2005 Comprehensive Annual Financial Report 1
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Comprehensive
Annual
Financial Report
City of
Wichita Falls,
Texas
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For Year Ended
September 30, 2005
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2005
ISSUED BY:
DEPARTMENT OF FINANCE
n
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2005
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
Management's 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 Net Assets A-10 24
Notes to the Financial Statements 25-56
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule- General Fund B-1 57
Notes to the Required Supplementary Information 58
Texas Municipal Retirement System -Analysis of Funding
Progress- Last Ten Plan Years B-2 59
Wichita Falls Firemen's Relief and Retirement Fund -Analysis
of Funding Progress B-3 60
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2005
TABLE OF CONTENTS (CONT'D.)
Exhibit Page
COMBINING FINANCIAL STATEMENTS:
Nonmajor Governmental Funds:
Combining Balance Sheet C-1 61
Statement of Revenues, Expenditures and Changes
in Fund Balances C-2 62
Nonmajor Enterprise Funds:
Combining Statement of Net Assets D-1 63
Combining Statement of Revenues, Expenses and
Changes in Fund Net Assets D-2 64
Combining Statement of Cash Flows D-3 65-66
Internal Service Funds:
Combining Statement of Net Assets E-1 67
Combining Statement of Revenues, Expenses
and Changes in Fund Net Assets E-2 68
Combining Statement of Cash Flows E-3 69
Agency Fund:
Statement of Changes in Assets and Liabilities F-1 70
Component Units:
Combining Statement of Net Assets G-1 71
Combining Statement of Activities G-2 72
SUPPORTING SCHEDULES:
Combined Schedule of Bonded Debt and Interest Maturities H-1 73
Combined Schedule of Bonds Payable H-2 74-77
Debt Service Coverage— Revenue Bonds H-3 78
Capital Assets Used in the Operation of Governmental
Funds—Schedule By Function and Activity H-4 79
Capital Assets Used in the Operation of Governmental
Funds—Schedule of Changes By Function and Activity H-5 80
Golf Fund—Capital Assets and Accumulated Depreciation H-6 81
Municipal Airport Fund—Capital Assets and Accumulated Depreciation H-7 82
Kickapoo Airport Fund—Capital Assets and Accumulated Depreciation H-8 83
Transit Fund —Capital Assets and Accumulated Depreciation H-9 84
Stormwater Drainage Fund -Capital Assets and Accumulated Depreciation H-10 85
Sanitation Fund —Capital Assets and Accumulated Depreciation H-11 86
Water and Sewer Fund —Capital Assets and Accumulated Depreciation H-12 87
Fleet Maintenance Fund—Capital Assets and Accumulated Depreciation H-13 88
Duplicating Services Fund—Capital Assets and Accumulated Depreciation H-14 89
Employee Benefit Trust Fund—Capital Assets and Accumulated Depreciation H-15 90
Wichita Falls Economic Development Corporation—Capital Assets H-16 91
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2005
TABLE OF CONTENTS (CONT'D.)
Exhibit Page
STATISTICAL SECTION (UNAUDITED)
General Governmental Expenditures by Function (General Fund
Only)—Last Ten Fiscal Years I-1 92
General Governmental Revenues by Source (General Fund Only)—
Last Ten Fiscal Years 1-2 93
Property Tax Levies and Collections—Last Ten Fiscal Years 1-3 94
Assessed and Estimated Actual Value of Taxable Property—
Last Ten Fiscal Years 1-4 95
Property Tax Rates and Tax Levies—Direct and Overlapping
Governments—Last Ten Fiscal Years 1-5 96
Ten Largest Taxpayers 1-6 97
Special Assessment Collections (Capital Improvement
Assessments Fund)— Last Ten Fiscal Years 1-7 98
Computation of Legal Debt Margin 1-8 99
Ratio of Net General Bonded Debt to Assessed Value and
Net General Bonded Debt Per Capita— Last Ten Fiscal Years 1-9 100
Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Governmental Expenditures—Last Ten
Fiscal Years 1-10 101
Computation of Direct and Overlapping General Bonded Debt I-11 102
Revenue Bond Coverage—Water and Sewer Revenue Bonds—
Last Ten Fiscal Years 1-12 103
Demographic Statistics— Last Ten Fiscal Years 1-13 104
Property Value, Building Permits and Bank Deposits—Last Ten
Fiscal Years 1-14 105
Miscellaneous Statistical Data 1-15 106
Schedule of Insurance Coverage 1-16 107-111
Graphics:
Cash and Investments J-1 112
Total Bonds Payable J-2 113
General Obligation Bonds Payable J-3 114
Revenue Bonds Payable J-4 115
General Fund Equity J-5 116
Comparison of Tax Levy and Collections J-6 117
Revenues By Source— FYE 9/30/05 J-7 118
Expenditures By Function— FYE 9/30/05 J-8 119
General Governmental Revenues (General Fund Only) J-9 120
General Governmental Expenditures (General Fund Only) J-10 121
Wichita
IntroductorY Section
Wichita
TEXAS
March 7, 2006
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, 2005. The purpose of this report is to
provide the City Council,City Manager,citizens and other interested parties with detailed information
concerning the fmancial 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, 2005, was prepared
in accordance with accounting principles as promulgated by the Governmental Accounting Standards
Board (GASB). The fmancial statements and related notes have been audited by the independent
audit firm of Edgin,Parkman,Fleming &Fleming,P. C.,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
fmancial position and results of operation of the City as measured by the fmancial 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 fmancial data using the reporting model promulgated by GASB
Statement No. 34. This reporting model changed governmental financial reporting by incorporating
government-wide fmancial 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 fmancial 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.
The CAFR of the City of Wichita Falls, Texas, is reported in three sections; introductory, financial
and statistical. The introductory section, which is unaudited, includes this transmittal letter, the
GFOA Certificate of Achievement for Excellence in Financial Reporting, the government's
organizational chart and a list of principal City officials. The financial section contains the
independent auditors' report, MD&A, fmancial statements and related notes, required supplementary
information, and combining fund fmancial statements and schedules. The statistical section includes
selected fmancial and demographic information, generally presented on a multi-year basis.
1300 7th Street P.O.Box 1431 Wichita Falls,Texas 76307
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 includes a coliseum,exhibit hall,and an agricultural arena/show barn. The 2005 population for
Wichita Falls, as estimated by the City's Community Planning and Development Department, is
106,876, an increase of 2.57% over the 2000 Census estimates, and an increase of 10.75% 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
Manufacturing plays a vital role in the area economy. Wichita Falls has over 185 manufacturing
firms representing approximately 14% of total employment within the city and generating in excess of
$300 million in annual payroll. 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. Seven of the
local manufacturers are operated by Fortune 500 companies or their subsidiaries. Four 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 2005, the city experienced moderate 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 major industries to Wichita Falls. Over $3.5 million of 4A Economic
Development Sales Tax Funds have been committed to this project for land acquisition, development
of streets, water and sewer lines, and landscaping. The Park is nearing completion and is ready to be
marketed to potential industries. The City and Board of Commerce and Industry were also
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instrumentally involved in encouraging major operational expansions of PPG Industries, St. Gobain,
Vetrotex America, and ATCO Structures. A total of$5 million in 4A Economic Development Sales
Tax Funds were committed to these expansions for a total capital investment potential of$60 million
and the creation of over 220 new jobs in the community.
Residential and commercial construction activity continued to remain strong. Although, the value of
new residential construction permits was 8.48% less in 2004-05 than in the prior year, these permits
totaled $52,353,214. In addition the value of commercial construction and expansion permits totaled
$56,904,271. The following entities announced expansion, new construction or consolidations in
excess of$1,000,000 in value during the 2004-05 fiscal year:
• Wichita Falls Health Department. A total of 9,190 sq. ft. expansion with an estimated cost of
$1,412,020.
• Ruby Tequila's. A total of 8,972 sq. ft. new construction with an estimated cost of
$1,000,000.
• Cinemark Theater. A total of 50,702 sq. ft.new construction with an estimated cost of
$4,500,000.
• Faith Baptist Family Center. A total of 25,618 sq. ft. addition with an estimated cost of
$2,180,000.
• Catarina Court Strip Mall. A total of 28,000 sq. ft. construction with an estimated value of
$1,808,378.
• Flying J Truck Stop. A total of 9,437 sq. ft.new construction with an estimated cost of
$2,700,000.
• Stonegate Terrace. A total of 53,323 sq. ft.new construction with an estimated value of
$2,931,446.
• Northpark Apartments. A total of 112,254 sq. ft.new construction with an estimated cost of
$6,138,000.
• Crescent Plaza Quadriplex. A total of 45,265 sq. ft.new construction with an estimated value
of$2,449,997.
• House of Hope Nursing Home. A total of 62,301 sq. ft.new construction with an estimated
cost of$6,757,887.
Another indicator of performance of the local economy is the retail sales tax. The local sales tax rate
in the city is two percent. Statewide, cities experienced a growth in sales tax collections of 7.88% for
the 2004-05 fiscal year. By comparison,retail sales in Wichita Falls grew by 3.82% during the same
period,resulting in an increase in revenue of$870,402.
MAJOR INITIATIVES
For The Year. The City Council has identified programs to meet citizens' requests for services and
to safeguard the environment. Three major public safety projects have been completed, or are
nearing completion, that provide for a new public safety training facility, and replacement of the
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public safety two-way radio system, computer aided dispatch and records management systems. The
total cost for these three projects is estimated to be $15 million, which is being funded exclusively
from proceeds of the 4B Sales Tax Corporation. Approximately $7.5 million of this cost has been
debt financed through the issuance of Certificates of Obligation. The remaining$7.5 million is being
paid for from cash balances of the 4B Sales Tax Corporation.
The public safety training center has been constructed to replace existing facilities that were obsolete
and inadequate. The building is a state-of-the-art training center that will improve coordinated
training efforts principally in the City's public safety programs. The facility was placed into
operation during the 2004-05 fiscal year, and includes classrooms, a physical fitness area, fire
apparatus bay, storage areas for training materials, and limited office space. Additionally,the facility
houses a new public safety dispatching area. The total construction cost for the training center was
approximately$5 million.
Another public safety project that is nearing completion is the installation of an integrated public
safety communications system. The project includes the replacement of two-way radio, computer-
aided dispatching and records management computer systems. The installation of this equipment is
expected to cost approximately $10 million. The two-way radio component was placed into service
during the 2004-05 fiscal year. The computer-aided dispatching system is expected to be operational
in the next several weeks and the records management computer system will go on-line in the summer
of 2006.
Work continues on the City's major water system improvement projects. In September 2001,the City
issued $118,770,000 of Water and Sewer System Revenue Bonds for improvements to the system
designed primarily to meet regulatory treatment requirements of the EPA and TCEQ and to expand
water supply and treatment capacities. Specific projects to be completed include(1) Kemp Reservoir
Pump Station and Pipeline; (2) 10 Million Gallon Per Day Reverse Osmosis Facility; (3) Cypress
Water Plant High Service Pump Station and Storage; (4) 10 Million Gallon Per Day Conventional
Treatment Expansion at the Cypress Water Plant; (5) Secondary Reservoir and Pump Station
Expansion; (6) Jasper Water Treatment Plant Modifications and Improvements; (7) River Road
Advanced Water Treatment Facility; (8) Distribution and Elevated Storage Improvements; and (9)
New Water Plant Administration and Maintenance Facilities. Needless to say, these improvements
will dramatically improve the City's ability to supply and treat water for the citizens of this
community. Debt service payments began during the 2001-02 fiscal year at $7.2 million. The
average annual debt service for the life of the bonds is $8.9 million. Water rates were increased in
February 2001, October 2003, and October 2004 to generate revenues sufficient to finance this debt
service obligation.
Significant improvement projects continue at the Kickapoo Downtown Airpark. The improvements
include the reconstruction of the runway, taxiway and connectors; extension and widening of the
runway; improvements to the runway extended safety area; storm water drainage improvements;
runway lighting enhancements; and airfield signage improvements. Approximately $4 million of
improvements have been completed at airpark, of which 90% to 95% was fmanced with Federal
Aviation Entitlement Funds. The remaining amount has been financed with reserves in the City's two
airport funds. It is estimated that an additional $2 million of construction costs will be expended on
these improvements during the 2005-06 fiscal year. FAA Entitlement Funds will continue to be the
primary funding source for these improvements.
Phase I of a substantial flood control project to address flooding in the Faith Village Subdivision is
complete. A total of$2.5 million of Stormwater Drainage Improvement Funds were expended on this
phase of the project. Engineering on Phases II and III of this drainage improvement project is nearing
iv
completion. These fmal phases are expected to be funded with capital project funds remaining from
previous bond issues for the Holliday and McGrath Creek Flood Control Projects.
For The Future.
A project that is currently under construction is the expansion of the Wichita Falls-Wichita County
Public Health District. The existing Health Department facility is overcrowded for the existing
services being provided in the facility. Plans are to use approximately $1.5 million in Community
Development Block Grant Funds to construct an 8,000 square foot addition to the facility for clinical
services that are offered to qualified low income patrons.
In the last two fiscal years,the Golf Course Fund has experienced operational losses. As a result,the
City Council approved the use of$25,000 of 4B Sales Tax Corporation Funds and$22,000 of General
Funds to hire a consulting firm to prepare a comprehensive plan for the Weeks Park Municipal Golf
Course. The intent of this plan is to evaluate the operation and playing conditions at the golf course
and to provide recommendations for operational and capital improvements. It is anticipated that the
final results of this studybe will completed in the next several weeks.
It is anticipated that the City's budget will continue to be negatively impacted by the high cost of
electricity and motor vehicle fuel. These two commodities have experienced significant price
increases over the last few years,resulting in major cost increases to the City's budget.
In August of 2005, the City Council approved the creation of the Tax Increment Financing District
Reinvestment Zone Number 2. This new TIF Zone is located in the Lawrence Road area of the city.
Wichita County also agreed to participate in this TIF District. This financing mechanism is intended
to offer incentives for both retail and commercial developments, thereby increasing the City's
property tax base and retail sales. It is anticipated that the City will expend nearly $6 million on
roadway and drainage improvements in this TIF Zone during the 2005-06 fiscal year as part of the TIF
Plan. Much of that funding is expected to be fmanced initially with 4B Sales Tax Corporation Funds
and Stormwater Drainage Improvement Funds. As private development occurs in this district, it is
anticipated that these two advance funding sources will be reimbursed to the extent that TIF funds are
generated and are available.
In February of 2006, the City Council approved a resolution regarding the possible termination of the
operation and maintenance agreement with the Multi-Purpose Events Center Corporation. Since the
MPEC facilities were constructed, the City and County have contracted with the Corporation for the
operations and maintenance of the facilities. Under the present arrangement, the City of Wichita
Falls appoints the majority of the members to this corporation, and is financially liable for any
operating losses of the Multi-Purpose Events Center. This Council resolution authorizes the City
Manager to explore procedures and timeframes for the transfer of operating responsibilities to the
City of Wichita Falls. Should such a transfer occur, the City would operate the MPEC facilities as a
City department and account for the revenues and expenses of the operation as an enterprise fund.
FINANCIAL INFORMATION
In developing and evaluating the City's accounting system, consideration is given to the adequacy of
internal control as deemed appropriate by the City Manager. Internal control is designed to provide
reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from
unauthorized use or disposition; and (2) the reliability of financial records for preparing 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.
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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
fmancial 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, 2005, and
related appropriations are carried forward to the new fiscal year through a supplemental budgetary
allocation.
TREASURY 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 2004-05, 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, fmancial records, and
transactions of all administrative departments of the City by Certified Public Accountants. The
accounting firm of Edgin, Parkman, Fleming & Fleming, P.C. was selected by the Mayor and City
Council to satisfy this charter requirement. The auditors' report on the basic fmancial statements and
combining fund statements and schedules is included in the fmancial 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-33, 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, 2004. The Certificate of Achievement is a prestigious
national award recognizing conformance with the highest standards for preparation of a state and local
government fmancial report. In order to be awarded a Certificate of Achievement,a government must
publish an easily readable and efficiently organized comprehensive annual fmancial 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
vi
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, 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 Wichita Falls' elected officials and City
Manager,who remain committed to fiscal integrity and financial leadership, is likewise appreciated.
Respectfully submitted,
Jim Dockery
Director of Finance
vii
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Wichita Falls,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2004
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.
' uNmeo ohs
ccHM
CO� N s President
,off SEAL aoti
Cincot *Sr
Executive Director
viii
CITY OF WICHITA FALLS
ORGANIZATIONAL
CHART
I WICHITA FALLS I
CITIZENS
CITIZENS I`
COMMISSIONS '-y CITY COUNCIL 4 CITIZENS
IIII1111 BOARDS
I I I i
I
MUNICIPAL JI
CITY 1 CITY CITY
CUOD E COMMUNICATIONS - MANAGER ATTORNEY i/
CLERK
I I I I I
TRAFFIC AND FINANCE ASSISTANT CITY HUMAN COMMUNITY HEALTH
TRANSPORTATION DEPARTMENT MANAGER . RESOURCES
DEPARTMENT DEPARTMENT DEVELOPMENT DEPARTMENT
r PUBLICJ
_ � II (ADMINISTBATIONJ___f
IAIRPORT TRANSORTATION ACCOUNTING I COLLECTION CENTER I PERSONNEL (COMPREHENSIVEJ.....
LNINC INSPECTION ENVI AMHNTAL�
J
1J
4 CODE
1 I
ENGIRISK
INNEERINGFFIC SERVICES PURCHASING IN SYSTEMS N LIBRARY MANAGEMENT I MANAGEMENTPERTY ENFORCEMENT 1 I P�NURHEALTH
PQLLUTiON
4 111 111
DEVELOPMENT J HOUSING J
BI ENEFITS YEE ! I TRANSPORTATION 1
F BUDGET 1 IIII !I
I BUILDING jMAINTENANCE
•
I PRINT SHOP )
I
GOLF
I COURSE I
I
MUNICIPAL 1
COURT
POLICE FIRE PARKS AND PUBLIC WORKS/
DEPARTMENT DEPARTMENT RECREATION PUBLIC UTILITIES
DEPARTMENT DEPARTMENT
I TECHNICAL
ARSON 1 RECREATION (ENGINEEG�� SA
NITATIONSERVICES "`'" SERVCES SUPPRiFIRE
ION j_L
INVESTIGATION MAINTENANCE I
E
DMINISTRATIONI I 4 CEMETERY I STREET UTILITIES I
MAINTENANCE
CITY OF WICHITA FALLS, TEXAS
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2005
Title Name
Mayor Lanham Lyne
Mayor Pro-Tern Ray Gonzales
City Council Member Jim Ginnings
City Council Member Linda Ammons
City Council Member Mike Norrie
City Council Member Dorothy Roberts-Burns
City Council Member Charles Elmore
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
Director of Finance Jim Dockery
Director of Community Development David Clark
Director of Public Health Reuben Warren
Police Chief Dennis Bachman
Fire Chief Earl Foster
Director of Parks and Recreation Jack Murphy
Director of Public Works and Public Utilities Scott Taylor, P.E.
x
Financial Section
Independent Auditor's Report
Edgin, Parkman, Fleming & Fleming, PC
Certified Public Accountants and Consultants
1411 13th Street,Suite 2-A P.O.Box 750,Wichita Falls,Texas 76307-0750
(940)766-5550(tel) (940)766-5778(fax)
Michael D. Edgin, CPA A. Paul Fleming, CPA, CFE
David L. Parkman, CPA, CFE 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, 2005, 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 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, at September 30, 2005, and the respective
changes in financial position and cash flows, where applicable, thereof for the year then ended, in
conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 18, the City made corrections to the prior year's financial statements
resulting in prior period adjustments.
In accordance with Government Auditing Standards, we have also issued under separate cover
our report dated January 30, 2006 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 and the budgetary information identified as Required
Supplementary Information in the table of contents is not a required part of the basic financial
statements, but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion on
it.
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
January 30, 2006
2
Management Discussion and Analysis
Wichita
TEXAS
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2005
Management's discussion and analysis provides a narrative overview of the financial activities
and changes in the fmancial position of the City of Wichita Falls,Texas, for the fiscal year ended
September 30, 2005. 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 on pages i-vii of
this report.
Financial Highlights
The assets of the City of Wichita Falls exceeded its liabilities at September 30, 2005, by
$285,014,285 (net assets). Of this amount, $28,198,442 (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$15,374,999. This increase can be attributed primarily to
an increase in capital assets in the following areas: improvements to Cypress and Jasper Water
Treatment Plant improvements and related water and sewer system projects; continued capital
improvements at Kickapoo Airpark; and public safety radio and data communications system
improvements. The City also reduced its long term debt liability significantly.
At September 30, 2005, the City's governmental funds reported combined ending fund balances
of $26,188,194. Of this amount, $18,646,056, or 71.20%, 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
$10,608,472, or 20.25%of total General Fund expenditures.
The City's total debt decreased by$7,185,010 during the current fiscal year. The primary reason
for this reduction is because the City did not issue any additional debt during the fiscal year, but
continued to retire outstanding General Obligation Bonds, Water and Sewer System Revenue
Bonds, and Combination Tax and Revenue Bonds. The City did, however, refinance
approximately $15,000,000 of outstanding Water and Sewer System Revenue Bonds as
Combination Tax and Revenue Bonds at lower interest rates.
3
1300 7th Street P.O. Box 1431 Wichita Falls,Texas 76307
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2005
(continued)
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Wichita Falls'
basic financial statements. The new reporting focus is on the City as a whole and on individual
major funds. It is intended to present a more comprehensive view of the City's financial
activities. The basic financial statements are comprised of three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report contains other supplementary information in addition to the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements include the Statement of Net Assets and the Statement
of Activities. 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 this statement for some items that will only 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 fmancial 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 two
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. 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,
fleet maintenance services, and the municipal golf course.
The government-wide financial statements are found on pages 13-14 of this report.
4
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2005
(continued)
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
fmancial statements are reported using an accounting method identified as the modified accrual
basis of accounting, which measures cash and all other financial assets that can be readily
converted to cash. The governmental fund statements focus on near-term inflows and outflows of
expendable resources, as well as expendable resources available at the end of the fiscal year for
future spending. Such information may be useful in evaluating a government's near-term
financing requirements.
The focus of the governmental funds financial statements is narrower than that of the
government-wide financial statements. Therefore, it is useful to compare the information
presented for governmental funds with similar information presented for governmental funds in
the government-wide statements. By doing so, readers may better understand the long-term
impact of the government's short term financing decisions. Both the governmental fund Balance
Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund
Balances provide a reconciliation to facilitate this comparison. The reconciliation explains the
differences between the government's activities reported in the government-wide statements and
the information presented in the governmental funds financial statements.
The City of Wichita Falls maintains 13 individual governmental funds. Information is presented
separately in the governmental fund Balance Sheet and in the governmental fund Statement of
Revenues and Changes in Fund Balances for the General Fund,which is considered a major fund.
Data for the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of the non-major governmental funds is provided in the form of
combining fund statements elsewhere in 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.
5
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2005
(continued)
• Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide fmancial statements. The City uses enterprise
funds to account for its water and sewer operations, sanitation collection and
disposal services, municipal airports, municipal golf course, 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
financial statements.
Proprietary funds financial statements provide the same type of information as the government-
wide financial statements, only in more detail and include some of the internal service fund-type
activities. The proprietary funds financial statements provide separate information for the water
and sewer operations, and the sanitation operation,which 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.
Fiduciary Funds-Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City's own
programs. The accounting method used for fiduciary funds is much like that used for proprietary
funds. Agency funds are a component of fiduciary funds and are used to account for situations
where the City's role is purely custodial, such as receipt,temporary investment and remittance of
fiduciary funds to individuals, private organizations or other governments. The City maintains
one fiduciary fund. This fund is an agency fund used to account for property that has been
abandoned or unclaimed pending escheatment to the State of Texas.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The Notes to the Financial
Statements can be found on pages 25-56 of this report.
Government-Wide Financial Analysis
The City's combined net assets were $285,014,285 as of September 30, 2005, an increase of
$15,374,999, or 6.37%from the prior year. An analysis of the net assets of the City can be made
from the Tables below of Net Assets and Changes in Net Assets. The largest portion of the City's
net assets, $239,935,524, or 84.18%, 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.
6
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2005
(continued)
An additional portion of the City's net assets, $16,880,319, or 5.92%, represents resources that
are subject to external restrictions on how they may be used. The remaining balance of net assets,
$28,198,442 may be used to meet the government's ongoing obligations to citizens and creditors.
Net Assets
(in thousands)
Governmental Business-type
Activities Activities Total
2005 2004 2005 2004 2005 2004
Current and Other Assets $ 34,323 $ 38,804 $ 131,581 $ 155,681 $ 165,904 $ 194,485
Capital Assets 144,187 109,916 177,791 144,660 321,978 254,576
Total Assets 178,510 148,720 309,372 300,341 487,882 449,061
Long Term Liabilities 23,315 26,382 165,428 169,403 188,743 195,785
Other Liabilities 6,127 6,380 7,997 5,450 14,124 11,830
Total Liabilities 29,442 32,762 173,425 174,853 202,867 207,615
Net Assets:
Invested in Capital Assets,
Net of Related Debt 127,367 90,046 112,569 99,420 239,936 189,466
Restricted 1,201 626 15,679 15,437 16,880 16,063
Unrestricted 20,500 25,286 7,698 10,631 28,198 35,917
Total Net Assets S 149.068 $ 115,958 $ 135.946 $ 125,488 $ 285.014 S 241.446
7
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2005
(continued)
CHANGES IN NET ASSETS
(in thousands)
Governmental Business-type
Activities Activities Total
2005 2004 2005 2004 2005 2004
Revenues:
Program Revenues:
Charges For Services $ 6,444 $ 6,635 $ 41,886 $ 39,489 $ 48,330 $ 46,124
Operating Grants and
Contributions 14,735 11,968 926 937 15,661 12,905
Capital Grants and Contributions 1,176 6,970 862 376 2,038 7,346
General Revenues:
Property Taxes 22,579 21,405 - - 22,579 21,405
Sales Taxes 17,846 17,193 - - 17,846 17,193
Other Taxes/Fees 6,823 6,909 - - 6,823 6,909
Investment Earnings 755 379 3,418 1,764 4,173 2,143
Miscellaneous 167 459 (74) 518 93 977
Total Revenue 70,525 71,918 47,018 43,084 117,543 115,002
Expenses:
Administrative Services 9,175 9,524 - - 9,175 9,524
Police 17,108 16,284 - - 17,108 16,284
Fire 10,338 10,058 - - 10,338 10,058
Parks and Recreation 4,220 4,164 - - 4,220 4,164
Accounting/Finance 1,842 1,852 - - 1,842 1,852 I
Community Development 7,181 7,897 - - 7,181 7,897
Public Works 6,742 6,404 - - 6,742 6,404
Health 4,436 4,524 - - 4,436 4,524 '
Traffic and Transportation 2,182 1,983 - - 2,182 1,983
MPEC 2,015 1,590 - - 2,015 1,590
Interest and Fees on Long-term
Debt 843 922 - - 843 922
Golf - - 779 761 779 761
Municipal Airport - - 243 251 243 251
Kickapoo Airport - - 377 339 343 339
Transit - - 1,240 1,028 1,240 1,028
Sanitation - - 7,716 7,418 7,716 7,418
Water and Sewer - - 25,604 24,721 25,604 24,721
Stormwater Drainage - - 126 112 126 112
Total Expenses 66,082 65,202 36,085 34,630 102,167 99,832
Increase in Net Assets
Before Special Item and Transfers 4,443 6,716 10,933 8,454 15,376 15,170
Special Item - - - - - -
Transfers 474 2,242 (474) (2,242) - -
Increase in Net Assets 4,917 8,958 10,459 6,212 15,376 15,170
Net Assets-Beginning of Year 115,958 81,792 125,488 119,275 241,446 201,067
Prior Period Adjustment 28,193 25,208 - - 28,193 25,208
Net Assets-End of Year $149,068 $115,958 $135.947 $125.487 $285,015 S241.445
8
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2005
(continued)
Financial Analysis of the Governmental Activities
Governmental Funds — The focus of the City of Wichita Falls' 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, 2005, the City's governmental funds reported combined fund balances of
$26,188,194. Approximately 71.20%, or $18,646,056 constitutes unreserved fund balance, which is
available for spending at the government's discretion. The remainder of the fund balance is reserved to
indicate that it is not available for spending because it has already been committed to pay for encumbrances
($5,432,260), inventory and prepaid items ($274,775), debt service ($1,149,888), and cemetery perpetual
care($685,215).
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$10,608,472. 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 20.25% of total General Fund expenditures, while the total fund
balance represents 24.91% of total General Fund expenditures. The fund balance of the General Fund
increased by $2,024,393 during the current fiscal year. The primary reasons for this increase are as
follows:
• Total Property Tax Collections exceeded budgeted amounts by approximately$142,000.
• Total Sales Tax Collections from retail sales exceeded budgeted amounts by approximately
$207,000.
• Interest earnings on the investment of the City's idle cash exceeded budgeted amounts by over
$138,000 due to rising interest rates.
• Franchise fees from the gas company exceeded budgetary expectations by approximately
$179,000 due to an increase in the company's goss receipts received from higher gas prices.
• Encumbrances for projects that are committed,but not yet expended,were$860,000 higher than in
the prior fiscal year principally for roadway resurfacing.
• Salary savings resulting from vacancies in department.
• Lower than anticipated costs for self-insured workers compensation claims.
• Lower than anticipated costs for payments to out-going employees for accrued vacation and/or
sick leave.
The Capital Project Funds reflect a significant reduction in total fund balance due to expenditures of
general obligation bond proceeds for public safety capital improvement projects. The projects include the
public safety training center and radio and data communication systems. The debt service for these projects
is being funded by the 4B Sales Tax Corporation.
Financial Analysis of the Business-type Activities
Net assets for the City's Business-type Activities increased by$10,458,690, accounting for 68.02% of the
total growth in the City's net assets. Following are tie key elements of this increase:
• A reduction of approximately $4,000,000 in long-term liabilities of the Water and Sewer Fund
primarily due to the revenue bond payments.
• An increase in capital assets in the Water and Sewer Fund as major water system improvements
continue to be constructed.
9
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2005
(continued)
• Capital improvements to the Kickapoo Airport including reconstruction of the runway, taxiway
and connectors; extension and widening of the runway; improvements to the runway extended
safety area; storm water drainage improvements; runway lighting enhancements; and airfield
signage improvements.
• A storm water drainage improvement project in the Faith Village subdivision.
General Fund Budgetary Highlights
The final amended expenditure budget for the General Fund was increased by$1,901,053 from the original
adopted budget. Some of the primary reasons for this increase in appropriations can be briefly summarized
as follows:
• Approximately $1,345,000 of prior year encumbrances were carried forward to the 2004-05
amended budget, $1,088,128 of which was for the capital infrastructure improvements for the
street overlay program that were not completed at the close of the 2003-04 fiscal year.
• Approximately $234,000 was appropriated for additional costs associated with internal charges
from the Fleet Maintenance Fund to reimburse that fund for the high cost of fuel.
• Over $100,000 of additional appropriations were needed to pay for outside legal expenses
associated with activities of the Civil Service Commission.
• An additional$115,000 was appropriated for legal settlements.
• Additional funds were budgeted for electricity expenses that were higher than originally budgeted.
Actual revenues in the General Fund for the 2004-05 fiscal year were$52,654,174, which was$2,139,994
above fmal budgeted figures. However, over$1,175,000 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 significantly more revenue than initially anticipated from property
and sales tax collections, interest earnings, and franchise fees from the gas company.
Actual expenditures in the General Fund for the 2004-05 fiscal year were$52,386,482 compared to a fmal
budget of$54,524,824. 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, lower than anticipated workers compensation expenses, and lower
payments to out-going employees for accrued vacation and/or sick leave 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, 2005, amounts to $321,977,561 (net of accumulated depreciation). This investment in
capital assets includes land,buildings,equipment, infrastructure and construction in logress.
Major capital asset events during this fiscal year included the following:
• Construction of the Police/Fire Training Facility and related voice and data communication
systems.
• Construction in progress on the water system,principally at Jasper and Cypress Water Treatment
Plants.
• Improvements of Kickapoo Airpark.
• Completion of the Faith Village Storm Drainage Improvement Project.
10
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2005
(continued)
Capital Assets,net of Accumulated Depreciation
(in thousands)
Governmental Business-type
Activities Activities Total
2005 2004 2005 2004 2005 2004
Land $ 12,678 $ 12,668 $7,838 $ 8,102 $ 20,516 $ 20,770
Land Betterments 8,477 8,588 14,955 11,237 23,432 19,825
Buildings, Systems
and Improvements 47,242 43,391 92,539 88,591 139,781 131,982
Infrastructure 65,019 64,953 - - 65,019 64,953
Machinery and Equip 8,667 1,642 1,212 1,581 9,879 3,223
Furniture and Fixtures 33 45 20 23 53 68
Motor Vehicles - - 10,546 11,070 10,546 11,070
Construction in
Progress 2,071 6,801 49,681 24,055 51,752 30.856
Totals $ 144.187 $ 138.088 $177.791 $144.659 $ 321.978 .$ 282.747
Additional information on the City's capital assets can be found in Note 7 on pages 39-42 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$178,267,364. No additional bond indebtedness was incurred during the 2004-05
fiscal year. However, approximately $15,000,000 of Water and Sewer System Revenue Bonds were
refinanced as Combination Tax and Revenue Bonds at lower interest rates.
Outstanding Debt at Year-End
(in thousands)
Governmental Business-type
Activities Activities Total
2005 2004 2005 2004 2005 2004
General Obligation Bonds $ 10,725 $ 13,060 $ - $ - $ 10,725 $ 13,060
Combination Tax and
Revenue Bonds 6,095 6,810 33,976 19,901 40,071 26,711
Util System Revenue
Bonds - - 126,538 144,748 126,538 144,748
Notes Payable 178 234 755 782 933 1,016
Total $ 16.998 $ 20.104 $ 161.269 $ 165.431 $ 178.267 $ 185.535
11
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2005
(continued)
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. Standard& Poors has assigned a
credit rating of AA for the City's General Obligation Bonds and a rating of A+ for its Water and Sewer
System Revenue Bonds.
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, 2005, was
$.59246 per$100, which means that the City has a tax margin of$1.65754 per$100, and could raise up to
$60,989,519 additional tax revenue a year from the present assessed valuation of$3,679,520,181 before the
limit is reached. The current ratio of net tax-supported debt to the assessed value of all taxable property is
0.43%.
Additional information about the City's long-term debt can be found in Note 12 on pages 47-50 of this
report.
Economic Factors and Next Year's Budgets and Rates
The largest revenue source of the City's General Fund is the property tax. Appraised property values for
the 2005 tax year, as certified by the Wichita County Appraisal District, increased 5.41% from the prior
year certified tax roll. The City maintained the property tax rate at $.59246 per $100 of assessed value,
which was the same as the 2004-05 fiscal year.
The second largest revenue source of the City's General Fund is the retail sales tax. The City has
experienced an annual growth rate of approximately 3.5% in recent years and it is expected to continue to
generate at or above that rate in the 2005-06 fiscal year. Nevertheless, the City budgeted this revenue
source at a fairly conservative rate of 1.25%above the 2004-05 revised estimate.
Overall,revenues in the General Fund are budgeted to increase by 4.58%from the 2004-05 adopted budget.
The budget also anticipates the use of$755,475 in General Fund reserves for one-time needs.
Retail Water and Sewer rates remained unchanged from the 2004-05 fiscal year because it is anticipated
that mandatory watering restrictions will not be required. It is anticipated, however, that wholesale water
rates will be adjusted upon completion of the wholesale rate study.
Until the 2005-06 budget, refuse collection and disposal rates had not increased for over a decade.
Operating efficiencies in the collection and disposal process implemented during the 1990's resulted in
annual increases to the fund balance of the Sanitation Fund during these years. However, in the last few
fiscal years, the City has needed to expend some of this fund balance to cover the operating costs of the
Sanitation Fund operations and to assist in the repair of city streets. As a result, the 2005-06 budget
included an increase of approximately 10%to the collection and disposal rates.
Finally, the Stormwater Drainage charges were increased by approximately 16% to generate additional
revenue to the fund in an effort to accelerate the pace at which drainage projects are completed.
Requests for Information
This fmancial 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, 2005
Primary Government
Governmental Business-type Component
Activities Activities Total Units
Assets
Cash and cash equivalents $ 19,279,736 $ 23,449,358 $ 42,729,094 $20,970,776
Investments 3,954,145 - 3,954,145 -
Receivables(net):
Taxes and assessments 1,028,128 - 1,028,128 31,181
Customer and trade - 4,182,338 4,182,338 -
Component unit 2,596,784 - 2,596,784 -
Government agencies 5,866,031 196,104 6,062,135 1,073,460
Other 2,548,017 166,073 2,714,090 63,659
Internal balances (1,270,019) 1,270,019 - -
Inventory 145,150 1,741,600 1,886,750 41,576
Prepaid items 172,021 13,642 185,663 20,734
Other assets 3,000 - 3,000 9,460
Deferred charges - 2,550,023 2,550,023 -
Restricted assets:
Cash and cash equivalents - 83,102,581 83,102,581 -
Investments - 14,875,813 14,875,813 -
Receivables:
Other - 33,176 33,176 -
Capital assets not being depreciated 14,748,866 57,519,752 72,268,618 -
Capital assets net of accumulated depreciation 129,437,788 120,271,155 249,708,943 1,263,722
Total assets 178,509,647 309,371,634 487,881,281 23,474,568
Liabilities
Accounts payable-trade 1,026,598 3,179,050 4,205,648 272,340
Accrued payroll 1,170,344 345,945 1,516,289 40,398
Payable to primary government - - - 2,596,784
Payable to government agencies 318,585 41,396 359,981 14,227
Estimated health claims payable 806,286 - 806,286 -
Other liabilities 2,757,075 2,022,167 4,779,242 137,905
Deferred revenue 48,063 - 48,063 -
Customer deposits - 2,408,518 2,408,518 -
Long-term liabilities: -
Portion due or payable within one year 5,132,270 6,569,177 11,701,447 -
Portion due or payable after one year 18,182,619 158,858,903 177,041,522 53,141
Total liabilities 29,441,840 173,425,156 202,866,996 3,114,795
Net Assets
Invested in capital assets, net of related debt 127,366,654 112,568,870 239,935,524 1,263,722
Restricted for debt service 1,200,845 15,679,474 16,880,319 -
Unrestricted 20,500,308 7,698,134 28,198,442 19,096,051
Total net assets $ 149,067,807 $ 135,946,478 $285,014,285 $20,359,773
See accompanying notes to the basic financial statements.
13
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30,2005
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
Administrative services $ 9,174,786 $ 3,640,715 $ 470,343 $ -
Police 17,107,502 361,201 569,611 -
Fire 10,337,851 1,458 346,654 -
Parks and recreation 4,220,079 455,861 74,715 -
Accounting/finance 9 1,841,475 - - -
Community development 7,181,397 1,078,293 6,624,803 -
Public works 6,742,355 - 185,023 1,176,107
Health 4,435,702 711,399 2,301,751 -
Traffic and transportation 2,181,799 195,585 2,856,294 -
MPEC 2,015,329 - 263,780 -
Interest and fees on long-term debt 843,358 - 1,041,715 -
Total governmental activities 66,081,633 6,444,512 14,734,689 1,176,107
Business-type activities:
Golf 779,151 622,434 - -
Municipal Airport 243,414 446,388 - -
Kickapoo Airport 377,299 270,194 - -
Transit 1,240,131 162,018 921,188 -
Sanitation 7,715,572 9,133,955 4,900 -
Water and sewer 25,604,413 30,208,286 - 862,398
Stormwater drainage 125,989 1,042,278 - -
Total business-type activities 36,085,969 41,885,553 926,088 862,398
Total primary government $ 102,167,602 $ 48,330,065 $ 15,660,777 $ 2,038,505
Component units:
Community development $ 3,568,944 $ - $ - $ -
Multi-Purpose Events Center 3,594,678 2,158,106 1,405,153 -
Total component units $ 7,163,622 $ 2,158,106 $ 1,405,153 $ -
General revenues:
Taxes:
Property tax
Sales tax
Franchise fees
Hotel occupancy tax
Beverage tax
Bingo tax
Investment earnings
Gain(loss)on sale of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets-beginning
Prior period adjustment
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
$ (5,063,728) $ - $ (5,063,728) $ -
(16,176,690) - (16,176,690) -
(9,989,739) - (9,989,739) -
(3,689,503) - (3,689,503) -
(1,841,475) - (1,841,475) -
521,699 - 521,699 -
(5,381,225) - (5,381,225) -
(1,422,552) - (1,422,552) -
870,080 - 870,080 -
(1,751,549) - (1,751,549) -
198,357 - 198,357 -
(43,726,325) - (43,726,325) -
- (156,717) (156,717) -
- 202,974 202,974 -
- (107,105) (107,105) -
- (156,925) (156,925) -
- 1,423,283 1,423,283 -
- 5,466,271 5,466,271 -
- 916,289 916,289 -
- 7,588,070 7,588,070 -
(43,726,325) 7,588,070 (36,138,255) -
- - - (3,568,944)
- - - (31,419)
- - - (3,600,363)
22,578,788 - 22,578,788 264,991
17,845,505 - 17,845,505 5,948,500
5,191,741 - 5,191,741 -
1,262,518 - 1,262,518 -
204,727 - 204,727 -
164,128 - 164,128 -
754,935 3,417,875 4,172,810 552,901
- (73,611) (73,611) -
166,648 - 166,648 -
473,644 (473,644) - -
48,642,634 2,870,620 51,513,254 6,766,392
4,916,309 10,458,690 15,374,999 3,166,029
115,958,241 125,487,788 241,446,029 17,193,744
28,193,257 - 28,193,257 -
$ 149,067,807 $ 135,946,478 $ 285,014,285 $ 20,359,773
EXHIBIT A-3
CITY OF WICHITA FALLS, TEXAS
BALANCE SHEET-GOVERNMENTAL FUNDS
SEPTEMBER 30, 2005
i
Total
Nonmajor Governmental
General Governmental Funds
Assets
Cash and cash equivalents $ 7,807,332 $ 10,158,065 $ 17,965,397
Investments 3,954,145 - 3,954,145
Receivables(net):
Taxes and assessments 805,840 222,288 1,028,128
Other City funds 727,598 4,300 731,898
Component unit 66 2,596,718 2,596,784
Government agencies 3,097,337 2,768,694 5,866,031
Other 2,157,589 390,428 2,548,017
Inventory 135,828 - 135,828
Prepaid items 120,603 18,244 138,847
Other assets - 3,000 3,000
Total assets $ 18,806,338 $ 16,161,737 $ 34,968,075
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 512,565 $ 486,966 $ 999,531
Accrued payroll 1,085,636 78,706 1,164,342
Payable to other City funds 4,300 718,504 722,804
Payable to government agencies 184,233 134,352 318,585
Notes payable - 178,149 178,149
Other liabilities 1,497,736 1,259,339 2,757,075
Deferred revenue 2,246,417 165,594 2,412,011
Claims and judgments payable 227,384 - 227,384
Total liabilities 5,758,271 3,021,610 8,779,881
Fund balances:
Reserved for encumbrances 2,183,064 3,249,196 5,432,260
Reserved for inventory and prepaid items 256,531 18,244 274,775
Reserved for debt service - 1,149,888 1,149,888
Reserved for perpetual care - 685,215 685,215
Unreserved, designated for subsequent
years expenditures reported in:
General Fund 3,000,000 - 3,000,000
Special Revenue Funds - 3,972,902 3,972,902
Capital Projects Funds - 3,738,484 3,738,484
Unreserved, undesignated reported in:
General Fund 7,608,472 - 7,608,472
Special Revenue Fund - 326,198 326,198
Total fund balances 13,048,067 13,140,127 26,188,194
Total liabilities and fund balances $ 18,806,338 $ 16,161,737 $ 34,968,075
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, 2005
Total fund balances-governmental funds (Exhibit A-3) $ 26,188,194
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 $237,021,172
Related accumulated depreciation 92,916,696 144,104,476
Property taxes receivable and municipal court fines are not available to pay for current
period expenditures and therefore are deferred in the funds. 2,363,948
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 16,820,000
Accrued vacation and sick leave 5,837,692
Claims and judgments payable 193,704
Accrued interest 57,308 (22,908,704)
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. 493,185
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. (1,173,292)
Total net assets-governmental activities (Exhibit A-1) $ 149,067,807
See accompanying notes to the basic financial statements.
16
EXHIBIT A-5
I
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES-GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Total
Nonmajor Governmental
General Governmental Funds
Revenues
Taxes $ 43,829,551 $ 3,406,967 $ 47,236,518
Charges for services 2,268,182 211,966 2,480,148
Licenses and permits 2,218,119 - 2,218,119
Fines and forfeitures 2,010,143 151,639 2,161,782
Intergovernmental revenue 93,228 12,910,588 13,003,816
Contributions 1,176,107 1,730,873 2,906,980
Miscellaneous revenue 1,058,844 926,539 1,985,383
Total revenues 52,654,174 19,338,572 71,992,746
Expenditures
Administrative services 8,190,824 510,697 8,701,521
Police 15,975,510 755,863 16,731,373
Fire 10,177,506 19,099 10,196,605
Parks and recreation 3,721,527 384,949 4,106,476
Accounting/finance 1,754,186 - 1,754,186
Community development 1,360,521 5,921,491 7,282,012
Public works 4,481,391 172,148 4,653,539
Health 2,523,824 1,867,446 4,391,270
Traffic and transportation 1,729,519 207,905 1,937,424
MPEC Coliseum - 1,205,153 1,205,153
Capital outlay 2,471,674 7,699,454 10,171,128
Debt service-principal - 3,050,000 3,050,000
Debt service-interest and paying agent fees - 852,624 852,624
Total expenditures 52,386,482 22,646,829 75,033,311
Other Financing Sources(Uses)
Transfers in 2,226,940 4,695,645 6,922,585
Transfers out (470,239) (7,408,182) (7,878,421)
Total other financing sources (uses) 1,756,701 (2,712,537) (955,836)
Net change in fund balance 2,024,393 (6,020,794) (3,996,401)
Fund balances-beginning 11,023,674 19,160,921 30,184,595
Fund balances-ending $ 13,048,067 $ 13,140,127 $ 26,188,194
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, 2005
Net change in fund balances-total governmental funds(Exhibit A-5) $ (3,996,401)
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 are as follows:
Capital outlay during the year $ 10,577,725
Depreciation expense for the year 4,482,396 6,095,329
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. (5,775)
Because property tax receivables and municipal court receivables will not be collected for
several months after the City's fiscal year ends, they are not considered'available' revenues and
are deferred in the governmental funds. Deferred revenues increased by this amount this year. 117,320
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 2004-05 were: 3,050,000
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 (279,334)
Claims and judgments payable 17,150 (262,184)
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, 2004 66,574
Accrued interest at September 30, 2005 57,308 9,266
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. 287,166
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. (378,412)
Change in net assets of governmental activities(Exhibit A-2) $ 4,916,309
See accompanying notes to the basic financial statements.
18
EXHIBIT A-7
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30,2005
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Assets
Current assets:
Cash and cash equivalents $ 15,438,165 $ 5,354,482 $ 1,910,993 $ 22,703,640 $ 2,059,832
Restricted cash, cash equivalents and
investments:
Cash and cash equivalents 83,102,581 - - 83,102,581 -
Investments 14,875,813 - - 14,875,813 -
Receivables(net):
Customer and trade 3,276,160 807,535 98,643 4,182,338 -
Government agencies 51,419 - 92,240 143,659 -
Other 135,334 - 60,770 196,104 22,414
Other(restricted) 33,176 - - 33,176 -
Inventory 714,412 - 113,781 828,193 922,726
Prepaid items 1,539 - 11,752 13,291 33,525
Total current assets 117,628,599 6,162,017 2,288,179 126,078,795 3,038,497
Noncurrent assets:
Deferred charges 2,550,023 - - 2,550,023 -
Capital assets, net of accumulated
depreciation 149,661,201 4,601,071 10,025,483 164,287,755 13,585,328
Total noncurrent assets 152,211,224 4,601,071 10,025,483 166,837,778 13,585,328
Total assets 269,839,823 10,763,088 12,313,662 292,916,573 16,623,825
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 30,2005
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Liabilities
Current liabilities:
Accounts payable-trade 2,795,424 80,300 57,662 2,933,386 272,505
Accrued payroll 186,448 79,330 39,092 304,870 47,077
Accrued vacation and sick leave 244,612 92,910 40,683 378,205 47,417
Payable to other City funds 1,358 487 2,357 4,202 4,892
Payable to government agencies - 40,835 561 41,396 -
Estimated health claims payable - - - - 806,286
Other liabilities 1,995,821 - 26,343 2,022,164 -
Revenue bonds-current maturities 4,727,603 - - 4,727,603 -
Accrued interest-revenue bonds 1,314,177 - - 1,314,177 -
Total current liabilities 11,265,443 293,862 166,698 11,726,003 1,178,177
Long-term liabilities:
Payable to U.S. Government 755,438 - - 755,438 -
Revenue bonds, less current maturities 155,786,175 - - 155,786,175 -
Estimated liability for landfill closure and
post-closure care costs - 2,419,720 - 2,419,720 -
Customer deposits 2,408,518 - - 2,408,518 -
Total long-term liabilities 158,950,131 2,419,720 - 161,369,851 -
Total liabilities 170,215,574 2,713,582 166,698 173,095,854 1,178,177
Net Assets
Invested in capital assets, net of
related debt 84,716,300 4,601,071 10,025,483 99,342,854 13,585,328
Restricted for debt service 15,679,474 - - 15,679,474 -
Unrestricted (771,525) 3,448,435 2,121,481 4,798,391 1,860,320
Total net assets $ 99,624,249 $ 8,049,506 $ 12,146,964 119,820,719 $15,445,648
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 16,125,759
Net assets of business type activities $135,946,478
See accompanying notes to the basic financial statements.
20
n
} e+
r
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, 2005
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Operating revenues:
Charges for services $ 30,102,068 $ 9,128,347 $ 1,722,470 $40,952,885 $ 8,626,087
Rents,concessions and other 106,218 5,608 820,842 932,668 343,450
Contributions - - - - 7,089,352
Total operating revenues 30,208,286 9,133,955 2,543,312 41,885,553 16,058,889
Operating expenses:
Personnel services 6,829,701 3,026,228 1,440,710 11,296,639 1,801,319
Supplies and materials 1,180,890 87,229 233,285 1,501,404 2,656,139
Maintenance and repairs 1,252,614 327,021 293,779 1,873,414 2,003,744
Utilities and other services 4,420,660 3,405,639 319,766 8,146,065 119,679
Insurance and contract support 482,784 98,627 148,073 729,484 7,003,081
Other expenses 1,527,139 610,356 185,388 2,322,883 269,390
Depreciation and amortization 3,230,026 83,621 242,705 3,556,352 2,879,842
Total operating expenses 18,923,814 7,638,721 2,863,706 29,426,241 16,733,194
Operating income(loss) 11,284,472 1,495,234 (320,394) 12,459,312 (674,305)
Nonoperating revenues(expenses):
Interest income 3,250,498 126,495 40,882 3,417,875 46,336
Gain on sale/abandonment of capital assets 56,400 - (204,873) (148,473) 74,862
Interest expense and paying agent fees (7,552,485) - - (7,552,485) -
Intergovernmental operating grants - - 926,088 926,088 -
Total nonoperating revenues(expenses) (4,245,587) 126,495 762,097 (3,356,995) 121,198
Income(loss)before contributions and transfers 7,038,885 1,621,729 441,703 9,102,317 (553,107)
Capital contributions 862,398 - - 862,398 -
Transfers in 309,007 16,785 3,392,135 3,717,927 535,689
Transfers out (1,106,265) (1,818,588) (60,927) (2,985,780) (312,000)
Change in net assets 7,104,025 (180,074) 3,772,911 10,696,862 (329,418)
Net assets-beginning 92,520,224 8,229,580 8,374,053 15,775,066
Net assets-ending $ 99,624,249 $ 8,049,506 $12,146,964
$ 15,445,648
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds (238,172)
Change in net assets of business type activities $ 10,458,690
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 30,2005
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Cash flows from operating activities:
Received from customers and users $ 29,834,179 $ 9,107,113 $ 2,542,248 $ 41,483,540 $ 16,062,835
Payments to suppliers (8,118,155) (5,073,912) (1,666,889) (14,858,956) (12,693,520)
Payments to employees (4,962,588) (2,257,130) (1,113,164) (8,332,882) (1,400,046)
Net cash provided by(used in)operating activities 16,753,436 1,776,071 (237,805) 18,291,702 1,969,269
Cash flows from noncapital financing activities:
Intergovernmental operating grants - - 1,013,827 1,013,827 -
Transfers in from other funds 309,007 16,785 3,392,135 3,717,927 535,689
Transfers out to other funds (1,106,265) (1,818,588) (60,927) (2,985,780) (312,000)
Net cash provided(used)by noncapital financing activities (797,258) (1,801,803) 4,345,035 1,745,974 223,689
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (32,173,818) (558,213) (3,430,977) (36,163,008) (2,266,655)
Proceeds from sale of capital assets 56,400 - - 56,400 95,741
Proceeds from sale of refunding bonds 15,143,059 - - 15,143,059 -
Payments to escrow agent for refunded bonds (14,540,000) - - (14,540,000) -
Payment of bond issuance costs (212,443) - - (212,443) -
Principal paid on long-term debt (4,411,536) - - (4,411,536) -
Interest and fees paid on long-term debt (8,104,186) - - (8,104,186) -
Net cash provided by(used for)capital and related
financing activities (44,242,524) (558,213) (3,430,977) (48,231,714) (2,170,914)
Cash flows from investing activities:
Interest on investments 3,250,498 126,495 40,882 3,417,875 46,336
Sale of investments 5,301,634 2,010,765 - 7,312,399 -
Net cash provided by(used for)investing activities 8,552,132 2,137,260 40,882 10,730,274 46,336
Net Increase(Decrease)in Cash and Cash Equivalents (19,734,214) 1,553,315 717,135 (17,463,764) 68,380
Cash and Cash Equivalents-Beginning 118,274,960 3,801,167 1,193,858 123,269,985 1,991,452
Cash and Cash Equivalents-Ending $ 98,540,746 $ 5,354,482 $ 1,910,993 $ 105,806,221 $ 2,059,832
Reconciliation of cash and cash equivalents on the balance
sheet to the statement of cash flows:
Cash and cash equivalents $ 15,438,165 $ 5,354,482 $ 1,910,993 $ 22,703,640 $ 2,059,832
Restricted assets-cash and cash equivalents 83,102,581 - - 83,102,581 -
Total cash and cash equivalents at end of year $ 98,540,746 $ 5,354,482 $ 1,910,993 $ 105,806,221 $ 2,059,832
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 30,2005
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) $ 11,284,472 $ 1,495,234 $ (320,394) $ 12,459,312 $ (674,305)
Adjustments to reconcile operating income(loss)
to net cash provided by(used in)operating
activities:
Depreciation and amortization 3,230,026 83,621 242,705 3,556,352 2,879,842
Customer deposits received 86,820 - - 86,820 -
(Increase)decrease in current assets:
Receivables:
Customer and trade (527,987) (29,398) (3,458) (560,843) -
Other 67,060 2,556 2,394 72,010 3,946
Inventory 49,859 - 43,624 93,483 (137,129)
Prepaid items 1,879 8,667 (1,892) 8,654 (9,177)
Increase(decrease)in current liabilities:
Accounts payable-trade 1,131,998 49,700 (33,592) 1,148,106 (53,800)
Accrued payroll 36,644 9,214 6,975 52,833 232
Accrued vacation and sick leave 16,092 (4,633) 2,410 13,869 (15,734)
Payable to other City funds 1,358 487 (117,175) (115,330) 4,892
Estimated health claims payable - - - - (29,498)
Payable to government agencies - (809) (567) (1,376) -
Other liabilities 1,375,215 - (58,835) 1,316,380 -
Estimated liability for landfill closure - 161,432 - 161,432 -
Total adjustments 5,468,964 280,837 82,589 5,832,390 2,643,574
Net cash provided by(used in)
operating activities $ 16,753,436 $ 1,776,071 $ (237,805) $ 18,291,702 $ 1,969,269
Noncash capital and financing activities:
Capital assets received from developers $ 862,398 $ $ - $ 862,398 $ -
See accompanying notes to the basic financial statements.
23
EXHIBIT A-10
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2005
Agency
Fund
Assets
Cash and cash equivalents $ 39,938
Liabilities
Other liabilities $ 39,938
See accompanying notes to the basic financial statements.
24
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
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. Financial Reporting Model
in June 1999, the GASB issued Statement No. 34, Basic Financial Statements — and
Management's Discussion and Analysis — for State and Local Governments. This statement,
known as the "Reporting Model" statement, affects the way the City prepares and presents
financial information. State and local governments traditionally have used a financial reporting
model substantially different from the one used to prepare privilege-sector financial reports.
GASB Statement No. 34 established new requirements and a new reporting model for the annual
financial reports of state and local governments. The Statement was developed to make annual
reports easier to understand and more useful to the people who use governmental financial
information to make decisions and includes:
Management's Discussion and Analysis — GASB Statement No. 34 requires that financial
statements be accompanied by a narrative introduction and analytical overview of the
government's financial activities in the form of a "management's discussion and analysis"
(MD&A). This analysis is similar to the analysis the private sector provides in their annual
reports.
Government-wide Financial Statements — The reporting model includes financial statements
prepared using full accrual accounting for all of the government's activities. Government-wide
financial statements do not provide information by fund or account group, but distinguish
between the City's governmental activities, business-type activities and activities of its discretely
presented component units on the statement of net assets and statement of activities.
Significantly, the City's statement of net assets includes both noncurrent assets and noncurrent
liabilities of the City, which were previously recorded in the General Fixed Assets Account
Group and the General Long-term Obligations Account Group (such as buildings and
infrastructure, including bridges and roads, and general obligation debt). Accrual accounting
also reports all of the revenues and cost of providing services each year, not just those received
or paid in the current year or soon thereafter.
In addition to the fixed assets previously recorded in the General Fixed Assets Account Group,
the City retroactively capitalized infrastructure assets. In addition, the government-wide
statement of activities reflects depreciation expenses on the City's capital assets, including
infrastructure. In addition to the government-wide financial statements, the City has prepared
governmental fund financial statements which continue to use the modified accrual basis of
accounting and the current financial resources measurement focus. Accordingly, the
25
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
accounting and financial reporting for the City's General Fund and Debt Service Funds, the
City's major governmental funds, is similar to that previously presented in the City's financial
statements, although the format of financial statements has been modified by GASB Statement
No. 34.
Statement of Net Assets — The Statement of Net Assets is designed to display the financial
position of the primary government (government and business-type activities) and its discretely
presented component units. Governments report all capital assets, including infrastructure, in
the government-wide Statement of Net Assets and report depreciation expense -- the cost of
"using up" capital assets— in the Statement of Activities. The net assets of a government will be
broken down into three categories, 1) invested in capital assets, net of related debt; 2)
restricted; and 3) unrestricted.
Statement of Activities — The new government-wide statement of activities reports expenses
and revenues in a format that focuses on the cost of each of the government's functions. The
expense of individual functions is compared to the revenues generated directly by the function
(for instance, through user charges or intergovernmental grants).
B. 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.
26
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
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.
The Wichita Falls 4B Sales Tax Corporation. The Wichita Falls 4B Sales Tax Corporation is a
non-profit corporation formed in May 1997 for the purpose of increasing employment
opportunities and for public improvement projects such as parks, auditoriums, learning centers,
open space improvements, athletic and exhibition facilities, and the related maintenance and
operating costs of such projects. The Corporation operates under the authority of Vernon's
Civil Statutes, Article 5190.6, Section 4B. Since the City Council appoints its Board of
Directors, approves its budgets, and exercises final authority over its operations, the Wichita
Falls 4B Sales Tax Corporation is considered to be part of the City's reporting entity and
presented in the accompanying basic financial statements as a discretely presented
component unit. The Wichita Falls 4B Sales Tax Corporation utilizes full accrual accounting.
Wichita Falls Reinvestment Zone #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 each member of its Board, 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/Wichita County Multi-Purpose Events Center (MPEC). The Wichita Falls/Wichita
County Multi-Purpose Events Center (a non-profit entity) was established to operate the Multi-
Purpose Events Center (Center) for the City. The Center consists of a Coliseum, an Exhibit Hall
and an Agricultural Complex. Since the City appoints five members of the seven-member MPEC
27
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTD.)
SEPTEMBER 30, 2005
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
Board, approves its budgets, and exercises final authority over its operations, MPEC is
considered to be a part of the City's reporting entity and presented in the accompanying basic
financial statements as a discretely presented component unit. The operations of MPEC also
include the operations of the Convention &Visitors Bureau.
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 Director of Finance at 1300 7th Street, Wichita Falls, Texas.
Excluded From the Reporting 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.
C. 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. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support.
The government-wide statement of activities demonstrates the degree to which the direct expenses
of a functional category (police, public works, etc.) or segment are offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific function or segment. Program
revenues include 1) charges to customers or applicants who purchase, use or directly benefit from
goods, services or privileges provided by a given function or segment, 2) grants and contributions
that are restricted to meeting operational requirements of a particular function or segment, and
3) grants and contributions that are restricted to meeting the capital requirements of a particular
function or segment. Taxes and other items not included among program revenues are reported
instead as general revenues.
28
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
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.
D. Measurement focus, basis of accounting and financial statement presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary funds. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year in which they
are levied. Grants and similar items are recognized as soon as all eligibility requirements imposed
by the provider have been met.
Government fund-level financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as
well as expenditures related to compensated absences and claims and judgments, are recorded
only when payment is due.
Property tax, franchise fees, sales tax and sales interest associated with the current fiscal period
are all susceptible to accrual and have been recognized as revenues of the current fiscal period. All
of the revenue items are considered to be measurable and available only when cash is received.
29
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
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 is 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 is 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
to follow subsequent private-sector guidance.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as
program revenues. Likewise, general revenues include all taxes.
30
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
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, golf 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.
E. 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 requires that government to use
them for a specific purpose or purposes established in the provider's enabling legislation.
• Voluntary nonexchange transactions result from legislative or contractual agreements, other
than exchanges, entered into willingly by two or more parties. Examples of the City's
voluntary nonexchange transactions include capital grants, state shared revenue and private
donations.
31
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2005
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.
F. 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
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.
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 applicable governmental or
business-like activities columns in the government-wide financial statements. The City
defines capital assets as assets with an initial, individual cost of more than $1,000 and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded
at estimated fair market value at the time received.
Capital assets are depreciated using the straight line method over the following useful
lives:
Assets Years
Buildings, systems and improvement 20-59 years
Infrastructure 8-100 years
Machinery, vehicles and other equipment 3 -25 years
Furniture and equipment 3-10 years
32
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
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, 2005, the City's business-like activities incurred a
total of $7,829,618 of interest costs. Of this amount, $277,133 was capitalized on
construction projects and $7,552,485 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 a
nonoperating revenue in the Water and Sewer Fund.
4. Long-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, Bureau of Justice Assistance, North Texas Regional Narcotics Task
Force, and numerous health-related grants.
Each Federal grant is accounted for in a separate special revenue fund. State grant
revenues received for purposes normally financed through the general government are
accounted for within the General Fund.
33
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONTD.)
SEPTEMBER 30,2005
Note I - 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.
34
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
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, 2005 is based on
management's estimate of probable losses in the amount of $421,088. 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. $227,384 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, 2003 to September 30, 2005:
Health Workers'
Care Compensation
Liability balance, October 1, 2003 $ 853,999 $ 601,504
Incurred claims/adjustments 6,876,388 1,488,583
Claim payments ( 6,894,603) ( 1,555,265)
Liability balance, September 30, 2004 835,784 534,822
Incurred claims/adjustments 6,443,723 1,009,754
Claim payments ( 6,473,221) ( 1,123,488)
Liability balance, September 30, 2005 8 806.286 S 421.088
Note 2 - COMPLIANCE AND ACCOUNTABILITY
Finance-Related Leaal 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
35
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2005
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, 2005, the total amount of the City's
demand and time deposits per the general ledgers was $628,813, and the total amount per the
City's September 30, 2005 bank statements was $1,916,877. 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, 2005
are as follows:
Fair Value/ Average Weighted Average
Carrying Credit Quality/ Months to
Types of Investments Amount Cost Ratinas Maturity
Primary Government:
TexPool $110,513,977 $110,513,977 N/A 1.00
LOGIC 1,289,519 1,289,519 N/A 1.00
Money market account 13,645,692 13,645,692 N/A 1.00
Federal agency notes 18,829.959 18.837.137 AAA/Aaa 6.40
Total primary government
investments 144,279,147 144.286.325
Component Units:
TexPool 20,724,449 20.724.449 1.00
Total component unit
investments 20.724.449 20.724.449
Total investments $165.003.596 $165.010.774
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.
36
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
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.
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 significantly 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. At year end, the City was not exposed to interest rate risk since the City holds
all direct investments to maturity.
e. Foreign Currency Risk
This is the risk that exchange rates will adversely affect the fair value of an investment. At
year end, the City was not exposed to foreign currency risk.
37
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 4- RECEIVABLES
Receivables at September 30, 2005 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 $1,406,149 $ 306,800 $ - $ - $ - $ - $ 1,712,949 $ 31,181 $ 1,744,130
Customer and trade - - 3,825,304 993,324 98,643 - 4,917,271 - 4,917,271
Other City funds 727,598 4,300 - - - - 731,898 - 731,898
Component unit 66 2,596,718 - - - - 2,596,784 - 2,596,784
Government agencies 3,097,337 2,768,694 51,419 - 92,240 - 6,009,690 1,073,460 7,083,150
w Other 5,653,277 390,428 135,334 - 60,770 22,414 6,262,223 63,659 6,325,882
00 Restricted-other - - 33.176 - - - 33.176 - 33.176
Gross receivables 10,884,427 6,066,940 4,045,233 993,324 251,653 22,414 22,263,991 1,168,300 23,432,291
Less: Allowance for
uncollectible accounts ( 4.095.997) ( 84.512) ( 549.144) ( 185,789) - - ( 4.915.442) - ( 4.915.442)
Net total receivables $6 788 430 $5.982.428 $3 496 089 $807,535 $251,653 $22 414 $17.348 549 $1 168 300 $18 516 8414
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$250,000 of the$1,601,801 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, 2005
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, 2005 was $.59246 per $100 which means that the City has a tax margin of
$1.65754 per $100, and could raise up to $60,989,519 additional tax revenue a year from the
present assessed valuation of$3,679,520,181 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 $15,679,474
For Capital Improvements:
Cash and cash equivalents 65,014,589
Investments 14,875,813
Receivables 33,176
For Customer Deposits:
Cash and cash equivalents 2,408,518
Total S98.011.570
Note 7 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2005 was as follows:
39
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 7 - CAPITAL ASSETS (CONT'D.)
Balance Balance
Governmental activities: October 1, September 30,
2004 Increases Decreases 2005
Capital assets not being depreciated:
Land $ 12,667,767 $ 9,992 $ - $ 12,677,759
Construction in progress 6,801.018 6,254.913 10.984.824 2.071.107
Total capital assets not being depreciated 19.468.785 6.264.905 10.984.824 14.748.866
Capital assets being depreciated:
Land betterments 10,794,753 - - 10,794,753
Buildings, systems and improvements 52,296,661 4,971,851 - 57,268,512
Infrastructure 135,346,120 2,695,536 72,706 137,968,950
Machinery and equipment 8,513,883 7,651,606 48,486 16,117,003
Furniture and fixtures 221,689 - - 221,689
Motor vehicles 31.485 - - 31.485
Total capital assets being depreciated 207.204.591 15.318.993 121.192 222.402.392
Less accumulated depreciation for:
Land betterments 2,206,532 111,674 - 2,318,206
Buildings,systems and improvements 8,906,132 1,120,698 - 10,026,830
Infrastructure 70,393,079 2,627,057 70,346 72,949,790
Machinery and equipment 6,871,527 623,455 45,071 7,449,911
Furniture and fixtures 176,830 11,552 - 188,382
Motor vehicles 31.485 - - 31.485
Total accumulated depreciation 88,585.585 4.494.436 115.417 92.964.604
Total capital assets being depreciated, net 118.619.006 10.824.557 5.775 129.437.788
Governmental activities capital
assets, net $138.087.791 $17.089.462 $10.990.599 $144.186.654
40
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 7 - CAPITAL ASSETS (CONT'D.)
Balance Balance
Business-type activities: October 1, September 30,
2004 Increases Decreases 2005
Capital assets not being depreciated:
Land $ 8,102,346 $ - $ 264,329 $ 7,838,017
Construction in progress 24.055.003 31.942.481 6.315.749 49.681.735
Total capital assets not being depreciated 32.157.349 31.942.481 6,580.078 57.519.752
Capital assets being depreciated:
Land betterments 21,001,355 4,288,696 279,327 25,010,724
Buildings, systems and improvements 150,433,656 6,954,790 219,856 157,168,590
Machinery and equipment 5,044,498 879,120 28,677 5,894,941
Furniture and fixtures 48,553 - - 48,553
Motor vehicles 33,883.421 2,264.385 1.015.311 35.132.495
Total capital assets being depreciated 210.411.483 14.386.991 1.543.171 223.255.303
Less accumulated depreciation for:
Land betterments 9,764,200 389,799 98,396 10,055,603
Buildings, systems and improvements 61,842,983 2,839,707 53,407 64,629,283
Machinery and equipment 3,463,226 230,123 10,023 3,683,326
Furniture and fixtures 25,092 3,871 - 28,963
Motor vehicles 22,813,740 2,769,636 996.403 24,586.973
Total accumulated depreciation 97.909.241 6.233.136 1.158.229 102.984.148
Total capital assets being depreciated, net 112,502,242 8.153.855 384.942 120.271.155
Business-type activities capital
assets, net $144.659.591 $40.096.336 $6.965.020 $177,790.907
Depreciation expense was charged to functions as follows:
Governmental activities:
Administrative services $ 280,755
Police 380,141
Fire 123,182
Parks and recreation 69,744
Accounting/finance 95,086
Community development 30,113
Public works 2,410,108
Health 61,873
Traffic and transportation 233,258
MPEC 810.176
Total governmental depreciation $4.494.436
41
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 7 - CAPITAL ASSETS (CONT'D.)
Business-type activities:
Golf $ 11,536
Municipal Airport 66,046
Kickapoo Airport 121,855
Transit 186,931
Sanitation 1,983,278
Water and sewer 3,839,251
Stormwater drainage 24,239
Total business-type depreciation $6.233.136
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 801 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.
42
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 8 - RETIREMENT PLANS (CONT'D.)
Contributions
The contribution rate for all employees is 5%, except police officers which is 7%, and the City
matching ratio is currently 2 to 1, both as adopted by the governing body of the City. Under the
state law governing TMRS, the actuary annually determines the City contribution rate. This rate
consists of the normal cost contribution rate and the prior service contribution rate, both of
which are calculated to be a level percent of payroll from year to year. The normal cost
contribution rate finances the currently accruing monetary credits due to the City matching
percent, which are the obligation of the City as of an employee's retirement date, not at the
time the employee's contributions are made. The normal cost contribution rate is the
actuarially determined percent of payroll necessary to satisfy the obligation of the City to each
employee at the time his/her retirement becomes effective. The prior service contribution rate
amortizes the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan's
25-year amortization period. When the City periodically adopts updated service credits and
increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over
a new 25-year period. The unit credit actuarial cost method is used for determining the City
contribution rate. Both the employees and the City make contributions monthly. Since the City
needs to know its contribution rate in advance to budget for it, there is a one-year delay
between the actuarial valuation that is the basis for the rate and the calendar year when the
rate goes into effect (i.e. December 31, 2004 valuation is effective for rates beginning January
2006).
Wichita Falls Firemen's Relief and Retirement Fund
Plan Description
The City provides pension benefits
is for all of its firefighters throu
gh h 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 his 24 month average monthly salary (within the last 36 months) multiplied by his
years of service.
Members can receive a service retirement at ages 50 and above with 20 or more years of
service. Members are eligible for actuarially reduced early retirement benefits before age 50,
provided the employee has accrued at least 20 years of service. The plan also provides death
and disability benefits. Members who terminate their service and are nonvested are entitled to
the excess of the member's contributions over any benefits previously received.
43
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 8 - RETIREMENT PLANS (CONT'D.)
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, 2004
was 31.5 years.
Schedule of Actuarial Liabilities and Funding Progress
Texas
Municipal Firemen's Total
Retirement Relief and (Memorandum
System Retirement Only)
Actuarial Valuation Date 12/31/04 12/31/04
Actuarial Value of Assets $70,462,244 $32,240,524 $102,702,768
Actuarial Accrued Liability(AAL) 98,405,860 42,178,490 140,584,350
Percentage Funded 71.6% 76.4% 73.1%
Unfunded Actuarial Accrued Liability(UAAL) 27,943,616 9,937,966 37,881,582
Annual Covered Payroll 33,522,283 7,175,196 40,697,479
UAAL as a Percentage of Covered Payroll 83.4% 138.5% 93.1%
Net Pension Obligation (NPO)at
the Beginning of the Period -0- -0- -0-
Annual Pension Cost:
Annual Required Contribution(ARC) •$ 3,845,167 $ 743,445 $ 4,588,612
Interest on NPO -0- -0- -0-
Adjustment to the ARC -0- -0- -0-
Annual Pension Cost $ 3.845.167 $ 743.445 $ 4.588.612
44
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2005
Note 8 - RETIREMENT PLANS (CONT'D.)
Texas
Municipal Firemen's Total
Retirement Relief and (Memorandum
System Retirement Only)
Percentage of Annual Pension Costs Contributed 100% 100% 100%
Contributions Made $ 3,845,167 $ 743,445 $ 4,588,612
Increase in NPO -0- -0- -0-
NPO At the End of the Period -0- $ -0- $ -0-
Two preceding years:
2003:
Annual Pension Cost $ 4,262,660 $ 733,764 $ 4,996,424
Percentage of Annual Pension Costs
Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
2002:
Annual Pension Cost $ 3,653,245 $ 711,831 $ 4,365,076
Percentage of Annual Pension
Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
Actuarial Assumptions
Texas
Municipal Firemen's
Retirement Relief and
System Retirement
Actuarial Cost Method Unit Credit Entry Age
Amortization Method Level Percent of Payroll Level Percent of Payroll
Remaining Amortization Period 25 years 31.5 years
Amortization Period Open Closed
Asset Valuation Method Amortized Cost Smooth Market Value
Investment Rate of Return 8% 8%
Projected Salary Increases None 4.75%
Includes Inflation at None 4.75%
Cost-of-Living Adjustments None None
Both of the stand-alone financial reports for both 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.
45
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2005
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. No landing fees were collected or paid on this lease for
the fiscal year ended September 30, 2005.
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, 2005.
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, 2005:
Year ending September 30:
2006 $176,416
2007 161,954
2008 125,977
2009 89,872
2010 30,599
2011 —2013 1,438
Total minimum payments required $586.256
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, 2005:
Minimum rentals $211,757
Contingent rentals -
Total rentals $211.757
46
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2005
Note 12 - LONG-TERM LIABILITIES
Long-term liabilities transactions for the year ended September 30, 2005 are summarized as
follows:
Balance at Balance at
October 1, Retired and September 30, Due Within
2004 Issued Transferred(1) 2005 One Year
Governmental Activities:
General obligation bonds $ 13,060,000 $ - $ 2,335,000 $ 10,725,000 $ 2,455,000
Combination tax and revenue bonds 6,810,000 - 715,000 6,095,000 735,000
Note payable 234,186 - 56,037 178,149 57,578
Accrued vacation and sick
leave payable 5,559,478 1,639,719 1,360,853 5,838,344 1,600,000
Claims and judgments payable 651.822 1,009.754 1.240.488 421.088 227.384
Total governmental activities 26.315.486 2.649.473 5.707.378 23,257.581 5.074.962
Business-tvoe Activities:
Utility system revenue bonds,
net of premium(discount) 144,747,898 - 18,209,709 126,538,189 1,713,946
Combination tax and revenue bonds 19,900,889 15,070,891 996,192 33,975,588 3,013,656
Accrued vacation and sick
leave payable 426,367 559,534 560,932 424,969 500,000
Note payable 781,974 - 26,536 755,438 27,399
Landfill closure,post-closure costs 2.258.288 161.432 - 2.419.720 -
Total business-type activities 168.115.416 15.791.857 19,793,369 164.113.904 5.255.001
Total long-term liabilities $194 430.902 $18 441 33(1 $25 500 747 $187.371 485 $10 329 963
(1) Includes bond premium amortization of$280,901 relative to the revenue bonds payable.
The portion of long-term liabilities due within one year as reflected on Exhibit A-1 includes $57,308
and $1,314,176 of accrued interest in governmental activities and business-type activities,
respectively.
For governmental activities,
es, claims and judgments payable and compensated absences are
generally liquidated by the General Fund.
Bonds Payable
Bonds payable at September 30, 2005, 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 9/30/05
General Obligation Bonds:
General Obligation Refunding 4.10%- 9/01/06 $570,000 to $ 9,000,000 $ 1,130,000
Bonds,Series 1996 5.30% $1,130,000
General Obligation Construction 3.75%- 9/01/21 $175,000 to 10,205,000 8,735,000
and Refunding Bonds,Series 2001 5.375% $945,000
General Obligation Refunding1.60%- 9/01/06 $775 000 to 2,450,000 9860,000
Bonds,Series 2003 2.35% $860,000
Total General Obligation Bonds 10.725.000
47
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2005
Note 12 - LONG-TERM LIABILITIES (CONT'D.)
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Payments Authorized at 9/30/05
Combination Tax and Revenue
Bonds:
Combination Tax and Revenue 3.00%- 9/01/18 $335,000 to 7,550,000 6,095,000
Certificates of Obligation, 4.00% $775,000
Series 2003
Combination Tax and Revenue 2.00%- 8/01/12 $685,000 to 18,840,000 18,155,000
Refunding Bonds, Series 2004 5.00% $3,645,000
Plus bond premium 894,490
Combination Tax and Revenue 4.90%- 8/01/16 $115,000 to 14,020,000 13,905,000
Refunding Bonds,Series 2005 5.00% $2,650,000
Plus bond premium 1.021.098
Total Combination Tax and
Revenue Bonds 40,070.588
Revenue Bonds:
Water and Sewer Revenue Bonds:
Water&Sewer System 4.05%- 8/01/18 $180,000 to 5,500,000 4,055,000
Priority Lien Revenue Bonds, 4.65% $400,000
Series 1998E
Water&Sewer System 3.75%- 8/01/27 $1,220,000 to 118,770,000 113,300,000
Priority Lien Revenue 5.375% $11,515,000
Bonds, Series 2001
Plus bond premium 1,298,189
Water&Sewer Subordinate 3.14%- 8/01/18 $25,000 to 8,060,000 7,885,000
Lien Revenue Bonds, 4.59% $3,320,000
Series 1998
Total Revenue Bonds 126.538.189
Total All Bonds $177.333.777
48
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 12 - LONG-TERM LIABILITIES (CONT'D.)
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, 2005,
$384,265 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, 2005 is classified as
follows:
Long-term $728,039
Current portion 27,399
Total $755.438
The City issued a note payable in December 2002 for the acquisition of an ice plant at the Multi-
Purpose Events Center Coliseum. The note is due in five annual installments of $62,780
beginning in December 2003. The note carries an interest rate of 2.81%.
49
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 12 - LONG-TERM LIABILITIES(CONT'D.)
Aggregate maturities of the long-term debt(principal and interest)for the years subsequent to September 30, 2005 are as follows:
Combination Tax and
Year Ending General Obliaation Bonds Revenue Bonds Revenue Bonds Notes Payable Total
September 30. Principal Interest Princioal Interest Principal Interest Principal Interest Principal Interest
2006 $ 2,455,000 $ 487,431 $ 3,748,656 $1,305,034 $ 1,713,947 $ 6,351,046 $ 84,977 $ 29,776 $ 8,002,580 $ 8,173,287
2007 880,000 387,569 3,852,089 1,202,401 1,788,084 6,279,556 87,487 27,267 6,607,660 7,896,793
2008 910,000 350,169 4,160,612 1,080,853 1,727,180 6,205,882 90,586 24,167 6,888,378 7,661,071
2009 945,000 312,631 3,854,464 974,726 1,786,394 6,139,825 30,161 21,813 6,616,019 7,448,995
2010 745,000 273,650 3,970,730 840,560 1,875,579 6,071,197 31,142 20,831 6,622,451 7,206,238
2011-2015 1,855,000 1,049,150 16,686,687 2,582,468 15,803,290 28,747,393 171,582 88,285 34,516,559 32,467,296
In
0 2016-2020 2,380,000 532,812 3,797,350 221,450 36,142,331 22,834,817 201,366 58,503 42,521,047 23,647,582
2021-2025 555,000 28,444 - - 49,831,796 11,891,518 236,286 23,548 50,623,082 11,943,510
2026-2030 - - - - 15.869.588 1.009.750 - - 15.869.588 1.009.750
Totals $10 725.000 $3_421.856 $40.070.588 $8.207,492 $126.538.189 $95.530.984 $933,587 $294,190 $178.267.364 $107.454.522
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 13 - DEFEASED DEBT
Current Year
On May 15, 2005, the City issued combination tax and revenue refunding bonds of $18,840,000
(par value) with interest rates ranging from 3.00% to 5.00%. The debt was issued to refund
revenue bonds with interest rates ranging from 3.35% to 5.40% and a par value of $14,540,000.
The revenue bonds to be refunded mature through August 1, 2016, and were callable on August
1, 2005. The refunding met the requirements of an in-substance debt defeasance and the original
revenue bonds were removed from the Water and Sewer Fund.
As a result of the refunding, the City reduced its total debt service requirements by $905,807
resulting in an economic gain (difference between the present value of the debt service payments
on the old and new debt) of$742,758.
Prior Years
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, 2005, $4,355,000 of the 1986
Water and Sewer Revenue Refunding 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 $2,419,720 as of September 30, 2005, which is based on 13% usage of
the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of
$15,529,714 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.
51
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 15 - INTERFUND BALANCES
Balances due to and due from other funds at September 30, 2005 consisted of the following:
Due To Fund Due From Fund Amount Purpose
General Fund Nonmajor Governmental Funds $ 718,504 Short-term loan
General Fund Nonmajor Enterprise Funds 2,357 Short-term loan
Nonmajor Governmental Funds General Fund 4,300 Short-term loan
General Fund Water and Sewer Fund 1,358 Short-term loan
General Fund Sanitation Fund 487 Short-term loan
General Fund Internal Service Funds 4,892 Short-term loan
Total $ 731.898
All amounts due are scheduled to be repaid within one year.
Balances due to and due from component units at September 30, 2005 consisted of the following:
Due To Fund Due From Fund Amount Purpose
Nonmajor Governmental Funds Wichita Falls 4B Sales Tax Corp. $2.596.784 Construction funding
The amount is scheduled to be repaid within one year.
Transfers to and from other funds during the year ended September 30, 2005 were as follows:
Transfers From Transfers To Amount Reason
General Fund Nonmajor Enterprise Funds $ 383,676 Fund operating deficits
General Fund Nonmajor Governmental Funds 86,562 Supplement operating grants
Nonmajor Governmental Funds Nonmajor Governmental Funds 3,626,827 Fund construction costs
Nonmajor Governmental Funds Nonmajor Governmental Funds 414,464 Fund debt service payment
Nonmajor Governmental Funds Nonmajor Governmental Funds 15,160 Fund operating deficit
Nonmajor Governmental Funds Nonmajor Enterprise Funds 3,006,626 Purchase capital assets
Nonmajor Governmental Funds Nonmajor Enterprise Funds 1,833 Fund operating deficit
Nonmajor Governmental Funds Internal Service Funds 17,480 Purchase capital assets
Nonmajor Governmental Funds Sanitation Fund 16,785 Purchase capital assets
Nonmajor Governmental Funds Water and Sewer Fund 309,007 Purchase capital assets
Water and Sewer Fund General Fund 571,896 Administrative overhead
Water and Sewer Fund Nonmajor Governmental Funds 500,000 Fund debt service payment
Water and Sewer Fund Internal Service Funds 34,369 Purchase capital assets
Sanitation Fund General Fund 1,334,749 Administrative overhead
Sanitation Fund Internal Service Funds 483,839 Purchase capital assets
Nonmajor Enterprise Funds General Fund 8,295 Administrative overhead
Nonmajor Enterprise Funds Nonmajor Governmental Funds 52,632 Supplement operating grant
Internal Service Funds General Fund 312.000 Administrative overhead
Total $11.176,200
52
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 16 - COMMITMENTS AND CONTINGENCIES
Litigation
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 $5,837,692 at September 30, 2005. This accrual is recorded as a long-term
liability in the Government-wide Statement of Net Assets.
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, 2005, 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, 2005 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.
Multi-Purpose Events Center
The City owns an activities complex known as the Multi-Purpose Events Center (MPEC). These
assets are recorded in the government-wide statement of net assets. The management and
operations of the MPEC are contracted with a third party in which the City will fund any operating
deficits of the MPEC from the City's undesignated hotel/motel taxes. During the year ended
September 30, 2005, the City paid $1,405,153 to the third party to fund these operating deficits.
53
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 16 - COMMITMENTS AND CONTINGENCIES (CONT'D.)
Construction Contracts
At September 30, 2005, 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 $ 1,731,305
Nonmajor Governmental Funds 2,083,012
Water and Sewer Fund 16,959,081
Sanitation Fund 728,431
Nonmajor Enterprise Funds 167,887
Total contract commitments $21.669.716
Economic Development Contracts - Discretely Presented Component Units
At September 30, 2005, the Wichita Falls Economic Development Corporation and the Wichita
Falls 4B Sales Tax Corporation were committed to several economic development contracts. The
amounts for which the component units are committed to complete these contracts are as follows:
Wichita Falls Economic Development Corporation $ 985,985
Wichita Falls 4B Sales Tax Corporation 500,000
Total contract commitments $1.485.985
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, Bureau of Justice Assistance, North Texas Regional Narcotics Task Force,
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.
54
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2005
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, 2005 is as
follows:
Wichita Falls Wichita Falls Multi-
Economic 4B Sales Wichita Falls Purpose
Development Tax Reinvestment Events
Corporation Corooration Zone#1 Center Totals
Condensed statement of net assets:
Cash,investments and other
current assets $16,080,967 $5,539,237 $203,592 $ 387,050 $22,210,846
Capital assets,net of accumulated
depreciation 1.229.679 - - 34,043 1.263.722
Total assets 17,310.646 5.539.237 203.592 421,093 23.474.568
Accounts payable and other
current liabilities 82,661 - - 435,416 518,077
Amount due to primary government - 2,596,718 - - 2.596.718
Total liabilities 82.661 2,596.718 - 435.416 3.114.795
Net assets $17.227.985 $2.942 519 $203,592 ($ 14 323) $20.359 773
Condensed statement of activities:
Expenses:
Multi-Purpose Events Center $ - $ - $ - $3,594,678 $ 3,594,678
Community development 1.231.386 1.686.715 650,843 - 3.568.944
Total expenses 1,231.386 1.686.715 650,843 3.594.678 7,163.622
Program revenues:
Charges for services - - - 2,158,106 2,158,106
Operating grants and
contributions - - - 1.405.153 1.405.153
Total program revenues - - - 3.563.259 3.563.259
Net program expense ( 1.231.3861 ( 1.686.715) ( 650,843) ( 31.419) ( 3.600.363)
General revenues:
Tax revenues 2,974,250 2,974,250 264,991 - 6,213,491
Non-tax general revenues 390.381 156.026 5.679 815 552.901
Total general revenues and
transfers 3.364.631 3.130.276 270,670 815 6.766.392
Change in net assets 2,133,245 1,443,561 ( 380,173) ( 30,604) 3,166,029
Beginning net assets 15.094.740 1.498.958 583.765 16.281 17.193,744
Ending net assets $17227.985 $2.942.519 $203,592 ($ 14.323) $20 359.773
55
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2005
Note 18 - PRIOR PERIOD ADJUSTMENTS
During the year ended September 30, 2005, the City continued the process of adding the historical
cost of infrastructure assets to the government-wide financial statements. The City added
drainage, dams and trails assets totaling $28,193,257 (net of accumulated depreciation) in the
current year.
56
Required Supplemental Information
V
EXHIBIT B-1
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 43,122,154 $ 43,277,154 $ 43,829,551 $ 552,397
Charges for services 2,221,086 2,221,086 2,268,182 47,096
Licenses and permits 2,304,331 2,304,331 2,218,119 (86,212)
Fines and forfeitures 1,823,387 1,939,382 2,010,143 70,761
Intergovernmental revenue 34,500 34,500 93,228 58,728
Contributions - - 1,176,107 1,176,107
Miscellaneous revenue 612,727 737,727 1,058,844 321,117
Total revenues 50,118,185 50,514,180 52,654,174 2,139,994
Expenditures:
Current:
Administrative services 8,521,939 9,047,542 8,190,824 856,718
Police 16,274,238 16,070,105 15,975,510 94,595
Fire 10,094,353 10,193,934 10,177,506 16,428
Parks and recreation 3,767,078 3,829,990 3,721,527 108,463
Accounting/finance 1,854,287 1,861,287 1,754,186 107,101
Community development 1,410,057 1,425,516 1,360,521 64,995
Public works 4,490,529 4,504,292 4,481,391 22,901
Health 2,591,270 2,551,261 2,523,824 27,437
Traffic and transportation 1,583,643 1,843,475 1,729,519 113,956
Capital outlay 2,036,377 3,197,422 2,471,674 725,748
Total expenditures 52,623,771 54,524,824 52,386,482 2,138,342
Excess of revenues over(under) expenditures (2,505,586) (4,010,644) 267,692 4,278,336
Other financing sources(uses):
Transfers in 2,226,940 2,226,940 2,226,940 -
Transfers out (328,804) (397,790) (470,239) (72,449)
Total other financing sources (uses) 1,898,136 1,829,150 1,756,701 (72,449)
Excess of revenues and other sources
over(under) expenditures and other uses (607,450) (2,181,494) 2,024,393 4,205,887
Fund balance-beginning 11,023,674 11,023,674 11,023,674 -
Fund balance-ending $ 10,416,224 $ 8,842,180 $ 13,048,067 $ 4,205,887
57
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2005
Demonstrating compliance with the adopted budget is an important component of a government's
accountability to the public. Many citizens participate in the process of establishing the annual operating
budgets of state and local governments, and have a keen interest in following the actual financial
progress of their governments over the course of the year. The City and many other governments revise
their original budgets over the course of the year for a variety of reasons. Under the new reporting model,
governments will continue to provide budgetary comparison information in their annual reports. An
important change, however, is a requirement to add the government's original budget to the current
comparison of final budget and actual results.
The City adheres to the following procedures in establishing the operating budget reflected in the basic
financial statements:
On or before August 15 of each year, the City Manager submits to the City Council a proposed budget for
the fiscal year beginning the following October 1. The operating budget includes proposed expenditures
and the means of financing them. Public hearings are conducted. The budget is legally enacted by the
City Council through passage of appropriation and tax levying ordinances prior to September 30 and is
published under a separate cover.
An annual budget, including debt service requirements, is legally adopted for all governmental funds on a
basis which is consistent with generally accepted accounting principles. However, the budgets for the
Capital Projects Funds are adopted for specific projects, are not binding, and may exceed one year.
The City Council must approve any transfer of appropriation balances or portions thereof from one
department to another. The City Manager has the authority, without City Council approval, to transfer
appropriation balances from one expenditure account to another within a single department of the City.
Supplemental appropriations of $1,901,053 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.
58
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)
12/31/95 $ 46,420,960 $ 59,450,213 78.1% $ 13,029,253 $ 22,768,262 57.2%
12/31/96 48,533,798 62,979,458 77.1% 14,445,660 23,859,734 60.5%
12/31/97 51,833,203 67,746,553 76.5% 15,913,350 24,726,606 64.4%
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%
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.
59
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)
12/31/95 $ 16,529,273 $ 18,648,105 88.6% $ 2,118,832 $ 4,214,096 50.3%
12/31/96 18,276,026 20,042,040 91.2% 1,766,014 4,794,594 36.8%
12/31/97 19,916,831 25,193,592 79.1% 5,276,761 4,712,854 112.0%
12/31/98(b) - - - - - -
12/31/99(b) - - - - - -
12/31/00 26,930,018 31,419,892 85.7% 4,489,874 5,858,962 76.6%
12/31/01 (b) - - - - - -
12/31/02(c) 27,439,565 37,003,896 74.2% 9,564,331 6,609,807 144.7%
12/31/03(b) - - - - - -
12/31/04(c) 32,240,524 42,178,490 76.4% 9,937,966 7,175,196 138.5%
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) During 1995,the plan was amended to increase standard retirement benefits from 2.01%to 2.10%of the firefighter's
average salary multiplied by years of service. Additionally,the minimum benefit for retired firefighters was raised from$300
per month to$400 per month. Widows minimum monthly payments were raised to remain two-thirds of the minimum for
retired firefighters. Two additional payment options were also added to the plan's provisions. These amendments
increased the actuarial accrued liability as of October 1, 1995 by approximately$660,000.
(b) Historical trend information is presented for as many years as such information about the plan is available. No actuarial
valuation or update was performed as of these dates. Texas state law does not require an actuarial valuation to be
completed annually. The last actuarial valuation update was completed as of December 31,2002. Additional historical trend
information will be disclosed in future periods as it becomes available.
(c) For the 2002 and 2004 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.
60
Combining Financial Statements
n
r
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.
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.
2003 CO General Improvements
This fund was established to account for the projects financed by the 2003 Certificates of
Obligation, including the Public Safety Training Center.
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 30,2005
Special Revenue
Home
Community Investment Hotel/ Airport Miscellaneous
Development Section 8 Partnership Motel Improvement Special
Block Grant Housing Agreement Tax Grant Revenue
ASSETS
Cash and cash equivalents $ - $ 1,690,368 $ 220,324 $ 215,050 $ 290,595 $ 1,699,907
Receivables:
Taxes and assessments - - - 111,148 - -
Other City funds - - - - - 4,300
Component Unit - - - - - -
Government agencies 1,398,195 - 364,576 - 379,403 317,430
Other 10,224 - -
380,204
Prepaid items 18,000 - - - - 244
Other assets - - - - - 3,000
Total assets $ 1,416,195 $ 1,700,592 $ 584,900 $ 326,198 $ 669,998 $ 2,405,085
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable-trade $ 78,643 $ 848 $ 27,457 $ - $ 152,036 $ 78,374
Accrued payroll 6,018 8,803 1,861 - - 62,024
Payable to other City funds 26,741 25 - - - 687,675
Payable to government agencies - 131,560 - - - 2,792
Notes payable - - - - - -
Other liabilities 14,295 - 44,744 - 296,891 313,214
Deferred revenue - - - - - 48,064
Total liabilities 125,697 141,236 74,062 - 448,927 1,192,143
Fund balance:
Reserved for encumbrances 764,907 - - - - 38,652
Reserved for prepaid items 18,000 - - - - 244
Reserved for debt service - _ - - - -
Reserved for perpetual care - - - - - -
Unreserved:
Designated for subsequent 507,591 1,559,356 510,838 - 221,071 1,174,046
years expenditures
Undesignated - - - 326,198 - -
Total fund balance 1,290,498 1,559,356 510,838 326,198 221,071 1,212,942
Total liabilities and fund balance $ 1,416,195 $ 1,700,592 $ 584,900 $ 326,198 $ 669,998 $ 2,405,085
61
EXHIBIT C-1
Permanent
Debt Service Capital Projects Fund
Total
2003 Miscellaneous Nonmajor
Debt Excess 4B Sales CO General Capital Perpetual Governmental
Service Sales Tax Tax Projects Improvements Projects Care Funds
$ 394,709 $ 452,479 $ - $ - $ 4,509,418 $ 685,215 $ 10,158,065
111,140 - - - - - 222,288
4,300
- 2,596,718 - - - 2,596,718
14,238 294,852 - - - - 2,768,694
- - - - - 390,428
- - - - - 18,244
- - - - - - 3,000
$ 520,087 $ 747,331 $ 2,596,718 $ - $ 4,509,418 $ 685,215 $ 16,161,737
$ - $ - $ 149,608 $ - $ - $ - $ 486,966
- - - - - - 78,706
- - - - 4,063 - 718,504
- - - - - - 134,352
- - - - 178,149 - 178,149
- - 1,473 - 588,722 - 1,259,339
117,530 - - - - - 165,594
117,530 - 151,081 - 770,934 - 3,021,610
- - 2,445,637 - - - 3,249,196
- - - - - - 18,244
402,557 747,331 - - - - 1,149,888
- - - - - 685,215 685,215
- - - - 3,738,484 - 7,711,386
- - - - - - 326,198
402,557 747,331 2,445,637 - 3,738,484 685,215 13,140,127
$ 520,087 $ 747,331 $ 2,596,718 $ - $ 4,509,418 $ 685,215 $ 16,161,737
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2005
Special Revenue
Home
Community Investment Hotel/ Airport Miscellaneous
Development Section 8 Partnership Motel Improvement Special
Block Grant Housing Agreement Tax Grant Revenue
Revenues:
Taxes $ - $ - $ - $ 1,239,867 $ - $ -
Charges for services 20,586 - - - - 191,380
Fines and forfeitures - - - - - 151,639
Intergovernmental revenue 1,641,000 4,610,824 574,594 - 2,856,294 3,227,876
Contributions - - - - - 116,371
Miscellaneous revenue 52,605 42,008 45,766 12,197 - 526,738
Total revenues 1,714,191 4,652,832 620,360 1,252,064 2,856,294 4,214,004
Expenditures:
Current:
Administrative services 141,424 - - 111,500 - 257,773
Police - - - - - 557,833
Fire - - - - - 19,099
Parks and recreation 59,429 - - - - 325,067
Community development 970,402 3,883,044 625,108 - - 442,937
Public works 145,934 - - - - 19,914
Health 6,180 - - - - 1,861,266
Traffic and transportation - - - - - 207,905
MPEC - - - 1,125,153 - 80,000
Capital outlay 594,717 - - - - 684,927
Debt service:
Principal retirement - - - - - -
Interest and paying agent fees - - - - - -
Total expenditures 1,918,086 3,883,044 625,108 1,236,653 - 4,456,721
Excess of revenues over
(under)expenditures (203,895) 769,788 . (4,748) 15,411 2,856,294 (242,717)
Other financing sources(uses):
Transfers in - - - 52,632 101,722
Transfers out - - - (279,624) (3,006,626) (36,098)
Total other financing sources(uses) - - - (279,624) (2,953,994) 65,624
Excess of revenues and other sources
over(under)expenditures and other uses (203,895) 769,788 (4,748) (264,213) (97,700) (177,093)
Fund balance-beginning 1,494,393 789,568 515,586 590,411 318,771 1,390,035
Fund balance-ending $ 1,290,498 $ 1,559,356 $ 510,838 $ 326,198 $ 221,071 $ 1,212,942
62
EXHIBIT C-2
Permanent
Debt Service Capital Projects Fund
Total
2003 Miscellaneous Nonmajor
Debt Excess 4B Sales CO General Capital Perpetual Governmental
Service Sales Tax Tax Projects Improvements Projects Care Funds
$ 1,872,248 $ 294,852 $ - $ - $ - $ - $ 3,406,967
- - - - - - 211,966
- - - - - - 151,639
- - - - - - 12,910,588
1,041,715 - - - 572,787 - 1,730,873
40,251 13,844 - 12,699 121,472 58,959 926,539
2,954,214 308,696 - 12,699 694,259 58,959 19,338,572
- - - - - - 510,697
- - 198,030 - - - 755,863
- - - - - - 19,099
- - 453 - - - 384,949
- - - - - - 5,921,491
- - - - 6,300 - 172,148
- - - - - - 1,867,446
- - - - - - 207,905
- - - - - - 1,205,153
- -
6,136,892 - 282,918 - 7,699,454
3,050,000 - - - - - 3,050,000
800,386 - - - 52,238 - 852,624
3,850,386 - 6,335,375 - 341,456 - 22,646,829
(896,172) 308,696 (6,335,375) 12,699 352,803 58,959 (3,308,257)
914,464 - 3,626,827 - - - 4,695,645
- (150,000) - (3,626,827) (309,007) - (7,408,182)
914,464 (150,000) 3,626,827 (3,626,827) (309,007) - (2,712,537)
18,292 158,696 (2,708,548) ' (3,614,128) 43,796 58,959 (6,020,794)
384,265 588,635 5,154,185 3,614,128 3,694,688 626,256 19,160,921
$ 402,557 $ 747,331 $ 2,445,637 $ - $ 3,738,484 $ 685,215 $ 13,140,127 •
I
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.
Golf Fund
The Golf Fund was established to account for the operating revenues and expenses of the
Weeks Park Golf Course. The operations of the golf course, which include maintenance, the
pro shop and food service, are supported by green and cart fees, and merchandise and food
sales.
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, 2005
Municipal Kickapoo
Golf Airport Airport
ASSETS
Current assets:
Cash and cash equivalents $ - $ 523,422 $ 116,290
Receivables (net of allowance for
uncollectible accounts):
Customer and trade - - -
Government agencies - - -
Other (51) 34,229 26,592
Inventory 80,531 - 33,250
Prepaid items 2,159 2,836 6,664
Total current assets 82,639 560,487 182,796
Capital assets, net of accumulated depreciation 77,297 635,005 5,590,361
Total assets 159,936 1,195,492 5,773,157
LIABILITIES
Current liabilities payable from current assets:
Accounts payable -trade 26,596 5,968 4,517
Accrued payroll 13,939 2,061 3,552
Accrued vacation and sick leave 12,553 6,485 4,767
Payable to other City funds 1,763 123 471
Payable to government agencies 2,445 (1,939) 55
Other liabilities 8,939 3,448 349
Total current liabilities payable
from current assets 66,235 16,146 13,711
Net assets:
Invested in capital assets 77,297 635,005 5,590,361
Unrestricted 16,404 544,341 169,085
Total net assets $ 93,701 $ 1,179,346 $ 5,759,446
63
EXHIBIT D-1
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 53,523 $ 1,217,758 $ 1,910,993
98,643 98,643
92,240 - 92,240
60,770
113,781
93 11,752
145,763 1,316,494 2,288,179
654,760 3,068,060 10,025,483
800,523 4,384,554 12,313,662
8,146 12,435 57,662
17,266 2,274 39,092
16,878 - 40,683
- 2,357
561
13,607 26,343
42,290 28,316 166,698
654,760 3,068,060 10,025,483
103,473 1,288,178 2,121,481
$ 758,233 $ 4,356,238 $ 12,146,964
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Municipal Kickapoo
Golf Airport Airport
Operating revenues:
Charges for services $ 515,826 $ - $ 2,348
Rents, concessions and other 106,608 446,388 267,846
Total operating revenues 622,434 446,388 270,194
Operating expenses:
Personnel services 484,775 44,371 156,929
Supplies and materials 73,202 2,713 3,148
Maintenance and repairs 42,531 56,412 17,511
Utilities and other services 93,729 61,776 64,066
Insurance and contract support 17,942 10,886 20,908
Other expenses 58,368 44,188 36,154
Depreciation and amortization 11,536 65,546 111,906
Total operating expenses 782,083 285,892 410,622
Operating income (loss) (159,649) 160,496 (140,428)
Nonoperating revenues (expenses):
Interest income - 12,721 3,134
Loss on disposal of capital assets - - (204,873)
Intergovernmental operating grants - - 4,900
Total nonoperating revenues (expenses) - 12,721 (196,839)
Income (loss) before transfers (159,649) 173,217 (337,267)
Transfers:
Transfers in 172,000 - 3,006,626
Transfers out (8,295) (52,632) -
Net transfers 163,705 (52,632) 3,006,626
Net income (loss) 4,056 120,585 2,669,359
Net assets- beginning 89,645 1,058,761 3,090,087
Net assets-ending $ 93,701 $ 1,179,346 $ 5,759,446
64
I
EXHIBIT D-2
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 162,018 $ 1,042,278 $ 1,722,470
820,842
162,018 1,042,278 2,543,312
668,861 85,774 1,440,710
152,844 1,378 233,285
174,024 3,301 293,779
94,666 5,529 319,766
98,337 - 148,073
40,433 6,245 185,388
29,478 24,239 242,705
1,258,643 126,466 2,863,706
(1,096,625) 915,812 (320,394)
25,027 40,882
- (204,873)
921,188 - 926,088
921,188 25,027 762,097
(175,437) 940,839 441,703
213,509 - 3,392,135
(60,927)
213,509 - 3,331,208
38,072 940,839 3,772,911
720,161 3,415,399 8,374,053
$ 758,233 $ 4,356,238 $ 12,146,964
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Municipal Kickapoo
Golf Airport Airport
Cash flows from operating activities:
Receipts from customers and users $ 622,485 $ 444,916 $ 274,009
Payments to suppliers (379,294) (182,348) (179,558)
Payments to employees (396,202) (30,157) (116,908)
Net cash provided (used) by operating activities (153,011) 232,411 (22,457)
Cash flows from noncapital financing activities:
Intergovernmental operating grants - - 4,900
Transfers out to other funds (8,295) (52,632) -
Transfers from other funds 172,000 - 3,006,626
Net cash provided (used) by noncapital financing activities 163,705 (52,632) 3,011,526
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets (10,694) (16,170) (3,006,626)
Net cash provided by(used for) capital
and related financing activities (10,694) (16,170) (3,006,626)
Cash flows from investing activities:
Interest on investments - 12,721 3,134
Net cash provided by investing activities - 12,721 3,134
Net Increase (Decrease) in Cash and Cash Equivalents - 176,330 (14,423)
Cash and Cash Equivalents- Beginning - 347,092 130,713
Cash and Cash Equivalents- Ending $ - $ 523,422 $ 116,290
65
EXHIBIT D-3
(Page 1 of 2)
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
162 01$ 8 $ 1,038,820 $ 2,542,248
(811,512) (114,177) (1,666,889)
(503,999) (65,898) (1,113,164)
(1,153,493) 858,745 (237,805)
1,008,927 - 1,013,827
(60,927)
213,509 - 3,392,135
1,222,436 - 4,345,035
(15,420) (382,067) (3,430,977)
(15,420) (382,067) (3,430,977)
25,027 40,882
25,027 40,882
53,523 501,705 717,135
716,053 1,193,858
$ 53,523 $ 1,217,758 $ 1,910,993
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS (CONT'D.)
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Municipal Kickapoo
Golf Airport Airport
Cash flows from operating activities:
Operating income (loss) $ (159,649) $ 160,496 $ (140,428)
Adjustments to reconcile operating income (loss)
to net cash provided by(used in) operating
activities:
Depreciation and amortization 11,536 65,546 111,906
(Increase)decrease in current assets:
Receivables:
Customer and trade - - -
Other 51 (1,472) 3,815
Inventory 25,363 - 18,261
Prepaid items (1,196) (603) -
Increase (decrease) in current liabilities:
Accounts payable-trade (8,365) 799 (8,618)
Accrued payroll 1,903 1,068 354
Accrued vacation and sick leave 613 2,900 (1,103)
Payable to other City funds (26,362) 123 471
Payable to government agencies (322) 106 (351)
Other liabilities 3,417 3,448 (6,764)
Total adjustments 6,638 71,915 117,971
Net cash provided by(used in)
operating activities $ (153,011) $ 232,411 $ (22,457)
66
EXHIBIT D-3
(Page 2 of 2)
Stormwater
Transit Drainage Totals
$(1,096,625) $ 915,812 $ (320,394)
29,478 24,239 242,705
(3,458) (3,458)
2,394
43,624
(93) (1,892)
2,894 (20,302) (33,592)
2,167 1,483 6,975
2,410
(91,407) - (117,175)
(567)
(58,936) (58,835)
(56,868) (57,067) 82,589
$(1,153,493) $ 858,745 $ (237,805)
•
G•
i •_
�In4
V
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, 2005
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
ASSETS
Current assets:
Cash and cash equivalents $ 745,718 $ 80,912 $ 1,233,202 $ 2,059,832
Receivables:
Other 22,414 - - 22,414
Inventory 913,404 9,322 - 922,726
Prepaid items 351 33,024 150 33,525
Total current assets 1,681,887 123,258 1,233,352 3,038,497
Capital assets, net of accumulated depreciation 13,503,149 79,850 2,329 13,585,328
Total assets 15,185,036 203,108 1,235,681 16,623,825
LIABILITIES
Current liabilities:
Accounts payable-trade 245,664 5,555 21,286 272,505
Accrued payroll 41,075 1,827 4,175 47,077
Accrued vacation and sick leave 46,765 652 - 47,417
Payable to other City funds 71 99 4,722 4,892
Estimated health claims payable - - 806,286 806,286
Total current liabilities 333,575 8,133 836,469 1,178,177
NET ASSETS
Invested in capital assets 13,503,149 79,850 2,329 13,585,328
Unrestricted 1,348,312 115,125 396,883 1,860,320
Total net assets $ 14,851,461 $ 194,975 $ 399,212 $ 15,445,648
67
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, 2005
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Operating revenues:
Charges for services $ 8,352,710 $ 237,409 $ 35,968 $ 8,626,087
Rents, concessions and other 31,831 - 311,619 343,450
Contributions - - 7,089,352 7,089,352
Total operating revenues 8,384,541 237,409 7,436,939 16,058,889
Operating expenses:
Personnel services 1,574,615 68,197 158,507 1,801,319
Supplies and materials 2,618,254 33,057 4,828 2,656,139
Maintenance and repairs 1,989,965 13,779 - 2,003,744
Utilities and other services 108,848 195 10,636 119,679
Insurance and contract support 92,473 - 6,910,608 7,003,081
Other expenses 148,723 113,928 6,739 269,390
Depreciation and amortization 2,867,799 11,442 601 2,879,842
Total operating expenses 9,400,677 240,598 7,091,919 16,733,194
Operating income(loss) (1,016,136) (3,189) 345,020 (674,305)
Nonoperating revenues(expenses):
Interest income - - 46,336 46,336
Gain on sale of capital assets 74,862 - - 74,862
Total nonoperating revenues
(expenses) 74,862 - 46,336 121,198
Income(loss) before transfers (941,274) (3,189) 391,356 (553,107)
Transfers:
Transfers in 535,689 - - 535,689
Transfers out (312,000) - - 012,000)
Total transfers 223,689 - - 223,689
Net income(loss) (717,585) (3,189) 391,356 (329,418)
Net assets-beginning 15,569,046 198,164 7,856 15,775,066
Net assets-ending $ 14,851,461 $ 194,975 $ 399,212 $ 15,445,648
68
EXHIBIT E-3
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Cash flows from operating activities:
Receipts from customers and users $ 8,377,996 $ 237,409 $ 7,447,430 $ 16,062,835
Payments to suppliers (5,503,444) (195,440) (6,994,636) (12,693,520)
Payments to employees (1,227,730) (50,340) (121,976) (1,400,046)
Net cash provided(used) by operating activities 1,646,822 (8,371) 330,818 1,969,269
Cash flows from noncapital financing activities:
Transfers in from other funds 535,689 - - 535,689
Transfers out to other funds (312,000) - - (312,000)
Net cash provided by noncapital financing activities 223,689 - - 223,689
Cash flows from capital and related
financing activities:
Acquisition of capital assets (2,266,655) - - (2,266,655)
Proceeds from sale of fixed assets 95,741 - - 95,741
Net cash used for capital and
related financing activities (2,170,914) - - (2,170,914)
Cash flows from investing activities:
Interest on investments - - 46,336 46,336
Net Increase(Decrease)in Cash and Cash Equivalents (300,403) (8,371) 377,154 68,380
Cash and Cash Equivalents-Beginning 1,046,121 89,283 856,048 1,991,452
Cash and Cash Equivalents-Ending $ 745,718 $ 80,912 $ 1,233,202 $ 2,059,832
Cash flows from operating activities:
Operating income(loss) $ (1,016,136) $ (3,189) $ 345,020 $ (674,305)
Adjustments to reconcile operating income to net
cash provided (used)by operating activities:
Depreciation and amortization 2,867,799 11,442 601 2,879,842
(Increase)decrease in current assets:
Receivables:
Other (6,545) - 10,491 3,946
Inventory (137,107) (22) - (137,129)
Prepaid items 9,182 (18,209) (150) (9,177)
Increase(decrease)in current liabilities:
Accounts payable-trade (54,769) 1,853 (884) (53,800)
Accrued payroll (407) 123 516 232
Accrued vacation and sick leave (15,266) (468) - (15,734)
Payable to other City funds 71 99 4,722 4,892
Estimated health claims payable - - (29,498) (29,498)
Total adjustments 2,662,958 (5,182) (14,202) 2,643,574
Net cash provided by
operating activities $ 1,646,822 $ (8,371) $ 330,818 $ 1,969,269
69
151
C.)
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.
EXHIBIT F-1
CITY OF WICHITA FALLS, TEXAS
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/1/2004 Additions Deductions 9/30/2005
ESCHEATMENT FUND
Assets
Cash and cash equivalents $ 38,523 $ 6,748 $ 5,333 $ 39,938
Liabilities
Other liabilities $ 38,523 $ 6,748 $ 5,333 $ 39,938
70
Wichita
1 (610
n
it•
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/Wichita County Multi-Purpose Events Center
The Wichita Falls/Wichita County Multi-Purpose Events Center (a nonprofit entity) was
established to operate the Multi-Purpose Events Center (Center) for the City. The Center
consists of a Coliseum, an Exhibit Hall, and an Agricultural Complex.
EXHIBIT G-1
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET ASSETS
COMPONENT UNITS
SEPTEMBER 30, 2005
Wichita Falls WF/WC
Economic Wichita Falls Wichita Falls Multi-Purpose
Development 4B Sales Tax Reinvestment Events
Corporation Corporation Zone#1 Center Totals
Assets
Cash and cash equivalents $15,544,237 $ 5,002,507 $ 172,411 $ 251,621 $20,970,776
Receivables:
Taxes and assessments - - 31,181 - 31,181
Government agencies 536,730 536,730 - - 1,073,460
Other - - - 63,659 63,659
Inventory - - - 41,576 41,576
Prepaid items - - - 20,734 20,734
Other assets - - - 9,460 9,460
Capital assets, net of accumulated depreciation 1,229,679 - - 34,043 1,263,722
Total assets 17,310,646 5,539,237 203,592 421,093 23,474,568
Liabilities
Accounts payable-trade 82,661 - - 189,679 272,340
Accrued payroll - - - 40,398 40,398
Payable to primary government - 2,596,718 - 66 2,596,784
Payable to government agencies - - - 14,227 14,227
Other liabilities - - - 137,905 137,905
Long-term liabilities - - - 53,141 53,141
Total liabilities 82,661 2,596,718 - 435,416 3,114,795
Net assets
Investment in capital assets, net of related debt 1,229,679 - - 34,043 1,263,722
Unrestricted 15,998,306 2,942,519 203,592 (48,366) 19,096,051
Total net assets $17,227,985 $ 2,942,519 $ 203,592 $ (14,323) $20,359,773
71
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Program Revenue
Operating
Charges for Grants and
Expenses Services Contributions
Community development
Wichita Falls Economic Development Corporation $ 1,231,386 $ - $ -
Wichita Falls 4B Sales Tax Corporation 1,686,715 - -
Wichita Falls Reinvestment Zone#1 650,843 - -
Total community development 3,568,944 - -
Multi-Purpose Events Center
WF/WC Multi-Purpose Events Center 3,594,678 2,158,106 1,405,153
Total component units $ 7,163,622 $ 2,158,106 $ 1,405,153
General revenues:
Taxes:
Property tax
Sales tax
Investment earnings
Total general revenues
Change in net assets
Net assets-beginning
Net assets-ending
72
EXHIBIT G-2
Net(Expense) Revenue and
Changes in Net Assets
Wichita Falls WF/WC
Economic Wichita Falls Wichita Falls Multi-Purpose
Development 4B Sales Tax Reinvestment Events
Corporation Corporation Zone#1 Center Totals
$ (1,231,386) $ - $ - $ - $ (1,231,386)
(1,686,715) - - (1,686,715)
-
-
(650,843) - (650,843)
(1,231,386) (1,686,715) (650,843) - (3,568,944)
-
- (31,419) (31,419)
(1,231,386) (1,686,715) (650,843) (31,419) (3,600,363)
-
-
264,991 - 264,991
. 2,974,250 2,974,250 - - 5,948,500
390,381 156,026 5,679 815 552,901
3,364,631 3,130,276 270,670 815 6,766,392
2,133,245 1,443,561 (380,173) (30,604) 3,166,029
15,094,740 1,498,958 583,765 16,281 17,193,744
$ 17,227,985 $ 2,942,519 $ 203,592 $ (14,323) $ 20,359,773
Wichita
Wichita
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES
SEPTEMBER 30,2005
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)
2006 $ 2,455,000 $ 487,431 $ 2,942,431 $ 3,748,656 $ 1,305,034 $ 5,053,690 $ 1,688,947
2007 880,000 387,569 1,267,569 3,852,089 1,202,401 5,054,490 1,763,084
2008 910,000 350,169 1,260,169 4,160,612 1,080,853 5,241,465 1,702,180
2009 945,000 312,631 1,257,631 3,854,464 974,726 4,829,190 1,761,394
2010 745,000 273,650 1,018,650 3,970,730 840,560 4,811,290 1,850,579
2011 340,000 241,987 581,987 4,082,400 739,065 4,821,465 1,919,611
2012 355,000 227,113 582,113 4,208,823 620,087 4,828,610 1,998,606
2013 370,000 210,694 580,694 2,745,112 467,688 3,212,800 3,452,439
2014 385,000 193,581 578,581 2,762,303 442,510 3,204,813 3,630,067
2015 405,000 175,775 580,775 2,888,049 313,118 3,201,167 3,817,567
2016 425,000 154,512 579,512 3,037,350 176,025 3,213,375 4,014,931
2017 450,000 132,200 582,200 375,000 30,025 405,025 4,212,151
2018 475,000 108,013 583,013 385,000 15,400 400,400 4,439,231
2019 500,000 82,481 582,481 - - - 8,136,144
2020 530,000 55,606 585,606 - - - 8,564,874
2021 555,000 28,444 583,444 - - - 9,018,266
11
2022 - - - - - - 9,456,786
2023 - - - - - - 9,924,985
2024 - - - - - - 10,442,382
2025 - - - - - - 10,989,377
2026 - - - - - - 11,526,453
2027 - - - - - - 4,343,135
$ 10,725,000 $ 3,421,856 $ 14,146,856 $ 40,070,588 $ 8,207,492 $ 48,278,080 $ 118,653,189
(1)Includes amortization of bond premium of$1,915,589.
(2)Includes amortization of bond premium of$1,298,189.
73
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
$ 5,991,047 $ 7,679,994 $ 25,000 $ 359,999 $ 384,999 $ 7,917,603 $ 8,143,511 $ 16,061,114
5,920,529 7,683,613 25,000 359,027 384,027 6,520,173 7,869,526 14,389,699
5,847,841 7,550,021 25,000 358,041 383,041 6,797,792 7,636,904 14,434,696
5,782,781 7,544,175 25,000 357,044 382,044 6,585,858 7,427,182 14,013,040
5,715,176 7,565,755 25,000 356,021 381,021 6,591,309 7,185,407 13,776,716
5,636,226 7,555,837 25,000 354,974 379,974 6,367,011 6,972,252 13,339,263
5,553,869 7,552,475 25,000 353,902 378,902 6,587,429 6,754,971 13,342,400
5,459,546 8,911,985 325,000 352,804 677,804 6,892,551 6,490,732 13,383,283
5,280,780 8,910,847 310,000 338,374 648,374 7,087,370 6,255,245 13,342,615
5,092,463 8,910,030 300,000 324,455 624,455 7,410,616 5,905,811 13,316,427
4,893,706 8,908,637 275,000 310,835 585,835 7,752,281 5,535,078 13,287,359
4,684,400 8,896,551 3,180,000 298,350 3,478,350 8,217,151 5,144,975 13,362,126
4,464,494 8,903,725 3,320,000 152,388 3,472,388 8,619,231 4,740,295 13,359,526
4,232,338 12,368,482 - - - 8,636,144 4,314,819 12,950,963
3,798,306 12,363,180 - - - 9,094,874 3,853,912 12,948,786
3,340,894 12,359,160 - - - 9,573,266 3,369,338 12,942,604
2,892,394 12,349,180 - - - 9,456,786 2,892,394 12,349,180
2,421,644 12,346,629 - - - 9,924,985 2,421,644 12,346,629
1,895,336 12,337,718 - - - 10,442,382 1,895,336 12,337,718
1,341,250 12,330,627 - - - 10,989,377 1,341,250 12,330,627
792,750 12,319,203 - - - 11,526,453 792,750 12,319,203
217,000 4,560,135 - - - 4,343,135 217,000 4,560,135
$ 91,254,770 $ 209,907,959 $ 7,885,000 $ 4,276,214 $ 12,161,214 $ 177,333,777 $ 107,160,332 $ 284,494,109
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30, 2005
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
General Obligation Bonds:
General Obligation Refunding 4.10,4.40,4.60,4.70 04/01/96 09/01/06 570,000 (1997)
Bonds,Series 1996 4.80, 5.00,5.10,5.20, 775,000 (1998)
5.30 805,000 (1999)
(3/1,9/1) 845,000 (2000)
885,000 (2001)
925,000 (2002)
970,000 (2003)
1,020,000 (2004)
1,075,000 (2005)
1,130,000 (2006)
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)
General Obligation Refunding 1.60,2.05,2.35 • 09/23/03 09/01/06 775,000 (2004)
Bonds,Series 2003 (3/1,9/1) 815,000 (2005)
860,000 (2006)
Total General Obligation Bonds
74
EXHIBIT H-2
(Page 1 of 4)
Bonds
Retired or
Authorized Issued Refunded Outstanding
$ 9,000,000 $ 9,000,000 $ 7,870,000 $ 1,130,000
10,205,000 10,205,000 1,470,000 8,735,000
2,450,000 2,450,000 1,590,000 860,000
21,655,000 21,655,000 10,930,000 10,725,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30,2005
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
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)
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
Total Combination Tax and Revenue Bonds
75
EXHIBIT H-2
(Page 2 of 4)
Bonds
Retired or
Authorized Issued Refunded Outstanding
7,550,000 7,550,000 1,455,000 6,095,000
18,840,000 18,840,000 685,000 18,155,000
1,060,889 166,398 894,491
14,020,000 14,020,000 115,000 13,905,000
1,050,891 29,794 1,021,097
40,410,000 42,521,780 2,451,192 40,070,588
•
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30, 2005
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
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)
Water and Sewer System 3.75,4.00,4.375,4.50 09/01/01 08/01/27 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)
3,055,000 (2013)
3,220,000 (2014)
3,395,000 (2015)
3,580,000 (2016)
3,760,000 (2017)
3,975,000 (2018)
8,075,000 (2019)
8,510,000 (2020)
8,970,000 (2021)
9,415,000 (2022)
9,890,000 (2023)
10,415,000 (2024)
10,970,000 (2025)
11,515,000 (2026)
4,340,000 (2027)
Water and Sewer System
Priority Lien Revenue
Bonds,Series 2001 -Premium
Total Priority Lien Revenue Bonds
76
EXHIBIT H-2
(Page 3 of 4)
Bonds
Retired or
Authorized Issued Refunded Outstanding
5,500,000 5,500,000 1,445,000 4,055,000
118,770,000 118,770,000 5,470,000 113,300,000
1,634,193 336,003 1,298,190
124,270,000 125,904,193 7,251,003 118,653,190
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30, 2005
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
77
EXHIBIT H-2
(Page 4 of 4)
Bonds
Retired or
Authorized Issued Refunded Outstanding
8,060,000 8,060,000 175,000 7,885,000
8,060,000 8,060,000 175,000 7,885,000
132,330,000 133,964,193 7,426,003 126,538,190
$ 194,395,000 $ 198,140,973 $ 20,807,195 $ 177,333,778
Wichita
EXHIBIT H-3
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE COVERAGE - REVENUE BONDS
SEPTEMBER 30, 2005
Water and Sewer Revenue Bonds:
Change in net assets (Exhibit A-8) $ 7,104,025
Add:
Depreciation and amortization $ 3,230,026
Interest expense and paying agent fees 7,552,485
Transfers out 1,106,265 11,888,776
Subtract:
West Texas Utilities water revenues 527,573
Gain on sale/abandonment of capital assets 56,400
Capital contributions from developers 862,398
Transfers in 309,007 (1,755,378)
Net earnings for determining debt service coverage $17,237,423
Priority Subordinate
Lien Bonds Lien Bonds
Net earnings for determining debt service coverage $17,237,423
Principal and interest requirements to maturity $ 209,907,959 $12,161,214
Number of years remaining to pay bonds 22 13
Average annual principal and interest requirement 9,541,271 935,478
Minimum bond covenant debt service coverage 1.25 1.10
Minimum debt service coverage requirement $ 11,926,589 $ 1,029,026 12,955,614
Excess over debt service coverage requirements $ 4,281,809
78
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2005
Buildings Machinery
Land and and and
Betterments Improvements Equipment
Administrative services:
Mayor and City Council $ - $ 3,797 $ 2,901
City Manager 1,062,849 336,872 49,516
Personnel/Risk Management - - 14,036
Martin Luther King Center - 349,839 7,641
Library 477,942 4,523,930 653,045
General Public Information - - 293,998
Building Maintenance - 1,076,622 32,367
Nondepartmental - 518,881 181,299
Municipal Court 230,000 313,818 195,666
Legal - - 2,254
City Clerk - - 6,700
Homeland security - - 245,776
Total administrative services 1,770,791 7,123,759 1,685,199
Police 1,122,584 6,000,784 10,377,442
Fire 252,459 5,710,267 319,726
Parks and recreation:
Recreation 655,246 1,903,345 268,185
Park maintenance 8,946,251 1,016,451 67,851
Cemetery 20,200 - 11,115
Total parks and recreation 9,621,697 2,919,796 347,151
Accounting/finance:
Accounting/finance - - 13,265
Information Systems - - 1,978,549
Total accounting/finance - - 1,991,814
Community development:
Planning - - 80,670
Inspection - - 41,588
Code enforcement - - 73,892
Property management 1,161,884 420,891 59,496
Lake lot administration - - 1,018
Weed and Seed program - - 14,073
Total community development 1,161,884 420,891 270,737
Public works:
Engineering 125,806 18,837 139,075
Street maintenance 28,547 86,373 24,269
Infrastructure - - -
Total public works 154,353 105,210 163,344
Health:
Administration 34,820 1,008,175 322,366
General City nursing 76,411 1,123 94,746
Environmental health - - 30,014
Lab water pollution - - 41,646
Total health 111,231 1,009,298 488,772
Traffic and transportation - 31,045 117,954
Multi-Purpose Events Center 9,277,513 33,947,462 354,864
Wichita Falls Business Park - - -
Total capital assets used in the operation of governmental funds $ 23,472,512 $ 57,268,512 $ 16,117,003
79
EXHIBIT H-4
Motor
Furniture Vehicles
and and Construction
Fixtures Equipment Infrastructure in Progress Totals
$ 5,218 $ - $ - $ - $ 11,916
15,050 - - - 1,464,287
3,425 - - - 17,461
12,486 - - - 369,966
90,579 - - - 5,745,496
3,184 - - - 297,182
- - - - 1,108,989
- - - - 700,180
4,043 - - - 743,527
- - - - 2,254
- - - - 6,700
- - - - 245,776
133,985 - - - 10,713,734
11,788 - - 1,378,506 18,891,104
1,755 - - - 6,284,207
12,818 - - - 2,839,594
- - - - 10,030,553
- - - - 31,315
12,818 - - - 12,901,462
- - - - 13,265
- - - 1,978,549
- - - - 1,991,814
1,025 - - - 81,695
- - - - 41,588
- - - 73,892
31,485 - - 1,673,756
- - - - 1,018
- - - 14,073
1,025 31,485 - - 1,886,022
3,355 - - - 287,073
1,393 - - - 140,582
- 130,450,753 69,147 130,519,900
4,748 - 130,450,753 69,147 130,947,555
21,835 - - 418,565 1,805,761
5,447 - - - 177,727
- - - 30,014
- - - 41,646
27,282 - - 418,565 2,055,148
- - 7,518,197 - 7,667,196
28,288 - - - 43,608,127
- - - 204,889 204,889
$ 221,689 $ 31,485 $ 137,968,950 $ 2,071,107 $ 237,151,258
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, 2005
Beginning Ending
Balance Balance
10/01/2004 Additions Deletions Adjustments 09/30/2005
Administrative services:
Mayor and City Council $ 11,916 $ - $ - $ - $ 11,916
City Manager 1,464,287 - - - 1,464,287
Personnel/Risk Management 17,461 - - - 17,461
Martin Luther King Center 369,966 - - - 369,966
Library 5,710,553 44,566 9,623 - 5,745,496
General Public Information 293,716 3,466 - - 297,182
Building Maintenance 1,108,989 - - - 1,108,989
Nondepartmental 700,180 - - - 700,180
Municipal Court 731,199 12,328 - - 743,527
Legal 2,254 - - - 2,254
City Clerk 6,700 - - - 6,700
Homeland security 11,352 234,424 - - 245,776
Total administrative services 10,428,573 294,784 9,623 - 10,713,734
Police 12,404,615 6,505,444 18,955 - 18,891,104
Fire 6,245,175 39,032 - - 6,284,207
Parks and recreation:
Recreation 2,827,066 12,528 - - 2,839,594
Park maintenance 10,015,602 14,951 - - 10,030,553
Cemetery 31,315 - - - 31,315
Total parks and recreation 12,873,983 27,479 - - 12,901,462
Accounting/finance:
Accounting/finance 13,265 - - - 13,265
Information Systems 1,922,926 71,791 16,168 - 1,978,549
Total accounting/finance 1,936,191 71,791 16,168 - 1,991,814
Community development:
Planning 81,695 - - - 81,695
Inspection 39,338 2,250 - - 41,588
Code enforcement 73,892 - - - 73,892
Property management 1,673,756 - - - 1,673,756
Lake lot administration 1,018 - - - 1,018
Weed and Seed program 14,073 - - - 14,073
Total community development 1,883,772 2,250 - - 1,886,022
Public works:
Engineering 284,086 2,987 - - 287,073
Street maintenance 137,005 3,577 - - 140,582
Infrastructure 127,991,687 2,528,213 - - 130,519,900
Total public works 128,412,778 2,534,777 - - 130,947,555
Health:
Administration 1,335,948 472,151 2,338 - 1,805,761
General city nursing 177,727 - - - 177,727
Environmental health 30,014 - - - 30,014
Lab water pollution 41,893 1,154 1,401 - 41,646
Total health 1,585,582 473,305 3,739 - 2,055,148
Traffic and transportation 7,503,433 236,469 72,706 - 7,667,196
Multi-Purpose Events Center 43,256,751 351,376 - - 43,608,127
Wichita Falls Business Park 163,874 41,015 - - 204,889
Total capital assets $ 226,694,727 $ 10,577,722 $ 121,191 $ - $ 237,151,258
80
EXHIBIT H-6
CITY OF WICHITA FALLS, TEXAS
GOLF FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/01/2004 Additions Deletions 09/30/2005
Capital Assets:
Land and betterments $ 48,019 $ - $ - $ 48,019
Buildings and improvements 13,267 3,594 - 16,861
Machinery and equipment 79,836 7,100 - 86,936
Furniture and fixtures 3,175 - - 3,175
Total capital assets 144,297 10,694 - 154,991
Accumulated Depreciation:
Land and betterments 4,230 1,921 - 6,151
Buildings and improvements 6,279 1,045 - 7,324
Machinery and equipment 53,268 8,253 - 61,521
Furniture and fixtures 2,382 317 - 2,699
Total accumulated depreciation 66,159 11,536 - 77,695
Net capital assets $ 78,138 $ (842) $ - $ 77,296
81
EXHIBIT H-7
CITY OF WICHITA FALLS, TEXAS
MUNICIPAL AIRPORT FU
ND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/01/2004 Additions Deletions 09/30/2005
Capital Assets:
Land and betterments $ 1,461,823 $ - $ - $ 1,461,823
Buildings and improvements 1,495,194 - - 1,495,194
Machinery and equipment 16,283 16,169 - 32,452
Furniture and fixtures 36,705 - - 36,705
Total capital assets 3,010,005 16,169 - 3,026,174
Accumulated Depreciation:
Land and betterments 1,398,421 30,554 - 1,428,975
Buildings and improvements 898,790 29,702 - 928,492
Machinery and equipment 14,111 1,794 - 15,905
Furniture and fixtures 14,302 3,496 - 17,798
Total accumulated depreciation 2,325,624 65,546 - 2,391,170
Net capital assets $ 684,381 $ (49,377) $ - $ 635,004
82
EXHIBIT H-8
CITY OF WICHITA FALLS, TEXAS
KICKAPOO AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/1/2004 Additions Deletions 9/30/2005
Capital Assets:
Land and betterments $ 954,677 $ 3,710,966 $ 279,327 $ 4,386,316
Buildings and improvements 566,233 180,856 385,377
Machinery and equipment 60,179 473,273 25,616 507,836
Construction in progress 1,546,273 - 996,758 549,515
Total capital assets 3,127,362 4,184,239 1,482,557 5,829,044
Accumulated Depreciation:
Land and betterments 161,573 86,207 93,109 154,671
Buildings and improvements 51,718 11,524 - 63,242
Machinery and equipment 13,557 14,173 6,962 20,768
Total accumulated depreciation 226,848 111,904 100,071 238,681
Net capital assets $2,900,514 $ 4,072,335 $1,382,486 $ 5,590,363
83
EXHIBIT H-9
CITY OF WICHITA FALLS, TEXAS
TRANSIT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/01/2004 Additions Deletions 09/30/2005
Capital Assets:
Land and betterments $ 61,925 $ - $ - $ 61,925
Buildings and improvements 626,868 - - 626,868
Machinery and equipment 205,652 15,420 - 221,072
Furniture and fixtures 1,152 - - 1,152
Total capital assets 895,597 15,420 - 911,017
Accumulated Depreciation:
Buildings and improvements 163,534 7,729 - 171,263
Machinery and equipment 62,094 21,748 - 83,842
Furniture and fixtures 1,152 - - 1,152
Total accumulated depreciation 226,780 29,477 - 256,257
Net capital assets $ 668,817 $ (14,057) $ - $ 654,760
84
EXHIBIT H-10
CITY OF WICHITA FALLS, TEXAS
STORMWATER DRAINAGE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/1/2004 Additions Deletions 9/30/2005
Capital Assets:
Drainage $ - $ 2,564,877 $ - $2,564,877
Machinery and equipment 69,860 1,539 - 71,399
Construction in progress 2,652,779 - 2,184,348 468,431
Total capital assets 2,722,639 2,566,416 2,184,348 3,104,707
•
Accumulated Depreciation:
Drainage - 19,546 - 19,546
Machinery and equipment 12,408 4,693 - 17,101
Total accumulated depreciation 12,408 24,239 - 36,647
Net capital assets $2,710,231 $ 2,542,177 $ 2,184,348 $3,068,060
85
EXHIBIT H-11
CITY OF WICHITA FALLS, TEXAS
SANITATION FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/01/2004 Additions Deletions 09/30/2005
Capital Assets:
Land and betterments $2,054,911 $ 313,402 $ - $2,368,313
Buildings and improvements 2,370,382 - - 2,370,382
Machinery and equipment 117,196 45,687 1,525 161,358
Construction in progress 830,210 199,125 - 1,029,335
1 Total capital assets 5,372,699 558,214 1,525 5,929,388
Accumulated Depreciation:
Land and betterments 82,681 22,199 - 104,880
Buildings and improvements 1,075,165 49,907 - 1,125,072
Machinery and equipment 88,375 11,515 1,525 98,365
Total accumulated depreciation 1,246,221 83,621 1,525 1,328,317
Net capital assets $4,126,478 $ 474,593 $ - $4,601,071
86
i
EXHIBIT H-12
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/01/2004 Additions Deletions 09/30/2005
Capital Assets:
Land and betterments $ 24,088,689 $ - $ - $ 24,088,689
Buildings, systems and
improvements 141,351,616 4,386,318 39,000 145,698,934
Machinery and equipment 3,995,840 319,931 1,536 4,314,235
Furniture and fixtures 1,164 - - 1,164
Motor vehicles 1,235 - - 1,235
Construction in progress 19,019,033 31,743,356 3,134,643 47,627,746
Total capital assets 188,457,577 36,449,605 3,175,179 221,732,003
Accumulated Depreciation:
Land and betterments 8,117,296 243,632 - 8,360,928
Buildings, systems and
improvements 58,155,860 2,640,074 53,407 60,742,527
Machinery and equipment 2,816,728 149,962 1,538 2,965,152
Furniture and fixtures 901 59 - 960
Motor vehicles 1,235 - - 1,235
Total accumulated depreciation 69,092,020 3,033,727 54,945 72,070,802
Net capital assets $119,365,557 $ 33,415,878 $ 3,120,234 $149,661,201
87
EXHIBIT H-13
CITY OF WICHITA FALLS, TEXAS
FLEET MAINTENANCE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/01/2004 Additions Deletions 09/30/2005
Capital Assets:
Land and betterments $ 433,658 $ - $ - $ 433,658
Buildings and improvements 4,010,098 - - 4,010,098
Furniture and equipment 6,358 - - 6,358
Motor vehicles and equipment 34,381,839 2,266,656 1,015,311 35,633,184
Construction in progress 6,706 - - 6,706
Total capital assets 38,838,659 2,266,656 1,015,311 40,090,004
Accumulated Depreciation:
Buildings and improvements 1,491,641 80,179 - 1,571,820
Furniture and fixtures 6,357 - - 6,357
Motor vehicles and equipment 23,215,189 2,787,620 996,403 25,006,406
Total accumulated depreciation 24,713,187 2,867,799 996,403 26,584,583
Net capital assets $ 14,125,472 $ (601,143) $ 18,908 $ 13,505,421
88
1
EXHIBIT H-14
CITY OF WICHITA FALLS, TEXAS
DUPLICATING SERVICES FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/01/2004 Additions Deletions 09/30/2005
Capital Assets:
Machinery and equipment $ 126,395 $ - $ - $ 126,395
Accumulated Depreciation:
Machinery and equipment 35,103 11,443 - 46,546
Net capital assets $ 91,292 $ (11,443) $ - $ 79,849
89
EXHIBIT H-15
CITY OF WICHITA FALLS, TEXAS
EMPLOYEE BENEFIT TRUST FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/01/2004 Additions Deletions 09/30/2005
Capital Assets:
Machinery and equipment $ 3,693 $ - $ - $ 3,693
Accumulated Depreciation:
Machinery and equipment 763 601 - 1,364
Net capital assets $ 2,930 $ (601) $ - $ 2,329
90
EXHIBIT H-16
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
CAPITAL ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Balance Balance
10/01/2004 Additions Deletions 09/30/2005
Capital Assets:
Land and betterments $ 1,229,679 $ - $ - $ 1,229,679
91
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l
CITY OF WICHITA FALLS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (GENERAL FUND ONLY) -
LAST TEN FISCAL YEARS (UNAUDITED)
Fiscal Administrative Parks and Accounting Community
Year Services Police Fire Recreation and Finance Development
1995-1996 $ 6,764,670 $ 11,067,074 $ 6,752,959 $ 2,890,848 $ 282,522 $ 501,149
1996-1997 10,030,518 11,635,291 6,979,178 2,689,630 283,958 549,654
1997-1998 * 5,675,204 11,445,357 7,567,904 2,947,658 1,141,181 990,993
1998-1999 6,315,733 12,010,858 7,881,632 2,896,955 1,300,773 1,048,202
1999-2000 6,980,200 13,159,401 8,367,462 3,072,384 1,331,432 1,058,585
2000-2001 7,263,876 13,293,997 8,412,257 3,059,595 1,489,661 1,102,205
2001-2002 7,619,095 14,050,692 9,028,643 3,289,405 1,702,554 1,102,996
2002-2003 8,591,274 14,764,510 9,444,152 3,397,352 1,604,484 1,247,973
2003-2004 8,927,792 15,213,234 9,820,265 3,493,846 1,757,006 1,289,868
2004-2005 8,190,824 15,975,510 10,177,506 3,721,527 1,754,186 1,360,521
* Effective October 1, 1997,the City significantly modified its accounting system and functional reporting. Consequently,there are
some differences in reporting of expenditures by function between years,
•
92
EXHIBIT I-1
Debt Service
Interest
Public Traffic and Capital Principal and Paying
Works Health Transportation Outlay Retirement Agent Fees Totals
$ 4,790,242 $ 3,189,847 $ 1,422,119 $ - $ - $ - $ 37,661,430
4,576,974 3,396,582 1,449,844 - - - 41,591,629
5,709,866 2,203,927 1,487,177 1,773,519 2,149 558 40,945,493
4,814,939 2,341,125 1,561,804 299,312 2,350 357 40,474,040
5,799,148 2,050,913 1,553,984 144,788 2,677 134 43,521,108
4,408,476 2,080,081 1,707,211 1,365,232 - - 44,182,591
4,900,411 2,223,359 1,986,855 352,733 - - 46,256,743
4,467,697 2,360,222 1,534,507 1,238,062 - - 48,650,233
4,206,587 2,358,905 1,621,576 2,719,510 - - 51,408,589
4,481,391 2,523,824 1,729,519 2,471,674 - - 52,386,482
CITY OF WICHITA FALLS, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE (GENERAL FUND ONLY) -
LAST TEN FISCAL YEARS (UNAUDITED)
Fiscal Charges Licenses Fines and
Year Taxes for Services and Permits Forfeitures
1995-1996 $30,140,802 $ 1,394,190 $ 684,633 $1,262,361
1996-1997 31,487,703 1,338,867 673,422 1,495,921
1997-1998 * 32,544,840 2,077,990 435,572 1,486,985
1998-1999 34,009,242 2,279,994 535,989 1,187,927
1999-2000 36,460,971 1,733,552 660,715 1,417,891
2000-2001 36,944,112 1,783,301 1,892,099 1,259,742
2001-2002 38,462,368 2,007,218 1,918,690 1,598,751
2002-2003 41,160,049 2,155,570 2,001,117 1,569,135
2003-2004 41,998,979 2,270,842 2,292,695 2,019,219
2004-2005 43,829,551 2,268,182 2,2 18,119 2,010,143
* Effective October 1, 1997, the City significantly modified its accounting system and functional
reporting. Consequently, there are some differences in reporting of revenues between years.
93
EXHIBIT I-2
Intergovernmental Miscellaneous
Revenue Contributions Revenue Totals
$ 2,540,646 $ - $ 1,195,670 $37,218,302
2,540,616 - 1,431,250 38,967,779
67,290 - 1,570,592 38,183,269
61,782 12,155 1,533,500 39,620,589
46,985 - 1,508,539 41,828,653
33,319 32,901 1,463,780 43,409,254
85,499 62,575 823,898 44,958,999
81,979 711,862 789,850 48,469,562
53,711 880,852 900,581 50,416,879
93,228 1,176,107 1,058,844 52,654,174
CITY OF WICHITA FALLS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS -
LAST TEN FISCAL YEARS (UNAUDITED)
Percent of Delinquent
Fiscal Total Current Tax Current Taxes Tax
Year Tax Levy Collections Collected Collections
1995-1996 $ 16,742,241 $ 16,407,759 98.00% $ 326,841
1996-1997 17,482,018 16,936,754 97.00% 426,840
1997-1998 13,848,037 13,376,885 96.59% 536,999
1998-1999 14,526,149 13,952,221 96.05% 388,755
1999-2000 16,115,557 15,690,461 97.36% 472,161
2000-2001 16,791,261 16,365,706 97.47% 121,858
2001-2002 17,635,425 17,210,516 97.59% 297,405
2002-2003 19,439,511 18,962,880 97.55% 331,023
2003-2004 20,039,039 19,646,529 98.04% 292,930
2004-2005 20,919,473 20,494,272 97.97% 334,010
94
EXHIBIT 1-3
Ratio of Ratio of
Total Tax Outstanding Delinquent
Total Tax Collections to Delinquent Taxes to
Collections Total Tax Levy Taxes Total Tax Levy,
$ 16,734,600 99.95% $ 1,646,500 9.83%
17,363,594 99.32% 1,704,839 9.75%
13,913,884 100.47% 1,600,924 11.56%
14,340,976 98.73% 1,588,798 10.94%
16,162,622 100.29% 1,551,462 9.63%
16,487,564 98.19% 1,577,119 9.39%
17,507,921 99.28% 1,560,565 8.85%
19,293,903 99.25% 1,585,821 8.16%
19,939,459 99.50% 1,597,581 7.97%
20,828,282 99.56% 1,601,801 7.66%
CITY OF WICHITA FALLS, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY -
LAST TEN FISCAL YEARS (UNAUDITED)
Real Property Personal Property
Fiscal Assessed Estimated Assessed Estimated
Year Value Actual Value Value Actual Value
1995-1996 $ 1,979,667,520 $ 1,979,667,520 $494,250,305 $494,250,305
1996-1997 2,053,175,337 2,053,175,337 530,055,655 530,055,655
1997-1998 2,145,423,750 2,145,423,750 554,851,453 554,851,453
1998-1999 2,237,301,030 2,237,301,030 595,201,382 595,201,382
1999-2000 2,448,370,999 2,448,370,999 605,524,662 605,524,662
2000-2001 2,550,564,079 2,550,564,079 622,493,821 622,493,821
2001-2002 2,671,429,859 2,671,429,859 667,334,298 667,334,298
2002-2003 2,775,175,780 2,775,175,780 652,625,915 652,625,915
2003-2004 2,901,708,013 2,901,708,013 629,284,576 629,284,576
2004-2005 3,047,463,928 3,047,463,928 632,056,253 632,056,253
95
EXHIBIT 1-4
I
I
Ratio of Total
Total Assessed to
Assessed Estimated Total Estimated
Value Actual Value Actual Value
$2,473,917,825 $ 2,473,917,825 100.00%
2,583,230,992 2,583,230,992 100.00%
2,700,275,203 2,700,275,203 100.00%
2,832,502,412 2,832,502,412 100.00%
3,053,895,661 3,053,895,661 100.00
3,173,057,900 3,173,057,900 100.00%
3,338,764,157 3,338,764,157 100.00%
3,427,801,695 3,427,801,695 100.00%
3,530,992,589 3,530,992,589 100.00%
3,679,520,181 3,679,520,181 100.00%
I
CITY OF WICHITA FALLS, TEXAS
PROPERTY TAX RATES AND TAX LEVIES - DIRECT AND OVERLAPPING GOVERNMENTS -
LAST TEN FISCAL YEARS (UNAUDITED)
Fiscal City of Wichita Burkburnett City View
Year Wichita Falls County I.S.D. (1) I.S.D. (2)
Tax Rates Per$100 Valuation
1995-1996 $ 0.67 $ 0.37 $ 1.24 $ 1.23
1996-1997 0.67 0.37 1.25 1.26
1997-1998 0.51 0.38 1.30 1.34
1998-1999 0.51 0.38 1.49 1.41
1999-2000 0.55 0.38 1.49 1.60
2000-2001 0.55 0.40 1.59 1.69
2001-2002 0.55 0.40 1.61 1.69
2002-2003 0.59 0.42 1.63 1.69
2003-2004 0.59 0.45 1.64 1.69
2004-2005 0.59 0.46 1.64 1.73
Tax Levies
1995-1996 $ 16,742,241 $ 13,058,786 $ 5,993,746 $1,151,028
1996-1997 17,482,018 13,681,903 6,364,575 1,232,641
1997-1998 13,848,037 14,643,356 6,426,976 1,325,139
1998-1999 14,526,149 15,177,829 7,104,951 1,448,831
1999-2000 16,115,557 15,523,632 7,087,371 1,549,000
2000-2001 16,791,261 16,815,629 7,816,180 1,772,270
2001-2002 17,635,425 17,606,303 8,226,508 2,069,834
2002-2003 19,439,511 19,175,217 8,300,614 2,347,083
2003-2004 20,039,039 20,916,183 8,609,427 2,363,245
2004-2005 20,919,473 22,434,432 8,931,106 2,549,108
Notes:
(1) Burkburnett Independent School District-25% in Wichita Falls city limits
(2) City View Independent School District- 90% in Wichita Falls city limits for 1997-98 and after
and 84% in 1996-97 and prior
(3) Iowa Park Consolidated Independent School District-2% in Wichita Falls city limits. Only for
1997-98 and after due to City annexation.
(4) Wichita Falls Independent School District- 99% in Wichita Falls city limits
96
EXHIBIT 1-5
Iowa Park Wichita Fails
C.I.S.D. (3) I.S.D. (4) Totals
$ - $ 1.34 $ 4.85
- 1.38 4.93
1.25 1.46 6.24
1.30 1.50 6.59
1.24 1.50 6.76
1.40 1.54 7.17
1.40 1.54 7.19
1.61 1.56 7.50
1.58 1.56 7.51
1.58 1.56 7.56
$ - $31,977,379 $ 68,923,180
-
34,453,561 73,214,698
3,755,263 37,270,618 77,269,389
4,308,152 38,641,115 81,207,027
4,936,005 39,842,969 85,054,534
5,041,838 42,992,685 91,229,863
5,212,807 45,115,529 95,866,406
5,741,673 46,307,125 101,311,223
5,858,137 47,536,033 105,322,064
6,091,372 50,053,581 110,979,072
EXHIBIT 1-6
CITY OF WICHITA FALLS, TEXAS
TEN LARGEST TAXPAYERS (UNAUDITED)
SEPTEMBER 30, 2005
Percentage
January 1, 2005 of Total
Assessed Assessed
Taxpayer Type of Business Valuation Valuation
Sikes Coyote Mall LP Shopping Center $ 53,365,018 1.45%
Texas Utilities/Oncor Electric Utility 44,679,932 1.21%
Wal-Mart Retail Store 34,439,397 0.94%
Southwestern Bell Telephone Utility 32,309,153 0.88%
Clinics of North Texas Medical Center 15,825,801 0.43%
Home Depot USA Inc Retail Store 12,951,193 0.35%
Lowe's Home Improvement Center Retail Store 12,907,926 0.35%
Time Warner Cable Television 12,801,498 0.35%
Southwestern Bell dba Cingular Customer Service 12,630,912 0.34%
Kell West Regional Hospital Medical Center 11,903,053 0.32%
Totals $ 243,813,883 6.63%
97
EXHIBIT I-7
CITY OF WICHITA FALLS, TEXAS
SPECIAL ASSESSMENT COLLECTIONS
(CAPITAL IMPROVEMENT ASSESSMENTS FUND) -
LAST TEN FISCAL YEARS (UNAUDITED)
Special Special Ratio of
Fiscal Assessments Assessments Collections
Year Due Collected to Amount Due
1995-1996 $ 158,976 $ 1,222 0.77%
1996-1997 158,106 1,200 0.76%
1997-1998 157,580 526 0.33%
1998-1999 * - - -
1999-2000 * - - -
2000-2001 * - - -
2001-2002 * - - -
2002-2003 * - - -
2003-2004 * - - -
2004-2005 * - - -
*-The City wrote off the balance of the Special Assessments due the City during the year
ended September 30, 1999 and no longer records the receivable balance.
98
Wichit a '
XAS\
EXHIBIT I-8
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED)
SEPTEMBER 30, 2005
Total assessed property value per 2004 tax roll $ 3,679,520,181
Maximum tax rate * $ 2.25/$100
Current tax rate for 2004 tax year .59246/$100
Maximum tax rate in excess of 2004 tax rate 1.65754/$100
Total legal debt margin $ 60,989,519
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 2004 tax rate is $.59246
per$100 assessed valuation.
* Maximum tax levy established by City Charter
99
CITY OF WICHITA FALLS, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET
GENERAL BONDED DEBT PER CAPITA- LAST TEN FISCAL YEARS (UNAUDITED)
Gross Less Debt
Fiscal Estimated Assessed General Service
Year Population (1) Value Bonded Debt Funds
1995-1996 $ 102,790 $2,473,917,825 $ 19,555,000 $ 996,075
1996-1997 103,312 2,583,230,992 18,320,000 1,511,795
1997-1998 104,121 2,700,275,203 16,850,000 1,560,640
1998-1999 106,000 2,832,502,412 15,315,000 1,578,437
1999-2000 107,178 3,053,895,661 13,705,000 1,585,571
2000-2001 104,197 3,173,057,900 19,215,000 195,773
2001-2002 104,544 3,338,764,157 17,410,000 270,530
2002-2003 104,712 3,427,801,695 15,290,000 597,966
2003-2004 104,823 3,530,992,589 19,870,000 972,900
2004-2005 106,876 3,530,951,344 16,820,000 1,149,888
Sources:
(1) City of Wichita Falls Planning Department for all years, except 2000-01 from U.S. Bureau
of Census.
100
EXHIBIT I-9
Ratio of
Net General
Bonded Debt Net General
Net General To Assessed Bonded Debt
Bonded Debt Value Per Capita
$18,558,925 0.75% 181
16,808,205 0.65% 163
15,289,360 0.57% 147
13,736,563 0.48% 130
12,119,429 0.40% 113
19,019,227 0.60% 183
17,139,470 0.51% 164
14,692,034 0.43% 140
18,897,100 0.54% 180
' 15,670,112 0.44% 147
EXHIBIT 1-10
CITY OF WICHITA FALLS, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO
TOTAL GENERAL GOVERNMENTAL EXPENDITURES - LAST TEN FISCAL YEARS (UNAUDITED)
Total Ratio of
Interest and General Debt Service
Fiscal Paying Total Debt Governmental to General
Year Principal Agent Fees Service Expenditures Expenditures
1995-1996 $ 1,190,000 $ 1,334,768 $ 2,524,768 $ 37,661,430 6.70%
1996-1997 1,235,000 1,090,448 2,325,448 41,591,629 5.59%
1997-1998 1,470,000 934,270 2,404,270 40,945,493 5.87%
1998-1999 1,535,000 868,315 2,403,315 40,474,040 5.94%
1999-2000 1,610,000 796,975 2,406,975 43,521,108 5.53%
2000-2001 1,690,000 823,768 2,513,768 44,182,591 5.69%
2001-2002 1,805,000 1,143,555 2,948,555 46,256,743 6.37%
2002-2003 2,120,000 854,457 2,974,457 48,650,233 6.11%
2003-2004 2,970,000 900,526 3,870,526 51,408,589 7.53%
2004-2005 3,050,000 800,386 3,850,386 52,654,174 7.31%
101
EXHIBIT I-11
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING GENERAL BONDED DEBT(UNAUDITED)
SEPTEMBER 30, 2005
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 $ 16,820,000 100% $ 16,820,000
Overlapping:
Wichita County 4,840,000 100°/a 4,840,000
Burkburnett Independent School District 16,742,469 25% 4,185,617
City View Independent School District 10,404,272 90% 9,363,845
Iowa Park Consolidated Independent
School District 5,372,491 2% 107,450
Wichita Falls Independent School District 29,458,247 99% 29,163,665
Total overlapping 66,817,479 47,660,576
Total direct and overlapping bonded debt $ 83,637,479 $ 64,480,576
Sources:
(1) Listed taxing jurisdictions
(2) City of Wichita Falls Planning Department
102
CITY OF WICHITA FALLS, TEXAS
REVENUE BOND 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
1995-1996 $ 19,939,255 $ 11,684,476 $ 8,254,779
1996-1997 19,578,557 12,352,266 7,226,291
1997-1998 21,050,438 12,868,869 8,181,569
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 32,931,211 15,693,788 17,237,423
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.
103
EXHIBIT I-12
Debt Service Requirement
Principal (3) Interest Total Coverage
$1,405,000 $ 2,450,529 $ 3,855,529 2.14
1,605,000 2,740,348 4,345,348 1.66
1,855,000 2,674,570 4,529,570 1.81
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 1.38
EXHIBIT 1-13
CITY OF WICHITA FALLS, TEXAS
DEMOGRAPHIC STATISTICS -
LAST TEN FISCAL YEARS (UNAUDITED)
Median
Fiscal Estimated Household Education School Unemployment
Year Population (1) Income (2) Level (3) Enrollment(3) Rate (4)
1995-1996 102,790 $ 30,142 13.1 15,805 5.1%
1996-1997 103,312 31,148 13.1 16,606 4.3%
1997-1998 104,121 31,165 13.1 16,382 4.4%
1998-1999 106,000 34,342 13.1 14,780 4.7%
1999-2000 107,178 35,029 13.1 14,084 4.4%
2000-2001 104,197 35,961 13.1 13,896 3.9%
2001-2002 104,544 36,824 13.1 14,059 6.3%
2002-2003 104,712 37,523 13.1 13,765 5.5%
2003-2004 104,823 38,799 13.1 13,857 3.6%
2004-2005 106,876 40,118 13.1 13,755 4.8%
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 for all years, except 1994-95 and prior from Sales & Marketing
Management
(3) Wichita Falls I.S.D. - Educational level is grade equivalent of graduating senior
(4) Texas Workforce Commission
104
EXHIBIT 1-14
CITY OF WICHITA FALLS, TEXAS
PROPERTY VALUE, BUILDING PERMITS AND BANK DEPOSITS -
LAST TEN FISCAL YEARS (UNAUDITED)
Fiscal Property Building Bank
Year Value (1) Permits (2) Deposits*
1995-1996 $2,589,218,286 $ 92,604,277 Not Available
1996-1997 2,707,854,487 89,861,493 Not Available
1997-1998 2,827,444,408 80,401,597 Not Available
1998-1999 2,889,152,460 102,641,877 Not Available
1999-2000 3,053,895,661 98,144,551 Not Available
2000-2001 3,173,057,900 102,578,860 Not Available
2001-2002 3,338,764,157 112,934,860 Not Available
2002-2003 3,427,801,695 107,379,873 Not Available
2003-2004 3,530,992,589 190,950,073 Not Available
2004-2005 3,530,951,344 151,139,684 Not Available
Sources:
(1) City of Wichita Falls Accounting/Finance Department
(2) City of Wichita Falls Planning Department
* Local branches of Bank One, Bank of America, and Wells Fargo are not required, nor have
they chosen, to release deposit information on individual branches. Therefore, total bank
deposit information is not available for these years.
105
EXHIBIT 1-15
CITY OF WICHITA FALLS, TEXAS
MISCELLANEOUS STATISTICAL DATA(UNAUDITED)
SEPTEMBER 30, 2005
Date of incorporation 1889
Form of government Council - Manager
Area 71 square miles
Miles of streets 585
Number of street lights 6,500
Fire protection:
Number of stations 8
Number of firemen and officers 148
Police protection:
Number of stations 1
Number of police officers 189
Municipal water department:
Number of consumers - active 35,462
Average daily production 22,100,000 gallons treated water
Miles of water mains 565.7
Sewers:
Number of customers -active 31,517
Miles of sanitary sewers 529
Miles of storm sewers (enclosed) 96.2
Building permits issued:
Number issued 8,904
Amount issued $151,139,684
Recreation and culture:
Number of parks 40 with 1,200 acres
Number of golf courses 4
Number of libraries 1
Number of volumes (books) 210,976
Employees-full-time 1,100
106
EXHIBIT I-16
(Page 1 of 5)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED)
SEPTEMBER 30, 2005
Insurance
Code
A Policy: Building and Contents
Company: Williams-Dwyer Co.
Policy Period: October 1, 2004 to October 1, 2005
Perils: Fire, Extended Coverage, Vandalism and Malicious Mischief,
including Difference in Condition, Extra Expense, Valuable
Papers, EDP, Demolition/CC
Coverages: $94,766,727 Building and Contents
$100,000 Extra Expense
Deductible: $100,000
Coinsurance: Agreed Value, Replacement Cost
Premium: $118,167
B Policy: Boiler and Machinery
Company: Williams-Dwyer Co.
Policy Period: October 1, 2004 to October 1, 2005
Perils: Comprehensive Blanket
Coverage: $5,000,000 Per Occurrence
Deductible: $5,000
Coinsurance: N/A
Premium: (Inciuded in Building and Contents Premium)
C Policy: Electronic Data Processing Equipment
Company: Williams-Dwyer Co.
Policy Period: October 1, 2004 to October 1, 2005
Perils: All Risks
Coverage: $2,611,133
Deductible: $10,000
Coinsurance: 100%
Premium: (Included in Building and Contents Premium)
D Policy: Airport Liability (Municipal Airport)
Company: Marsh Aviation, Old Republic Ins. Co.
Policy Period: March 17, 2005 to March 17, 2006
Perils: Owner's, Landlord, and Tenants Liability
Coverage: $1,000,000 Bodily Injury and Property
Damage Liability, each occurrence
$1,000,000 Malpractice, annual aggregate
$100,000, Any One Fire
Deductible: $1,000 each occurrence
$10,000 annual aggregate
Coinsurance: N/A
Premium: $4,880
107
EXHIBIT 1-16
(Page 2 of 5)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.)
SEPTEMBER 30, 2005
Insurance
Code
E Policy: Airport Liability (Kickapoo Downtown Airpark)
Company: Marsh Aviation, Old Republic Ins. Co.
Policy Period: March 17, 2005 to March 17, 2006
Perils: Owner's, Landlord, and Tenants Liability
Coverage: $1,000,000 Bodily Injury and Property
Damage Liability
$1,000,000 annual aggregate, Products, Completed
$1,000,000 Malpractice, annual aggregate
$100,000 Fire Damage, any one fire
$500,000 Hangarkeepers, any one aircraft
$1,000,000 Hangarkeepers, any one occurrence
Deductible: $5,000 any one aircraft
$5,000 any one occurrence
$5,000 all other coverage; each occurrence or offense
Coinsurance: N/A
Premium: $14,565
F Policy: Public Official Bond
Company: Merchants Bonding Co.
Bond No.: TX634601
Bond Period: October 11, 2005 to October 11, 2006
Insured: City Manager- Darron Leiker
Coverage: $25,000
Premium: $88
G Policy: Public Official Bond
Company: Colonial American Cas & Surety Co.
Bond No.: 30237391T
Bond Period: August 1, 2005 to August 1, 2006
Insured: Purchasing Agent- Margaret Elizabeth (Peggy) Gahagan
Coverage: $2,500
Premium: $100
H Policy: Blanket Employees' Dishonesty -Theft, Disappearance
Coverage
Company: Fidelity & Deposit Company
Bond No. CCP 0025094 09
Bond Period: January 15, 2005 to January 15, 2006
Insured: Public Employee Blanket-Water Office Manager
Coverages: $15,000 Water Office Manager
$10,000 Inside/Outside Premises
Premium: $2,410
108
EXHIBIT 1-16
(Page 3 of 5)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.)
SEPTEMBER 30, 2005
Insurance
Code
Policy: Public Official Bond
Company: Fidelity & Deposit Company
Bond No.: FD 30523655
Bond Period: October 1, 2004 to October 1, 2007
Insured: City Clerk - Lydia Torres
Coverage: $25,000
Premium: $100
J Policy: Public Official Bond
Company: Travelers
Bond No.: S103981842
Bond Period: August 31, 2005 to August 31, 2006
Insured: Director of Public Works- Scott Taylor
Coverage: $2,500
Premium: $100
K Policy: Public Official Bond
Company: Aetna Insurance Company
Bond No.: S 100841241
Bond Period: August 24, 2005 to August 24, 2006
Insured: Municipal Court Administrator-Judith Elaine Bourgoin
Coverage: $2,500
Premium: $100
L Policy: Public Official Bond
Company: Travelers
Bond No.: 101131742
Bond Period: February 15, 2005 to February 15, 2006
Insured: Director of Finance-Jim Dockery
Coverage: $25,000
Premium: $125
M Policy: Public Official Bond
Company: Travelers
Bond No.: 100648903
Bond Period: May 21, 2005 to May 21, 2006
Insured: Municipal Court Judge- Larry Gillen
Coverage: $2,500
Premium: $175
109
EXHIBIT I-16
(Page 4 of 5)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.)
SEPTEMBER 30, 2005
Insurance
Code
N Policy: Public Official Bond
Company: Travelers
Bond No.: 104583629
Bond Period: June 4, 2005 to June 4, 2006
Insured: MPEC Director- Robert Sullivan
Coverage: $25,000
Premium: $100
O Policy: Health Insurance
Company: J. Allan Hall &Associates, Inc.
Policy No.: City of Wichita Falls Employee Benefits Trust
Policy Period: December 1, 2004 through November 30, 2005
Perils: Illness and Accidental Injury(Non-work Related)
Coverage: $1,000,000 Lifetime Maximum
Deductible: Various Amounts Depending on Plan Option Chosen
by Employee
Coinsurance: Coinsurance coverage begins when a limit of 20% or 30%
reaches $3,500, $5,000, $10,000 or$15,000 yearly, then
insurance company pays 100% of eligible expenses.
Premium: $245,713
P Policy: Dental Insurance
Company: J. Allan Hall &Associates, Inc.
Policy No.: City of Wichita Falls Employee Benefits Trust
Policy Period: December 1, 2004 through November 30, 2005
Perils: Basic Dental Coverage with Orthodontics for Children Under 19
Coverages: $1,000 Annual Maximum - Basic Coverage
$1,000 Lifetime Maximum -Orthodontics
Deductible: Basic Coverage-$100 Annually Per Person (Maximum 3
Family Members); No Deductible for Orthodontics
Coinsurance: 80-20 Basic, 50-50 Orthodontics, 50-50 Periodontics
Premium: (Included in Health Premium)
Q Policy: Life Insurance
Company: TMRS
Policy No.: Not Applicable
Policy Period: October 1, 2004 through September 30, 2005
Perils: Death and Dismemberment Benefits
Deductible: N/A
Premium: One Times Employee's Annual Salary
110
EXHIBIT I-16
(Page 5 of 5)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.)
SEPTEMBER 30, 2005
Insurance
Code
R Policy: Life Insurance (Directors Only)
Company: Pilot Life Insurance Company
Policy No.: 0548 (Group#1)
Policy Period: January 1, 2005 to December 31, 2005
Perils: Death and Dismemberment Benefits
Coverage: $25,000
Deductible:
Premium: Annual Estimate$338
111
Wichita
„Ll
EXHIBIT J-1
CITY OF WICHITA FALLS TEXAS
CASH AND INVESTMENTS
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2003
September 30, 2004
2005
(UNAUDITED)
112
EXHIBIT J-2
CITY OF WICHITA FALLS , TEXAS
TOTAL BONDS PAYABLE
200 /
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EXHIBIT J-3
CITY OF WICHITA FALLS , TEXAS
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114
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CITY OF WICHITA FALLS , TEXAS
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200
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115
EXHIBIT J-5
CITY OF WICHITA FALLS , TEXAS
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CITY OF WICHITA FALLS , TEXAS
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EXHIBIT J-8
CITY OF WICHITA FALLS, TEXAS
EXPENDITURES BY FUNCTION - FYE 9/30/05
Administrative Services Police
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Nil OM
EXHIBIT J-9
CITY OF WICHITA FALLS, TEXAS
GENERAL GOVERNMENTAL REVENUES (GENERAL FUND ONLY)
55
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(UNAUDITED)
120
EXHIBIT J-l0
CITY OF WICHITA FALLS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES (GENERAL FUND ONLY)
55 —�
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1996 +- •;+.y4*+++.+;+4:++ *4.4.4*+*4*+++.*. ;#4*4.4.4.4.4.4.4.4.4; 4#4#4*4*4*i+#4*#*#*+ *#444*444*4*4*4v*4i *4*4*4*4*4*4*4*4*4*4*:
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1998 ;.+.{ �yiy4y;y+y;y4y+y+y+y., 44y4y4y+y+y+y+y4y4y4y{ 4y+y4y4y4y4y4y4y4y4y., ;+4##*+*+*4#4*+*+*4#4,
1999 4444+#**#.
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2000 +##++**4##{ +#444######
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Years Ended September 30, 2003 2004
2005
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