2004 Comprehensive Annual Financial Report Comprehensive
Annual
Financial Report
City of
Wichita Falls,
Texas
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For Year Ended
September 30, 2004
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2004
ISSUED BY:
DEPARTMENT OF FINANCE
Wichita
4,t.,
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2004
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal i-vii
GFOA Certificate of Achievement viii
Organizational Chart ix
List of Principal Officials
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 30,2004
TABLE OF CONTENTS (CONT'D.I
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 74-78
Debt Service Coverage—Revenue Bonds H-3 79
Capital Assets Used in the Operation of Governmental
Funds—Schedule By Function and Activity H-4 80
Capital Assets Used in the Operation of Governmental
Funds—Schedule of Changes By Function and Activity H-5 81
Golf Fund—Capital Assets and Accumulated Depreciation H-6 82
Municipal Airport Fund—Capital Assets and Accumulated Depreciation H-7 83
Kickapoo Airport Fund—Capital Assets and Accumulated Depreciation H-8 84
Transit Fund—Capital Assets and Accumulated Depreciation H-9 85
Stormwater Drainage Fund -Capital Assets and Accumulated Depreciation H-10 86
Sanitation Fund—Capital Assets and Accumulated Depreciation H-11 87
Water and Sewer Fund—Capital Assets and Accumulated Depreciation H-12 88
Fleet Maintenance Fund—Capital Assets and Accumulated Depreciation H-13 89
Duplicating Services Fund—Capital Assets and Accumulated Depreciation H-14 90
Employee Benefit Trust Fund—Capital Assets and Accumulated Depreciation H-15 91
Wichita Falls Economic Development Corporation—Capital Assets H-16 92
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2004
TABLE OF CONTENTS (CONT'D.)
Exhibit Page
STATISTICAL SECTION (UNAUDITED)
General Governmental Expenditures by Function (General Fund
Only)—Last Ten Fiscal Years I-1 93
General Governmental Revenues by Source (General Fund Only)—
Last Ten Fiscal Years 1-2 94
Property Tax Levies and Collections—Last Ten Fiscal Years 1-3 95
Assessed and Estimated Actual Value of Taxable Property—
Last Ten Fiscal Years 1-4 96
Property Tax Rates and Tax Levies—Direct and Overlapping
Governments—Last Ten Fiscal Years 1-5 97
Ten Largest Taxpayers 1-6 98
Special Assessment Collections (Capital Improvement
Assessments Fund)—Last Ten Fiscal Years 1-7 99
Computation of Legal Debt Margin 1-8 100
Ratio of Net General Bonded Debt to Assessed Value and
Net General Bonded Debt Per Capita— Last Ten Fiscal Years 1-9 101
Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Governmental Expenditures—Last Ten
Fiscal Years 1-10 102
Computation of Direct and Overlapping General Bonded Debt I-11 103
Revenue Bond Coverage—Water and Sewer Revenue Bonds—
Last Ten Fiscal Years 1-12 104
Demographic Statistics—Last Ten Fiscal Years 1-13 105
Property Value, Building Permits and Bank Deposits—Last Ten
Fiscal Years 1-14 106
Miscellaneous Statistical Data 1-15 107
Schedule of Insurance Coverage 1-16 108-112
Graphics:
Cash and Investments J-1 113
Total Bonds Payable J-2 114
General Obligation Bonds Payable J-3 115
Revenue Bonds Payable J-4 116
General Fund Equity J-5 117
Comparison of Tax Levy and Collections J-6 118
Revenues By Source—FYE 9/30/04 J-7 119
Expenditures By Function—FYE 9/30/04 J-8 120
General Governmental Revenues (General Fund Only) J-9 121
General Governmental Expenditures (General Fund Only) J-10 122
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INTRODUCTORY SECTION
Wichita ,
TEXAS ti.
March 11, 2005
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, 2004. The purpose of this report is to
provide the City Council, City Manager, citizens and other interested parties with detailed information
concerning the financial condition of the City of Wichita Falls. In addition, this report provides
assurance that the City presents fairly its financial position as verified by independent auditors.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
The CAFR of the City of Wichita Falls, Texas, for the year ended September 30, 2004, was prepared
in accordance with accounting principles as promulgated by the Governmental Accounting Standards
Board (GASB). The financial statements and related notes have been audited by the independent
audit firm of Mathis, West, Huffines& Co., 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
financial position and results of operation of the City as measured by the financial activity of its
various funds; and that all disclosures necessary to enable the reader to gain understanding of the
City's financial activities have been included.
The CAFR continues for the second consecutive year to present financial data using the reporting
model promulgated by GASB Statement No. 34. This new reporting model changed governmental
financial reporting by incorporating government-wide financial statements. The Finance Department
believes that this presentation provides better information to users of the report, and it requires
management to provide a narrative introduction, overview and analysis to accompany the basic
financial statements in the form of a Management's Discussion and Analysis (MD&A). The MD&A
can be found immediately following the independent auditors' report and is designed to complement
this transmittal letter and should be read in conjunction with it.
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, financial statements and related notes, required supplementary
information, and combining fund financial statements and schedules. The statistical section includes
selected financial and demographic information, generally presented on a multi-year basis.
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 2004 population for
Wichita Falls is estimated at 104,823, an increase of .60% over the 2000 Census estimates, and an
increase of 8.90%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 2004, the city experienced moderate industrial development activity. The City continued to
develop a new industrial business park in the southeastern portion of the city, which is designed to
attract major industries to Wichita Falls. Approximately $1.3 million of 4A Economic Development
Sales Tax Funds were expended in the 2002-03 fiscalyear for th
e initial land acquisition. During
2003-04, an additional $2.2 million in 4A Sales Tax Funds were earmarked for the development of
streets, water and sewer lines, and landscaping. The City and Board of Commerce and Industry were
also instrumentally involved in encouraging major operational expansions of PPG Industries, Sharp
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Iron, Cingular Wireless, and Wichita Clutch facilities. These operational expansions are expected to
result in significant capital investment and the creation of over 200 new jobs in the community.
Residential and commercial construction activity continued to remain strong. The total value of new
residential construction permits for the 2003-04 fiscal year was $57,201,191, which is an increase of
$5,048,833, or 9.68% over the prior year. Commercial real estate transactions and new construction
over the last year have also been extremely healthy. The value of building permits for commercial
construction and expansion totaled $99,236,618, an increase of 80.85% from the prior year. The
following entities announced expansion, new construction or consolidations in excess of$1,000,000
in value during the 2003-04 fiscal year:
• Jasper Water Plant. A total of 13,653 sq. ft. new construction and renovation with an
estimated cost of$40,000,000.
• First Baptist Church. A total of 71,291 sq. ft. addition with an estimated cost of$14,500,000.
• Sams Club. A total of 26,786 sq. ft. addition with an estimated cost of$4,712,997.
• Cinemark Theater. A total of 50,702 sq. ft. new construction with an estimated cost of
$4,500,000.
• Hampton Inn. A total of 44,879 sq. ft. new construction with an estimated cost of
$4,500,000.
• Homewood Suites. A total of 67,620 sq. ft. construction with an estimated value of
$4,100,000.
• Cast-Away Cove Water Park.A total of 8,651 sq. ft. new construction with an estimated cost
of$3,610,000.
• Cypress Water Plant Membrane. A total of 21,643 sq. ft. new construction with an estimated
value of$1,737,000.
• Endoscopy Center. A total of 7,883 sq. ft. new construction with an estimated cost of
$1,529,000.
• Raintree Apartments. A total of 23,233 sq. ft. new construction with an estimated value of
$1,144,319.
• Security Storage. A total of 58,000 sq. ft. new construction with an estimated cost of
1,090,000.
• Johnny Carinos Restaurant. A total of 6,722 sq. ft. new construction with an estimated cost of
$1,034,000.
• Dunlap's Retail Establishment. A total of 23,344 sq. ft. new construction with an estimated
cost of$1,030,000.
Another indicator of performance of the local economy is the retail sales tax. The local sales tax rate
in the city is two percent. Statewide, cities experienced a growth in sales tax collections of 7.65% for
iii
the 2003-04 fiscal year. By comparison, retail sales in Wichita Falls grew by 3.61% during the same
period, resulting in an increase in revenue of$891,185.
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 are underway that will provide for
a new public safety training facility, and replacement of the 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 on a pay as you go basis from
cash balances of the 4B Sales Tax Corporation.
The public safety training center has been constructed to replace existing facilities that are 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 is expected to be
operational in the next several weeks, and will include classrooms, a physical fitness area, fire
apparatus bay, storage areas for training materials, and limited office space. Additionally, the facility •
will house a new public safety dispatching area. Total construction costs are estimated to be
$5 million.
In addition, contracts have been awarded for the installation of an integrated public safety
communication system including 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 is expected to be operational in the next several weeks.
The computer-aided dispatching and records management computer systems are anticipated to be in
service by the start 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 new
debt service obligation.
A project is underway to make significant improvements to Kickapoo Downtown Airpark. The
improvements will 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. The cost for Phase
I of these improvements is estimated to be $2.9 million, 90% of which will be funded with Federal
Aviation Entitlement Funds. The remaining 10%will be paid for from reserve funds in the City's two
iv
airport funds. Phase II construction was awarded in June 2004 in the amount of$3.1 million. The
Federal Aviation Entitlement Grant will fund 95% of the cost of this project.
Renovation is nearing completion of the former Holt Hotel property located in the downtown district.
Through a public/private partnership, this abandoned historic structure is being completely renovated
into an upscale apartment complex. The ultimate owner of the complex will be the Wichita County
Heritage Society, but the facility will be developed and managed by a professional management firm.
The financial plan includes support from local foundations, City support from Community
Development Block Grants and Tax Increment Financing Funds, historic preservation tax credits, an
Economic Development Initiative Grant from the federal government, and a private bank loan.
Overall,this public/private partnership project is estimated to cost approximately$6 million.
A substantial flood control project to address flooding in the Faith Village Subdivision is currently
underway. In July 2003, Phase I of this project was approved by the City Council in the amount of
$2.4 million. This phase of the project is nearing completion and the City Council has approved
funding to engineer Phases II and III of this drainage improvement project. Phase I of this project has
been funded with proceeds from the Storm Water Utility District that was established in May 2001.
Phases II and III 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 design 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.
The City approved the use of$750,000 in 4B Sales Tax Corporation Funds to be used to defray part
of the $5 million cost to construct a Butterfly Conservatory at the privately operated River Bend
Nature Works Center. This project is a public/private partnership that utilizes over $4 million of
private funds that were successfully raised by the River Bend Nature Works organization.
The City continues to experience significant increases in the cost of its employee health benefits
program. During the 2004-05 fiscal year, an additional $900,000 in City contributions were budgeted
to address increasing costs. In addition, employee deductibles were increased to share in these
increasing costs.
FINANCIAL INFORMATION
In developing and evaluating the City's accounting system, consideration is given to the adequacy of
internal control as deemed appropriate by the City Manager. Internal control is designed to provide
reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from
unauthorized use or disposition; and (2) the reliability of financial records for preparing financial
statements and maintaining accountability for assets. The concept of reasonable assurance recognizes
that the cost of a control should not exceed the benefits likely to be derived and the evaluation of costs
and benefits requires estimates and judgments by the City Manager.
All internal control evaluations occur within the above framework. The City believes that its internal
control adequately safeguards assets and provides reasonable assurance of proper recording of
financial transactions.
v
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 30,2004, 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 2003-04, the City of Wichita Falls continued a risk management program for worker's
compensation. Various risk control techniques, including employee accident prevention training, have
been utilized during the year to minimize accident-related losses.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the books of account, financial records, and
transactions of all administrative departments of the City by Certified Public Accountants. The
accounting firm of Mathis, West,Huffines &Co.,P.C.was selected by the Mayor and City Council to
satisfy this charter requirement. The auditors' report on the basic financial statements and combining
fund statements and schedules is included in the financial section of this report. In addition to
meeting the requirements set forth in the City Charter, the audit also was designed to meet the
requirements of the federal Single Audit Act Amendments of 1996 and related OMB Circular A-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, 2003. The Certificate of Achievement is a prestigious
national award recognizing conformance with the highest standards for preparation of a state and local
government financial report. In order to be awarded a Certificate of Achievement, a government must
publish an easily readable and efficiently organized comprehensive annual financial report, whose
contents conform to program standards. The CAFR must satisfy both generally accepted accounting
principles and applicable legal requirements. A Certificate of Achievement is valid for a period of
one year only. We believe our current report continues to conform to the Certificate of Achievement
program requirements, and we are submitting it to GFOA to determine its eligibility for another
certificate.
vi
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,
04,
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, 2003
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.
• EGI�TSf 4' (�(1• r"""°" President
CURPUIUTgN `�
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Executive Director
viii
CITY OF WICHITA FALLS
ORGANIZATIONAL CHART
I WICHITA FAILS I
CITIZENS
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M COMMISSIONS F — CITY COUNCI. V1
CITIZENS
BOARDS
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COURT I CRY MANAGER I M CITY ATTORNEY 1 I CITY Cum 1
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ITRAFFIC AND FINANCE ASSISTANT CITY ADMINISTRATIVE HOUSING NI HEALTH
TRANSPORTATION DEPARTMENT MANAGER SERVICES COMMUNITY DEPARTMENT
DNRARTMINT DEPARTMENT DEVELOPMENT
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SLICE FIRE I PARKS AND PUBLIC WORKS/
DEPARTMENT DEPARTMENT I RECREATION PUBLIC UTILITIES
` DEPARTMENT DEPARTMENT
FIRE THOVII CAL CES TSERVICES SUPPRESSION FLI
INVESTIGATION I ARSON
RECREATION ..1 SANITATION
IADMINISTRATIONI I CEMETERY I I STREET MAINTENANCEH UTQd1TES I
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CITY OF WICHITA FALLS, TEXAS
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2004
Title Name
Mayor William K.Altman
Mayor Pro-Tem Arthur Bea Williams
City Council Member James Esther, Jr.
City Council Member Linda Ammons
City Council Member Mike Norrie
City Council Member Ray Gonzalez
City Council Member Charles Elmore
City Manager James Berzina
City Attorney Bill Sullivan
Municipal Court Judge Larry Gillen
City Clerk Lydia Torres
Assistant City Manager Matt Benoit
Assistant City Manager- Director of Aviation,
Traffic and Transportation Darron Leiker
Director of Finance Jim Dockery
Director of Community Development David Clark
Director of Public Health Reuben Warren
Director of Administrative Services Jan Stricklin
Police Chief Dennis Bachman
Fire Chief Harold Lindsey, Jr.
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
MATHIS, WEST, HUFFINES & CO., P.C. Capital Center • Indiana at Seventh
Certified Public Accountants P.O.Box 97000 • Wichita Falls,Texas 76307-7000
(940)723-1471 • FAX(940)723-2251
Email mwhl mwhpc.com • www.mwhpc.com
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, 2004, 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, 2004, 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 February 4, 2005 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.
lit 4;5, LAJ 4, c` ,, � 6).,Pc•
MATHIS, WEST, HUFFINES&CO., P.C.
Wichita Falls, Texas
February 4, 2005
2
MANAGEMENT DISCUSSION & ANALYSIS
Wichita.
TEXAS
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2004
Management's discussion and analysis provides a narrative overview of the fmancial activities
and changes in the fmancial position of the City of Wichita Falls,Texas, for the fiscal year ended
September 30, 2004. It is offered here by the management of the City to the readers of its
fmancial 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, 2004, by
$241,446,024 (net assets). Of this amount, $35,917,372 (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$15,170,094. This increase can be attributed primarily to
an increase in capital assets in the following areas: improvements to Kickapoo Airpark; the Faith
Village Storm Water Drainage Improvement Project; construction of the Municipal Training
Center; and public safety radio and data communication system improvements. The City also
experienced an increase in retail sales taxes that resulted in an increase of assets in the Excess
Sales Tax Fund.
At September 30, 2004, the City's governmental funds reported combined ending fund balances
of $30,184,600. Of this amount, $17,576,038, or 58.23%, 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
$9,507,595,or 18.49%of total General Fund expenditures.
The City's total debt increased by $860,449 during the current fiscal year. The primary reason
for this increase is because the City issued $7,550,000 in Combination Tax and Revenue Bonds
during the fiscal year to assist in the financing of three public safety improvement projects. The
debt service on this bond issue is being funded with annual proceeds of the 4B Sales Tax
Corporation. The City retired $2,230,000 of General Obligation Bonds, $740,000 of
Combination Tax and Revenue Bonds, and $23,620,441 of Water and Sewer Revenue Bonds. It
3
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2004
(continued)
should be noted, however, that $19,900,889 of the Water and Sewer System Revenue Bonds that
were retired, were refunded as Combination Tax and Revenue Bonds at lower interest rates.
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 financial position should be taken into consideration, such as the
change in the City's property tax base and condition of the City's infrastructure (e.g., roads,
traffic signals, water and sewer lines, etc.), in order to more accurately assess the overall financial
condition of the City.
The Statement of Activities presents information showing how the City's net assets changed
during the most recent fiscal year. It focuses on both the gross and net costs of the government
services. This statement includes all current year revenues and expenses.
The Statement of Net Assets and the Statement of Activities divide the City's activities into 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.
4
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2004
(continued)
The government-wide financial statements are found on pages 14-15 of this report.
Fund Financial Statements
The City of Wichita Falls, like other state and local governments, uses fund accounting to provide
more detailed information about the City's most significant funds, not the City as a whole. A
fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. Some funds are required to be established by
state law or bond covenants. However, the City Council establishes many other funds to help it
control and manage money for particular purposes or to show that it is meeting legal
responsibilities. All of the funds of the City can be divided into three categories: governmental
funds,proprietary funds and fiduciary funds.
Governmental Funds— These funds are used to account for the majority of the City's activities,
which are essentially the same functions reported as governmental funds in the government-wide
statements. However, unlike the government-wide financial statements, governmental fund
financial statements are reported using an accounting method identified as the modified accrual
basis of accounting, which measures cash and all other financial assets that can be readily
converted to cash. The governmental fund statements focus on near-term inflows and outflows of
expendable resources, as well as expendable resources available at the end of the fiscal year for
future spending. Such information may be useful in evaluating a government's near-term
financing requirements.
The focus of the governmental funds financial statements is narrower than that of the
government-wide financial statements. Therefore, it is useful to compare the information
presented for governmental funds with similar information presented for governmental 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 12 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 16-19 of this report.
Proprietary Funds — When the City charges customers for services it provides, whether to
outside customers or to other units within the City, the activities are generally reported in
proprietary funds. The City of Wichita Falls maintains two different types of proprietary funds:
enterprise funds and internal service funds.
5
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2004
(continued)
• Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise
funds to account for its water and sewer operations, sanitation collection and
disposal services, municipal airports, 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 26-57 of this report.
Government-Wide Financial Analysis
The City's combined net assets were $241,446,024 as of September 30, 2004, an increase of
$15,170,094, or 7.54% 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, $189,465,524, or 78.47%, is reflected in capital assets (land and improvements,
buildings, infrastructure, machinery and equipment), less any related debt used to acquire those
assets that is still outstanding. The City uses these assets to provide services to its citizens;
consequently, these assets are not available for future spending. Although the City reports its
capital assets net of related debt, the resources needed to repay this debt must be provided from
other sources since the capital assets themselves cannot be used to liquidate these liabilities.
6
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2004
(continued)
An additional portion of the City's net assets, $16 063 128 or 6.65%, represents resources that
h' � P
are subject to external restrictions on how they may be used. The remaining balance of net assets,
$35,917,372 may be used to meet the government's ongoing obligations to citizens and creditors.
Net Assets
(in thousands)
Governmental Business-type
Activities Activities Total
2004 2003 2004 2003 2004 2003
Current and Other Assets $ 38,804 $ 30,381 $ 155,681 $ 166,427 $ 194,485 $ 196,808
Capital Assets 109,916 79.923 144,660 130,159 254,576 210,082
Total Assets 148,720 110,304 300,341 296,586 449,061 406,890
Long Term Liabilities 26,382 21,940 169,403 173,087 195,785 195,027
Other Liabilities 6,380 6,572 5,450 4,223 11,830 10,795
Total Liabilities 32,762 28,512 174,853 177,310 207.615 205,822
Net Assets:
Invested in Capital Assets,
Net of Related Debt 90,046 64,633 99,420 89,683 189,466 154,316
Restricted 626 598 15,437 15,483 16,063 16,081
Unrestricted 25,286 16,561 10,631 14,109 35,917 30,670
Total Net Assets $ 115.958 $ 81.792 $ 125.488 $ 119.275 $241,446 $201.067
7
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2004
(continued)
CHANGES IN NET ASSETS
(in thousands)
Governmental Business-type
Activities Activities Total
2004 2003 2004 2003 2004 2003
Revenues:
Program Revenues:
Charges For Services $6,635 $5,740 $39,489 $39,863 $46,124 $45,603
Operating Grants and
Contributions 11,968 9,470 937 817 12,905 10,287
Capital Grants and Contributions 6,970 2,608 376 879 7,346 3,487
General Revenues:
Property Taxes 21,405 20,891 - - 21,405 20,891
Sales Taxes 17,193 16,599 - - 17,193 16,599
Other Taxes/Fees 6,909 6,935 - - 6,909 6,935
Investment Earnings 379 404 1,764 2,239 2,143 2,643
Miscellaneous 459 312 518 (47) 977 265
Total Revenue 71,918 62,959 43,084 43,751 115,002 106,710
Expenses:
Administrative Services 9,524 9,816 - - 9,524 9,816
Police 16,284 16,082 - - 16,284 16,082
Fire 10,058 9,742 - - 10,058 9,742
Parks and Recreation 4,164 4,112 - - 4,164 4,112
Accounting/Finance 1,852 1,721 - - 1,852 1,721
Community Development 7,897 7,536 - - 7,897 7,536
Public Works 6,404 5,627 - - 6,404 5,627
Health 4,524 4,632 - - 4,524 4,632
Traffic and Transportation 1,983 2,138 - - 1,983 2,138
MPEC 1,590 622 - - 1,590 622
Capital Outlay - - - - - -
Interest and Fees on Long-term
Debt 922 906 - - 922 906
Golf - - 761 747 761 747
Municipal Airport - - 251 221 251 221
Kickapoo Airport - - 339 296 339 296
Transit - - 1,028 1,101 1,028 1,101
Sanitation - - 7,418 7,088 7,418 7,088
Water and Sewer - - 24,721 25,076 24,721 25,076
Stormwater Drainage - 112 11 112 11
Total Expenses 65,202 62,934 34,630 34,540 99,832 97,474
Increase in Net Assets
Before Special Item and Transfers 6,716 25 8,454 9,211 15,170 9,236
Special Item - - - 1,214 - 1,214
Transfers 2,242 5,748 (2,242) (3,698) - 2,050
Increase in Net Assets 8,958 5,773 6,212 6,727 15,170 12,500
Net Assets-Beginning of Year 81,792 76,022 119,275 112,549 201,067 188,571
Prior Period Adjustment 25,208 - - - 25,208
Net Assets-End of Year $115.958 $81,795 $125.487 $119.276 $241.445 $201.071
8
l
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2004
(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, 2004, the City's governmental funds reported combined fund balances of
$30,184,600. Approximately 58.23%, or $17,576,038 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
($10,796,417), inventory and prepaid items ($212,989), debt service ($972,900), and perpetual care
($626,256).
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$9,507,595. 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 18.49% of total General Fund expenditures, while the total fund
balance represents 21.44% of total General Fund expenditures. The fund balance of the General Fund
increased by $450,702 during the current fiscal year. The primary reasons for this increase are as
follows:
• Municipal court fines exceeded budgetary expectations by approximately $300,000 due to a
significant increase in the number of traffic violations issued and collected during the year.
• Franchise fees from the gas company exceeded budgetary expectations due to an increase in the
company's gross receipts as a result of higher gas prices.
• Vacancies in the Police Department resulted in salary savings.
The Capital Project Funds reflect a significant increase in total fund balance due to recognition of general
obligation bond proceeds in the amount of$7,549,000 for public safety capital improvement projects. The
projects being constructed include a 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 $6,212,396, accounting for 40.95% of the
total growth in the City's net assets. Following are the 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.
• 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 is underway.
9
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2004
(continued)
General Fund Budgetary Highlights
The final amended expenditure budget for the General Fund was increased by$2,871,932 from the original
adopted budget. Some of the reasons for this increase in appropriations can be briefly summarized as
follows:
• Approximately $1,700,000 of prior year encumbrances were carried forward to the 2003-04
amended budget, $1,495,000 of which was for the capital infrastructure improvements for the
street overlay program and traffic control devices that were contracted for, but not completed, at
the close of the 2002-03 fiscal year.
• Approximately $770,000 was appropriated for additional City contributions to the Employee
Benefit Trust Fund to cover the cost of employee health claims that exceeded original budgeted
amounts.
• An additional $50,000 was appropriated to cover worker's compensation claims that were higher
than anticipated.
• Additional appropriations were made various user departments to increase the central garage
charge account to reimburse the Fleet Maintenance Fund for the high cost of fuel.
Actual revenues in the General Fund for the 2003-04 fiscal year were $50,416,879, which was $1,570,650
above final budgeted figures. Much 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 municipal court fines
and in miscellaneous revenue due to the reclassification of the sale of City property from a liability to a
revenue account.
Actual expenditures in the General Fund for the 2003-04 fiscal year were$51,408,589 compared to a final
budget of$52,659,161. This variance is due principally to salary savings that accrued to the General Fund
from vacancies in authorized positions; savings in materials for street maintenance; and a delay in a
significant street overlay program until the ensuing fiscal year.
Capital Asset and Debt Administration
Capital Assets—The City's investment in capital assets for its governmental and business-type activities as
of September 30, 2004, amounts to $254,575,473 (net of accumulated depreciation). This investment in
capital assets includes land,buildings,equipment,infrastructure and construction in progress.
Major capital asset events during this fiscal year included the following:
• Construction in progress of the Police/Fire Training Facility,and related communication systems.
• Construction in progress on the water system, principally at Jasper and Cypress Water Treatment
Plants.
• Construction in progress of Kickapoo Airpark improvements
• Construction in progress of the Faith Village Storm Drainage Improvement Project.
10
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2004
(continued)
Capital Assets,net of Accumulated Depreciation
(in thousands)
Governmental Business-type
Activities Activities Total
2004 2003 2004 2003 2004 2003
Land $ 12,668 $ 12,664 $8,102 $ 8,102 $ 20,770 $ 20,766
Land Betterments 8,588 8,700 11,237 11,318 19,825 20,018
Buildings, Systems
and Improvements 43,391 44,252 88,591 89,530 131,982 133,782
Infrastructure 36,781 35,838 - - 36,781 35,838
Machinery and Equip 1,642 1,790 1,581 1,507 3,223 3,297
Furniture and Fixtures 45 47 23 27 68 74
Motor Vehicles - - 11,070 11,708 11,070 11,708
Construction in
Progress 6.801 1.840 24.055 7.967 30.856 9.807
Totals $ 109.916 $ 105.131 $144,659 $130.159 $ 254.575 $ 235,290
Additional information on the City's capital assets can be found in Note 7 on pages 40-43 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 $185,534,947. The City issued $7,550,000 in Combination Tax and
Revenue Bonds during the fiscal year to assist in the financing of three public safety
improvement projects. The debt service on this bond issue is being funded with annual proceeds
of the 4B Sales Tax Corporation. In addition, $19,900,889 of the Water and Sewer System
Revenue Bonds were refunded as Combination Tax and Revenue Bonds at lower interest rates.
Outstanding Debt at Year-End
(in thousands)
Governmental Business-type
Activities Activities Total
2004 2003 2004 2003 2004 2003
General Obligation Bonds $ 13,060 $ 15,290 $ - $ - $ 13,060 $ 15,290
Combination Tax and
Revenue Bonds 6,810 - 19,901 - 26,711 -
Util System Revenue
Bonds - - 144,748 168,368 144,748 168,368
Notes Payable 234 289 782 808 1.016 1.097
Total $ 20.104 $ 15,579 $ 165.431 $ 169.176 $ 185.535 $ 184.755
11
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30, 2004
(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, 2004, was
$.59246 per$100, which means that the City has a tax margin of$1.65754 per$100, and could raise up to
$58,527,615 additional tax revenue a year from the present assessed valuation of$3,530,992,589 before the
limit is reached. The current ratio of net tax-supported debt to the assessed value of all taxable property is
0.54%.
Additional information about the City's long-term debt can be found in Note 12 on pages 48-51 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 2004 tax year, as certified by the Wichita County Appraisal District, increased 4.33% 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 2003-04 fiscal year.
The second largest revenue source of the City's General Fund is the retail sales tax. Due to recent volatility
of the sales tax,the City was conservative in making sales tax projections for the 2004-05 fiscal year. The
2004-05 budget projects an increase of 1.30%in overall receipts over the 2003-04 revised estimate.
Overall,revenues in the General Fund are budgeted to increase by 4.98%from the 2003-04 adopted budget.
The budget also anticipates the use of$607,450 in General Fund reserves for one-time needs.
For the last three fiscal years, water sales have been significantly lower than budgetary projections
principally because of mandatory water conservation measures and higher water rates that have been
approved in the last few years.. As a result,water and sewer rates were increased by approximately 7.06%,
effective October 1,2004.
Requests for Information
This financial report is designed to provide a general overview of the City of Wichita Falls' finances for all
those with an interest in the government's finances. Questions concerning any of the information provided
in this report, or request for additional financial information, should be addressed to the City Finance
Department, 1300 Seventh Street, Wichita Falls,Texas 76301.
12
BASIC FINANCIAL STATEMENTS
EXHIBIT A-1
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30,2004
Primary Government
Governmental Business-type Component
Activities Activities Total Units
Assets
Cash and cash equivalents $ 18,978,248 $ 29,367,980 $ 48,346,228 $20,924,826
Investments 4,984,330 2,010,765 6,995,095 -
Receivables(net):
Taxes and assessments 1,019,092 - 1,019,092 29,030
Customer and trade - 3,621,495 3,621,495 -
Component unit 5,351,790 - 5,351,790 -
Government agencies 6,530,043 231,399 6,761,442 989,696
Other 2,376,732 283,983 2,660,715 98,634
Internal balances (675,347) 675,347 - -
Inventory 88,490 1,697,974 1,786,464 41,576
Prepaid items 147,814 31,478 179,292 3,577
Other assets 3,000 - 3,000 9,460
Deferred charges - 2,624,606 2,624,606 -
Restricted assets:
Cash and cash equivalents - 94,948,126 94,948,126 -
Investments - 20,177,447 20,177,447 -
Receivables:
Other - 10,315 10,315 -
Capital assets not being depreciated 19,468,785 32,157,349 51,626,134 -
Capital assets net of accumulated depreciation 90,447,097 112,502,242 202,949,339 1,263,722
Total assets 148,720,074 300,340,506 449,060,580 23,360,521
Liabilities
Accounts payable-trade 1,328,840 2,085,712 3,414,552 452,697
Accrued payroll 997,749 293,519 1,291,268 25,332
Payable to primary government - - - 5,351,789
Payable to government agencies 375,892 42,772 418,664 263,732
Estimated health claims payable 835,784 - 835,784 -
Other liabilities 2,793,144 705,700 3,498,844 21,560
Deferred revenue 48,364 - 48,364 -
Customer deposits - 2,321,698 2,321,698 -
Long-term liabilities: -
Portion due or payable within one year 3,613,656 6,235,380 9,849,036 -
Portion due or payable after one year 22,768,404 163,167,942 185,936,346 51,667
Total liabilities 32,761,833 174,852,723 207,614,556 6,166,777
Net Assets
Invested in capital assets,net of related debt 90,045,882 99,419,642 189,465,524 1,263,722
Restricted for debt service 626,256 15,436,872 16,063,128 -
Unrestricted 25,286,103 10,631,269 35,917,372 15,930,022
Total net assets $115,958,241 $ 125,487,783 $241,446,024 $17,193,744
See accompanying notes to the basic financial statements.
13
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30,2004
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
Administrative services $ 9,524,291 $ 3,631,020 $ 206,801 $ -
Police 16,283,542 372,510 623,479 -
Fire 10,058,363 3,233 41,998 -
Parks and recreation 4,164,247 479,204 190,227 -
Accounting/finance 1,851,988 - - -
Community development 7,897,167 1,265,897 6,947,787 -
Public works 6,404,132 - 266,664 -
Health 4,523,907 668,491 1,934,874 -
Traffic and transportation 1,983,322 214,266 1,391,861 -
MPEC 1,589,670 - 259,769 51,454
Capital outlay - - - 6,918,684
Interest and fees on long-term debt 921,705 - 105,000 -
Total governmental activities 65,202,334 6,634,621 11,968,460 6,970,138
Business-type activities:
Golf 760,705 677,498 - -
Municipal Airport 250,807 416,573 - -
Kickapoo Airport 338,957 385,871 - -
Transit 1,028,491 194,388 937,025 -
Sanitation 7,418,146 8,920,801 - -
Water and sewer 24,721,561 27,857,286 - 376,437
Stormwaterdrainage 112,082 1,036,450 - -
Total business-type activities 34,630,749 39,488,867 937,025 376,437
Total primary government $ 99,833,083 $ 46,123,488 $ 12,905,485 $ 7,346,575
Component units:
Community development $ 8,518,300 $ - $ - $ -
Multi-Purpose Events Center 3,559,894 2,849,725 749,678 -
Total component units $ 12,078,194 $ 2,849,725 $ 749,678 $ -
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
$ (5,686,470) $ - $ (5,686,470) $ -
(15,287,553) - (15,287,553) -
(10,013,132) - (10,013,132) -
(3,494,816) - (3,494,816) -
(1,851,988) - (1,851,988) -
316,517 - 316,517 -
(6,137,468) - (6,137,468) -
(1,920,542) - (1,920,542) -
(377,195) - (377,195) -
(1,278,447) - (1,278,447) -
6,918,684 - 6,918,684 -
(816,705) - (816,705) -
(39,629,115) - (39,629,115) -
- (83,207) (83,207) -
- 165,766 165,766 -
- 46,914 46,914 -
- 102,922 102,922 -
- 1,502,655 1,502,655 -
- 3,512,162 3,512,162 -
- 924,368 924,368 -
- 6,171,580 6,171,580 -
(39,629,115) 6,171,580 (33,457,535) -
- - - (8,518,300)
- - - 39,509
- - - (8,478,791)
21,404,857 - 21,404,857 229,658
17,192,703 - 17,192,703 5,730,900
5,218,860 - 5,218,860 -
1,278,102 - 1,278,102 -
202,841 - 202,841 -
209,825 - 209,825 -
379,150 1,764,311 2,143,461 225,375
(24,061) - (24,061) -
482,908 518,133 1,001,041 -
2,241,628 (2,241,628) - -
48,586,813 40,816 48,627,629 6,185,933
8,957,698 6,212,396 15,170,094 (2,292,858)
81,792,164 119,275,387 201,067,551 18,256,923
25,208,379 - 25,208,379 1,229,679
$ 115,958,241 $ 125,487,783 $ 241,446,024 $ 17,193,744
EXHIBIT A-3
CITY OF WICHITA FALLS, TEXAS
BALANCE SHEET-GOVERNMENTAL FUNDS
SEPTEMBER 30,2004
Total
Nonmajor Governmental
General Governmental Funds
Assets
Cash and cash equivalents $ 4,877,636 $ 12,721,954 $ 17,599,590
Investments 4,984,330 - 4,984,330
Receivables(net):
Taxes and assessments 803,552 215,540 1,019,092
Other City funds 1,021,083 - 1,021,083
Component unit - 5,351,790 5,351,790
Government agencies 2,866,058 3,998,342 6,864,400
Other 2,020,860 10,224 2,031,084
Inventory 79,190 - 79,190
Prepaid items 114,043 19,757 133,800
Other assets - 3,000 3,000
Total assets $ 16,766,752 $ 22,320,607 $ 39,087,359
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 590,964 $ 278,676 $ 869,640
Accrued payroll 915,919 76,467 992,386
Payable to other City funds - 901,551 901,551
Payable to government agencies 219,406 156,486 375,892
Notes payable - 234,186 234,186
Other liabilities 1,450,579 1,342,565 2,793,144
Deferred revenue 2,125,242 169,750 2,294,992
Claims and judgments payable 440,968 - 440,968
Total liabilities 5,743,078 3,159,681 8,902,759
Fund balances:
Reserved for encumbrances 1,322,847 9,473,570 10,796,417
Reserved for inventory and prepaid items 193,232 19,757 212,989
Reserved for debt service - 972,900 972,900
Reserved for perpetual care - 626,256 626,256
Unreserved,designated for subsequent
years expenditures reported in:
General Fund 3,000,000 - 3,000,000
Special Revenue Funds - 4,083,344 4,083,344
Capital Projects Funds - 3,394,688 3,394,688
Unreserved,undesignated reported in:
General Fund 6,507,595 - 6,507,595
Special Revenue Fund - 590,411 590,411
Total fund balances 11,023,674 19,160,926 30,184,600
Total liabilities and fund balances $ 16,766,752 $ 22,320,607 $ 39,087,359
See accompanying notes to the basic financial statements.
15
EXH
IBIT A-4
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2004
Total fund balances -governmental funds (Exhibit A-3) $ 30,184,600
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 $ 179,395,345
Related accumulated depreciation 69,573,685 109,821,660
Property taxes receivable and municipal court fines are not available to pay for current
period expenditures and therefore are deferred in the funds. 2,246,628
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 19,870,000
Accrued vacation and sick leave 5,558,358
Claims and judgments payable 210,854
Accrued interest 66,574 (25,705,786)
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. 205,861
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. (794,722)
Total net assets -governmental activities (Exhibit A-1) $ 115,958,241
See accompanying notes to the basic financial statements.
16
•
EXHIBIT A-5
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES-GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2004
Total
Nonmajor Governmental
General Governmental Funds
Revenues
Taxes $ 41,998,979 $ 3,513,970 $ 45,512,949
Charges for services 2,270,842 181,511 2,452,353
Licenses and permits 2,292,695 - 2,292,695
Fines and forfeitures 2,019,219 169,782 2,189,001
Intergovernmental revenue 53,711 11,391,129 11,444,840
Contributions 880,852 6,612,906 7,493,758
Miscellaneous revenue 900,581 1,106,722 2,007,303
Total revenues 50,416,879 22,976,020 73,392,899
Expenditures
Administrative services 8,927,792 402,839 9,330,631
Police 15,213,234 783,730 15,996,964
Fire 9,820,265 30,938 9,851,203
Parks and recreation 3,493,846 522,548 4,016,394
Accounting/finance 1,757,006 - 1,757,006
Community development 1,289,868 6,847,804 8,137,672
Public works 4,206,587 282,117 4,488,704
Health 2,358,905 2,093,602 4,452,507
Traffic and transportation 1,621,576 146,760 1,768,336
MPEC Coliseum - 783,244 783,244
Capital outlay 2,719,510 5,516,142 8,235,652
Debt service-principal - 2,970,000 2,970,000
Debt service-interest and paying agent fees - 900,526 900,526
Total expenditures 51,408,589 21,280,250 72,688,839
Other Financing Sources(Uses)
Transfers in 1,907,907 5,234,100 7,142,007
Transfers out (465,495) (5,928,148) (6,393,643)
Proceeds from general obligation bonds - 7,549,000 7,549,000
Total other financing sources(uses) 1,442,412 6,854,952 8,297,364
Net change in fund balance 450,702 8,550,722 9,001,424
Fund balances-beginning 10,282,972 10,610,204 20,893,176
Prior period adjustment 290,000 - 290,000
Fund balances-ending $ 11,023,674 $ 19,160,926 $ 30,184,600
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, 2004
Net change in fund balances-total governmental funds(Exhibit A-5) $ 9,001,424
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 $ 8,435,865
Depreciation expense for the year 3,635,554 4,800,311
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. (24,061)
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. 152,579
The issuance of long-term debt provides current financial resources to governmental funds.
However,the issuance increases long-term liabilities in the Statement of Net Assets. Long-
term debt issued in 2003-2004 was: (7,550,000)
Repayment of long-term debt principal is an expenditure in the governmental funds,but the
repayment reduces long-term liabilities in the Statement of Net Assets.Bond principal
payments in 2003-04 were: 2,970,000
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 37,744
Claims and judgments payable 17,150 54,894
Interest on long-term debt in the Statement of Activities differs from the amount reported
in the governmental funds because interest is recognized as an expenditure in the funds
when it is due,and thus requires the use of current financial resources. In the Statement
of Activities,however,interest expense is recognized as the interest accrues, regardless
of when it is due.The increase in accrued interest is as follows:
Accrued interest at September 30,2003 45,395
Accrued interest at September 30, 2004 66,574 (21,179)
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. 23,960
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. (450,230)
Change in net assets of governmental activities(Exhibit A-2) $ 8,957,698
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 30,2004
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Assets
Current assets:
Cash and cash equivalents $ 23,326,834 $ 3,801,168 $ 1,193,858 $ 28,321,860 $ 1,991,452
Investments - 2,010,765 - 2,010,765 -
Restricted cash,cash equivalents and
investments:
Cash and cash equivalents 94,948,126 - - 94,948,126 -
Investments 20,177,447 - - 20,177,447 -
Receivables(net):
Customer and trade 2,748,173 778,137 95,185 3,621,495 -
Government agencies 51,419 - 179,979 231,398 -
Other 202,394 2,556 63,164 268,114 26,360
Other(restricted) 10,315 - - 10,315 -
Inventory 764,271 - 157,405 921,676 785,597
Prepaid items 3,418 8,667 9,860 21,945 24,348
Total current assets 142,232,397 6,601,293 1,699,451 150,533,141 2,827,757
Noncurrent assets:
Deferred charges 2,624,990 - - 2,624,990 -
Capital assets,net of accumulated
depreciation 119,365,556 4,126,478 7,042,084 130,534,118 14,219,694
Total noncurrent assets 121,990,546 4,126,478 7,042,084 133,159,108 14,219,694
Total assets 264,222,943 10,727,771 8,741,535 283,692,249 17,047,451
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 30,2004
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Liabilities
Current liabilities:
Accounts payable-trade 1,663,426 30,600 91,254 1,785,280 326,305
Accrued payroll 149,804 70,116 32,117 252,037 46,845
Accrued vacation and sick leave 228,520 97,543 38,273 364,336 63,151
Payable to other City funds - - 119,532 119,532 -
Payable to government agencies - 41,644 1,128 42,772 -
Estimated health claims payable - - - - 835,784
Other liabilities 620,606 - 85,178 705,784 300
Total current liabilities 2,662,356 239,903 367,482 3,269,741 1,272,385
Current liabilities payable from
restricted assets:
Revenue bonds-current maturities 4,521,107 - - 4,521,107 -
Accrued interest-revenue bonds 1,287,906 - - 1,287,906 -
Total current liabilities payable
from restricted assets 5,809,013 - - 5,809,013 -
Noncurrent liabilities:
Payable to U.S. Government 781,974 - - 781,974 -
Revenue bonds,less current maturities 160,127,680 - - 160,127,680 -
Estimated liability for landfill closure and
post-closure care costs - 2,258,288 - 2,258,288 -
Total long-term liabilities 160,909,654 2,258,288 - 163,167,942 -
Noncurrent liabilities payable from
restricted assets:
Customer deposits 2,321,698 - - 2,321,698 -
Total liabilities 171,702,721 2,498,191 367,482 174,568,394 1,272,385
Net Assets
Invested in capital assets, net of
related debt 74,125,607 4,126,478 7,042,084 85,294,169 14,219,694
Restricted for debt service 15,436,872 - - 15,436,872 -
Unrestricted 2,957,743 4,103,102 1,331,969 8,392,814 1,555,372
Total net assets $ 92,520,222 $ 8,229,580 $ 8,374,053 109,123,855 $15,775,066
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 16,362,767
Net assets of business type activities $125,486,622
See accompanying notes to the basic financial statements.
20
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 30,2004
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Operating revenues:
Charges for services $ 27,761,486 $ 8,891,031 $1,801,944 $38,454,461 $ 7,615,519
Rents,concessions and other 95,800 - 908,839 1,004,639 398,570
Contributions - - - - 7,686,899
Total operating revenues 27,857,286 8,891,031 2,710,783 39,459,100 15,700,988
Operating expenses:
Personnel services 6,645,434 3,009,473 1,348,036 11,002,943 1,862,303
Supplies and materials 1,114,812 85,535 202,584 1,402,931 2,277,014
Maintenance and repairs 1,061,234 307,321 259,931 1,628,486 1,727,784
Utilities and other services 3,478,590 3,082,734 326,798 6,888,122 100,262
Insurance and contract support 438,339 179,926 82,929 701,194 7,432,710
Other expenses 1,362,003 506,364 161,018 2,029,385 277,054
Depreciation and amortization 3,157,362 82,596 171,616 3,411,574 2,897,110
Total operating expenses 17,257,774 7,253,949 2,552,912 27,064,635 16,574,237
Operating income(loss) 10,599,512 1,637,082 157,871 12,394,465 (873,249)
Nonoperating revenues(expenses):
Interest income 1,649,339 92,259 22,711 1,764,309 6,371
Gain on sale/abandonment of capital assets 18,114 29,770 - 47,884 95,876
Interest expense and paying agent fees (8,214,627) - - (8,214,627) -
Intergovernmental operating grants - - 937,025 937,025 -
Total nonoperating revenues(expenses) (6,547,174) 122,029 959,736 (5,465,409) 102,247
Income(loss)before contributions and transfers 4,052,338 1,759,111 1,117,607 6,929,056 (771,002)
Capital contributions 376,437 - - 376,437 -
Transfers in - - 1,663,761 1,663,761 1,121,052
Transfers out (1,092,103) (1,811,391) (317,683) (3,221,177) (312,000)
Change in net assets 3,336,672 (52,280) 2,463,685 5,748,077 38,050
Net assets-beginning 89,183,550 8,281,860 5,910,368 15,737,016
Net assets-ending $ 92,520,222 $ 8,229,580 $8,374,053 $ 15,775,066
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 463,158
Change in net assets of business type activities $ 6,211,235
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 30,2004
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Cash flows from operating activities:
Received from customers and users $ 27,997,649 $ 8,829,437 $ 2,698,342 $ 39,525,428 $ 16,098,220
Payments to suppliers (8,054,539) (4,964,383) (1,239,005) (14,257,927) (12,287,082)
Payments to employees (4,922,490) (2,217,832) (1,066,370) (8,206,692) (1,455,818)
Net cash provided by operating activities 15,020,620 1,647,222 392,967 17,060,809 2,355,320
Cash flows from noncapital financing activities:
Intergovernmental operating grants - - 2,358,575 2,358,575 -
Transfers in from other funds - - 117,488 117,488 1,121,052
Transfers out to other funds (1,092,103) (1,811,391) (317,683) (3,221,177) (312,000)
Net cash provided(used)by noncapital financing activities (1,092,103) (1,811,391) 2,158,380 (745,114) 809,052
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (12,809,105) (472,608) (4,217,904) (17,499,617) (2,234,203)
Proceeds from sale of capital assets - 29,770 - 29,770 143,081
Proceeds from sale of refunding bonds 19,900,889 - - 19,900,889 -
Payments to escrow agent for refunded bonds (19,625,787) - - (19,625,787) -
Payment of bond issuance costs (518,190) - - (518,190) -
Principal paid on long-term debt (4,070,000) - - (4,070,000) -
Interest and fees paid on long-term debt (8,407,199) - - (8,407,199) -
Net cash provided by(used for)capital and related
financing activities (25,529,392) (442,838) (4,217,904) (30,190,134) (2,091,122)
Cash flows from investing activities:
Interest on investments 1,649,339 111,397 22,711 1,783,447 6,371
Purchase of investments (5,777,224) - - (5,777,224) -
Sale of investments - 2,012,245 - 2,012,245 -
Net cash provided by(used for)investing activities (4,127,885) 2,123,642 22,711 (1,981,532) 6,371
Net Increase(Decrease)in Cash and Cash Equivalents (15,728,760) 1,516,635 (1,643,846) (15,855,971) 1,079,621
Cash and Cash Equivalents-Beginning 134,003,720 2,284,533 2,837,704 139,125,957 911,831
Cash and Cash Equivalents-Ending $ 118,274,960 $ 3,801,168 $ 1,193,858 $ 123,269,986 $ 1,991,452
Reconciliation of cash and cash equivalents on the balance
sheet to the statement of cash flows:
Cash and cash equivalents $ 23,326,834 $ 3,801,168 $ 1,193,858 $ 28,321,860 $ 1,991,452
Restricted assets-cash and cash equivalents 94,948,126 - - 94,948,126 -
Total cash and cash equivalents at end of year $ 118,274,960 $ 3,801,168 $ 1,193,858 $ 123,269,986 $ 1,991,452
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 30,2004
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Reconciliation of Operating Income(Loss)to Net Cash
Provided by Operating Activities:
Operating income(loss) $ 10,599,512 $ 1,637,082 $ 157,871 $ 12,394,465 $ (873,249)
Adjustments to reconcile operating income(loss)
to net cash provided by(used in)operating
activities:
Depreciation and amortization 3,157,362 82,596 171,616 3,411,574 2,897,110
Customer deposits received 79,549 - 384 79,933 -
(Increase)decrease in current assets:
Receivables:
Customer and trade 121,456 (61,948) (2,073) 57,435 -
Other City funds - - - - 402,957
Other (60,642) 355 (10,754) (71,041) (5,723)
Inventory (48,407) - (60,055) (108,462) (12,715)
Prepaid items 15,242 (8,667) (2,826) 3,749 (13,038)
Increase(decrease)in current liabilities:
Accounts payable-trade 659,938 (150,273) 11,297 520,962 (31,078)
Accrued payroll 45,201 21,518 7,766 74,485 8,015
Accrued vacation and sick leave 4,846 5,947 2,627 13,420 1,256
Payable to other City funds (67,374) (32,640) 119,532 19,518 -
Estimated health claims payable - - - - (18,215)
Payable to govemment agencies - 1,194 (4,413) (3,219) -
Other liabilities 513,937 - 1,995 515,932 -
Estimated liability for landfill closure - 152,058 - 152,058 -
Total adjustments 4,421,108 10,140 235,096 4,666,344 3,228,569
Net cash provided by(used in)
operating activities $ 15,020,620 $ 1,647,222 $ 392,967 $ 17,060,809 $ 2,355,320
Noncash capital and financing activities:
Capital assets received from developers $ 376,437 $ - $ - $ 376,437 $ -
See accompanying notes to the basic financial statements.
23
EXHIBIT A-10
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FIDUCIARY NET ASSETS
SEPTEMBER 30, 2004
Agency
Fund
Assets
Cash and cash equivalents $ 38,523
Liabilities
Other liabilities $ 38,523
See accompanying notes to the basic financial statements.
24
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2004
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, 2004
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).
C. 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. 14, 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(CONTD.)
SEPTEMBER 30, 2004
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.)
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 Mufti-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(CONT'D.)
SEPTEMBER 30,2004
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.)
Board, 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.
D. 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, 2004
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.
E. 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 30,2004
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, 2004
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.
F. Nonexchange Transactions
In a nonexchange transaction, a government gives (or receives)value without directly receiving (or
giving) equal value in return. The statement defines when the City should recognize revenue or
expense for nonexchange transactions involving financial or capital resources and how to account
for timing and purpose restrictions. The timing of recognition depends on whether a nonexchange
transaction is (a) a derived tax revenue (b) an imposed nonexchange revenue transaction or (c) a
government-mandated or voluntary nonexchange transaction. Under this standard, revenue
transactions with purpose restrictions are recorded as restricted resources until the purpose
restrictions are met.
Nonexchange transactions include the following classifications:
• Derived tax revenues result from assessments imposed by government on exchange
transactions.
• Imposed nonexchange revenues result from assessments by governments on
nongovernmental entities, other than assessments on exchange transactions.
• Government-mandated nonexchange transactions occur when a government at one level
provides resources to a government at another level and 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 30,2004
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.
G. Assets, liabilities and net assets or eauitv
1. Cash, cash equivalents and investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits
and short-term investments with original maturities of three months or less from the date of
acquisition.
Investments are carried at fair value. Fair value is determined as the price at which two
willing parties would complete an exchange. Interest earned on investments is recorded in
the funds in which the investments are recorded.
2. Inventory
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 8-75 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 30,2004
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.)
The City's infrastructure reported at September 30, 2004 does not include costs prior to
October 1, 2002 for alleys, drainage or trails. The City intends to include these costs in
future years.
For business-like activities' capital assets, interest is capitalized on construction costs
incurred during the year at an average interest rate on borrowed funds (revenue bonds) in
accordance with generally accepted accounting principles.
For the fiscal year ended September 30, 2004, the City's business-like activities incurred a
total of $8,254,804 of interest costs. Of this amount, $40,177 was capitalized on
construction projects and $8,214,627 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(CONT'D.)
SEPTEMBER 30, 2004
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
6. Reserves and Designations
Portions of fund equity are segregated for future use, and are therefore not available for
future appropriation or expenditure. Amounts reserved for revenue bond debt service and
retirement represent portions of fund equity which are required to be segregated in
accordance with the City's bond ordinances. Amounts reserved for inventory and prepaid
items have already been expended and represent a portion of the fund balance that is not
available for future expenditures. Amounts reserved for encumbrances are commitments
for materials and services on purchase orders and contracts which are unperformed.
Designations of unreserved fund balances in governmental funds indicate City
management's tentative plans for use of financial resources in a future period.
7. Transactions Between Funds
Outstanding balances between funds are reported as "due to/from other City funds." Any
residual balances between governmental activities and business-type activities are reported
in the government-wide statements as "internal balances." Nonrecurring or non-routine
transfers of equity between funds are accounted for as transfers.
8. Vacation and Sick Leave
All full-time employees accumulate vacation benefits based on length of service up to 15
days per year. The maximum allowable accumulation is 30 days. Upon leaving the
employment of the City, employees will be paid for unused vacation days which they have
accrued.
Sick leave is earned at the rate of 4.62 hours per pay period up to a maximum of ninety
days. Additionally, police officers and firefighters may accumulate an unlimited number of
sick leave days while employed with the City. Upon termination, police officers and
firefighters are compensated for up to 720 hours and 1,080 hours, respectively.
9. Risk Management
The government is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters for which the
government carries commercial insurance. For insured programs, there have been no
significant reductions in insurance coverage. Settlement amounts have not exceeded
insurance coverage for the current year or the three prior years.
The City maintains a group health insurance plan for employees and dependents which is
partially self-insured by the City. A group life insurance plan is maintained through an
insurance company. Contributions to the plans are provided for by both the City and
participating employees. These contributions are recognized as revenues in the internal
service fund used to account for these plans. The contributions made by the City are
recorded as expenditures or expenses of the various funds as appropriate.
34
1
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2004
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, 2004 is based on
management's estimate of probable losses in the amount of $534,822. 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. $323,968 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, 2002 to September 30, 2004:
Health Workers'
Care Compensation
Liability balance, October 1, 2002 $ 618,170 $ 368,001
Incurred claims/adjustments 6,339,067 2,087,765
Claim payments ( 6.103.238) ( 1.854.262)
Liability balance, September 30, 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
Note 2 - COMPLIANCE AND ACCOUNTABILITY
Finance-Related Legal and Contractual Provisions
In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures",
violations of finance-related legal and contractual provisions are reported below, along with actions
taken to address such violations.
Violation Action Taken
None
35
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2004
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, 2004, the total amount of the City's
demand and time deposits per the general ledgers was $164,210,420, and the total amount per the
City's September 30, 2004 bank statements was $165,619,868. 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, 2004
are as follows:
Component
City Units Totals
U.S. Government securities $ 27,172,543 $ - $ 27,172,543
Texas Local Government
Investment Pool (TexPool) 128,175,987 21,135,607 149,311,594
Local Government Investment
Cooperative (LOGIC) 1.255.182 - 1.255.182
Totals $156.603.712 $21.135.607 $177.739,319
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
f 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 30,2004
Note 3 - DEPOSITS AND INVESTMENTS(CONTD.)
LOGIC was also established pursuant to the Interlocal Cooperation Act passed by the State of
Texas and is administered by Southwest Securities Group, Inc. LOGIC's governing body is a five-
member board of directors comprised of three government officials and two other persons with
expertise in public finance. LOGIC's investments are only those authorized by the Texas Public
Funds Investment Act governing pools for local governments. LOGIC presently offers two
investment pools, each of which is separately managed and has a different investment objective.
Each participating government owns an undivided beneficial interest in the assets of the pool
represented by units. Participants may terminate their participation in LOGIC at any time by
redeeming their units.
The City's investments that are represented by specific identifiable investment securities are
categorized below to give an indication of the level of risk assumed by the City at year end.
Category 1 includes investments that are insured or registered, or for which the securities are held
by the City or its agent in the City's name. Category 2 includes uninsured and unregistered
investments for which the securities are held by the counterparty's trust department or agent in the
City's name. Category 3 includes uninsured and unregistered investments for which the securities
are held by the counterparty's safekeeping department, but not in the City's name.
Cateaory Carrying Fair
Description 1 2 3 Amount Value *
Primary Government:
U.S.Government Securities $27.172.543 $ 27,172,543 $ 27,172,543
Investments not subject
to categorization:
Public Funds Investment Pool 129.431.169 129.431.169
Subtotal 156,603,712 156,603,712
Component Units:
Investments not subject
to categorization:
Public Funds Investment Pool 21.135.607 21.135.607
Total $177.739.319 $177.739.319
* The fair value of the City's position in the Public Funds Investment Pool is the same as the value
of the Pool shares.
37
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2004
Note 4- RECEIVABLES
Receivables at September 30, 2004 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 $1,392,142 $ 303,306 $ - $ - $ - $ - $ 1,695,448 $ 29,030 $ 1,724,478
Customer and trade - - 3,175,176 934,655 95,185 - 4,205,016 - 4,205,016
Other City funds 1,021,083 - - - - - 1,021,083 - 1,021,083
Component unit - 5,351,790 - - - - 5,351,790 - 5,351,790
Government agencies 2,866,058 3,998,342 51,419 - 179,979 - 7,095,798 989,696 8,085,494
00 Other 4,946,422 10,224 202,394 2,556 63,164 26,360 5,251,120 98,634 5,349,754
Restricted-other - - 10.315 - - - 10.315 - 10.315
Gross receivables 10,225,705 9,663,662 3,439,304 937,211 338,328 26,360 24,630,570 1,117,360 25,747,930
Less: Allowance for
uncollectible accounts ( 3.514.152) ( 87.766) ( 427.003) ( 156,518) - ( 4.185.439) - ( 4.185.439)
1 Net total receivables $6 711.553 $9.575.896 $3_012 301 $780,593 $338,328 $2 ,360 $20 445 131 $1 117 360 $21"562 491
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$1,597,581 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, 2004
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, 2004 was $.59246 per $100 which means that the City has a tax margin of
$1.65754 per $100, and could raise up to $58,527,615 additional tax revenue a year from the
present assessed valuation of$3,530,992,589 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 $ 15,436,872
For Capital Improvements:
Cash and cash equivalents 77,189,556
Investments 20,177,447
Receivables 10,315
For Customer Deposits:
Cash and cash equivalents 2.321.698
Total $115,135.888
Note 7 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2004 was as follows:
39
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2004
Note 7 - CAPITAL ASSETS(CONT'D.)
Balance Balance
Governmental activities: October 1, September 30,
2003 Increases Decreases 2004
Capital assets not being depreciated:
Land $ 12,664,067 $ 3,700 $ - $ 12,667,767
Construction in progress 1,840,186 5,483,113 522.281 6.801.018
Total capital assets not being depreciated 14,504.253 5,486,813 522,281 19,468,785
Capital assets being depreciated:
Land betterments 10,794,753 - - 10,794,753
Buildings,systems and improvements 52,091,140 205,521 - 52,296,661
Infrastructure 85,338,992 2,949,771 90,586 88,198,177
Machinery and equipment 8,301,964 324,364 112,445 8,513,883
Furniture and fixtures 212,632 9,057 - 221,689
Motor vehicles 31.485 - - 31,485
Total capital assets being depreciated 156.770.966 3,488,713 203,031 160,056,648
Less accumulated depreciation for:
Land betterments 2,095,107 111,425 - 2,206,532
Buildings,systems and improvements 7,839,198 1,066,934 - 8,906,132
Infrastructure 49,500,920 1,995,578 79,453 51,417,045
Machinery and equipment 6,511,999 459,046 99,518 6,871,527
Furniture and fixtures 165,233 11,597 - 176,830
Motor vehicles 31.485 - - 31,485
Total accumulated depreciation 66,143.942 3.644,580 178,971 69,609,551
Total capital assets being depreciated, net 90,627.024 ( 155.867) 24,060 90,447,097
Governmental activities capital
assets, net $105.131,277 $5,330.946 $546,341 $109.915.882
40
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2004
Note 7 - CAPITAL ASSETS(CONTD.)
Balance Balance
Business-type activities: October 1, September 30,
2003 Increases Decreases 2004
Capital assets not being depreciated:
Land $ 8,102,346 $ - $ - $ 8,102,346
Construction in progress 7.966.712 17.342.538 1.254.247 24.055.003
Total capital assets not being depreciated 16.069.058 17.342.538 1.254.247 32.157.349
Capital assets being depreciated:
Land betterments 20,737,026 264,329 - 21,001,355
Buildings,systems and improvements 148,708,399 1,839,257 114,000 150,433,656
Machinery and equipment 4,790,006 259,388 4,896 5,044,498
Furniture and fixtures 48,553 - - 48,553
Motor vehicles 33.285.711 2.216.824 1.619.114 33.883.421
Total capital assets being depreciated 207.569.695 4.579.798 1.738.010 210.411,483
Less accumulated depreciation for:
Land betterments 9,419,320 344,880 - 9,764,200
Buildings,systems and improvements 59,178,851 2,778,132 114,000 61,842,983
Machinery and equipment 3,283,202 184,920 4,896 3,463,226
Furniture and fixtures 21,153 3,939 - 25,092
Motor vehicles 21.577.815 2.807.837 1.571.912 22.813.740
Total accumulated depreciation 93.480.341 6.119.708 1.690.808 97.909.241
Total capital assets being depreciated, net 114.089.354 ( 1.539.910) 47.202 112.502.242
Business-type activities capital
assets,net $130.158.412 $15.802.628 $1.301.449 $144.659,591
Depreciation expense was charged to functions as follows:
Governmental activities:
Administrative services $ 266,649
Police 181,154
Fire 120,350
Parks and recreation 68,870
Accounting/finance 96,184
Community development 31,754
Public works 1,781,592
Health 60,486
Traffic and transportation 231,115
MPEC 806.426
Total governmental depreciation $3.644.580
41
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2004
Note 7 - CAPITAL ASSETS(CONT'D.)
Business-type activities:
Golf $ 13,756
Municipal Airport 75,965
Kickapoo Airport 59,990
Transit 166,213
Sanitation 2,009,560
Water and sewer 3,787,238
Stormwater drainage 6,986
Total business-type depreciation $6.119.708
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 794 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 30,2004
Note 8 - RETIREMENT PLANS(CONTD.)
Contributions
The contribution rate for all employees is 5%, except police officers which is 7%, and the City
matching ratio is currently 2 to 1, both as adopted by the governing body of the City. Under the
state law governing TMRS, the actuary annually determines the City contribution rate. This rate
consists of the normal cost contribution rate and the prior service contribution rate, both of
which are calculated to be a level percent of payroll from year to year. The normal cost
contribution rate finances the currently accruing monetary credits due to the City matching
percent, which are the obligation of the City as of an employee's retirement date, not at the
time the employee's contributions are made. The normal cost contribution rate is the
actuarially determined percent of payroll necessary to satisfy the obligation of the City to each
employee at the time his/her retirement becomes effective. The prior service contribution rate
amortizes the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan's
25-year amortization period. When the City periodically adopts updated service credits and
increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over
a new 25-year period. The unit credit actuarial cost method is used for determining the City
contribution rate. Both the employees and the City make contributions monthly. Since the City
needs to know its contribution rate in advance to budget for it, there is a one-year delay
between the actuarial valuation that is the basis for the rate and the calendar year when the
rate goes into effect (i.e. December 31, 2003 valuation is effective for rates beginning January
2005).
Wichita Falls Firemen's Relief and Retirement Fund
Plan Description
The City provides pension benefits for all of its firefighters through a single employer defined
benefit pension plan. The Wichita Falls Firemen's Relief and Retirement Fund (Fund)operates
under an act passed in 1937 by the Texas State Legislature and adopted by the City's
firefighters.
Benefits are determined on a "formula"or a "final salary" plan. A firefighter who qualifies for a
retirement benefit will receive monthly retirement equal to 2.28% (2.10% prior to August 5,
1998) of 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 30,2004
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, 2000
was 35.9 years.
Schedule of Actuarial Liabilities and Funding Progress
Texas
Municipal Firemen's Total
Retirement Relief and (Memorandum
System Retirement Only)
Actuarial Valuation Date 12/31/03 12/31/02*
Actuarial Value of Assets $72,469,506 $27,439,565 $ 99,909,071
Actuarial Accrued Liability(AAL) 98,017,025 37,003,896 135,020,921
Percentage Funded 73.9% 74.2% 74.0%
Unfunded Actuarial Accrued Liability(UAAL) 25,547,519 9,564,331 35,111,850
Annual Covered Payroll 31,516,130 6,609,807 38,125,937
UAAL as a Percentage of Covered Payroll 81.1% 144.7% 92.1%
Net Pension Obligation (NPO)at
the Beginning of the Period -0- -0- -0-
Annual Pension Cost:
Annual Required Contribution (ARC) $ 4,262,660 $ 733,764 $ 4,996,424
Interest on NPO -0- -0- -0-
Adjustment to the ARC -0- -0- -0-
Annual Pension Cost $ 4,262.660 $ 733.764 $ 4.996.424
44
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2004
Note 8 - RETIREMENT PLANS(CONTD.)
Texas
Municipal Firemen's Total
Retirement Relief and (Memorandum
System Retirement Only)
Percentage of Annual Pension Costs Contributed 100% 100% 100%
Contributions Made $ 4,262,660 $ 733,764 $ 4,996,424
Increase in NPO -0- -0- -0-
NPO At the End of the Period S -0- $ -0- $ -0-
Two preceding years:
2002:
Annual Pension Cost $ 3,653,245 $ 711,831 $ 4,365,076
Percentage of Annual Pension Costs
Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
2001:
Annual Pension Cost $ 3,473,150 $ 670,703 $ 4,143,853
Percentage of Annual Pension
Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
*
The Wichita Falls Firemen's Relief and Retirement Fund has not had an actuarial valuation
since this date. A valuation is planned for December 31, 2004.
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 35.9 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, 2004
Note 9 - DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a
portion of their salary until future years. The deferred compensation is not available to the
employees until termination, retirement, death, or an unforeseen emergency.
Note 10 - AIRPORT LEASE
The Municipal Airport facilities are located on land at Sheppard Air Force Base. The land is
leased from the Department of the Air Force at a cost of$1.00 per year for a period of fifty years,
beginning May 15, 1959 and expiring May 14, 2009. Additional rent is based on landing fees at
a rate of $1.8264 per scheduled landing. Landing fees collected and paid on this lease were
$4,302 for the fiscal year ended September 30, 2004.
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, 2004.
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, 2004:
Year ending September 30:
2005 $128,813
2006 147,912
2007 78,253
2008 37,071
2009 13,935
2010—2013 3
Total minimum payments required $405.987
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, 2004:
Minimum rentals $177,128
Contingent rentals 4.302
Total rentals $181.430
46
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2004
Note 12 - LONG-TERM LIABILITIES
Long-term liabilities transactions for the year ended September 30, 2004 are summarized as
follows:
Balance at Balance at
October 1, Retired and September 30, Due Within
2003 Issued Transferred(1) 2004 One Year
Governmental Activities:
General obligation bonds $ 15,290,000 $ - $ 2,230,000 $ 13,060,000 $2,335,000
Combination tax and revenue bonds - 7,550,000 740,000 6,810,000 715,000
Note payable 288,739 - 54,553 234,186 56,114
Accrued vacation and sick
leave payable 5,597,386 1,622,323 1,660,231 5,559,478 -
Claims and judgments payable 718,504 1.488.583 1.555.265 651.822 440.968
Total governmental activities 21.894.629. 10.660.906 6.240.049 26.315.486 3.547,082
Business-tvoe Activities:
Utility system revenue bonds,
net of premium(discount) 168,368,339 - 23,620,441 144,747,898 3,669,709
Combination tax and revenue bonds - 19,900,889 - 19,900,889 851,398
Accrued vacation and sick
leave payable 411,527 487,323 472,483 426,367 -
Note payable 807,674 - 25,700 781,974 26,536
Landfill closure,post-closure costs 2.106.229 152.059 - 2.258.288 -
Total business-type activities 171.693.769 20.540.271 24.118.624 168.115.416 4.547.643
Total long-term liabilities $193 588 398 $31901 177 $30 358 673 $194.430.9Q2 $8,094 725
(1) Includes bond premium amortization of$85,440 relative to the revenue bonds payable.
The portion of long-term liabilities due within one year as reflected on Exhibit A-1 includes $66,574
and $1,287,906 of accrued interest in governmental activities and business-type activities,
respectively.
For governmental activities, claims and judgments payable and compensated absences are
generally liquidated by the General Fund.
Bonds Payable
Bonds payable at September 30, 2004, 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 9/30/04
General Obligation Bonds: •
General Obligation Refunding 4.10%- 9/01/06 $570,000 to $ 9,000,000 $ 2,205,000
Bonds,Series 1996 5.30% $1,130,000
General Obligation Construction 3.75%- 9/01/21 $175,000 to 10,205,000 9,180,000
and Refunding Bonds, Series 2001 5.375% $945,000
General Obligation Refunding 1.60%- 9/01/06 $775,000 to 2,450,000 1,675,000
Bonds,Series 2003 2.35% $860,000
Total General Obligation Bonds 13,060,000
47
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2004
Note 12 - LONG-TERM LIABILITIES(CONTD.)
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Payments Authorized at 9/30/04
Combination Tax and Revenue
Bonds:
Combination Tax and Revenue
Certificates of Obligation, 9/01/18 $335,000 to
Series 2003 $775,000 7,550,000 6,810,000
Combination Tax and Revenue 8/01/12 $685,000 to
Refunding Bonds,Series 2004 $3,645,000 18,840,000 18,840,000
Plus bond premium 1.060.889
Total Combination Tax and
Revenue Bonds 26.710.889
Revenue Bonds:
Water and Sewer Revenue Bonds:
Water and Sewer System 3.90%- 8/01/07 $95,000 to 12,830,000 4,135,000
Refunding Revenue Bonds, 5.20% $1,450,000
Series 1995
Water and Sewer System 4.10%- 8/01/07 $305,000 to 5,360,000 1,785,000
Refunding Revenue Bonds, 5.40% $625,000
Series 1996
Water&Sewer System 4.05%- 8/01/18 $180,000 to 5,500,000 4,285,000
Priority Lien Revenue Bonds, 4.65% $400,000
Series 1998E
Water&Sewer System 3.75%- 8/01/27 $1,220,000 to 118,770,000 114,620,000
Priority Lien Revenue 5.375% $11,515,000
Bonds,Series 2001
Plus bond premium 1,382,898
Water&Sewer Subordinate 3.35%- 8/01/16 $25,000 to 11,420,000 10,630,000
Lien Revenue Bonds, 4.95% $2,750,000
Series 1996
Water&Sewer Subordinate 3.14%- 8/01/18 $25,000 to 8,060,000 7,910,000
Lien Revenue Bonds, 4.59% $3,320,000
Series 1998
Total Revenue Bonds 144.747.898
Total All Bonds $184 518.787
48
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2004
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, 2004,
$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
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, 2004 is classified as
follows:
Long-term $755,438
Current portion 26.536
Total $781.974
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 30,2004
Note 12 - LONG-TERM LIABILITIES(CONT'D.)
Aggregate maturities of the long-term debt(principal and interest)for the years subsequent to September 30, 2004 are as follows:
Combination Tax and
Year Ending General Obligation Bonds Revenue Bonds Revenue Bonds Notes Payable Total
September 30. Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2005 $ 2,335,000 $ 577,171 $ 1,566,398 $ 748,759 $ 3,669,709 $ 7,240,609 $ 82,650 $ 32,104 $ 7,653,757 $ 8,598,643
2006 2,455,000 487,431 1,553,240 765,200 3,828,947 7,075,894 85,110 29,643 7,922,297 8,358,168
2007 880,000 387,569 1,579,786 732,204 4,013,084 6,896,435 87,645 27,109 6,560,515 8,043,317
2008 910,000 350,169 4,060,499 695,966 1,752,180 6,706,938 90,218 24,491 6,812,897 7,777,564
2009 945,000 312,631 3,754,351 589,839 1,811,394 6,639,743 30,161 21,813 6,540,906 7,564,026
u, 2010-2014 2,195,000 1,147,025 12,731,615 1,195,860 18,376,303 31,773,235 166,177 93,692 33,469,095 34,209,812
o 2015-2019 2,255,000 652,981 1,465,000 145,068 37,030,023 24,853,636 195,022 64,846 40,945,045 25,716,531
2020-2024 1,085,000 84,050 - - 47,407,293 14,348,574 228,874 30,994 48,721,167 14,463,618
2025-2029 - - - - 26.858.965 2.351.000 50.303 1.636 26.909.268 2.352.636
Totals $13.060.000 $3 999.027 $26.710.889 $4 872 896 $144.747.898 $107.886 064 $1.016.160 $326,328 5185 534 947 $117.084 315
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2004
Note 13 - DEFEASED DEBT
Current Year
On September 1, 2004, the City issued combination tax and revenue refunding bonds of
$18,840,000 (par value) with interest rates ranging from 1.60% to 2.35%. The debt was issued to
refund revenue bonds with interest rates ranging from 3.65% to 4.50% and a par value of
$19,465,000. The revenue bonds to be refunded mature through August 1, 2012, and were
callable on September 1, 2003. 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 $855,217
resulting in an economic gain (difference between the present value of the debt service payments
on the old and new debt)of$751,316.
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, 2004, $6,285,000 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 $2,258,288 as of September 30, 2004, which is based on 13% usage of
the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of
$15,253,019 as the remaining estimated capacity is filled. The landfill is expected to be filled to
capacity in 2153. Actual costs may be higher due to inflation, change in technology, or changes in
regulations.
Note 15 - INTERFUND BALANCES
Balances due to and due from other funds at September 30, 2004 consisted of the following:
Due To Fund Due From Fund Amount Purpose
General Fund Nonmajor Governmental Funds $ 901,551 Short-term loan
General Fund Nonmajor Enterprise Funds 119.532 Short-term loan
Total $1.021.083
51
L
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2004
Note 15 - INTERFUND BALANCES(CONTD.)
All amounts due are scheduled to be repaid within one year.
Balances due to and due from component units at September 30, 2004 consisted of the following:
Due To Fund Due From Fund Amount Purpose
Nonmajor Governmental Funds Wichita Falls 4B Sales Tax Corp. $5.351.790 Construction funding
The amount is scheduled to be repaid within one year.
Transfers to and from other funds during the year ended September 30, 2004 were as follows:
Transfers From Transfers To Amount Reason
General Fund Nonmajor Enterprise Funds $ 116,274 Fund operating deficit
General Fund Nonmajor Governmental Funds' 267,327 Supplement operating grants
General Fund Internal Service Funds 81,894 Purchase capital assets
Nonmajor Governmental Funds Nonmajor Governmental Funds 3,940,353 Fund construction costs
Nonmajor Governmental Funds Nonmajor Governmental Funds 355,504 Fund debt service payment
Nonmajor Governmental Funds Nonmajor Governmental Funds 32,498 Fund operating deficit
Nonmajor Governmental Funds Nonmajor Enterprise Funds 1,546,273 Purchase capital assets
Nonmajor Governmental Funds Nonmajor Enterprise Funds 1,214 Fund operating deficit
Nonmajor Governmental Funds Internal Service Funds 52,307 Purchase capital assets
Water and Sewer Fund General Fund 544,581 Administrative overhead
Water and Sewer Fund Nonmajor Governmental Funds 500,000 Fund debt service payment
Water and Sewer Fund Internal Service Funds 47,522 Purchase capital assets
Sanitation Fund General Fund 1,043,031 Administrative overhead
Sanitation Fund Internal Service Funds 475,000 Purchase capital assets
Sanitation Fund Internal Service Funds 293,360 Fund operating deficit
Nonmajor Enterprise Funds General Fund 8,295 Administrative overhead
Nonmajor Enterprise Funds Nonmajor Governmental Funds 138,418 Supplement operating grant
Nonmajor Enterprise Funds Internal Service Funds 170,970 Purchase capital assets
Internal Service Funds General Fund 312.000 Administrative overhead
Total $9.926.821
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.
However, the City was not successful in defending one lawsuit and has been ordered to pay
damages ranging from $117,000 to $142,000. Though the City intends on appealing the decision,
$117,000 has been accrued in the General Fund for this lawsuit.
52
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2004
Note 16 - COMMITMENTS AND CONTINGENCIES(CONT'D.)
Accrued Vacation and Sick Leave
The City's liability for accrued vacation and sick leave excluding the amount recorded in the
proprietary funds was $5,558,358 at September 30, 2004. 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, 2004, 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, 2004 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, 2004, the City paid $749,678 to the third party to fund these operating deficits.
53
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2004
Note 16 - COMMITMENTS AND CONTINGENCIES(CONTD.)
Construction Contracts
At September 30, 2004, 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 $ 1,079,997
Nonmajor Governmental Funds 9,873,761
Water and Sewer Fund 37,186,031
Sanitation Fund 1,311,627
Nonmajor Enterprise Funds 503,567
Internal Service Funds 605,913
Total contract commitments $50.560,896
Economic Development Contracts - Discretely Presented Component Units
At September 30, 2004, 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 $270,126
Wichita Falls 4B Sales Tax Corporation 500,000
Total contract commitments $770.126
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, 2004
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, 2004 is as
follows:
Wichita Falls Wichita Falls Multi-
Economic 4B Sales Wichita Falls Purpose
Development Tax Reinvestment Events
Corporation Corporation Zone#1 Center Totals
Condensed statement of net assets:
Cash,investments and other
current assets $14,199,532 $6,850,747 $583,765 $ 462,755 $22,096,799
Capital assets,net of accumulated
depreciation 1.229.679 - - 34.043 1.263.722
Total assets 15.429.211 6.850.747 583,765 496.798 23.360.521
Accounts payable and other
current liabilities 334,471 - - 480,517 814,988
Amount due to primary govemment - 5.351.789 - - 5.351.789
Total liabilities 334.471 5.351.789 - 480.517 6.166.777
Net assets $15.094.74Q $1 498 958 $583,765 $ 16,281 $17,193.744
Condensed statement of activities:
Expenses:
Multi-Purpose Events Center $ - $ - $ - $3,559,894 $ 3,559,894
Community development 1,715,469 6,607,831 195.000 - 8.518,300
Total expenses 1.715.469 6.607.831 195.000 3.559.894 12.078.194
Program revenues:
Charges for services - - - 2,849,725 2,849,725
Operating grants and
contributions - - - 749.678 749.678
Total program revenues - - - 3.599.403 3.599.403
Net program expense ( 1.715.469) ( 6,607,831) ( 195,000) 39.509 ( 8.478.791)
General revenues:
Tax revenues 2,865,450 2,865,450 229,658 - 5,960,558
Non-tax general revenues 143.147 74.690 5,690 1.848 225.375
Total general revenues and
transfers 3.008.597 2.940,140 235,348 1.848 6.185.933
Change in net assets 1,293,128 ( 3,667,691) 40,348 41,357 ( 2,292,858)
Beginning net assets 13.801.612 5.166.649 543.417 ( 25.076) 19,486,602
Ending net assets $15 094.740 $1.498 9.58 $583,765 $ 16,281 $17.193.744
55
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2004
Note 18 - PRIOR PERIOD ADJUSTMENTS
During the year ended September 30, 2004, the City continued the process of adding the historical
cost of infrastructure assets to the government-wide financial statements. The City added street
assets totaling $25,208,379 (net of accumulated depreciation) in the current year.
The City also discovered an error in a prior period related to accrued compensated absences.
The City had recorded $290,000 of this liability in the General Fund as an estimate of the current
portion. The City has now recorded all of the liability as general long-term debt on the
Government-wide Financial Statements. The adjustment related to this error increased fund
balance and decreased liabilities of the General Fund by$290,000 as of September 30, 2003.
Additionally, the Wichita Falls Economic Development Corporation discovered an error in a prior
period related to capital assets. The Corporation had acquired $1,229,679 in land in prior periods
for the construction of the Wichita Falls Business Park. The Corporation has now recorded this
asset on its financial statements. The adjustment increased capital assets and net assets of the
Corporation by$1,229,679 as of September 30, 2003.
56
Wichita
TEXAS nt
REQUIRED SUPPLEMENTAL
INFORMATION
Wichita`
TEXAS
EXHIBIT B-1
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 41,226,693 $ 41,923,410 $ 41,998,979 $ 75,569
Charges for services 2,305,193 2,314,193 2,270,842 (43,351)
Licenses and permits 2,220,093 2,234,093 2,292,695 58,602
Fines and forfeitures 1,502,300 1,671,657 2,019,219 347,562
Intergovernmental revenue 74,000 74,000 a 53,711 (20,289)
Contributions - - 880,852 880,852
Miscellaneous revenue 626,876 628,876 900,581 271,705
Total revenues 47,955,155 48,846,229 50,416,879 1,570,650
Expenditures:
Current:
Administrative services 7,866,601 9,101,589 8,927,792 173,797
Police 15,765,626 15,382,798 15,213,234 169,564
Fire 9,594,816 9,834,560 9,820,265 14,295
Parks and recreation 3,506,037 3,688,105 3,493,846 194,259
Accounting/finance 1,835,327 1,833,189 1,757,006 76,183
Community development 1,338,761 1,354,691 1,289,868 64,823
Public works 4,324,362 4,353,118 4,206,587 146,531
Health 2,403,259 2,361,932 2,358,905 3,027
Traffic and transportation 1,558,642 1,635,769 1,621,576 14,193
Capital outlay 1,593,798 3,113,410 2,719,510 393,900
Total expenditures 49,787,229 52,659,161 51,408,589 1,250,572
Excess of revenues over(under)expenditures (1,832,074) (3,812,932) (991,710) 2,821,222
Other financing sources (uses):
Transfers in 1,907,907 1,907,907 1,907,907 -
Transfers out (444,513) (397,790) (465,495) (67,705)
Total other financing sources(uses) 1,463,394 1,510,117 1,442,412 (67,705)
Excess of revenues and other sources
over(under)expenditures and other uses (368,680) (2,302,815) 450,702 2,753,517
Fund balance-beginning 10,282,972 10,282,972 10,282,972 -
Prior period adjustment - - 290,000 290,000
Fund balance-ending $ 9,914,292 $ 7,980,157 $ 11,023,674 $ 3,043,517
57
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2004
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 $2,871,932 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)
12/31/94 $ 42,728,204 $ 53,833,753 79.4% $ 11,105,549 $ 21,343,153 52.0%
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%
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)
4/30/95(a) $ 14,966,425 $ 17,882,791 83.7% $ 2,916,366.00 72.0%
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) - - - - - -
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 valuation,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
Wichita
vi
TEXAS . A
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.
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 finarced 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 Projects 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 30,2004
Special Revenue
Home
Community Investment HoteU Miscellaneous
Development Section 8 Partnership Motel Special
Block Grant Housing Agreement Tax Revenue
ASSETS
Cash and cash equivalents $ - $ 844,026 $ - $ 492,544 $ 1,795,230
Receivables:
Taxes and assessments - - - 97,867 -
Component Unit - - - - -
Government agencies 1,712,140 97,983 675,556 - 1,202,028
Other - 10,224 - - -
Prepaid items 18,732 - - - 1,025
Other assets - - - - 3,000
Total assets $ 1,730,872 $ 952,233 $ 675,556 $ 590,411 $ 3,001,283 •
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable-trade $ 70,959 $ (2,460) $ 9,441 $ - $ 194,943
Accrued payroll 6,030 8,203 2,352 - 59,882
Payable to other City funds 158,303 3,223 103,433 - 636,592
Payable to government agencies - 153,699 - - 2,787
Notes payable - - - - -
Other liabilities 1,187 - 44,744 - 349,904
Deferred revenue - - - - 48,364
Total liabilities 236,479 162,665 159,970 - 1,292,472
Fund balance:
Reserved for encumbrances 399,743 - - - 5,514
Reserved for prepaid items 18,732 - - - 1,025
Reserved for debt service - - - - -
Reserved for perpetual care - - - - -
Unreserved:
Designated for subsequent years expenditures 1,075,918 789,568 515,586 - 1,702,272
Undesignated - - - 590,411 -
Total fund balance 1,494,393 789,568 515,586 590,411 1,708,811
Total liabilities and fund balance $ 1,730,872 $ 952,233 $ 675,556 $ 590,411 $ 3,001,283
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
$ 373,861 $ 292,117 $ - $ 3,614,128 $ 4,683,792 $ 626,256 $ 12,721,954
117,673 - - - - - 215,540
- - 5,351,790 - - - 5,351,790
14,117 296,518 - - - - 3,998,342
- - - - - - 10,224
- - - _ - - 19,757
- - - - - - 3,000
$ 505,651 $ 588,635 $ 5,351,790 $ 3,614,128 $ 4,683,792 $ 626,256 $ 22,320,607
$ - $ - $ 2,170 $ - $ 3,623 $ - $ 278,676
- - - - - - 76,467
- - - - - - 901,551
- - - - - - 156,486
- - - - 234,186 - 234,186
- - 195,435 - 751,295 - 1,342,565
121,386 - - - - - 169,750
121,386 - 197,605 - 989,104 - 3,159,681
- - 5,154,185 3,614,128 300,000 - 9,473,570
- - - - 19,757
384,265 588,635 - - - - 972,900
- - - - 626,256 626,256
- - - - 3,394,688 - 7,478,032
- - _ - - 590,411
384,265 588,635 5,154,185 3,614,128 3,694,688 626,256 19,160,926
$ 505,651 $ 588,635 $ 5,351,790 $ 3,614,128 $ 4,683,792 $ 626,256 $ 22,320,607
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2004
Special Revenue
Home
Community Investment Hotel/ Miscellaneous
Development Section 8 Partnership Motel Special
Block Grant Housing Agreement Tax Revenue
Revenues:
Taxes $ - $ - $ - $ 1,255,498 $ -
Charges for services 12,307 - - - 169,204
Fines and forfeitures - - - - 169,782
Intergovernmental revenue 1,620,000 4,516,760 577,586 - 4,676,783
Contributions - - - - 158,851
Miscellaneous revenue 196,909 18,541 86,606 6,483 535,101
Total revenues 1,829,216 4,535,301 664,192 1,261,981 5,709,721
Expenditures:
Current:
Administrative services 89,000 - - 122,542 191,297
Police - - - - 731,007
Fire 595 - - - 30,343
Parks and recreation 110,596 - - - 408,284
Community development 752,345 4,462,094 783,643 - 849,722
Public works 174,325 - - - 42,668
Health 102,180 - - - 1,991,422
Traffic and transportation - - - - 146,760
MPEC Coliseum - - - 749,678 -
Capital outlay 134,502 - - - 181,783
Debt service:
Principal retirement - - - - -
Interest and paying agent fees - - - - -
Total expenditures 1,363,543 4,462,094 783,643 872,220 4,573,286
Excess of revenues over(under)expenditures 465,673 73,207 (119,451) 389,761 1,136,435
Other financing sources(uses):
Transfers in - - - - 438,243
Transfers out - - - (286,163) (1,616,905)
Proceeds of general obligation bonds - - - - -
Total other financing sources(uses) - - - (286,163) (1,178,662)
Excess of revenues and other sources
over(under)expenditures and other uses 465,673 73,207 (119,451) 103,598 (42,227)
Fund balance-beginning 1,028,720 716,361 635,037 486,813 1,751,038
Fund balance-ending $ 1,494,393 $ 789,568 $ 515,586 $ 590,411 $ 1,708,811
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
$ 1,961,954 $ 296,518 $ - $ - $ - $ - $ 3,513,970
- - - - - 181,511
- - - - - - 169,782
- - - - - 11,391,129
1,038,777 - 4,810,674 - 604,604 - 6,612,906
16,734 3,158 16,800 51,114 140,683 34,593 1,106,722
3,017,465 299,676 4,827,474 51,114 745,287 34,593 22,976,020
- - - - - - 402,839
- - 7,090 45,633 - - 783,730
- - - - - - 30,938
- - 3,668 - - - 522,548
- - - - - 6,847,804
- - - 65,124 - 282,117
- - - - - 2,093,602
- - - - - 146,760
- - - 33,566 - 783,244
- - 5,199,857 - - - 5,516,142
2,970,000 - - - - - 2,970,000
827,711 - - - 72,815 - 900,526
3,797,711 - 5,210,615 45,633 171,505 - 21,280,250
(780,246) 299,676 (383,141) 5,481 573,782 34,593 1,695,770
855,504 - 3,940,353 - - - 5,234,100
- - - (3,940,353) (84,727) - (5,928,148)
- - - 7,549,000 - - 7,549,000
855,504 - 3,940,353 3,608,647 (84,727) - 6,854,952
75,258 299,676 3,557,212 3,614,128 489,055 34,593 8,550,722
309,007 288,959 1,596,973 - 3,205,633 591,663 10,610,204
$ 384,265 $ 588,635 $ 5,154,185 $ 3,614,128 $ 3,694,688 $ 626,256 $ 19,160,926
Wichita'
,CAS
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 30,2004
Municipal Kickapoo
Golf Airport Airport
ASSETS
Current assets:
Cash and cash equivalents $ - $ 347,092 $ 130,713
Receivables (net of allowance for
uncollectible accounts):
Customer and trade - - -
Government agencies - - -
Other - 32,757 30,407
Inventory 105,894 - 51,511
Prepaid items 963 2,233 6,664
Total current assets 106,857 382,082 219,295
Capital assets, net of accumulated depreciation 78,139 684,381 2,900,514
Total assets 184,996 1,066,463 3,119,809
LIABILITIES
Current liabilities payable from current assets:
Accounts payable-trade 34,961 5,169 13,135
Accrued payroll 12,036 993 3,198
Accrued vacation and sick leave 11,940 3,585 5,870
Payable to other City funds 28,125 - -
Payable to government agencies 2,767 (2,045) 406
Other liabilities 5,522 - 7,113
Total current liabilities payable
from current assets 95,351 7,702 29,722
Net assets:
Invested in capital assets 78,139 684,381 2,900,514
Unrestricted 11,506 374,380 189,573
Total net assets $ 89,645 $ 1,058,761 $ 3,090,087
63
EXHIBIT D-1
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ - $ 716,053 $ 1,193,858
- 95,185 95,185
179,979 - 179,979
- - 63,164
- - 157,405
9,860
179,979 811,238 1,699,451
668,818 2,710,232 7,042,084
848,797 3,521,470 8,741,535
5,252 32,737 91,254
15,099 791 32,117
16,878 - 38,273
91,407 - 119,532
- - 1,128
- 72,543 85,178
128,636 106,071 367,482
668,818 2,710,232 7,042,084
51,343 705,167 1,331,969
$ 720,161 $ 3,415,399 $ 8,374,053
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2004
Municipal Kickapoo
Golf Airport Airport
Operating revenues:
Charges for services $ 567,298 $ - $ 3,807
Rents, concessions and other 110,202 416,575 382,062
Total operating revenues 677,500 416,575 385,869
Operating expenses:
Personnel services 481,294 41,295 166,779
Supplies and materials 88,024 3,824 3,464
Maintenance and repairs 29,559 65,871 25,415
Utilities and other services 94,550 53,436 64,560
Insurance and contract support 4,824 9,753 23,593
Other expenses 48,734 36,558 33,284
Depreciation and amortization 13,755 75,521 50,487
Total operating expenses 760,740 286,258 367,582
Operating income (loss) (83,240) 130,317 18,287
Nonoperating revenues (expenses):
Interest income 100 4,046 1,785
Intergovernmental operating grants - - -
Total nonoperating revenues (expenses) 100 4,046 1,785
Income(loss)before transfers (83,140) 134,363 20,072
Transfers:
Transfers in - - 1,546,273
Transfers out (8,295) (103,000) (35,418)
Net transfers (8,295) (103,000) 1,510,855
Net income (loss) (91,435) 31,363 1,530,927
Net assets- beginning 181,080 1,027,398 1,559,160
Net assets- ending $ 89,645 $ 1,058,761 $ 3,090,087
64
EXHIBIT D-2
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 194,388 $ 1,036,451 $ 1,801,944
908,839
194,388 1,036,451 2,710,783
628,560 30,108 1,348,036
107,272 - 202,584
136,324 2,762 259,931
47,207 67,045 326,798
44,759 - 82,929
37,261 5,181 161,018
24,867 6,986 171,616
1,026,250 112,082 2,552,912
(831,862) 924,369 157,871
16,780 22,711
937,025 - 937,025
937,025 16,780 959,736
105,163 941,149 1,117,607
117,488 - 1,663,761
(170,970) - (317,683)
(53,482) - 1,346,078
51,681 941,149 2,463,685
668,480 2,474,250 5,910,368
$ 720,161 $ 3,415,399 $ 8,374,053
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2004
Municipal Kickapoo
Golf Airport Airport
Cash flows from operating activities:
Receipts from customers and users $ 677,592 $ 408,616 $ 383,349
Payments to suppliers (335,899) (203,348) (229,029)
Payments to employees (397,740) (31,581) (128,562)
Net cash provided (used)by operating activities (56,047) 173,687 25,758
Cash flows from noncapital financing activities:
Intergovernmental operating grants - - 1,546,273
Transfers out to other funds (8,295) (103,000) (35,418)
Transfers from other funds - -Net cash provided (used)by noncapital financing activities (8,295) (103,000) 1,510,855
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets - (21,122) (1,546,273)
Net cash provided by(used for)capital
and related financing activities - (21,122) (1,546,273)
Cash flows from investing activities:
Interest on investments 100 4,046 1,785
Net cash provided by investing activities 100 4,046 1,785
Net Increase(Decrease)in Cash and Cash Equivalents (64,242) 53,611 (7,875)
Cash and Cash Equivalents-Beginning 64,242 293,481 138,588
Cash and Cash Equivalents-Ending $ - $ 347,092 $ 130,713
65
EXHIBIT D-3
(Page 1 of 2)
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 194,408 $ 1,034,377 $ 2,698,342
(421,809) (48,920) (1,239,005)
(484,890) (23,597) (1,066,370)
(712,291) 961,860 392,967
812,302 - 2,358,575
(170,970) - (317,683)
117,488 - 117,488
758,820 - 2,158,380
(59,004) (2,591,505) (4,217,904)
(59,004) (2,591,505) (4,217,904)
16,780 22,711
16,780 22,711
(12,475) (1,612,865) (1,643,846)
12,475 2,328,918 2,837,704
$ - $ 716,053' $ 1,193,858
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS(CONT'D.)
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2004
Municipal Kickapoo
Golf Airport Airport
Cash flows from operating activities:
Pe 9
Operating income(loss) $ (83,240) $ 130,317 $ 18,287
Adjustments to reconcile operating income (loss)
to net cash provided by(used in)operating
activities:
Depreciation and amortization 13,755 75,521 50,487
Customer deposits received - - 384
(Increase)decrease in current assets:
Receivables:
Customer and trade - - -
Other 93 (7,960) (2,907)
Inventory (27,397) - (32,658)
Prepaid items (963) 393 (2,256)
Increase(decrease)in current liabilities:
Accounts payable-trade 9,650 (21,716) (8,493)
Accrued payroll 3,041 301 425
Accrued vacation and sick leave 1,264 1,079 284
Payable to other City funds 28,125 - -
Payable to government agencies (402) (4,248) 237
Other liabilities 27 - 1,968
Total adjustments 27,193 43,370 7,471
Net cash provided by(used in)
operating activities $ (56,047) $ 173,687 $ 25,758
66
EXHIBIT D-3
(Page 2 of 2)
Stormwater
Transit Drainage Totals
$ (831,862) $ 924,369 $ 157,871
24,867 6,986 171,616
- - 384
(2,073) (2,073)
20 - (10,754)
- - (60,055)
- - (2,826)
69 31,787 11,297
3,208 791 7,766
- - 2,627
91,407 - 119,532
- - (4,413)
- - 1,995
119,571 37,491 235,096
$ (712,291) $ 961,860 $ 392,967
Wichita
AL
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 30,2004
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
ASSETS
Current assets:
Cash and cash equivalents $ 1,046,121 $ 89,283 $ 856,048 $ 1,991,452
Receivables:
Other 15,869 - 10,491 26,360
Inventory776 297 9 00 - 8 5,3 7 5, 97
Prepaid items 9,533 14,815 - 24,348
Total current assets 1,847,820 113,398 866,539 2,827,757
Capital assets, net of accumulated depreciation 14,125,472 91,292 2,930 14,219,694
Total assets 15,973,292 204,690 869,469 17,047,451
LIABILITIES
Current liabilities:
Accounts payable-trade 300,433 3,702 22,170 326,305
Accrued payroll 41,482 1,704 3,659 46,845
Accrued vacation and sick leave 62,031 1,120 - 63,151
Estimated health claims payable - - 835,784 835,784
Other liabilities 300 - - 300
Total current liabilities 404,246 6,526 861,613 1,272,385
NET ASSETS
Invested in capital assets 14,125,472 91,292 2,930 14,219,694
Unrestricted 1,443,574 106,872 4,926 1,555,372
Total net assets $ 15,569,046 $ 198,164 $ 7,856 $ 15,775,066
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, 2004
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Operating revenues:
Charges for services $ 7,297,411 $ 280,861 $ 37,247 $ 7,615,519
Rents,concessions and other 81,935 - 316,635 398,570
Contributions 518,134 - 7,168,765 7,686,899
Total operating revenues 7,897,480 280,861 7,522,647 15,700,988
Operating expenses:
Personnel services 1,643,142 67,842 151,319 1,862,303
Supplies and materials 2,214,865 55,942 6,207 2,277,014
Maintenance and repairs 1,713,143 14,641 - 1,727,784
Utilities and other services 89,385 165 10,712 100,262
Insurance and contract support 76,413 - 7,356,297 7,432,710
Other expenses 147,337 122,561 7,156 277,054
Depreciation and amortization 2,888,083 8,495 532 2,897,110
Total operating expenses 8,772,368 269,646 7,532,223 16,574,237
Operating income(loss) (874,888) 11,215 (9,576) (873,249)
Nonoperating revenues(expenses):
Interest income - - 6,371 6,371
Gain on sale of capital assets 95,876 - - 95,876
Total nonoperating revenues
(expenses) 95,876 - 6,371 102,247
Income(loss)before transfers (779,012) 11,215 (3,205) (771,002)
Transfers:
Transfers in 1,104,943 16,109 - 1,121,052
Transfers out (312,000) - - (312,000)
Total transfers 792,943 16,109 - 809,052
Net income(loss) 13,931 27,324 (3,205) 38,050
Net assets-beginning 15,555,115 170,840 11,061 15,737,016
Net assets-ending $ 15,569,046 $ 198,164 $ 7,856 $ 15,775,066
68
EXHIBIT E-3
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2004
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Cash flows from operating activities:
Receipts from customers and users $ 7,902,247 $ 280,860 $ 7,915,113 $ 16,098,220
Payments to suppliers (4,632,191) (225,616) (7,429,275) (12,287,082)
Payments to employees (1,287,143) (50,793) (117,882) (1,455,818)
Net cash provided by operating activities 1,982,913 4,451 367,956 2,355,320
Cash flows from noncapital financing activities:
Transfers in from other funds 1,104,943 16,109 - 1,121,052
Transfers out to other funds (312,000) - - (312,000)
Net cash provided by noncapital financing activities 792,943 16,109 - 809,052
Cash flows from capital and related
financing activities:
Acquisition of capital assets (2,216,824) (16,000) (1,379) (2,234,203)
Proceeds from sale of fixed assets 143,081 - - 143,081
Net cash used for capital and
related financing activities (2,073,743) (16,000) (1,379) (2,091,122)
Cash flows from investing activities:
Interest on investments - - 6,371 6,371
Net Increase in Cash and Cash Equivalents 702,113 4,560 372,948 1,079,621
Cash and Cash Equivalents-Beginning 344,008 84,723 483,100 911,831
Cash and Cash Equivalents-Ending $ 1,046,121 $ 89,283 $ 856,048 $ 1,991,452
Cash flows from operating activities:
Operating income(loss) $ (874,888) $ 11,215 $ (9,576) $ (873,249)
Adjustments to reconcile operating income to net
cash provided(used)by operating activities:
Depreciation and amortization 2,888,083 8,495 532 2,897,110
(Increase)decrease in current assets:
Receivables:
Other City funds - - 402,957 402,957
Other 4,768 - (10,491) (5,723)
Inventory (12,622) (93) - (12,715)
Prepaid items (934) (12,104) - (13,038)
Increase(decrease)in current liabilities:
Accounts payable-trade (29,312) (3,519) 1,753 (31,078)
Accrued payroll 6,398 621 996 8,015
Accrued vacation and sick leave 1,420 (164) - 1,256
Estimated health claims payable - - (18,215) (18,215)
Total adjustments 2,857,801 (6,764) 377,532 3,228,569
Net cash provided by
operating activities $ 1,982,913 $ 4,451 $ 367,956 $ 2,355,320
69
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, 2004
Balance Balance
10/01/2003 Additions Deductions 09/30/2004
ESCHEATMENT FUND
Assets
Cash and cash equivalents $ 30,910 $ 8,705 $ 1,092 $ 38,523
Liabilities
Other liabilities $ 30,910 $ 8,705 $ 1,092 $ 38,523
70
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-Pupose 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.
Q 1
.i.,,
.04 - '
13,
EXHIBIT G-1
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET ASSETS
COMPONENT UNITS
SEPTEMBER 30,2004
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 $ 13,704,684 $ 6,355,899 $ 554,735 $ 309,508 $ 20,924,826
Receivables:
Taxes and assessments - - 29,030 - 29,030
Government agencies 494,848 494,848 - - 989,696
Other - - - 98,634 98,634
Inventory - - - 41,576 41,576
Prepaid items - - - 3,577 3,577
Other assets - - - 9,460 9,460
Capital assets,net of accumulated depreciation 1,229,679 - - 34,043 1,263,722
Total assets 15,429,211 6,850,747 583,765 496,798 23,360,521 ,
Liabilities
Accounts payable-trade 334,471 - - 118,226 452,697
Accrued payroll - - - 25,332 25,332
Payable to primary government - 5,351,789 - - 5,351,789
Payable to government agencies - - - 263,732 263,732
Other liabilities - - - 21,560 21,560
Long-term liabilities - - - 51,667 51,667
Total liabilities 334,471 5,351,789 - 480,517 6,166,777
Net assets
Investment in capital assets,net of related debt 1,229,679 - - 34,043 1,263,722
Unrestricted 13,865,061 1,498,958 583,765 (17,762) 15,930,022
Total net assets $ 15,094,740 $ 1,498,958 $ 583,765 $ 16,281 $ 17,193,744
I li
71
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Program Revenue
Operating
Charges for Grants and
Expenses Services Contributions
Community development
Wichita Falls Economic Development Corporation $ 1,715,469 $ - $ -
Wichita Falls 4B Sales Tax Corporation 6,607,831 - -
Wichita Falls Reinvestment Zone#1 195,000 - -
Total community development 8,518,300 - -
Multi-Purpose Events Center
WF/WC Multi-Purpose Events Center 3,559,894 2,849,725 749,678
Total component units $ 12,078,194 $ 2,849,725 $ 749,678
General revenues:
Taxes:
Property tax
Sales tax
Investment earnings
Total general revenues
Change in net assets
Net assets-beginning
Prior period adjustment
Net assets-ending
72 I
EXHIBIT G-2
Net(Expense)Revenue and
Changes in Net Assets
Wichita Falls WFNVC
Economic Wichita Falls Wichita Falls Mulit-Purpose
Development 4B Sales Tax Reinvestment Events
Corporation Corporation Zone#1 Center Totals
$ (1,715,469) $ - $ - $ - $ (1,715,469)
- (6,607,831) - - (6,607,831)
- - (195,000) - (195,000)
(1,715,469) (6,607,831) (195,000) - (8,518,300)
- - - 39,509 39,509
(1,715,469) (6,607,831) (195,000) 39,509 (8,478,791)
- - 229,658 - 229,658
2,865,450 2,865,450 - - 5,730,900
143,147 74,690 5,690 1,848 225,375
3,008,597 2,940,140 235,348 1,848 6,185,933
1,293,128 (3,667,691) 40,348 41,357 (2,292,858)
12,571,933 5,166,649 543,417 (25,076) 18,256,923
1,229,679 - - - 1,229,679
$ 15,094,740 $ 1,498,958 $ 583,765 $ 16,281 $ 17,193,744
W_ ichita'
�n
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES
SEPTEMBER 30,2004
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(1)
2005 $ 2,335,000 $ 577,171 $ 2,912,171 $ 1,566,398 $ 749,119 $ 2,315,517 $ 3,509,709
2006 2,455,000 487,431 2,942,431 1,553,240 765,200 2,318,440 3,658,947
2007 880,000 387,569 1,267,569 1,579,786 732,204 2,311,990 3,838,084
2008 910,000 350,169 1,260,169 4,060,499 695,966 4,756,465 1,702,180
2009 945,000 312,631 1,257,631 3,754,351 589,839 4,344,190 1,761,394
2010 745,000 273,650 1,018,650 3,870,618 455,672 4,326,290 1,850,579
2011 340,000 241,987 581,987 3,982,287 354,178 4,336,465 1,919,611
2012 355,000 227,113 582,113 4,108,710 235,200 4,343,910 1,998,606
2013 370,000 210,694 580,694 435,000 82,800 517,800 3,452,440
2014 385,000 193,581 578,581 335,000 68,010 403,010 3,630,067
2015 405,000 175,775 580,775 345,000 56,118 401,118 3,817,567
2016 425,000 154,512 579,512 360,000 43,525 403,525 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
2022 - - - - - - 9,456,786
2023 - - - - - - 9,924,985
2024 - - - - - - 10,442,382
2025 - - - - - - 10,989,377
2026 - - - - - - 11,526,453
2027 - - - - - - 4,343,135
$ 13,060,000 $3,999,027 $ 17,059,027 $26,710,889 $ 4,873,256 $31,584,145 $ 126,207,899
(1)Includes amortization of bond premium of$1,060,889.
(2)Includes amortization of bond premium of$1,382,899.
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
$ 6,359,888 $ 9,869,597 $ 160,000 $ 880,721 $ 1,040,721 $ 7,571,107 $ 8,566,899 $ 16,138,006
6,201,857 9,860,804 170,000 874,037 1,044,037 7,837,187 8,328,525 16,165,712
6,029,678 9,867,762 175,000 866,756 1,041,756 6,472,870 8,016,207 14,489,077
5,847,841 7,550,021 50,000 859,097 909,097 6,722,679 7,753,073 14,475,752
5,782,781 7,544,175 50,000 856,961 906,961 6,510,745 7,542,212 14,052,957
5,715,176 7,565,755 50,000 854,777 904,777 6,516,197 7,299,275 13,815,472
5,636,226 7,555,837 50,000 852,554 902,554 6,291,898 7,084,945 13,376,843
5,553,869 7,552,475 50,000 850,294 900,294 6,512,316 6,866,476 13,378,792
5,459,546 8,911,986 2,625,000 847,997 3,472,997 6,882,440 6,601,037 13,483,477
5,280,780 8,910,847 2,750,000 722,016 3,472,016 7,100,067 6,264,387 13,364,454
5,092,463 8,910,030 2,885,000 588,538 3,473,538 7,452,567 5,912,894 13,365,461
4,893,706 8,908,637 3,025,000 446,960 3,471,960 7,824,931 5,538,703 13,363,634
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
$ 97,934,617 $ 224,142,516 $ 18,540,000 $ 9,951,446 $28,491,446 $ 184,518,788 $ 116,758,346 $ 301,277,134
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30,2004
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 815,000 (2005)
860,000 (2006)
Total General Obligation Bonds
74
EXHIBIT H-2
(Page 1 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
$ 9,000,000 $ 9,000,000 $ 6,795,000 $ 2,205,000
10,205,000 10,205,000 1,025,000 9,180,000
2,450,000 2,450,000 775,000 1,675,000
21,655,000 21,655,000 8,595,000 13,060,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.)
SEPTEMBER 30,2004
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
Total Combination Tax and Revenue Bonds
Revenue Bonds:
Priority Lien:
Water and Sewer System 3.90,4.00,4.20,4.30, 06/01/95 08/01/07 95,000 (1996)
Refunding Revenue Bonds, 4.50,4.60,4.70,4.80, 920,000 (1997)
Series 1995 5.00,5.10,5.20 960,000 (1998)
(2/1,8/1) 1,000,000 (1999)
1,045,000 (2000)
1,090,000 (2001)
1,140,000 (2002)
1,195,000 (2003)
1,250,000 (2004)
1,310,000 (2005)
1,375,000 (2006)
1,450,000 (2007)
75
EXHIBIT H-2
(Page 2 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
7,550,000 7,550,000 740,000 6,810,000
18,840,000 18,840,000 - 18,840,000
1,060,889 - 1,060,889
26,390,000 27,450,889 740,000 26,710,889
12,830,000 12,830,000 8,695,000 4,135,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30,2004
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Water and Sewer System 4.10,4.40,4.60,4.70, 04/01/96 08/01/07 305,000 (1997)
Refunding Revenue Bonds, 4.80,4.90,5.00,5.10, 405,000 (1998)
Series 1996 5.20,5.30,5.40 425,000 (1999)
(2/1,8/1) 440,000 (2000)
465,000 (2001)
490,000 (2002)
510,000 (2003)
535,000 (2004)
565,000 (2005)
595,000 (2006)
625,000 (2007)
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 1998B (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)
76
EXHIBIT H-2
(Page 3 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
5,360,000 5,360,000 3,575,000 1,785,000
5,500,000 5,500,000 1,215,000 4,285,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30,2004
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Water and Sewer System 3.75,4.00,4.375,4.50 09/01/01 08/01/27 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
Subordinate Lien:
Water and Sewer Subordinate Lien 3.35,3.60,3.75,3.85, 06/01/96 08/01/16 100,000 (1998)
Revenue Bonds,Series 1996 3.95,4.05,4.15,4.25, 100,000 (1999)
4.35,4.45,4.55,4.65, 105,000 (2000)
4.70,4.75,4.80,4.85, 110,000 (2001)
4.90,4.95,4.95 115,000 (2002)
(2/1,8/1) 125,000 (2003)
135,000 (2004)
135,000 (2005)
145,000 (2006)
150,000 (2007)
25,000 (2008)
25,000 (2009)
25,000 (2010)
25,000 (2011)
25,000 (2012)
2,300,000 (2013)
2,440,000 (2014)
2,585,000 (2015)
2,750,000 (2016)
77
EXHIBIT H-2
(Page 4 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
118,770,000 118,770,000 4,150,000 114,620,000
1,634,193 251,294 1,382,899
142,460,000 144,094,193 17,886,294 126,207,899
11,420,000 11,420,000 790,000 10,630,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30,2004
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
78
EXHIBIT H-2
(Page 5 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
8,060,000 8,060,000 150,000 7,910,000
19,480,000 19,480,000 940,000 18,540,000
161,940,000 163,574,193 18,826,294 144,747,899
$ 209,985,000 $ 212,680,082 $ 28,161,294 $ 184,518,788
,
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EXHIBIT H-3
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE COVERAGE - REVENUE BONDS
SEPTEMBER 30, 2004
Water and Sewer Revenue Bonds:
Change in net assets (Exhibit A-8) $ 3,336,672
Add:
Depreciation and amortization $ 3,157,362
Interest expense and paying agent fees 8,214,627
Transfers out 1,092,102 12,464,091
Subtract:
West Texas Utilities water revenues 485,563
Gain on sale/abandonment of capital assets 18,114
Capital contributions from developers 376,437 (880,114)
Net earnings for determining debt service coverage $ 14,920,649
Priority Subordinate
Lien Bonds Lien Bonds
Net earnings for determining debt service coverage $14,920,649
Principal and interest requirements to maturity $ 224,142,516 $28,491,446
Number of years remaining to pay bonds 23 14
Average annual principal and interest requirement 9,745,327 2,035,103
Minimum bond covenant debt service coverage 1.25 1.10
Minimum debt service coverage requirement $ 12,181,658 $ 2,238,614 14,420,272
Excess over debt service coverage requirements $ 500,377
79
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
SEPTEMBER 30,2004
Buildings Machinery
Land and and and
Betterments Improvements Equipment
Administrative services:
Mayor and City Council S - $ 3,797 $ 2,901
City Manager 1,062,849 336,872 49,516
PersonnelRisk Management - - 14,036
Martin Luther King Center - 349,839 7,641
Library 477,942 4,523,930 618,102
General Public Information - - 290,532
Building Maintenance - 1,076,622 32,367
Nondepartmental - 518,881 181,299
Municipal Court 230,000 313,818 183,338
Legal - - 2,254
City Clerk - - 6,700
Homeland security - - 11,352
Total administrative services 1,770,791 7,123,759 1,400,038
Police 1,112,592 1,374,498 3,283,553
Fire 252,459 5,710,267 280,694
Parks and recreation:
Recreation 655,246 1,903,345 255,657
Park maintenance 8,946,251 1,016,451 52,900
Cemetery 20,200 - 11,115
Total parks and recreation 9,621,697 2,919,796 319,672
Accounting/finance:
Accounting/finance - - 13,265
Information Systems - - 1,922,926
Total accounting/finance - - 1,936,191
Community development:
Planning - - 80,670
Inspection - - 39,338
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 1,161,884 420,891 268,487
Public works:
Engineering 125,806 18,837 136,088
Street maintenance 28,547 86,373 20,692
Infrastructure - - -
Total public works 154,353 105,210 156,780
Health:
Administration 34,820 1,008,175 256,158
General City nursing 76,411 1,123 94,746
Environmental health - - 30,014
Lab water pollution - - 41,893
Total health 111,231 1,009,298 422,811
Traffic and transportation - 31,045 117,954
Multi-Purpose Events Center 9,277,513 33,601,897 327,703
Wichita Falls Business Park - - -
Total capital assets used in the operation of governmental funds $ 23,462,520 $ 52,296,661 $ 8,513,883
80
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 - - - 5,710,553
3,184 - - - 293,716
- - - - 1,108,989
- - - - 700,180
4,043 - - - 731,199
- - - - 2,254
- - - - 6,700
- - - - 11,352
133,985 - - - 10,428,573
11,788 - - 6,622,184 12,404,615
1,755 - - - 6,245,175
12,818 - - - 2,827,066
- - - - 10,015,602
- - - - 31,315
12,818 - - - 12,873,983
-
- - - 13,265
- - - - 1,922,926
- - - - 1,936,191
1,025 - - - 81,695
- - - - 39,338
- - - - 73,892
- 31,485 - - 1,673,756
- - - - 1,018
- - - - 14,073
1,025 31,485 - - 1,883,772
3,355 - - - 284,086
1,393 - - - 137,005
- - 80,843,743 - 80,843,743
4,748 - 80,843,743 - 81,264,834
21,835 - - 14,960 1,335,948
5,447 - - - 177,727
- - - - 30,014
- - - - 41,893
27,282 - - 14,960 1,585,582
- - 7,354,434 - 7,503,433
28,288 - - - 43,235,401
- - - 163,874 163,874
$ 221,689 $ 31,485 $ 88,198,177 $ 6,801,018 $ 179,525,433
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 30,2004
Beginning Ending
Balance Balance
10/01/2003 Additions Deletions Adjustments 09/30/2004
Administrative services:
Mayor and City Council $ 11,916 $ - $ - $ - $ 11,916
City Manager 1,464,287 - - - 1,464,287
PersonneLRisk Management 17,461 - - - 17,461
Martin Luther King Center 369,966 - - - 369,966
Library 5,715,820 47,668 52,935 - 5,710,553
General Public Information 240,017 53,699 - - 293,716
Budding Maintenance 1,104,758 4,231 - - 1,108,989
Nondepartmental 684,740 15,440 - - 700,180
Municipal Court 726,416 4,783 - - 731,199
Legal 2,254 - - - 2,254
City Clerk 6,700 - - - 6,700
Homeland security - 11,352 - - 11,352
Total administrative services 10,344,335 137,173 52,935 - 10,428,573
Police 7,198,004 5,222,002 15,391 - 12,404,615
Fire 6,140,754 104,421 - - 6,245,175
Parks and recreation:
Recreation 2,815,997 11,069 - - 2,827,066
Park maintenance 10,012,602 3,000 - - 10,015,602
Cemetery 31,315 - - - 31,315
Total parks and recreation 12,859,914 14,069 - - 12,873,983
Accounting/finance:
Accounting/finance 13,265 - - - 13,265
Information Systems 1,865,216 75,603 17,893 - 1,922,926
Purchasing - - - - -
Total accounting/finance 1,878,481 75,603 17,893 - 1,936,191
Community development:
Planning 81,695 - - - 81,695
Inspection 36,618 2,720 - - 39,338
Code enforcement 73,892 - - - 73,892
Property management 1,683,089 1,199 10,532 - 1,673,756
Lake lot administration 1,018 - - - 1,018
Weed and Seed program 5,171 8,902 - - 14,073
Total community development 1,881,483 12,821 10,532 - 1,883,772
Public works:
Engineering 284,086 - - - 284,086
Street maintenance 137,005 - - - 137,005
Infrastructure 78,528,731 2,315,012 - - 80,843,743
Total public works 78,949,822 2,315,012 - - 81,264,834
Health:
Administration 1,283,717 57,529 5,298 - 1,335,948
General city nursing 182,220 - 4,493 - 177,727
Environmental health 30,014 - - - 30,014
Lab water pollution 41,893 - - - 41,893
Total health 1,537,844 57,529 9,791 - 1,585,582
Traffic and transportation 7,277,347 320,637 94,551 - 7,503,433
Multi-Purpose Events Center 43,205,297 30,104 - - 43,235,401
Wichita Falls Business Park - 163,874 - - 163,874
Total capital assets $ 171,273,281 $ 8,453,245 $ 201,093 $ - $ 179,525,433
81
EXHIBIT H-6
CITY OF WICHITA FALLS, TEXAS
GOLF FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30,2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
Capital Assets:
Land and betterments $ 48,019 $ - $ - $ 48,019
Buildings and improvements 13,267 - - 13,267
Machinery and equipment 79,836 - - 79,836
Furniture and fixtures 3,175 - - 3,175
Total capital assets 144,297 - - 144,297
Accumulated Depreciation:
Land and betterments 2,309 1,921 - 4,230
Buildings, systems and improvements 5,324 955 - 6,279
Machinery and equipment 42,707 10,561 - 53,268
Furniture and fixtures 2,064 318 - 2,382
Total accumulated depreciation 52,404 13,755 - 66,159
Net capital assets $ 91,894 $ (13,755) $ - $ 78,139
82
EXHIBIT H-7
CITY OF WICHITA FALLS, TEXAS
MUNICIPAL AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30,2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
Capital Assets:
Land and betterments $ 1,461,823 $ - $ - $1,461,823
Buildings and improvements 1,474,072 21,122 - 1,495,194
Machinery and equipment 16,283 - - 16,283
Furniture and fixtures 36,705 - - 36,705
Total capital assets 2,988,883 21,122 - 3,010,005
Accumulated Depreciation:
Land and betterments 1,356,873 41,548 - 1,398,421
Buildings and improvements 869,299 29,491 - 898,790
Machinery and equipment 13,125 986 - 14,111
Furniture and fixtures 10,806 3,496 - 14,302
Total accumulated depreciation 2,250,103 75,521 - 2,325,624
Net capital assets $ 738,780 $ (54,399) $ - $ 684,381
83
EXHIBIT H-8
CITY OF WICHITA FALLS, TEXAS
KICKAPOO AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
Capital Assets:
Land and betterments $ 954,677 $ - $ - $ 954,677
Buildings and improvements 566,233 - - 566,233
Machinery and equipment 60,179 - - 60,179
Construction in progress - 1,546,273 - 1,546,273
Total capital assets 1,581,089 1,546,273 - 3,127,362
Accumulated Depreciation:
Land and betterments 125,668 35,905 - 161,573
Buildings and improvements 40,194 11,524 - 51,718
Machinery and equipment 10,499 3,058 - 13,557
Total accumulated depreciation 176,361 50,487 - 226,848
Net capital assets $1,404,728 $ 1,495,786 $ - $ 2,900,514
84
EXHIBIT H-9
CITY OF WICHITA FALLS, TEXAS
TRANSIT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
Capital Assets:
Land and betterments $ 61,925 $ - $ - $ 61,925
Buildings and improvements 626,868 - - 626,868
Machinery and equipment 146,648 59,004 - 205,652
Furniture and fixtures 1,152 - - 1,152
Total capital assets 836,593 59,004 - 895,597
Accumulated Depreciation:
Buildings and improvements 155,804 7,730 - 163,534
Machinery and equipment 44,957 17,137 - 62,094
Furniture and fixtures 1,152 - - 1,152
Total accumulated depreciation 201,912 24,867 - 226,779
Net capital assets $ 634,681 $ 34,137 $ - $ 668,818
85
EXHIBIT H-10
CITY OF WICHITA FALLS, TEXAS
STORMWATER DRAINAGE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30,2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
Capital Assets:
Machinery and equipment $ 69,860 $ - $ - $ 69,860
Construction in progress - 2,652,779 - 2,652,779
1 Total capital assets 69,860 2,652,779 - 2,722,639
Accumulated Depreciation:
Machinery and equipment 5,421 6,986 - 12,407
Net capital assets $ 64,439 $ 2,645,793 $ - $2,710,232
86
EXHIBIT H-11
CITY OF WICHITA FALLS, TEXAS
SANITATION FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
Capital Assets:
Land and betterments $ 1,790,582 $ 264,329 $ - $2,054,911
Buildings and improvements 2,370,382 - - 2,370,382
Machinery and equipment 117,092 5,000 4,896 117,196
Construction in progress 626,930 203,280 - 830,210
Total capital assets 4,904,986 472,609 4,896 5,372,699
Accumulated Depreciation:
Land and betterments 60,807 21,874 - 82,681
Buildings and improvements 1,025,217 49,948 - 1,075,165
Machinery and equipment 82,497 10,774 4,896 88,375
Total accumulated depreciation 1,168,521 82,596 4,896 1,246,221
Net capital assets $3,736,465 $ 390,013 $ - $4,126,478
87
EXHIBIT H-12
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30,2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
Capital Assets:
Land and betterments $ 24,088,689 $ - $ - $ 24,088,689
Buildings,systems and
improvements 139,647,481 1,818,135 114,000 141,351,616
Machinery and equipment 3,800,455 195,385 - 3,995,840
Furniture and fixtures 1,164 - - 1,164
Motor vehicles 1,235 - - 1,235
Construction in progress 7,333,074 12,940,206 1,254,247 19,019,033
Total capital assets 174,872,097 14,953,726 1,368,247 188,457,576
Accumulated Depreciation
Land and betterments 7,873,664 243,632 - 8,117,296
Buildings, systems and
improvements 55,671,553 2,598,307 114,000 58,155,860
Machinery and equipment 2,681,311 135,417 - 2,816,728
Furniture and fixtures 843 58 - 901
Motor vehicles 1,235 - - 1,235
Total accumulated depreciation 66,228,606 2,977,414 114,000 69,092,020
Net capital assets $ 108,643,491 $ 11,976,312 $ 1,254,247 $ 119,365,556
88
EXHIBIT H-13
CITY OF WICHITA FALLS, TEXAS
FLEET MAINTENANCE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30,2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
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 33,784,129 2,216,824 1,619,114 34,381,839
Construction in progress 6,706 - - 6,706
Total capital assets 38,240,949 2,216,824 1,619,114 ' 38,838,659
Accumulated Depreciation:
Buildings and improvements 1,411,462 80,179 - 1,491,641
Furniture and fixtures 6,290 67 - 6,357
Motor vehicles and equipment 21,979,264 2,807,837 1,571,912 23,215,189
Total accumulated depreciation 23,397,016 2,888,083 1,571,912 24,713,187
Net capital assets $ 14,843,933 $ (671,259) $ 47,202 $14,125,472
89
EXHIBIT H-14
CITY OF WICHITA FALLS, TEXAS
DUPLICATING SERVICES FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
Caoital Assets:
Machinery and equipment $ 112,334 $ 16,000 $ 1,939 $ 126,395
Accumulated Depreciation:
Machinery and equipment 28,547 8,495 1,939 35,103
Net capital assets $ 83,787 $ 7,505 $ - $ 91,292
90
EXHIBIT H-15
CITY OF WICHITA FALLS, TEXAS
EMPLOYEE BENEFIT TRUST FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
Capital Assets:
Machinery and equipment $ 2,314 $ 1,379 $ - $ 3,693
Accumulated Depreciation:
Machinery and equipment 231 532 - 763
Net capital assets $ 2,083 $ 847 $ - $ 2,930
91
EXHIBIT H-16
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
CAPITAL ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Balance Balance
10/01/2003 Additions Deletions 09/30/2004
Capital Assets:
Land and betterments $ 1,229,679 $ - $ - $ 1,229,679
92
Wichita S
TEXAS
STATISTICAL SECTION (UNAUDITED)
Wichita
_-.
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
1994-1995 $ 5,079,725 $ 10,420,291 $ 6,249,987 $ 2,458,983 $ 257,479 $ 399,234
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
* 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.
93
EXHIBIT I-1
Debt Service
Interest
Public Traffic and Capital Principal and Paying
Works Health Transportation Outlay Retirement Agent Fees Totals
$ 4,526,548 $ 3,020,266 $ 1,319,641 $ - $ - $ - $ 33,732,154
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
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
1994-1995 $28,685,546 $ 1,103,978 $ 632,676 $1,309,204
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
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.
1 94
,
EXHIBIT 1-2
Intergovernmental Miscellaneous
Revenue Contributions Revenue Totals
$ 2,064,914 $ - $ 1,304,875 $35,101,193
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
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
1994-1995 $ 15,817,317 $ 15,507,777 98.04% $ 318,839
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
95
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
$15,826,616 100.06% $1,638,633 10.36%
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%
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
1994-1995 $ 1,860,859,604 $ 1,860,859,604 $492,382,781 $492,382,781
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
96
EXHIBIT 1-4
Ratio of Total
Total Assessed to
Assessed Estimated Total Estimated
Value Actual Value Actual Value
$2,353,242,385 $ 2,353,242,385 100.00%
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%
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
1994-1995 $ 0.67 $ 0.36 $ 1.22 $ 1.20
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
Tax Levies
1994-1995 $ 15,817,317 $ 11,989,730 $5,645,214 $1,071,679
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
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
97
A
EXHIBIT 1-5
Iowa Park Wichita Falls
C.I.S.D. (3) I.S.D. (4) Totals
$ - $ 1.34 $ 4.79
- 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
$ - $30,444,581 $ 64,968,521
- 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
EXHIBIT 1-6
CITY OF WICHITA FALLS, TEXAS
TEN LARGEST TAXPAYERS(UNAUDITED)
SEPTEMBER 30,2004
Percentage
January 1, 2004 of Total
Assessed Assessed
Taxpayer Type of Business Valuation Valuation
Sikes Coyote Mall LP Shopping Center $ 47,622,240 1.35%
Texas Utilities/Oncor Electric Utility 44,060,747 1.25%
Southwestern Bell Telephone Utility 39,378,848 1.12%
Wal-Mart Retail Store 34,683,131 0.98%
Kell West Regional Hospital Medical Center 15,758,361 0.45%
Clinics of North Texas Medical Center 13,451,980 0.38%
Time Warner Cable Television 13,422,908 0.38%
Southwestern Bell dba Cingular Customer Service 13,023,779 0.37%
Lowe's Home Improvement Center Retail Store 12,894,119 0.37%
Sams East Inc Wholesale Store 9,553,470 0.27%
Totals $ 243,849,583 6.91%
98
EXHIBIT 1-7
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
1994-1995 173,940 5,267 3.03%
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 * - - -
*- 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.
99
Wichita
TEXAS
EXHIBIT 1-8
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED)
SEPTEMBER 30, 2004
Total assessed property value per 2003 tax roll $3,530,992,589
Maximum tax rate* $ 2.25/$100
Current tax rate for 2003 tax year .59246/$100
Maximum tax rate in excess of 2003 tax rate 1.65754/$100
Total legal debt margin $ 58,527,615
There is no debt limit established by law. The limit is, therefore, governed by the City's ability to
levy and collect taxes to service the outstanding indebtedness. The City's maximum legal tax rate
established under its Charter is $2.25 per$100 assessed valuation. The 2003 tax rate is $.59246
per$100 assessed valuation.
* Maximum tax levy established by City Charter
100
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
1994-1995 101,155 $ 2,353,242,385 $ 20,530,000 $ 1,093,940
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
Sources:
(1) City of Wichita Falls Planning Department for all years, except 2000-01 from U.S. Bureau
of Census.
101
EXHIBIT I-9
Ratio of
Net General
Bonded Debt Net General
Net General To Assessed Bonded Debt
Bonded Debt Value Per Capita
$19,436,060 0.83% $ 192
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
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
1994-1995 $ 1,125,000 $ 1,408,898 $ 2,533,898 $ 33,732,154 7.51%
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%
102
EXHIBIT I-11
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING GENERAL BONDED DEBT(UNAUDITED)
SEPTEMBER 30, 2004
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 $ 19,870,000 100% $ 19,870,000
Overlapping:
Wichita County 5,330,000 100% 5,330,000
Burkburnett Independent School District 16,141,210 25% 4,035,303
City View Independent School District 10,491,395 90% 9,442,256
Iowa Park Consolidated Independent
School District 5,692,491 2% 113,850
Wichita Falls Independent School District 29,664,152 99% 29,367,510
Total overlapping 67,319,248 48,288,918
Total direct and overlapping bonded debt $ 87,189,248 $ 68,158,918
Sources:
(1) Listed taxing jurisdictions
(2) City of Wichita Falls Planning Department
103
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
1994-1995 $ 17,701,086 $ 11,252,304 $ 6,448,782
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
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.
104
EXHIBIT 1-12
Debt Service Requirement
Principal (3) Interest Total Coverage
$1,230,000 $ 2,875,069 $4,105,069 1.57
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
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)
1994-1995 101,155 $ 29,527 13.1 15,793 5.9%
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%
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
105
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*
1994-1995 $2,353,242,385 $ 73,692,291 Not Available
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
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.
106
EXHIBIT 1-15
CITY OF WICHITA FALLS, TEXAS
MISCELLANEOUS STATISTICAL DATA(UNAUDITED)
SEPTEMBER 30,2004
Date of incorporation 1889
Form of government Council- Manager
Area 71 square miles
Miles of streets 542
Number of street lights 6,761
Fire protection:
Number of stations 8
Number of firemen and officers 147
Police protection:
Number of stations 1
Number of police officers 172
Municipal water department:
Number of consumers- active 33,550
Average daily production 20,400,000 gallons treated water
Miles of water mains 714
Sewers:
Number of customers-active 32,070
Miles of sanitary sewers 508
Miles of storm sewers (enclosed) 41
Building permits issued:
Number issued 10,159
Amount issued $190,950,073
Recreation and culture:
Number of parks 39 with 1,100 acres
Number of golf courses 4
Number of libraries 1
Number of volumes (books) 210,976
Employees-full-time 1,090
107
EXHIBIT I-16
(Page 1 of 5)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED)
SEPTEMBER 30, 2004
Insurance
Code
A Policy: Building and Contents
Company: Williams-Dwyer Co.
Policy Period: October 1, 2003 to October 1, 2004
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: $134,197
B Policy: Boiler and Machinery
Company: Williams-Dwyer Co.
Policy Period: October 1, 2003 to October 1, 2004
Perils: Comprehensive Blanket
Coverage: $5,000,000 Per Occurrence
Deductible: $5,000
Coinsurance: N/A
Premium: (Included in Building and Contents Premium)
C Policy: Electronic Data Processing Equipment
Company: Williams-Dwyer Co.
Policy Period: October 1, 2003 to October 1, 2004
Perils: All Risks
Coverage: $2,420,100
Deductible: $10,000
Coinsurance: 100%
Premium: (Included in Building and Contents Premium)
D Policy: Airport Liability(Municipal Airport)
Company: Marsh Aviation
Policy Period: March 17, 2004 to March 17, 2005
Perils: Owner's, Landlord, and Tenants Liability
Coverage: $1,000,000 CSL
Deductible: $1,000
Coinsurance: N/A
Premium: $4,880
108
EXHIBIT I-16
(Page 2 of 5)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONTD.)
SEPTEMBER 30, 2004
Insurance
Code
E Policy: Airport Liability(Kickapoo Downtown Airpark)
Company: Marsh Aviation
Policy Period: March 17, 2004 to March 17, 2005
Perils: Owner's, Landlord, and Tenants Liability
Coverage: $1,000,000 CSL
Deductible: $1,000
Coinsurance: N/A
Premium: $14,565
F Policy: Public Official Bond
Company: Fidelity & Deposit Company
Bond No.: FD 09688496
Bond Period: June 27, 2004 to June 27, 2005
Insured: City Manager-Jim Berzina
Coverage: $25,000
Premium: $100
G Policy: Public Official Bond
Company: Fidelity & Deposit Company
Bond No.: FD 30237391
Bond Period: August 1, 2004 to August 1, 2005
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. FD 02897925
Bond Period: January 15, 2004 to January 15, 2005
Insured: Public Employee Blanket- Water Office Manager
Coverages: $10,000 Inside Premises
$3,000 Outside Premises
$10,000 Per Employee
$15,000 Excess Limit (Water Office Manager)
Premium: $2,000
109
EXHIBIT 1-16
(Page 3 of 5)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE(UNAUDITED) (CONTD.)
SEPTEMBER 30, 2004
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: Aetna Insurance Company
Bond No.: S 10084654
Bond Period: August 6, 2004 to August 6,2005
Insured: Director of Public Works-Scott Taylor
Coverage: $2,500
Premium: $50
K Policy: Public Official Bond
Company: Aetna Insurance Company
Bond No.: S 100841241
Bond Period: August 24, 2004 to August 24, 2005
Insured: Municipal Court Administrator-Judith Elaine Bourgoin
Coverage: $2,500
Premium: $50
L Policy: Public Official Bond
Company: Aetna Insurance Company
Bond No.: S 18072205
Bond Period: February 15, 2004 to February 15, 2005
Insured: Director of Finance-Jim Dockery
Coverage: $25,000
Premium: $125
M Policy: Public Official Bond
Company: Aetna Insurance Company
Bond No.: 71 S 100648903
Bond Period: May 21, 2004 to May 21, 2005
Insured: Municipal Court Judge- Larry Gillen
Coverage: $2,500
Premium: $100
110
EXHIBIT I-16
(Page 4 of 5)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE(UNAUDITED) (CONTD.)
SEPTEMBER 30,2004
Insurance
Code
N Policy: Public Official Bond
Company: Travelers
Bond No.: S101099963
Bond Period: December 17,2003 to December 17, 2004
Insured: MPEC Director- pending
Coverage: $25,000
Premium: $88
O Policy: Health Insurance
Company: J. Allan Hall&Associates, Inc.
Policy No.: City of Wichita Falls Employee Benefits Trust
Policy Period: December 1, 2003 through November 30, 2004
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: $357,462
P Policy: Dental Insurance
Company: J. Allan Hall&Associates, Inc.
Policy No.: City of Wichita Falls Employee Benefits Trust
Policy Period: December 1, 2003 through November 30, 2004
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, 2003 through September 30, 2004
Perils: Death and Dismemberment Benefits
Deductible: N/A
Premium: One Times Employee's Annual Salary
111
EXHIBIT 1-16
(Page 5 of 5)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE(UNAUDITED) (CONTD.)
SEPTEMBER 30, 2004
Insurance
Code
R Policy: Life Insurance(Directors Only)
Company: Pilot Life Insurance Company
Policy No.: 0548 (Group#1)
Policy Period: January 1, 2004 to December 31, 2004
Perils: Death and Dismemberment Benefits
Coverage: $25,000
Deductible:
Premium: Annual Estimate$338
112
Wichita
TEXAS
EXHIBIT J-1
CITY OF WICHITA FALLS , TEXAS
CASH AND INVESTMENTS
200
a
180
Phi''' .'�140
".'.'.','.... j160 I 100
ca
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2000
2001
2002y%,
2003
September 30,
2004
(UNAUDITED)
113
EXHIBIT J 2
CITY OF WICHITA FALLS , TEXAS
TOTAL BONDS PAYABLE
200
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,�/4;fy4+4y;yfyy4++�++:� 44444 )92 44444::4444444+:+ 4444444444444'f4fi:4
O 4.4Affd.44Fx++ 3 f 4____444 d) ++:4444444+:+:+:+4+:+44444+4+444 ++4+4+4+4+4444:+4+4+4+444444444+4+:444
Y �y ; 4 Y 444444:::4::4444:4� 444444444444444444f
d.N� � .�4,4y'4�4'O'�44�44�y4yfy S 8 f� +y+y+4,L'�44+444+:+444+44444+4+4+444:YA� '44+4+4+4+44444+:+4444:4444+4444444+444
-_.,. ''/'fir Ap+,✓Hd'+ 444 +44444+f 4444+f'44444+yy,+4y,+4y,+4y,44y,44y4y,+4y,+444{4;��� 4{4{4{4{4{4{4{4{4{�+4{4{4+y44y{{4{4{4{4444•,
W_ d•`'"'�4y�y+y4y+y+y ,444��44y4y4y4y4y:y4y4y4y4 4,4.7 .'44y4y4y4y4y4yiy4y4y4y4y:y4y4y4y4y4y4yf a4
./ �+yydy ,4iy4..����yy:{:{4y4y4y4y4y4y4y4y44 4 y4y4y4y4yiy4y4y4y4y4y4y4y4y4y4y4y4y4y:444
2000
.'�N f 4yh�44 444:y4y:y:y:y4 4y4y4y4y� y4y4y4y4y4y4y4y4y4y4y4y4y4y:y4y4y4y4y4444
2001 4444 4444{++{444r444444444; 44444444444444+444444444444444444:if
44 i444444i4MM444f444::4
����:�:� �/� 44+4+44444444444444+4444:+:+44444+:4:+h
4 .4444444:::44444
2002 4:.4d :4444`4s5
�" a�� ( 444h4444
2003
2004
September 30,
(UNAUDITED)
114
EXHIBIT J-3
CITY OF WICHITA FALLS TEXAS
GENERAL OBLIGATION BONDS PAYABLE
25
20
„
15
ttsi
co 0
e,�F}'
5
„. ,
2000
2001 :
2002
September 30, 2003
(UNAUDITED)
115
I
EXHIBIT J-4
CITY OF WICHITA FALLS , TEXAS
REVENUE BONDS PAYABLE
200
175 �x.: ..
' � . '4.,,++,*ate;:
150
\,\ — —4"/..—' k'''
125 „,,,k,,,,,,,,„, .......•:.....,..,...........,,f4+4,.: .../ , p r�
„.
p
..; %.,„ ki,,,.; .•....0-41,7,0-*4.++,.„.,„,,,,,,x
100 • t
, ,.•^ •t+L i+i 6P*tt ii *iittiiiii Ac
'itrt f,r d9 + + 4:7 14 r+%tiittK=i*t *f '@�q :44:o t*rrrr ' + P�`+ ``** i*ii * *i*i i+b � 70 : ,,it
ff0000 ` � Titi*i**$$�iiiiii.i*t* if,ff/'" %� // // .'t t:Fiiiiiifiitt
- /� -:::::::.,:...::::...../titi* :+:".111+9+tiegisix++,1+c
---
>)%:,2".":4a.1 :4-.)../.::::,,::/kS., :: . '''''v:: ':4:14,"9/0/..'AA-.;`?..:1 4,.,.\k,, -,:„'::".....,/ ...:440:: :::::::::::::::::::::**1:41.44+.144:+xt
f ^ ..� �i.,-_ $++i++++*b++*++++**+r++++�+rams:.tmot*t*#
^ *Hp tF+++a*a*`++*°+yi°++++++tt'°t++ttr*+••
:•..:.::.... ...,•,,,W"44.,,,,k I.:.:.+.•/
`tee ; l... /, d•,:: at�d
2000
2001
2002
2003 "w
September 30, 2004
(UNAUDITED)
116
EXHIBIT J-5
CITY OF WICHITA FALLS , TEXAS
GENERAL FUND EQUITY
12
/ r;;
O
8
;.
6
co
r
4
O ,
-
i
2
.,"':,:,
/ ..';'' '/Hd 41-. ik;.:.7'4:: LI'';' _
2000
41
2002
2003
September 30, 2004
1I Reserved/Designated Ell Undesignated
(UNAUDITED)
117
EXHIBIT J-6
CITY OF WICHITA FALLS, TEXAS
COMPARISON OF TAX LEVY AND COLLECTIONS
25
1 1
20 - -
I
o ���,�:+.' /,��",�'
it s'3##+ . - --- P+ ++ i"
= 15 ` TF+ +N+++ : 0. f
�+ ++++ +,fi �` ry
++' P �+ ,titYa
.1:1
N " p't 3li: a
r
a
�.
10 a
r' ,,� a �y ,', *
!d D�. :::.:
f
,..::4 4: 1:4 , *IN;.,:::'
.0 _ a
' �, $ 4,"
++ j,r
1995 1996 1 997,.
1998 r Tax Levy
1999 2000 2001 Tax Collections
2002 2003
Years Ended September 30, 2004
❑Tax Collections Tax Levy
(UNAUDITED)
118
EXHIBIT J-7
CITY OF WICHITA FALLS, TEXAS
REVENUES BY SOURCE - FYE 9/30/04
Fines and forfeitures Charges for services
oio
+++./.40.4irN:+16+:+,f5r+43+:1+Tir+1++++.tii++:+i++.:::
.+'.+,'.+•".L.k ++++4,,,f+*+*+**+*a*a*+++....+*+*+*+++*t*+*+*+*+*+*.x.)+*+*+*++a*t+*++++*+:44:+ *ata t*a�i*.o.+*+*+*44.4,
'•••••"••L 1.1. •••• +,++++++++++++++++++++++++++t+++++++++++++++++++4*++++++4.4 +++a++++++++++,++++++++++%:t1++044.t++*a++++++*+*+++*+*+*+.l ✓ r ✓•✓ ll r•✓ ✓ ✓• ++* ++
1.4 1 L.1.1 1 +l,.•i,..• .,..,.. seat++�++r+r+++++++++++++++++++t++++++++++++++++++++++++++++++++++t+++++++++++++++++++*++++++++�+++�+++*+*+,*�,F°"+*+*+`.
✓•l l l•l•l ✓ ✓•✓•✓ r ✓•r•r .tg*+++++*++++*+*+*+*+++++*+++++++++++++++++*+++++++++++++++++++++++++++r+++++*++++++++++*a++++*++++*+*++++*+*t*+'+
S•1+•. '.•.•1.1 1.1.1.1 1•".•L•L• *+****+y+*+++*+w.A.*+*+t++*a*++*+*+*+*+*+++*+0.......4+*+*++*+*++......++*+4'.+0*+*+*+4*+*+*+*+*+*++
r•l•r l ✓•✓•✓ ✓ ✓•r•r ✓ r•l•r•l•r �'to0*++++++++++ ++++++++++++++r++++ ++++++*+ x444++++++++++
1•S•1.1.1.1.1.1.1.1.1.1•L•1.1.1.1.1• +y+y+*+,*++++*,++4+1*,s+*+*+*+$$$;}+44++44*+*+*+44#++*+*+*+a*+i++*++++*++4*+*+*+*+*+44,,o.+*+44*�t'
l•r•l•r•l•l•l•r•✓•1•✓•r• •l•r•l•l•l•l• a*++++++++++++++++++++tt++++++++++++++++++4+++++++++++++++++
1.1•1.1••.•1•".•1.1•".•1.1•1.1•1.1•1.1•1.1• ++++*+4++4++$ *+*+*k**+*+*+*+*+*+*+**+*+*+*+*+*+*+i4#+*i*+*+4444+*+*+*+4444*+*++4#g
r•l•l•l•l•r•✓•✓•r•P•r•✓•l•l•l•✓•r•✓•✓•✓•✓• ++++++++++++++++++++++++++++++++++.h4V +++k4kk+++++++
r+l•l•✓•✓•.•✓•✓•r•✓•r•l•l•l•✓•✓•✓•✓•✓•✓•✓•r•r•✓• x+*+*+*+*+*+*+*+*+*+*+*++*+*+*+*+*+*+*+*+*+*+***+*+*+*+*t*+*+*+*+*+**+*+*+*+*+*+*+*+*+*+*+*+ +*+*+*+*+
1 1.1.1.1 1.1.1.1 1.1.1.1 1.1.1.1 4:0%°,.•'L 1.1+1.1• a+.+;"+„*+,*}*+*+*+*+*+*+*+*+*+***+*+*+*+*++*+*+*+*++*+++t+++++++++++++++++++++++++++++r++++++++++++++++++
l .. l ✓•l l ✓ ✓•✓ ✓ ✓ r•r l ✓ l•✓ ✓ r ✓•r .. ✓ r•r r +.+,..+.++rr*8++++++++�++�,rat++}+++++t++t++++++++++4++++++++++++++++++++++++++++++++++++a;
'. .. 1•'..1, 1 1.% •. *. k.•1... 1 1•,.+. 1 1•%.5, . k•,1.". ". 9 * its i�f F*v)/! ++a++++++++++++++++++++++++++++++++++++++++++++++
l l•✓•✓ ✓ ✓•✓•r r r•r•r .. ✓ ✓•l ✓ ✓•r•✓ ✓ l•r•r l w t*a*+*t*+++++++++++++*++++++++�++++++++++4++++++#'
+1 ". S•'.•S 1 •.•1.1 1 1.1•. ". 1.1 1 1.1••. 1 1+1•`. +*'*+t++,*,+*+*+*+*+*+*+*+*+*++*+*+*+*+i t*+*+':
l l•l•r ✓ ✓ r•rrl r•l ✓ ✓ ✓•✓ r ✓ r•rr ✓ ✓+rr _+.4a++;+-i+**+++++++++++++++++..,
S S 1.1 1 1 1.1 1 1 1.1 1 1 1.1 1 1 1.1 1 1 .1 � -_*�+b,�,j!*,�Y*
l rr ✓ ✓ r•rt rl•ll r ✓•r ✓ r ✓•r ✓ rl•l --
1 1.1 1 1 1 1 1 1 1.1 1 1 1.1 4 1 1.1 1 1 1• --.
�' l ✓•r ✓ l r•r r r l•l l ✓ ✓•r ✓ r r•l J r r•✓ ,�°g°•�
4 1 1 1.1 1 1 1.1 1 1 1.1 1 1 1.1 1 1•1• 11■
4.4 .+' l ✓ r•✓ l ✓ l•l t t l•r l l ✓•✓ r r l ....,, as++,
1 1 1•�.•1 1 1 1 1.1.1.1.1 1 1 1 1 1 1 1"":."-.".,,-,";.,;."•.
l' Y l ✓ rrr ✓ rl•t•T•✓•✓ ✓ ✓ r ✓ rll ow*, .
*4k4 4 4 1 1.1 1 1.1.1.1.1.1 1 1 1.1 1 1 ■ll,,
44kiL4 l•l ✓ ✓ ✓ ✓•l• •✓•✓ r ✓ rr ✓ rr ■.
II Y k •1 1 1.1.1.1.1.1.1 1 1 1 1 1 1 y„ 61,+s;
k r k k r l•l+r+l•l•✓•✓ ✓ r r r r . i"iwat�
Taxes •4*4k4.4Y4.4.4 4.4 `.•1.1 1 1.1.1 1 License
s and permits
Yrkkk kyk%1A1k Y k kkkk. r•l;r•r r ika'
;4k .4k4 4 4.4 4 . 4 4k4k +• ■.
0 ..;.X„kk4kkY Y k kk k ✓rkk kllkk�kkx0 k <.,,. °/
36/o k. k k 4k4 4 4 4 4•�klkklkk4k4k4k4k Z O
+d]d'kkk kkkkk Ilk Y k k kkrkl.te** kl;•kkkkkk
k4444k4 4 4 4k44k4k4%01..4k
N k kkYrYr Y Y Y k kit•kk11kkYkkrkkkkkkk gy� h'� h& `�
•4.4.4k4 4 4 4k4 4*4Y4k4 4 4 4k4k ••�• •••• .:�.
Ykrkrkkkk✓kkkkrkkkkkkYkkYr k Y Y k k ,.�. „, ..•.'.•.''•.•.....
4k4.4k4k4k4.4k4.4.4 4 4 4 4 �.�.�.•.•.•.•.•.•.•.•.•.•.'.'.•
k k.%.%,,,,•4kk4 Inter overnmental
4 ti.*, 4 +�1 4 4k g
;��k 10%
Miscellaneous Contributions
4% 7 0
(UNAUDITED)
119
EXHIBIT J-8
CITY OF WICHITA FALLS, TEXAS
EXPENDITURES BY FUNCTION - FYE 9/30/04
Administrative Services Police
14% 13%
+Mw+t+tit+++++++
++ *ii i* +++{ 11
{ J J`
.++'+iti + i* +t ?+ ++++ t +
►
+* r*�*;i+�+ +++ +*+*+++++++*� +*++ t Fir eDebt Service " *�t ++ +� t+t+x{{{:x
+ + I10% {>{>{>{>{> +j`� +i+++++++++i++++++++ �++* !T> t;+ ++++t+{ { +�• ++t y
+
r � y ' ' , y } SyyS ? a > a6S4 •4++"M+ + . . .{ { x { { { { { { { x { { x { {,{, , , , „ 4,4,�+ �::441: ''T j . ! 'T••� , Parks and Recreation, , , , , 4 �+ 2> , , , , ++p+++ ' /3a , a > , , > > aYaaa" tang:14-6±11:
r r r�r•r r r+r•r r ✓ r•r•r•®`,`�}�**++++++++++tt+++++++++tav+4.+,
Z" .,::„
b 'L ti ti L•1 S 4 S•S '. 1 '.•".• +*+*+*+*+*r*t*+*+*+*+*+*+*+*+*+++*+*+++*+*+*+*t++'+*+++++*+++*+�+*+'r`t e.
..-� r-r r r•r•r r r --- r r•r•r r r•r• r ++++++++++++++++++++++++t+++++++++*++++++iet++p++++}++++++++*+*+*+*+*+++t+*+a+•t<.
r•r r•r•r r r•r r•r r•r•r•r•r•r +,,,,,, +++++ t ++* ++++++t+++++++++++++t+++++++ ti
•
r r r r•r r r r•r•r•r•r•r• ` ++ t+++ 40+4 t+ * +++++tt++++++++++++++++++ Accounting/Finance
r r r r r•.••.••r•.•• ++�,+*y++*t�+*+{++ �ry�'� +*+*+*+*+*+*+*+*+*+*+*+*+*+*t*+++*t*+*+*t*t*+*+ �-
,,
'L ; 'tier 1 '' 1 'L. . . • ` +,a*+444*+++++'"+a*+*at++"a++44.+ ,,+4+++*+*+*+*+++++++*+*+*+*++++.4 *
Capital O u tl a +ti '�.. "s;"w ' r r r•r•r•r ` +t + ;++y y++*+++*+ +*++ t+*+++++y+++++t*+*+*+++++*+*+*+*++t*+*t+++++* 1%
7/o ' s ti ,, . Community Development
3, tii4. ti,t:r1 ;\\11r. o
.Traffic and Trans ortatio '•"� 43::.
7:•:: :.
w%
Health Public Works
4% 23%
(UNAUDITED)
120
A
EXHIBIT J-9
CITY OF WICHITA FALLS, TEXAS
GENERAL GOVERNMENTAL REVENUES (GENERAL FUND ONLY)
55 f.
50 - --
45 ,
40 — + +s_
-- * '+y"6#a*+*i*f*i*+ <:,,. ++ #i'++� �i.,<�,' 'V' ?i'� *+**+*s*++*+*+*e*+ '._ a++*+ i ff}i 6�' + 8�
...+:+.+. >' *}++*a�++f�+*'++'a+�-:�`.; :+ �,`fiii + �.�ay� +Y+#'*++a+•i•+�.,.._ V
/, w: +aaa.+<eies <++++e*s***+". , ::::?'•jf' +*#+ + ,}i °�: +�tT+tai*+i*+y+++t i + <+< }++*+++++++++++++++ ++++++++++}+++}+44 /.. t?. ++ :1 4*i*#FiF+ii ^ #+}F#+++++#r.«.s.- :faA }+r++++++++++++++++ ++++++*++++++++r++++i; 4+ q','daa ;. ++++++++++++i+s+# ., ++*a+a*+a*+*+*+r*i.�_.�. +1` .�' }++t+++++++++++++ .++i3++++}+++++}+++}}# + ct�t�d+a _Ea: ++*#*+iyoi++*+*+t*i+i ,;., + }+++++}i..;�. ++ ^ }++i�t+y+1`+++ tw +++++++++++at++ }++++++++++++++++++++�,' +++'
E a"a:. -+*+t*}++.+++;++ '4f+fr+++++++r+r+i +++++. *++,*i++++++++++ ::: .+y++++re+++++}t+ wa;++++++++++++}#+++*e _ ++ ++
30 ^ +#"ti+**'�+�s ,: rr+r+++t<< ,`'. ++ ++++ �. +#++#++++ t ��,�,�##++++++++++: - +++++++++++++r++t .v? * ,pe
aia<" _,/:0+:'+';`, 4, * +3+*+++ *i *+#*+*i*+<< f+}+ ++++ ++++++++++ ,pad +++++++++++++ +t +r+++++ .°:dy r
+� }t*i�F°#*r**# �1 }*+ +< +++++++ ++r ,y+++++++'.i" $: _ id++++*aS+*+*++++*++ + +*+*+*+*+ 'a ° i.*a
$a"a /� + #*+}++'* +++�++*+'++*rt?_. f*+*+*��' F'+*++*+*+*+*+ d�*a +i`att++*+++++r+r+ 4-_ ++++++++++++ �� a pa
2 5 app++ ° r++++++r+ :4-4-++8 +t +*+es :*.*++�#i a*" !fk,.,,.:
tk + :a Vi ::2 i +,aj•+*a* ***+ - i��***+i*+*++'�' N '' + +i• a8 ^^ ^ ai'�, +i++ _ , r + d ii as ^*• . "a+i*+ +i + # ° "y: + daa 8 zed
15 aa; t,, +fir`+++�*+ Y ra pa :::....':.:.:::: :::: :::::.I
} 4 -.°+i+fi-Ai:$tat1. `, /"i '° +• *+ `i 44a,:, "://le, :i: :e.'.++ ,..„40,,, . ..,,,,, ... t
r�+a'i++• +• 4-$:' N • :.Iv t'*a++t*+++a++ ,t; �; • *.: a: :rt*a+is$tom+«;. •.rd+ ?< ^
5 ++++rah" +++a++*+a+ -. .... '�' s��� __ %,+,.....11;4 , ,:,.....,./. ,,
,, :,
1995
1996 1997 1998 `_ —_ _ t � % +
1999 i.+++t+++fit++},
2000 `+
2001 ——
Years Ended September 30, 2002
2003 �
2004
(UNAUDITED)
121
_
EXHIBIT J-10
\.
--- - - A F AL�-S , TEXAS
CITY O F W I C H IT FUND ONLY)
GENERAL GOVERNMENTAL EXPENDITURES (GENERAL
55 --''-f
tr+,+rr+r+tr*�ttQ
50 - rrt+i++i++Q rlOa
-- -_�+ +rr++ *Oa
ttt! +a
' l+rr+lam � �� '` +�++++�+ ��
4 5 G+i+l+r��i+ +r i:�rr+l+l+r3i+rr
+r rrrr+O+++ i+:++ + ie�t+,.+--t
.�r t *rrrrr+
4t#+e rrr +i:r. rrr rrr+ Q
@t+i#+rrr ++., \\\ �,, • # .EM
t+t+t..,. , ;\\\.:..•.'.;.�� +!#r++ k .'. @�::.'.•:...ri$ra`A',a +t+ 1$1.+ +''���,,, '' t+t 4o-+++ � +++?r+ti+itr+#+� � � +t+rrr � •.�•:•:':','.' G.—?d�e, rGtr+tt:::+i+? ++rrrrr 4w`t G+t++tr++++++t� ,..•.•. r it+ .rt;.�R 44:++++rrr;+r{+rrQ� .'.;•;.• :'::.'kkrrrr++ N ,, r+ti�:.;;', r + \\.'.'.`:�• r-rrrr r � rrrr+++ � '>'..�•:.:�•:. r� : �� tr+++++r++t+++++#�QQ� � tttr fey ` AW`1•11X,i+i + `R \::•..',.,.;;`:,. ,tk '\..,� +++ t� ! ''\::::: . ' t. ::..'•� 4 rrr � .' +?rrrrr; *++rrrr
r�+i++:+i# r++r#Zy. rrrrr*. +r'�rtt++lr+r++++; +
•Q i rrr+ •rt,++r+r+r++++++ r+t t4tr � \.\�� � rrrrr++=+r+t+tt+tr+++•:Q' ';+++++++'r�, Q
rrrrr rr+�+r+r++#tt� i�iiiia t '•.:::$ a%1+% ++r++�t+�r 6, \ ":•::'.� t= =*+rrr r
+}+r:+i++r+r tt� � � • rrr rr *+tttttt+++i+ii�i+�i�� -,t#+r+ 8
� i+tr rrrr Q rrrr :�. :.:\.:•�.�..'•''� Qt
rr rrrr++ rrrrr+ +t .,,,, +* \•:':•:•: !#rrr "1,
+ Q+t t+t++t+r+t+t � .'.� � r±ritiri r+'Q�+t ,'� �i i i%i i�� Si+ Q �"�:�,`',� �+++r+ir� r++?!4�' Q
�.� +rrrr+�+r+r+rrr +r t rrrrr r r r rrrr"Q r r#2 5 ++#+ri+i r"A N' •.. +++++++rrrr1 +rt+tir++++r++i*11t+;r+ QZ t r+ttri+ir +#t�+rt+ Q+ty,+4,+r+++r#t'�� .'..., ..� ...;., +i+s+++r+r ++r4.++rt++r++++r+�+.Q ��, �.'y�'' .+L�4" +#+rrr+rGr QN :.•.O?rr�r�r� � � `.',•:��" ',;� � ++#r+i+r++trt+++++�Q� rrrr rrrr � ��C '�' d'0�`i ^KOtrrtrrrrr�r r#+rrrr #rr+rrrrrrr+++++� `C 't�i �l,�rrtrr++ Qere+�c •�t i i �y � ,� � +r r +rrrr t+rrr+++++++�+rr�rii+r,-r �. ' +trr+rt+r+r+rt+rC 2�\- �t rrikk , `L ':• •\l:.':•i `, + a ++++rrrr++•� •• 'rt ••.+t � tt+i+t+r+r+r+++++*20 �' �f± � `i �..�.'�� !+ � t+ttr+r+i ttrrrri+i+i ! t ++a
�i++t++++t++++�_ +rrrr \ � r #rr+rtii+++++it +? �� , t+rrrr ttrtr+Q'• +r rrt�� � '.'.'\\.:� •: ••.,.� ri � i+i+i+ii++rrrrir+#r+,� ry.4 � �. � rrrrrr+,3�':::::„ i+i+ � N •'.. �,, b, rrr rrr+++r+ �• 3� - 4rrrr+++:++to .c:: ....•• :� �++.:-: 'Q� ..+ ..� ++ k rr+tir+r+t++#irt� _ '` § R +rrrrr a2 •• :It
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rr .� � rrr+trrttt� �:':{;. .:y�� �t++'�tttt+t+r�r�.?i� i+ir?+*+tit`++t+�t++'+`'h+,� ,+rt4t,�+'G+t+t�'Qrr + ` it++ririr++++rf ~ \ �, �!+#+t+.t'Nr� rr r...."r+++irr�r+rat -rrrrr#+�ti++tst+0 ++�t � •'':: � �\�':�� ?+rO;:<'� _ p, � +rtr•�rrrr ® � r'4Q,.;, �C .++Qr+.gr+rrL� � tr�retirt+r++t? a
# � II
: :.:� t+t,. • ,t• .ii!
r� � t
army ,'•:•�.;;� - rrrr +trtrrr+++++itt � �`:<\:�:':•:.•.�.':' r rrr '•t�'.'. �..N .•.� ....v++++',. :\....,,\:.:.;N. .� rrrr++. `:. >� � +tp� � ;tip`\S`itkk �\.��.` .�.� .. a
1995 1996 1997 1998
1999 2000
200
7004
Years Ended September 30,
(UNAUDITED)
122