Economic Factors and Next Year's Budget and Rates
Total 2010-11 operating revenues, including transfers, are budgeted at $146,834,388, which is an
increase of$5,812,254, or 4.12% from the 2009-10 adopted budget. However, after backing out
revenues for the Castaway Cove Water Park, which were not included in the prior adopted
budget,total revenues are projected to increase by 3.02%.
12
I
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2010
(continued)
Like elsewhere in the nation, consumer spending and business activity declined significantly
during the 2009-10 fiscal year,which directly affected sales tax revenues. In the 2010-11 budget,
sales taxes in the General Fund are projected to generate $19,936,292, a decrease of$737,055, or
3.57%from the prior year adopted budget. It should be noted that this projection was based upon
an estimate of 2009-10 actual receipts and a growth rate of 1.00%. In light of recent downward
trends, this projection of positive growth may appear to be aggressive. However, it does seem
that the City reached a low point in receipts during the summer of 2010, and recent indications
are that receipts are exceeding budget projections.
The Property Tax is the largest source of revenue in the City's budget and one that is relied
heavily upon to provide general City services. The property tax base, as certified by the Wichita
County Appraisal District, was $4.42 billion, a reduction of$6.2 million,or 0.14% from the prior
year. To help recover some of the anticipated lost revenue in sales and property taxes, the City
reduced its workforce in areas that will have the least impact on the City's operations and services
to the public. In April 2010, a Voluntary Retirement Incentive Program was implemented that
provided incentive payments to employees eligible to retire if the City determined that the
position could remain unfilled for an extended period of time or the position could be filled at a
much lower rate of pay. Additionally, as vacancies occurred in non public safety areas, City
Management evaluated the impact of leaving positions unfilled. Through these efforts,
approximately 15 full-time equivalent positions were eliminated in the General Fund reaching
across virtually every City department. Other reductions in the expenditures, resulting from
movement to third party administration of the City's Workers Compensation Program and lower
electricity prices offset the loss in revenue in the General Fund, and allowed for the possibility of
a 2% pay increase for City employees to be considered in April 2011. Nevertheless, the City
Council approved an increase in the property tax rate of 2 cents per $100 in taxable assessed
value to generate additional funds needed for street infrastructure improvements.
The City Council also recognized the need to increase retail water and sewer rates by 4% to
increase funding for water and sewer line replacement projects. Additionally, wholesale water
rates were increased on average by 12%.
Finally, the City Council increased the monthly fee for the Storm Water Utility Fund from $1.75
to $3.55 per single family living unit equivalent to generate additional funding for a more
aggressive storm water improvement program.
Requests for Information
This financial report is designed to provide a general overview of the City of Wichita Falls'
finances for all those with an interest in the government's finances. Questions concerning any of
the information provided in this report, or request for additional financial information, should be
addressed to the CityDepartment,Finance 1300 Seventh Street Wichita Falls Texas 76301.
,
13
Basic Financial Statements
EXHIBIT A-1
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2010
Primary Government
Governmental Business-type Component
Activities Activities Total Units
Assets
Cash and cash equivalents $ 32,856,845 $ 7,009,529 $ 39,866,374 $18,009,334
Receivables(net):
Taxes and assessments 1,198,777 - 1,198,777 -
Customerandtrade - 5,451,086 5,451,086 -
Government agencies 9,027,306 368,126 9,395,432 1,186,616
Other 1,355,585 157,733 1,513,318 -
Internal balances (4,207,234) 4,207,234 - -
Inventory 316,830 1,725,725 2,042,555 -
Prepaid items 981,645 8,575 990,220 144,072
Other assets 47,503 - 47,503 -
Deferred charges - 5,743,341 5,743,341 -
Restricted assets:
Cash and cash equivalents 712,283 46,771,936 47,484,219 -
Capital assets not being depreciated 16,384,286 45,678,092 62,062,378 1,469,797
Capital assets net of accumulated depreciation 151,315,140 228,490,430 379,805,570 871,044
Total assets 209,988,966 345,611,807 555,600,773 21,680,863
Liabilities
Accounts payable-trade 3,697,795 2,354,553 6,052,348 371,715
Accrued payroll 2,533,875 676,038 3,209,913 -
Accrued interest payable 453,086 994,811 1,447,897 -
Payable to government agencies 399,951 80,437 480,388 -
Estimated health claims payable 520,797 - 520,797 -
Other liabilities 4,387,615 2,154,895 6,542,510 -
Unearned revenue 37,025 - 37,025 -
Customer deposits - 2,717,382 2,717,382 -
Long-term liabilities:
Portion due or payable within one year 4,152,586 6,709,039 10,861,625 -
Portion due or payable after one year 43,579,354 133,657,540 177,236,894 -
Totalliabilities 59,762,084 149,344,695 209,106,779 371,715
Net Assets
Invested in capital assets, net of related debt 135,957,279 172,590,416 308,547,695 2,340,841
Restricted for:
Debt service 791,052 12,942,163 13,733,215 -
Federal grant programs 4,215,027 - 4,215,027 -
Unrestricted 9,263,524 10,734,533 19,998,057 18,968,307
Total net assets $ 150,226,882 $ 196,267,112 $346,493,994 $21,309,148
See accompanying notes to the basic financial statements.
14
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
Administrative services $ 10,043,369 $ 4,414,667 $ 497,922 -
Police 21,133,526 495,459 2,088,300 -
Fire 13,065,768 2,042 154,450 -
Parks and recreation 5,687,527 515,008 805,505 -
Accounting/finance 2,428,055 - - -
Community development 7,243,744 1,042,574 6,593,196 -
Public works 8,035,626 2,600 235,250 -
Health 4,931,859 908,415 2,035,604 -
Traffic and transportation 2,525,097 201,961 - 5,572,302
Multi-Purpose Events Center 4,181,379 1,767,398 573,550 573,550
Interest and fees on long-term debt 1,781,245 - 1,623,030 -
Total governmental activities 81,057,195 9,350,124 14,606,807 6,145,852
Business-type activities:
Municipal Airport 337,946 624,298 112,402 -
KickapooAirport 1,108,515 798,034 - -
Transit 1,602,362 274,577 2,199,660 -
Sanitation 9,152,130 11,826,882 - -
Water and sewer 30,250,390 33,264,688 - 108,471
Stormwater drainage 785,543 1,272,430 - -
Waterpark 1,253,557 1,283,919 - -
Total business-type activities 44,490,443 49,344,828 2,312,062 108,471
Total primary government $ 125,547,638 $ 58,694,952 $ 16,918,869 $ 6,254,323
Component units:
Community development $ 17,887,522 $ 106,800 $ 255,002 $ -
General revenues and transfers:
Taxes:
Property tax
Sales tax
Franchise fees
Hotel occupancy tax
Beverage tax
Bingo tax
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets-beginning
Net assets-ending
See accompanying notes to the basic financial statements.
15
EXHIBIT A-2
Net(Expense)Revenue and
Changes in Net Assets
Primary Government
Governmental Business-type Component
Activities Activities Total Units
$ (5,130,780) $ - $ (5,130,780) $ -
(18,549,767) - (18,549,767) -
(12,909,276) - (12,909,276) -
(4,367,014) - (4,367,014) -
(2,428,055) - (2,428,055) -
392,026 - 392,026 -
(7,797,776) - (7,797,776) -
(1,987,840) - (1,987,840) -
3,249,166 - 3,249,166 -
(1,266,881) - (1,266,881) -
(158,215) - (158,215) -
(50,954,412) - (50,954,412) -
- 398,754 398,754 -
- (310,481) (310,481) -
- 871,875 871,875 -
- 2,674,752 2,674,752 -
- 3,122,769 3,122,769 -
- 486,887 486,887 -
- 30,362 30,362 -
- 7,274,918 7,274,918 -
(50,954,412) 7,274,918 (43,679,494) -
- - - (17,525,720)
27,570,092 - 27,570,092 290,302
20,033,820 - 20,033,820 6,677,940
5,593,573 - 5,593,573 -
1,553,674 - 1,553,674 -
246,541 - 246,541 -
77,883 - 77,883 -
129,653 194,428 324,081 49,600
160,949 153,223 314,172 -
(8,802,705) 8,802,705 - -
46,563,480 9,150,356 55,713,836 7,017,842
(4,390,932) 16,425,274 12,034,342 (10,507,878)
154,617,814 179,841,838 334,459,652 31,817,026
$ 150,226,882 $ 196,267,112 $ 346,493,994 $ 21,309,148
EXHIBIT A-3
CITY OF WICHITA FALLS, TEXAS
BALANCE SHEET-GOVERNMENTAL FUNDS
SEPTEMBER 30, 2010
Total
Nonmajor Governmental
General Governmental Funds
Assets
Cash and cash equivalents $ 14,814,336 $ 15,604,296 $ 30,418,632
Receivables(net):
Taxes and assessments 936,684 262,093 1,198,777
Other City funds 3,179,297 - 3,179,297
Government agencies 3,846,515 5,180,791 9,027,306
Other 1,277,596 56,828 1,334,424
Inventory 228,679 74,360 303,039
Prepaid items 119,485 856,812 976,297
Other assets - 47,503 47,503
Total assets $ 24,402,592 $ 22,082,683 $ 46,485,275
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 1,160,308 $ 2,440,361 $ 3,600,669
Accrued payroll 2,308,040 217,087 2,525,127
Payable to other City funds - 2,864,664 2,864,664
Payable to government agencies 306,715 93,236 399,951
Other liabilities 3,355,085 1,032,530 4,387,615
Deferred revenue 1,487,536 117,082 1,604,618
Claims and judgments payable 98,060 - 98,060
Total liabilities 8,715,744 6,764,960 15,480,704
Fund balances:
Reserved for encumbrances 1,055,584 3,142,874 4,198,458
Reserved for inventory and prepaid items 336,745 - 336,745
Reserved for debt service - 711,206 711,206
Reserved for perpetual care - 920,467 920,467
Reserved for federal grant programs - 3,714,335 3,714,335
Reserved for capital projects - 3,264,867 3,264,867
Unreserved,designated for subsequent
years expenditures reported in:
General Fund 3,000,000 - 3,000,000
Special Revenue Funds - 1,741,941 1,741,941
Capital Projects Funds - 1,850,806 1,850,806
Unreserved, undesignated reported in:
General Fund 11,294,519 - 11,294,519
Special Revenue Fund - (28,773) (28,773)
Total fund balances 15,686,848 15,317,723 31,004,571
Total liabilities and fund balances $ 24,402,592 $ 22,082,683 $ 46,485,275
See accompanying notes to the basic financial statements.
16
EXHIBIT A-4
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2010
Total fund balances -governmental funds (Exhibit A-3) $ 31,004,571
Amounts reported for governmental activities in the Statement of Net Assets (Exhibit A-1)
are different because:
Capital assets used in governmental activities are not financial resources and therefore not
reported in the funds. Capital assets at year-end consist of:
Gross capital assets $277,385,950
Related accumulated depreciation 109,733,760 167,652,190
Property taxes receivable and municipal court fines are not available to pay for current
period expenditures and therefore are deferred in the funds. 1,567,593
Long-term liabilities are not due and payable in the current period and therefore
not reported as liabilities in the funds. Long-term liabilities at year-end consist of:
General obligation bonds payable 40,708,687
Accrued vacation and sick leave 6,817,957
Claims and judgments payable 104,524
Accrued interest 453,086 (48,084,254)
Internal service funds are used by management to charge the costs of duplicating services
and health insurance claims to the individual funds. The assets and liabilities of these
internal service funds are included with the governmental activities. 2,538,673
Internal service funds are used by management to charge the costs of central garage
services to the individual funds. The assets and liabilities of this fund are included with the
business-type activities. This amount represents the governmental activity portion
of the central garage activity. (4,451,891)
Total net assets -governmental activities (Exhibit A-1) $ 150,226,882
See accompanying notes to the basic financial statements.
17
EXHIBIT A-5
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES -GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2010
Total
Nonmajor Governmental
General Governmental Funds
Revenues
Taxes $ 52,559,745 $ 2,447,156 $ 55,006,901
Charges for services 2,943,374 772,458 3,715,832
Licenses and permits 1,990,328 - 1,990,328
Fines and forfeitures 2,039,579 175,305 2,214,884
Intergovernmental revenue 52,562 14,731,298 14,783,860
Contributions 334,318 5,377,586 5,711,904
Miscellaneous revenue 1,060,207 2,537,720 3,597,927
Total revenues 60,980,113 26,041,523 87,021,636
Expenditures
Administrative services 8,305,644 1,388,988 9,694,632
Police 19,707,870 474,298 20,182,168
Fire 12,521,561 150,196 12,671,757
Parks and recreation 4,711,638 648,054 5,359,692
Accounting/finance 2,279,241 - 2,279,241
Community development 1,717,794 5,597,837 7,315,631
Public works 5,236,069 119,516 5,355,585
Health 2,809,281 2,087,560 4,896,841
Traffic and transportation 2,083,383 161,655 2,245,038
Multi-Purpose Events Center - 3,358,470 3,358,470
Capital outlay 2,273,379 6,485,042 8,758,421
Debt service-principal - 2,240,000 2,240,000
Debt service-interest and paying agent fees - 1,781,176 1,781,176
Total expenditures 61,645,860 24,492,792 86,138,652
Excess of revenues over(under) expenditures (665,747) 1,548,731 882,984
Other Financing Sources(Uses)
Bond proceeds - 3,930,000 3,930,000
Transfers in 2,470,190 3,206,706 5,676,896
Transfers out (659,251) (15,394,434) (16,053,685)
Total other financing sources(uses) 1,810,939 (8,257,728) (6,446,789)
Net change in fund balance 1,145,192 (6,708,997) (5,563,805)
Fund balances-beginning 14,541,656 22,026,720 36,568,376
Fund balances-ending $ 15,686,848 $ 15,317,723 $ 31,004,571
See accompanying notes to the basic financial statements.
18
EXHIBIT A-6
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Net change in fund balances-total governmental funds(Exhibit A-5) $ (5,563,805)
Amounts reported for governmental activities in the Statement of Activities(Exhibit A-2)
are different because:
Capital outlays are reported in governmental funds as expenditures. However, in the Statement
of Activities,the cost of those assets are allocated over their estimated useful lives as
depreciation expense.The net difference between the two is as follows:
Capital outlay during the year $ 8,857,364
Depreciation expense for the year 5,516,835 3,340,529
Proceeds from the sale of capital assets are recorded as revenues when received in the
governmental funds. In the Statement of Activities, the difference between the proceeds
and the book value of the capital asset is reported as a gain(loss)from sale. (263,659)
Because property tax receivables and municipal court receivables will not be collected for
several months after the City's fiscal year ends,they are not considered'available'revenues and
are deferred in the governmental funds. Deferred revenues increased by this amount this year. 163,137
The issuance of long-term debt provides current financial resources to governmental funds.
However, the issuance increases long-term liabilities in the Statement of Net Assets. Long-
term debt issued in 2009-2010 was: (3,930,000)
Repayment of long-term debt principal is an expenditure in the governmental funds,but the
repayment reduces long-term liabilities in the Statement of Net Assets. Bond principal
payments in 2009-10 were: 2,281,039
Included in long-term debt are obligations for accrued vacation and sick leave,and claims
and judgments payable. The changes in these obligations are not included in the
governmental fund financial statements, but are included in the government-wide
financial statements. The changes in these long-term obligations were:
Accrued vacation and sick leave 128,228
Claims and judgments payable 17,836 146,064
Interest on long-term debt in the Statement of Activities differs from the amount reported
in the governmental funds because interest is recognized as an expenditure in the funds
when it is due,and thus requires the use of current financial resources. In the Statement
of Activities, however, interest expense is recognized as the interest accrues, regardless
of when it is due.The increase in accrued interest is as follows:
Accrued interest at September 30, 2009 411,978
Accrued interest at September 30, 2010 453,086 (41,108)
Internal service funds are used by management to charge the costs of duplicating services
and health insurance claims to the individual funds. The net revenues of these
internal service funds are included with the governmental activities. 251,270
Internal service funds are used by management to charge the costs of central garage
services to the individual funds.The net revenue of this fund is included with the
business-type activities. This amount represents the governmental activity portion
of the central garage activity. (774,399)
Change in net assets of governmental activities(Exhibit A-2) $ (4,390,932)
See accompanying notes to the basic financial statements.
19
EXHIBIT A-7
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30,2010
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Assets
Current assets:
Cash and cash equivalents $ 25,737 $ 2,247,799 $ 3,903,214 $ 6,176,750 $ 3,270,992
Restricted cash and cash equivalents 46,610,552 - 161,384 46,771,936 712,283
Receivables(net):
Customer and trade 4,062,278 1,253,926 134,882 5,451,086 -
Government agencies 51,419 - 316,707 368,126 -
Other 51,935 - 49,833 101,768 77,126
Inventory 983,357 - 35,145 1,018,502 721,014
Prepaid items 2,008 175 6,392 8,575 5,348
Total current assets 51,787,286 3,501,900 4,607,557 59,896,743 4,786,763
Long-term assets:
Deferred charges 5,743,341 - - 5,743,341 -
Capital assets,net of accumulated
depreciation 213,755,663 6,387,226 32,961,005 253,103,894 21,111,864
Total long-term assets 219,499,004 6,387,226 32,961,005 258,847,235 21,111,864
Total assets 271,286,290 9,889,126 37,568,562 318,743,978 25,898,627
I
See accompanying notes to the basic financial statements.
20
EXHIBIT A-7
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30,2010
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Liabilities
Current liabilities:
Accounts payable-trade 1,728,238 196,456 261,659 2,186,353 265,326
Accrued payroll 366,836 151,081 68,776 586,693 98,093
Accrued vacation and sick leave 308,201 116,750 31,274 456,225 75,019
Payable to other City funds 50,455 - 264,178 314,633 -
Payable to government agencies - 63,870 16,567 80,437 -
Estimated health claims payable - - - - 520,797
Other liabilities 2,072,054 35,519 42,554 2,150,127 4,766
Payable to U.S.Government-current maturity 32,155 - - 32,155 -
Capital leases-current maturities - - - 177,925
Revenue bonds-current maturities 5,998,959 - - 5,998,959 -
Accrued interest-revenue bonds 994,811 - - 994,811 -
Total current liabilities 11,551,709 563,676 685,008 12,800,393 1,141,926
Long-term liabilities:
Payable to U.S. Government 577,079 - - 577,079 -
Capital leases, less current maturities - - - - 371,696
Revenue bonds, less current maturities 129,247,535 - - 129,247,535 -
Estimated liability for landfill closure and
post-closure care costs - 3,432,700 - 3,432,700
Customer deposits 2,717,382 - - 2,717,382 -
Total long-term liabilities 132,541,996 3,432,700 - 135,974,696 371,696
Total liabilities 144,093,705 3,996,376 685,008 148,775,089 1,513,622
Net Assets
Invested in capital assets, net of
related debt 112,177,557 6,387,226 32,961,005 151,525,788 20,562,243
Restricted for debt service 12,942,163 - - 12,942,163 -
2 072 865 494 476 3 922 549 5,500,938 3,822,762
Unrestricted ( ) ,
Total net assets $127,192,585 $ 5,892,750 $ 36,883,554 169,968,889 $24,385,005
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 26,298,223
Net assets of business type activities $196,267,112
See accompanying notes to the basic financial statements.
21
T E X A S
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EXHIBIT A-8
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Operating revenues:
Charges for services $ 33,145,390 $11,816,055 $ 2,490,527 $47,451,972 $ 9,040,247
Rents,concessions and other 119,298 10,827 1,762,731 1,892,856 273,964
Contributions - - - - 9,252,043
Total operating revenues 33,264,688 11,826,882 4,253,258 49,344,828 18,566,254
Operating expenses:
Personnel services 8,130,463 3,333,825 1,678,742 13,143,030 2,007,882
Supplies and materials 2,448,713 303,237 920,039 3,671,989 3,300,279
Maintenance and repairs 1,785,464 610,220 340,151 2,735,835 1,596,446
Utilities and other services 5,456,346 3,793,482 999,988 10,249,816 135,496
Insurance and contract support 643,952 90,765 144,353 879,070 8,298,608
Other expenses 1,459,749 506,531 337,604 2,303,884 1,143,498
Depreciation and amortization 5,339,883 164,338 724,388 6,228,609 3,568,008
Total operating expenses 25,264,570 8,802,398 5,145,265 39,212,233 20,050,217
Operating income(loss) 8,000,118 3,024,484 (892,007) 10,132,595 (1,483,963)
Nonoperating revenues(expenses):
Interest income 183,634 2,562 8,232 194,428 40,286
Gain/(loss)on sale/abandonment of capital assets 32,295 (337) (20,506) 11,452 141,771
Interest expense and paying agent fees (5,910,505) - - (5,910,505) (21,240)
Intergovernmental operating grants - - 2,199,660 2,199,660 -
Total nonoperating revenues(expenses) (5,694,576) 2,225 2,187,386 (3,504,965) 160,817
Income(loss)before contributions and transfers 2,305,542 3,026,709 1,295,379 6,627,630 (1,323,146)
Capital contributions 108,471 - 112,402 220,873 -
Transfers in 443,761 - 12,001,243 12,445,004 4,074,698
Transfers out (1,326,071) (2,511,153) (1,993,689) (5,830,913) (312,000)
Change in net assets 1,531,703 515,556 11,415,335 13,462,594 2,439,552
Net assets-beginning 125,660,882 5,377,196 25,468,219 21,945,453
Net assets-ending $127,192,585 $ 5,892,752 $36,883,554 $ 24,385,005
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 2,962,680
Change in net assets of business type activities $ 16,425,274
See accompanying notes to the basic financial statements.
22
EXHIBIT A-9
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2010
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Cash flows from operating activities:
Received from customers and users $ 33,259,988 $ 11,838,917 $ 4.244,905 $ 49,343,810 $ 18,541,528
Payments to suppliers (14,538,032) (6,232,537) (2,859,506) (23,630,075 (13,953,541)
Payments to employees (5,916,218) (2,364,097) (1,318,963) (9,599,278) (1,501,381)
Net cash provided by operating activities 12,805,738 3,242,283 66,436 16,114,457 3,086,606
Cash flows from noncapital financing activities:
Intergovernmental operating grants - - 1,965,303 1,965,303 -
Interfund loans received(repaid) - 264,178 264,178 (12,064)
Transfers in from other funds 443,761 12,001,243 12,445,004 4,074,698
Transfers out to other funds (1,326,071) (2,511,153) (1,993,689) (5,830,913) (312,000)
Net cash provided(used)by noncapital financing activities (882,310) (2,511,153) 12,237,035 8,843,572 3,750,634
Cash flows from capital and related financing activities:
Capital contributions 112,402 112,402 -
Acquisition and construction of capital assets (26,048,845) (572,620) (12,974,421) (39,595,886) (6,123,027)
Proceeds from sale of capital assets 32,295 - 32,295 244,698
Proceeds from sale of refunding bonds 9,830,000 - 9,830,000 -
Premium on sale of refunding bonds 685,333 - 685,333
Payment to escrow agent for refunded bonds (10,359.655) - (10,359,655)
Payment of bond issuance costs (155,677) - (155,677) -
Principal paid on long-term debt (5,611,142) - (5,611,142) (172,843)
Interest and fees paid on long-term debt (6,065,981) - (6,065,981) (21,240)
Net cash used for capital and related
financing activities (37,693,672) (572,620) (12,862,019) (51,128,311) (6,072,412)
Cash flows from investing activities:
Interest on investments 183,634 2,562 8,232 194,428 40,286
Net cash provided by investing activities 183,634 2,562 8,232 194,428 40,286
Net Increase(Decrease)in Cash and Cash Equivalents (25,586,610) 161,072 (550,316) (25,975,854) 805,114
Cash and Cash Equivalents-Beginning 72,222,899 2,086,727 4,614,914 78,924,540 3,178,161
Cash and Cash Equivalents-Ending $ 46,636,289 $ 2,247,799 $ 4,064,598 $ 52,948,686 $ 3,983,275
Reconciliation of cash and cash equivalents on the balance
sheet to the statement of cash flows:
Cash and cash equivalents $ 25,737 $ 2,247,799 $ 3,903,214 $ 6,176,750 $ 3,270,992
Restricted assets-cash and cash equivalents 46,610,552 - 161,384 46,771,936 712,283
Total cash and cash equivalents at end of year $ 46,636,289 $ 2,247,799 $ 4,064,598 $ 52,948,686 $ 3,983,275
See accompanying notes to the basic financial statements.
23
EXHIBIT A-9
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2010
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Reconciliation of Operating Income(Loss)to Net Cash
Provided by Operating Activities:
Operating income(loss) $ 8,000,118 $ 3,024,484 $ (892,007) $ 10,132,595 $ (1,483,963)
Adjustments to reconcile operating income(loss)
to net cash provided by operating activities:
Depreciation and amortization 5,339,883 164,338 724,388 6,228,609 3,568,008
Customer deposits received 37,993 - - 37,993 -
(Increase)decrease in current assets:
Receivables:
Customer and trade (43,958) 12,035 (11,168) (43,091)
Other 1,265 - 2,815 4,080 (26,492)
Inventory 18,408 - 8,973 27,381 39,284
Prepaid items (1,407) (59) 879 (587) 915,457
Increase(decrease)in current liabilities:
Accounts payable-trade (1,481,340) (184,028) 186,972 (1,478,396) (21,165)
Accrued payroll 4,698 8,636 14,948 28,282 44
Accrued vacation and sick leave 10,901 (472) (2,962) 7,467 (396)
i Payable to other City funds (52,150) - (52,150) -
Estimated health claims payable - - - 94,063
Payable to government agencies - (185) 2,370 2,185 -
Other liabilities 971,327 3,213 31,228 1,005,768 1,766
Estimated liability for landfill closure - 214,321 - 214,321 -
Total adjustments 4,805,620 217,799 958,443 5,981,862 4,570,569
Net cash provided by
operating activities $ 12,805,738 $ 3,242,283 $ 66,436 $ 16,114,457 $ 3,086,606
Noncash capital and financing activities:
Capital assets received from developers $ 108,471 $ - $ - $ 108,471 $ -
See accompanying notes to the basic financial statements.
24
ICI
EXHIBIT A-10
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
SEPTEMBER 30, 2010
Agency
Fund
Assets
Cash and cash equivalents $ 300,715
Liabilities
Other liabilities $ 300,715
See accompanying notes to the basic financial statements.
25
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the City of Wichita Falls, Texas (City) conform to
accounting principles generally accepted in the United States of America (GAAP) applicable to
state and local governments. GAAP for local governments includes those principles prescribed by
the Governmental Accounting Standards Board (GASB), which includes all statements and
interpretations of the National Council on Governmental Accounting (NCGA) unless modified by
the GASB, and those principles prescribed by the American Institute of Certified Public
Accountants in the publication entitled Audits of State and Local Governmental Units. The
following is a summary of the more significant policies and practices used by the City.
A. Reportinq Entitv
The City is a municipal corporation governed by an elected Mayor and six-member City Council.
As required by Governmental Accounting Standards Board (GASB) Statement No. 39, these
financial statements present the City and its component units, entities for which the City is
considered to be financially accountable. Blended component units, although legally separate
entities, are in substance, part of the City's operations and data from these units are combined with
data presented by the City. A discretely presented component unit, on the other hand, is reported
in a separate column in the basic financial statements to emphasize it is legally separate from the
City. Each blended and discretely presented component unit has a September 30th year end.
Blended Component Unit
Employee Benefit Trust Fund. On October 1, 1983, an "Agreement and Declaration of Trust"
was made and entered into between the City and the Employee Benefit Trust Committee,
acting as Trustee to administer the Employee Benefit Trust (Trust). The Trust Committee
consists of four Trustees selected by the City, who may, but need not be, beneficiaries of the
health and welfare program funded by the Trust, and/or officers or employees of the City. The
purpose of the Trust is to provide health and welfare benefits, which may include life,
accidental death and dismemberment, disability, medical and dental insurance, and any other
benefits as determined by the Trustee Committee. The Trust is funded through contributions
by the City and employees who choose to participate. It may be terminated in writing, at any
time, by either party. The Employee Benefit Trust Fund is presented in the accompanying
financial statements as an internal service fund.
Discretelv Presented Component Units
The Wichita Falls Economic Development Corporation. The Wichita Falls Economic
Development Corporation is a non-profit corporation formed in May 1997 for the purpose of
increasing employment opportunities, primarily through assisting qualifying enterprises with
funds provided by a portion of the local sales tax. Assistance may be in the form of incentive
grants, loans or leases which call for discounted rates or rebates for job development. The
Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A.
Since the City Council appoints its Board of Directors, approves its budgets, and exercises final
authority over its operations, the Wichita Falls Economic Development Corporation is
considered to be part of the City's reporting entity and presented in the accompanying basic
financial statements as a discretely presented component unit. The Wichita Falls Economic
Development Corporation utilizes full accrual accounting.
26
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2010
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
The Wichita Falls 4B Sales Tax Corporation. The Wichita Falls 4B Sales Tax Corporation is a
non-profit corporation formed in May 1997 for the purpose of increasing employment
opportunities and for public improvement projects such as parks, auditoriums, learning centers,
open space improvements, athletic and exhibition facilities, and the related maintenance and
operating costs of such projects. The Corporation operates under the authority of Vernon's
Civil Statutes, Article 5190.6, Section 4B. Since the City Council appoints its Board of
Directors, approves its budgets, and exercises final authority over its operations, the Wichita
Falls 4B Sales Tax Corporation is considered to be part of the City's reporting entity and
presented in the accompanying basic financial statements as a discretely presented
component unit. The Wichita Falls 4B Sales Tax Corporation utilizes full accrual accounting.
Wichita Falls Reinvestment Zone #2. On August 16, 2005, the City of Wichita Falls, Texas,
with the advice and consent of the Wichita Falls Independent School District and Wichita
County, approved the creation of the Wichita Falls Reinvestment Zone#2 (Zone). This Zone is
permitted by Article 1066e of the State of Texas Tax Increment Financing Act passed in 1981.
The area of the Zone is approximately 236 acres and includes the Lawrence Road area of the
City. The purpose of the Zone is to capture increments of growth in real property values in the
Zone from base values established on January 1, 2004, and use the ad valorem taxes derived
from these increments to contribute to the zoned area. Tax funds derived from the increment
can only be spent for public improvements in the Zone or for the payment of debt service on
bonds issued to provide funds for public improvements. The Zone terminates on December 31,
2025, or when all debt has been paid if later. After all costs have been paid at the end of the
tax increment financing period, any money remaining is to be remitted to the taxing entities.
Since the City Council appoints a majority of its Board, approves its budget, and exercises final
authority over its operations, the Wichita Falls Reinvestment Zone#2 is considered to be part
of the City's reporting entity and presented in the accompanying basic financial statements as a
discretely presented component unit. The Zone utilizes full accrual accounting.
Wichita Falls Reinvestment Zone #3. On September 1, 2009, the City of Wichita Falls, Texas,
with the advice and consent of the Wichita Falls Independent School District and Wichita
County, approved the creation of the Wichita Falls Reinvestment Zone#3 (Zone). This Zone is
permitted by Article 1066e of the State of Texas Tax Increment Financing Act passed in 1981.
The area of the Zone is approximately 630 acres and includes a significant portion of the
Eastside Neighborhood. The purpose of the Zone is to capture increments of growth in real
property values in the Zone from base values established on January 1, 2009, and use the ad
valorem taxes derived from these increments to contribute to the zoned area. Tax funds
derived from the increment can only be spent for public improvements in the Zone or for the
payment of debt service on bonds issued to provide funds for public improvements. The Zone
terminates on December 31, 2029. After all costs have been paid at the end of the tax
increment financing period, any money remaining is to be remitted to the taxing entities. Since
the City Council appoints a majority of its Board, approves its budget, and exercises final
authority over its operations, the Wichita Falls Reinvestment Zone #3 is considered to be part
of the City's reporting entity and presented in the accompanying basic financial statements as a
discretely presented component unit. The Zone utilizes full accrual accounting.
27
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2010
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
No separate audited financial statements are available for the City's blended and discretely
presented component units. Complete financial statements for the individual component units
may be obtained from the City's Assistant City Manager/CFO at 1300 7th Street, Wichita Falls,
Texas.
Excluded From the Reporting Entitv
Wichita Falls Firemen's Relief and Retirement Fund. The Wichita Falls Firemen's Relief and
Retirement Fund was established and is controlled through various State of Texas legislative
enactments. This Fund is administered locally by a seven-member board, independent of the
City Council. City management and the City Council do not influence or control the
administrative and financial affairs of the Fund, and the assets of the Fund are not the
property of the City. The seven-member Board of Trustees, composed of the Mayor, the
Senior Accountant from the City's Finance Department, three firefighters elected by a majority
vote of the firefighters and two citizens, who are not employees or officers of the City and are
chosen by the unanimous vote of the first five Trustees, are subject to the administrative
supervision of and report to the State Firemen's Pension Board. The activities of the
Firemen's Relief and Retirement Fund, in the City's judgment, are not a part of the City and
thus are excluded from the accompanying financial statements.
B. Basis of Presentation
Government-wide financial statements
The basic financial statements include both government-wide (based on the City as a whole) and
fund financial statements. The government-wide financial statements (i.e., the statement of net
assets and the statement of activities) report information on all non-fiduciary activities of the
primary government and its component units. For the most part, the effect of interfund activity has
been removed from these statements. However, interfund services provided and used are not
eliminated in the process of consolidation. Governmental activities, which normally are supported
by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for support.
The government-wide statement of activities demonstrates the degree to which the direct expenses
of a functional category (police, public works, etc.) or segment are offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific function or segment. Program
revenues include 1) charges to customers or applicants who purchase, use or directly benefit from
goods, services or privileges provided by a given function or segment, 2) grants and contributions
that are restricted to meeting operational requirements of a particular function or segment, and
3) grants and contributions that are restricted to meeting the capital requirements of a particular
function or segment. Taxes and other items not included among program revenues are reported
instead as general revenues.
28
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL 'N IAL STATEMENTS (CONY D.)
SEPTEMBER 30, 2010
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
Fund financial statements
Separate fund-based financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major enterprise funds are reported as
separate columns in the fund financial statements. GASB Statement No. 34 sets forth minimum
criteria (percentage of assets, liabilities, revenues or expenditures/expenses of either fund category
for governmental and enterprise) for the determination of major funds. The major governmental
fund is the General Fund. The major enterprise funds are the Water and Sewer Fund and the
Sanitation Fund. Non-major funds are combined in a column in the fund financial statements.
Non-major funds are detailed in the combining section of the statements.
Internal service funds, which traditionally provide services primarily to other funds of the
government, are presented in the summary form as part of the proprietary fund financial
statements. Because the principal users of internal services are the City's governmental and
business-type activities, financial statements of internal service funds are allocated (based on the
percentage of goods or services provided) between the governmental and business-type activities
when presented at the government-wide level.
The government-wide focus is more on the sustainability of the City as an entity and the change in
aggregate financial position resulting from the activities of the fiscal period. The focus of the fund
financial statements is on the major individual funds of the governmental and business-type
categories. Each presentation provides valuable information that can be analyzed and compared
to enhance the usefulness of the information.
C. Measurement focus, basis of accounting and financial statement presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary funds. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year in which they
are levied. Grants and similar items are recognized as soon as all eligibility requirements imposed
by the provider have been met.
Government fund-level financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as
well as expenditures related to compensated absences and claims and judgments, are recorded
only when payment is due.
Property tax, franchise fees, and sales tax associated with the current fiscal period are all
susceptible to accrual and have been recognized as revenues of the current fiscal period. All of the
revenue items are considered to be measurable and available only when cash is received.
29
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2010
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
The City reports the following major governmental fund:
The General Fund is the City's primary operating fund. All general tax revenues and other
receipts that are not allocated by law or contractual agreement to some other fund are
accounted for in this fund. From the fund are paid general operating costs, fixed charges, and
capital improvement costs that are not paid through other funds.
Other governmental funds are a summarization of all the non-major governmental funds.
The City reports the following major proprietary funds:
The Water and Sewer Fund accounts for water and sewer utility services to residents of the
City. Activities necessary to provide such services are accounted for in the fund, including, but
not limited to, administration, operations, maintenance, finance and related debt service.
The Sanitation Fund accounts for refuse collection services to the residents of the City as well
as the operations of the City's landfill. Activities necessary to provide such services are
accounted for in the fund, including, but not limited to, administration, operations and
maintenance.
Other enterprise funds are a summarization of all of the non-major proprietary funds.
The City additionally reports the following fund types:
Internal service funds are used to account for the financing of materials and services provided
by one department of the City to other departments of the City on a cost-reimbursement basis.
The City uses internal service funds to report the activities of fleet maintenance, duplicating
services, and employee health and life insurance.
An agency fund is used to account for any unclaimed vendor or payroll checks that will be
escheated to the State if they remain unclaimed. These funds are held on a purely custodial
basis.
GASB Statement No. 34 eliminates the presentation of account groups but provides for these
records to be maintained and incorporates the information into the Governmental Activities column
in the government-wide Statement of Net Assets.
Private-sector standards of accounting and financial reporting (as issued by the Financial
Accounting Standards Board) issued prior to December 1, 1989, generally are followed in both the
government-wide and proprietary fund financial statements to the extent that those standards do
not conflict with or contradict guidance of the Governmental Accounting Standards Board.
Governments also have the option of following subsequent private-sector guidance for their
business-type activities and enterprise funds, subject to this same limitation. The City has elected
not to follow subsequent private-sector guidance.
30
CITY OF WICH ITA FALLS TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2010
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expense generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The principal
operating revenues of the City's water and sewer, sanitation, transit, and airport funds are charges
to customers for services. Operating expenses for the enterprise funds and internal service funds
include the cost of sales and services, administrative expenses and depreciation on capital assets.
All revenues not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy
to use restricted resources first, then unrestricted resources as they are needed.
Capital improvement assessments are recorded as revenues in the fiscal period when the
assessment becomes both measurable and available to finance expenditures of the fiscal period.
Assessment revenues are considered measurable and available when collected by the City and
recognized as revenue at that time. Payments for capital improvement assessments received in
advance of the levy are reflected as deferred revenue.
D. Nonexchange Transactions
In a nonexchange transaction, a government gives (or receives) value without directly receiving (or
giving) equal value in return. The statement defines when the City should recognize revenue or
expense for nonexchange transactions involving financial or capital resources and how to account
for timing and purpose restrictions. The timing of recognition depends on whether a nonexchange
transaction is (a) a derived tax revenue (b) an imposed nonexchange revenue transaction or (c) a
government-mandated or voluntary nonexchange transaction. Under this standard, revenue
transactions with purpose restrictions are recorded as restricted resources until the purpose
restrictions are met.
Nonexchange transactions include the following classifications:
• Derived tax revenues result from assessments imposed by government on exchange
transactions.
• Imposed nonexchange revenues result from assessments by governments on
nongovernmental entities, other than assessments on exchange transactions.
• Government-mandated nonexchange transactions occur when a government at one level
provides resources to a government at another level and require that government to use
them for a specific purpose or purposes established in the provider's enabling legislation.
• Voluntary nonexchange transactions result from legislative or contractual agreements, other
than exchanges, entered into willingly by two or more parties. Examples of the City's
voluntary nonexchange transactions include capital grants, state shared revenue and private
donations.
31
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2010
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
Providers of government-mandated nonexchange transactions and voluntary nonexchange
transactions should recognize liabilities and expenses/expenditures and recipients should
recognize receivables (or decrease in liabilities) and revenue when all applicable eligibility
requirements, including time requirements are met.
All nonexchange transactions occurring in governmental fund types are also subject to the modified
accrual revenue recognition criteria. Accordingly, assets and revenue should not be recognized
unless measurable and available.
E. Assets, liabilities and net assets or eauitv
1. Cash, cash equivalents and investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits
and short-term investments with original maturities of three months or less from the date of
acquisition.
Investments are carried at fair value. Fair value is determined as the price at which two
willing parties would complete an exchange. Interest earned on investments is recorded in
the funds in which the investments are recorded.
2. Inventory and Prepaid Items
Inventories of the general and proprietary funds consist of supplies and various materials
used for the maintenance of 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.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government-wide and fund financial statements.
3. Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g.
roads, bridges, sidewalks and similar items), are reported in the applicable governmental
or business-like activities columns in the government-wide financial statements. The City
defines capital assets as assets with an initial, individual cost of more than $1,000 and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded
at estimated fair market value at the time received.
Capital assets are depreciated using the straight line method over the following useful
lives:
32
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2010
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
Assets Years
Buildings, systems and improvement 20-59 years
Infrastructure 8-100 years
Machinery, vehicles and other equipment 3 -25 years
Furniture and equipment 3 - 10 years
For business-like activities' capital assets, interest is capitalized on construction costs
incurred during the year at an average interest rate on borrowed funds (revenue bonds) in
accordance with generally accepted accounting principles.
For the fiscal year ended September 30, 2010, the City's business-like activities incurred a
total of $5,931,163 of interest costs. Of this amount, $20,658 was capitalized on
construction projects and $5,910,505 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 revenue when received. The cost of
water and sewer lines installed by developers is valued by the contractor and recorded as
nonoperating revenue in the Water and Sewer Fund.
4. LonQ-Term Obligations
Long-term debt and other obligations for general government purposes are recorded in the
government-wide statement of net assets. Long-term debt and other obligations financed by
proprietary funds are reported as liabilities in the appropriate funds.
For the government-wide financial statements and proprietary fund types, bond premiums
and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the straight-line method in the government-wide financial statements. Bonds
payable are reported net of the applicable bond premium or discount. Issuance costs are
reported as deferred bond issue costs and amortized over the term of the related debt. In
addition, gains or losses on proprietary fund bond refunding are amortized over the term of
the lesser of the new bonds or the refunded bonds' life using the effective interest method. In
the governmental fund financials, bond proceeds are reported as another financing source.
Bond premiums and discounts in governmental funds are also recognized currently as other
financing sources or uses. Issuance costs, even if withheld from the actual net proceeds
received, are reported as debt service expenditures.
5. Federal and State Grants
Grants and shared revenues are generally accounted for within the appropriate fund of the
City to be financed by such grants or shared revenues. Federal grants include Community
Development Block Grant, Section 8 Housing Assistance, Home Investment Partnership
Agreement Program, and numerous health-related grants.
Each Federal grant is accounted for in a separate special revenue fund. State grant
revenues received for purposes normally financed through the general government are
accounted for within the General Fund.
33
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2010
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
6. Reserves and Desiqnations
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.
7. Transactions Between Funds
Outstanding balances between funds are reported as "due to/from other City funds." Any
residual balances between governmental activities and business-type activities are reported
in the government-wide statements as "internal balances." Nonrecurring or non-routine
transfers of equity between funds are accounted for as transfers.
8. 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. Upon leaving the
employment of the City, employees will be paid for unused vacation days which they have
accrued.
Sick leave is earned at the rate of 4.62 hours per pay period up to a maximum of ninety
days. Additionally, police officers and firefighters may accumulate an unlimited number of
sick leave days while employed with the City. Upon termination, police officers and
firefighters are compensated for up to 720 hours and 1,080 hours, respectively.
9. Risk Management
The government is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters for which the
government carries commercial insurance. For insured programs, there have been no
significant reductions in insurance coverage. Settlement amounts have not exceeded
insurance coverage for the current year or the three prior years.
The City maintains a group health insurance plan for employees and dependents which is
partially self-insured by the City. A group life insurance plan is maintained through an
insurance company. Contributions to the plans are provided for by both the City and
participating employees. These contributions are recognized as revenues in the internal
service fund used to account for these plans. The contributions made by the City are
recorded as expenditures or expenses of the various funds as appropriate.
34
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2010
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
Liabilities are reported when it is probable that a loss has occurred and the amount of the
loss can be reasonably estimated. An excess coverage insurance policy covers individual
claims in excess of $150,000. Liabilities include an amount for claims that have been
incurred but not reported. Claim liabilities are calculated considering the effects of inflation,
recent claim settlement trends including frequency and amount of pay-outs and other
economic and social factors.
The City is also self-insured up to $250,000 for workers' compensation claims. Such
claims are processed by a third party administrator. The City's estimated liability for
workers' compensation claims a able at Se tember 30 2010 is based on mans ement's
PY P 9
estimate of probable losses in the amount of$202,584. The payment dates of such claims
cannot be precisely determined, but are expected to be paid on a periodic basis over the
next few years. Accordingly, the long-term liability has been recorded in the government-
wide financial statements. $98,060 is believed by City management to be currently payable
from available resources and is recorded in the General Fund.
The following represents changes in the amount of claims liabilities for the City from
October 1, 2008 to September 30, 2010:
Health Workers'
Care Compensation
Liability balance, October 1, 2008 $ 528,197 $ 322,777
Incurred claims/adjustments 7,109,801 1,105,129
Claim payments ( 7,211,264) ( 1,227,143)
Liability balance, September 30, 2009 426,734 200,763
Incurred claims/adjustments 7,776,535 615,475
Claim payments ( 7,682,472) ( 613,654)
Liability balance, September 30, 2010 $ 520,797 $ 202,584
Note 2 - COMPLIANCE AND ACCOUNTABILITY
Finance-Related Le al and Contra
ctual actual Provisions
In accordance with GASB Statement No. 38 "Certain Financial Statement N Dis
closures",
sclosures",
violations of finance-related legal and contractual provisions are reported below, along with actions
taken to address such violations.
Violation Action Taken
None
35
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2010
Note 3 - DEPOSITS AND INVESTMENTS
Deposits
All of the City's demand and time depository accounts are held in local banking institutions under
the terms of written depository contracts. At September 30, 2010, the total amount of the City's
demand and time deposits per the general ledger was $2,894,278, and the total amount per the
City's September 30, 2010 bank statements was $4,283,207. The entire amount of the year-end
bank statement balances was covered by federal depository insurance or by collateral held by the
City's agent in the City's name.
Investments
The investment policies of the City and its discretely presented component units are governed by
State statutes. Authorized investments include obligations of the U.S. Treasury, agencies and
instrumentalities, obligations of the State of Texas and related agencies, obligations of states,
agencies, counties, cities and political subdivisions of any state rated A or above by a nationally
recognized investment rating firm, repurchase agreements, public funds investment pools, and
commercial paper.
The investments of the City and its discretely presented component units at September 30, 2010
are as follows:
Fair Value/ Average Weighted Average
Carrying Credit Quality/ Months to
Types of Investments Amount Cost Ratinos Maturitv
Primary Government:
TexPool $ 29,725,593 $ 29,725,593 Not rated 1.00
LOGIC 42,714,394 42,714,394 Not rated 1.00
Money market account 11,026,382 11.026.382 Not rated 1.00
Total primary government
investments 83.466.369 83.466.369
Component Units:
TexPool 19,302,833 19.302.833 Not rated 1.00
Total component unit
investments 19,302,833 19,302.833
Total investments $102 769 202 $102 769 202
TexPool is a public funds investment pool administered by the Treasurer of the State of Texas
pursuant to the Interlocal Cooperation Act passed in 1989 by the 71st Texas Legislature. This Act
authorized the City to delegate to TexPool the authority to make investment purchases and to hold
legal title as custodian of the investment securities. All TexPool investments are in the possession
of the Texas Treasury Safekeeping Trust Company and held in its book-entry safekeeping account
at the Federal Reserve Bank of Dallas. The Texas Treasury Safekeeping Trust Company was
created in 1986 by the 69th Texas Legislature to enable the Treasurer of the State of Texas to
manage, safekeep, and invest public funds of state agencies and political subdivisions more
efficiently and economically. The fair value of the City's position in TexPool is the same as the
value of the pool shares.
36
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2010
Note 3 - DEPOSITS AND INVESTMENTS (CONTD.)
LOGIC was also established pursuant to the Interlocal Cooperation Act passed by the State of
Texas and is administered by Southwest Securities Group, Inc. LOGIC's governing body is a five-
member board of directors comprised of three government officials and two other persons with
expertise in public finance. LOGIC's investments are only those authorized by the Texas Public
Funds Investment Act governing pools for local governments. LOGIC presently offers two
investment pools, each of which is separately managed and has a different investment objective.
Each participating government owns an undivided beneficial interest in the assets of the pool
represented by units. Participants may terminate their participation in LOGIC at any time by
redeeming their units. The fair value of the City's position in LOGIC is the same as the value of the
pool shares.
GASB Statement No. 40 requires a determination as to whether the City was exposed to the
following specific investment risks at year end and if so, the reporting of certain related disclosures:
a. Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The ratings of securities by nationally recognized rating agencies are designed
to give an indication of credit risk. At year end, the City was not exposed to credit risk.
b. Custodial Credit Risk
Deposits are exposed to custodial credit risk if they are not covered by depository insurance
and the deposits are uncollateralized, collateralized with securities held by the pledging
financial institution, or collateralized with securities held by the pledging financial institution's
trust department or agent but not in the City's name.
Investment securities are exposed to custodial risk if the securities are uninsured, are not
registered in the name of the government, and are held by either the counterparty or the
counterparty's trust department or agent but not in the City's name.
At year end, the City was not exposed to custodial credit risk.
c. Concentration of Credit Risk
This risk is the risk of loss attributed to the magnitude of a government's investment in a
single issuer. At year end, the City was not exposed to concentration of credit risk.
d. Interest Rate Risk
This is the risk that changes in interest rates will adversely affect the fair value of an
investment. In accordance with its investment policy, the City manages its exposure to
interest rate risk by allowing no more than 20% of the City's portfolio to be invested for a
period greater than one year.
e. Foreign Currency Risk
This is the risk that exchange rates will adversely affect the fair value of an investment. At
year end, the City was not exposed to foreign currency risk.
37
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 4- RECEIVABLES
Receivables at September 30, 2010 consist of the following:
Nonmajor Nonmajor Totals Totals
Governmental Water and Enterprise Internal Primary Component Reporting
General Funds Sewer Sanitation Funds Service Government Units Entitv
Receivables:
Taxes and assessments $1,642,480 $ 318,268 $ - $ - $ - $ - $ 1,960,748 $ $ 1,960,748
Customer and trade - - 5,171,905 1,634,246 185,392 - 6,991,543 6,991,543
Other City funds 3,179,297 - - - - - 3,179,297 3,179,297
Government agencies 3,846,515 5,180,791 51,419 316,707 - 9,395,432 1,186,616 10,582,048
Other 1.277.596 56.828 51,935 - 49,833 77,126 1,513,318 - 1.513.318
000 Gross receivables 9,945,888 5,555,887 5,275,259 1,634,246 551,932 77,126 23,040,338 1,186,616 24,226,954
Less: Allowance for
uncollectible accounts ( 705,796) ( 56.175) ( 1.109.627) ( 380.320) ( 50,510) - ( 2,302.428) - ( 2.302.428)
Net total receivables $9 240 092 $5,499,712 $4 165 632 $1.253.926 &77= $20 737 910 $1.186,616 $21 924 526
There are no receivables, other than delinquent property taxes, that the City does not expect to collect within a year. The City expects to collect
approximately$300,000 of the$1,960,748 total delinquent property taxes. This amount is similar to the amounts collected in previous years.
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 5 - PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of the prior January 1. Taxes are levied
on October 1, and become delinquent after January 31, unless the half-payment option is elected,
in which case one-half of the tax is due November 30, and the balance the following June 30.
The City is permitted by its Home Rule Charter to levy taxes up to $2.25 per $100 of assessed
valuation for general governmental services including the payment of principal and interest on long-
term debt. The combined tax rate to finance general governmental services for the year ended
September 30, 2010 was $.60526 per $100 which means that the City has a tax margin of
$1.64474 per $100, and could raise up to $72,799,463 additional tax revenue a year from the
present assessed valuation of$4,426,198,825 before the limit is reached.
Note 6 - RESTRICTED ASSETS
Restricted assets in the Water and Sewer Fund, Municipal Airport Fund, and Internal Service
Funds, are held for specific purposes in accordance with bond ordinances or other legal
restrictions.
Water and Sewer restricted assets are comprised of the following:
For Debt Service:
Cash and cash equivalents $12,942,163
For Capital Improvements:
Cash and cash equivalents 33,668,389
Total $46.610.552
Municipal Airport restricted assets are comprised of the following:
For Passenger Fare Charges:
Cash and cash equivalents $ 161.384
Internal Service Fund restricted assets are comprised of the following:
For Employee Insurance:
Cash and cash equivalents S 712.283
39
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30, 2010
Note 7 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2010 was as follows:
Balance Balance
Governmental activities: October 1, September 30,
2009 Increases Decreases 2010
Capital assets not being depreciated:
Land $ 9,143,152 $ 170,800 $ - $ 9,313,952
Construction in progress 6.599.660 5.481.929 5,011,255 7.070.334
Total capital assets not being depreciated 15,742.812 5,652,729 5.011.255 16.384.286
Capital assets being depreciated:
Land betterments 23,363,589 44,080 7,153 23,400,516
Buildings, systems and improvements 61,278,077 4,238,710 371,743 65,145,044
Infrastructure 152,848,517 3,293,831 749,934 155,392,414
Machinery and equipment 16,453,296 639,269 105,081 16,987,484
Furniture and fixtures 205.692 - 13,111 192.581
Total capital assets being depreciated 254.149.171 8,215,890 1.247.022 261,118.039
Less accumulated depreciation for:
Land betterments 3,284,609 488,829 1,600 3,771,838
Buildings,systems and improvements 14,124,096 1,312,166 218,718 15,217,544
Infrastructure 81,096,751 2,693,979 653,094 83,137,636
Machinery and equipment 6,562,446 1,025,969 96,840 7,491,575
Furniture and fixtures 195.030 2.387 13.111 184.306
Total accumulated depreciation 105.262.932 5.523,330 983,363 109.802.899
Total capital assets being depreciated, net 148.886,239 2.692.560 263,659 151.315.140
Governmental activities capital
assets, net $164,629,051 $8,345,289 $5,274,914 $167.699.426
40
I
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2010
Note 7 - CAPITAL ASSETS(CONTD.)
Balance Balance
Business-type activities: October 1, September 30,
2009 Increases Decreases 2010
Capital assets not being depreciated:
Land $ 8,465,722 $ 389,895 $ - $ 8,855,617
Construction in progress 7.747,234 33.085,533 4,010,292 36,822,475
Total capital assets not being depreciated 16,212,956 33,475,428 4,010,292 45,678,092
Capital assets being depreciated:
Land betterments 30,115,822 415,477 - 30,531,299
Buildings, systems and improvements 264,926,656 9,453,653 312,098 274,068,211
Machinery and equipment 6,747,365 472,240 228,451 6,991,154
Furniture and fixtures 44,227 - 3,408 40,819
Motor vehicles 43,842,818 6,072.153 3,100,882 46,814,089
Total capital assets being depreciated 345,676,888 16.413,523 3,644,839 358,445,572
Less accumulated depreciation for:
Land betterments 11,796,839 556,895 - 12,353,734
Buildings, systems and improvements 79,120,553 5,206,148 312,098 84,014,603
Machinery and equipment 4,677,825 425,496 206,915 4,896,406
Furniture and fixtures 39,014 3,413 3,407 39,020
Motor vehicles 28,230.860 3.419.120 2,998,601 28,651.379
Total accumulated depreciation 123.865,091 9.611.072 3,521,021 129,955,142
Total capital assets being depreciated, net 221,811.797 6.802.451 123,818 228,490,430
Business-type activities capital
assets, net $238.024 L $40.277 879 $4 134 110 9;274.168.522
Depreciation expense was charged to functions as follows:
Governmental activities:
Administrative services $ 537,876
Police 747,821
Fire 156,359
Parks and recreation 229,092
Accounting/finance 154,774
Community development 11,527
Public works 2,494,513
Health 88,211
Traffic and transportation 278,492
Multi-Purpose Events Center 824,665
Total governmental depreciation $5.523.330
41
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30,2010
Note 7 - CAPITAL ASSETS (CONTD.)
Business-type activities:
Municipal Airport $ 69,627
Kickapoo Airport 350,310
Transit 303,229
Sanitation 2,644,494
Water and sewer 5,939,190
Stormwater drainage 121,069
Water park 183,153
Total business-type depreciation $9.611.072
Note 8 - PENSION PLANS
Texas Municipal Retirement Svstem
Plan Description
The City provides pension benefits for all of its eligible employees, except firefighters, through
a nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal
Retirement System (TMRS), an agent multiple-employer public employee retirement system.
The plan provisions that have been adopted by the city are within the options available in the
governing state statutes of TMRS.
TMRS issues a publicly available comprehensive annual financial report that includes financial
statements and required supplementary information (RSI) for TMRS; the report also provides
detailed explanations of the contributions, benefits and actuarial methods and assumptions
used by the System. This report may be obtained by writing TMRS, P.O. Box 149153, Austin,
TX 78714-9153 or by calling 800-924-8677; in addition, the report is available on TMRS'
website at www.TMRS.org.
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 a percent
(200%) of the employee's accumulated contributions. In addition, the City can grant, as often
as annually, another type of monetary credit referred to as an updated service credit which is a
theoretical amount which, when added to the employee's accumulated contributions and the
monetary credits for service since the plan began, would be the total monetary credits and
employee contributions accumulated with interest if the current employee contribution rate and
City matching percent had always been in existence and if the employee's salary had always
been the average of his salary in the last three years that are one year before the effective
date. At retirement, the benefit is calculated as if the sum of the employee's accumulated
contributions with interest were used to purchase an annuity.
Members can retire at ages 60 and above with 10 or more years of service or with 25 years of
service regardless of age. A member is vested after 10 years. The plan provisions are adopted
by the governing body of the City, within the options available in the state statutes governing
TMRS and within the actuarial constraints also in the statutes.
42
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 8 - PENSION PLANS (CONTD.)
Contributions
The contribution rate for all employees is 5%, except police officers which is 7%, and the City
matching ratio is currently 2 to 1, both as adopted by the governing body of the City. Under the
state law governing TMRS, the actuary annually determines the City contribution rate. This rate
consists of the normal cost contribution rate and the prior service contribution rate, both of
which are calculated to be a level percent of payroll from year to year. The normal cost
contribution rate finances the currently accruing monetary credits due to the City matching
percent, which are the obligation of the City as of an employee's retirement date, not at the
time the employee's contributions are made. The normal cost contribution rate is the actuarially
determined percent of payroll necessary to satisfy the obligation of the City to each employee
at the time his/her retirement becomes effective. The prior service contribution rate amortizes
the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan's 25-year
amortization period. When the City periodically adopts updated service credits and increases in
annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-
year period. The unit credit actuarial cost method is used for determining the City contribution
rate. Both the employees and the City make contributions monthly. Since the City needs to
know its contribution rate in advance to budget for it, there is a one-year delay between the
actuarial valuation that is the basis for the rate and the calendar year when the rate goes into
effect (i.e. December 31, 2009 valuation is effective for rates beginning January 2011).
Wichita Falls Firemen's Relief and Retirement Fund
Plan Description
The City provides pension benefits for all of its firefighters through a single employer defined
benefit pension plan. The Wichita Falls Firemen's Relief and Retirement Fund (Fund) operates
under an act passed in 1937 by the Texas State Legislature and adopted by the City's
firefighters.
Benefits are determined on a "formula" or a "final salary" plan. A firefighter who qualifies for a
retirement benefit will receive monthly retirement equal to 2.28% (2.10% prior to August 5,
1998) of the firefighter's highest three year average salary calculated over the seventy-eight
consecutive pay periods during the firefighter's period of service covered by the Plan, which
produces the highest average, multiplied by 2.167.
Members can receive a service retirement at ages 50 and above with 20 or more years of
service. Members are eligible for actuarially reduced early retirement benefits before age 50,
provided the employee has accrued at least 20 years of service. The plan also provides death
and disability benefits. Members who terminate their service and are nonvested are entitled to
the excess of the member's contributions over any benefits previously received.
43
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMB ER 30 2010
Note 8 - PENSION PLANS (CONTD.)
Contributions
0 0
The contribution rate for the firefighters is 11 /o (increased from 9/o effective August 5, 1998
9 )
and the City contributes 10.46% (increased from 9% effective September 26, 2001). Both the
firefighters and City make contributions bi-weekly. Contribution requirements are not actuarially
determined, however, state law requires that each plan of benefits adopted by the Fund must be
approved by a qualified actuary. The actuary certifies that the contribution commitments by the
firefighters and the City provide an adequate financing arrangement. Using the entry age
actuarial cost method, the plan's normal cost is determined as a percentage of payroll. The
actuarial assumptions included (a) 8% investment rate of return (net of administrative expenses,
(b) projected salary increases due to inflation of 4.75% per year, compounded annually, and (c)
projected salary increases due to seniority/merit raises of 4.75% per year, compounded
annually. The actuarial value of assets was determined using techniques that smooth the
effects of short-term volatility in the market value of investments over a ten-year period. The
unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll
on a closed basis. The remaining amortization period at December 31, 2008 was 24.8 years.
Schedule of Actuarial Liabilities and Funding Prooress
Texas
Municipal Firemen's
Retirement Relief and
Svstem Retirement Total
Actuarial Valuation Date 12/31/09 12/31/08 "
Actuarial Value of Assets $ 71,505,945 $39,358,309 $110,864,254
Actuarial Accrued Liability(AAL) 125,325,301 54,260,301 179,585,602
Percentage Funded 57.1% 72.5% 61.7%
Unfunded Actuarial Accrued Liability(UAAL) 53,819,356 14,901,992 68,721,348
Annual Covered Payroll 39,020,039 8,915,419 47,935,458
UAAL as a Percentage of Covered Payroll 137.9% 167.1% 143.4%
Net Pension Obligation (NPO)at
the Beginning of the Period -0- -0- -0-
Annual Pension Cost:
Annual Required Contribution (ARC) $ 5,300,506 $ 1,136,628 $ 6,437,134
Interest on NPO -0- -0- -0-
Adjustment to the ARC -0- -0- -0-
Annual Pension Cost $ 5,300,506 $ 1,136,628 $ 6,437,134
The Wichita Falls Firemen's Relief and Retirement Fund has not had an actuarial valuation since
this date. A valuation is planned for December 31, 2010.
44
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 8 - PENSION PLANS(CONTD.)
Texas
Municipal Firemen's
Retirement Relief and
Svstem Retirement Total
Percentage of Annual Pension Costs Contributed 100% 100% 100%
Contributions Made $ 5,300,506 $ 1,136,628 $ 6,437,134
Increase in NPO -0- -0- -0-
NPO At the End of the Period -0- -0- -0-
Two preceding years:
2008:
Annual Pension Cost $ 4,997,318 $ 1,018,126 $ 6,015,444
Percentage of Annual Pension Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
2007:
Annual Pension Cost $ 4,599,517 $ 1,014,374 $ 5,613,891
Percentage of Annual Pension Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
Actuarial Assumptions
Texas
Municipal Firemen's
Retirement Relief and
Svstem Retirement
Actuarial Cost Method Projected Unit Credit Entry Age
Amortization Method Level Percent of Payroll Level Percent of Payroll
Remaining Amortization Period 28 Years 24.8 Years
Amortization Period Closed Closed
Asset Valuation Method 10-Year Smoothed Market Smooth Market Value
Investment Rate of Return 7.5% 8%
Projected Salary Increases Varies by Age & Service 4.75%
Includes Inflation at 3.0% 4.75%
Cost-of-Living Adjustments 2.1% (3.0% CPI) None
Both of the stand-alone financial reports for the Texas Municipal Retirement System and
Firemen's Relief and Retirement Fund can be obtained from the City's Director of Finance at 1300
7th Street, Wichita Falls, Texas.
A schedule of funding progress is presented as required supplementary information for both the
Texas Municipal Retirement System and the Firemen's Relief and Retirement Fund. These
schedules provide multi-year trend information that shows whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
45
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Plan Description
The City administers the City of Wichita Falls Retiree Health Care Plan for all permanent
employees who retire after satisfying eligibility retirement requirements through a single-employer
defined benefit plan. All employees who retire and are actively in one of the City's health plans can
continue to receive health care benefits under the City's plan for themselves and any dependents
for as long as the retiree and/or dependents live. The plan does not issue a stand-alone financial
report.
Retiree Contributions Pre-Medicare Eligibility prior to 12/31/2008
Retirees share in the cost of the Plan by paying premiums according to the following schedule:
BC/BS BC/BS
Core Plan Enhanced Plan
Retiree Only(under 65) $160 $260
Retiree Only(over 65) N/A N/A
Retiree/Spouse (both <65) $300 $460
Retiree/Spouse (both > 65) N/A N/A
Retiree/Spouse (1 >, 1 < 65) $265 $425
Retiree/Child $275 $435
Retiree/Family $340 $540
Dental premiums are included in the under 65 premiums above.
Retiree Contributions Pre-Medicare Eligibility After 1/1/2009
Retirees share in the cost of the Plan by paying premiums according to the following schedule:
BC/BS BC/BS
Core Plan Enhanced Plan
Retiree Only (under 65) $171 $278
Retiree Only (over 65) N/A N/A
Retiree/Spouse (both < 65) $321 $492
Retiree/Spouse (both > 65) N/A N/A
Retiree/Spouse (1 >, 1 < 65) $496 $603
Retiree/Child $294 $465
Retiree/Family $364 $578
Dental premiums are included in the under 65 premiums above.
46
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2010
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONTD.)
Retiree Contributions for Medicare Eligible Retirees
Pre Post
12/31/2008 12/31/2008
Retiree Only $69 $75
Retiree and Spouse Both Medicare Eligible $140 $150
Retiree Only—Retired Prior to 12/31/2008
But Not Medicare Eligible as of 12/31/2008 N/A $225
Retiree and Spouse Retired Prior to 12/31/2008
But Neither Medicare Eligible Pre 12/31/2008 N/A $550
Retiree Only—Active Prior to 12/31/2008 But
Not Yet Medicare Eligible as of 12/31/2008 N/A $325
Retiree and Spouse Active Prior to 12/31/2008
But Neither Medicare Eligible Pre 12/31/2008 N/A $650
Benefits for Spouses of Retired Emolovees
Spouses of retirees are eligible to participate in a retiree health care program. Spouses are
eligible to continue with same coverage after the death of retiree.
Non-Medicare and Medicare-Eligible Provisions
Medicare-eligible retirees and spouses on Medicare are eligible to participate in a Medicare
supplement health care plan. Effective January 1, 2009, the following changes will be
implemented to Medicare eligible retirees:
For retirees already on Medicare as of January 1, 2009, the City will provide $250 in premium
assistance towards the full premium for a Medicare subsidy program. The $250 is expected to
be a fixed amount. Spouses currently covered in the health plan will also be eligible for the
$250 premium assistance.
For members retired as of January 1, 2009 but not yet Medicare-eligible, the City will provide
$100 in premium assistance towards the full premium for a Medicare subsidy program. The
$100 is expected to be a fixed amount. Spouses can participate in the Medicare subsidy
program, but will receive no premium assistance.
For members who retire on or after January 1, 2009, the City will provide no premium
assistance once Medicare-eligible.
Vision Coveraoe
There is no vision coverage provided.
Dental Coverage
Retirees and spouses prior to qualifying for Medicare are eligible to participate in the same dental
care program as active employees. There is no dental coverage for retiree or spouses on the
Medicare supplement.
47
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONTD.)
Life Insurance Coverage
Life Insurance of $7,500 is provided to each retiree. There is no Life coverage for spouses of
retirees.
Fundinq Policv and Annual OPEB Cost
The City's annual other post-employment benefits (OPEB) cost is based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years. The City has established a
trust to fund the City's OPEB liability and intends on contributing quarterly installments to meet its
obligation.
The City's OPEB cost for the current year is as follows:
Annual Required Contribution $2,366,685
Interest on OPEB obligation 5,166
Adjustment to ARC ( 4.135)
Annual OPEB cost(expense) end of year 2,367,716
Net estimated employer contributions ( 2,436.597)
Increase (decrease) in net OPEB obligation ( 68,881)
Net OPEB obligation— beginning of year 68,881
Net OPEB obligation—end of year $ -
Schedule of Actuarial Liabilities and Fundinq Status
Actuarial Valuation Date 12/31/08
Actuarial Value of Assets $ -
Actuarial Accrued Liabilities $32,143,378
Unfunded Actuarial Accrued Liability (UAAL) $32,143,378
Funded Ratio 0.00%
Annual Covered Payroll N/A
UAAL as a Percentage of Annual Covered Payroll N/A
Actuarial Methods and Assumptions
The Projected Unit Credit actuarial cost method is used to calculate the GASB ARC for the City's
retiree health care plan. Using the plan benefits, the present health premiums and a set of
actuarial assumptions, the anticipated future payments are projected. The projected unit credit
method then provides for a systematic funding for these anticipated payments. The yearly ARC is
computed to cover the cost of benefits being earned by covered members as well as to amortize a
portion of the accrued liability.
48
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONTD.)
Projections of health benefits are based on the plan as understood by the City and include the
types of benefits in force at the valuation date and the pattern of sharing benefit costs between
Wichita Falls and its employees to that point. Actuarial calculations reflect a long-term perspective
and employ methods and assumptions that are designed to reduce short-term volatility in actuarial
accrued liabilities and the actuarial value of assets. Significant methods and assumptions were as
follows:
Investment Rate of Return 7.5%, net of expenses
Actuarial cost method Projected Unit Credit Cost Method
Amortization method Level as a percentage of salary
Amortization period Open 30 year period
Salary growth and inflation 3.0% per annum
Medical trend 9.0% for 2009; decreasing by 0.5% each year
until 2018; then 4.5% thereafter
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the profitability of events in the future. Amounts determined regarding the funded status and the
annual required contributions of the City's retiree health care plan are subject to continual revision
as actual results are compared to past expectations and new estimates are made about the
future. The required schedule of funding progress presented as required supplementary
information provides multi-year trend information that shows whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Note 10 - DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a
portion of their salary until future years. The deferred compensation is not available to the
employees until termination, retirement, death, or an unforeseen emergency.
Note 11 - AIRPORT LEASE
The Municipal Airport facilities are located on land at Sheppard Air Force Base. The land is
leased from the Department of the Air Force for a period of fifty years, beginning May 15, 2009
and expiring May 14, 2059. The City's expense for the year ended September 30, 2010 was
$33,200. The lease payment increases by 3% per year with a final lease payment of$141,307
in 2059.
Note 12 - DESCRIPTION OF LEASING ARRANGEMENTS
The majority of the City's operating leases contain an option for annual renewal at the end of the
initial lease term. In most cases, these leases will be canceled or replaced by other leases. The
City leases certain equipment under operating leases expiring at various times through the year
ending September 30, 2010.
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, 2010:
49
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30, 2010
Note 12 - DESCRIPTION OF LEASING ARRANGEMENTS (CONT"D.)
Year ending September 30:
2011 $ 316,649
2012 286,475
2013 138,046
2014 125,710
2015 70,847
2016-2020 212,403
2021-2025 243,990
2026-2030 282,851
2031-2035 327,902
2036-2040 380,128
2041-2045 440,672
2046-2050 510,860
2051-2055 592,227
2056-2059 541,008
Total minimum payments required $4.469.768
The total rental expenses for all operating leases for the year ended September 30, 2010 was
$315,653. There were no contingent rentals during the year ended September 30, 2010.
Note 13 - LONG-TERM LIABILITIES
Long-term liabilities transactions for the year ended September 30, 2010 are summarized as
follows:
Balance at Balance at
October 1, Retired and September 30, Due Within
2009 Issued Transferred(1) 2010 One Year
Governmental Activities:
General obligation bonds $ 5,535,000 $ - $ 745,000 $ 4,790,000 $ 340,000
Combination tax and revenue bonds 33,524,726 3,930,000 1,536,039 35,918,687 1,814,526
Accrued vacation and sick
leave payable 6,948,720 1,909,457 2,037,508 6,820,669 1,900,000
Claims and judgments payable 200.763 615.475 613,654 202.584 98.060
Total governmental activities 46,209.209 6.454.932 4,932,201 47,731.940 4.152,586
Business-tvoe Activities:
Utility system revenue bonds,
net of premium(discount) 119,841,741 - 12,339,997 107,501,744 2,223,968
Combination tax and revenue bonds 21,004,768 10,515,333 3,775,353 27,744,748 3,774,991
Accrued vacation and sick
leave payable 521,638 538,839 531,945 528,532 500,000
Note payable 640,376 - 31,142 609,234 32,155
Capital lease payable 722,464 - 172,843 549,621 177,925
Landfill closure,post-closure costs 3,218,379 214.321 - 3,432,700 -
Total business-type activities 145,949.366 11,268,493 16,851,280 140.366.579 6.709.039
Total long-term liabilities $192 158 575 $17 723,425 $21 783,481 $188 098,519 $10 861 625
(1) Includes bond premium amortization of $41,039 related to the combination tax and revenue
bonds (governmental activities), $109,997 related to revenue bonds, and $230,353 related to the
combination tax and revenue bonds (business-type activities).
50
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2010
Note 13 - LONG-TERM LIABILITIES(CONTD.)
For
o governmental activities, claims and judgments payable and compensated absences
ces are
generally liquidated by the General Fund.
Bonds Pavable
Bonds payable at September 30, 2010, including net unamortized premium on the revenue bonds,
are comprised of the following individual issues:
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Pavments Authorized at 9/30/10
General Obligation Bonds:
General Obligation and Construction 3.75%- 9/01/21 $175,000to $10,205,000 $ 4,790,000
Refunding Bonds,Series 2001 5.375% $945,000
Total General Obligation Bonds 4.790.000
Combination Tax and Revenue Bonds:
Combination Tax and Revenue 3.00%- 9/01/18 $335,000 to 7,550,000 3,060,000
Certificates of Obligation,Series 2003 4.00% $775,000
Combination Tax and Revenue 2.00%- 8/01/12 $640,000 to 18,840,000 7,145,000
Refunding Bonds,Series 2004 5.00% $3,645,000
Plus bond premium 120,997
Combination Tax and Revenue 4.90%- 8/01/16 $115,000 to 14,020,000 9,700,000
Refunding Bonds,Series 2005 5.00% $2,650,000
Plus bond premium 458,041
Combination Tax and Revenue 3.55%- 9/01/26 $580,000 to 16,875,000 14,360,000
Certificates of Obligation,Series 2006A 5.00% $1,225,000
Plus bond premium 315,509
Combination Tax and Revenue 5.20%- 9/01/26 $130,000 to 4,275,000 3,700,000
Certificates of Obligation, Series 2006B 6.25% $345,000
Plus bond premium 73,178
Combination Tax and Revenue 2.25%- 10/01/28 $340,000 to 10,820,000 10,480,000
Certificates of Obligation,Series 2009 4.75% $780,000
Combination Tax and Revenue 5.60% 02/01/25 $165,000 to 3,930,000 3,930,000
Certificates of Obligation,Series 2010 $375,000
Combination Tax and Revenue 2.00%- 8/01/18 $170,000 to 9,830,000 9,660,000
Refunding Bonds,Series 2010 4.00% $3,600,000
Plus bond premium 660.710
Total Combination Tax and Revenue Bonds 63.663.435
51
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2010
Note 13 - LONG-TERM LIABILITIES (CONTD.)
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Pavments Authorized at 9/30/10
Revenue Bonds:
Water and Sewer Revenue Bonds:
Water&Sewer System Priority 4.05%- 8/01/11 $180,000 to 5,500,000 295,000
Lien Revenue Bonds, Series 1998E 4.65% $295,000
Water&Sewer System Priority 3.75%- 8/01/12 $1,220,000 to 118,770,000 3,160,000
Lien Revenue Bonds,Series 2001 5.375% $1,665,000
Plus bond premium 887,005
Water&Sewer Subordinate Lien 3.14%- 8/01/11 $25,000 8,060,000 25,000
Revenue Bonds,Series 1998 4.59%
Water&Sewer System Priority 4.00%- 8/01/27 $225,000 to 103,495,000 102,800,000
Lien Refunding Revenue Bonds, 4.50% $11,070,000
Series 2007
Plus bond premium 334.739
Total Revenue Bonds 107.501.744
Total All Bonds $175 955 179
All of the General Obligation Bonds were issued on the full faith and credit of the City and are
secured by ad valorem taxes levied against all taxable property. These bonds are serviced by the
Debt Service Fund with an apportionment of the ad valorem tax levy. At September 30, 2010,
$313,439 was available in this fund to service these bonds.
The Combination Tax and Revenue Bonds are secured by ad valorem taxes levied against all
taxable property as well as a pledge of surplus net revenues of the City's combined waterworks and
sewer system. The Series 2003 and 2010 Certificates will be serviced by the Debt Service Fund by
contributions from the Wichita Falls 4B Economic Development Corporation. The Series 2004 and
the Series 2005 Certificates will be serviced by the net revenues of the Water and Sewer Fund, as
well as the Series 2010 Combination Tax and Revenue Refunding Certificates.
All of the Water and Sewer Revenue Bonds were issued for purposes of improving the City's water
and sewer systems and are serviced by the net revenues of the Water and Sewer Fund.
52
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2010
Note 13 - LONG-TERM LIABILITIES (CONTD.)
Notes Pavable
The City of Wichita Falls and Wichita County Water Improvement District Number 2, upon the
completion of the Lake Kemp reconstruction project in January 1976 by the U.S. Government, are
required to reimburse the U.S. Government 22.7% of its reported total cost of $8,774,705, or
$1,991,858. The City's share of this amount is 66.11%, or $1,316,817, payable in forty-nine
annual installments through January 2025 of $51,974, which includes interest at the rate of
3.253%.
The City's share of the total costs ($5,800,957) as well as the U.S. Government funded portion
($4,484,140) is reflected as capital assets in the Water and Sewer Enterprise Fund.
This contractual arrangement is strictly a cost-sharing agreement and is not considered a joint
venture as defined in Section J50 of the Codification of Governmental Accounting and Financial
Reporting Standards. The remaining debt payable to the U.S. Government at September 30,
2010 is classified as follows:
Long-term $577,079
Current portion 32,155
Total $609,234
Capital Lease Pavable
The City issued a capital lease on March 30, 2010 for the purchase of a fire ladder truck in the
amount of $916,548 which is the total amount of the City's assets acquired under capital lease.
This asset is listed under "Motor Vehicles" in the business-type activities. The lease carries an
interest rate of 2.94% and is due in five annual installments of $194,084, with final payment due
on March 30, 2013. The capital lease is recorded in the Fleet Maintenance Internal Service Fund
and is included in the business-type activities of the government-wide statements.
53
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 13 - LONG-TERM LIABILITIES(CONTD.)
Aggregate maturities of the long-term debt(principal and interest)for the years subsequent to September 30, 2010 are as follows:
Combination Tax and
Year Ending General Obliaation Bonds Revenue Bonds Revenue Bonds Notes Pavable CaOital Lease Pavable Total
September 30. Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2011 $ 340,000 $ 241,987 $ 5,589,517 $ 2,542,239 $ 2,223,966 $ 4,594,538 $ 32,155 $ 19,818 $177,925 $16,159 $ 8,363,563 $ 7,414,741
2012 355,000 227,112 6,064,359 2,259,045 1,982,897 4,502,178 33,201 18,772 183,156 10,928 8,618,613 7,018,035
2013 370,000 210,694 4,961,732 2,046,508 3,431,663 4,412,262 34,281 17,692 188,540 5,543 8,986,216 6,692,699
2014 385,000 193,581 5,017,477 1,874,260 3,563,431 4,282,494 35,397 16,577 - - 9,001,305 6,366,912
2015 405,000 175,775 5,191,817 1,696,068 3,709,980 4,138,895 36,548 15,426 9,343,345 6,026,164
2016-2020 2,380,000 532,813 20,859,790 5,679,049 28,847,647 18,167,066 201.366 58,502 52,288,803 24,437,430
0 A. 2021-2025 555,000 28,444 11,494,911 2,694,570 48,837,130 9,865,594 236,286 23,548 61,123,327 12,612,156
2026-2029 4.483.832 361.567 14.905.030 821.470 19.388.862 1.183.037
Totals $4 !1 $1.610.406 $63663435 $19.153.306 $107,501,744 $50,784.497 $6D3234 liza $ 6 $32 $177114034 $71.751174
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 14 - DEFEASED DEBT
Current Year
On May 1, 2010, the City issued combination tax and revenue refunding bonds of$9,830,000 (par
value) with interest rates ranging from 2.00% to 4.00%. The debt was issued to refund revenue
bonds with rates ranging from 3.14% to 4.63% and a par value of $10,195,000. The revenue
bonds to be refunded matured through August 1, 2018.
As a result of the refunding, the City reduced its total debt service requirements by $1,112,819,
resulting in an economic gain (difference between the present value of the debt service payments
on the old and new debt) of$986,206.
Prior Year
In prior years, the City defeased certain outstanding 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, 2010, $103,085,000 of the 2001
Water and Sewer System Priority Lien Revenue Bonds are considered defeased.
Note 15 - LANDFILL AND TRANSFER STATION CLOSURE AND POSTCLOSURE CARE COSTS
State and federal laws and regulations require that the City place a final cover on its landfill when
closed, and perform certain maintenance and monitoring functions at the landfill site for thirty
years after closure. In accordance with the Texas Administrative Code, Title 30, Part 1, Chapter 7,
the City annually submits a financial assurance letter to the Texas Commission on Environmental
Quality (TCEQ). In addition to operating expenses related to current activities of the landfill, an
expense provision and related liability are being recognized based on the future closure and
postclosure care costs that will be incurred near or after the date the landfill no longer accepts
waste. The recognition of these landfill closure and postclosure care costs is based on the amount
of the landfill used during the year. The estimated liability for landfill closure and postclosure care
costs has a balance of $3,432,700 as of September 30, 2010, which is based on 15% usage of
the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of
$16,374,791 as the remaining estimated capacity is filled. The landfill is expected to be filled to
capacity in 2153. Actual costs may be higher due to inflation, change in technology, or changes in
regulations.
Note 16 - INTERFUND BALANCES
Balances due to and due from other funds at September 30, 2010 consisted of the following:
Due To Fund Due From Fund Amount Purpose
General Fund Nonmajor Governmental Funds $2,864,664 Short-term loan
General Fund Water and Sewer Fund 50,455 Short-term loan
General Fund Nonmajor Enterprise Funds 264,178 Short-term loan
Total $3,179,297
All amounts due are scheduled to be repaid within one year.
55
I
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 16 - INTERFUND BALANCES (CONTD.)
Transfers to and from other funds during the year ended September 30, 2010 were as follows.-
Transfers From Transfers To Amount Reason
General Fund Nonmajor Governmental Funds $ 275,603 Supplement operating deficits
General Fund Nonmajor Enterprise Funds 85,132 Supplement operating grants
General Fund Nonmajor Governmental Funds 16,649 Supplement operating grants
General Fund Internal Service Fund 69,960 Purchase capital assets
General Fund Water and Sewer Fund 211,907 Supplement operating deficits
Nonmajor Governmental Funds Nonmajor Governmental Funds 391,925 Fund debt service payment
Nonmajor Governmental Funds Nonmajor Governmental Funds 1,367,776 Fund operating deficits
Nonmajor Governmental Funds Nonmajor Enterprise Funds 8,342,221 Purchase capital assets
Nonmajor Governmental Funds Internal Service Funds 1,486,768 Purchase capital assets
Nonmajor Governmental Funds Water and Sewer Fund 231,854 Fund construction projects
Nonmajor Governmental Funds Nonmajor Enterprise Funds 3,573,890 Fund construction projects
Water and Sewer Fund General Fund 826,071 Administrative overhead
Water and Sewer Fund Nonmajor Governmental Funds 500,000 Fund debt service payment
Sanitation Fund General Fund 1,201,981 Administrative overhead
Sanitation Fund General Fund 130,138 Supplement other sources
Sanitation Fund Internal Service Funds 1,179,034 Purchase capital assets
Nonmajor Enterprise Funds Nonmajor Governmental Funds 205,200 Supplement operating grant
Nonmajor Enterprise Funds Nonmajor Governmental Funds 449,553 Fund debt service payment
Internal Service Funds General Fund 312,000 Administrative overhead
Nonmajor Enterprise Funds Internal Service Fund 1,338,936 Purchase capital assets
Total $22 196 598
Note 17 - COMMITMENTS AND CONTINGENCIES
Litiqation
The City is a defendant in numerous lawsuits. In the opinion of the City's management, any
liabilities resulting from such suits 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
proprietary funds was $6,820,669 at September 30, 2010. This accrual is recorded as a long-term
liability in the Government-wide Statement of Net Assets.
56
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2010
Note 17 - COMMITMENTS AND CONTINGENCIES (CONTD.)
Contract Commitment With West Texas Utilities Comoanv
In 1977, the City and Wichita County Water Improvement District Number 2 entered into a sixty-
year contract with the West Texas Utilities Company (the Company) and agreed to provide an
adequate water supply for the Company's use in generating power upon completion of the
Company's construction of a power plant adjacent to the Lake Kemp-Lake Diversion System.
The significant terms of the contract provide for standby charges to be paid to the City and the
Wichita County Water Improvement District Number 2 in equal amounts. Minimum charges for
the calendar year 1997 and all years thereafter until the end of contract will be$500,000 per year.
For water actually consumed, the Company shall pay the City and Wichita County Water
Improvement District Number 2 equally, at the base rate of$0.23 per one thousand gallons, which
is adjusted annually. The rate for the year ended September 30, 2010 was $.404046 per one
thousand gallons.
This contract can be terminated at any time by the Company. If the contract is terminated, the
Company is required to make a maximum termination payment equal to the minimum charges
which would have become due and payable during the following twenty-four month period.
Contract Commitments
At September 30, 2010, the City was committed to various contracts. The amounts for which the
various funds are committed to complete these contracts are as follows:
General Fund $ 863,887
Nonmajor Governmental Funds 3,796,216
Water and Sewer Fund 18,090,250
Sanitation Fund 131,867
Nonmajor Enterprise Funds 484,336
Total contract commitments $23.366.556
Federal and State Grants -ComOiance Audits
The City participates in numerous Federal and State grants, on both a direct and state pass-
through basis, as well as on a service-provider basis. Principal among these are Community
Development Block Grants, Section 8 Housing Assistance, Home Investment Partnership
Agreement Program, and numerous health-related grants.
In connection with these grants, the City is required to comply with specific terms and agreements
as well as applicable Federal and State laws and regulations. Such compliance is subject to
review and audit by the grantors and their representatives.
In the opinion of management, the City has complied with all requirements. However, since such
programs are subject to future audit or review, the possibility of disallowed expenditures exists. In
the event of any disallowance of claimed expenditures, the City expects the resulting liability to be
immaterial.
57
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30, 2010
Note 18 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED
COMPONENT UNITS
The City has four component units that are discretely presented in the City's basic financial
statements. Condensed financial information for the year ended September 30, 2010 is as follows:
Wichita Falls Wichita Falls
Economic 4B Sales Wichita Falls Wichita Falls
Development Tax Reinvestment Reinvestment
Corporation Corporation Zone#2 Zone#3 Totals
Condensed statement of net assets:
Cash, investments and other
current assets $16,086,495 $3,217,987 $ - $35,540 $19,340,022
Capital assets,net of accumulated
depreciation 2,340,841 - - - 2.340.841
Total assets 18,427,336 3.217.987 35,540 21,680,863
Accounts payable and other
current liabilities 371,592 123 371,715
Total liabilities 371,592 123 371,715
Net assets $18,055 744 $3 217 864 LU-540 $21 309 148
Condensed statement of activities:
Expenses:
Community development $11,858,386 $5.774,134 $255,002 $— $17,887,522
Program revenues:
Charges for services 106,800 - - - 106,800
Operating grants and contributions - 255.002 - 255.002
Total program revenues 106,800 255.002 - - 361.802
Net program expense ( 11.751.586) ( 5.519,132) 255,002) - ( 17.525.720)
General revenues:
Tax revenues 3,338,970 3,338,970 254,775 35,527 6,968,242
Non-tax general revenues 40,058 9,302 227 13 49.600
Total general revenues and
transfers 3,379,028 3,348,272 255,002 35,540 7.017,842
Change in net assets ( 8,372,558) ( 2,170,860) - 35,540 ( 10,507,878)
Beginning net assets 26,428.302 5,388,724 - - 31,817,026
Ending net assets $18,055,744 $3,217.864 $35,540 $21 309 148
58
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Required Supplemental Information
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EXHIBIT B-1
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 53,195,147 $ 53,195,147 $ 52,559,745 $ (635,402)
Charges for services 3,026,202 3,026,202 2,943,374 (82,828)
Licenses and permits 2,009,178 2,009,178 1,990,328 (18,850)
Fines and forfeitures 1,808,944 1,808,944 2,039,579 230,635
Intergovernmental revenue 44,250 44,250 52,562 8,312
Contributions - - 334,318 334,318
Miscellaneous revenue 1,137,057 1,137,057 1,060,207 (76,850)
Total revenues 61,220,778 61,220,778 60,980,113 (240,665)
Expenditures:
Current:
Administrative services 9,472,167 9,193,875 8,305,644 888,231
Police 19,762,880 19,894,650 19,707,870 186,780
Fire 12,644,227 12,671,860 12,521,561 150,299
Parks and recreation 4,881,330 4,952,939 4,711,638 241,301
Accounting/finance 2,393,494 2,489,481 2,279,241 210,240
Community development 1,732,144 1,839,918 1,717,794 122,124
Public works 5,208,948 5,239,316 5,236,069 3,247
Health 3,077,388 3,071,288 2,809,281 262,007
Traffic and transportation 2,171,220 2,191,195 2,083,383 107,812
Capital outlay 2,527,472 3,314,628 2,273,379 1,041,249
Total expenditures 63,871,270 64,859,150 61,645,860 3,213,290
Excess of revenues over(under) expenditures (2,650,492) (3,638,372) (665,747) 2,972,625
Other financing sources(uses):
Transfers in 2,470,190 2,470,190 2,470,190 -
Transfers out (313,029) (878,638) (659,251) 219,387
Total other financing sources(uses) 2,157,161 1,591,552 1,810,939 219,387
Excess of revenues and other sources
over(under)expenditures and other uses (493,331) (2,046,820) 1,145,192 3,192,012
Fund balance-beginning 14,541,656 14,541,656 14,541,656 -
Fund balance-ending $ 14,048,325 $ 12,494,836 $ 15,686,848 $ 3,192,012
59
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2010
Demonstrating compliance with the adopted budget is an important component of a government's
accountability to the public. Many citizens participate in the process of establishing the annual operating
budgets of state and local governments, and have a keen interest in following the actual financial
progress of their governments over the course of the year. The City and many other governments revise
their original budgets over the course of the year for a variety of reasons. Under the new reporting model,
governments will continue to provide budgetary comparison information in their annual reports. An
important change, however, is a requirement to add the government's original budget to the current
comparison of final budget and actual results.
The City adheres to the following procedures in establishing the operating budget reflected in the basic
financial statements:
On or before August 15 of each year, the City Manager submits to the City Council a proposed budget for
the fiscal year beginning the following October 1. The operating budget includes proposed expenditures
and the means of financing them. Public hearings are conducted. The budget is legally enacted by the
City Council through passage of appropriation and tax levying ordinances prior to September 30 and is
published under a separate cover.
An annual budget, including debt service requirements, is legally adopted for the General Fund, the
Community Development Block Grant Fund, the Section 8 Housing Fund, the HOME Investment
Partnership Agreement Fund, the Hotel/Motel Tax Fund, the Golf Fund, the MPEC Fund and the Debt
Service Fund, on a basis which is consistent with generally accepted accounting principles.
The City Council must approve any transfer of appropriation balances or portions thereof from one
department to another. The City Manager has the authority, without City Council approval, to transfer
appropriation balances from one expenditure account to another within a single department of the City.
Supplemental appropriations of $987,880 were approved by the City Council. The reported budgetary
data includes amendments made during the year.
At the close of each fiscal year, any unencumbered appropriated balance lapses to the unreserved fund
balance. The unencumbered appropriation balances in the Capital Projects Funds do not lapse at year
end.
60
EXHIBIT B-2
CITY OF WICHITA FALLS, TEXAS
TEXAS MUNICIPAL RETIREMENT SYSTEM -ANALYSIS OF FUNDING PROGRESS -
LAST TEN PLAN YEARS (UNAUDITED)'
(1) (2) (3) (4) (5) (6)
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of
Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll
Date of Assets Liability(AAL) (1) _ (2) (2)-(1) Payroll (4) _ (5)
12/31/00 $ 62,462,023 $ 82,680,887 75.5% $ 20,218,864 $ 27,754,660 72.8%
12/31/01 66,919,614 88,721,318 75.4% 21,801,704 29,061,189 75.0%
12/31/02 69,770,838 93,176,395 74.9% 23,405,557 31,065,101 75.3%
12/31/03 72,469,506 98,017,025 73.9% 25,547,519 31,516,130 81.1%
12/31/04 70,462,244 98,405,860 71.6% 27,943,616 33,522,283 83.4%
12/31/05 71,393,893 101,093,789 70.6% 29,699,896 32,846,479 90.4%
12/31/06 69,201,457 100,991,795 68.5% 31,790,338 33,791,762 94.1%
12/31/07 (1) 70,561,545 120,374,701 58.6% 49,813,156 35,873,970 138.9%
12/31/08 68,910,226 122,001,202 56.5% 53,090,976 38,272,312 138.7%
12/31/09 71,505,945 125,325,301 57.1% 53,819,356 39,020,039 137.9%
Analysis of the dollar amounts of the actuarial value of assets, actuarial accrued liability, and unfunded actuarial
accrued liability in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the
actuarial accrued liability provides one indication of the City's funding status on a going-concern basis. Analysis
of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally,
the greater this percentage, the stronger the pension plan. Trends in unfunded actuarial accrued liability and
annual covered payroll are both affected by inflation. Expressing the unfunded actuarial accrued liability as a
percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the
City's progress made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this
percentage, the stronger the pension plan.
' This City 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 plan.
(1) TMRS made changes to both the actuarial funding method and actuarial assumptions for the 2007 valuation.
61
EXHIBIT B-3
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND -
ANALYSIS OF FUNDING PROGRESS (UNAUDITED)
(1) (2) (3) (4) (5) (6)
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of
Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll
Date of Assets Liability(AAL) (1) = (2) (2) - (1) Payroll (4) _ (5)
12/31/00 $ 26,930,018 $ 31,419,892 85.7% $ 4,489,874 $ 5,858,962 76.6%
12/31/01 (a) - - - - - -
12/31/02(b) 27,439,565 37,003,896 74.2% 9,564,331 6,609,807 144.7%
12/31/03(a) - - - - - -
12/31/04(b) 32,240,524 42,178,490 76.4% 9,937,966 7,175,196 138.5%
12/31/05(a) - - - - - -
12/31/06(b) 35,584,639 47,582,190 74.8% 11,997,551 7,697,370 155.9%
12/31/07(a) - - - - - -
12/31/08(b) 39,358,309 54,260,301 72.5% 14,901,992 8,915,419 167.1%
12/31/09(a) - - - - - -
Analysis of the dollar amounts of the actuarial value of assets,actuarial accrued liability, and unfunded actuarial accrued liability
in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability provides
one indication of the City's funding status on a going-concern basis. Analysis of this percentage over time indicates whether the
system is becoming financially stronger or weaker. Generally,the greater this percentage,the stronger the pension plan. Trends
in unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial
accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of
the City's progress made in accumulating sufficient assets to pay benefits when due. Generally,the smaller the percentage,the
stronger the pension plan.
(a) Historical trend information is presented for as many years as such information about the plan is available. No actuarial
valuation or update was performed as of these dates. Texas state law does not require an actuarial valuation to be
completed annually.
(b) For the 2002,2004,2006 and 2008 valuations, retirement was assumed to occur once a member both attained age 57 and
completed 20 years of service. In prior years, retirement was assumed to occur at age 55 and 20 years of service. There
were no changes made in actuarial methods.
62
EXHIBIT B4
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS RETIREE HEALTH CARE PLAN -
ANALYSIS OF FUNDING PROGRESS(UNAUDITED)
(1) (2) (3) (4) (5) (6)
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of
Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll
Date of Assets Liability(AAL) (1) + (2) (2) - (1) Payroll (4) _ (5)
12/31/06(a) $ - $ 29,656,852 0.0% $ 29,656,852 N/A N/A
12/31/07(b) - - - - - -
12/31/08 - 32,143,378 0.0% 32,143,378 N/A N/A
12/31/09(b) - - - - -
Analysis of the dollar amounts of the actuarial value of assets,actuarial accrued liability,and unfunded actuarial accrued liability
in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability provides
one indication of the City's funding status on a going-concern basis. Analysis of this percentage over time indicates whether the
system is becoming financially stronger or weaker. Generally,the greater this percentage,the stronger the plan. Trends in
unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial
accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of
the City's progress made in accumulating sufficient assets to pay benefits when due. Generally,the smaller the percentage,the
stronger the plan.
(a) The first actuarial valuation was performed as of December 31,2006 as the City began to prepare for the implementation
of GASB 45.
(b) Historical trend information is presented for as many years as such information about the plan is available. No actuarial
valuation or update was performed as of these dates. Texas state law does not require an actuarial valuation to be
completed annually.
63
Combining Financial Statements
ic.
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T E X A S
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Nonmajor Governmental Funds
Special Revenue Funds
The special revenue funds are used to account for the proceeds from specific revenue sources
(other than for major capital projects or proprietary funds) that are legally restricted to be
expended for specified purposes.
Community Development Block Grant Fund
The Community Development Block Grant Fund accounts for federal block grant revenues
and related expenditures.
Section 8 Housina Fund
The Section 8 Housing Fund accounts for federal funds received to subsidize rents and
housing payments for lower income families within the City.
Home Investment Partnership Aqreement Fund
The Home Investment Partnership Agreement Fund accounts for federal funds received to
provide home ownership opportunities to low income, first-time homebuyers through the
acquisition, rehabilitation and resale of single-family dwellings that are currently owned by
governmental agencies.
Hotel/Motel Tax Fund
The Hotel/Motel Tax Fund accounts for revenues derived from an occupancy tax which is
expended on programs promoting the growth of the City of Wichita Falls.
Airport Improvement Grant Fund
The Airport Improvement Fund accounts for federal funds received to make capital
improvements to the Kickapoo Downtown Airport. This fund is not required to have a legally
adopted budget; therefore no budgetary comparison schedule is presented.
Golf Fund
The Golf Fund accounts for the activities at the Weeks Park Golf Course.
MPEC Fund
The MPEC Fund is used to account for the operations of the City's Multi-Purpose Events
Center.
Miscellaneous Special Revenue Fund
The Miscellaneous Special Revenue Fund accounts for various revenues generated in the
form of contributions, fees, concessions, rents and other charges and their related
expenditures. This fund also includes revenues derived from various grants for health and
police programs. The revenues in this fund are expended to support the activity generating
the revenue or as designated by the contributor. This fund is not required to have a legally
adopted budget; therefore no budgetary comparison schedule is presented.
Debt Service Funds
Debt Service Fund
The Debt Service Fund is established by ordinances authorizing the issuance of general
obligation bonds to provide for the payment of bond principal and interest. An ad valorem tax
rate and tax levy are required to be computed and levied which will be sufficient to produce
the funds required to pay principal and interest as they come due. This fund is also used to
provide for the payment of paying agent fees.
Excess Sales Tax Fund
The Excess Sales Tax Fund is used to account for and administer the excess sales tax
collected related to the property reduction tax. This fund is not required to have a legally
adopted budget; therefore no budgetary comparison schedule is presented.
Capital Projects Funds
The capital projects funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities, other than those financed by federal grants or
proprietary funds.
4B Sales Tax Proiects
This fund was established to account for projects financed by the Wichita Falls 4B Sales Tax
Corporation. Significant projects accounted for in this fund included the construction of three
fire stations and the renovation of the second floor of the Wichita Falls Public Library building
for recreational purposes.
2006-A Bond Fund
This fund was established to account for projects financed by the Combination Tax and
Revenue Certificates of Obligation, Series 2006A. These funds will be used for street and
drainage improvements, a police firing range, the construction of a new fire station, four
softball fields, and a skate park.
Miscellaneous Capital Proiects Funds
This fund is an accumulation of several projects that have been undertaken over the years
including library renovations, street improvements and drainage improvements.
Permanent Fund
The permanent fund is used to account for principal trust amounts received and related interest
income. The interest earnings of this fund may be used for maintenance of the City's cemeteries.
CITY OF WICHITA FALLS, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30,2010
Special Revenue
Home
Community Investment Hotel/ Airport
Development Section 8 Partnership Motel Improvement Golf
Block Grant Housing Agreement Tax Grant Fund
ASSETS
Cash and cash equivalents $ 50 $ 2,535,661 $ 189,801 $ 26,251 $ $ 48,558
Receivables:
Taxes and assessments - - - 190,275 -
Government agencies 1,519,759 - 432,134 - 2,211,159
Other - 10,224 - _
Inventory _ _ _
Prepaid items 230.000 2,493
Other assets - _ _ _
Total assets $ 1,519,809 $ 2,545,885 $ 621,935 $ 216,526 $ 2,441,159 $ 51,051
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable-trade $ 28,560 $ 651 $ 10,991 $ - $ 1,416,814 $ 72,692
Accrued payroll 10,967 14,767 2,340 - - _
Payable to other City funds 275,314 - - 157,118 850,053
Payable to government agencies - 84,432 - - -
Other liabilities (164) 44,744 203,065 (53,422)
Deferred revenue - _ _ _ _
Total liabilities 314,841 99,686 58,075 157,118 2,469,932 19,270
Fund balance:
Reserved for encumbrances 500,692 - - - _ _
Reserved for debt service -
Reserved for perpetual care - _ _
Reserved for federal grant programs 704,276 2,446,199 563,860
Reserved for capital projects - _ _ _ _
Unreserved:
Designated for subsequent
years expenditures 59,408 31,781
Undesignated - _ _ _ (28,773) -
Total fund balance 1,204,968 2,446,199 563,860 59,408 (28,773) 31,781
Total liabilities and fund balance $ 1,519,809 $ 2,545,885 $ 621,935 $ 216,526 $ 2,441,159 $ 51,051
64
EXHIBIT C-1
Permanent
Debt Service Capital Projects Fund
Total
Miscellaneous Miscellaneous Nonmajor
MPEC Special Debt Excess 4B Sales 2006-A Capital Perpetual Governmental
Fund Revenue Service Sales Tax Tax Projects Bond Fund Projects Care Funds
$ 914,309 $ 1,866,406 $ - $ 397,767 $ 1,855,683 $ 1,382,901 $ 5,458,789 $ 928,120 $ 15,604,296
- - 71,818 - - - - - 262.093
- 1,006,552 11,187 5,180,791
45,786 818 - 56,828
74,360 - - 74,360
18,522 - 605,797 856,812
44,503 3,000 - - - - - - 47,503
$ 1,097,480 $ 2,876,776 $ 688,802 $ 397,767 $ 1,855,683 $ 1,382,901 $ 5,458,789 $ 928,120 $ 22,082,683
$ 111,264 $ 78,064 $ - $ - $ 40,031 $ 3,812 $ 669,829 $ 7,653 $ 2,440,361
83,315 105,698 - - - - - 217,087
- 1,039,581 258,611 279,913 4,074 2,864,664
6,502 2,302 - - - - 93,236
191,348 309,804 36,906 207,284 92,965 1,032,530
- 37,236 79,846 - - - - 117,082
392,429 1,572,685 375,363 319,944 211,096 766,868 7,653 6,764,960
- 358,390 - - - 346,974 1,936,818 - 3,142,874
- 313,439 397,767 - - - 711,206
- - 920,467 920,467
- - - 3,714,335
- - - 824,831 2,440,036 3,264,867
705,051 945,701 1,535,739 - 315.067 3,592,747
- - - - - - - - (28,773)
705,051 1,304,091 313,439 397,767 1,535,739 1,171,805 4,691,921 920,467 15,317,723
$ 1,097,480 $ 2,876,776 $ 688,802 $ 397,767 $ 1,855,683 $ 1,382,901 $ 5,458,789 $ 928,120 $ 22,082,683
CITY OF WICHITA FALLS TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2010
Special Revenue
Home
Community Investment Hotel/ Airport
Development Section 8 Partnership Motel Improvement Golf
Block Grant Housing Agreement Tax Grant Fund
Revenues:
Taxes $ - $ $ $ 1,513,484 $ $
Charges for services 19,824 - 422,205
Fines and forfeitures _
Intergovernmental revenue 1,400,527 3,768,848 555,120 4,189,830
Contributions _ _ _
Miscellaneous revenue - 10,380 36,485 - - 228,148
Total revenues 1,420,351 3,779,228 591,605 1,513,484 4,189,830 650,353
Expenditures:
Current:
Administrative services 149,308 - - 86,300 - 897,596
Police - _
Fire _
Parks and recreation 18,311 - -
Community development 999,707 3,588,001 480,664
Public works 100,000 - -
Health _
Traffic and transportation 12,209
Multi-Purpose Events Center - - _
Capital outlay - 1,300
Debt service:
Principal retirement - _
Interest and paying agent fees - - _ _ _ _
Total expenditures 1,267,326 3,589,301 480,664 86,300 12,209 897,596
Excess of revenues over
(under)expenditures 153,025 189,927 110,941 1,427,164 4,177,621 (247,243)
Other financing sources(uses):
Bond proceeds - - _ _ _ _
Transfers in 205,200 247,243
Transfers out (1,367,776) (4,467,721) -
Total other financing sources(uses) (1,367,776) (4,262,521) 247,243
Net change in fund balance 153,025 189,927 110,941 59,408 (84,900) -
Fund balance-beginning 1,051,943 2,256,272 452,919 - 56,127 31,781
Fund balance-ending $ 1,204,968 $2,446,199 $ 563,860 $ 59,408 $ (28,773) $ 31,781
65
EXHIBIT C-2
Permanent
Debt Service Capital Projects Fund
Total
Miscellaneous Miscellaneous Nonmajor
MPEC Special Debt Excess 4B Sales 2006-A Capital Perpetual Governmental
Fund Revenue Service Sales Tax Tax Projects Bond Fund Projects Care Funds
$ - $ - $ 933,672 $ $ $ $ $ $ 2,447,156
159,236 171,193 - 772,458
- 175,305 175,305
- 4,816,973 - 14,731,298
1,147,100 133,089 1,623,030 2,474,367 5,377,586
1,608,162 553,712 835 1,437 - 30,338 16,040 52,183 2,537,720
2,914,498 5,850,272 2,557,537 1,437 2,474,367 30,338 16,040 52,183 26,041,523
- 255,784 - - - - - - 1,388,988
404,237 38,276 31,785 474,298
12,839 137,357 - - 150,196
80,465 507,137 27,714 14,427 648,054
529,465 - - - - 5,597,837
15,576 3,940 - 119.516
2,077,980 - 9,580 2,087,560
- 149,446 - - 161,655
3,358,470 - - - 3,358,470
206,517 391,351 - 1,598,969 4,286,905 6,485,042
- - 2,240,000 - - 2,240,000
- - 1,781,176 - - - - 1,781,176
3,564,987 3,917,143 4,021,176 - 2,281,739 3,940 4,355,984 14,427 24,492,792
(650,489) 1,933,129 (1,463,639) 1,437 192,628 26,398 (4,339,944) 37,756 1,548,731
- - - - - - 3,930,000 - 3,930,000
1,387,623 25,162 1,341,478 - 3,206,706
- (1,712,467) - (391,925) (2,609,033) (4,845,512) (15,394,434)
1,387,623 (1,687,305) 1,341,478 (391,925) - (2,609,033) (915,512) - (8,257,728)
737,134 245,824 (122,161) (390,488) 192,628 (2,582,635) (5,255,456) 37,756 (6,708,997)
(32,083) 1,058,267 435,600 788,255 1,343,111 3,754,440 9,947,377 882,711 22,026,720
$ 705,051 $ 1,304,091 $ 313,439 $ 397,767 $ 1,535,739 $ 1,171,805 $ 4,691,921 $ 920,467 $ 15,317,723
EXHIBIT C-3
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -COMMUNITY DEVELOPMENT BLOCK GRANT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ - $ - $ 19,824 $ 19,824
Intergovernmental revenue 1,700,527 1,700,527 1,400,527 (300,000)
Total revenues 1,700,527 1,700,527 1,420,351 (280,176)
Expenditures:
Administrative services 149,308 149,308 149,308 -
Parks and recreation - 33,614 18,311 15,303
Community development 951,219 1,798,001 999,707 798,294
Public works 100,000 100,000 100,000 -
Capital outlay 500,000 500,000 - 500,000
Total expenditures 1,700,527 2,580,923 1,267,326 1,313,597
Excess of revenues over(under)expenditures - (880,396) 153,025 1,033,421
Fund balance-beginning 1,051,943 1,051,943 1,051,943 -
Fund balance-ending $ 1,051,943 $ 171,547 $ 1,204,968 $ 1,033,421
66
EXHIBIT C-4
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - SECTION 8 HOUSING FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 3,402,123 $ 3,768,848 $ 3,768,848 $ -
Miscellaneous revenue - - 10,380 10,380
Total revenues 3,402,123 3,768,848 3,779,228 10,380
Expenditures:
Community development 3,399,423 3,766,148 3,588,001 178,147
Capital outlay 2,700 2,700 1,300 1,400
Total expenditures 3,402,123 3,768,848 3,589,301 179,547
Excess of revenues over expenditures - - 189,927 189,927
Fund balance-beginning 2,256,272 2,256,272 2,256,272 -
Fund balance-ending $ 2,256,272 $ 2,256,272 $ 2,446,199 $ 189,927
67
EXHIBIT C-5
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -HOME INVESTMENT PARTNERSHIP AGREEMENT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 555,120 $ 555,120 $ 555,120 $ -
Miscellaneous revenue - - 36,485 36,485
Total revenues 555,120 555,120 591,605 36,485
Expenditures:
Community development 555,120 922,956 480,664 442,292
Total expenditures 555,120 922,956 480,664 442,292
Excess of revenues over(under)expenditures - (367,836) 110,941 478,777
Fund balance- beginning 452,919 452,919 452,919 -
Fund balance-ending $ 452,919 $ 85,083 $ 563,860 $ 478,777
68
EXHIBIT C-6
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - HOTEL/MOTEL TAX FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 1,440,000 $ 1,455,000 $ 1,513,484 $ 58,484
Total revenues 1,440,000 1,455,000 1,513,484 58,484
Expenditures:
Administrative services 86,500 86,500 86,300 200
Total expenditures 86,500 86,500 86,300 200
Excess of revenues over expenditures 1,353,500 1,368,500 1,427,184 58,684
Other financing sources (uses):
Transfers out (1,353,500) (1,374,025) (1,367,776) 6,249
Total other financing sources (uses) (1,353,500) (1,374,025) (1,367,776) 6,249
Excess of revenues and other sources
over(under)expenditures and other uses - (5,525) 59,408 64,933
Fund balance-beginning - - - -
Fund balance-ending $ - $ (5,525) $ 59,408 $ 64,933
69
EXHIBIT C-7
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -GOLF FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ 918,825 $ 818,825 $ 422,205 $ (396,620)
Miscellaneous revenue - - 228,148 228,148
Total revenues 918,825 818,825 650,353 (168,472)
Expenditures:
Administrative services 1,020,000 1,020,000 897,596 122,404
Total expenditures 1,020,000 1,020,000 897,596 122,404
Excess of revenues over(under)expenditures (101,175) (201,175) (247,243) (46,068)
Other financing sources(uses):
Transfers in 101,175 201,175 247,243 46,068
Total other financing sources(uses) 101,175 201,175 247,243 46,068
Excess of revenues and other sources
over(under)expenditures and other uses - - - -
Fund balance-beginning 31,781 31,781 31,781 -
Fund balance-ending $ 31,781 $ 31,781 $ 31,781 $ -
70
EXHIBIT C-8
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - MPEC FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ 225,010 $ 218,871 $ 159,236 $ (59,635)
Contributions - 1,147,100 1,147,100
Miscellaneous revenue 1,784,391 1,770,005 1,608,162 (161,843)
Total revenues 2,009,401 3,135,976 2,914,498 (221,478)
Expenditures:
MPEC 3,348,139 4,195,239 3,358,470 836,769
Capital outlay - 300,000 206,517 93,483
Total expenditures 3,348,139 4,495,239 3,564,987 930,252
Excess of revenues over(under) expenditures (1,338,738) (1,359,263) (650,489) 708,774
Other financing sources (uses):
Transfers in 1,338,738 1,359,263 1,387,623 28,360
Total other financing sources (uses) 1,338,738 1,359,263 1,387,623 28,360
Excess of revenues and other sources
over(under)expenditures and other uses - - 737,134 737,134
Fund balance- beginning (32,083) (32,083) (32,083) -
Fund balance-ending $ (32,083) $ (32,083) $ 705,051 $ 737,134
71
EXHIBIT C-9
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE- DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 931,369 $ 931,369 $ 933,672 $ 2,303
Contributions 1,623,030 1,623,030 1,623,030 -
Miscellaneous revenue - - 835 835
Total revenues 2,554,399 2,554,399 2,557,537 3,138
Expenditures:
Debt service-principal 2,240,000 2,240,000 2,240,000 -
Debt service-interest and paying agent fees 1,780,877 1,780,877 1,781,176 (299)
Total expenditures 4,020,877 4,020,877 4,021,176 (299)
Excess of revenues over(under)expenditures (1,466,478) (1,466,478) (1,463,639) 2,839
Other financing sources(uses):
Transfers in 1,341,478 1,341,478 1,341,478 -
Total other financing sources(uses) 1,341,478 1,341,478 1,341,478 -
Excess of revenues and other sources
over(under)expenditures and other uses (125,000) (125,000) (122,161) 2,839
Fund balance-beginning 435,600 435,600 435,600 -
Fund balance-ending $ 310,600 $ 310,600 $ 313,439 $ 2,839
72
Nonmajor Enterprise Funds
Nonmajor enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises. The intent of the governing body is that the cost
of providing the service to the general public on a continuing basis be recovered primarily through
user charges.
Municipal Airport Fund
The Municipal 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.
Kickapoo Airport Fund
During the year ended September 30, 2000, the City acquired Kickapoo Downtown Airport, a
private airport. The Kickapoo Airport Fund was established to account for the operating
revenues and expenses of the airport.
Transit Fund
The Transit Fund accounts for the operation of the Wichita Falls transit system. This system
is supported from passenger fees, subsidies from the General Fund and subsidies from the
Federal Transit Administration.
Stormwater Drainage Fund
The Stormwater Drainage Fund was established to account for operating revenues and
expenses associated with the Storm Water Drainage Utility System (System). The System
was established effective May 1, 2001 and provides a funding mechanism for drainage
improvements in the City.
Waterpark Fund
The Waterpark Fund was established to account for the operating revenues and expenses of
the Castaway Cove Waterpark. The waterpark was purchased on February 4, 2010.
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2010
Municipal Kickapoo
Airport Airport
ASSETS
Current assets:
Cash and cash equivalents $ 653,548 $ 135,177
Restricted cash and cash equivalents 161,384 -
Receivables (net of allowance for
uncollectible accounts):
Customer and trade _ _
Government agencies _ _
Other 23,807 26,026
Inventory - 35,145
Prepaid items 3,835 2,557
Total current assets 842,574 198,905
Capital assets, net of accumulated depreciation 6,025,274 8,985,257
Total assets 6,867,848 9,184,162
LIABILITIES
Current liabilities payable from current assets:
Accounts payable-trade 39,271 4,277
Accrued payroll 5,709 9,173
Accrued vacation and sick leave 1,284 8,797
Payable to other City funds _ -
Payable to government agencies 14,010 52
Other liabilities - 507
Total current liabilities payable
from current assets 60,274 22,806
Net assets:
Invested in capital assets 6,025,274 8,985,257
Unrestricted 782,300 176,099
Total net assets $ 6,807,574 $ 9,161,356
73
EXHIBIT D-1
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Waterpark Funds
$ - $ 2,873,641 $ 240,848 $ 3,903,214
- - 161,384
- 134,882 - 134,882
316,707 - - 316,707
- - - 49,833
- - 35,145
- - - 6,392
316,707 3,008,523 240,848 4,607,557
574,866 13,684,261 3,691,347 32,961,005
891,573 16,692,784 3,932,195 37,568,562
14,606 203,505 - 261,659
41,650 5,970 6,274 68,776
16,878 1,981 2,334 31,274
264,178 - - 264,178
- - 2,505 16,567
620 24,979 16,448 42,554
337,932 236,435 27,561 685,008
574,866 13,684,261 3,691,347 32,961,005
(21,225) 2,772,088 213,287 3,922,549
$ 553,641 $ 16,456,349 $ 3,904,634 $ 36,883,554
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Municipal Kickapoo
Airport Airport
Operating revenues:
Charges for services $ - $ -
Rents, concessions and other 624,298 798,034
Total operating revenues 624,298 798,034
Operating expenses:
Personnel services 94,057 215,436
Supplies and materials 1,712 450,511
Maintenance and repairs 34,309 4,471
Utilities and other services 92,783 91,979
Insurance and contract support 10,575 15,598
Other expenses 85,933 39,301
Depreciation and amortization 68,003 322,171
Total operating expenses 387,372 1,139,467
Operating income(loss) 236,926 (341,433)
Nonoperating revenues(expenses):
Interest income 1,427 252
Loss on sale of capital assets - -
Intergovernmental operating grants - -
Total nonoperating revenues (expenses) 1,427 252
Income (loss) before contributions and transfers 238,353 (341,181)
Capital contributions 112,402 -
Transfers in 4,465,537 2,184
Transfers out (205,200) -
Net transfers 4,372,739 2,184
Net income (loss) 4,611,092 (338,997)
Net assets-beginning 2,196,482 9,500,353
Net assets-ending $ 6,807,574 $ 9,161,356
74
EXHIBIT D-2
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Waterpark Funds
$ 271,293 $ 1,272,430 $ 946,804 $ 2,490,527
3,284 - 337,115 1,762,731
274,577 1,272,430 1,283,919 4,253,258
861,993 98,308 408,948 1,678,742
269,866 1,196 196,754 920,039
238,989 24,570 37,812 340,151
59,962 411,177 344,087 999,988
70,836 110 47,234 144,353
47,124 129,449 35,797 337,604
29,992 121,069 183,153 724,388
1,578,762 785,879 1,253,785 5,145,265
(1,304,185) 486,551 30,134 (892,007)
6,553 - 8,232
(20,506) - - (20,506)
2,199,660 - - 2,199,660
2,179,154 6,553 - 2,187,386
874,969 493,104 30,134 1,295,379
- - - 112,402
85,132 3,573,890 3,874,500 12,001,243
(1,338,936) (449,553) - (1,993,689)
(1,253,804) 3,124,337 3,874,500 10,119,956
(378,835) 3,617,441 3,904,634 11,415,335
932,476 12,838,908 - 25,468,219
$ 553,641 $ 16,456,349 $ 3,904,634 $ 36,883,554
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Municipal Kickapoo
Airport Airport
Cash flows from operating activities:
Receipts from customers and users $ 628,708 $ 796,439
Payments to suppliers (221,023) (671,377)
Payments to employees (74,359) (155,102)
Net cash provided (used)by operating activities 333,326 (30,040)
Cash flows from noncapital financing activities:
Intergovernmental operating grants - -
Interfund loan received -
Transfers out to other funds (205,200) -
Transfers from other funds 4,465,537 2,184
Net cash provided by noncapital financing activities 4,260,337 2,184
Cash flows from capital and related
financing activities:
Capital contributions 112,402 -
Acquisition and construction of capital assets (4,594,782) (2,184)
Net cash used for capital and related
financing activities (4,482,380) (2,184)
Cash flows from investing activities:
Interest on investments 1,427 252
Net cash provided by investing activities 1,427 252
Net Increase(Decrease) in Cash and Cash Equivalents 112,710 (29,788)
Cash and Cash Equivalents- Beginning 702,222 164,965
Cash and Cash Equivalents-Ending $ 814,932 $ 135,177
75
EXHIBIT D-3
(Page 1 of 2)
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Waterpark Funds
$ 274,577 $ 1,261,262 $ 1,283,919 $ 4,244,905
(882,668) (402,622) (681,816) (2,859,506)
(659,049) (69,198) (361,255) (1,318,963)
(1,267,140) 789,442 240,848 66,436
1,965,303 - - 1,965,303
264,178 - - 264,178
(1,338,936) (449,553) - (1,993,689)
85,132 3,573,890 3,874,500 12,001,243
975,677 3,124,337 3,874,500 12,237,035
- - - 112,402
(8,868) (4,494,087) (3,874,500) (12,974,421)
(8,868) (4,494,087) (3,874,500) (12,862,019)
6,553 - 8,232
6,553 - 8,232
(300,331) (573,755) 240,848 (550,316)
300,331 3,447,396 - 4,614,914
$ - $ 2,873,641 $ 240,848 $ 4,064,598
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS (CONT-D.)
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Municipal Kickapoo
Airport Airport
Cash flows from operating activities:
Operating income(loss) $ 236,926 $ (341,433)
Adjustments to reconcile operating income (loss)
to net cash provided by(used in) operating
activities:
Depreciation and amortization 68,003 322,171
(Increase) decrease in current assets:
Receivables:
Customer and trade - -
Other 4,410 (1,595)
Inventory - 8,973
Prepaid items 974 (95)
Increase (decrease) in current liabilities:
Accounts payable-trade 28,399 (18,236)
Accrued payroll 1,895 (144)
Accrued vacation and sick leave (7,153) (124)
Payable to government agencies (128) (7)
Other liabilities - 450
Total adjustments 96,400 311,393
Net cash provided by (used in)
operating activities $ 333,326 $ (30,040)
76
EXHIBIT D-3
(Page 2 of 2)
Stormwater
Transit Drainage Waterpark Totals
$(1,304,185) $ 486,551 $ 30,134 $ (892,007)
29,992 121,069 183,153 724,388
- (11,168) - (11,168)
- 2,815
- 8,973
- - - 879
3,878 172,931 - 186,972
2,555 4,368 6,274 14,948
- 1,981 2,334 (2,962)
- - 2,505 2,370
620 13,710 16,448 31,228
37,045 302,891 210,714 958,443
$(1,267,140) $ 789,442 $ 240,848 $ 66,436
..oftwom-►
14
T E X A S
Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the City on a cost-reimbursement
basis.
Fleet Maintenance Fund
The Fleet Maintenance Fund accounts for the costs associated with the operation,
maintenance and replacement of the City's vehicle and equipment fleet. City departments
which use the vehicles and equipment are charged a monthly rental fee based upon actual
operating costs associated with each class of vehicle or equipment.
Duplicating Services Fund
The Duplicating Services Fund accounts for the costs associated with the operation and
maintenance of the City's duplicating equipment. City departments which use the duplicating
services are charged a fee based upon actual usage.
Emplovee Benefit Trust Fund
The Employee Benefit Trust Fund is used to account for and administer group health
insurance, which is self-insured by the City, and life insurance for employees and covered
dependents.
EXHIBIT E-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2010
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
ASSETS
Current assets:
Cash and cash equivalents $ 832,779 $ 30,157 $ 2,408,056 $ 3,270,992
Restricted cash and cash equivalents - - 712,283 712,283
Receivables:
Other 55,965 - 21,161 77,126
Inventory 707,223 13,791 - 721,014
Prepaid items - 5,348 - 5,348
Total current assets 1,595,967 49,296 3,141,500 4,786,763
Capital assets, net of accumulated depreciation 21,064,628 46,753 483 21,111,864
Total assets 22,660,595 96,049 3,141,983 25,898,627
LIABILITIES
Current liabilities:
Accounts payable-trade 168,200 5,667 91,459 265,326
Accrued payroll 89,345 3,864 4,884 98,093
Accrued vacation and sick leave 72,307 2,712 - 75,019
Estimated health claims payable - - 520,797 520,797
Other liabilities 4,766 - - 4,766
Capital leases-current maturities 177,925 - - 177,925
Total current liabilities 512,543 12,243 617,140 1,141,926
Long-term liabilities:
Capital leases, less current maturities 371,696 - - 371,696
Total liabilities 884,239 12,243 617,140 1,513,622
NET ASSETS
Invested in capital assets 20,515,007 46,753 483 20,562,243
Unrestricted 1,261,349 37,053 2,524,360 3,822,762
Total net assets $ 21,776,356 $ 83,806 $ 2,524,843 $ 24,385,005
77
EXHIBIT E-2
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Operating revenues:
Charges for services $ 8,770,597 $ 246,609 $ 23,041 $ 9,040,247
Rents, concessions and other 29,905 - 244,059 273,964
Contributions - - 9,252,043 9,252,043
Total operating revenues 8,800,502 246,609 9,519,143 18,566,254
Operating expenses:
Personnel services 1,817,870 86,037 103,975 2,007,882
Supplies and materials 3,270,010 22,120 8,149 3,300,279
Maintenance and repairs 1,596,154 292 - 1,596,446
Utilities and other services 101,959 953 32,584 135,496
Insurance and contract support 48,655 - 8,249,953 8,298,608
Other expenses 169,265 141,968 832,265 1,143,498
Depreciation and amortization 3,561,513 6,357 138 3,568,008
Total operating expenses 10,565,426 257,727 9,227,064 20,050,217
Operating income(loss) (1,764,924) (11,118) 292,079 (1,483,963)
Nonoperating revenues(expenses):
Interest income - - 40,286 40,286
Interest expense (21,240) - - (21,240)
Gain on sale of capital assets 141,771 - - 141,771
Total nonoperating revenues
(expenses) 120,531 - 40,286 160,817
Income(loss)before transfers (1,644,393) (11,118) 332,365 (1,323,146)
Transfers:
Transfers in 4,074,698 - - 4,074,698
Transfers out (312,000) - - (312,000)
Total transfers 3,762,698 - - 3,762,698
Net income(loss) 2,118,305 (11,118) 332,365 2,439,552
Net assets-beginning 19,658,051 94,924 2,192,478 21,945,453
Net assets-ending $ 21,776,356 $ 83,806 $ 2,524,843 $ 24,385,005
78
EXHIBIT E-3
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Cash flows from operating activities:
Received from customers and users $ 8,772,882 $ 246,609 $ 9,522,037 $ 18,541,528
Payments to suppliers (4,656,843) (191,039) (9,105,659) (13,953,541)
Payments to employees (1,362,837) (61,773) (76,771) (1,501,381)
Net cash provided(used)by operating activities 2,753,202 (6,203) 339,607 3,086,606
Cash flows from noncapital financing activities:
Repayment of interfund loan - - (12,064) (12,064)
Transfers in from other funds 4,074,698 - - 4,074,698
Transfers out to other funds (312,000) - - (312,000)
Net cash provided(used)by noncapital financing activities 3,762,698 - (12,064) 3,750,634
Cash flows from capital and related
financing activities:
Acquisition of capital assets (6,123,027) - - (6,123,027)
Proceeds from sale of capital assets 244,698 - - 244,698
Principal paid on long-term debt (172,843) - - (172,843)
Interest and fees paid on long-term debt (21,240) - - (21,240)
Net cash used for capital and
related financing activities (6,072,412) - - (6,072,412)
Cash flows from investing activities:
Interest on investments - - 40,286 40,286
Net Increase(Decrease)in Cash and Cash Equivalents 443,488 (6,203) 367,829 805,114
Cash and Cash Equivalents-Beginning 389,291 36,360 2,752,510 3,178,161
Cash and Cash Equivalents-Ending $ 832,779 $ 30,157 $ 3,120,339 $ 3,983,275
Cash flows from operating activities:
Operating income(loss) $ (1,764,924) $ (11,118) $ 292,079 $ (1,483,963)
Adjustments to reconcile operating income to net
cash provided(used)by operating activities:
Depreciation and amortization 3,561,513 6,357 138 3,568,008
(Increase)decrease in current assets:
Receivables:
Other (29,386) - 2,894 (26,492)
Inventory 39,284 - - 39,284
Prepaid items 917,222 (1,881) 116 915,457
Increase(decrease)in current liabilities:
Accounts payable-trade 28,855 (33) (49,987) (21,165)
Accrued payroll (555) 295 304 44
Accrued vacation and sick leave (573) 177 - (396)
Estimated health claims payable - - 94,063 94,063
Other liabilities 1,766 - - 1,766
Total adjustments 4,518,126 4,915 47,528 4,570,569
Net cash provided(used)by
operating activities $ 2,753,202 $ (6,203) $ 339,607 $ 3,086,606
79
Agency Fund
Escheatment Fund - The agency fund is used to account for assets held by the City of Wichita
Falls in a custodial capacity. The assets in this fund have been abandoned or remain unclaimed
pending escheatment to the State of Texas.
• i
/C I a ra
T E X A S
EXHIBIT F-1
CITY OF WICHITA FALLS, TEXAS
AGENCYFUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deductions 9/30/2010
ESCHEATMENTFUND
Assets
Cash and cash equivalents $ 308,461 $ 16,601 $ 24,347 $ 300,715
Liabilities
Other liabilities $ 308,461 $ 16,601 $ 24,347 $ 300,715
80
Component Units
Discretely Presented Component Units of the City of Wichita Falls are legally separate entities;
however, the City is considered to be financially accountable for their operations. The four
discretely presented component units are as follows:
Wichita Falls Economic Development Corporation
The Wichita Falls Economic Development Corporation is a nonprofit corporation formed in
May 1997 for the purpose of increasing employment opportunities, primarily through assisting
qualified enterprises with funds provided by a portion of the local sales tax. The Corporation
operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A.
Wichita Falls 4B Sales Tax Corporation
The Wichita Falls 4B Sales Tax Corporation is a nonprofit corporation formed in May 1997 for
the purpose of increasing employment opportunities and for public improvement projects such
as parks, auditoriums, learning centers, open space improvements, athletic and exhibition
facilities and the related maintenance and operating costs of such projects. These projects
are funded by a portion of the local sales tax. The Corporation operates under the authority of
Vernon's Civil Statutes, Article 5190.6, Section 4B.
Wichita Falls Reinvestment Zone#2
The Wichita Falls Reinvestment Zone #2 was created in August 2005 by the City, with the
advice and consent of the Wichita Falls Independent School District and Wichita County. The
purpose of the Wichita Falls Reinvestment Zone #2 is to capture increments of growth in real
property values in the designated zone area from base values established in January 2004
and use the ad valorem taxes derived from the increments to contribute to the zoned area.
Tax funds derived from the increment can only be spent for public improvements in the zoned
area or for payment of debt service on bonds issued to provide funds for public
improvements.
Wichita Falls Reinvestment Zone#3
The Wichita Falls Reinvestment Zone#3 was created in September 2009 by the City, with the
advice and consent of the Wichita Falls Independent School District and Wichita County. The
purpose of the Wichita Falls Reinvestment Zone #3 is to capture increments of growth in real
property values in the designated zone area from base values established in January 2009
and use the ad valorem taxes derived from the increments to contribute to the zoned area.
Tax funds derived from the increment can only be spent for public improvements in the zoned
area or for payment of debt service on bonds issued to provide funds for public
improvements.
EXHIBIT G-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
COMPONENT UNITS
SEPTEMBER 30, 2010
Wichita Falls
Economic Wichita Falls Wichita Falls Wichita Falls
Development 46 Sales Tax Reinvestment Reinvestment
Corporation Corporation Zone#2 Zone#3 Totals
Assets
Cash and cash equivalents $15,493,187 $ 2,480,607 $ - $ 35,540 $18,009,334
Receivables:
Government agencies 593,308 593,308 - - 1,186,616
Prepaid items - 144,072 - - 144,072
Capital assets,net of accumulated depreciation 2,340,841 - - - 2,340,841
Total assets 18,427,336 3,217,987 - 35,540 21,680,863
Liabilities
Accounts payable-trade 371,592 123 - - 371,715
Total liabilities 371,592 123 - 371,715
Net assets
Investment in capital assets, net of related debt 2,340,841 - - - 2,340,841
Unrestricted 15,714,903 3,217,864 - 35,540 18,968,307
Total net assets $18,055,744 $ 3,217,864 $ - $ 35,540 $21,309,148
81
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Program Revenue
Operating
Charges for Grants and
Expenses Services Contributions
Community development
Wichita Falls Economic Development Corporation $ 11,858,386 $ 106,800 $ -
Wichita Falls Q Sales Tax Corporation 5,774,134 - 255,002
Wichita Falls Reinvestment Zone#2 255,002 - -
Wichita Falls Reinvestment Zone#3 - - -
Total component units $ 17,887,522 $ 106,800 $ 255,002
General revenues:
Taxes:
Property tax
Sales tax
Investment earnings
Total general revenues
Change in net assets
Net assets-beginning
Net assets-ending
82
EXHIBIT G-2
Net(Expense) Revenue and
Changes in Net Assets
Wichita Falls
Economic Wichita Falls Wichita Falls Wichita Falls
Development 413 Sales Tax Reinvestment Reinvestment
Corporation Corporation Zone#2 Zone#3 Totals
$ (11,751,586) $ - $ - $ - $ (11,751,586)
(5,519,132) - - (5,519,132)
(255,002) - (255,002)
(11,751,586) (5,519,132) (255,002) - (17,525,720)
- - 254,775 35,527 290,302
3,338,970 3,338,970 - - 6,677,940
40,058 9,302 227 13 49,600
3,379,028 3,348,272 255,002 35,540 7,017,842
(8,372,558) (2,170,860) - 35,540 (10,507,878)
26,428,302 5,388,724 - - 31,817,026
$ 18,055,744 $ 3,217,864 $ - $ 35,540 $ 21,309,148
lC a F,01(5
T E X A S
Supporting Schedules
T E X A S
B/u�Skies Cr�den O��ot'tunities
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES
SEPTEMBER 30,2010
Fiscal Year General Obligation Bonds Combination Tax and Revenue Bonds Water and Sewer
Ending Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds Serial Bond
September 30, Maturities on Bonds and Interest Maturities(1) on Bonds and Interest Maturities(2)
2011 $ 340,000 $ 241,987 $ 581,987 $ 5,589,517 $ 2,542,239 $ 8,131,756 $ 2,198,966
2012 355,000 227,113 582,113 6,064,359 2,259,045 8,323,404 1,982,897
2013 370,000 210,694 580,694 4,961,732 2,046,508 7,008,240 3,431,663
2014 385,000 193,581 578,581 5,017,477 1,874,260 6,891,737 3,563,431
2015 405,000 175,775 580,775 5,191,817 1,696,068 6,887,885 3,709,980
2016 425,000 154,512 579,512 5,378,922 1.505,992 6,884,914 3,861,351
2017 450,000 132,200 582,200 5,693,748 1,303,911 6,997,659 4,007,536
2018 475,000 108,013 583,013 5,864,985 1,115,826 6,980,811 4,178,541
2019 500,000 82,481 582,481 1,919,725 918,086 2,837,811 8,224,396
2020 530,000 55,606 585,606 2,002,410 835,234 2,837,644 8,575,823
2021 555,000 28,444 583,444 2,089,945 746,359 2,836,304 8,951,741
2022 - - - 2,187,350 652,881 2,840,231 9,337,675
2023 2,294,222 546,622 2,840,844 9,748.174
2024 2.400,925 434,027 2,834,952 10,177,748
2025 2,522,469 314,681 2,837,150 10,621,792
2026 2,248,832 199,442 2,448,274 11,085,785
2027 710,000 88,856 798,856 3,819,245
2028 745,000 54,744 799,744 -
2029 - - - 780,000 18,525 798,525 -
$ 4,790,000 $ 1,610,406 $ 6,400,406 $ 63,663,435 $ 19,153,306 $ 81,218,472 $ 107,476,744
(1)Includes amortization of bond premium of$1,628,435.
(2)Includes amortization of bond premium of$1,221,744.
83
EXHIBIT H-1
Priority Lien Revenue Bonds Water and Sewer Subordinate Lien Revenue Bonds Totals-All Bonded Debt
Interest Total Bonds Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds
on Bonds and Interest Maturities on Bonds and Interest Maturities on Bonds and Interest
$ 4,593,465 $ 6.792,431 $ 25,000 $ 1,073 $ 26,073 $ 8,153,483 $ 7,378,764 $ 15,532.247
4,502,178 6,485,075 - - - 8,402,256 6,988,336 15,390,592
4,412,262 7.843,925 8,763,395 6,669,464 15,432,869
4,282,494 7,845,925 8,965,908 6,350,335 15,316,243
4.138,895 7,848,875 9,306,797 6,010,738 15,317,535
3,989,099 7,850,450 9,665,273 5,649,603 15,314.876
3,832,902 7,840,438 10,151,284 5,269,013 15,420,297
3,670,509 7,849,050 10,518,526 4.894,348 15,412,874
3,511,054 11,735,450 10,644,121 4,511,621 15,155,742
3,163,502 11,739,325 11,108,233 4,054,342 15,162,575
2,790,084 11,741,825 11,596,686 3,564,887 15,161,573
2,399,324 11,736,999 11,525,025 3,052,205 14,577,230
1.991,226 11,739,400 12,042,396 2,537.848 14,580,244
1,565,152 11,742,900 12,578,673 1,999,179 14,577,852
1.119,808 11.741,600 13,144.261 1,434,489 14,578,750
654,040 11,739,825 13.334.617 853,482 14,188,099
167,430 3,986,675 4,529.245 256,286 4,785,531
- - 745,000 54,744 799.744
- - - - - 780,000 18,525 798,525
$ 50,783,424 $ 158,260,168 $ 25,000 $ 1,073 $ 26,073 $ 175,955,179 $ 71,548,209 $ 247,503,388
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30, 2010
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
General Obligation and Construction 3.75,3.85,4.00,4.125 03/01/01 09/01/21 175,000 2002
Refunding Bonds,Series 2001 4.25,4.375,4.625,5.00 415,000 (2003)
5.125,5.25,5.375 435,000 (2004)
(3/1,9/1) 445,000 (2005)
465,000 (2006)
880,000 (2007)
910,000 (2008)
945,000 (2009)
745,000 (2010)
340,000 (2011)
355,000 (2012)
370,000 (2013)
385,000 (2014)
405,000 (2015)
425,000 (2016)
450,000 (2017)
475,000 (2018)
500,000 (2019)
530,000 (2020)
555,000 (2021)
Total General Obligation Bonds
Combination Tax and Revenue Bonds:
Combination Tax and Revenue 3.00,3.10,3.30,3.40 11/15/03 09/01/18 740,000 (2004)
Certificates of Obligation, 3.55,3.65,3.75,3.90, 715,000 (2005)
Series 2003 4.00 735,000 (2006)
(3/1,9/1) 755,000 (2007)
775,000 (2008)
380,000 (2009)
390,000 (2010)
405,000 (2011)
420,000 (2012)
435,000 (2013)
335,000 (2014)
345,000 (2015)
360,000 (2016)
375,000 (2017)
385,000 (2018)
84
EXHIBIT H-2
(Page 1 of 6)
Bonds
Retired or
Authorized Issued Refunded Outstanding
$ 10,205,000 $ 10,205,000 $ 5,415,000 $ 4,790,000
10,205,000 10,205,000 5,415,000 4,790,000
7,550,000 7,550,000 4,490,000 3,060,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.)
SEPTEMBER 30, 2010
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Combination Tax and Revenue 2.00,2.25,2.75,3.50, 09/01/04 08/01/12 685,000 (2005)
Refunding Bonds, 4.00,5.00 640,000 (2006)
Series 2004 (2/1,8/1) 650,000 (2007)
3,115,000 (2008)
3,230,000 (2009)
3,375,000 (2010)
3,500,000 (2011)
3,645,000 (2012)
Combination Tax and
Revenue Refunding
Bonds,Series 2004-Premium
Combination Tax and Revenue 4.90,5.00 09/01/05 08/01/16 115,000 (2005)
Refunding Bonds, (2/1,8/1) 2,055,000 (2006)
Series 2005 2,150,000 (2007)
2,210,000 (2013)
2,350,000 (2014)
2,490,000 (2015)
2,650,000 (2016)
Combination Tax and
Revenue Refunding
Bonds,Series 2005-Premium
Combination Tax and Revenue 3.55,3.60,3.90,4.00 11/15/06 09/01/26 705,000(2007)
Certificates of Obligation, 4.10,4.20,4.25,5.00 580,000(2008)
Series 2006A (3/1,9/1) 605,000(2009)
625,000(2010)
650,000(2011)
680,000(2012)
705,000(2013)
735,000(2014)
760,000(2015)
795,000(2016)
825,000(2017)
855,000(2018)
890,000(2019)
930,000(2020)
965,000(2021)
1,010,000(2022)
1,060,000(2023)
1,110,000(2024)
1,165,000(2025)
1,225,000(2026)
Combination Tax and
Revenue Certificates of
Obligation,Series 2006A-Premium
85
EXHIBIT H-2
(Page 2 of 6)
Bonds
Retired or
Authorized Issued Refunded Outstanding
18,840,000 18,840,000 11,695,000 7,145,000
- 1,060,889 939,892 120,997
14,020,000 14,020,000 4,320,000 9,700,000
- 1,050,891 592,850 458,041
16,875,000 16,875,000 2,515,000 14,360,000
- 448,769 133,260 315,509
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT-D.)
SEPTEMBER 30,2010
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Combination Tax and Revenue 5.20,5.30,6.00,6.25 11/15/06 09/01/26 170,000(2007)
Certificates of Obligation, (3/1,9/1) 130,000 2008
Series 2006E 135,000(2009)
140,000(2010)
150,000(2011)
155,000(2012)
165,000(2013)
175,000(2014)
185,000(2015)
190,000(2016)
205,000(2017)
215,000(2018)
230,000(2019)
240,000(2020)
255,000(2021)
270,000(2022)
290,000(2023)
305,000(2024)
325,000(2025)
345,000(2026)
Combination Tax and
Revenue Certificates of
Obligation,Series 2006E-Premium
Combination Tax and Revenue 2.25,2.50,2.75,3.00, 01/15/09 10/01/28 340,000(2010)
Certificates of Obligation, 3.25,3.50,4.00,4.125, 405,000(2011)
Series 2009 4.25,4.50,4.625,4.75 415,000(2012)
(4/1,10/1) 425,000(2013)
435,000(2014)
450,000(2015)
460,000(2016)
475,000(2017)
490,000(2018)
505,000(2019)
525,000(2020)
550,000(2021)
570,000(2022)
595,000(2023)
620,000(2024)
650,000(2025)
675,000(2026)
710,000(2027)
745,000(2028)
780,000(2029)
86
EXHIBIT H-2
(Page 3 of 6)
Bonds
Retired or
Authorized Issued Refunded Outstanding
4,275,000 4,275,000 575,000 3,700,000
- 103,279 30,101 73,178
10,820,000 10,820,000 340,000 10,480,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT-D.)
SEPTEMBER 30, 2010
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Combination Tax and Revenue 5.60(2/1,8/1) 01/01/10 02/01/25 165,000(2011)
Certificates of Obligation, 185,000(2012)
Series 2010 195,000(2013)
205,000(2014)
215,000(2015)
230,000(2016)
240,000(2017)
255,000(2018)
270,000(2019)
285,000(2020)
300,000(2021)
320,000(2022)
335,000(2023)
355,000(2024)
375,000(2025)
Combination Tax and Revenue 2.00,3.00,3.50,4.00 05/01/10 08/01/18 170,000(2010)
Refunding Bonds,Series 2010 (2/1,8/1) 285,000(2012)
595,000(2013)
580,000(2014)
575,000(2015)
555,000(2016)
3,470,000(2017)
3,600,000(2018)
Combination Tax and Revenue
Refunding Bonds,Series 2010-
Premium
Total Combination Tax and Revenue Bonds
Revenue Bonds:
Priority Lien:
Water and Sewer System 4.05,4.10,4.25,4.35, 10/01/98 08/01/11 215,000 (1999)
Priority Lien Revenue Bonds, 4.45,4.55,4.625,4.65 180,000 (2000)
Series 1998E (2/1,811) 190,000 (2001)
200,000 (2002)
210,000 (2003)
220,000 (2004)
230,000 (2005)
240,000 (2006)
250,000 (2007)
260,000 (2008)
270,000 (2009)
280,000 (2010)
295,000 (2011)
87
EXHIBIT H-2
(Page 4 of 6)
Bonds
Retired or
Authorized Issued Refunded Outstanding
3,930,000 3,930,000 - 3,930,000
9,830,000 9,830,000 170,000 9,660,000
- 685,333 24,623 660,710
86,140,000 89,489,161 25,825,726 63,663,435
5,500,000 5,500,000 5,205,000 295,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.)
SEPTEMBER 30,2010
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Water and Sewer System 3.75,4.00,4.375,4.50 09/01/01 08/01/12 1,665,000 (2002)
Priority Lien Revenue 5.00,5.10,5.375 1,220,000 (2003)
Bonds,Series 2001 (2/1,8/1) 1,265,000 (2004)
1,320,000 (2005)
1,365,000 (2006)
1,430,000 (2007)
1,360,000 (2008)
1,410,000 (2009)
1,490,000 (2010)
1,545,000 (2011)
1,616,000 (2012)
Water and Sewer System
Priority Lien Revenue
Bonds,Series 2001 -Premium
Water and Sewer System 4.00,4.25,4.375,4.50 02/01/07 08/01/27 225,000 (2008)
Priority Lien Refunding Revenue (2/1,8/1) 230,000 (2009)
Bonds,Series 2007 240,000 (2010)
250,000 (2011)
260,000 (2012)
3,325,000 (2013)
3,460,000 (2014)
3,610,000 (2015)
3,765,000 (2016)
3,915,000 (2017)
4,090,000 (2018)
8,140,000 (2019)
8,500,000 (2020)
8,885,000 (2021)
9,280,000 (2022)
9,700,000 (2023)
10,140,000 (2024)
10,595,000 (2025)
11,070,000 (2026)
3,815,000 (2027)
Water and Sewer System
Priority Lien Refunding Revenue
Bonds,Series 2007-Premium
Total Priority Lien Revenue Bonds
88
EXHIBIT H-2
(Page 5 of 6)
Bonds
Retired or
Authorized Issued Refunded Outstanding
118,770,000 118,770,000 115,610,000 3,160,000
- 1,634,193 747,188 887,005
103,495,000 103,495,000 695,000 102,800,000
- 437,938 103,199 334,739
227,765,000 229,837,131 122,360,387 107,476,744
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT-D.)
SEPTEMBER 30,2010
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Water and Sewer System 3.14,3.39,3.49,3.59, 05/22/98 08/01/11 25,000 (1999)
Subordinate Lien Revenue 3.64,3.69,3.79,3.89, 25,000 (2000)
Bonds,Series 1998 3.94,3.99,4.09,4.19, 25,000 (2001)
4.29,4.39,4.44,4.49, 25,000 (2002)
4.54,4.59 25,000 (2003)
(2/1,8/1) 25,000 (2004)
25,000 (2005)
25,000 (2006)
25,000 (2007)
25,000 (2008)
25,000 (2009)
25,000 (2010)
25,000 (2011)
Total Subordinate Lien Bonds
Total Revenue Bonds
Total All Bonds
89
EXHIBIT H-2
(Page 6 of 6)
Bonds
Retired or
Authorized Issued Refunded Outstanding
8,060,000 8,060,000 8,035,000 25,000
8,060,000 8,060,000 8,035,000 25,000
235,825,000 237,897,131 130,395,387 107,501,744
$ 332,170,000 $ 337,591,292 $ 161,636,113 $ 175,955,179
• i
T E X A S
S/ueSki�,.Crolde�O��ot'tu�n�7res
EXHIBIT H-3
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE COVERAGE -REVENUE BONDS
SEPTEMBER 30, 2010
Water and Sewer Revenue Bonds:
Change in net assets (Exhibit A-8) $ 1,531,703
Add:
Depreciation and amortization $ 5,339,883
Interest expense and paying agent fees 5,910,505
Transfers out 1,326,071 12,576,459
Subtract:
West Texas Utilities water revenues 552,320
Gain (loss)on sale/abandonment of capital assets 32,295
Capital contributions from developers 108,471
Transfers in 443,761 (1,136,847)
Net earnings for determining debt service coverage $12,971,315
Priority Subordinate
Lien Bonds Lien Bonds
Net earnings for determining debt service coverage $12,971,315
Principal and interest requirements to maturity $ 158,260,168 $ 26,073
Number of years remaining to pay bonds 17 1
Average annual principal and interest requirement 9,309,422 26,073
Minimum bond covenant debt service coverage 1.25 1.10
Minimum debt service coverage requirement $ 11,636,777 $ 28,680 11,665,457
Excess over debt service coverage requirements $ 1,305,858
90
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
SEPTEMBER 30,2010
Buildings Machinery
Land and and and
Betterments Improvements Equipment
Administrative services:
Mayor and City Council $ $ _ $ -
City Manager 265,897 2,020
Personnel/Risk Management - 7,584
Martin Luther King Center - 786,763 6,206
Library 477,942 4,523,930 481,645
General Public Information - - 285,195
Building Maintenance - 1,076,622 39,208
Nondepartmental 44,080 276,814 161,888
Municipal Court 230,000 316,527 192,921
Legal - - 1,869
City Clerk 1,411
Homeland security 700,971
Training Center - - 392,220
Golf course 3,808,376 531,686 45,150
Total administrative services 4,560,398 7,778,239 2,318,288
Police 1,131,749 10,231,506 10,868,966
Fire 194,065 7,079,019 250,214
Parks and recreation:
Recreation 665,775 1,705,330 183,688
Park maintenance 12,042,362 908,781 30,204
Cemetery 131,619 - 9,423
Total parks and recreation 12,839,756 2,614,111 223,315
Accounting/finance:
Accounting/finance
- - 1,192
Information Systems 2,031,145
Total accounting/finance 2,032,337
Community development:
Planning 28,465
Inspection - - 7,447
Property management 2,760,062 420,891 29,590
Weed and Seed program - - 7,504
Hazard Mitigation grant 170,800 - -
Total community development 2,930,862 420,891 73,006
Public works:
Engineering 125,806 29,665 124,900
Street maintenance 10,147 98,073 26,523
Infrastructure _
Total public works 135,953 127,738 151,423
Health:
Administration 34,820 2,871,076 346,322
General City nursing 76,411 1,123 33,701
Environmental health - 8,956 11,042
Lab water pollution - - 21,734
Animal reclaim center 150,737 - _
Total health 261,968 2,881,155 412,799
Traffic and transportation - 31,045 150,612
Multi-Purpose Events Center 9,560,210 33,981,338 506,524
Wichita Falls Business Park 1,099,507 - _
Total capital assets used in the operation of governmental funds $ 32,714,468 $ 65,145,042 $ 16,987,484
91
EXHIBIT H-4
Motor
Furniture Vehicles
and and Construction
Fixtures Equipment Infrastructure in Progress Totals
$ 5,218 $ $ $ $ 5,218
13,644 281,561
4,660 12,244
9,120 802,089
90,579 5,574,096
3,184 288,379
1,115,830
482,782
1,435 740,883
1,869
1,411
700,971
392,220
4,385,212
127,840 - 14,784,765
8,760 4,972,747 27,213,728
- 7,523,298
11,727 2,566,520
- 12,981,347
- 141,042
11,727 15,688,909
1,192
2,031,145
2,032,337
28,465
7,447
3,210,543
7,504
170,800
3,424,759
280,371
1,393 - - 136,136
- - 147,141,123 147,141,123
1,393 - 147,141,123 147,557,630
14,573 - - 3,266,791
111,235
19,998
- 21,734
2,097,587 2,248,324
14,573 - 2,097,587 5,668,082
- 8,251,291 - 8,432,948
28,288 44,076,360
- - 1,099,507
$ 192,581 $ $ 155,392,414 $ 7,070,334 $ 277,502,323
EXHIBIT H-5
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED SEPTEMBER 30,2010
Beginning Ending
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Administrative services:
Mayor and City Council $ 5,218 $ $ - $ 5,218
City Manager 287,207 5,646 281,561
Personnel/Risk Management 12,244 - 12,244
Martin Luther King Center 805,820 - 3,731 802,089
Library 5,566,919 7,177 - 5,574,096
General Public Information 314,748 6,380 32,749 288,379
Building Maintenance 1,115,830 - - 1,115,830
Nondepartmental 438,702 44,080 482,782
Municipal Court 740,883 - 740,883
Legal 1,869 1,869
City Clerk 1,411 - 1,411
Homeland security 579,132 121,839 700,971
Training center 306,928 85,292 392,220
Golf course 4,385,212 - - 4,385,212
Total administrative services 14,562,123 264,768 42,126 14,784,765
Police 23,654,108 3,595,162 35,542 27,213,728
Fire 7,890,331 11,863 378,896 7,523,298
Parks and recreation:
Recreation 2,522,788 44,737 1,005 2,566,520
Park maintenance 13,465,196 1,499 485,348 12,981,347
Cemetery 141,042 - - 141,042
Total parks and recreation 16,129,026 46,236 48.6,353 1_5,688,909
Accounting/finance:
Accounting/finance 1,192 - - 1,192
Information Systems 1,979,634 51,511 2,031,145
Total accounting/finance 1,980,826 51,511 - 2,032,337
Community development:
Planning 45,795 - 17,330 28,465
Inspection 7,447 - - 7,447
Property management 3,209,243 1,300 3,210,543
Weed and Seed program 7,504 - 7,504
Hazard Mitigation Grant - 170,800 - 170,800
Total community development 3,269,989 172,100 17,330 3,424,759
Public works:
Engineering 280,371 - - 280,371
Street maintenance 133,436 2,700 - 136,136
Infrastructure 145,126,881 2,541,470 527,228 147,141,123
Total public works 145,540,688 2,544,170 527,228 147,557,630
Health:
Administration 3,237,380 37,997 8,586 3,266,791
General city nursing 113,382 - 2,147 111,235
Environmental health 19,998 - - 19,998
Lab water pollution 17,861 3,873 21,734
Animal reclaim center 226,362 2,021,962 - 2,248,324
Total health 3,614,983 2,063,832 10,733 5,668,082
Traffic and transportation 8,280,558 386,551 234,161 8,432,948
Multi-Purpose Events Center 43,869,843 206,517 - 44,076,360
Wichita Falls Business Park 1,099,507 - - 1,099,507
Total capital assets $ 269,891,982 $ 9,342,710 $ 1,732,369 $ 277,502,323
92
EXHIBIT H-6
CITY OF WICHITA FALLS, TEXAS
MUNICIPAL AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Land and betterments $2,239,667 $ - $ - $2,239,667
Buildings and improvements 1,548,001 150,057 - 1,698,058
Machinery and equipment 32,403 2,468 - 34,871
Furniture and fixtures 36,705 - - 36,705
Construction in progress 248,160 4,442,257 - 4,690,417
Total capital assets 4,104,936 4,594,782 - 8,699,718
Accumulated Depreciation:
Land and betterments 1,505,513 31,320 - 1,536,833
Buildings and improvements 1,046,998 30,814 - 1,077,812
Machinery and equipment 22,437 2,456 - 24,893
Furniture and fixtures 31,493 3,413 - 34,906
Total accumulated depreciation 2,606,441 68,003 - 2,674,444
Net capital assets $ 1,498,495 $ 4,526,779 $ - $6,025,274
93
EXHIBIT H-7
CITY OF WICHITA FALLS, TEXAS
KICKAPOO AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Land and betterments $6,500,137 $ 1,470 $ - $ 6,501,607
Buildings and improvements 3,259,016 714 - 3,259,730
Machinery and equipment 610,925 - - 610,925
Construction in progress 7,192 - - 7,192
Total capital assets 10,377,270 2,184 - 10,379,454
Accumulated Depreciation:
Land and betterments 702,160 182,758 - 884,918
Buildings and improvements 230,791 107,324 - 338,115
Machinery and equipment 139,075 32,089 - 171,164
Total accumulated depreciation 1,072,026 322,171 - 1,394,197
Net capital assets $9,305,244 $ (319,987) $ - $ 8,985,257
94
EXHIBIT H-8
CITY OF WICHITA FALLS, TEXAS
TRANSIT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Land and betterments $ 61,925 $ - $ - $ 61,925
Buildings and improvements 680,718 - - 680,718
Machinery and equipment 236,383 8,868 51,266 193,985
Total capital assets 979,026 8,868 51,266 936,628
Accumulated Depreciation:
Buildings and improvements 205,586 10,456 - 216,042
Machinery and equipment 156,943 19,536 30,759 145,720
Total accumulated depreciation 362,529 29,992 30,759 361,762
Net capital assets $ 616,497 $ (21,124) $20,507 $ 574,866
95
EXHIBIT H-9
CITY OF WICHITA FALLS, TEXAS
STORMWATER DRAINAGE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Drainage $8,228,826 $ 584,839 $ - $ 8,813,665
Land betterments 2,300 - - 2,300
Machinery and equipment 73,376 - - 73,376
Construction in progress 1,250,332 4,494,087 584,839 5,159,580
Total capital assets 9,554,834 5,078,926 584,839 14,048,921
Accumulated Depreciation:
Drainage 47,512 7,338 - 54,850
Land betterments 173 114 - 287
Machinery and equipment 195,906 113,617 - 309,523
Total accumulated depreciation 243,591 121,069 - 364,660
Net capital assets $9,311,243 $ 4,957,857 $ 584,839 $13,684,261
96
EXHIBIT H-10
CITY OF WICHITA FALLS, TEXAS
SANITATION FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Land and betterments $4,995,781 $ 414,008 $ - $5,409,789
Buildings and improvements 2,307,293 2,990 - 2,310,283
Machinery and equipment 287,061 3,795 6,070 284,786
Construction in progress 35,234 378,858 227,031 187,061
Total capital assets 7,625,369 799,651 233,101 8,191,919
Accumulated Depreciation:
Land and betterments 252,884 98,811 - 351,695
Buildings and improvements 1,277,650 47,509 - 1,325,159
Machinery and equipment 115,555 18,018 5,734 127,839
Total accumulated depreciation 1,646,089 164,338 5,734 1,804,693
Net capital assets $5,979,280 $ 635,313 $ 227,367 $6,387,226
97
EXHIBIT H-11
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Land and betterments $ 24,345,465 $ - $ - $ 24,345,465
Buildings, systems and
improvements 244,773,822 5,401,516 312,098 249,863,240
Machinery and equipment 4,580,987 235,116 36,730 4,779,373
Furniture and fixtures 1,164 - - 1,164
Motor vehicles 1,235 - - 1,235
Construction in progress 6,199,609 23,770,329 3,198,420 26,771,518
Total capital assets 279,902,282 29,406,961 3,547,248 305,761,995
Accumulated Depreciation:
Land and betterments 9,335,456 243,631 - 9,579,087
Buildings, systems and
improvements 74,409,528 4,751,090 312,098 78,848,520
Machinery and equipment 3,446,947 166,109 36,730 3,576,326
Furniture and fixtures 1,164 - - 1,164
Motor vehicles 1,235 - - 1,235
Total accumulated depreciation 87,194,330 5,160,830 348,828 92,006,332
Net capital assets $192,707,952 $ 24,246,131 $ 3,198,420 $213,755,663
98
EXHIBIT H-12
CITY OF WICHITA FALLS, TEXAS
WATERPARK FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Land and betterments $ - $ 389,894 $ - $ 389,894
Buildings and improvements - 3,306,149 - 3,306,149
Machinery and equipment - 178,457 - 178,457
Total capital assets - 3,874,500 - 3,874,500
Accumulated Depreciation.-
Buildings and improvements - 165,307 - 165,307
Machinery and equipment - 17,846 - 17,846
Total accumulated depreciation - 183,153 _ - 183,153
Net capital assets $ - $ 3,691,347 $ - $ 3,691,347
99
EXHIBIT H-13
CITY OF WICHITA FALLS, TEXAS
FLEET MAINTENANCE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Land and betterments $ 436,269 $ - $ - $ 436,269
Buildings and improvements 4,128,980 7,388 - 4,136,368
Machinery and equipment 926,226 43,536 134,388 835,374
Furniture and fixtures 6,358 - 3,408 2,950
Motor vehicles 43,841,582 6,072,153 3,100,882 46,812,853
Construction in progress 6,706 - - 6,706
Total capital assets 49,346,121 6,123,077 3,238,678 52,230,520
Accumulated Depreciation:
Land and betterments -other 653 261 - 914
Buildings and improvements 1,902,486 86,308 - 1,988,794
Machinery and equipment 600,962 55,825 133,692 523,095
Furniture and fixtures 6,357 - 3,407 2,950
Motor vehicles and equipment 28,229,622 3,419,118 2,998,601 28,650,139
Total accumulated depreciation 30,740,080 3,561,512 3,135,700 31,165,892
Net capital assets $ 18,606,041 $ 2,561,565 $ 102,978 $21,064,628
100
EXHIBIT H-14
CITY OF WICHITA FALLS, TEXAS
DUPLICATING SERVICES FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Machinery and equipment $ 114,995 $ - $ - $ 114,995
Accumulated Depreciation:
Machinery and equipment 61,885 6,357 - 68,242
Net capital assets $ 53,110 $ (6,357) $ - $ 46,753
101
EXHIBIT H-15
CITY OF WICHITA FALLS, TEXAS
EMPLOYEE BENEFIT TRUST FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Machinery and equipment $ 1,379 $ - $ - $ 1,379
Accumulated Depreciation:
Machinery and equipment 759 137 - 896
Net capital assets $ 620 $ (137) $ - $ 483
102
EXHIBIT H-16
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Balance Balance
10/1/2009 Additions Deletions 9/30/2010
Capital Assets:
Land and betterments $ 1,469,797 $ - $ - $ 1,469,797
Buildings and improvements 957,191 - - 957,191
Total capital assets 2,426,988 - - 2,426,988
Accumulated Depreciation:
Buildings and improvements 67,003 19,144 - 86,147
Net capital assets $ 2,359,985 $ (19,144) $ - $ 2,340,841
103
► i
/G
T E X A S
�/ttlSkies Orr-rfumAel,
Statistical Section (Unaudited)
This part of the City of Wichita Falls, Texas' comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
government's overall financial health.
Contents Page
Financial Trends 104
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity 110
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax.
Debt Capacity 114
These schedules present information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's ability to
issue additional debt in the future.
Demographic and Economic Information 119
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities take
place.
Operating Information 121
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates to the
services the government provides and the activities it performs.
CITY OF WICHITA FALLS, TEXAS
NET ASSETS BY COMPONENT
LAST EIGHT FISCAL YEARS (UNAUDITED)
2002-2003 2003-2004 2004-2005
Governmental activities
Invested in capital assets, net of related debt $ 64,632,911 $ 90,045,882 $ 127,366,654
Restricted 597,966 626,256 1,200,845
Unrestricted 16,561,287 25,286,103 20,500,308
Total governmental activities net assets $ 81,792,164 $ 115,958,241 $ 149,067,807
Business-type activities
Invested in capital assets, net of related debt $ 89,683,262 $ 99,419,642 $ 112,568,870
Restricted 15,483,121 15,436,872 15,679,474
Unrestricted 14,109,004 10,631,269 7,698,134
Total business-type activities net assets $ 119,275,387 $ 125,487,783 $ 135,946,478
Primary government
Invested in capital assets, net of related debt $ 154,316,173 $ 189,465,524 $ 239,935,524
Restricted 16,081,087 16,063,128 16,880,319
Unrestricted 30,670,291 35,917,372 28,198,442
Total primary government net assets $ 201,067,551 $ 241,446,024 $ 285,014,285
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
104
EXHIBIT 1-1
Fiscal Year
2005-2006 2006-2007 2007-2008 2008-2009 2009-10
$ 132,958,014 $ 133,737,880 $ 139,868,969 $ 138,550,295 $ 135,957,279
1,373,786 1,541,859 1,631,963 1,186,730 5,006,079
20,689,055 27,487,733 21,189,932 14,880,792 9,263,524
$ 155,020,855 $ 162,767,472 $ 162,690,864 $ 154,617,817 $ 150,226,882
$ 120,263,391 $ 132,852,246 $ 143,023,239 $ 156,170,924 $ 172,590,416
16,234,804 12,681,053 12,945,497 12,958,909 12,942,163
11,962,104 12,513,454 12,810,854 10,712,005 10,734,533
$ 148,460,299 $ 158,046,753 $ 168,779,590 $ 179,841,838 $ 196,267,112
$ 253,221,405 $ 266,590,126 $ 282,892,208 $ 294,721,219 $ 308,547,695
17,608,590 14,222,912 14,577,460 14,145,639 17,948,242
32,651,159 40,001,187 34,000,786 25,592,797 19,998,057
$ 303,481,154 $ 320,814,225 $ 331,470,454 $ 334,459,655 $ 346,493,994
EXHIBIT 1-2
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET ASSETS
LAST EIGHT FISCAL YEARS(UNAUDITED)
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Expenses
Governmental activities:
Administrative services $ 9,816,232 $ 9,524,291 $ 9,174,786 $ 10,648,044 $ 10,363,134 $ 11,662,086 $ 12,026,311 $ 10,043,369
Police 16,082,473 16,283,542 17,107,502 17,733,480 18,587,210 20,527,967 21,008,696 21,133,526
Fire 9,742,147 10,058,363 10,337,851 10,825,964 11,295,623 12,492,842 13,028,146 13,065,768
Parks and recreation 4,112,071 4,164,247 4,220,079 4,210,463 4,478,311 5,107,579 5,757,363 5,687,527
Accounting/finance 1,721,239 1,851,988 1,841,475 1,843,810 1,893,389 2,231,952 2,473,024 2,428,055
Community development 7,536,269 7,897,167 7,181,397 6,293,156 6,573,917 6,921,352 7,584,142 7,243,744
Public works 5,627,020 6,404,132 6,742,355 7,706,209 8,616,348 8,314,596 8,282,184 8,035,626
Health 4,632,486 4,523,907 4,435,702 4,409,374 4,736,162 4,873,643 4,995.764 4,931,859
Traffic and transportation 2,138,240 1,983,322 2,181,799 2,527,270 2,590,309 2,679,026 2,499,869 2,525,097
Multi-Purpose Events Center 622,406 1,589,670 2,015,329 2,166,331 4,291,434 4,335,968 4,027,612 4,181,379
Interest and fees on long-term debt 905,959 921,705 843,358 721,762 1,308,748 1,405,383 1,620,854 1,781,245
Total governmental activities expenses 62,936,542 65,202,334 66,081,633 69,085,863 74,734,585 80,552,394 83,303,965 81,057.195
Business-type activities:
Golf 747,356 760,705 779,151 901,454 - - - -
Municipal Airport 220,970 250,807 243,414 281,117 276,368 310,980 289,195 337,946
Kickapoo Airport 295,987 338,957 377,299 574,929 966,961 1,245,021 1,354,624 1,108,515
C) Transit 1,101,145 1,028,491 1,240,131 1,280,540 1,373,283 1,793,369 1,616,322 1,602,362
CYISanitation 7,087,574 7,418,146 7,715.572 8,059,991 8,638,374 9,199,341 8,509,153 9,152,130
Water and Sewer 25,076,194 24,721,561 25,604,413 26,380,183 26,764.879 28,126,920 30,165,844 30,250,390
Stormwater drainage 10,633 112,082 125,989 328,833 355,697 407,035 477,415 785,543
Waterpark - - - - - - - 1,253,557
Total business-type activities expenses 34,539,859 34,630,749 36,085,969 37,807,047 38,375,562 41,082,666 42,412,553 44,490,443
Total primary government expenses $ 97,476,401 $ 99,833,083 $ 102,167,602 $ 106,892,910 $ 113,110,147 $ 121,635,060 $ 125,716,518 $ 125,547,638
Program Revenues
Governmental activities:
Charges for services:
Administrative services $ 3,259,315 $ 3,631,020 $ 3,640,715 $ 3,691,411 $ 3,327,519 $ 3,211,546 $ 4,267,891 $ 4,414,667
Police 401,168 372,510 361,201 402,583 700,216 600,020 470,020 495,459
Fire 2,062 3,233 1,458 5,195 5,434 2,612 4,369 2,042
Parks and recreation 513,109 479,204 455,861 473,121 443,827 517,707 513,682 515,008
Community development 771,418 1,265,897 1,078,293 1,195,203 1,138,671 1,124,534 891,803 1,042,574
Public works - - - 48,871 7,286 100,000 165,363 2,600
Health 590,441 668,491 711,399 807,002 803,115 864,874 888,890 908,415
Traffic and transportation 202,392 214,266 195,585 292,234 212,911 154,941 164,350 201,961
Multi-Purpose Events Center - - 2,215,411 2,141,584 1,789,269 1,767,398
Operating grants and contributions 9,469,723 11.968,460 14,734,689 11,109,618 12,298,595 11,468,654 10,891,021 14,606,807
Capital grants and contributions 2,608,168 6,970,138 1,176,107 2,667,389 3,218,003 3,097,319 1,631,109 6,145,852
Total governmental activities program revenues 17,817,796 25,573,219 22,355,308 20,692,627 24,370,988 23,283,791 21,677,767 30,102,783
EXHIBIT 1-2
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET ASSETS(CONrD.)
LAST EIGHT FISCAL YEARS(UNAUDITED)
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-10
Business-type activities:
Charges for services:
Golf 687,153 677,498 622,434 828,055 - - - -
Municipal Airport 359,006 416,573 446,388 448,384 441,471 430,561 544,332 624,298
KickapooAirport 348,512 385,871 270,194 347,761 789,522 1,025,300 745,444 798,034
Transit 160,749 194,388 162,018 214,771 206,109 224.856 229,483 274,577
Sanitation 8,783,064 8,920,801 9,133,955 9,517,673 9,917,386 10,939,617 12,025,478 11,826,882
Water and Sewer 28,488,384 27,857,286 30,208,286 33,436,585 30,031,969 33,042,845 33,888,553 33,264,688
Stormwater drainage 1,035,683 1,036,450 1,042,278 1,209,196 1,267,533 1,318,340 1,252,544 1,272,430
Waterpark - - - - - - - 1,283,919
Operating grants and contributions 817,451 937,025 926,088 1,251,770 1,026,685 1,389,202 1,142,191 2,312,062
Capital grants and contributions 879,222 376,437 862,398 455,217 580,729 1,021,644 456,743 108,471
Total business-type activities program revenues 41,559,224 40,802,329 43,674,039 47,709,412 44,261,404 49,392,365 50,284,768 51,765,361
Total primary government program revenues $ 59,377,020 $ 66,375,548 $ 66,029,347 $ 68,402,039 $ 68,632,392 $ 72,676,156 $ 71,962.535 $ 81,868,144
Net(Expense)/Revenue
Governmental activities $ (45,118,746) $ (39,629,115) $ (43,726,325) $ (48,393,236) $ (50,363,597) $ (57,268,603) $ (61,626,198) $ (50,954,412)
Business-type activities 7,019,365 6,171,580 7,588,070 9,902,365 5,885,842 8,309,699 7,872,215 7,274,918
O Total primary government net expense $ (38,099,381) $ (33,457,535) $ (36,138,255) $ (38,490,871) $ (44,477,755) $ (48,958,904) $ (53,753,983) $ (43,679,494)
0)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property tax $ 20,890,964 $ 21,404,857 $ 22,578.788 $ 23,522,746 $ 24,975,158 $ 26,160,116 $ 27,869,849 $ 27,570,092
Sales tax 16,598,733 17,192,703 17,845,505 19,272,204 20,068,529 21,353,896 20,451,906 20,033,820
Franchise fees 5,286,038 5,218,860 5,191.741 5,740,202 5,780,311 5,598,406 5,570,399 5,593,573
Hotel occupancy tax 1,221,620 1,278,102 1,262.518 1,333,747 1,417,397 1,560,353 1,506,423 1,553,674
Beverage tax 196,663 202,841 204,727 234,075 236,367 251,386 249,121 246,541
Bingo tax 230,280 209,825 164.128 178,666 166,223 168,864 109,739 77,883
Investment earnings 404,146 379,150 754,935 1,409,188 2,684,388 1,727,671 415,156 129,653
Gain(loss)on sale of capital assets 3,045 (24,061) - - - (397,404) - -
Miscellaneous 309,168 482,908 166,648 172,500 712,358 242,811 134,983 160,949
Transfers 5,748,106 2.241,628 473,644 2,482,958 1,972,819 525,898 (2,439,625) (8,802,705)
Total governmental activities 50,888,763 48,586,813 48,642,634 54,346,286 58,013,550 57,191,997 53,867,951 46,563,480
Business-type activities:
Investment earnings 2,238,809 1,764,311 3,417,875 5,094,418 5,575,703 2,949,036 602,872 194,428
Miscellaneous 1,167,155 518,133 (73,611) - 199,174 - 147,536 153,223
Transfers (3,698,431) (2,241,628) (473,644) (2,482,958) (1,972,819) (525,898) 2,439,625 8,802,705
Total business-type activities (292,467) 40,816 2,870,620 2,611,460 3.802.058 2.423,138 3,190,033 9,150,356
Total primary government $ 50,596,296 $ 48,627,629 $ 51,513,254 $ 56,957,746 $ 61,815,608 $ 59.615,135 $ 57,057,984 $ 55,713,836
Change in Net Assets
Governmental activities $ 5,770,017 $ 8,957,698 $ 4,916,309 $ 5,953,050 $ 7,649,953 $ (76,606) $ (7,758,247) $ (4,390,932)
Business-type activities 6,726,898 6,212,396 10,458,690 12,513,825 9,687,900 10,732,837 11,062,248 16,425,274
Total primary government $ 12,496,915 $ 15,170,094 $ 15,374,999 $ 18,466,875 $ 17.337,853 $ 10,656,231 $ 3.304,001 $ 12,034,342
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
CITY OF WICHITA FALLS, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
2000-2001 2001-2002 2002-2003 2003-2004
General Fund
Reserved $ 1,328,430 $ 685,011 $ 1,914,615 $ 1,516,079
Unreserved 8,750,034 8,367,731 8,368,357 9,507,595
Total general fund $ 10,078,464 $ 9,052,742 $ 10,282,972 $ 11,023,674
All other Governmental Funds
Reserved $ 1,853,775 $ 1,937,961 $ 3,240,727 $ 11,092,483
Unreserved, reported in:
Special revenue funds 4,485,021 5,769,119 4,163,834 4,673,755
Capital projects funds 19,496,303 7,064,161 3,205,633 3,394,688
Total all other governmental funds $ 25,835,099 $ 14,771,241 $ 10,610,194 $ 19,160,926
107
EXHIBIT 1-3
Fiscal Year
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-10
$ 2,439,595 $ 2,393,129 $ 3,161,776 $ 2,686,432 $ 1,499,613 $ 1,392,329
10,608,472 11,503,795 15,569,840 14,500,836 13,042,044 14,294,519
$ 13,048,067 $ 13,896,924 $ 18,731,616 $ 17,187,268 $ 14,541,657 $ 15,686,848
$ 5,102,543 $ 3,179,513 $ 2,371,514 $ 2,888,944 $ 6,254,620 $ 11,753,749
4,299,100 4,746,615 7,089,584 6,180,559 4,808,127 1,713,168
3,738,484 4,857,539 23,458,510 15,033,333 10,963,970 1,850,806
$ 13,140,127 $ 12,783,667 $ 32,919,608 $ 24,102,836 $ 22,026,717 $ 15,317,723
CITY OF WICHITA FALLS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
2000-2001 2001-2002 2002-2003 2003-2004
Revenues
Taxes $ 40,422,984 $ 41,798,664 $ 44,425,106 $ 45,512,949
Charges for services 1,825,170 2,153,223 2,338,678 2,452,353
Licenses and permits 1,892,099 1,918,690 2,001,117 2,292,695
Fines and forfeitures 1,404,205 1,797,795 1,773,449 2,189,001
Intergovernmental revenue 8,207,044 9,000,057 9,469,723 11,444,840
Contributions 3,451,239 837,213 2,698,930 7,493,758
Miscellaneous revenue 2,906,992 1,833,247 1,539,063 2,007,303
Total revenues 60,109,733 59,338,889 64,246,066 73,392,899
Expenditures
Administrative services 8,592,476 8,491,188 9,169,430 9,330,631
Police 14,062,836 14,716,145 15,586,666 15,996,964
Fire 8,447,773 9,084,534 9,456,869 9,851,203
Parks and recreation 3,626,134 3,821,791 3,920,357 4,016,394
Accounting/finance 1,489,661 1,702,554 1,604,484 1,757,006
Community development 5,635,484 5,970,759 7,569,296 8,137,672
Public works 4,760,212 6,204,297 5,311,740 4,488,704
Health 3,872,347 4,146,598 4,513,769 4,452,507
Traffic and transportation 1,778,879 2,261,335 1,923,176 1,768,336
Multi-Purpose Events Center - - 57,848 783,244
Capital outlay 4,852,858 13,910,949 10,333,520 8,235,652
Debt service- principal 1,690,000 1,805,000 2,120,000 2,970,000
Debt service- interest 875,128 1,181,524 924,557 900,526
Total expenditures 59,683,788 73,296,674 72,491,712 72,688,839
Excess of revenues over(under)
expenditures 425,945 (13,957,785) (8,245,646) 704,060
Other Financing Sources (Uses)
Transfers in 14,439,112 3,450,446 6,805,264 7,142,007
Transfer out (9,310,328) (1,436,580) (2,437,133) (6,393,643)
Proceeds from general obligation bonds 10,218,670 - 2,450,000 7,549,000
Payment to refunded bonds escrow agent (3,025,400) - (2,450,000) -
Total other financing sources (uses) 12,322,054 2,013,866 4,368,131 8,297,364
Net change in fund balances $ 12,747,999 $(11,943,919) $ (3,877,515) $ 9,001,424
Debt service as a percentage of
noncapital expenditures 4.68% 5.03% 4.90% 6.01%
108
EXHIBIT 1-4
Fiscal Year
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-10
$ 47,236,518 $ 50,228,509 $ 52,637,318 $ 55,155,574 $ 55,752,982 $ 55,006,901
2,480,148 2,597,044 3,202,699 3,270,930 3,689,717 3,715,832
2,218,119 2,206,023 2,215,813 2,116,140 1,887,434 1,990,328
2,161,782 2,481,816 2,127,062 1,964,391 1,970,612 2,214,884
13,003,816 9,682,237 11,136,433 8,428,310 9,287,371 14,783,860
2,906,980 4,094,770 4,366,961 6,137,663 3,234,759 5,711,904
1,985,383 2,816,865 6,664,315 5,369,689 3,804,438 3,597,927
71,992,746 74,107,264 82,350,601 82,442,697 79,627,313 87,021,636
8,701,521 10,103,642 9,965,494 10,873,576 11,315,351 9,694,632
16,731,373 17,228,066 18,068,168 19,524,824 20,182,150 20,182,168
10,196,605 10,739,651 11,238,422 12,206,774 12,833,183 12,671,757
4,106,476 4,110,013 4,373,460 4,841,597 5,457,410 5,359,692
1,754,186 1,765,350 1,811,690 2,087,572 2,327,608 2,279,241
7,282,012 6,355,136 6,652,162 6,925,581 7,433,617 7,315,631
4,653,539 5,128,384 6,038,790 5,606,784 5,452,172 5,355,585
4,391,270 4,407,758 4,728,414 4,775,418 4,950,213 4,896,841
1,937,424 2,309,854 2,355,249 2,459,070 2,292,890 2,245,038
1,205,153 1,355,846 3,498,189 3,506,091 3,208,713 3,358,470
10,171,128 7,244,115 7,093,636 15,219,394 12,088,928 8,758,421
3,050,000 3,190,000 2,510,000 2,395,000 2,065,000 2,240,000
852,624 731,921 1,271,106 1,456,540 1,364,831 1,781,176
75,033,311 74,669,736 79,604,780 91,878,221 90,972,066 86,138,652
(3,040,565) (562,472) 2,745,821 (9,435,524) (11,344,753) 882,984
6,922,585 3,282,459 5,922,091 7,268,938 5,530,309 3,930,000
(7,878,421) (2,227,586) (5,401,565) (8,194,534) (9,433,265) 5,676,896
- 21,702,048 - 10,840,779 (16,053,685)
(955,836) 1,054,873 22,222,574 (925,596) 6,937,823 (6,446,789)
$ (3,996,401) $ 492,401 $ 24,968,395 $(10,361,120) $ (4,406,930) $ (5,563,805)
6.02% 5.82% 5.21% 5.02% 4.35% 5.20%
EXHIBIT 1-5
CITY OF WICHITA FALLS, TEXAS
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS-
LAST TEN FISCAL YEARS(UNAUDITED)
Fiscal Hotel
Year Property Sales Franchise Occupancy Beverage Bingo Total
2000-2001 $18,049,023 $16,323,752 $ 4,612,917 $1,088,850 $ 176,680 $ 171,763 $40,422,985
2001-2002 19,055,248 16,222,571 4,933,338 1,201,114 188,517 197,875 41,798,663
2002-2003 20,891,772 16,598,733 5,286,038 1,221,620 196,663 230,280 44,425,106
2003-2004 21,410,615 17,192,706 5,218,860 1,278,102 202,841 209,825 45,512,949
2004-2005 22,567,902 17,845,502 5,191,741 1,262,518 204,727 164,128 47,236,518
2005-2006 23,469,615 19,272,204 5,740,202 1,333,747 234,075 178,666 50,228,509
2006-2007 24,968,481 20,068,529 5,780,311 1,417,397 236,367 166,233 52,637,318
2007-2008 26,217,499 21,353,896 5,598,406 1,565,523 251,386 168,864 55,155,574
2008-2009 27,865,394 20,451,906 5,570,399 1,506,423 249,121 109,739 55,752,982
2009-2010 27,501,412 20,033,820 5,593,573 1,513,484 246,541 77,883 54,966,713
109
EXHIBIT 1-6
CITY OF WICHITA FALLS, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY-
LAST TEN FISCAL YEARS(UNAUDITED)
Personal Ratio of Total
Real Property Property Total Total Assessed to
Fiscal Assessed Assessed Assessed Direct Estimated Total Estimated
Year Value Value Value Tax Rate Actual Value Actual Value
2000-2001 $2,550,564,079 $ 622,493,821 $3,173,057,900 $0.55194 $3,173,057,900 100.00%
2001-2002 2,671,429,859 667,334,298 3,338,764,157 0.55194 3,338,764,157 100.00%
2002-2003 2,775,175,780 652,625,915 3,427,801,695 0.55194 3,427,801,695 100.00%
2003-2004 2,901,708,013 629,284,576 3,530,992,589 0.59246 3,530,992,589 100.00%
2004-2005 3,047,463,928 632,056,253 3,679,520,181 0.59246 3,679,520,181 100.00%
2005-2006 2,992,717,987 726,512,178 3,719,230,165 0.59246 3,719,230,165 100.00%
2006-2007 3,208,236,037 744,353,082 3,952,589,119 0.59246 3,952,589,119 100.00%
2007-2008 3,389,094,572 802,449,151 4,191,543,723 0.59246 4,191,543,723 100.00%
2008-2009 3,553,825,553 877,030,381 4,430,855,934 0.59526 4,430,855,934 100,00%
2009-2010 3,622,501,148 803,697,677 4,426,198,825 0.60526 4,426,198,825 100.00%
110
EXHIBIT 1-7
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES-
LAST TEN FISCAL YEARS (UNAUDITED)
Fiscal City of Wichita Burkburnett City View Iowa Park Wichita Falls
Year Wichita Falls County I.S.D. (1) I.S.D. (2) C.I.S.D. (3) I.S.D. (4) Totals
Tax Rates Per$100 Valuation
2000-2001 $ 0.55 $ 0.40 $ 1.59 $ 1.69 $ 1.40 $ 1.54 $ 7.17
2001-2002 0.55 0.40 1.61 1.69 1.40 1.54 7.19
2002-2003 0.59 0.42 1.63 1.69 1.61 1.56 7.50
2003-2004 0.59 0.45 1.64 1.69 1.58 1.56 7.51
2004-2005 0.59 0.46 1.64 1.73 1.58 1.56 7.56
2005-2006 0.59 0.46 1.63 1.75 1.58 1.56 7.57
2006-2007 0.59 0.45 1.50 1.60 1.45 1.39 6.98
2007-2008 0.59 0.45 1.28 1.27 1.12 1.19 5.90
2008-2009 0.60 0.43 1.31 1.26 1.12 1.20 5.92
2009-2010 0.61 0.48 1.31 1.40 1.15 1.20 6.15
Notes:
(1) Burkburnett Independent School District-25%in Wichita Falls city limits
(2) City View Independent School District-90%in Wichita Falls city limits
(3) Iowa Park Consolidated Independent School District-2%in Wichita Falls city limits
(4) Wichita Falls Independent School District-99%in Wichita Falls city limits
111
EXHIBIT 1-8
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
SEPTEMBER 30, 2010
2009-10 2000-2001
Percentage Percentage
Taxable of Total Taxable of Total
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Valuation Value Rank Valuation
Sikes Senter LP $ 52,964,416 1 1.20% $ - N/A 0.00%
Oncor Electric Delivery Co 39,368,627 2 0.89% 41,979,959 2 1.32%
Wal-Mart Stores Texas LP 25,904,572 3 0.59% 16,561,522 4 0.52%
Southwestern Bell 25,520,925 4 0,58% 45,752,093 1 1.44%
Wal-Mart Stores East Inc 18,854,411 5 0.43% - N/A 0.00%
Quail Creek Crossing Ltd 13,672,000 6 0.31% - N/A 0.00%
Lowe's Home Center 12,306,384 7 0.28% 12,852,479 7 0.41%
North American Pipe Corp 11,960,975 8 0.27% - N/A 0.00%
Clinics of North Texas LLP 11,352,391 9 0.26% 14,100,969 6 0.44%
Wal-Mart Real Estate Business Trust 11,429,636 10 0.26% - N/A 0.00%
Sikes Coyote Mall LP - N/A 0.00% 38,595,000 3 1.22%
Time Warner - N/A 0.00% 15,280,380 5 0.48%
Panhandle Manufacturing - N/A 0.00% 10,330,374 8 0.33%
Winn Dixie - N/A 0.00% 10,253,236 9 0.32%
United Supermarkets - N/A 0.00% 9,583,059 10 0.30%
Totals $ 223,334,337 5.05% $ 215,289,071 6.78%
112
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EXHIBIT 1-9
CITY OF WICHITA FALLS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS -
LAST TEN FISCAL YEARS (UNAUDITED)
Collected within the
Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date
Fiscal for the Percentage in Subsequent Percentage
Year Fiscal Year Amount of Levy Years Amount of Levy
2000-2001 $ 16,791,261 $ 16,365,706 97.47% $ 359,923 $ 16,725,629 99.61%
2001-2002 17,635,425 17,210,516 97.59% 365,040 17,575,556 99.66%
2002-2003 19,439,511 18,962,880 97.55% 402,720 19,365,600 99.62%
2003-2004 20,039,039 19,646,529 98.04% 304,676 19,951,205 99.56%
2004-2005 20,919,473 20,494,272 97.97% 297,428 20,791,700 99.39%
2005-2006 22,034,951 21,612,888 98.08% 277,420 21,890,308 99.34%
2006-2007 23,421,270 23,043,185 98.39% 235,949 23,279,134 99.39%
2007-2008 24,833,219 24,408,683 98.29% 218,282 24,626,965 99.17%
2008-2009 26,375.113 25,905,854 98.22% 156,865 26,062,719 98.82%
2009-2010 26,752,242 26,166,043 97.81% - 26,166,043 97.81%
113
CITY OF WICHITA FALLS, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE -
LAST TEN FISCAL YEARS (UNAUDITED)
Governmental Activities
General Combination Utility
Fiscal Obligation Tax and Note System
Year Bonds Revenue Bonds Payable Revenue Bonds
2000-2001 $ 19,215,000 $ - $ - $ 176,649,193
2001-2002 17,410,000 - - 172,349,440
2002-2003 15,290,000 - 54,561 168,368,339
2003-2004 13,060,000 6,810,000 234,186 144,747,898
2004-2005 10,725,000 6,095,000 178,149 126,538,189
2005-2006 8,270,000 5,360,000 120,443 124,824,242
2006-2007 7,390,000 25,396,016 61,093 123,869,328
2007-2008 6,480,000 23,867,228 - 121,887,613
2008-2009 5,535,000 33,524,726 - 119,841,741
2009-2010 4,790,000 35,918,687 107,501,744
114
EXHIBIT 1-10
Business-type Activities
Combination Capital Total Percentage
Tax and Note Lease Primary of Personal Per
Revenue Bonds Payable Payable Government Income Capita
$ - $ 856,671 $ - $ 196,720,864 5.25% $ 1,887.97
832,565 - 190,592,005 4.95% 1,823.08
- 807,674 - 184,520,574 4.70% 1,762.17
19,900,889 781,974 - 185,534,947 4.56% 1,769.98
33,975,588 755,438 - 178,267,364 4.16% 1,667.98
30,961,933 728,039 - 170,264,657 3.81% 1,581.87
27,864,844 699,748 - 185,281,029 4.01% 1,721.38
24,479,232 670,537 - 177,384,610 3.71% 1,644.78
21,004,768 670,537 722,464 181,299,236 7.34% 1,711.42
27,744,748 609,234 549,621 177,114,034 8.03% 1,694.01
EXHIBIT 1-11
CITY OF WICHITA FALLS, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING -
LAST TEN FISCAL YEARS (UNAUDITED)
Governmental Activities Percentage of
General Combination Actual Taxable
Fiscal Obligation Tax and Value of Per
Year Bonds Revenue Bonds Total Property Capita
2000-2001 $ 19,215,000 $ - $ 19,215,000 0.61% $ 184.41
2001-2002 17,410,000 - 17,410,000 0.52% 166.53
2002-2003 15,290,000 - 15,290,000 0.45% 146.02
2003-2004 13,060,000 6,810,000 19,870,000 0.56% 189.56
2004-2005 10,725,000 6,095,000 16,820,000 0.46% 157.38
2005-2006 8,270,000 5,360,000 13,630,000 0.37% 126.63
2006-2007 7,390,000 25,396,016 32,786,016 0.83% 304.60
2007-2008 6,480,000 23,867,228 30,347,228 0.72% 281.39
2008-2009 5,535,000 33,524,726 39,059,726 0.88% 368.71
2009-2010 4,790,000 35,918,687 40,708,687 0.92% 389.36
115
EXHIBIT 1-12
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT(UNAUDITED)
SEPTEMBER 30, 2010
Percentage Amount
Gross Applicable Applicable
General Bonded to City of to City of
Debt(1) Wichita Falls(2) Wichita Falls
Direct:
City of Wichita Falls $ 40,708,687 100% $ 40,708,687
Overlapping:
Wichita County 2,015,000 100% 2,015,000
Burkburnett Independent School District 10,910,160 25% 2,727,540
City View Independent School District 8,739,744 90% 7,865,770
Iowa Park Consolidated Independent
School District 3,993,827 2% 79,877
Wichita Falls Independent School District 69,700,802 99% 69,003,794
Total overlapping 95,359,533 81,691,980
Total direct and overlapping bonded debt $ 136,068,220 $ 122,400,667
Sources:
(1) Listed taxing jurisdictions
(2) City of Wichita Falls Planning Department
116
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN -
LAST TEN FISCAL YEARS(UNAUDITED)
Total assessed property value per 2009 tax roll $ 4,426,198,825
Maximum tax rate' $ 2.25/$100
Current tax rate for 2007 tax year .60526/$100
Maximum tax rate in excess of 2007 tax rate 1.64474/$100
Total legal debt margin $ 72,799,463
2000-2001 2001-2002 2002-2003 2003-2004
Assessed value $ 3,173,057,900 $ 3,338,764,157 $ 3,427,801,695 $ 3,530,992,589
Maximum tax rate $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100
Current tax rate .55194/$100 .55194/$100 .59246/$100 .59246/$100
Maximum tax rate in excess of current rate 1.69806/$100 1.69806/$100 1.65754/$100 1.65754/$100
Total legal debt margin $ 53,880,427 $ 56,694,219 $ 56,817,184 $ 58,527,615
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$100 assessed valuation. The 2007 tax rate is$.59246
per$100 assessed valuation.
Maximum tax levy established by City Charter
117
EXHIBIT 1-13
Fiscal Year
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
$ 3,679,520,181 $ 3,719,230,165 $ 3,952,589,119 $ 4,191,543,723 $ 4,430,855,934 $ 4,426,198,825
$ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100
.59246/$100 .59246/$100 .59246/$100 .59246/$100 .59526/$100 .60526/$100
1.65754/$100 1.65754/$100 1.65754/$100 1.65754/$100 1.65474/$100 1.64754/$100
' $ 60,989,519 $ 61,647,728 $ 65,515,746 $ 69,476,514 $ 73,319,145 $ 72,799,463
1
CITY OF WICHITA FALLS, TEXAS
PLEDGED REVENUE COVERAGE -WATER AND SEWER REVENUE BONDS -
LAST TEN FISCAL YEARS (UNAUDITED)
Net Revenue
Fiscal Gross Operating Available For
Year Revenues(l) Expenses (2) Debt Service
2000-2001 $ 26,832,875 $ 14,507,635 $ 12,325,240
2001-2002 29,768,543 13,569,831 16,198,712
2002-2003 30,052,619 14,105,694 15,946,925
2003-2004 29,021,062 14,100,412 14,920,650
2004-2005 29,680,713 15,693,788 13,986,925
2005-2006 32,976,347 16,986,210 15,990,137
2006-2007 29,598,709 17,273,862 12,324,847
2007-2008 33,514,257 17,896,263 15,617,994
2008-2009 33,662,220 19,546,745 14,115,475
2009-2010 33,264,688 19,924,687 13,340,001
Notes:
(1) Includes operating revenues exclusive of water sales to West Texas Utilities and
capital contributions from developers of the Water and Sewer Fund (see Exhibit H-3).
(2) Includes operating expenses of the Water and Sewer Fund exclusive of depreciation
and amortization (see Exhibit H-3).
(3) Excludes bond premium amortization.
118
EXHIBIT 1-14
Debt Service Requirement
Principal (3) Interest Total Coverage
$2,555,000 $ 2,567,085 $ 5,122,085 2.41
4,220,000 8,087,504 12,307,504 1.32
3,895,000 8,412,955 12,307,955 1.30
4,070,000 8,403,349 12,473,349 1.20
4,385,000 8,078,748 12,463,748 1.12
4,505,000 7,600,831 12,105,831 1.32
4,985,000 6,608,627 11,593,627 1.06
5,165,000 6,424,544 11,589,544 1.35
5,410,000 6,185,216 11,595,216 1.22
5,615,000 5,879,680 11,494,680 1.16
EXHIBIT 1-15
CITY OF WICHITA FALLS, TEXAS
DEMOGRAPHIC STATISTICS-
LAST TEN FISCAL YEARS(UNAUDITED)
Per
Capita
Fiscal Estimated Personal Personal Median Education School Unemployment
Year Population(1) Income Income(2) Age Level(3) Enrollment(3) Rate(4)
2000-2001 104,197 $ 3,747,004,498 $ 35,961 35.4 13.1 13,896 3.9%
2001-2002 104,544 3,849,710,474 36,824 35.4 13.1 14,059 6.3%
2002-2003 104,712 3,929,158,919 37,523 35.4 13.1 13,765 5.5%
2003-2004 104,823 4,067,057,042 38,799 35.4 13.1 13,857 3.6%
2004-2005 106,876 4,287,700,173 40,118 35.4 13.1 13,755 4.8%
2005-2006 107,635 4,464,967,184 41,482 35.4 13.1 13,743 4.2%
2006-2007 107,635 4,616,776,069 42,893 34.9 13.1 14,707 4.1%
2007-2008 107,847 4,783,148,919 44,351 34.9 13.3 14,533 5.5%
2008-2009 105,935 2,470,050,408 23,317 33.2 13.5 15,473 8.2%
2009-2010 104,553 2,205,022,770 21,090 32.3 13.3 16,217 7.3%
Sources:
(1) City of Wichita Falls Planning Department for all years,except 2000-01 from U.S. Bureau of Census
(2) C.A.C.I. Marketing Services
(3) Wichita Falls I.S.D.-Educational level is grade equivalent of graduating senior
(4) Texas Workforce Commission
119
EXHIBIT 1-16
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO(UNAUDITED)
SEPTEMBER 30, 2010
2009-2010 2000-2001
Percentage Percentage
of Total of Total
City City
Employer Employees Rank Employment Employees Rank Employment
Sheppard Air Force Base 12,272 1 17.16% 13,088 1 N/A
Wichita Falls ISD 2,059 2 2.88% 1,700 3 N/A
North Texas State Hospital 1,974 3 2.76% 1,055 6 N/A
United Regional Health Care System 1,778 4 2.49% 2,100 2 N/A
City of Wichita Falls 1,477 5 2.07% 1,394 4 N/A
Midwestern State University 1,284 6 1.80% - N/A -
James B. Allred Prison Unit 971 7 1.36% 837 8 N/A
Work Services Corporation 730 8 1.02% 1,078 5 N/A
Howmet Corporation 704 9 0.98% 738 9 N/A
AT&T Wireless 538 10 0.75% - N/A -
Stanley Works, Mechanics Division - N/A - 550 10 N/A
Totals 23,813 33.27% 22,540 0.00%
Sources:
1998-1999 data is from Texas Workforce Commission. 2008-2009 data is from Wichita Falls BCI.
Note:
The City was unable to locate data for the principal employers for 1999-2000. Therefore, 1998-1999 data is included.
120
CITY OF WICHITA FALLS, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
2000-2001 2001-2002 2002-2003 2003-2004
Administrative services 84.3 87.5 91.6 92.3
Police 264.5 268.5 278.5 285.5
Fire 156.0 156.0 156.0 156.0
Parks and recreation 71.1 75.0 74.7 75.8
Accounting/finance 21.5 22.6 22.6 22.4
Community development 35.9 36.4 39.4 38.7
Public works 79.0 79.3 79.6 80.0
Health 82.8 81.8 80.0 84.1
Traffic and transportation 51.1 51.4 51.4 51.3
Multi-Purpose Events Center - - - -
Water and sewer 162.6 166.9 166.9 169.2
Sanitation 82.9 81.0 81.0 81.0
Golf 20.4 20.3 20.3 19.8
Municipal Airport 1.0 1.0 1.0 1.0
Kickapoo Airport 5.3 6.5 6.5 4.8
Transit 19.6 18.0 17.0 19.3
Stormwater Drainage - - - 0.3
121
EXHIBIT 1-17
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
95.5 99.9 103.0 105.1 104.6 102.0
286.5 286.5 294.0 293.0 294.0 295.0
156.0 156.0 162.0 164.0 164.0 164.0
75.8 75.8 75.8 82.9 82.9 84.8
22.4 22.4 24.5 25.5 26.0 26.0
38.7 38.7 40.7 40.5 41.0 40.1
80.2 80.2 80.2 80.2 80.8 80.8
76.9 77.1 74.9 72.5 69.0 68.4
51.5 51.5 52.6 52.6 50.6 51.7
- - 22.4 22.8 23.0 23.0
172.0 177.5 179.5 179.5 179.9 180.1
81.0 81.0 81.0 82.0 82.5 82.5
19.7 19.2 19.4 - - -
1.0 1.0 1.6 1.6 1.6 1.6
5.0 5.0 4.4 4.4 4.4 5.4
19.3 19.3 19.2 19.6 22.1 21.6
1.3 1.3 1.3 1.3 1.3 1.3
CITY OF WICHITA FALLS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
2000-2001 2001-2002 2002-2003 2003-2004
General government
Building permits issued 10,541 9,177 10,270 10,159
Building inspections conducted - 10,076 12,276 12,600
Police
Physical arrests 5,406 7,992 7,927 7,847
Parking violations 1,009 1,024 558 1,284
Traffic violations 17,553 18,978 19,946 23,385
Fire
Emergency responses 7,484 7,542 7,040 7,535
Fires extinguished 864 663 775 668
Inspections 850 850 850 850
Refuse collection
Refuse collected (tons) 75,229 73,435 74,426 82,973
Recyclables collected - - - 1,926
Library
Volumes in collection 137,502 150,686 157,641 210,976
Total volumes borrowed - - 292,359 304,644
Water
New connections 245 292 327 335
Water main breaks 996 795 737 691
Average daily consumption 24,280 21,700 21,900 20,400
(thousands of gallons)
Wastewater
Average daily sewage treatment 13,224 12,560 12,348 11,026
(thousands of gallons)
Transit
Total route miles 422,673 424,115 407,121 -
Passengers 223,502 196,217 245,908 -
Notes:
Data was not available for all items for all years. The City will provide more data as it becomes available.
122
EXHIBIT 1-18
Fiscal Year
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
8,904 7,553 7,813 7,420 6,769 6,802
13,092 12,591 12,048 11,425 9,565 11,038
8,284 8,571 7,279 6,752 7,186 6,235
1,615 327 383 197 - 109
21,075 24,126 17,904 16,236 23,253 25,558
7,677 8,234 8,634 8,684 8,687 8,693
757 792 554 1,340 718 654
850 850 900 2,647 3,250 3,281
79,555 78,165 182,855 168,681 161,243 156,630
2,328 2,018 19,034 21,624 22,010 16,923
225,941 172,391 179,728 184,231 185,009 185,009
295,088 293,884 302,565 352,408 368,685 368,685
312 325 310 212 146 48
573 881 741 898 872 724
22,100 23,680 19,936 22,511 19,200 19,851
12,404 11,097 13,930 11,410 7,670 12,435
450,938 435,446 476,758 488,842 530,771 536,181
247,303 229,601 294,670 324,666 327,463 340,181
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSET TA S TISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS(UNAUDITED)
2000-2001 2001-2002 2002-2003 2003-2004
Police
Stations 1 1 1 1
Patrol units - - _ _
Fire stations 8 8 8 8
Refuse collection
Collection trucks - - _ _
Other public works
Streets(miles)) 542 542 542 542
Streetlights 7,377 7,457 7,600 7,738
Traffic signals - - 109 111
Parks and recreation
Acreage 1,100 1,200 1,200 1,100
Playgrounds 39 41 43 45
Golf courses 1 1 1 1
Water
Water mains(miles) 712 635 720 714
Fire hydrants - _ _ _
Storage capacity(thousands of gallons) - - - -
Wastewater
Sanitary sewers(miles) 506 516 506 508
Storm sewers(miles) 41 41 41 41
Treatment capacity(thousands of gallons) - - - -
Transit
Buses 12 12 12 12
Notes:
Data was not available for all items for all years. The City will provide more data as it becomes available.
123
EXHIBIT 1-19
Fiscal Year
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
1 1 1 1 1 1
- 114 114 103 105 115
8 8 8 8 8 8
- 34 34 36 36 36
585 585 587 515 529 514
7,825 7,926 7,922 7,976 8,203 7,958
111 102 98 102 104 104
1,200 1,200 1,200 1,200 1,200 1,200
47 47 47 47 40 39
1 1 1 1 1 1
566 830 846 720 720 572
- 6,000 6,019 2,264 2,264 2,545
- 14,000 21,500 21,000 22,500 37,000
529 529 531 538 550 543
96 96 96 117 117 97
- 56,600 21,410 21,410 22,800 21,410
12 12 12 12 12 14
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T E X A S
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Graphics
EXHIBIT J-1
CITY OF WICHITA FALLS, TEXAS
CASH AND INVESTMENTS
1 so-
140—/
120-----
p 1oo—'
80
cz
L
60—'�>
O
40— �rx
20—/
0
2006
2007 �
2008
September 30,
(UNAUDITED)
124
EXHIBIT J-2
CITY OF WICHITA FALLS, TEXAS
TOTAL BONDS PAYABLE
200
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O
Cz vF
_ r �
O
0
150
3
2006
2007
2008
2009
2010
September 30,
(UNAUDITED)
125
EXHIBIT J-3
CITY OF WICHITA FALLS, TEXAS
GENERAL OBLIGATION BONDS PAYABLE
25
20
U)
C
O
15 -
C
cz 10 —
O
5 —�
2006 --
2007
2008
September 30, 2009
2010
(UNAUDITED)
126
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EXHIBIT J-5
CITY OF WICHITA FALLS , TEXAS
GENERAL FUND Eouiry
zo
16
12
4 'EM
2006
2007
2008
September =r„ 2010 i
EXHIBIT J-6
CITY OF WICHITA FALLS, TEXAS
COMPARISON OF TAX LEVY AND COLLECTIONS
30
25 —/
20
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E
C 15 E
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M
O 10
I
0
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x..
2002 2003 -
2004 2005 Tax Levy
2006 2007 2008 Tax Collections
Years Ended September 30, 2009 2010
❑Tax Collections ❑Tax Levy
(UNAUDITED)
129
EXHIBIT J-7
CITY OF WICHITA FALLS, TEXAS
REVENUES BY SOURCE - FYE 9/30/10
Fines and forfeitures
2% ...xx;.......... Charges for services
ftir;f, 37%
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(UNAUDITED)
130
EXHIBIT J-8
CITY OF WICHITA FALLS, TEXAS
EXPENDITURES BY FUNCTION - FYE 9/30/10
Administrative Services Police
13% 13%
Debt Service Fire
7% 8%
Capital Outlay Parks and Recreation
6% 4%
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Health Public Works
30. 26%
(UNAUDITED)
131
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