2008 Comprehensive Annual Financial Report Comprehensive
Annual
Financial Report
City of
Wichita Falls,
Texas
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For Year Ended
September 30, 2008
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2008
ISSUED BY:
DEPARTMENT OF FINANCE
yC, S
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2008
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal i-vii
GFOA Certificate of Achievement viii
Organizational Chart ix
List of Principal Officials x
FINANCIAL SECTION
Independent Auditor's Report 1-2
Managements Discussion and Analysis 3-12
BASIC FINANCIAL STATEMENTS:
Statement of Net Assets A-1 13
Statement of Activities A-2 14
Balance Sheet-Governmental Funds A-3 15
Reconciliation of the Governmental Funds Balance Sheet to the Statement
of Net Assets A-4 16
Statement of Revenues, Expenditures and Changes in Fund Balances-
Governmental Funds A-5 17
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of the Governmental Funds to the Statement of Activities A-6 18
Statement of Fund Net Assets-Proprietary Funds A-7 19-20
Statement of Revenues, Expenses and Changes in Fund Net Assets-
Proprietary Funds A-8 21
Statement of Cash Flows- Proprietary Funds A-9 22-23
Statement of Fiduciary Assets and Liabilities A-10 24
Notes to the Financial Statements 25-54
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule- General Fund B-1 55
Notes to the Required Supplementary Information 56
Texas Municipal Retirement System-Analysis of Funding Progress-
Last Ten Plan Years B-2 57
Wichita Falls Firemen's Relief and Retirement Fund-Analysis of Funding Progress B-3 58
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2008
TABLE OF CONTENTS (CONTD.)
Exhibit Page
COMBINING FINANCIAL STATEMENTS:
Nonmajor Governmental Funds:
Combining Balance Sheet C-1 59
Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 60
Budgetary Comparison Schedule—Community Development Block Grant C-3 61
Budgetary Comparison Schedule—Section 8 Housing Fund C-4 62
Budgetary Comparison Schedule—Home Investment Partnership Agreement Fund C-5 63
Budgetary Comparison Schedule—Hotel/Motel Tax Fund C-6 64
Budgetary Comparison Schedule—Golf Fund C-7 65
Budgetary Comparison Schedule—MPEC Fund C-8 66
Budgetary Comparison Schedule—Debt Service Fund C-9 67
Nonmajor Enterprise Funds:
Combining Statement of Net Assets D-1 68
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets D-2 69
Combining Statement of Cash Flows D-3 70-71
Internal Service Funds:
Combining Statement of Net Assets E-1 72
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets E-2 73
Combining Statement of Cash Flows E-3 74
Agency Fund:
Statement of Changes in Assets and Liabilities F-1 75
Component Units:
Combining Statement of Net Assets G-1 76
Combining Statement of Activities G-2 77
SUPPORTING SCHEDULES:
Combined Schedule of Bonded Debt and Interest Maturities H-1 78
Combined Schedule of Bonds Payable H-2 79-83
Debt Service Coverage—Revenue Bonds H-3 84
Capital Assets Used in the Operation of Governmental Funds-
Schedule By Function and Activity H-4 85
Capital Assets Used in the Operation of Governmental Funds-
Schedule of Changes By Function and Activity H-5 86
Municipal Airport Fund—Capital Assets and Accumulated Depreciation H-6 87
Kickapoo Airport Fund—Capital Assets and Accumulated Depreciation H-7 88
Transit Fund—Capital Assets and Accumulated Depreciation H-8 89
Stormwater Drainage Fund-Capital Assets and Accumulated Depreciation H-9 90
Sanitation Fund—Capital Assets and Accumulated Depreciation H-10 91
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2008
TABLE OF CONTENTS (CONTD.).
Exhibit Page
Water and Sewer Fund—Capital Assets and Accumulated Depreciation H-11 92
Fleet Maintenance Fund—Capital Assets and Accumulated Depreciation H-12 93
Duplicating Services Fund—Capital Assets and Accumulated Depreciation H-13 94
Employee Benefit Trust Fund—Capital Assets and Accumulated Depreciation H-14 95
Wichita Falls Economic Development Corporation—Capital Assets and
Accumulated Depreciation H-15 96
STATISTICAL SECTION (UNAUDITED)
Net Assets By Component—Last Six Fiscal Years I-1 97
Changes in Net Assets—Last Six Fiscal Years 1-2 98-99
Fund Balances, Governmental Funds—Last Ten Fiscal Years 1-3 100
Changes in Fund Balances, Governmental Funds—Last Ten Fiscal Years 1-4 101
Tax Revenues By Source, Governmental Funds—Last Ten Fiscal Years 1-5 102
Assessed and Estimated Actual Value of Taxable Property—Last Ten Fiscal Years 1-6 103
Direct and Overlapping Property Tax Rates—Last Ten Fiscal Years 1-7 104
Principal Property Taxpayers—Current Year and Nine Years Ago 1-8 105
Property Tax Levies and Collections—Last Ten Fiscal Years 1-9 106
Ratios of Outstanding Debt by Type—Last Ten Fiscal Years 1-10 107
Ratios of General Bonded Debt Outstanding—Last Ten Fiscal Years 1-11 108
Direct and Overlapping Governmental Activities Debt 1-12 109
Computation of Legal Debt Margin—Last Ten Fiscal Years 1-13 110
Pledged Revenue Coverage—Water and Sewer Revenue Bonds—
Last Ten Fiscal Years 1-14 111
Demographic Statistics—Last Ten Fiscal Years 1-15 112
Principal Employers—Current Year and Nine Years Ago 1-16 113
Full-Time Equivalent City Government Employees by Function/Program—
Last Ten Fiscal Years 1-17 114
Operating Indicators by Function/Program—Last Ten Fiscal Years 1-18 115
Capital Asset Statistics by Function/Program—Last Ten Fiscal Years 1-19 116
Graphics:
Cash and Investments J-1 117
Total Bonds Payable J-2 118
General Obligation Bonds Payable J-3 119
Revenue Bonds Payable J-4 120
General Fund Equity J-5 121
Comparison of Tax Levy and Collections J-6 122
Revenues by Source—FYE 9/30/08 J-7 123
Expenditures by Function—FYE 9/30/08 J-8 124
General Governmental Revenues (General Fund Only) J-9 125
General Governmental Expenditures (General Fund Only) J-10 126
Introductory Section
Wicta
TEhiXAS
March 16,2009
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, 2008. 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, 2008, 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 auditors' report and is designed to complement this transmittal
letter and should be read in conjunction with it.
GENERAL INFORMATION-CITY OF WICHITA FALLS,TEXAS
The City of Wichita Falls is located 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
City manufacture fiberglass reinforcements, glass, automotive parts, 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 has a Multi-Purpose Events Center,which
1300 7th Street P.O.Box 1431 Wichita Falls,Texas 76307
includes a coliseum,exhibit hall,and an agricultural arena/show barn. The 2007 population for Wichita Falls,as
estimated by the City's Community Planning and Development Department, is 107,847, an increase of 3.50%
over the 2000 Census estimates,and an increase of 11.76%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, glass, and fiberglass
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.
In 2008,the City experienced relatively minor industrial development activity. The City continued to develop a
new industrial business park in the southeastern portion of the community,which is designed to attract industries
to Wichita Falls. In the last several years,over$4 million of 4A Economic Development Sales Tax Funds have
been committed to this project for land acquisition, development of streets, water and sewer lines, electricity
services,natural gas services, internet services,and landscaping. The Park is complete and is being marketed to
potential industries. In fact, in late 2007, a sale of 7 acres of land at the business park was made to Old
Dominion Freight Line as the first tenant of the Business Park. Although this is a relatively small development,
it does signify the start of things to come. The City and Board of Commerce and Industry were also
instrumentally involved in encouraging new construction or operational expansions of YTO USA,Tryer Process
Equipment,and Pratt Whitney Canada. A total of$1.77 million in 4A Economic Development Sales Tax Funds
were committed to these expansions for a total capital investment potential of approximately$13 million and the
creation of over 241 new jobs in the community.
Unfortunately, these efforts have been negatively impacted by the recent closure of the Saint-Gobain Vetrotex
America plant located in Wichita County. This plant closed in June 2008 and resulted in the loss of 720 jobs
and nearly$160 million of assessed property value.
In addition to providing cash incentives for industrial development,4A Economic Development Sales Tax Funds
continue to be used to improve economic development marketing efforts and workforce development. One piece
of the marketing initiative includes the Cities of Wichita Falls,Burkburnett,Iowa Park and Wichita County and is
designed to develop a regional advertising campaign and a national networking alliance. Industries targeted in
this initiative are Aerospace, Wind Energy,Tele-service, and General Manufacturing. Approximately$108,000
in sales tax funds were allocated to this effort in each of the last two fiscal years. Additionally,$50,000 has been
committed recently to hire a marketing firm to develop a city branding and city overview brochure. The 4A
Economic Development Sales Tax Corporation also approved $75,000 to establish a Workforce Development
11
Task Force to work with various non-profit and educational organizations to develop a suitable workforce for
industries.
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. One specific effort of this committee involves the
establishment of a new mission at SAFB to bring in 50 to 60 instructors and 1,200 to 1,400 students per year,
beginning in October 2010 for cyber training. The facility identified by the Air Force to conduct this training
requires some alterations,which has been funded at an estimated cost of$450,000.
Although the value of residential and commercial construction permits in 2007-08 declined from the prior fiscal
year,building activity remained fairly strong. The value of residential and commercial construction permits was
$36,111,731 and $63,477,028, respectively. It should be noted, however, that this is the second consecutive
fiscal year that residential construction has declined. There were several commercial construction permits issued
above$1 million. Those permits include:
• Cunningham School—A total of 12,164 sq.ft.addition,with an estimated value of $2,400,000.
• Jefferson School—A total of 12,876 sq.ft.addition,with an estimated value of$1,975,000.
• Fain School—A total of 9,200 sq.ft.addition,with an estimated value of$1,775,000.
• Fowler School—A total of 6,784 sq.ft.addition,with an estimated value of$1,112,000.
• West Foundation School—A total of 17,036 sq. ft.addition,with an estimated value of$2,100,000.
• McDonald's—A total of 3,899 sq.ft.new construction,with an estimated value of$1,000,000.
• Our Lady Queen Of Peace Church — A total of 20,900 sq. ft. addition, with an estimated value of
$4,200,000.
• Fire Station#8—A total of 6,952 sq.ft.new construction,with an estimated value of$1,300,000.
• Old Dominion—A total of 12,177 sq.ft.new construction,with an estimated value of$2,787,000.
• Soft Ball Complex—A total of 3,222 sq.ft.new construction,with an estimated value of$1,598,000.
• Jerry's Scoreboard—A total of 29,481 sq.ft.new construction,with an estimated value of$2,400,000.
• Washington Jackson Apartments—A total of 125,924 sq. ft. new construction,with an estimated value
of$5,283,250.
• Courtyard By Marriott — A total of 62,237 sq. ft. new construction, with an estimated value of
$4,900,000.
• Jasper Water Plant Parking Lot and Storm Water Detention — A total of 250,000 sq. ft. new
construction,with an estimated value of$1,000,000.
Another indicator of performance of the local economy is the retail sales tax. The local sales tax rate in the City
is two percent. Retail sales in Wichita Falls grew by 6.40%when compared to the prior fiscal year,resulting in
an increase in revenue of$1,713,823 from the prior fiscal year.
iii
MAJOR INITIATIVES
For The Year. The City Council has identified programs to meet citizens' requests for services and to
safeguard the environment. Work continues on the City's major water system improvement projects. In 2001,
the City embarked on a$118 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, or nearing completion, are the addition of Lake Kemp Reservoir, Pump Station and
Pipeline;a state-of-the-art 10 mgd Reverse Osmosis Facility; Secondary Reservoir and Pump Station Expansion;
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. Other improvements that remain include a 10 mgd Conventional Water Treatment Expansion and a
Wastewater Reuse Treatment Facility. Needless to say,these improvements will dramatically improve the City's
ability to supply and treat water for the citizens of this community.
In November 2006, the City issued over $21 million in 20 Year Certificates of Obligation for several capital
improvement projects. These projects include a major renovation to the Weeks Park Municipal Golf Course,
street and drainage improvements,renovations to the Police Firing Range,construction of a new fire station,and
construction of four new softball fields and a skateboarding park at the City's Sports Complex. During the
2007-08 fiscal year,the municipal golf course renovation was completed and the course opened for business with
the name of The Champions Course at Weeks Park. The skateboarding park and the expansion of the softball
fields at the Sports Complex were also completed and opened for the public's use. Other capital bond projects
under construction and very near completion include: the new fire station; Maplewood Avenue Extension and
Quail Creek Drainage Improvements;reconstruction and widening of Gregg and Langford Streets; and Colonial
Park Drainage Improvements. The Police Firing Range was delayed until additional funding could be secured
and is anticipated to begin construction in the next several weeks. The average annual debt service for this
indebtedness is approximately$1.6 million and is being funded primarily with 4B Sales Tax Funds,Storm Water
Drainage Improvement Funds, and General Funds that were made available due to the retirement of some other
outstanding obligations.
In July 2007,the City experienced significant flooding along the Wichita River that caused damages to hundreds
of residential and commercial structures located in the Tanglewood Subdivision and multiple areas of the eastern
part of the community. This flooding incident was declared a federal disaster, causing significant governmental
involvement in responding to the emergency,clean up efforts,and property repairs. Approximately$900,000 in
City costs were documented and submitted to the Federal Emergency Management Agency for public assistance.
The City's share of these costs was 25%. In addition, the City has been awarded$571,400 from FEMA for a
Hazard Mitigation Grant to purchase those properties that were extensively damaged in the flood for demolition.
The City's matching cost for this grant is also 25%,or$190,467. The City also spent$50,000 to assist individual
flood victims that were significantly affected by the flood.
A major project is nearing completion that will significantly improve communications and reporting efforts in the
police and fire departments. In December 2007,contracts in the amount of$5.6 million were approved for the
installation of a city-wide wireless network, software installation and training, and mobile data workstations.
Once installed, the system will interface with the Computer Aided Dispatch and Records Management Systems
that have been recently upgraded, allowing for field communications in public safety vehicles. This project is
being funded exclusively with cash reserves of the 4B Sales Tax Corporation.
During the 2006-07 fiscal year, the City and the Wichita Falls Independent School District entered into an
inter-local agreement for the construction of joint use gymnasiums at two of the new elementary schools being
constructed by the School District. These two gymnasiums are being upsized for adult programming to be
provided by the City in the evenings and on weekends. The WFISD agreed to pay the cost for an elementary
sized gymnasium at these schools and the City agreed to pay the incremental cost for enlarging the facilities to
accommodate the City's needs. The first gymnasium was completed and opened for use in September 2008. The
second gymnasium is currently being constructed and is expected to be completed in May 2009. It is anticipated
that the City will spend $955,000 for this incremental cost and gain the use of two new gymnasiums for its
recreation programs. Both entities will equally share in the cost for major repairs to the facilities over a 75 year
term. The WFISD will pay for all minor maintenance costs during this joint use agreement.
iv
In May 2007, the City Council approved a contract with a consulting firm to prepare a comprehensive plan for
the City. This plan had three components: (1) Defense Diversification, (2) Downtown Development, and(3)
Local Update. The consultants worked with City staff, elected officials, and the public to develop a plan with
specific objectives for the future. The Defense Diversification element of the plan was funded with a$200,000
grant received from the Office of Economic Adjustment of the U.S. Department of Defense and$22,000 in City
General Funds. The Downtown element of the plan was funded with $100,000 of Tax Increment Financing
Funds generated from TIF Zone #1. The Local Update was funded with $37,000 of General City Funds.
Overall, the cost of this comprehensive plan was $350,000, and provides a roadmap to be used by local
governments over the next several years.
The City has begun responding to GASB 43 and 45 statements which require the City to report its unfunded
liability for post employment benefits other than retirement benefits. The City hired an actuarial firm to
determine the City liability associated with retiree health care and to determine the amount of annual
contributions that would be required if retiree health care programs remained the same. The results of that study
indicated that there was a significant unfunded liability for retiree health care benefits, and much of that liability
was due to a relatively "rich" health care retirement benefit for employees receiving Medicare supplemental
coverage. In addition, the study determined that over $2.3 million in additional City contributions would be
required on an annual basis to address this liability. As a result, the City's Retiree Health Care program was
amended in January 2009 in an effort to eliminate this additional annual contribution requirement. In general,the
changes allow retirees already on Medicare to continue receiving supplemental coverage at similar premiums,
increased premiums for the Medicare supplemental coverage for existing retirees that were not already Medicare
eligible,and eliminated Medicare supplemental coverage for all future retirees.
Significant improvement projects continue at the Kickapoo Downtown General Aviation Airport. Major
improvements completed over the last several years include the reconstruction of the runway, taxiway and
connectors; extension and widening of the runway; improvements to the runway extended safety area; runway
lighting enhancements; airfield signage improvements;hanger pavement reconstruction, drainage improvements,
and parking lot rehabilitation. Approximately$7 million of improvements have been completed at this airport
over the last several years, of which 90% to 95% has been financed with Federal Aviation Administration
Primary Entitlement Funds. The City receives $1 million annually from this grant source and the matching
amounts have been financed with reserves in the City's two airport funds. Current improvements underway with
the 2008 FAA Aviation Entitlement Funds include construction of a new taxiway, security fencing and taxiway
lighting at the Kickapoo Airport.
The City has also made improvements to the Municipal Airport. A portion of the 2007 FAA Aviation
Entitlement Funds was used to reconstruct Taxiway C. A total of$678,000 was expended on this project, of
which 95% was paid with Entitlement Funds and 5% was paid with Airport reserve funds. The City also
budgeted $135,000 of Airport reserves to begin work on relocating the offices of the Transportation Security
Administration from behind the ticket counter at the Municipal Airport to the old restaurant area adjacent to the
screening room. Once these offices are relocated, the federal government will reimburse the City$100,000 for
this work.
For The Future. In addition to FAA Primary Entitlement Funding,the City receives$150,000 annually in FAA
Non-Primary Entitlement Funding. The City has accumulated four years of FAA Non-Primary Entitlement
Funding to begin construction of a T-Hanger Complex at Kickapoo Airport that will house six additional
twin-engine aircrafts. The matching requirement for these funds is 20%, or$150,000. There are also plans to
use Capital Improvement Program Grants, administered through the Aviation Division of the Texas Department
of Transportation for relocation of the fuel farm and the rehabilitation of the aircraft parking apron at Kickapoo
Airport. A total of$2,233,000 is available from TXDOT for these improvements and the City's matching
amount will be $248,000. To assist with this matching requirement, the City implemented a Passenger Facility
Charge at the Municipal Airport in the amount of$4.50 per emplaned passenger. This new charge began in
November 2008 and is expected to generate approximately$160,000 annually.
Now that planned improvements at the Kickapoo Downtown General Aviation Airport are nearing completion,
the focus is changing to improvements to the City's Municipal Airport. The City has been negotiating with
Sheppard Air Force Base for an extension of a long term lease that will pave the way for Federal Aviation
Administration Funds to be used at the Municipal Airport. The City plans to begin using its 2009 FAA
V
Entitlement Funds for engineering/design services for the rehabilitation on the runway 17/35 and to develop a
Master Plan for the Airport.
In January 2009,the City Council approved the issuance of$10,820,000 in 20 Year Certificates of Obligation to
finance several capital improvement projects. The projects to be funded include: (i) constructing, acquiring and
improving the City's hike and bike trails; (ii) the purchase of land on Seymour Highway for a City park; (iii)
additional funding for constructing and equipping additions and improvements to the existing police firing range;
and(iv)constructing,furnishing and equipping an animal impoundment and reclaim center. The debt service for
the first three projects will be financed with 4B Sales Tax Funds and the Animal Reclaim Center will be financed
with General City funds. All of this debt service can be funded without adverse impact to the 4B Fund or the
General Fund due to retirement of other outstanding debt that was previously being funded with these revenue
sources.
The City is beginning to receive notification from the federal government that funding will be available for
various projects from the American Recovery and Reinvestment Act. At present,the City is expected to receive
$2.9 million to continue improvements to the City's hike and bike trails; $1.7 million to purchase four new buses
and make other improvements to the Transit System; $380,000 for additional projects through the Community
Development Block Grant Program; and $535,000 for emergency shelter programs. There may also be other
funding through this Act made available as the details of this program become clearer.
In June 2008,the City entered into a professional services agreement to complete a survey of the area owned by
the City at Lake Wichita. The intent of this agreement is to clarify the boundaries and eventually resolve any
disputes regarding ownership. The information will also be helpful in future planning for the development of the
Lake for leisure and recreational purposes.
The City also recently entered into a professional services agreement with an engineering firm to design
improvements for the Lake Arrowhead Raw Water Transmission Line. The estimated cost for the improvements
is $1.5 million. Revenue bond funds that were issued for this project are available for the design and the
improvements.
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 fmancial records for preparing fmancial 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, 2008, and related
appropriations are carried forward to the new fiscal year through a supplemental budgetary allocation.
vi
J
JTREASURY MANAGEMENT
Cash which was temporarily idle during the year, including debt retirement funds, operating funds, and bond
proceeds,was invested in public fund investment pools and U. S.government securities.
RISK MANAGEMENT
During 2007-08, the City of Wichita Falls continued a risk management program for worker's compensation.
Various risk control techniques, including employee accident prevention training, have been utilized during the
year to minimize accident-related losses.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the books of account, financial records, and transactions of all
administrative departments of the City by Certified Public Accountants. The accounting firm of Edgin,Parkman,
Fleming & Fleming, PC was selected by the Mayor and City Council to satisfy this charter requirement. The
auditors' report on the basic financial statements and combining fund statements and schedules is included in the
financial section of this report. In addition to meeting the requirements set forth in the City Charter, the audit
also was designed to meet the requirements of the federal Single Audit Act Amendments of 1996 and related
OMB Circular A-133,and the State Single Audit Act. These reports are issued under separate cover.
Awards
The Government Finance Officers Association of the United States and Canada(GFOA)awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Wichita Falls for its CAFR for the fiscal year
ended September 30, 2007. The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of a state and local government financial report. In order
to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report, whose contents conform to program standards. The CAFR
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 our current report continues to conform to the
Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility
for another certificate.
Acknowledgments
My appreciation is extended to the various elected officials, city manager, department heads and employees
responsible for the fair presentation of the CAFR and for contributing to the sound financial position of the City
of Wichita Falls. The City of Wichita Falls has been blessed with a group of persons who appreciate and respect
principles of fiscal restraint and propriety. In particular, I would like to acknowledge the special efforts of the
Department of Finance employees who contributed directly to the development of this report. The continuing
support of City Council and City Manager, who remain committed to fiscal integrity and financial leadership, is
likewise appreciated.
Respectfully submitted,
Jim Docker
y
Assistant City Manager/CFO
vii
ii
1
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, 2007
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.
ift4
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Executive Director
viii
CITY OF WICHITA FALLS
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ADMINISTRATION CEMETERY !MAINTENANCE STREET
1�1 UTILITIES AGRIp E 1A RAL ( COLISEUM 1
CITY OF WICHITA FALLS, TEXAS
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2008
Title Name
Mayor Lanham Lyne
Mayor Pro-Tern Charles Elmore
City Council Member Glenn Barham
City Council Member Michael Smith
City Council Member Rick Hatcher
City Council Member Dorothy Roberts-Burns
City Council Member Jim Ginnings
City Manager Darron Leiker
City Attorney Bill Sullivan
Municipal Court Judge Larry Gillen
City Clerk Lydia Ozuna
Assistant City Manager Matt Benoit
Director of Aviation, Traffic and Transportation John Burrus
Assistant City Manager/Chief Financial Officer Jim Dockery
Director of Community Development David Clark
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
VII . ' 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,CFE
J 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, 2008, 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 opinion.
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, 2008, and the
respective changes in financial position, and, where applicable, cash flows thereof for the year
then ended in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued under separate cover
our report dated March 12, 2009 on our consideration of the City of Wichita Falls, Texas'
internal control over financial reporting and 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 the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our
audit.
1
The Management's Discussion and Analysis, the schedules on the Texas Municipal Retirement
System and Wichita Falls Firemen's Relief and Retirement Fund, and the budgetary comparison
information identified as Required Supplementary Information in the table of contents are not a
required part of the basic financial statements, but are supplementary information required by
accounting principles generally accepted in the United States of America. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the required supplementary information. However,
we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory section, combining
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 have been subjected to auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a whole. The introductory
section and statistical section have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we express no opinion on them.
EDGIN, PARKMAN, FLEMING & FLEMING, PC
Wichita Falls, Texas
March 12, 2009
2
Management Discussion and Analysis
Wichita
TE AS\
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2008
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 30,2008.
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 30,2008,by$331,470,454 (net
assets). Of this amount, $34,000,786 (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 $10,656,231. This increase can be attributed primarily to the
following: a reduction in long term liabilities in the water and sewer fund due to the retirement of
outstanding debt; higher than anticipated revenues from the sale of water due to a fairly hot and dry
summer; infrastructure assets principally donated from developers; grants from the 4B Sales Tax
Corporation for debt service payments; grants from the Federal Aviation Administration for improvements
to the City's airports;and savings in personnel expenses in various departments due to vacancies.
At September 30, 2008, the City's governmental funds reported combined ending fund balances of
$41,290,104. Of this amount, $35,714,728, or 86.50%, 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 $14,500,836 or
22.58%of total General Fund expenditures.
The City's total debt decreased by$7,806,116 during the current fiscal year. The primary reason for this
reduction continued to retire outstanding General Obligation Bonds, Water and Sewer System Revenue
Bonds,and Combination Tax and Revenue Bonds.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic fmancial 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 fmancial statements, and 3) notes to the
financial statements. This report contains other supplementary information in addition to the basic
fmancial statements.
3
1300 7th Street P.O. Box 1431 Wichita Falls,Texas 76307
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2008
(continued)
Government-wide Financial Statements
The government-wide financial statements, which can be found on pages 13-14 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 is also reported as a governmental
activity. Property taxes, sales taxes, franchise fees, and various grant funds provide the majority of
financing for these activities.
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,and fleet maintenance services.
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#1,and the Wichita Falls Reinvestment Zone#2.
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
4
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2008
(continued)
reported using an accounting method identified as the modified accrual basis of accounting, which
measures cash and all other fmancial 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 fmancing 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 fmancing
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 fmancial
statements.
The City of Wichita Falls maintains 15 individual governmental funds. Information for the General Fund is
presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of
Revenues 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 15-18 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,and storm water utility district.
• 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 fmancial statements.
Proprietary fund financial statements provide the same type of information as the business-type activities
shown in the government-wide fmancial 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
5
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2008
(continued)
fiduciary funds and are used to account for situations where the City's role is purely custodial, such as
receipt, temporary investment and remittance of fiduciary funds to individuals, private organizations or
other governments. The City maintains one fiduciary fund. This fund is an agency fund used to account
for property that has been abandoned or unclaimed pending escheatment to the State of Texas.
Notes to the Financial Statements
The Notes to the Financial Statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. These notes can
be found on pages 25-54 of this report.
Government-Wide Financial Analysis
The City's combined net assets were $331,470,454 as of September 30, 2008, an increase of$10,656,231,
or 3.32% 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, $282,892,208, or 85.34%, 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, $14,577,460, or 4.40%, represents resources that are subject
to external restrictions on how they may be used. The remaining balance of net assets, $34,000,786, or
10.26%,may be used to meet the government's ongoing obligations to citizens and creditors.
Net Assets
(in thousands)
Governmental Business-type
Activities Activities Total
2008 2007 2008 2007 2008 2007
Current and Other Assets $ 52,710 $ 62,028 $ 106,409 $ 114,324 $ 159,119 $ 176,352
Capital Assets 158,358 148,698 220,714 206,964 379,072 355,662
Total Assets 211,068 210,726 327,123 321,288 538,191 532,014
Long Term Liabilities 37,582 39,774 151,642 156,908 189,224 196,682
Other Liabilities 10,795 8,185 6,701 6,333 17,496 14,518
Total Liabilities 48,377 47,959 158,343 163,241 206,720 211,200
Net Assets:
Invested in Capital Assets,
Net of Related Debt 139,869 115,911 143,023 132,852 282,892 248,763
Restricted 1,632 1,542 12,946 12,681 14,578 14,223
Unrestricted 21,190 45,314 12,811 12,514 34,001 57,828
Total Net Assets $ 162.691 $ 162,767 $ 168.780 $ 158.047 $ 331.471 $ 320.814
6
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2008
(continued)
CHANGES IN NET ASSETS
(in thousands)
Governmental Business-type
Activities Activities Total
2008 2007 2008 2007 2008 2007
Revenues:
Program Revenues:
Charges For Services $ 8,718 $ 8,854 $ 46,981 $ 42,654 $ 55,699 $ 51,508
Operating Grants and
Contributions 11,469 12,299 1,389 1,027 12,858 13,326
Capital Grants and Contributions 3,097 3,218 1,022 581 4,119 3,799
General Revenues:
Property Taxes 26,160 24,975 - - 26,160 24,975
Sales Taxes 21,354 20,069 - - 21,354 20,069
Other Taxes/Fees 7,579 7,600 - - 7,579 7,600
Investment Earnings 1,728 2,684 2,949 5,576 4,677 8,260
Miscellaneous (155) 712 - 199 (155) 911
Total Revenue 79,950 80,411 52,341 50,037 132,291 130,448
Expenses:
Administrative Services 11,662 10,363 - - 11,662 10,363
Police 20,528 18,587 - - 20,528 18,587
Fire 12,493 11,296 - - 12,493 11,296
Parks and Recreation 5,107 4,478 - - 5,107 4,478
Accounting/Finance 2,232 1,894 - - 2,232 1,894
Community Development 6,921 6,574 - - 6,921 6,574
Public Works 8,315 8,616 - - 8,315 8,616
Health 4,874 4,736 - - 4,874 4,736
Traffic and Transportation 2,679 2,590 - - 2,679 2,590
MPEC 4,336 4,292 - - 4,336 4,292
Interest and Fees on Long-term
Debt 1,405 1,309 - - 1,405 1,309
Golf - - - - -
Municipal Airport - - 311 276 311 276
Kickapoo Airport - - 1,245 967 1,245 967
Transit - - 1,794 1,373 1,794 1,373
Sanitation - - 9,199 8,639 9,199 8,639
Water and Sewer - - 28,127 26,765 28,127 26,765
Stormwater Drainage - - 407 356 407 356
Total Expenses 80,552 74,735 41,083 38,376 121,635 113,111
Increase(Decrease)in Net Assets
Before Transfers (602) 5,676 11,258 11,661 10,656 17,337
Transfers 525 1,973 (525) (1,973) - -
Increase(Decrease)in Net Assets (77) 7,649 10,733 9,688 10,656 17,337
Net Assets-Beginning of Year 162,768 155,118 158,047 148,359 320,815 303,477
Prior Period Adjustment - - - - - -
Net Assets-End of Year =ha $162.767 $168.780 $158.047 $331.471 $320.814
7
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2008
(continued)
Governmental Activities— Governmental Activities decreased City assets by $76,606, principally due to
much higher than expected fuel expenses and lower earnings on the City's investments. In addition, the
General Fund was utilized during the year to pay for operating costs of the Champions Golf Course at
Weeks Park, while the course was closed during the final grow-in stages of the course renovation.
However, much of this decrease was offset by better than expected performance in retail sales taxes,
savings in expenditures for the City's Self Insured Worker's Compensation Program and in personnel
related accounts resulting from turnover in various positions during the fiscal year. Although total
expenditures exceeded the prior year,they were well within budgeted amounts.
Business-Type Activities - Net assets for the City's Business-type Activities increased by $10,732,837,
accounting for 101%of the total growth in the City's net assets. Higher than anticipated revenues in water
and sewer charges were generated due to unseasonably hot and dry weather. The City continues to reduce
liabilities in its Water and Sewer Fund as debt service payments are made on outstanding revenue bonds.
The City also continues to recognize capital assets made to Municipal and Kickapoo Airports, which are
paid for principally with Federal Airport Improvement Funds. The Stormwater Drainage Fund had lower
than budgeted expenditures during the fiscal year. Furthermore, capital contributions from private
contractors as water and sewer lines are installed for newly developed areas increased the City's assets as
well.
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, 2008, the City's governmental funds reported combined fund balances of
$41,290,104, which is a reduction of $10,361,120 from the prior year. However, approximately
$8,425,000 of this reduction is due to the use of capital project funds that were spent on the City's Mobile
Data Terminal Project, Softball Complex Expansion, Skateboard Park, and Street and Drainage
Improvements on Maplewood Drive. The City also planned for the use of$500,000 in General Funds to
assist with the cost of the Softball Complex Expansion. Finally, more than anticipated General Fund cash
was required to subsidize the operation of the Champions Course during the course renovation. It should
be noted that over$24.2 million of the combined governmental fund balances is designated for subsequent
year expenditures for capital projects, special programs, or legal settlements. In addition, $5.58 million is
reserved,which indicates it is not available for spending,because it has already been committed to pay for
encumbrances,inventory and prepaid items,debt service,and cemetery perpetual care.
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 $14,500,836. 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 22.58% of total General Fund expenditures, while the total fund
balance represents 26.76%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.
8
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2008
(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, 2008, the net assets for the City's internal
service funds were $18,870,358, a reduction of$510,048. Much of this reduction was due to higher than
expected costs for the City's Self-Insured Health Care Benefits Program. It should be noted that of the net
assets for the City's internal service funds, $15,973,102 is invested in capital assets and $2,394,836 is
reserved for employee life and health benefits. The remainder of net assets of the internal service funds
are generally used to replace capital assets. 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
$5,097,332 from the original adopted budget. Some of the primary reasons for this increase in
appropriations can be briefly summarized as follows:
• Approximately $2,783,000 of prior year encumbrances were carried forward to the 2007-08
amended budget, the majority of which was for the Street Overlay Program, and professional
services agreements for the Comprehensive Planning Project,and City Hall Needs Assessment.
• Approximately $300,000 was appropriated for to pay for additional sod work at the newly
renovated municipal golf course.
• An additional$500,000 was budgeted for the City's share of costs associated with the joint project
with the Wichita Falls Independent School District for the construction of two adult sized
gymnasiums in their new elementary schools.
• An additional $500,000 was budgeted to address cost overruns on the Softball Complex
Expansion Project that was principally funded with bond proceeds.
• Approximately $50,000 was appropriated to assist the Disaster Recovery Committee respond to
needs of victims of the flood that occurred in June 2007, and $190,000 to match a Hazardous
Mitigation Grant received from the Federal Emergency Management Agency for the same
flooding event.
• The remaining appropriations were necessary to pay additional central garage charges to the Fleet
Maintenance Internal Service Fund to cover dramatic increases in the cost of unleaded and diesel
fuel.
Actual revenues in the General Fund for the 2007-08 fiscal year were$62,863,097, which was$2,554,260
above final budgeted figures. However, over$1,953,000 of this amount is due to donations of streets and
drainage improvements from private developers that are recorded as revenues under the new reporting
model. In addition,the City received more revenue than the amended budget from sales tax collections and
franchise fees paid by the gas company.
Actual expenditures in the General Fund for the 2007-08 fiscal year were$64,234,000 compared to a final
budget of$66,516,497. Much of this variance is due principally to a delay in a significant street overlay
program until the ensuing fiscal year. In addition, salary savings that accrued to the General Fund from
vacancies in authorized positions accounted for the majority of the remaining amount.
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, 2008, amounts to $379,072,101 (net of accumulated depreciation). This investment in
capital assets includes land,buildings,equipment,infrastructure and construction in progress.
9
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2008
(continued)
Major capital asset events during this fiscal year included the following:
• Continued improvements to the water system, principally at Jasper and Cypress Water Treatment
Plants.
• Installation of a wireless communications network and related equipment for the Public Safety
Mobile Data Terminal Project.
• Construction of a new fire station.
• Improvements at Municipal and Kickapoo Airports.
• Major renovations at the Champions Golf Course at Weeks Park.
• Construction of additional playing fields at the Softball Complex.
• Extension of Maplewood Avenue and Quail Creek Drainage Improvements.
Capital Assets,net of Accumulated Depreciation
(in thousands)
Governmental Business-type
Activities Activities Total
2008 2007 2008 2007 2008 2007
Land $ 8,802 $ 8,819 $ 8,202 $ 8,202 $ 17,004 $ 17,021
Land Betterments 20,012 13,260 15,830 15,464 35,842 28,724
Buildings, Systems
and Improvements 45,936 46,808 165,388 129,793 211,324 176,601
Infrastructure 64,836 65,402 - - 64,836 65,402
Machinery and Equip 10,471 10,668 2,444 2,495 12,915 13,163
Furniture and Fixtures 14 15 9 12 23 27
Motor Vehicles - - 13,082 12,998 13,082 12,998
Construction in
Progress 8,287 3.726 15.759 38,000 24,046 41,726
Totals $ 158.358 $ 148.698 $220,714 $206.964 $ 379.072 _$ 355.662
Additional information on the City's capital assets can be found in Note 7 on pages 38-41 of this report.
Long Term Debt-At the end of the current fiscal year, the City of Wichita Falls had a total bonded debt
and notes outstanding of$177,384,609. No additional bond indebtedness was issued during the 2007-08
fiscal year.
Moody's Investor's Service has assigned a credit rating of Al 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, 2008,
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.
10
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2008
(continued)
Outstanding Debt at Year-End
(in thousands)
Governmental Business-type
Activities Activities Total
2008 2007 2008 2007 2008 2007
General Obligation Bonds $ 6,480 $ 7,390 $ - $ - $ 6,480 $ 7,390
Combination Tax and
Revenue Bonds 23,867 25,396 24,479 27,865 48,346 53,261
Utility System Revenue
Bonds - - 121,888 123,869 121,888 123,869
Notes Payable = 61 671 700 671 761
Total _$ 30.347 $ 32.847 $ 147.038 $ 152.434 $ 177,385 $ 185.281.
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, 2008, was
$.59246 per$100,which means that the City has a tax margin of$1.65754 per$100,and could raise up to
$69,476,514 additional tax revenue a year from the present assessed valuation of$4,191,543,723 before the
limit is reached. The current ratio of general bonded debt outstanding to the assessed value of all taxable
property is 0.72%.
Additional information about the City's long-term debt can be found in Note 12 on pages 46-49 of this
report.
Economic Factors and Next Year's Budgets and Rates
Overall, operating revenues in the General Fund are budgeted to increase by 4.68% from the 2007-08
adopted budget.
The largest revenue source of the City's General Fund is the property tax. Appraised property values for
the 2008 tax year, as certified by the Wichita County Appraisal District, increased 5.66% from the prior
year certified tax roll. The City increased the property tax rate by .47% to $.59526 per$100 of assessed
value.
The second largest revenue source of the City's General Fund is the retail sales tax. The City experienced
an increase in sales tax collections of approximately 6.4%in 2007-08 compared to the prior fiscal year. In
addition, the average annual growth rate for the past several years has been approximately 4.00%.
Nevertheless,the City budgeted this revenue source at a fairly conservative growth rate of 1.00%above the
amount that was estimated would be generated in 2007-08 when the budget was prepared in July 2008.
Retail Water and Sewer rates were increased by 7% to 11% from the 2007-08 fiscal year. Sanitation
Collection Rates were also increased by 16%. These increases were necessary principally because of the
loss of the St.Gobain Vetrotex plant,one of the City's largest water,sewer and sanitation customers.
11
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2008
(continued)
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 City Finance
Department, 1300 Seventh Street,Wichita Falls,Texas 76301.
12
Basic Financial Statements
EXHIBIT A-1
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
Primary Government
Governmental Business-type Component
Activities Activities Total Units
Assets
Cash and cash equivalents $ 44,571,492 $ 8,300,977 $ 52,872,469 $26,618,578
Receivables(net):
Taxes and assessments 992,834 - 992,834 11,352
Customer and trade - 4,767,275 4,767,275 -
Component unit 268,980 268,980 -
Government agencies 7,498,252 364,667 7,862,919 1,238,336
Other 1,616,103 177,634 1,793,737 -
Internal balances (2,850,716) 2,850,716 - -
Inventory 336,507 1,925,551 2,262,058 -
Prepaid items 229,368 40,387 269,755 96,377
Other assets 46,503 2,000 48,503 -
Deferred charges - 6,348,980 6,348,980 -
Restricted assets:
Cash and cash equivalents - 81,621,717 81,621,717 -
Receivables:
Other - 8,820 8,820 -
Capital assets not being depreciated 17,089,937 23,961,086 41,051,023 1,469,797
Capital assets net of accumulated depreciation 141,268,300 196,752,778 338,021,078 909,331
Total assets 211,067,560 327,122,588 538,190,148 30,343,771
Liabilities
Accounts payable-trade 3,338,767 2,054,755 5,393,522 91,962
Accrued payroll 2,109,061 578,468 2,687,529 -
Payable to primary government - - - 268,980
Payable to government agencies 331,000 61,851 392,851 -
Estimated health claims payable 528,197 - 528,197 -
Other liabilities 4,451,096 1,378,672 5,829,768 -
Unearned revenue 37,236 - 37,236 -
Customer deposits - 2,627,021 2,627,021 -
Long-term liabilities:
Portion due or payable within one year 2,403,536 7,100,086 9,503,622 -
Portion due or payable after one year 35,177,804 144,542,145 179,719,949 -
Total liabilities 48,376,697 158,342,998 206,719,695 360,942
Net Assets
Invested in capital assets, net of related debt 139,868,969 143,023,239 282,892,208 2,379,128
Restricted for debt service 1,631,963 12,945,497 14,577,460 -
Unrestricted 21,189,932 12,810,854 34,000,786 27,603,701
Total net assets $ 162,690,864 $ 168,779,590 $331,470,454 $29,982,829
See accompanying notes to the basic financial statements.
13
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30,2008
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
Administrative services $ 11,662,086 $ 3,211,546 $ 139,978 $ 1,954,613
Police 20,527,967 600,020 2,025,497 -
Fire 12,492,842 2,612 337,092 -
Parks and recreation 5,107,579 517,707 535,482 -
Accounting/finance 2,231,952 - - -
Community development 6,921,352 1,124,534 4,863,334 -
Public works 8,314,596 100,000 36,210 -
Health 4,873,643 864,874 1,807,935 -
Trafficandtransportation 2,679,026 154,941 - 1,142,706
Multi-Purpose Events Center 4,335,968 2,141,584 86,740 -
Interest and fees on long-term debt 1,405,383 - 1,636,386 -
Total governmental activities 80,552,394 8,717,818 11,468,654 3,097,319
Business-type activities:
Municipal Airport 310,980 430,561 - -
Kickapoo Airport 1,245,021 1,025,300 - -
Transit 1,793,369 224,856 1,389,202 -
Sanitation 9,199,341 10,939,617 - -
Waterandsewer 28,126,920 33,042,845 - 1,021,644
Stormwater drainage 407,035 1,318,340 - -
Total business-type activities 41,082,666 46,981,519 1,389,202 1,021,644
Total primary government $ 121,635,060 $ 55,699,337 $ 12,857,856 $ 4,118,963
Component units:
Community development $ 6,663,181 $ 108,258 $ 154,569 $ -
General revenues and transfers:
Taxes:
Property tax
Sales tax
Franchise fees
Hotel occupancy tax
Beverage tax
Bingo tax
Investment earnings
Miscellaneous
Loss on disposal of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets-beginning
Net assets-ending
See accompanying notes to the basic financial statements.
14
EXHIBIT A-2
Net(Expense)Revenue and
Changes in Net Assets
Primary Government
Governmental Business-type Component
Activities Activities Total Units
$ (6,355,949) $ - $ (6,355,949) $ -
(17,902,450) - (17,902,450) -
(12,153,138) - (12,153,138) -
(4,054,390) - (4,054,390) -
(2,231,952) - (2,231,952) -
(933,484) - (933,484) -
(8,178,386) - (8,178,386) -
(2,200,834) - (2,200,834) -
(1,381,379) - (1,381,379) -
(2,107,644) - (2,107,644) -
231,003 - 231,003 -
(57,268,603) - (57,268,603) -
- 119,581 119,581 -
- (219,721) (219,721) -
- (179,311) (179,311) -
- 1,740,276 1,740,276 -
- 5,937,569 5,937,569 -
- 911,305 911,305 -
- 8,309,699 8,309,699 -
(57,268,603) 8,309,699 (48,958,904) -
- - - (6,400,354)
26,160,116 - 26,160,116 318,075
21,353,896 - 21,353,896 7,117,966
5,598,406 - 5,598,406 -
1,560,353 - 1,560,353 -
251,386 - 251,386 -
168,864 - 168,864 -
1,727,671 2,949,036 4,676,707 910,528
242,811 - 242,811 127,091
(397,404) - (397,404) -
525,898 (525,898) - -
57,191,997 2,423,138 59,615,135 8,473,660
(76,606) 10,732,837 10,656,231 2,073,306
162,767,470 158,046,753 320,814,223 27,909,523
$ 162,690,864 $ 168,779,590 $ 331,470,454 $ 29,982,829
EXHIBIT A-3
CITY OF WICHITA FALLS, TEXAS
BALANCE SHEET-GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
Total
Nonmajor Governmental
General Governmental Funds
Assets
Cash and cash equivalents $ 17,639,318 $ 24,252,710 $ 41,892,028
Receivables(net):
Taxes and assessments 792,239 200,595 992,834
Other City funds 1,871,825 - 1,871,825
Component unit - 268,980 268,980
Government agencies 3,546,268 3,951,984 7,498,252
Other 1,439,367 156,727 1,596,094
Inventory 263,349 63,059 326,408
Prepaid items 159,031 59,407 218,438
Other assets - 46,503 46,503
Total assets $ 25,711,397 $ 28,999,965 $ 54,711,362
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 1,392,484 $ 1,731,060 $ 3,123,544
Accrued payroll 1,939,930 160,979 2,100,909
Payable to other City funds - 1,663,103 1,663,103
Payable to government agencies 213,478 117,522 331,000
Other liabilities 3,355,245 1,095,851 4,451,096
Deferred revenue 1,440,411 128,614 1,569,025
Claims and judgments payable 182,581 - 182,581
Total liabilities 8,524,129 4,897,129 13,421,258
Fund balances:
Reserved for encumbrances 2,263,953 289,907 2,553,860
Reserved for inventory and prepaid items 422,479 - 422,479
Reserved for debt service - 1,661,408 1,661,408
Reserved for perpetual care - 937,629 937,629
Unreserved,designated for subsequent
years expenditures reported in:
General Fund 3,000,000 - 3,000,000
Special Revenue Funds - 6,173,106 6,173,106
Capital Projects Funds - 15,033,333 15,033,333
Unreserved, undesignated reported in:
General Fund 11,500,836 - 11,500,836
Special Revenue Fund - 7,453 7,453
Total fund balances 17,187,268 24,102,836 41,290,104
Total liabilities and fund balances $ 25,711,397 $ 28,999,965 $ 54,711,362
See accompanying notes to the basic financial statements.
15
EXHIBIT A-4
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
Total fund balances-governmental funds (Exhibit A-3) $ 41,290,104
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 $260,656,718
Related accumulated depreciation 102,298,481 158,358,237
Property taxes receivable and municipal court fines are not available to pay for current
period expenditures and therefore are deferred in the funds. 1,531,789
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 30,347,228
Accrued vacation and sick leave 6,797,882
Claims and judgments payable 140,196
Accrued interest 113,453 (37,398,759)
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. 2,118,585
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. (3,209,092)
Total net assets- governmental activities (Exhibit A-1) $ 162,690,864
See accompanying notes to the basic financial statements.
16
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, 2008
Total
Nonmajor Governmental
General Governmental Funds
Revenues
Taxes $ 52,267,852 $ 2,887,722 $ 55,155,574
Charges for services 2,822,862 448,068 3,270,930
Licenses and permits 2,116,140 - 2,116,140
Fines and forfeitures 1,810,517 153,874 1,964,391
Intergovernmental revenue 37,403 8,390,907 8,428,310
Contributions 2,041,353 4,096,310 6,137,663
Miscellaneous revenue 1,766,970 3,602,719 5,369,689
Total revenues 62,863,097 19,579,600 82,442,697
Expenditures
Administrative services 9,150,356 1,723,220 10,873,576
Police 19,146,978 377,846 19,524,824
Fire 12,179,398 27,376 12,206,774
Parks and recreation 4,495,485 346,112 4,841,597
Accounting/finance 2,087,572 - 2,087,572
Community development 1,671,168 5,254,413 6,925,581
Public works 5,103,359 503,425 5,606,784
Health 2,887,330 1,888,088 4,775,418
Traffic and transportation 2,296,484 162,586 2,459,070
Multi-Purpose Events Center - 3,506,091 3,506,091
Capital outlay 5,215,870 10,003,524 15,219,394
Debt service-principal - 2,395,000 2,395,000
Debt service-interest and paying agent fees - 1,456,540 1,456,540
Total expenditures 64,234,000 27,644,221 91,878,221
Excess of revenues over(under) expenditures (1,370,903) (8,064,621) (9,435,524)
Other Financing Sources (Uses)
Transfers in 2,204,215 5,064,723 7,268,938
Transfers out (2,377,660) (5,816,874) (8,194,534)
Total other financing sources (uses) (173,445) (752,151) (925,596)
Net change in fund balance (1,544,348) (8,816,772) (10,361,120)
Fund balances-beginning 18,731,616 32,919,608 51,651,224
Fund balances-ending $ 17,187,268 $ 24,102,836 $ 41,290,104
See accompanying notes to the basic financial statements.
17
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, 2008
Net change in fund balances-total governmental funds(Exhibit A-5) $ (10,361,120)
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 $ 15,323,042
Depreciation expense for the year 5,257,752 10,065,290
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. (397,404)
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 decreased by this amount this year. (583,613)
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 2007-08 were: 2,438,788
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 (372,627)
Claims and judgments payable 17,836 (354,791)
Interest on long-term debt in the Statement of Activities differs from the amount reported
in the governmental funds because interest is recognized as an expenditure in the funds
when it is due,and thus requires the use of current financial resources. In the Statement
of Activities,however, interest expense is recognized as the interest accrues,regardless
of when it is due.The decrease in accrued interest is as follows:
Accrued interest at September 30,2007 120,822
Accrued interest at September 30,2008 113,453 7,369
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. (390,202)
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. (500,923)
Change in net assets of governmental activities(Exhibit A-2) $ (76,606)
See accompanying notes to the basic financial statements.
18
r
EXHIBIT A-7
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30,2008
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Assets
Current assets:
Cash and cash equivalents $ 992,389 $ 2,850,135 $ 3,640,040 $ 7,482,564 $ 3,497,877
Restricted cash and cash equivalents 81,621,717 - - 81,621,717
Receivables(net):
Customer and trade 3,615,404 1,025,089 126,782 4,767,275 -
Government agencies 51,419 - 313,248 364,667 -
Other 50,082 - 51,273 101,355 96,288
Other(restricted) 8,820 - - 8,820 -
Inventory 1,035,207 - 62,134 1,097,341 838,309
Prepaid items 29,253 2,616 5,003 36,872 14,444
Other assets - - 2,000 2,000 -
Total current assets 87,404,291 3,877,840 4,200,480 95,482,611 4,446,918
Long-term assets:
Deferred charges 6,348,980 - - 6,348,980 -
Capital assets,net of accumulated
depreciation 183,608,370 5,287,652 15,905,180 204,801,202 15,973,102
Total long-term assets 189,957,350 5,287,652 15,905,180 211,150,182 15,973,102
Total assets 277,361,641 9,165,492 20,105,660 306,632,793 20,420,020
See accompanying notes to the basic financial statements.
19
EXHIBIT A-7
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30,2008
Enterprise Funds
•
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Liabilities
Current liabilities:
Accounts payable-trade 1,253,030 82,632 58,088 1,393,750 876,228
Accrued payroll 315,375 136,419 54,123 505,917 80,703
Accrued vacation and sick leave 281,546 113,583 37,779 432,908 61,534
Payable to other City funds 16,037 - 192,684 208,721 -
Payable to government agencies - 61,534 317 61,851 -
Estimated health claims payable - - - - 528,197
Other liabilities 1,335,531 28,815 11,326 1,375,672 3,000
Revenue bonds-current maturities 5,520,335 - - 5,520,335 -
Accrued interest-revenue bonds 1,087,117 - - 1,087,117 -
Total current liabilities 9,808,971 422,983 354,317 10,586,271 1,549,662
Long-term liabilities:
Payable to U.S.Government 670,537 - - 670,537 -
Revenue bonds,less current maturities 140,846,510 - - 140,846,510 -
Estimated liability for landfill closure and
post-closure care costs - 3,025,098 - 3,025,098 -
Customer deposits 2,627,021 - - 2,627,021 -
Total long-term liabilities 144,144,068 3,025,098 - 147,169,166 -
Total liabilities 153,953,039 3,448,081 354,317 157,755,437 1,549,662
Net Assets
Invested in capital assets, net of
related debt 105,917,745 5,287,652 15,905,180 127,110,577 15,973,102
Restricted for debt service 12,945,497 - - 12,945,497 -
Unrestricted 4,545,360 429,759 3,846,163 8,821,282 2,897,256
Total net assets $123,408,602 $ 5,717,411 $ 19,751,343 148,877,356 $18,870,358
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 19,902,234
Net assets of business type activities $168,779,590
See accompanying notes to the basic financial statements.
20
Wichita It?,,L
TEXAS
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, 2008
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Operating revenues:
Charges for services $ 32,836,518 $10,927,514 $ 1,439,234 $45,203,266 $ 10,200,929
Rents,concessions and other 206,327 12,103 1,559,823 1,778,253 315,853
Contributions - - - - 8,122,226
Total operating revenues 33,042,845 10,939,617 2,999,057 46,981,519 18,639,008
Operating expenses:
Personnel services 7,744,230 3,367,694 1,190,234 12,302,158 1,943,672
Supplies and materials 1,624,420 202,953 1,043,235 2,870,608 4,298,595
Maintenance and repairs 1,516,268 377,699 478,749 2,372,716 1,589,666
Utilities and other services 5,143,636 4,245,350 272,112 9,661,098 136,510
Insurance and contract support 482,645 113,690 89,833 686,168 8,016,712
Other expenses 1,385,064 571,131 356,829 2,313,024 1,230,209
Depreciation and amortization 4,531,756 100,012 361,327 4,993,095 3,250,858
Total operating expenses 22,428,019 8,978,529 3,792,319 35,198,867 20,466,222
Operating income(loss) 10,614,826 1,961,088 (793,262) 11,782,652 (1,827,214)
Nonoperating revenues(expenses):
Interest income 2,760,719 76,417 111,900 2,949,036 71,480
Gain/(Loss)on sale/abandonment of capital assets (79,145) (19,000) (1,131) (99,276) 20,558
Interest expense and paying agent fees (6,391,968) - - (6,391,968) -
Intergovernmental operating grants - - 1,389,202 1,389,202 -
Total nonoperating revenues(expenses) (3,710,394) 57,417 1,499,971 (2,153,006) 92,038
Income(loss)before contributions and transfers 6,904,432 2,018,505 706,709 9,629,646 (1,735,176)
Capital contributions 1,021,644 - - 1,021,644 -
Transfers in 60,726 - 3,460,093 3,520,819 1,602,128
Transfers out (1,344,431) (1,797,488) (678,431) (3,820,350) (377,000)
Change in net assets 6,642,371 221,017 3,488,371 10,351,759 (510,048)
Net assets-beginning 116,766,231 5,496,394 16,262,972 19,380,406
Net assets-ending $123,408,602 $ 5,717,411 $19,751,343 $ 18,870,358
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 381,078
Change in net assets of business type activities $ 10,732,837
See accompanying notes to the basic financial statements.
21
EXHIBIT A-9
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Cash flows from operating activities:
Received from customers and users $ 33,220,105 $ 10,833,111 $ 2,795,676 $ 46,848,892 $ 18,593,692
Payments to suppliers (12,483,076) (6,235,723) (2,667,378) (21,386,177) (15,289,513)
Payments to employees (5,688,518) (2,463,260) (913,747) (9,065,525) (1,471,122)
Net cash provided by(used in)operating activities 15,048,511 2,134,128 (785,449) 16,397,190 1,833,057
Cash flows from noncapital financing activities:
Intergovernmental operating grants - - 1,389,202 1,389,202 -
Interfund loan - - 192,684 192,684 -
Transfers in from other funds 11,726,745 - 3,460,093 15,186,838 1,602,128
Transfers out to other funds (13,010,450) (1,797,488) (678,431) (15,486,369) (377,000)
Net cash provided(used)by noncapital financing activities (1,283,705) (1,797,488) 4,363,548 1,282,355 1,225,128
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (13,538,450) (343,190) (3,491,845) (17,373,485) (3,472,133)
Proceeds from sale of capital assets 66,289 - - 66,289 163,896
Principal paid on long-term debt (5,014,211) - - (5,014,211) -
Interest and fees paid on long-term debt (6,631,389) - - (6,631,389) -
Net cash provided by(used for)capital and related
financing activities (25,117,761) (343,190) (3,491,845) (28,952,796) (3,308,237)
Cash flows from investing activities:
Interest on investments 2,843,282 76,417 111,900 3,031,599 71,480
Sale of investments 5,689,236 - - 5,689,236 -
Net cash provided by(used for)investing activities 8,532,518 76,417 111,900 8,720,835 71,480
Net Increase(Decrease)in Cash and Cash Equivalents (2,820,437) 69,867 198,154 (2,552,416) (178,572)
Cash and Cash Equivalents-Beginning 85,434,543 2,780,268 3,441,886 91,656,697 3,676,449
Cash and Cash Equivalents-Ending $ 82,614,106 $ 2,850,135 $ 3,640,040 $ 89,104,281 $ 3,497,877
Reconciliation of cash and cash equivalents on the balance
sheet to the statement of cash flows:
Cash and cash equivalents $ 992,389 $ 2,850,135 $ 3,640,040 $ 7,482,564 $ 3,497,877
Restricted assets-cash and cash equivalents 81,621,717 - - 81,621,717 -
Total cash and cash equivalents at end of year $ 82,614,106 $ 2,850,135 $ 3,640,040 $ 89,104,281 $ 3,497,877
See accompanying notes to the basic financial statements.
22
EXHIBIT A-9
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2008
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Reconciliation of Operating Income(Loss)to Net Cash
Provided by(Used in)Operating Activities:
Operating income(loss) $ 10,614,826 $ 1,961,088 $ (793,262) $ 11,782,652 $ (1,827,214)
Adjustments to reconcile operating income(loss)
to net cash provided by(used in)operating
activities:
Depreciation and amortization 4,531,756 100,012 361,327 4,993,095 3,250,858
Customer deposits received 96,348 - - 96,348 -
(Increase)decrease in current assets:
Receivables:
Customer and trade 69,119 (106,506) (4,930) (42,317) -
Other 11,793 - (198,451) (186,658) (48,316)
Inventory (134,236) - (26,148) (160,384) 202
Prepaid items (29,148) (2,316) 2,353 (29,111) 25,968
Other assets - - (2,000) (2,000) -
Increase(decrease)in current liabilities:
Accounts payable-trade (95,425) (21,476) (117,466) (234,367) 363,030
Accrued payroll 54,325 20,985 11,630 86,940 9,237
Accrued vacation and sick leave 13,067 10,310 1,728 25,105 4,099
Payable to other City funds (42,307) - - (42,307) -
Estimated health claims payable - - - - 52,193
Payable to government agencies - 9,483 9 9,492 -
Other liabilities (41,607) 28,815 (20,239) (33,031) 3,000
Estimated liability for landfill closure - 133,733 - 133,733 -
Total adjustments 4,433,685 173,040 • 7,813 4,614,538 3,660,271
Net cash provided by(used in)
operating activities $ 15,048,511 $ 2,134,128 $ (785,449) $ 16,397,190 $ 1,833,057
Noncash capital and financing activities:
Capital assets received from developers $ 1,021,644 $ - $ - $ 1,021,644 $ -
See accompanying notes to the basic financial statements.
23
EXHIBIT A-10
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
SEPTEMBER 30, 2008
Agency
Fund
Assets
Cash and cash equivalents $ 99,907
Liabilities
Other liabilities $ 99,907
See accompanying notes to the basic financial statements.
24
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2008
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the City of Wichita Falls, Texas (City) conform to
accounting principles generally accepted in the United States of America (GAAP) applicable to
state and local governments. GAAP for local governments includes those principles prescribed by
the Governmental Accounting Standards Board (GASB), which includes all statements and
interpretations of the National Council on Governmental Accounting (NCGA) unless modified by
the GASB, and those principles prescribed by the American Institute of Certified Public
Accountants in the publication entitled Audits of State and Local Governmental Units. The
following is a summary of the more significant policies and practices used by the City.
A. Reporting Entity
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.
Discretely 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.
25
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
The Wichita Falls 48 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#1. On March 18, 1986, 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 #1 (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 650 acres and includes the central business district 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, 1986, 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, 2008, 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 #1 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 #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.
26
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2008
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.)
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 Reoortina Entity
Wichita Falls Firemen's Relief and Retirement Fund. The Wichita Falls Firemen's Relief and
Retirement Fund was established and is controlled through various State of Texas legislative
enactments. This Fund is administered locally by a seven-member board, independent of the
City Council. City management and the City Council do not influence or control the
administrative and financial affairs of the Fund, and the assets of the Fund are not the
property of the City. The seven-member Board of Trustees, composed of the Mayor, the
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.
27
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
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 accountina 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.
28
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
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.
29
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2008
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.)
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. Nonexchanae 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.
30
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.)
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 equity
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:
31
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
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, 2008, the City's business-like activities incurred a
total of $6,501,902 of interest costs. Of this amount, $109,934 was capitalized on
construction projects and $6,391,968 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. Lona-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.
32
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
6. Reserves and Designations
Portions of fund equity are segregated for future use, and are therefore not available for
future appropriation or expenditure. Amounts reserved for revenue bond debt service and
retirement represent portions of fund equity which are required to be segregated in
accordance with the City's bond ordinances. Amounts reserved for inventory and prepaid
items have already been expended and represent a portion of the fund balance that is not
available for future expenditures. Amounts reserved for encumbrances are commitments
for materials and services on purchase orders and contracts which are unperformed.
Designations of unreserved fund balances in governmental funds indicate City
management's tentative plans for use of financial resources in a future period.
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.
33
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2008
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
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 the City's risk management department. The City's estimated
liability for workers' compensation claims payable at September 30, 2008 is based on
management's estimate of probable losses in the amount of $322,777. 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. $182,581 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, 2006 to September 30, 2008:
Health Workers'
Care Compensation
Liability balance, October 1, 2006 $ 331,065 $ 387,766
Incurred claims/adjustments 5,870,151 1,171,349
Claim payments ( 5.725.212) ( 1.178.014)
Liability balance, September 30, 2007 476,004 381,101
Incurred claims/adjustments 7,444,216 856,585
Claim payments ( 7.392.023) ( 914.909)
Liability balance, September 30, 2008 $ 528.197 $ 322.777
Note 2 - COMPLIANCE AND ACCOUNTABILITY
Finance-Related Legal and Contractual Provisions
In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures",
violations of finance-related legal and contractual provisions are reported below, along with actions
taken to address such violations.
Violation Action Taken
None
34
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
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, 2008, the total amount of the City's
demand and time deposits per the general ledger was $1,367,127, and the total amount per the
City's September 30, 2008 bank statements was $2,064,980. 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, 2008
are as follows:
Fair Value/ Average Weighted Average
Carrying Credit Quality/ Months to
Tvoes of Investments Amount Cost Ratinas Maturity
Primary Government:
TexPool $118,923,367 $118,923,367 N/A 1.00
LOGIC 1,474,405 1,474,405 N/A 1.00
Money market account 11.026,374 11.026.374 N/A 1.00
Total primary government
investments 131.424.146 131,424,146
Component Units:
TexPool 28,417,809 28.417.809 N/A 1.00
Total component unit
investments 28.417.809 28.417.809
Total investments $159 841 955 $159.841.955
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.
35
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2008
Note 3 - DEPOSITS AND INVESTMENTS (CONT'D.)
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.
36
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 4- RECEIVABLES
Receivables at September 30, 2008 consist of the following:
Nonmajor Nonmajor Totals Totals
Governmental Water and Enterprise Internal Primary Component Reporting
General Funds Sewer Sanitation Funds Service Government Units Entity
Receivables:
Taxes and assessments $1,440,434 $ 265,363 $ - $ - $ - $ - $ 1,705,797 $ 11,352 $ 1,717,149
Customer and trade - - 4,478,346 1,315,361 166,297 - 5,960,004 - 5,960,004
Other City funds 1,871,825 268,980 - - - - 2,140,805 - 2,140,805
Government agencies 3,546,267 3,951,986 51,419 313,248 - 7,862,920 1,238,336 9,101,256
Other 1,439,368 156,727 50,082 - 51,273 96,288 1,793,738 - 1,793,738
W Restricted—other - - 8.820 - - - 8,820 - 8,820
Gross receivables 8,297,894 4,643,056 4,588,667 1,315,361 530,818 96,288 19,472,084 1,249,688 20,721,772
Less: Allowance for
uncollectible accounts ( 648.195) ( 64.768) ( 862.942) ( 290.272) ( 39,515) - ( 1.905.692) - ( 1.905.692)
Net total receivables $7 649.699 $4 578.28Ft $3.725 725 11 025 089 $491,303 $96,288 $17 566 392 $1 249 688 $18.816 08Q
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 $1,584,363 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 30,2008
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, 2008 was $.59246 per $100 which means that the City has a tax margin of
$1.65754 per $100, and could raise up to $69,476,514 additional tax revenue a year from the
present assessed valuation of$4,191,543,723 before the limit is reached.
Note 6 - RESTRICTED ASSETS- WATER AND SEWER FUND
Restricted assets in the Water and Sewer Fund, held for specific purposes in accordance with
bond ordinances or other legal restrictions, are comprised of the following:
For Debt Service:
Cash and cash equivalents $12,945,497
For Capital Improvements:
Cash and cash equivalents 68,676,218
Receivables 8,820
For Customer Deposits:
Cash and cash equivalents 2.627.021
Total $84.257.556
Note 7 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2008 was as follows:
38
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 7 - CAPITAL ASSETS (CONT'D.)
Balance Balance
Governmental activities: October 1, September 30,
2007 Increases Decreases 2008
Capital assets not being depreciated:
Land $ 8,818,529 $ - $ 16,234 $ 8,802,295
Construction in progress 3.703.893 11.857.696 7.273.947 8.287.642
Total capital assets not being depreciated 12.522.422 11.857.696 7,290.181 17,089.937
Capital assets being depreciated:
Land betterments 15,839,056 7,170,560 172,674 22,836,942
Buildings, systems and improvements 59,271,776 516,185 696,507 59,091,454
Infrastructure 142,405,827 6,984,983 4,851,903 144,538,907
Machinery and equipment 19,753,570 796,451 3,664,190 16,885,831
Furniture and fixtures 224,864 4,660 15,877 213,647
Motor vehicles 31.485 - 31.485 -
Total capital assets being depreciated 237.526.578 15.472.839 9.432.636 243.566.781
Less accumulated depreciation for:
Land betterments 2,578,698 328,091 81,771 2,825,018
Buildings,systems and improvements 12,441,369 1,224,351 509,968 13,155,752
Infrastructure 77,004,048 2,768,204 69,186 79,703,066
Machinery and equipment 9,085,702 938,558 3,609,633 6,414,627
Furniture and fixtures 210,192 5,703 15,877 200,018
Motor vehicles 31.485 - 31.485 -
Total accumulated depreciation 101.351.494 5.264.907 4.317.920 102,298.481
Total capital assets being depreciated, net 136.175,084 10.207,932 5.114.716 141,268.300
Governmental activities capital
assets, net $148.697.506 $22.065.628 $12.404.897 $158.358.237
39
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2008
Note 7 - CAPITAL ASSETS(CONT'D.)
Balance Balance
Business-type activities: October 1, September 30,
2007 Increases Decreases 2008
Capital assets not being depreciated:
Land $ 8,201,918 $ - $ - $ 8,201,918
Construction in progress 38.000.112 12,134,010 34,374,954 15.759.168
Total capital assets not being depreciated 46.202.030 12.134,010 34.374.954 23.961.086
Capital assets being depreciated:
Land betterments 26,311,851 812,668 - 27,124,519
Buildings, systems and improvements 200,375,098 39,931,932 387,220 239,919,810
Machinery and equipment 6,662,582 241,457 178,931 6,725,108
Furniture and fixtures 45,379 - 1,152 44,227
Motor vehicles 40.496.870 3.372.126 2.290.916 41,578.080
Total capital assets being depreciated 273.891.780 44.358.183 2.858,219 315,391.744
Less accumulated depreciation for:
Land betterments 10,848,205 445,863 - 11,294,068
Buildings, systems and improvements 70,581,998 4,174,760 224,550 74,532,208
Machinery and equipment 4,167,654 289,596 176,043 4,281,207
Furniture and fixtures 33,251 3,472 1,152 35,571
Motor vehicles 27,499,031 3,144,459 2.147.578 28.495.912
Total accumulated depreciation 113.130.139 8.058.150 2,549,323 118.638.966
Total capital assets being depreciated, net 160.761.641 36.300.033 308.896 196.752.778
Business-type activities capital
assets, net $206.963.671 $ 48 434 043 $34.683.850 $220.713.864
Depreciation expense was charged to functions as follows:
Governmental activities:
Administrative services $ 408,535
Police 678,242
Fire 124,389
Parks and recreation 151,124
Accounting/finance 129,389
Community development 21,887
Public works 2,578,194
Health 97,717
Traffic and transportation 263,127
Multi-Purpose Events Center 812,303
Total governmental depreciation $5.264.907
40
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2008
Note 7 - CAPITAL ASSETS (CONT'D.)
Business-type activities:
Municipal Airport $ 52,289
Kickapoo Airport 255,422
Transit 351,105
Sanitation 2,328,570
Water and sewer 5,027,304
Stormwater drainage 43,460
Total business-type depreciation $8.058.150
Note 8 - RETIREMENT PLANS
Texas Municipal Retirement System
Plan Description
The City provides pension benefits for substantially all of its full-time employees, except
firefighters, through a nontraditional, joint contributory, defined benefit plan in the state-wide
Texas Municipal Retirement System (TMRS), one of 827 administered by TMRS, an agent
multiple-employer public employee retirement system.
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.
Plan Changes
At its December 8, 2007 meeting, the TMRS Board of Trustees adopted actuarial assumptions
to be used in the actuarial valuation for the year ended December 31, 2007. A summary of
actuarial assumptions and definitions can be found in the December 31, 2007 TMRS
Comprehensive Annual Financial Report(CAFR).
41
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2008
Note 8 - RETIREMENT PLANS (CONT'D.)
Since its inception, TMRS has used the Unit Credit actuarial funding method. This method
accounts for liability accrued as of the valuation date, but does not project the potential future
liability of provisions adopted by a city. Two-thirds of the cities participating in TMRS have
adopted the Updated Service Credit and Annuity Increases provisions on an annually repeating
basis. For the December 31, 2007 valuation, the TMRS Board determined that the Projected
Unit Credit (PUC) funding method should be used, which facilitates advance funding for future
updated service credits and annuity increases that are adopted on an annually repeating basis.
In addition, the Board also adopted a change in the amortization period from a 25-year "open"
to a 25-year "closed" period. TMRS Board of Trustees rules provide that, whenever a change
in actuarial assumptions or methods results in a contribution rate increase in an amount
greater than 0.5%, the amortization period will be increased to 30 years, unless a city requests
that the period remain at 25 years. For cities with repeating features, these changes would
likely result initially in higher required contributions and lower funded ratios; however, the
funded ratio should show steady improvement over time. To assist in this transition to higher
rates, the Board also approved an eight-year phase-in period, which will allow cities the
opportunity to increase their contributions gradually (approximately 12.5% each year) to their
full rate (or their required contribution rate).
If the changes in the actuarial funding method and assumptions had not been adopted for the
2007 valuation, the City's unfunded actuarial accrued liability would have been $34,688,421
and the funded ratio would have been 67.0%.
In addition, TMRS is currently working on its legislative package for 2009. There is a possibility
that the investment rate of return (IRR) assumption of 7% would need to be lowered if desired
legislation for the 2009 session is unsuccessful. Maintaining a 7% IRR assumption is
contingent in part on the continued diversification of the TMRS portfolio, from an almost
exclusive bond portfolio to a portfolio that includes equities as well. If state legislation needed
to facilitate the continued diversification is not enacted, TMRS may have to revisit the continued
diversification of the portfolio and consider reducing the assumed IRR. A reduction in the IRR
would result in increased actuarial accrued liabilities, thus causing further increases in City
contribution rates, following the December 31, 2009 actuarial valuation.
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
42
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2008
Note 8 - RETIREMENT PLANS (CONT'D.)
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, 2007 valuation is effective for rates beginning January
2009).
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.
Contributions
The contribution rate for the firefighters is 11% (increased from 9% effective August 5, 1998)
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, 2006
was 34.6 years.
43
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2008
Note 8 - RETIREMENT PLANS (CONT'D.)
Schedule of Actuarial Liabilities and Funding Progress
Texas
Municipal Firemen's
Retirement Relief and
System Retirement Total
Actuarial Valuation Date 12/31/07 12/31/06 *
Actuarial Value of Assets $ 70,561,545 $35,584,639 $106,146,184
Actuarial Accrued Liability(AAL) 120,374,701 47,582,190 167,956,891
Percentage Funded 58.6% 74.8% 63.2%
Unfunded Actuarial Accrued Liability(UAAL) 49,813,156 11,997,551 61,810,707
Annual Covered Payroll 35,873,970 7,697,370 43,571,340
UAAL as a Percentage of Covered Payroll 138.9% 155.9% 141.9%
Net Pension Obligation (NPO)at
the Beginning of the Period -0- -0- -0-
Annual Pension Cost:
Annual Required Contribution(ARC) $ 4,599,517 $ 1,014,374 $ 5,613,891
Interest on NPO -0- -0- -0-
Adjustment to the ARC -0- -0- -0-
Annual Pension Cost $ 4.599.517 $ 1.014.374 $ 5.613 891
Percentage of Annual Pension Costs Contributed 100% 100% 100%
Contributions Made $ 4,599,517 $ 1,014,374 $ 5,613,891
Increase in NPO -0- -0- -0-
NPO At the End of the Period $ 4.599.517 $ 1.014.374 $ 5.613.891
Two preceding years:
2006:
Annual Pension Cost $ 4,268,611 $ 836,038 $ 5,104,649
Percentage of Annual Pension Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
2005:
Annual Pension Cost $ 4,012,343 $ 783,396 $ 4,795,739
Percentage of Annual Pension Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
* 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, 2008.
44
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 8 - RETIREMENT PLANS(CONT'D.)
Actuarial Assumptions
Texas
Municipal Firemen's
Retirement Relief and
System Retirement
Actuarial Cost Method Projected Unit Credit Entry Age
Amortization Method Level Percent of Payroll Level Percent of Payroll
Remaining Amortization Period 30 Years 34.6 Years
Amortization Period Closed Closed
Asset Valuation Method Amortized Cost Smooth Market Value
Investment Rate of Return 7% 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.
Note 9 - 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 10 - 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 at a cost of$1.00 per year for a period of fifty years,
beginning May 15, 1959 and expiring May 14, 2009. Additional rent is based on landing fees at
a rate of $1.8264 per scheduled landing. Landing fees collected and paid on this lease were
$4,193 for the fiscal year ended September 30, 2008.
Note 11 - 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, 2008.
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, 2008:
45
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2008
Note 11 - DESCRIPTION OF LEASING ARRANGEMENTS (CONT'D.)
Year ending September 30:
2009 $264,978
2010 236,914
2011 213,264
2012 170,395
2013 16.349
Total minimum payments required $901.900
The total minimum payments do not include contingent rentals which may be paid under the
airport lease based on the number of scheduled landings.
The following schedule shows the composition of total rental expenses for all operating leases
for the year ended September 30, 2008:
Minimum rentals $144,761
Contingent rentals 4.193
Total rentals $148.954
Note 12 - LONG-TERM LIABILITIES
Long-term liabilities transactions for the year ended September 30, 2008 are summarized as
follows:
Balance at Balance at
October 1, Retired and September 30, Due Within
2007 Issued Transferred(1) 2008 One Year
Governmental Activities:
General obligation bonds $ 7,390,000 $ - $ 910,000 $ 6,480,000 $ 945,000
Combination tax and revenue bonds 25,396,016 - 1,528,788 23,867,228 1,162,502
Note payable 61,093 - 61,093 - -
Accrued vacation and sick
leave payable 6,424,479 1,985,515 1,612,112 6,797,882 1,700,000
Claims and judgments payable 381.101 856.585 914.909 322.777 182.581
Total governmental activities 39.652.689 2.842.100 5.026.902 37.467.887 3.990.083
Business-tvoe Activities:
Utility system revenue bonds,
net of premium(discount) 123,869,328 - 1,981,716 121,887,612 2,045,871
Combination tax and revenue bonds 27,864,844 - 3,385,612 24,479,232 3,474,464
Accrued vacation and sick
leave payable 464,207 457,844 429,417 492,634 425,000
Note payable 699,748 - 29,211 670,537 30,161
Landfill closure,post-closure costs 2.891.365 133.733 - 3.025.098 -
Total business-type activities 155.789.492 591.577 5.825.956 150.555.113 5.975.496
Total long-term liabilities $195 g t es 442 181 $ 3 433 677 $10 8.52 858 R1 RR 023 000 $ 9.965 579
(1) Includes bond premium amortization of $43,788 related to the combination tax and revenue
bonds (governmental activities), $111,716 related to revenue bonds, and $270,612 related to the
combination tax and revenue bonds (business-type activities).
46
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 12 - LONG-TERM LIABILITIES (CONT'D.)
The portion of long-term liabilities due within one year as reflected on Exhibit A-1 includes
$113,453 and $1,087,116 of accrued interest in governmental activities and business-type
activities, respectively.
For governmental activities, claims and judgments payable and compensated absences are
generally liquidated by the General Fund.
Bonds Payable
Bonds payable at September 30, 2008, 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 Payments Authorized at 9/30/08
General Obligation Bonds:
General Obligation Construction 3.75%- 9/01/21 $175,000 to $10,205,000 $ 6,480,000
and Refunding Bonds,Series 2001 5.375% $945,000
Total General Obligation Bonds 6.480.000
Combination Tax and Revenue Bonds:
Combination Tax and Revenue 3.00%- 9/01/18 $335,000 to 7,550,000 3,830,000
Certificates of Obligation,Series 2003 4.00% $775,000
Combination Tax and Revenue 2.00%- 8/01/12 $685,000 to 18,840,000 13,750,000
Refunding Bonds,Series 2004 5.00% $3,645,000
Plus bond premium 370,966
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 658,266
Combination Tax and Revenue 3.55%- 9/01/26 $580,000 to 16,875,000 15,590,000
Certificates of Obligation,Series 2006A 5.00% $1,225,000
Plus bond premium 383,635
Combination Tax and Revenue 5.20%- 9/01/26 $130,000 to 4,275,000 3,975,000
Certificates of Obligation,Series 2006E 6.25% $345,000
Plus bond premium 88.593
Total Combination Tax and Revenue Bonds 48.346.460
Revenue Bonds:
Water and Sewer Revenue Bonds:
Water&Sewer System Priority 4.05%- 8/01/18 $180,000 to 5,500,000 3,305,000
Lien Revenue Bonds, Series 1998E 4.65% $400,000
Water&Sewer System Priority 3.75%- 8/01/27 $1,220,000 to 118,770,000 6,060,000
Lien Revenue Bonds, Series 2001 5.375% $11,515,000
Plus bond premium 1,048,978
47
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 12 - LONG-TERM LIABILITIES (CONT'D.)
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Payments Authorized at 9/30/08
Water&Sewer Subordinate Lien 3.14%- 8/01/18 $25,000 to 8,060,000 7,810,000
Revenue Bonds,Series 1998 4.59% $3,320,000
Water&Sewer System Priority 4.00%- 8/01/27 $225,000 to 103,495,000 103,270,000
Lien Refunding Revenue Bonds, 4.50% $11,070,000
Series 2007
Plus bond premium 393.634
Total Revenue Bonds 121.887.612
Total All Bonds $176.714 072
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, 2008,
$517,001 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 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.
All of the Water and Sewer Revenue Bonds were issued for purposes of improving the City's water
and sewer systems and are serviced by the net revenues of the Water and Sewer Fund.
Notes Payable
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, 2008
is classified as follows:
Long-term $640,376
Current portion 30.161
Total $670.537
48
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 12 - LONG-TERM LIABILITIES (CONT'D.)
Aggregate maturities of the long-term debt(principal and interest)for the years subsequent to September 30, 2008 are as follows:
Combination Tax and
Year Ending General Obliaation Bonds Revenue Bonds Revenue Bonds Notes Payable Total
September 30. Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2009 $ 945,000 $ 312,631 $ 4,636,966 $ 2,135,675 $ 2,045,871 $ 5,337,669 $ 30,161 $ 21,813 $ 7,657,998 $ 7,807,788
2010 745,000 273,650 4,776,768 1,931,555 2,144,997 5,259,841 31,142 20,831 7,697,907 7,485,877
2011 340,000 241,988 4,921,926 1,769,450 2,223,966 5,170,244 32,155 19,818 7,518,047 7,201,500
2012 355,000 227,112 5,081,768 1,583,095 2,312,897 5,076,814 33,201 18,772 7,782,866 6,905,793
2013 370,000 210,694 3,651,402 1,251,458 4,076,664 4,970,994 34,281 17,692 8,132,347 6,450,838
2014-2018 2,140,000 764,081 14,541,752 4,307,673 28,540,841 22,081,301 188,878 70,991 45,411,471 27,224,046
2019-2023 1,585,000 166,531 6,238,653 2,130,960 44,837,809 14,188,000 221,664 38,205 52,883,126 16,523,696
co
2024-2027 - - 4.497.226 480.125 35.704.567 3.591.000 99.055 4.859 40.300.848 4.075.984
Totals $6.480.000 $2.196,687 $48.346.461 $15 58_9.991 $121.887.612 $65.675.863 $670,537 $212,981 $177 384.610 $83.675.522
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 13 - DEFEASED DEBT
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, 2008, $103,085,000 of the 2001
Water and Sewer System Priority Lien Revenue Bonds are considered defeased.
Note 14 - 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 $3,025,098 as of September 30, 2008, which is based on 15% usage of
the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of
$16,196,710 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 15 - INTERFUND BALANCES
Balances due to and due from other funds at September 30, 2008 consisted of the following:
Due To Fund Due From Fund Amount Purpose
General Fund Nonmajor Governmental Funds $1,663,104 Short-term loan
General Fund Water and Sewer Fund 16,037 Short-term loan
General Fund Nonmajor Enterprise Funds 192,684 Short-term loan
Total $1.871825
All amounts due are scheduled to be repaid within one year.
Balances due to and due from component units at September 30, 2008 consisted of the following:
Due To Fund Due From Fund Amount Purpose
Nonmajor Governmental Funds Wichita Falls 4B Sales Tax Corp. $ 268 98S) Construction funding
P
50
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 15 - INTERFUND BALANCES (CONT'D.)
All amounts due are scheduled to be repaid within one year.
Transfers to and from other funds during the year ended September 30, 2008 were as follows:
Transfers From Transfers To Amount Reason
General Fund Nonmajor Governmental Funds $ 1,580,728 Fund construction projects
General Fund Nonmajor Enterprise Funds 152,649 Supplement operating grants
General Fund Nonmajor Governmental Funds 267,779 Supplement operating grants
General Fund Internal Service Fund 376,505 Purchase capital assets
Nonmajor Governmental Funds Nonmajor Governmental Funds 413,712 Fund debt service payment
Nonmajor Governmental Funds Nonmajor Governmental Funds 1,652,541 Fund operating deficits
Nonmajor Governmental Funds Nonmajor Enterprise Funds 1,195,355 Purchase capital assets
Nonmajor Governmental Funds Internal Service Funds 380,613 Purchase capital assets
Nonmajor Governmental Funds General Fund 9,008 Supplement other sources
Nonmajor Governmental Funds Water and Sewer Fund 58,922 Fund construction projects
Nonmajor Governmental Funds Nonmajor Enterprise Funds 2,106,724 Fund construction projects
Water and Sewer Fund General Fund 752,323 Administrative overhead
Water and Sewer Fund Nonmajor Governmental Funds 500,000 Fund debt service payment
Water and Sewer Fund Nonmajor Enterprise Funds 5,365 Purchase capital assets
Water and Sewer Fund Internal Service Funds 86,743 Purchase capital assets
Sanitation Fund General Fund 1,130,884 Administrative overhead
Sanitation Fund Internal Service Funds 666,604 Purchase capital assets
Nonmajor Enterprise Funds Nonmajor Governmental Funds 135,382 Supplement operating grant
Nonmajor Enterprise Funds Nonmajor Governmental Funds 449,581 Fund debt service payment
Nonmajor Enterprise Funds Internal Service Funds 91,664 Purchase capital assets
Nonmajor Enterprise Funds Water and Sewer Fund 1,804 Fund construction projects
Internal Service Funds General Fund 312,000 Administrative overhead
Internal Service Funds Nonmajor Governmental Funds 65,000 Supplement operating grant
Total $12.391.886
Note 16 - COMMITMENTS AND CONTINGENCIES
Litiaation
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 $6,797,106 at September 30, 2008. This accrual is recorded as a long-term
liability in the Government-wide Statement of Net Assets.
51
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2008
Note 16 - COMMITMENTS AND CONTINGENCIES(CONT'D.)
Post-Retirement Health Care and Life Insurance Benefits
In addition to providing pension benefits, the City provides certain health care and life insurance
benefits for retired employees. Substantially all of the City's employees may become eligible for
those benefits if they reach normal retirement age while working for the City. The cost of retiree
health care is paid for by the retirees. The cost of life insurance benefits for 10 retirees is partially
funded by the City. The City's portion of these costs is recognized as expense when paid. For the
fiscal year ended September 30, 2008, these costs were not material to the financial statements.
Contract Commitment With West Texas Utilities Company
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, 2008 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.
Construction Contracts
At September 30, 2008, the City was committed to several construction contracts. The amounts
for which the various funds are committed to complete these contracts are as follows:
General Fund $ 1,891,000
Nonmajor Governmental Funds 10,228,163
Water and Sewer Fund 5,080,270
Sanitation Fund 1,105,047
Nonmajor Enterprise Funds 28.851
Total contract commitments $18.333.331
52
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2008
Note 16 - COMMITMENTS AND CONTINGENCIES(CONT'D.)
Federal and State Grants-Compliance Audits
The City participates in numerous Federal and State grants, on both a direct and state pass-
through basis, as well as on a service-provider basis. Principal among these are Community
Development Block Grants, Section 8 Housing Assistance, Home Investment Partnership
Agreement Program, and numerous health-related grants.
In connection with these grants, the City is required to comply with specific terms and agreements
as well as applicable Federal and State laws and regulations. Such compliance is subject to
review and audit by the grantors and their representatives.
In the opinion of management, the City has complied with all requirements. However, since such
programs are subject to future audit or review, the possibility of disallowed expenditures exists. In
the event of any disallowance of claimed expenditures, the City expects the resulting liability to be
immaterial.
Note 17 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED
COMPONENT UNITS
The City has four component units that are discretely presented in the City's basic financial
statements. Condensed financial information for the year ended September 30, 2008 is as follows:
Wichita Falls Wichita Falls
Economic 4B Sales Wichita Falls Wichita Falls
Development Tax Reinvestment Reinvestment
Corporation Corporation Zone#1 Zone#2 Totals
Condensed statement of net assets:
Cash,investments and other
current assets $22,160,263 $5,674,001 $119,801 $ 10,578 $27,964,643
Capital assets,net of accumulated
depreciation 2.379.128 - - - 2,379.128
Total assets 24.539,391 5.674,001 119.801 10.578 30.343,771
Accounts payable and other
current liabilities 85,295 - 6,667 - 91,962
Amount due to primary government - 268.980 - - 268.980
Total liabilities 85.295 268.980 6.667 - 360.942
Net assets $24.454.09R $5.405.021 $113,134 $ 10,57R $29.987 R29
53
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2008
Note 17 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED
COMPONENT UNITS(CONT'D.)
Wichita Falls Wichita Falls
Economic 4B Sales Wichita Falls Wichita Falls
Development Tax Reinvestment Reinvestment
Corooration Corooration Zone#1 Zone#2 Totals
Condensed statement of activities:
Expenses:
Community development $ 1.506.260 $4.679.541 $322,811 $154,569 $ 6.663.181
Program revenues:
Charges for services 108,258 - - - 108,258
Operating grants and contributions - 154,569 - - 154.569
Total program revenues 108.258 154.569 - - 262.827
Net program expense ( 1.398.002) ( 4.524.972) ( 322,811) ( 154,569) ( 6.400.354)
General revenues:
Tax revenues 3,558,983 3,558,983 154,122 163,953 7,436,041
Non-tax general revenues 771.581 258.518 6.326 1.194 1.037.619
Total general revenues and
transfers 4.330.564 3.817,501 160.448 165,147 8.473.660
Change in net assets 2,932,562 ( 707,471) ( 162,363) 10,578 2,073,306
Beginning net assets 21.521.534 6.112.492 275.497 - 27.909.523
Ending net assets $24 454.098 $5.405 021 $113,134 $ 10 578 $29 989 899
Note 18 - SUBSEQUENT EVENT
In January 2009, the City approved the issuance of Combination Tax and Revenue Certificates of
Obligation, Series 2009, in the amount of $10,820,000. The proceeds will be used for a police
firing range, an extension of the City's trail system, acquisition of land for a future City park, and
the construction of an animal reclaim center.
54
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, 2008
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 51,506,762 $ 51,506,762 $ 52,267,852 $ 761,090
Charges for services 2,832,489 2,832,489 2,822,862 (9,627)
Licenses and permits 2,212,939 2,212,939 2,116,140 (96,799)
Fines and forfeitures 2,074,000 2,074,000 1,810,517 (263,483)
Intergovernmental revenue 58,750 58,750 37,403 (21,347)
Contributions - - 2,041,353 2,041,353
Miscellaneous revenue 1,623,897 1,623,897 1,766,970 143,073
Total revenues 60,308,837 60,308,837 62,863,097 2,554,260
Expenditures:
Current:
Administrative services 9,874,718 9,852,870 9,150,356 702,514
Police 19,138,981 19,184,437 19,146,978 37,459
Fire 11,929,178 12,211,884 12,179,398 32,486
Parks and recreation 4,682,770 5,346,477 4,495,485 850,992
Acconnf ng/finance 2,105,098 2,155,538 2,087,572 67,966
Community development 1,868,745 1,916,584 1,671,168 245,416
Public works 4,949,659 5,242,395 5,103,359 139,036
Health 3,125,399 3,077,642 2,887,330 190,312
Traffic and transportation 2,306,432 2,359,335 2,296,484 62,851
Capital outlay 3,051,512 5,169,335 5,215,870 (46,535)
Total expenditures 63,032,492 66,516,497 64,234,000 2,282,497
Excess of revenues over(under) expenditures (2,723,655) (6,207,660) (1,370,903) 4,836,757
Other financing sources(uses):
Transfers in 2,320,207 2,320,207 2,204,215 (115,992)
Transfers out (392,638) (2,005,965) (2,377,660) (371,695)
Total other financing sources(uses) 1,927,569 314,242 (173,445) (487,687)
Excess of revenues and other sources
over(under)expenditures and other uses (796,086) (5,893,418) (1,544,348) 4,349,070
Fund balance- beginning 18,731,616 18,731,616 18,731,616 -
Fund balance-ending $ 17,935,530 $ 12,838,198 $ 17,187,268 $ 4,349,070
55
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2008
Demonstrating compliance with the adopted budget is an important component of a governments
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 governments original budget to the current
comparison of final budget and actual results.
The City adheres to the following procedures in establishing the operating budget reflected in the basic
financial statements:
On or before August 15 of each year, the City Manager submits to the City Council a proposed budget for
the fiscal year beginning the following October 1. The operating budget includes proposed expenditures
and the means of financing them. Public hearings are conducted. The budget is legally enacted by the
City Council through passage of appropriation and tax levying ordinances prior to September 30 and is
published under a separate cover.
An annual budget, including debt service requirements, is legally adopted for the General Fund, the
Community Development Block Grant Fund, the Section 8 Housing Fund, the HOME Investment
Partnership Agreement Fund, the Hotel/Motel Tax Fund, the Golf Fund, the MPEC Fund and the Debt
Service Fund, on a basis which is consistent with generally accepted accounting principles.
The City Council must approve any transfer of appropriation balances or portions thereof from one
department to another. The City Manager has the authority, without City Council approval, to transfer
appropriation balances from one expenditure account to another within a single department of the City.
Supplemental appropriations of $3,484,005 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.
56
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)
12/31/98 $ 53,779,205 $ 70,332,145 76.5% $ 16,552,940 $ 25,833,511 64.1%
12/31/99 58,074,582 76,394,376 76.0% 18,319,794 26,932,278 68.0%
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%
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.
57
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)
12/31/98(a) $ 19,916,831 $ 25,193,592 79.1% $ 5,276,761 $ 4,712,854 112.0%
12/31/99(a) - - - - - -
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) - - - - - -
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 and 2006 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.
58
Combining Financial Statements
*
TEXAS
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 Housing Fund
The Section 8 Housing Fund accounts for federal funds received to subsidize rents and
housing payments for lower income families within the City.
Home Investment Partnership Agreement Fund
The Home Investment Partnership Agreement Fund accounts for federal funds received to
provide home ownership opportunities to low income, first-time homebuyers through the
acquisition, rehabilitation and resale of single-family dwellings that are currently owned by
governmental agencies.
Hotel/Motel Tax Fund
The Hotel/Motel Tax Fund accounts for revenues derived from an occupancy tax which is
expended on programs promoting the growth of the City of Wichita Falls.
Airport Improvement Grant Fund
The Airport Improvement Fund accounts for federal funds received to make capital
improvements to the Kickapoo Downtown Airport.
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.
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 bonds 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.
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 30,2008
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 $ 2,945,428 $ 117,345 $ - $ (3,791) $ 118,750
Receivables:
Taxes and assessments - - - 121,434 - -
Component Unit - - - - - -
Government agencies 1,295,096 - 768,899 - 574,993 -
Other 225 10,224 - - - 50,594
Inventory - - - - - 9,272
Prepaid items - - - - - 2,673
Other assets - - - - - -
Total assets $ 1,295,371 $ 2,955,652 $ 886,244 $ 121,434 $ 571,202 $ 181,289
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable-trade $ 47,489 $ 930 $ - $ - $ 1,214 $ 132,168
Accrued payroll 8,756 12,486 1,982 - - 5,465
Payable to other City funds 240,222 - 1 113,981 133,689 -
Payable to government agencies - 91,431 - - 18,053 1,310
Other liabilities 8,923 - 44,743 - 7,695 10,565
Deferred revenue - - - - - -
Total liabilities 305,390 104,847 46,726 113,981 160,651 149,508
Fund balance:
Reserved for encumbrances 289,907 - - - - -
Reserved for debt service - - - - - -
Reserved for perpetual care - - - - - -
Unreserved:
Designated for subsequent
years expenditures 700,074 2,850,805 839,518 - 410,551 31,781
Undesignated - - - 7,453 - -
Total fund balance 989,981 2,850,805 839,518 7,453 410,551 31,781
Total liabilities and fund balance $ 1,295,371 $ 2,955,652 $ 886,244 $ 121,434 $ 571,202 $ 181,289
59
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
$ 35,280 $ 1,997,127 $ 515,578 $ 620,773 $ 1,251,293 $ 11,857,959 $ 3,859,289 $ 937,629 $ 24,252,710
- - 79,161 - - - - - 200,595
- - - - 268,980 - - - 268,980
- 775,722 13,640 523,634 - - - - 3,951,984
94,871 813 - - - - - - 156,727
53,787 - - - - - - - 63,059
56,704 30 - - - - - - 59,407
43,503 3,000 - - - - - - 46,503
$ 284,145 $ 2,776,692 $ 608,379 $ 1,144,407 $ 1,520,273 $ 11,857,959 $ 3,859,289 $ 937,629 $ 28,999,965
$ 27,314 $ 87,151 $ - $ - $ 57,677 $ 1,004,915 $ 372,202 $ - $ 1,731,060
64,478 67,812 - - - - - - 160,979
- 930,508 - - - - 244,702 - 1,663,103
3,978 2,750 - - - - - - 117,522
220,460 278,773 - - - 524,692 - - 1,095,851
- 37,236 91,378 - - - - - 128,614
316,230 1,404,230 91,378 - 57,677 1,529,607 616,904 - 4,897,129
- - - - - - - - 289,907
- - 517,001 1,144,407 - - - - 1,661,408
- - - - - - - 937,629 937,629
(32,085) 1,372,462 - - 1,462,596 10,328,352 3,242,385 - 21,206,439
- - - - - - - - 7,453
(32,085) 1,372,462 517,001 1,144,407 1,462,596 10,328,352 3,242,385 937,629 24,102,836
$ 284,145 $ 2,776,692 $ 608,379 $ 1,144,407 $ 1,520,273 $ 11,857,959 $ 3,859,289 $ 937,629 $ 28,999,965
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2008
Special Revenue
Home
Community Investment HoteV Airport
Development Section 8 Partnership Motel Improvement Golf
Block Grant Housing Agreement Tax Grant Fund
Revenues:
Taxes $ - $ - $ - $ 1,537,615 $ - $ -
Charges for services 4,850 - - - - 90,948
Fines and forfeitures - - - - - -
Intergovernmental revenue 1,451,090 2,511,460 514,869 - 1,142,706 -
Contributions - - - - - -
Miscellaneous revenue 4 129,627 29,371 - - 75,715
Total revenues 1,455,944 2,641,087 544,240 1,537,615 1,142,706 166,663
Expenditures:
Current:
Administrative services 135,000 - - 105,500 - 851,842
Police - - - - - -
Fire - - - - - -
Parks and recreation 22,858 - - - - -
Community development 786,126 3,580,586 465,339 - - -
Public works 118,145 - - - - -
Health - - - - - -
Traffic and transportation - - - - 12,967 -
Multi-Purpose Events Center - - - - - -
Capital outlay 195,043 - - - - 102,857
Debt service:
Principal retirement - - - - - -
Interest and paying agent fees - - - - - -
Total expenditures 1,257,172 3,580,586 465,339 105,500 12,967 954,699
Excess of revenues over
(under)expenditures 198,772 (939,499) 78,901 1,432,115 1,129,739 (788,036)
Other financing sources(uses):
Transfers in - - - - 111,332 784,391
Transfers out - - - (1,455,392) (1,195,355) -
Total other financing sources(uses) - - - (1,455,392) (1,084,023) 784,391
Net change in fund balance 198,772 (939,499) 78,901 (23,277) 45,716 (3,645)
Fund balance-beginning 791,209 3,790,304 760,617 30,730 364,835 35,426
Fund balance-ending $ 989,981 $ 2,850,805 $ 839,518 $ 7,453 $ 410,551 $ 31,781
60
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
$ - $ - $ 826,473 $ 523,634 $ - $ - $ - $ - $ 2,887,722
224,009 128,261 - - - - - - 448,068
153,874 - - - - - - 153,874
- 2,770,782 - - - - - - 8,390,907
- 189,536 1,636,386 - 1,736,888 500,000 33,500 - 4,096,310
1,783,201 785,292 31,892 27,262 1,925 475,421 174,268 88,741 3,602,719
2,007,210 4,027,745 2,494,751 550,896 1,738,813 975,421 207,768 88,741 19,579,600
- 260,293 - - - - 370,585 - 1,723,220
- 239,045 - - 131,628 7,173 - - 377,846
- 26,676 - - - 700 - - 27,376
- 301,157 - - - 22,097 - - 346,112
- 422,362 - - - - - - 5,254,413
- 123,272 - - - 228,508 33,500 - 503,425
- 1,888,088 - - - - - - 1,888,088
- 149,619 - - - - - - 162,586
3,506,091 - - - - - - - 3,506,091
282,697 132,591 - - 1,652,297 6,272,747 1,365,292 10,003,524
- - 2,395,000 - - - - - 2,395,000
- - 1,454,859 - - - 1,681 - 1,456,540
3,788,788 3,543,103 3,849,859 - 1,783,925 6,531,225 1,771,058 - 27,644,221
(1,781,578) 484,642 (1,355,108) 550,896 (45,112) (5,555,804) (1,563,290) 88,741 (8,064,621)
1,475,778 379,892 1,317,930 45,363 - 500,000 450,037 - 5,064,723
(62,774) (523,996) - (368,349) - (513,878) (1,697,130) - (5,816,874)
1,413,004 (144,104) 1,317,930 (322,986) - (13,878) (1,247,093) - (752,151)
(368,574) 340,538 (37,178) 227,910 (45,112) (5,569,682) (2,810,383) 88,741 (8,816,772)
336,489 1,031,924 554,179 916,497 1,507,708 15,898,034 6,052,768 848,888 32,919,608
$ (32,085) $ 1,372,462 $ 517,001 $ 1,144,407 $ 1,462,596 $ 10,328,352 $ 3,242,385 $ 937,629 $ 24,102,836
EXHIBIT C-3
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -COMMUNITY DEVELOPMENT BLOCK GRANT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ - $ - $ 4,850 $ 4,850
Intergovernmental revenue 1,496,218 1,451,090 1,451,090 -
Miscellaneous revenue - - 4 4
Total revenues 1,496,218 1,451,090 1,455,944 4,854
Expenditures:
Administrative services 135,000 135,000 135,000 -
Parks - 39,000 22,858 16,142
Community development 820,218 1,516,736 786,126 730,610
Public works 541,000 118,145 118,145 -
Capital outlay - 422,104 195,043 227,061
Total expenditures 1,496,218 2,230,985 1,257,172 973,813
Excess of revenues over(under) expenditures - (779,895) 198,772 978,667
Fund balance-beginning 791,209 791,209 791,209 -
Fund balance-ending $ 791,209 $ 11,314 $ 989,981 $ 978,667
61
EXHIBIT C-4
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -SECTION 8 HOUSING FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 4,548,352 $ 4,548,352 $ 2,511,460 $ (2,036,892)
Miscellaneous revenue - - 129,627 129,627
Total revenues 4,548,352 4,548,352 2,641,087 (1,907,265)
Expenditures:
Community development 4,547,052 5,832,079 3,580,586 2,251,493
Capital outlay 1,300 2,700 - 2,700
Total expenditures 4,548,352 5,834,779 3,580,586 2,254,193
Excess of revenues over(under) expenditures - (1,286,427) (939,499) 346,928
Fund balance- beginning 3,790,304 3,790,304 3,790,304 -
Fund balance-ending $ 3,790,304 $ 2,503,877 $ 2,850,805 $ 346,928
62
EXHIBIT C-5
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - HOME INVESTMENT PARTNERSHIP AGREEMENT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 514,869 $ 514,869 $ 514,869 $ -
Miscellaneous revenue - - 29,371 29,371
Total revenues 514,869 514,869 544,240 29,371
Expenditures:
Community development 514,869 1,245,773 465,339 780,434
Total expenditures 514,869 1,245,773 465,339 780,434
Excess of revenues over(under) expenditures - (730,904) 78,901 809,805
Fund balance-beginning 760,617 760,617 760,617 -
Fund balance-ending $ 760,617 $ 29,713 $ 839,518 $ 809,805
63
EXHIBIT C-6
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - HOTEL/MOTEL TAX FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 1,422,000 $ 1,530,162 $ 1,537,615 $ 7,453
Total revenues 1,422,000 1,530,162 1,537,615 7,453
Expenditures:
Administrative services 106,000 105,500 105,500 -
Total expenditures 106,000 105,500 105,500 -
Excess of revenues over(under) expenditures 1,316,000 1,424,662 1,432,115 7,453
Other financing sources (uses):
Transfers out (1,378,264) (1,455,392) (1,455,392) -
Total other financing sources(uses) (1,378,264) (1,455,392) (1,455,392) -
Excess of revenues and other sources
over(under)expenditures and other uses (62,264) (30,730) (23,277) 7,453
Fund balance-beginning 30,730 30,730 30,730 -
Fund balance-ending $ (31,534) $ - $ 7,453 $ 7,453
64
EXHIBIT C-7
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -GOLF FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ 35,913 $ 137,811 $ 90,948 $ (46,863)
Miscellaneous revenue - 28,851 75,715 46,864
Total revenues 35,913 166,662 166,663 1
Expenditures:
Administrative services 150,000 848,196 851,842 (3,646)
Capital outlay - 102,857 102,857 -
Total expenditures 150,000 951,053 954,699 (3,646)
Excess of revenues over(under)expenditures (114,087) (784,391) (788,036) (3,645)
Other financing sources (uses):
Transfers in 114,087 784,391 784,391 -
Total other financing sources (uses) 114,087 784,391 784,391 -
Excess of revenues and other sources
over(under)expenditures and other uses - - (3,645) (3,645)
Fund balance-beginning 35,426 35,426 35,426 -
Fund balance-ending $ 35,426 $ 35,426 $ 31,781 $ (3,645)
65
EXHIBIT C-8
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE- MPEC FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ 310,868 $ 230,868 $ 224,009 $ (6,859)
Miscellaneous revenue 1,898,311 1,819,790 1,783,201 (36,589)
Total revenues 2,209,179 2,050,658 2,007,210 (43,448)
Expenditures:
MPEC 3,501,036 3,420,213 3,506,091 (85,878)
Capital outlay - - 282,697 (282,697)
Total expenditures 3,501,036 3,420,213 3,788,788 (368,575)
Excess of revenues over(under) expenditures (1,291,857) (1,369,555) (1,781,578) (412,023)
Other financing sources(uses):
Transfers in 1,349,453 1,432,329 1,475,778 43,449
Transfers out (57,596) (62,774) (62,774) -
Total other financing sources (uses) 1,291,857 1,369,555 1,413,004 43,449
Excess of revenues and other sources
over(under)expenditures and other uses - - (368,574) (368,574)
Fund balance-beginning 336,489 336,489 336,489 -
Fund balance-ending $ 336,489 $ 336,489 $ (32,085) $ (368,574)
66
EXHIBIT C-9
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 830,543 $ 830,543 $ 826,473 $ (4,070)
Contributions - - 1,636,386 1,636,386
Miscellaneous revenue - - 31,892 31,892
Total revenues 830,543 830,543 2,494,751 1,664,208
Expenditures:
Debt service-principal 2,395,000 2,395,000 2,395,000 -
Debt service-interest and paying agent fees 1,454,859 1,454,859 1,454,859 -
Total expenditures 3,849,859 3,849,859 3,849,859 -
Excess of revenues over(under)expenditures (3,019,316) (3,019,316) (1,355,108) 1,664,208
Other financing sources (uses):
Transfers in 2,954,316 2,954,316 1,317,930 (1,636,386)
Total other financing sources(uses) 2,954,316 2,954,316 1,317,930 (1,636,386)
Excess of revenues and other sources
over(under)expenditures and other uses (65,000) (65,000) (37,178) 27,822
Fund balance-beginning 554,179 554,179 554,179 -
Fund balance-ending $ 489,179 $ 489,179 $ 517,001 $ 27,822
67
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.
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2008
Municipal Kickapoo
Airport Airport
ASSETS
Current assets:
Cash and cash equivalents $ 534,675 $ 140,722
Receivables (net of allowance for
uncollectible accounts):
Customer and trade - -
Government agencies - -
Other 25,011 26,262
Inventory - 62,134
Prepaid items 3,030 1,482
Other assets 2,000 -
Total current assets 564,716 230,600
Capital assets, net of accumulated depreciation 1,316,718 8,406,766
Total assets 1,881,434 8,637,366
LIABILITIES
Current liabilities payable from current assets:
Accounts payable -trade 7,870 28,292
Accrued payroll 3,594 8,403
Accrued vacation and sick leave 6,643 7,282
Payable to other City funds - -
Payable to government agencies 264 53
Other liabilities - 57
Total current liabilities payable
from current assets 18,371 44,087
Net assets:
Invested in capital assets 1,316,718 8,406,766
Unrestricted 546,345 186,513
Total net assets $ 1,863,063 $ 8,593,279
68
EXHIBIT D-1
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ - $ 2,964,643 $ 3,640,040
126,782 126,782
313,248 - 313,248
- - 51,273
62,134
491 - 5,003
2,000
313,739 3,091,425 4,200,480
659,075 5,522,621 15,905,180
972,814 8,614,046 20,105,660
19,061 2,865 58,088
36,766 5,360 54,123
16,878 6,976 37,779
192,684 - 192,684
317
- 11,269 11,326
265,389 26,470 354,317
659,075 5,522,621 15,905,180
48,350 3,064,955 3,846,163
$ 707,425 $ 8,587,576 $ 19,751,343
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Municipal Kickapoo
Airport Airport
Operating revenues:
Charges for services
Rents, concessions and other 430,561 1,025,300
Total operating revenues 430,561 1,025,300
Operating expenses:
Personnel services 79,206 202,001
Supplies and materials 1,571 683,808
Maintenance and repairs 49,636 8,743
Utilities and other services 107,256 99,643
Insurance and contract support 16,993 6,989
Other expenses 46,564 34,278
Depreciation and amortization 51,566 234,069
Total operating expenses 352,792 1,269,531
Operating income (loss) 77,769 (244,231)
Nonoperating revenues (expenses):
Interest income 20,539 4,140
Loss on sale of capital assets - (669)
Intergovernmental operating grants - -
Total nonoperating revenues (expenses) 20,539 3,471
Income (loss) before transfers 98,308 (240,760)
Transfers:
Transfers in 724,201 471,154
Transfers out (227,046)Net transfers 497,155 471,154
Net income (loss) 595,463 230,394
Net assets- beginning 1,267,600 8,362,885
Net assets-ending $ 1,863,063 $ 8,593,279
69
EXHIBIT D-2
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 210,676 $ 1,228,558 $ 1,439,234
14,180 89,782 1,559,823
224,856 1,318,340 2,999,057
792,867 116,160 1,190,234
357,308 548 1,043,235
404,467 15,903 478,749
64,551 662 272,112
65,851 - 89,833
46,829 229,158 356,829
32,233 43,459 361,327
1,764,106 405,890 3,792,319
(1,539,250) 912,450 (793,262)
87,221 111,900
(462) (1,131)
1,389,202 - 1,389,202
1,389,202 86,759 1,499,971
(150,048) 999,209 706,709
152,649 2,112,089 3,460,093
- (451,385) (678,431)
152,649 1,660,704 2,781,662
2,601 2,659,913 3,488,371
704,824 5,927,663 16,262,972
$ 707,425 $ 8,587,576 $ 19,751,343
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Municipal Kickapoo
Airport Airport
Cash flows from operating activities:
Receipts from customers and users $ 431,346 $1,026,551
Payments to suppliers (244,871) (880,685)
Payments to employees (58,703) (154,003)
Net cash provided (used) by operating activities 127,772 (8,137)
Cash flows from noncapital financing activities:
Intergovernmental operating grants - -
Interfund loan - -
Transfers out to other funds (227,046) -
Transfers from other funds 724,201 471,154
Net cash provided (used) by noncapital financing activities 497,155 471,154
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets (724,202) (473,468)
Net cash provided by(used for)capital
and related financing activities (724,202) (473,468)
Cash flows from investing activities:
Interest on investments 20,539 4,140
Net cash provided by investing activities 20,539 4,140
Net Increase (Decrease) in Cash and Cash Equivalents (78,736) (6,311)
Cash and Cash Equivalents- Beginning 613,411 147,033
Cash and Cash Equivalents- Ending $ 534,675 $ 140,722
70
EXHIBIT D-3
(Page 1 of 2)
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 24,369 $ 1,313,410 $ 2,795,676
(1,097,535) (444,287) (2,667,378)
(610,792) (90,249) (913,747)
(1,683,958) 778,874 (785,449)
1,389,202 - 1,389,202
192,684 - 192,684
(451,385) (678,431)
152,649 2,112,089 3,460,093
1,734,535 1,660,704 4,363,548
(77,141) (2,217,034) (3,491,845)
(77,141) (2,217,034) (3,491,845)
87,221 111,900
87,221 111,900
(26,564) 309,765 198,154
26,564 2,654,878 3,441,886
$ - $ 2,964,643 $ 3,640,040
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS (CONT'D.)
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Municipal Kickapoo
Airport Airport
Cash flows from operating activities:
Operating income (loss) $ 77,769 $ (244,231)
Adjustments to reconcile operating income(loss)
to net cash provided by(used in) operating
activities:
Depreciation and amortization 51,566 234,069
(Increase) decrease in current assets:
Receivables:
Customer and trade - -
Other 785 1,251
Inventory - (26,148)
Prepaid items 2,667 177
Other assets (2,000) -
Increase (decrease) in current liabilities:
Accounts payable-trade (1,218) 24,646
Accrued payroll 808 915
Accrued vacation and sick leave 152 1,327
Payable to government agencies (7) 16
Other liabilities (2,750) (159)
Total adjustments 50,003 236,094
Net cash provided by(used in)
operating activities $ 127,772 $ (8,137)
71
EXHIBIT D-3
(Page 2 of 2)
I
Stormwater
Transit Drainage Totals
$(1,539,250) $ 912,450 $ (793,262)
32,233 43,459 361,327
- (4,930) (4,930)
(200,487) - (198,451)
- - (26,148)
(491) - 2,353
- - (2,000)
15,231 (156,125) (117,466)
8,806 1,101 11,630
- 249 1,728
- - 9
- (17,330) (20,239)
(144,708) (133,576) 7,813
$(1,683,958) $ 778,874 $ (785,449)
Wichita
TES.
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.
Employee Benefit Trust Fund
The Employee Benefit Trust Fund is used to account for and administer group health
insurance, which is self-insured by the City, and life insurance for employees and covered
dependents.
EXHIBIT E-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2008
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
ASSETS
Current assets:
Cash and cash equivalents $ 818,413 $ 69,953 $ 2,609,511 $ 3,497,877
Receivables:
Other 76,279 - 20,009 96,288
Inventory 828,210 10,099 - 838,309
Prepaid items 3,514 10,796 134 14,444
Total current assets 1,726,416 90,848 2,629,654 4,446,918
Capital assets, net of accumulated depreciation 15,912,663 59,681 758 15,973,102
Total assets 17,639,079 150,529 2,630,412 20,420,020
LIABILITIES
Current liabilities:
Accounts payable-trade 661,005 6,308 208,915 876,228
Accrued payroll 72,551 3,309 4,843 80,703
Accrued vacation and sick leave 59,726 1,808 - 61,534
Estimated health claims payable - - 528,197 528,197
Other liabilities 3,000 - - 3,000
Total current liabilities 796,282 11,425 741,955 1,549,662
NET ASSETS
Invested in capital assets 15,912,663 59,681 758 15,973,102
Unrestricted 930,134 79,423 1,887,699 2,897,256
Total net assets $ 16,842,797 $ 139,104 $ 1,888,457 $ 18,870,358
72
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, 2008
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Operating revenues:
Charges for services $ 9,947,343 $ 228,020 $ 25,566 $ 10,200,929
Rents, concessions and other 45,690 - 270,163 315,853
Contributions - - 8,122,226 8,122,226
Total operating revenues 9,993,033 228,020 8,417,955 18,639,008
Operating expenses:
Personnel services 1,748,858 82,617 112,197 1,943,672
Supplies and materials 4,255,653 29,834 13,108 4,298,595
Maintenance and repairs 1,588,948 718 - 1,589,666
Utilities and other services 118,896 1,162 16,452 136,510
Insurance and contract support 80,787 - 7,935,925 8,016,712
Other expenses 172,063 140,383 917,763 1,230,209
Depreciation and amortization 3,243,704 6,785 369 3,250,858
Total operating expenses 11,208,909 261,499 8,995,814 20,466,222
Operating income(loss) (1,215,876) (33,479) (577,859) (1,827,214)
Nonoperating revenues (expenses):
Interest income - - 71,480 71,480
Gain on sale of capital assets 20,558 - - 20,558
Total nonoperating revenues
(expenses) 20,558 - 71,480 92,038
Income(loss) before transfers (1,195,318) (33,479) (506,379) (1,735,176)
Transfers:
Transfers in 1,602,128 - - 1,602,128
Transfers out (377,000) - - (377,000)
Total transfers 1,225,128 - - 1,225,128
Net income(loss) 29,810 (33,479) (506,379) (510,048)
Net assets-beginning 16,812,987 172,583 2,394,836 19,380,406
Net assets-ending $ 16,842,797 $ 139,104 $ 1,888,457 $ 18,870,358
73
EXHIBIT E-3
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Cash flows from operating activities:
Receipts from customers and users $ 9,967,726 $ 228,020 $ 8,397,946 $ 18,593,692
Payments to suppliers (6,331,820) (173,450) (8,784,243) (15,289,513)
Payments to employees (1,326,873) (59,526) (84,723) (1,471,122)
Net cash provided(used)by operating activities 2,309,033 (4,956) (471,020) 1,833,057
Cash flows from noncapital financing activities:
Transfers in from other funds 1,602,128 - - 1,602,128
Transfers out to other funds (377,000) - - (377,000)
Net cash provided by noncapital financing activities 1,225,128 - - 1,225,128
Cash flows from capital and related
financing activities:
Acquisition of capital assets (3,472,133) - - (3,472,133)
Proceeds from sale of capital assets 163,896 - - 163,896
Net cash used for capital and
related financing activities (3,308,237) - - (3,308,237)
Cash flows from investing activities:
Interest on investments - - 71,480 71,480
Net Increase(Decrease)in Cash and Cash Equivalents 225,924 (4,956) (399,540) (178,572)
Cash and Cash Equivalents-Beginning 592,489 74,909 3,009,051 3,676,449
Cash and Cash Equivalents-Ending $ 818,413 $ 69,953 $ 2,609,511 $ 3,497,877
Cash flows from operating activities:
Operating income(loss) $ (1,215,876) $ (33,479) $ (577,859) $ (1,827,214)
Adjustments to reconcile operating income to net
cash provided(used)by operating activities:
Depreciation and amortization 3,243,704 6,785 369 3,250,858
(Increase)decrease in current assets:
Receivables:
Other (28,307) - (20,009) (48,316)
Inventory (500) 702 - 202
Prepaid items 8,134 17,842 (8) 25,968
Increase(decrease)in current liabilities:
Accounts payable-trade 288,132 1,704 73,194 363,030
Accrued payroll 7,424 713 1,100 9,237
Accrued vacation and sick leave 3,322 777 - 4,099
Estimated health claims payable - - 52,193 52,193
Other liabilities 3,000 - - 3,000
Total adjustments 3,524,909 28,523 106,839 3,660,271
Net cash provided(used)by
operating activities $ 2,309,033 $ (4,956) $ (471,020) $ 1,833,057
74
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.
Wichita
TEXAS
EXHIBIT F-1
CITY OF WICHITA FALLS, TEXAS
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deductions 9/30/2008
ESCHEATMENT FUND
Assets
Cash and cash equivalents $ 95,593 $ 16,612 $ 12,298 $ 99,907
Liabilities
Other liabilities $ 95,593 $ 26,926 $ 22,612 $ 99,907
75
Wichita
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#1
The Wichita Falls Reinvestment Zone #1 was created in March 1986 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#1 is to capture increments of growth in real
property values in the designated zone area from base values established in January 1986
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#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►
TEXAS
EXHIBIT G-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
COMPONENT UNITS
SEPTEMBER 30, 2008
Wichita Falls
Economic Wichita Falls Wichita Falls Wichita Falls
Development 4B Sales Tax Reinvestment Reinvestment
Corporation Corporation Zone#1 Zone#2 Totals
Assets
Cash and cash equivalents $21,541,095 $ 4,958,456 $ 119,027 $ - $26,618,578
Receivables:
Taxes and assessments - - 774 10,578 11,352
Government agencies 619,168 619,168 - - 1,238,336
Prepaid items - 96,377 - - 96,377
Capital assets, net of accumulated depreciation 2,379,128 - - - 2,379,128
Total assets 24,539,391 5,674,001 119,801 10,578 30,343,771
Liabilities
Accounts payable-trade 85,295 - 6,667 - 91,962
Payable to primary government - 268,980 - - 268,980
Total liabilities 85,295 268,980 6,667 - 360,942
Net assets
Investment in capital assets, net of related debt 2,379,128 - - - 2,379,128
Unrestricted 22,074,968 5,405,021 113,134 10,578 27,603,701
Total net assets $24,454,096 $ 5,405,021 $ 113,134 $ 10,578 $29,982,829
76
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Program Revenue
Operating
Charges for Grants and
Expenses Services Contributions
Community development
Wichita Falls Economic Development Corporation $ 1,506,260 $ 108,258 $ -
Wichita Falls 4B Sales Tax Corporation 4,679,541 - 154,569
Wichita Falls Reinvestment Zone#1 322,811 - -
Wichita Falls Reinvestment Zone#2 154,569 - -
Total component units $ 6,663,181 $ 108,258 $ 154,569
General revenues:
Taxes:
Property tax
Sales tax
Investment earnings
Miscellaneous
Total general revenues
Change in net assets
Net assets-beginning
Net assets-ending
77
EXHIBIT G-2
Net(Expense) Revenue and
Changes in Net Assets
Wichita Falls
Economic Wichita Falls Wichita Falls Wichita Falls
Development 4B Sales Tax Reinvestment Reinvestment
Corporation Corporation Zone#1 Zone#2 Totals
$ (1,398,002) $ - $ - $ - $ (1,398,002)
- (4,524,972) - - (4,524,972)
- - (322,811) - (322,811)
- - - (154,569) (154,569)
(1,398,002) (4,524,972) (322,811) (154,569) (6,400,354)
- - 154,122 163,953 318,075
3,558,983 3,558,983 - - 7,117,966
644,490 258,518 6,326 1,194 910,528
127,091 - - - 127,091
4,330,564 3,817,501 160,448 165,147 8,473,660
2,932,562 (707,471) (162,363) 10,578 2,073,306
21,521,534 6,112,492 275,497 - 27,909,523
$ 24,454,096 $ 5,405,021 $ 113,134 $ 10,578 $ 29,982,829
Wichita
TEXAS
Supporting Schedules
\ s
' \ ,V4N3ift‘
�x.
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES
SEPTEMBER 30,2008
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)
2009 $ 945,000 $ 312,631 $ 1,257,631 $ 4,636,966 $ 1,891,211 $ 6,528,177 $ 2,020,871
2010 745,000 273,650 1,018,650 4,776,768 1,725,825 6,502,593 2,119,997
2011 340,000 241,987 581,987 4,921,926 1,592,050 6,513,976 2,198,966
2012 355,000 227,113 582,113 5,081,767 1,439,272 6,521,039 2,287,897
2013 370,000 210,694 580,694 3,651,402 1,251,458 4,902,860 3,751,663
2014 385,000 193,581 578,581 3,706,868 1,189,335 4,896,203 3,898,431
2015 405,000 175,775 580,775 3,865,811 1,021,268 4,887,079 4,059,980
2016 425,000 154,512 579,512 4,053,240 843,970 4,897,210 4,226,351
2017 450,000 132,200 582,200 1,433,939 656,100 2,090,039 4,392,536
2018 475,000 108,013 583,013 1,481,894 597,000 2,078,894 4,578,541
2019 500,000 82,481 582,481 1,144,725 534,500 1,679,225 8,224,396
2020 530,000 55,606 585,606 1,192,410 484,210 1,676,620 8,575,823
2021 555,000 28,444 583,444 1,239,945 430,750 1,670,695 8,951,741
2022 - - - 1,297,351 374,438 1,671,789 9,337,675
2023 - - - 1,364,222 307,062 1,671,284 9,748,174
2024 - - - 1,425,925 235,938 1,661,863 10,177,748
2025 - - - 1,497,469 161,375 1,658,844 10,621,792
2026 - - - 1,573,832 82,812 1,656,644 11,085,785
2027 - - - - - - 3,819,245
$ 6,480,000 $ 2,196,687 $ 8,676,687 $ 48,346,460 $ 14,818,574 $ 63,165,034 $ 114,077,612
(1)Includes amortization of bond premium of$1,501,460.
(2)Includes amortization of bond premium of$1,442,612.
78
L
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
$ 4,980,625 $ 7,001,496 $ 25,000 $ 357,044 $ 382,044 $ 7,627,837 $ 7,541,511 15,169,348
4,903,820 7,023,817 25,000 356,021 381,021 7,666,765 7,259,316 14,926,081
4,815,270 7,014,236 25,000 354,974 379,974 7,485,892 7,004,281 14,490,173
4,722,912 7,010,809 25,000 353,902 378,902 7,749,664 6,743,199 14,492,863
4,618,190 8,369,853 325,000 352,804 677,804 8,098,065 6,433,146 14,531,211
4,470,630 8,369,061 310,000 338,374 648,374 8,300,299 6,191,920 14,492,219
4,308,338 8,368,318 300,000 324,455 624,455 8,630,791 5,829,836 14,460,627
4,138,637 8,364,988 275,000 310,835 585,835 8,979,591 5,447,954 14,427,545
3,961,744 8,354,280 3,180,000 298,350 3,478,350 9,456,475 5,048,394 14,504,869
3,777,550 8,356,091 3,320,000 152,388 3,472,388 9,855,435 4,634,951 14,490,386
3,595,450 11,819,846 - - - 9,869,121 4,212,431 14,081,552
3,239,325 11,815,148 - - - 10,298,233 3,779,141 14,077,374
2,856,825 11,808,566 - - - 10,746,686 3,316,019 14,062,705
2,457,000 11,794,675 - - - 10,635,026 2,831,438 13,466,464
i 2,039,400 11,787,574 - - - 11,112,396 2,346,462 13,458,858
1,602,900 11,780,648 - - - 11,603,673 1,838,838 13,442,511
1,146,600 11,768,392 - - - 12,119,261 1,307,975 13,427,236
669,825 11,755,610 - - - 12,659,617 752,637 13,412,254
171,675 3,990,920 - - - 3,819,245 171,675 3,990,920
$ 62,476,716 $ 176,554,328 $ 7,810,000 $ 3,199,147 $ 11,009,147 $ 176,714,072 $ 82,691,124 $ 259,405,196
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30, 2008
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)
79
EXHIBIT H-2
(Page 1 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
$ 10,205,000 $ 10,205,000 $ 3,725,000 $ 6,480,000
10,205,000 10,205,000 3,725,000 6,480,000
7,550,000 7,550,000 3,720,000 3,830,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.)
SEPTEMBER 30, 2008
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
80
EXHIBIT H-2
(Page 2 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
18,840,000 18,840,000 5,090,000 13,750,000
1,060,889 689,923 370,966
14,020,000 14,020,000 4,320,000 9,700,000
1,050,891 392,625 658,266
16,875,000 16,875,000 1,285,000 15,590,000
448,769 65,134 383,635
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30,2008
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 2006B-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 08/01/18 215,000 (1999)
Priority Lien Revenue Bonds, 4.45,4.55,4.625,4.65 180,000 (2000)
Series 1998E (2/1,8/1) 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)
305,000 (2012)
320,000 (2013)
335,000 (2014)
350,000 (2015)
365,000 (2016)
385,000 (2017)
400,000 (2018)
81
EXHIBIT H-2
(Page 3 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
4,275,000 4,275,000 300,000 3,975,000
103,279 14,686 88,593
61,560,000 64,223,828 15,877,368 48,346,460
5,500,000 5,500,000 2,195,000 3,305,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30, 2008
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)
1,615,000 (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
82
EXHIBIT H-2
(Page 4 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
118,770,000 118,770,000 112,710,000 6,060,000
-
1,634,193 585,215 1,048,978
103,495,000 103,495,000 225,000 103,270,000
- 437,938 44,304 393,634
227,765,000 229,837,131 115,759,519 114,077,612
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.)
SEPTEMBER 30, 2008
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 08/01/18 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)
25,000 (2012)
325,000 (2013)
310,000 (2014)
300,000 (2015)
275,000 (2016)
3,180,000 (2017)
3,320,000 (2018)
Total Subordinate Lien Bonds
Total Revenue Bonds
Total All Bonds
83
EXHIBIT H-2
(Page 5 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
8,060,000 8,060,000 250,000 7,810,000
8,060,000 8,060,000 250,000 7,810,000
235,825,000 237,897,131 116,009,519 121,887,612
$ 307,590,000 $ 312,325,959 $ 135,611,887 $ 176,714,072
Wichita ,,
TEXAS XX
EXHIBIT H-3
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE COVERAGE - REVENUE BONDS
SEPTEMBER 30, 2008
Water and Sewer Revenue Bonds:
Change in net assets (Exhibit A-8) $ 6,642,371
Add:
Depreciation and amortization $ 4,531,756
Interest expense and paying agent fees 6,391,968
Transfers out 13,010,450 23,934,174
Subtract:
West Texas Utilities water revenues 550,232
Gain (loss) on sale/abandonment of capital assets (79,145)
Capital contributions from developers 1,021,644
Transfers in 11,726,745 (13,219,476)
Net earnings for determining debt service coverage $17,357,069
Priority Subordinate
Lien Bonds Lien Bonds
Net earnings for determining debt service coverage $17,357,069
Principal and interest requirements to maturity $ 176,554,328 $11,009,147
Number of years remaining to pay bonds 19 10
Average annual principal and interest requirement 9,292,333 1,100,915
Minimum bond covenant debt service coverage 1.25 1.10
Minimum debt service coverage requirement $ 11,615,416 $ 1,211,006 12,826,422
Excess over debt service coverage requirements $ 4,530,647
84
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
SEPTEMBER 30,2008
Buildings Machinery
Land and and and
Betterments Improvements Equipment
Administrative services:
Mayor and City Council $ - $ 3,797 $ 1,376
City Manager 1,062,849 336,872 48,386
Personnel/Risk Management - - 5,889
Martin Luther King Center - 349,839 7,641
Library 477,942 4,523,930 587,091
General Public Information - - 271,121
Building Maintenance - 1,076,622 36,891
Nondepartmental - 448,771 163,583
Municipal Court 230,000 316,527 196,453
Legal - - 3,219
City Clerk - - 1,411
Homeland security - - 561,472
Training Center - 229,914
Golf course 3,851,459 533,046 75,526
Total administrative services 5,622,250 7,589,404 2,189,973
Police 1,131,749 6,067,418 10,971,090
Fire 201,218 5,430,148 237,291
Parks and recreation:
Recreation 632,858 1,715,321 204,340
Park maintenance 11,936,077 880,871 39,180
Cemetery 27,900 - 9,423
Total parks and recreation 12,596,835 2,596,192 252,943
Accounting/finance:
Accounting/finance - - 5,275
Information Systems - - 2,035,033
Total accounting/finance - - 2,040,308
Community development:
Planning - - 45,795
Inspection - - 7,447
Code enforcement - - 66,550
Property management 1,161,884 420,891 30,321
Lake lot administration - - 1,018
Weed and Seed program - - 7,504
Total community development 1,161,884 420,891 158,635
Public works:
Engineering 125,806 29,665 118,400
Street maintenance 28,547 98,073 15,833
Infrastructure - -
Total public works 154,353 127,738 134,233
Health:
Administration 34,820 2,871,076 325,538
General City nursing 76,411 1,123 46,818
Environmental health - 8,956 11,042
Lab water pollution - - 19,015
Total health 111,231 2,881,155 402,413
Traffic and transportation - 31,045 156,785
Multi-Purpose Events Center 9,560,210 33,947,463 342,160
Wichita Falls Business Park 1,099,507 - -
Total capital assets used in the operation of governmental funds $ 31,639,237 $ 59,091,454 $ 16,885,831
85
EXHIBIT H-4
Motor
Furniture Vehicles
and and Construction
Fixtures Equipment Infrastructure in Progress Totals
$ 5,218 $ - $ - $ - $ 10,391
15,050 - - - 1,463,157
4,660 - - - 10,549
11,416 - - 211,063 579,959
90,580 - - - 5,679,543
3,184 - - - 274,305
- - - - 1,113,513
- - - - 612,354
1,435 - - - 744,415
- - - - 3,219
- - - - 1,411
- - - - 561,472
- - - - 229,914
3,175 - - - 4,463,206
134,718 - - 211,063 15,747,408
10,184 - - 1,816,563 19,997,004
- - - 1,477,298 7,345,955
11,727 - - - 2,564,246
- - - - 12,856,128
- - - - 37,323
11,727 - - - 15,457,697
- - - - 5,275
- - - - 2,035,033
- - - - 2,040,308
- - - - 45,795
- - - - 7,447
- - - - 66,550
- - - - 1,613,096
- - - - 1,018
- - - - 7,504
- - - - 1,741,410
3,355 - - - 277,226
1,393 - - - 143,846
- - 136,688,845 4,782,718 141,471,563
4,748 - 136,688,845 4,782,718 141,892,635
21,835 - - - 3,253,269
2,147 - - - 126,499
- - - - 19,998
- - - - 19,015
23,982 - - - 3,418,781
- -
7,850,062 - 8,037,892
28,288 - - - 43,878,121
- - - - 1,099,507
$ 213,647 $ - $ 144,538,907 $ 8,287,642 $ 260,656,718
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, 2008
Beginning Ending
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Administrative services:
Mayor and City Council $ 10,391 $ - $ - $ 10,391
City Manager 1,464,287 2,020 3,150 1,463,157
Personnel/Risk Management 16,469 4,660 10,580 10,549
Martin Luther King Center 387,886 193,143 1,070 579,959
Library 5,731,232 - 51,689 5,679,543
General Public Information 329,253 26,782 81,730 274,305
Building Maintenance 1,115,870 3,004 5,361 1,113,513
Nondepartmental 701,680 - 89,326 612,354
Municipal Court 763,558 - 19,143 744,415
Legal 3,604 1,869 2,254 3,219
City Clerk 8,111 - 6,700 1,411
Homeland security 537,458 24,014 - 561,472
Training center 32,105 197,809 - 229,914
Golf course 3,026,822 1,468,149 31,765 4,463,206
Total administrative services 14,128,726 1,921,450 302,768 15,747,408
Police 20,056,857 1,849,525 1,909,378 19,997,004
Fire 6,359,344 1,436,238 449,627 7,345,955
Parks and recreation:
Recreation 2,862,621 7,066 305,441 2,564,246
Park maintenance 10,697,102 2,468,808 309,782 12,856,128
Cemetery 39,015 - 1,692 37,323
Total parks and recreation 13,598,738 2,475,874 616,915 15,457,697
Accounting/finance:
Accounting/finance 13,265 - 7,990 5,275
Information Systems 2,649,355 272,847 887,169 2,035,033
Total accounting/finance 2,662,620 272,847 895,159 2,040,308
Community development:
Planning 74,410 9,955 38,570 45,795
Inspection 43,958 - 36,511 7,447
Code enforcement 67,568 - 1,018 66,550
Property management 1,688,361 1,900 77,165 1,613,096
1 Lake lot administration 1,018 - - 1,018
Weed and Seed program 14,073 - 6,569 7,504
Total community development 1,889,388 11,855 159,833 1,741,410
Public works:
Engineering 307,101 2,268 32,143 277,226
Street maintenance 155,471 - 11,625 143,846
Infrastructure 134,735,423 6,785,311 49,171 141,471,563
Total public works 135,197,995 6,787,579 92,939 141,892,635
Health:
Administration 3,346,905 8,744 102,380 3,253,269
General city nursing 179,580 1,563 54,644 126,499
Environmental health 35,241 - 15,243 19,998
Lab water pollution 35,206 9,265 25,456 19,015
Total health 3,596,932 19,572 197,723 3,418,781
Traffic and transportation 7,885,544 221,534 69,186 8,037,892
Multi-Purpose Events Center 43,606,851 282,697 11,427 43,878,121
Wichita Falls Business Park 1,066,007 33,500 - 1,099,507
Total capital assets $ 250,049,002 $ 15,312,671 $ 4,704,955 $ 260,656,718
86
EXHIBIT H-6
CITY OF WICHITA FALLS, TEXAS
MUNICIPAL AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Capital Assets:
Land and betterments $1,461,823 $ 777,844 $ - $2,239,667
Buildings and improvements 1,549,912 - 1,911 1,548,001
Machinery and equipment 35,337 - 2,934 32,403
Furniture and fixtures 36,705 - - 36,705
Construction in progress 53,643 - 53,643 -
Total capital assets 3,137,420 777,844 58,488 3,856,776
Accumulated Depreciation:
Land and betterments 1,458,429 15,763 - 1,474,192
Buildings and improvements 989,537 30,056 1,911 1,017,682
Machinery and equipment 20,706 2,333 2,934 20,105
Furniture and fixtures 24,666 3,414 - 28,080
Total accumulated depreciation 2,493,338 51,566 4,845 2,540,059
Net capital assets $ 644,082 $ 726,278 $ 53,643 $ 1,316,717
87
EXHIBIT H-7
CITY OF WICHITA FALLS, TEXAS
KICKAPOO AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Capital Assets:
Land and betterments $5,376,443 $ 32,524 $ - $ 5,408,967
Buildings and improvements 385,377 2,206,739 - 2,592,116
Machinery and equipment 963,074 2,314 4,463 960,925
Construction in progress 1,988,167 220,058 1,988,167 220,058
Total capital assets 8,713,061 2,461,635 1,992,630 9,182,066
Accumulated Depreciation:
Land and betterments 380,374 153,346 - 533,720
Buildings and improvements 86,291 48,303 - 134,594
Machinery and equipment 78,360 32,420 3,794 106,986
Total accumulated depreciation 545,025 234,069 3,794 775,300
Net capital assets $8,168,036 $ 2,227,566 $1,988,836 $ 8,406,766
88
EXHIBIT H-8
CITY OF WICHITA FALLS, TEXAS
TRANSIT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Capital Assets:
Land and betterments $ 61,925 $ - $ - $ 61,925
Buildings and improvements 626,868 54,535 685 680,718
Machinery and equipment 240,751 26,607 5,177 262,181
Furniture and fixtures 1,152 - 1,152 -
Construction in progress 4,000 - 4,000 -
Total capital assets 934,696 81,142 11,014 1,004,824
Accumulated Depreciation:
Buildings and improvements 186,722 9,093 685 195,130
Machinery and equipment 132,656 23,140 5,177 150,619
Furniture and fixtures 1,152 - 1,152 -
Total accumulated depreciation 320,530 32,233 7,014 345,749
Net capital assets $ 614,166 $ 48,909 $ 4,000 $ 659,075
89
EXHIBIT H-9
CITY OF WICHITA FALLS, TEXAS
STORMWATER DRAINAGE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Capital Assets:
Drainage $2,598,005 $ 220,152 $ - $2,818,157
Land betterments - 2,300 - 2,300
Machinery and equipment 71,398 - 1,538 69,860
Construction in progress 800,390 2,177,741 183,159 2,794,972
Total capital assets 3,469,793 2,400,193 184,697 5,685,289
Accumulated Depreciation:
Drainage 58,804 7,294 - 66,098
Land betterments - 58 - 58
Machinery and equipment 61,481 36,107 1,076 96,512
Total accumulated depreciation 120,285 43,459 1,076 162,668
Net capital assets $3,349,508 $ 2,356,734 $ 183,621 $5,522,621
90
EXHIBIT H-10
CITY OF WICHITA FALLS, TEXAS
SANITATION FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Capital Assets:
Land and betterments $2,831,320 $ - $ - $2,831,320
Buildings and improvements 2,370,382 - 61,029 2,309,353
Machinery and equipment 280,090 54,969 24,951 310,108
Construction in progress 1,095,185 288,221 - 1,383,406
Total capital assets 6,576,977 343,190 85,980 6,834,187
Accumulated Depreciation:
Land and betterments 161,079 32,803 - 193,882
Buildings and improvements 1,224,722 49,696 42,257 1,232,161
Machinery and equipment 127,703 17,513 24,724 120,492
Total accumulated depreciation 1,513,504 100,012 66,981 1,546,535
Net capital assets $5,063,473 $ 243,178 $18,999 $5,287,652
91
EXHIBIT H-11
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Capital Assets:
Land and betterments $ 24,345,990 $ - $ - $ 24,345,990
Buildings, systems and
improvements 188,819,894 37,354,614 323,595 225,850,913
Machinery and equipment 4,496,874 153,456 139,871 4,510,459
Furniture and fixtures 1,164 - - 1,164
Motor vehicles 1,235 - - 1,235
Construction in progress 34,052,019 9,447,988 32,145,983 11,354,024
Total capital assets 251,717,176 46,956,058 32,609,449 266,063,785
Accumulated Depreciation:
Land and betterments 8,848,192 243,632 - 9,091,824
Buildings, systems and
improvements 66,302,650 3,947,012 179,695 70,069,967
Machinery and equipment 3,267,193 162,399 138,337 3,291,255
Furniture and fixtures 1,076 58 - 1,134
Motor vehicles 1,235 - - 1,235
Total accumulated depreciation 78,420,346 4,353,101 318,032 82,455,415
Net capital assets $173,296,830 $ 42,602,957 $32,291,417 $183,608,370
92
EXHIBIT H-12
CITY OF WICHITA FALLS, TEXAS
FLEET MAINTENANCE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Capital Assets:
Land and betterments $ 436,269 $ - $ - $ 436,269
Buildings and improvements 4,024,660 95,892 - 4,120,552
Machinery and equipment 575,055 4,114 - 579,169
Furniture and fixtures 6,358 - - 6,358
Motor vehicles 40,495,635 3,372,126 2,290,916 41,576,845
Construction in progress 6,706 - - 6,706
Total capital assets 45,544,683 3,472,132 2,290,916 46,725,899
Accumulated Depreciation:
Land and betterments-other 131 261 - 392
Buildings and improvements 1,733,271 83,304 - 1,816,575
Machinery and equipment 479,556 15,682 - 495,238
Furniture and fixtures 6,357 - - 6,357
Motor vehicles and equipment 27,497,795 3,144,457 2,147,578 28,494,674
Total accumulated depreciation 29,717,110 3,243,704 2,147,578 30,813,236
Net capital assets $15,827,573 $ 228,428 $ 143,338 $15,912,663
93
EXHIBIT H-13
CITY OF WICHITA FALLS, TEXAS
DUPLICATING SERVICES FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Capital Assets:
Machinery and equipment $ 127,895 $ - $ 11,205 $ 116,690
Accumulated Depreciation:
Machinery and equipment 61,429 6,785 11,205 57,009
Net capital assets $ 66,466 $ (6,785) $ - $ 59,681
94
EXHIBIT H-14
CITY OF WICHITA FALLS, TEXAS
EMPLOYEE BENEFIT TRUST FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Capital Assets:
Machinery and equipment $ 3,693 $ - $ 2,314 $ 1,379
Accumulated Depreciation:
Machinery and equipment 2,566 369 2,314 621
Net capital assets $ 1,127 $ (369) $ - $ 758
95
EXHIBIT H-15
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
10/1/2007 Additions Deletions 9/30/2008
Capital Assets:
Land and betterments $ 1,486,592 $ - $ 16,795 $ 1,469,797
Buildings and improvements 957,191 - - 957,191
Total capital assets 2,443,783 - 16,795 2,426,988
Accumulated Depreciation:
Buildings and improvements 28,716 19,144 - 47,860
Net capital assets $ 2,415,067 $ (19,144) $ 16,795 $ 2,379,128
96
.
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 97
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 103
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax.
Debt Capacity 107
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 112
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 114
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 SIX 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.
97
EXHIBIT I-1
2005-2006 2006-2007 2007-2008
$ 132,958,014 $ 133,737,880 $ 139,868,969
1,373,786 1,541,859 1,631,963
20,689,055 27,487,733 21,189,932
$ 155,020,855 $ 162,767,472 $ 162,690,864
$ 120,263,391 $ 132,852,246 $ 143,023,239
16,234,804 12,681,053 12,945,497
11,962,104 12,513,454 12,810,854
$ 148,460,299 $ 158,046,753 $ 168,779,590
$ 253,221,405 $ 266,590,126 $ 282,892,208
17,608,590 14,222,912 14,577,460
32,651,159 40,001,187 34,000,786
$ 303,481,154 $ 320,814,225 $ 331,470,454
EXHIBIT 1-2
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET ASSETS
LAST SIX FISCAL YEARS(UNAUDITED)
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Expenses
Governmental activities:
Administrative services $ 9,816,232 $ 9,524,291 $ 9,174,786 $ 10,648,044 $ 10,363,134 $ 11,662,086
Police 16,082,473 16,283,542 17,107,502 17,733,480 18,587,210 20,527,967
Fire 9,742,147 10,058,363 10,337,851 10,825,964 11,295,623 12,492,842
Parks and recreation 4,112,071 4,164,247 4,220,079 4,210,463 4,478,311 5,107,579
Accounting/finance 1,721,239 1,851,988 1,841,475 1,843,810 1,893,389 2,231,952
Community development 7,536,269 7,897,167 7,181,397 6,293,156 6,573,917 6,921,352
Public works 5,627,020 6,404,132 6,742,355 7,706,209 8,616,348 8,314,596
Health 4,632,486 4,523,907 4,435,702 4,409,374 4,736,162 4,873,643
Traffic and transportation 2,138,240 1,983,322 2,181,799 2,527,270 2,590,309 2,679,026
Multi-Purpose Events Center 622,406 1,589,670 2,015,329 2,166,331 4,291,434 4,335,968
Interest and fees on long-term debt 905,959 921,705 843,358 721,762 1,308,748 1,405,383
Total governmental activities expenses 62,936,542 65,202,334 66,081,633 69,085,863 74,734,585 80,552,394
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
co Kickapoo Airport 295,987 338,957 377,299 574,929 966,961 1,245,021
co
Transit 1,101,145 1,028,491 1,240,131 1,280,540 1,373,283 1,793,369
Sanitation 7,087,574 7,418,146 7,715,572 8,059,991 8,638,374 9,199,341
Water and Sewer 25,076,194 24,721,561 25,604,413 26,380,183 26,764,879 28,126,920
Stormwater drainage 10,633 112,082 125,989 328,833 355,697 407,035
Total business-type activities expenses 34,539,859 34,630,749 36,085,969 37,807,047 38,375,562 41,082,666
Total primary government expenses $ 97,476,401 $ 99,833,083 $ 102,167,602 $ 106,892,910 $ 113,110,147 $ 121,635,060
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
Police 401,168 372,510 361,201 402,583 700,216 600,020
Fire 2,062 3,233 1,458 5,195 5,434 2,612
Parks and recreation 513,109 479,204 455,861 473,121 443,827 517,707
Community development 771,418 1,265,897 1,078,293 1,195,203 1,138,671 1,124,534
Public works - - - 48,871 7,286 100,000
Health 590,441 668,491 711,399 807,002 803,115 864,874
Traffic and transportation 202,392 214,266 195,585 292,234 212,911 154,941
Multi-Purpose Events Center - - - - 2,215,411 2,141,584
Operating grants and contributions 9,469,723 11,968,460 14,734,689 11,109,618 12,298,595 11,468,654
Capital grants and contributions 2,608,168 6,970,138 1,176,107 2,667,389 3,218,003 3,097,319
Total governmental activities program revenues 17,817,796 25,573,219 22,355,308 20,692,627 24,370,988 23,283,791
EXHIBIT 1-2
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET ASSETS(CONT'D.)
LAST SIX FISCAL YEARS(UNAUDITED)
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
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
Kickapoo Airport 348,512 385,871 270,194 347,761 789,522 1,025,300
Transit 160,749 194,388 162,018 214,771 206,109 224,856
Sanitation 8,783,064 8,920,801 9,133,955 9,517,673 9,917,386 10,939,617
Water and Sewer 28,488,384 27,857,286 30,208,286 33,436,585 30,031,969 33,042,845
Stormwater drainage 1,035,683 1,036,450 1,042,278 1,209,196 1,267,533 1,318,340
Operating grants and contributions 817,451 937,025 926,088 1,251,770 1,026,685 1,389,202
Capital grants and contributions 879,222 376,437 862,398 455,217 580,729 1,021,644
Total business-type activities program revenues 41,559,224 40,802,329 43,674,039 47,709,412 44,261,404 49,392,365
Total primary government program revenues $ 59,377,020 $ 66,375,548 $ 66,029,347 $ 68,402,039 $ 68,632,392 $ 72,676,156
Net(Expense)/Revenue
Governmental activities $ (45,118,746) $ (39,629,115) $ (43,726,325) $ (48,393,236) $ (50,363,597) $ (57,268,603)
Business-type activities 7,019,365 6,171,580 7,588,070 9,902,365 5,885,842 8,309,699
Total primary government net expense $ (38,099,381) $ (33,457,535) $ (36,138,255) $ (38,490,871) $ (44,477,755) $ (48,958,904)
C
(D
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
Sales tax 16,598,733 17,192,703 17,845,505 19,272,204 20,068,529 21,353,896
Franchise fees 5,286,038 5,218,860 5,191,741 5,740,202 5,780,311 5,598,406
Hotel occupancy tax 1,221,620 1,278,102 1,262,518 1,333,747 1,417,397 1,560,353
Beverage tax 196,663 202,841 204,727 234,075 236,367 251,386
Bingo tax 230,280 209,825 164,128 178,666 166,223 168,864
Investment earnings 404,146 379,150 754,935 1,409,188 2,684,388 1,727,671
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
Transfers 5,748,106 2,241,628 473,644 2,482,958 1,972,819 525,898
Total governmental activities 50,888,763 48,586,813 48,642,634 54,346,286 58,013,550 57,191,997
Business-type activities:
Investment earnings 2,238,809 1,764,311 3,417,875 5,094,418 5,575,703 2,949,036
Miscellaneous 1,167,155 518,133 (73,611) - 199,174 -
Transfers (3,698,431) (2,241,628) (473,644) (2,482,958) (1,972,819) (525,898)
Total business-type activities (292,467) 40,816 2,870,620 2,611,460 3,802,058 2,423,138
Total primary government $ 50,596,296 $ 48,627,629 $ 51,513,254 $ 56,957,746 $ 61,815,608 $ 59,615,135
Change in Net Assets
Governmental activities $ 5,770,017 $ 8,957,698 $ 4,916,309 $ 5,953,050 $ 7,649,953 $ (76,606)
Business-type activities 6,726,898 6,212,396 10,458,690 12,513,825 9,687,900 10,732,837
Total primary government $ 12,496,915 $ 15,170,094 $ 15,374,999 $ 18,466,875 $ 17,337,853 $ 10,656,231
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)
1998-1999 1999-2000 2000-2001 2001-2002
General Fund
Reserved $ 1,293,074 $ 468,513 $ 1,328,430 $ 685,011
Unreserved 10,213,293 9,787,838 8,750,034 8,367,731
Total general fund $ 11,506,367 $ 10,256,351 $ 10,078,464 $ 9,052,742
All other Governmental Funds
Reserved $ 2,470,672 $ 2,174,801 $ 1,853,775 $ 1,937,961
Unreserved, reported in:
Special revenue funds 4,390,321 4,601,572 4,485,021 5,769,119
Capital projects funds 7,796,760 5,557,493 19,496,303 7,064,161
Total all other governmental funds $ 14,657,753 $ 12,333,866 $ 25,835,099 $ 14,771,241
100
EXHIBIT 1-3
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
$ 1,914,615 $ 1,516,079 $ 2,439,595 $ 2,393,129 $ 3,161,776 $ 2,686,432
8,368,357 9,507,595 10,608,472 11,503,795 15,569,840 14,500,836
$ 10,282,972 $ 11,023,674 $ 13,048,067 $ 13,896,924 $ 18,731,616 $ 17,187,268
$ 3,240,727 $ 11,092,483 $ 5,102,543 $ 3,179,513 $ 2,371,514 $ 2,888,944
4,163,834 4,673,755 4,299,100 4,746,615 7,089,584 6,180,559
3,205,633 3,394,688 3,738,484 4,857,539 23,458,510 15,033,333
$ 10,610,194 $ 19,160,926 $ 13,140,127 $ 12,783,667 $ 32,919,608 $ 24,102,836
CITY OF WICHITA FALLS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS-
LAST TEN FISCAL YEARS (UNAUDITED)
1998-1999 1999-2000 2000-2001 2001-2002
Revenues
Taxes $ 37,161,615 $ 40,069,102 $ 40,422,984 $ 41,798,664
Charges for services 2,309,728 1,763,969 1,825,170 2,153,223
Licenses and permits 535,989 660,715 1,892,099 1,918,690
Fines and forfeitures 1,268,941 1,551,929 1,404,205 1,797,795
Intergovernmental revenue 7,355,808 9,442,324 8,207,044 9,000,057
Contributions 106,902 88,612 3,451,239 837,213
Miscellaneous revenue 2,465,570 2,700,040 2,906,992 1,833,247
Total revenues 51,204,553 56,276,691 60,109,733 59,338,889
Expenditures
Administrative services 7,430,191 8,020,057 8,592,476 8,491,188
Police 12,535,741 13,944,759 14,062,836 14,716,145
Fire 7,881,872 8,389,594 8,447,773 9,084,534
Parks and recreation 3,312,665 4,025,279 3,626,134 3,821,791
Accounting/finance 1,300,773 1,331,432 1,489,661 1,702,554
Community development 5,474,886 5,518,983 5,635,484 5,970,759
Public works 5,276,132 6,048,016 4,760,212 6,204,297
Health 4,006,009 3,687,213 3,872,347 4,146,598
Traffic and transportation 1,723,929 1,768,336 1,778,879 2,261,335
Multi-Purpose Events Center - - - -
Capital outlay 753,120 3,809,884 4,852,858 13,910,949
Debt service- principal 1,537,350 1,612,677 1,690,000 1,805,000
Debt service- interest 939,934 866,006 875,128 1,181,524
Total expenditures 52,172,602 59,022,236 59,683,788 73,296,674
Excess of revenues over(under)
expenditures (968,049) (2,745,545) 425,945 (13,957,785)
Other Financing Sources (Uses)
Transfers in 5,499,480 2,688,753 14,439,112 3,450,446
Transfer out (982,275) (3,031,155) (9,310,328) (1,436,580)
Proceeds from general obligation bonds - - 10,218,670 -
Payment to refunded bonds escrow agent - - (3,025,400) -
Total other financing sources (uses) 4,517,205 (342,402) 12,322,054 2,013,866
Net change in fund balances $ 3,549,156 $ (3,087,947) $ 12,747,999 $(11,943,919)
Debt service as a percentage of
noncapital expenditures 4.82% 4.49% 4.68% 5.03%
101
EXHIBIT 1-4
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
$ 44,425,106 $ 45,512,949 $ 47,236,518 $ 50,228,509 $ 52,637,318 $ 55,155,574
2,338,678 2,452,353 2,480,148 2,597,044 3,202,699 3,270,930
2,001,117 2,292,695 2,218,119 2,206,023 2,215,813 2,116,140
1,773,449 2,189,001 2,161,782 2,481,816 2,127,062 1,964,391
9,469,723 11,444,840 13,003,816 9,682,237 11,136,433 8,428,310
2,698,930 7,493,758 2,906,980 4,094,770 4,366,961 6,137,663
1,539,063 2,007,303 1,985,383 2,816,865 6,664,315 5,369,689
64,246,066 73,392,899 71,992,746 74,107,264 82,350,601 82,442,697
9,169,430 9,330,631 8,701,521 10,103,642 9,965,494 10,873,576
15,586,666 15,996,964 16,731,373 17,228,066 18,068,168 19,524,824
9,456,869 9,851,203 10,196,605 10,739,651 11,238,422 12,206,774
3,920,357 4,016,394 4,106,476 4,110,013 4,373,460 4,841,597
1,604,484 1,757,006 1,754,186 1,765,350 1,811,690 2,087,572
7,569,296 8,137,672 7,282,012 6,355,136 6,652,162 6,925,581
5,311,740 4,488,704 4,653,539 5,128,384 6,038,790 5,606,784
4,513,769 4,452,507 4,391,270 4,407,758 4,728,414 4,775,418
1,923,176 1,768,336 1,937,424 2,309,854 2,355,249 2,459,070
57,848 783,244 1,205,153 1,355,846 3,498,189 3,506,091
10,333,520 8,235,652 10,171,128 7,244,115 7,093,636 15,219,394
2,120,000 2,970,000 3,050,000 3,190,000 2,510,000 2,395,000
924,557 900,526 852,624 731,921 1,271,106 1,456,540
72,491,712 72,688,839 75,033,311 74,669,736 79,604,780 91,878,221
(8,245,646) 704,060 (3,040,565) (562,472) 2,745,821 (9,435,524)
6,805,264 7,142,007 6,922,585 3,282,459 5,922,091 7,268,938
(2,437,133) (6,393,643) (7,878,421) (2,227,586) (5,401,565) (8,194,534)
2,450,000 7,549,000 - - 21,702,048 -
(2,450,000) - - - - -
4,368,131 8,297,364 (955,836) 1,054,873 22,222,574 (925,596)
$ (3,877,515) $ 9,001,424 $ (3,996,401) $ 492,401 $ 24,968,395 $ (10,361,120)
4.90% 6.01% 6.02% 5.82% 5.21% 5.02%
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
1998-1999 $15,793,043 $14,567,316 $ 5,422,604 $1,026,786 $ 166,792 $ 181,553 $37,158,094
1999-2000 17,327,503 15,832,239 5,519,843 1,048,419 163,916 173,603 40,065,523
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
102
EXHIBIT I-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
1998-1999 $2,237,301,030 $ 595,201,382 $2,832,502,412 $0.51284 $2,832,502,412 100.00%
1999-2000 2,448,370,999 605,524,662 3,053,895,661 0.55194 3,053,895,661 100.00%
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%
103
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
1998-1999 $ 0.51 $ 0.38 $ 1.49 $ 1.41 $ 1.30 $ 1.50 $ 6.59
1999-2000 0.55 0.38 1.49 1.60 1.24 1.50 6.76
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
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
104
EXHIBIT 1-8
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
SEPTEMBER 30, 2008
2007-2008 1998-1999
Percentage Percentage
Taxable of Total Taxable of Total
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Valuation Value Rank Valuation
Sikes Senter LP $ 54,134,300 1 1.02% $ - N/A 0.00%
Oncor Electric Delivery Co 40,973,290 2 0.77% 35,207,419 3 1.24%
1 Wal-Mart 35,170,703 3 0.66% 11,024,567 8 0.39%
Southwestern Bell 30,638,056 4 0.58% 44,784,467 1 1.58%
North American Pipe Corp 13,068,062 5 0.25% - N/A 0.00%
Lowe's Home Center 12,953,978 6 0.24% 13,101,679 4 0.46%
United Supermarkets LLC 12,327,913 7 0.23% - N/A 0.00%
HD Development Properties 11,960,975 8 0.22% - N/A 0.00%
Kell West Regional Hospital 11,352,391 9 0.21% - N/A 0.00%
Wichita Falls Clinic Real Estate Pa 11,109,760 10 0.21% 10,150,135 10 s•
JMB Group Trust III - N/A 0.00% 43,020,317 2 1.52%
ABB Control - N/A 0.00% 12,212,365 5 0.43%
Vista Cablevision - N/A 0.00% 11,576,675 6 0.41%
Deauville Partnership - N/A 0.00% 10,941,923 9 0.39%
Panhandle Manufacturing - N/A 0.00% 11,081,844 7 0.39%
Totals $ 233,689,428 4.39% $ 203,101,391 7.17%
105
Wichita
TEXAS
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
1998-1999 $ 14,526,149 $ 13,952,221 96.05% $ 518,787 $ 14,471,008 99.62%
1999-2000 16,115,557 15,690,461 97.36% 364,907 16,055,368 99.63%
2000-2001 16,791,261 16,365,706 97.47% 345,477 16,711,183 99.52%
2001-2002 17,635,425 17,210,516 97.59% 358,014 17,568,530 99.62%
2002-2003 19,439,511 18,962,880 97.55% 388,753 19,351,633 99.55%
2003-2004 20,039,039 19,646,529 98.04% 285,391 19,931,920 99.47%
2004-2005 20,919,473 20,494,272 97.97% 254,926 20,749,198 99.19%
2005-2006 22,034,951 21,612,888 98.08% 218,827 21,831,715 99.08%
2006-2007 23,421,270 23,043,185 98.39% 146,262 23,189,447 99.01%
2007-2008 24,833,219 24,408,683 98.29% - 24,408,683 98.29%
106
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
1998-1999 $ 15,315,000 $ - $ 2,676 $ 61,040,000
1999-2000 13,705,000 - - 58,695,000
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
107
EXHIBIT 1-10
Business-type Activities
Combination Total Percentage
Tax and Note Primary of Personal Per
Revenue Bonds Payable Government Income Capita
$ - $ 902,629 $ 77,260,305 2.12% $ 728.87
-
880,018 73,280,018 1.95% 683.72
- 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
EXHIBIT I-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
1998-1999 $ 15,315,000 $ - $ 15,315,000 0.54% $ 144.48
1999-2000 13,705,000 - 13,705,000 0.45% 127.87
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
108
EXHIBIT I-12
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT(UNAUDITED)
SEPTEMBER 30, 2008
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 $ 30,347,228 100% $ 30,347,228
Overlapping:
Wichita County 3,220,000 100% 3,220,000
Burkburnett Independent School District 13,401,565 25% 3,350,391
City View Independent School District 10,239,054 90% 9,215,149
Iowa Park Consolidated Independent
School District 4,247,491 2% 84,950
Wichita Falls Independent School District 79,186,708 99% 78,394,841
Total overlapping 110,294,818 94,265,331
Total direct and overlapping bonded debt $ 140,642,046 $ 124,612,559
Sources:
(1) Listed taxing jurisdictions
(2) City of Wichita Falls Planning Department
109
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN -
LAST TEN FISCAL YEARS(UNAUDITED)
Total assessed property value per 2007 tax roll $ 4,191,543,723
Maximum tax rate* $ 2.25/$100
Current tax rate for 2007 tax year .59246/$100
Maximum tax rate in excess of 2007 tax rate 1.65754/$100
Total legal debt margin $ 69,476,514
1998-1999 1999-2000 2000-2001 2001-2002
Assessed value $ 2,832,502,412 $ 3,053,895,661 $ 3,173,057,900 $ 3,338,764,157
Maximum tax rate $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100
Current tax rate .512838/$100 .55194/$100 .55194/$100 .55194/$100
Maximum tax rate in excess of current rate 1.737162/$100 1.69806/$100 1.69806/$100 1.69806/$100
Total legal debt margin $ 49,205,156 $ 51,856,981 $ 53,880,427 $ 56,694,219
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
110
EXHIBIT 1-13
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
$ 3,427,801,695 $ 3,530,992,589 $ 3,679,520,181 $ 3,719,230,165 $ 3,952,589,119 $ 4,191,543,723
$ 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 .59246/$100 .59246/$100
1.65754/$100 1.65754/$100 1.65754/$100 1.65754/$100 1.65754/$100 1.65754/$100
$ 56,817,184 $ 58,527,615 $ 60,989,519 $ 61,647,728 $ 65,515,746 $ 69,476,514
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 (1) Expenses (2) Debt Service
1998-1999 $ 22,692,770 $ 13,726,601 $ 8,966,169
1999-2000 21,974,510 13,688,360 8,286,150
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
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.
111
EXHIBIT 1-14
Debt Service Requirement
Principal (3) Interest Total Coverage
$2,140,000 $ 2,889,642 $ 5,029,642 1.78
2,345,000 2,776,148 5,121,148 1.62
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
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)
1998-1999 106,000 $ 3,640,252,000 $ 34,342 35.4 13.1 14,780 4.7%
1999-2000 107,178 3,754,338,162 35,029 35.4 13.1 14,084 4.4%
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%
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
112
l
EXHIBIT I-16
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO(UNAUDITED)
SEPTEMBER 30, 2008
2007-2008 1998-1999
Percentage Percentage
of Total of Total
City City
Employer Employees Rank Employment Employees Rank Employment
Sheppard Air Force Base 12,201 1 17.06% 13,088 1 N/A
Wichita Falls ISD 2,000 2 2.80% 1,700 3 N/A
North Texas State Hospital 1,987 3 2.78% 1,055 6 N/A
United Regional Health Care System 1,794 4 2.51% 2,100 2 N/A
City of Wichita Falls 1,576 5 2.20% 1,394 4 N/A
Midwestern State University 1,222 6 1.71% - N/A -
Wal-Mart-3 Locations 1,188 7 1.66% - N/A -
Howmet Corporation 1,020 8 1.43% 1,078 5 N/A
James B.Allred Prison Unit 908 9 1.27% 837 8 N/A
AT&T Wireless 836 10 1.17% - N/A -
Cryovac Division- Sealed Air Corp. 735 11 1.03% 738 9 N/A
Vetrotex America - N/A - 1,000 7 N/A
Stanley Works, Mechanics Division - N/A - 550 10 N/A
Totals 25,467 35.62% 23,540 0.00%
Sources:
1998-1999 data is from Texas Workforce Commission. 2007-2008 data is from Wichita Falls BCI &Texas A&M.
113
CITY OF WICHITA FALLS, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
1998-1999 1999-2000 2000-2001 2001-2002
Administrative services 85.1 85.3 84.3 87.5
Police 260.5 265.5 264.5 268.5
Fire 155.0 155.0 156.0 156.0
Parks and recreation 70.6 70.9 71.1 75.0
Accounting/finance 19.5 19.5 21.5 22.6
Community development 34.6 35.8 35.9 36.4
Public works 80.0 80.0 79.0 79.3
Health 99.6 84.5 82.8 81.8
Traffic and transportation 47.0 50.0 51.1 51.4
Multi-Purpose Events Center - - - -
Water and sewer 159.9 160.6 162.6 166.9
Sanitation 92.9 88.9 82.9 81.0
Golf 19.5 18.6 20.4 20.3
Municipal Airport 1.0 1.0 1.0 1.0
Kickapoo Airport - - 5.3 6.5
Transit 19.7 18.6 19.6 18.0
Stormwater Drainage - - - -
114
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CITY OF WICHITA FALLS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
1998-1999 1999-2000 2000-2001 2001-2002
General government
Building permits issued 7,172 8,769 10,541 9,177
Building inspections conducted - - - 10,076
Police
Physical arrests 5,950 5,851 5,406 7,992
Parking violations 601 1,049 1,009 1,024
Traffic violations 8,659 20,805 17,553 18,978
Fire
Emergency responses 6,667 6,912 7,484 7,542
Fires extinguished 747 832 864 663
Inspections 850 850 850 850
Refuse collection
Refuse collected (tons) 72,371 71,971 75,229 73,435
Recyclables collected - - - -
Library
Volumes in collection 127,460 129,890 137,502 150,686
Total volumes borrowed - - - -
Water
New connections - - 245 292
Water main breaks - 869 996 795
Average daily consumption 27,391 24,591 24,280 21,700
(thousands of gallons)
Wastewater
Average daily sewage treatment - 11,348 13,224 12,560
(thousands of gallons)
Transit
Total route miles 427,259 426,081 422,673 424,115
Passengers 171,945 200,237 223,502 196,217
Notes:
Data was not available for all items for all years. The City will provide more data as it becomes available.
115
EXHIBIT 1-18
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
10,270 10,159 8,904 7,553 7,813 7,420
12,276 12,600 13,092 12,591 12,048 11,425
7,927 7,847 8,284 8,571 7,279 6,752
558 1,284 1,615 327 383 197
19,946 23,385 21,075 24,126 17,904 16,236
7,040 7,535 7,677 8,234 8,634 8,684
775 668 757 792 554 1,340
850 850 850 850 900 2,647
74,426 82,973 79,555 78,165 182,855 168,681
- 1,926 2,328 2,018 19,034 21,624
157,641 210,976 225,941 172,391 179,728 184,231
292,359 304,644 295,088 293,884 302,565 352,408
327 335 312 325 310 212
737 691 573 881 741 898
21,900 20,400 22,100 23,680 19,936 22,511
12,348 11,026 12,404 11,097 13,930 11,410
407,121 - 450,938 435,446 476,758 488,842
245,908 - 247,303 229,601 294,670 324,666
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
1998-1999 1999-2000 2000-2001 2001-2002
Police
Stations 1 1 1 1
Patrol units - - - -
Fire stations 9 9 8 8
Refuse collection
Collection trucks - - - -
Other public works
Streets(miles) 585 565 542 542
Streetlights 7,026 7,166 7,377 7,457
Traffic signals - - - -
Parks and recreation
Acreage 1,100 1,100 1,100 1,200
Playgrounds 37 38 39 41
Golf courses 1 1 1 1
Water
Water mains(miles) 708 712 712 635
Fire hydrants - - - -
Storage capacity(thousands of gallons) - - - -
Wastewater
Sanitary sewers(miles) 499 506 506 516
Storm sewers(miles) 40 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.
116
EXHIBIT 1-19
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
1 1 1 1 1 1
- - - 114 114 103
8 8 8 8 8 8
- - - 34 34 36
542 542 585 585 587 515
7,600 7,738 7,825 7,926 7,922 7,976
109 111 111 102 98 102
1,200 1,100 1,200 1,200 1,200 1,200
43 45 47 47 47 47
1 1 1 1 1 1
720 714 566 830 846 720
- - - 6,000 6,019 2,264
- - - 14,000 21,500 21,000
506 508 529 529 531 538
41 41 96 96 96 117
- - - 56,600 21,410 21,410
12 12 12 12 12 12
Graphics
EXHIBIT J-1
CITY OF WICHITA FALLS , TEXAS
CASH AND INVESTMENTS
180
160
140
U) 120
11004
1/2 80
0 60
40
20
0
2004
2006
September 30, 2007
2008
(UNAUDITED)
117
EXHIBIT J-2
CITY OF WICHITA FALLS , TEXAS
TOTAL BONDS PAYABLE
200
e ..y b
:t: �¢K4y P
444yg •"ee
g r 3Ss5b�F e3 e:•4:
r• : °O•�S'r;i<•vr$vt a
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r 4 44 40 000
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•;i•f���•'o• 44•'.•'❖•❖•e4❖•v: � ❖ ' dd4444' ❖»y,❖.r°de$ 1�.v44.
vtiy 40:. q .r1,4,:!:44.: Z '�r�0'4:',8S''•.�•'••��d4�s?Z''�`•�� e:°8:�
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de de r,. 4,43.4 ,.,...•....' 44 rra 4 r w4
•4. • '••''0` Sv°i'A :•'r 44 .v 44.�dy� :4:,4•4.d•...•4.:4.....,. r•...,
v 4, rr`0•4*rrrrr rdv dd4•••• �°�••w.••. •
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a 4 • '' 0 :'.G 41.J:;:d,•;'O'•, �':•''r❖•:�•O.AC
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,cam ,,, �* $
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2004 - ❖ ,.; ..
4;dxd ' d
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2005 ❖: �� ��
2006 :::.:.:. ;:
2007
2008
September 30,
(UNAUDITED)
118
EXHIBIT J-3
CITY OF WICHITA FALLS , TEXAS
GENERAL OBLIGATION BONDS PAYABLE
25
20
cn
0
= 15
C panblagaEs.
CO 10
5 L
il . 1I
3 +S?
0
2004 l_
2005
2006
September 30, 2007
2008
(UNAUDITED)
119
EXHIBIT J-4
CITY OF WICHITA FALLS , TEXAS
REVENUE BONDS PAYABLE
200 —":
175
150 A Ag.xw..,
aCtia
.xt
e.
«.e eeeee :•.mop , s ,?• e
::;.10 ' ��aoy' '4or>,, •:
50 c% •• ; `g
25 • G� 4 nx• • ••• •••••••••:, ,..>.,,,' ..1 f.:I::::..;;;;;:r.:III.:*till III:•.*..iftrifit.:..11,4:11.:•4:$1:::Pi ri....1:1:1:
4�a��� 3e 4
a '
� � �
Iti>- �,2004
2005 ��''
2006
September 30, 2007
2008
(UNAUDITED)
120
CITY OF WICHITA FALLS , TEXAS
GENERAL FUND EQUITY
20
18
6
14
:\1XXX
\\.\\\\\\\.\\\\N
2004
2005
2006
September 30, 2007 2008
EXHIBIT J-6
CITY OF WICHITA FALLS , TEXAS
1.1...r
COMPARISON OF TAX LEVY AND COLLECTIONS
25
:i
�.;e. '•.eee
20 ;`.:_� •:� :�:- ern. •.:
-► �.�' e i
mtiv
rn
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a i e
O
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10 ...•1•..:;•••••'•••••••••••••••••:•:::•••••••••••••••••••:•!.1
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e 4
e y
1IIe•Se
0 ---} ee ,5,1
e
1999 2000
r iiili ist
2001 '� Tax Levy
2003 2004 0 t
2005 2006 Tax Collections
Years Ended September 30, 2007 2008
O Tax Collections :-:.Tax Levy
(UNAUDITED)
122
EXHIBIT J-7
CITY OF WICHITA FALLS, TEXAS
REVENUES BY SOURCE - FYE 9/30/08
Fines and forfeitures
1%
`''''•'•�'" Charges for services
••rr 4'kt •4'v❖.ii•'•Z:❖:SY.❖:e%:s.x❖:❖:S•:•:a:$1 g
,• 4•:•shy,. �yay;.;.;s:;:;.;..•.❖.4❖•.••...•.44❖.❖.❖.•:,._
�4.+i,:**. ,°�4: :•,.'.3•�:••03k••F .3•.° •..,a 36
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.iii:isisisiii.i.r.rr:rr.r.ryi1ry{{ryry}i,iiiiiM1irfi44.4 ��'
M1j1?4:ti:M1:\:L::::^SS hrti:\Sgi?1?1�ti:1:i**,:ti y:::::ti:ti:ti:ti:1:1:1.4.4.4
as:s:r.r.r.r.r.r.r.r. •:r .r.r•r•r•r.r.r.r.r.r.r.r.r.r.r.r.r.r.r.r.r.r.r. �q •
.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4:;::;A.4.4.4.4.4.4.4.4.4.4.4.4 y+,�q
r•r1ryr1ryryryr1r.rir1r1r1rM1r.ryr1r1ryr1ry{1•:;VAVS:.Vr VS;S1{{{tirti lj �, .' ,...... „:„. ;,'�"S..„,
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r r r r r r r r r . 9"• "� Xrr j s,j ✓.., '�:..
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r r r r r r r r�r• 5. F : f*'' F .,
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4 ti•4.4. 4
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•r
Taxes • . , r r r
42% r 4 4 '\
Licenses and permits
2%
Intergovernmental
Contributions 7%
Miscellaneous 5%
7%
(UNAUDITED)
123
EXHIBIT J-8
CITY OF WICHITA FALLS, TEXAS
EXPENDITURES BY FUNCTION - FYE 9/30/08
Administrative Services Police
13% 13%
Fire
•
::
Debt Service ♦, o
7°/O Vd 4�O�JJ4 : iNV�IN , ♦O�♦♦.♦♦♦♦♦♦♦♦♦.♦♦♦
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has ♦..R,.o;.;.;.;.;.o;.;.;y.;.;.;.;.;.;..,. Parks and Recreation
.e•e
e � 4� `<o 44*:41 . :•'i'i♦i♦i♦id• i�i♦i♦i�i♦�i�♦♦♦♦:i:.♦!..e�.•- 30/
.,•.•. ....••♦- Accounting finance
1
c
(ccrttcc�
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♦gee:
•
o'
Capital Outlay �:�;rir:r�r�r�r�r�r1r�r�r�r�r�r���'�`�\` �����•:�.�:�:�;'•::�::�::�:c❖'•��:��::�.�:�::::•�::;�:....•
° '`• y:,„ """" '`'''' \� Community Development
�. . . .• . . . . rM1:y r:''�t t,.
MPEC ••1ry.'y �•y••?y?r `�f `». 4%
2% • r }}}}F?'}Fit}•}i}i� \ v'Ste s • ••• M
Traffic and Transportation
1 1% Public Works
25%
Health
3%
(UNAUDITED)
124
EXHIBIT J-9
CITY OF WICHITA FALLS , TEXAS
GENERAL GOVERNMENTAL REVENUES (GENERAL FUND ONLY)
65
60
55 4........„
`oV
50
i 45 '°::'°`:
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1999
2000 °
2001
2002
2003 I
2004 - --_
2005
2006
Years Ended September 30,
(UNAUDITED)
125
EXHIBIT J-10
CITY OF WICHITA FALLS , TEXAS
GENERAL GOVERNMENTAL EXPENDITURES (GENERAL FUND ONLY)
65
60
s
55
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4 2001
4
2002 ,2003 __
2004 ---__
2005
Years Ended September 30, 2006 2007
2008
(UNAUDITED)
126