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2002 Comprehensive Annual Financial Reports • Comprehensive • Annual Financial Report City of Wichita Falls, Texas 77-1:s 82-6-- • * IO ) «t „4 ,�)i• C2 For Year Ended September 30, 2002 - CITY OF WICHITA FALLS, TEXAS - COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2002 ISSUED BY: DEPARTMENT OF FINANCE CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2002 TABLE OF CONTENTS Exhibit Page INTRODUCTORY SECTION Letter of Transmittal i-xiv GFOA Certificate of Achievement xv Organizational Chart xvi List of Principal Officials xvii FINANCIAL SECTION Independent Auditor's Report 1-2 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined Balance Sheet-All Fund Types, Account Groups and Discretely Presented Component Units A-1 3-4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances-All Governmental Fund Types, Expendable Trust Fund, and Discretely Presented Component Units A-2 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual -General, Special Revenue, and Debt Service Funds • A-3 6 Combined Statement of Revenues, Expenses and Changes in Retained Earnings -All Proprietary Fund Types and Nonexpendable Trust Fund A-4 7 Combined Statement of Cash Flows-All Proprietary Fund Types and Nonexpendable Trust Fund A-5 8 Notes to the Financial Statements 9-43 REQUIRED SUPPLEMENTARY INFORMATION: Texas Municipal Retirement System -Analysis of Funding Progress- Last Ten Plan Years B-1 44 Wichita Falls Firemen's Relief and Retirement Fund -Analysis of Funding Progress B-2 45 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS: General Fund: Comparative Balance Sheets C-1 46 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-2 47-50 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2002 TABLE OF CONTENTS (CONT'D.) Exhibit Page COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS (CONT'D.): Special Revenue Funds: Combining Balance Sheet D--1 51 Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual D--2 52 Community Development Block Grant Fund: Comparative Balance Sheets D--3 53 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual D--4 54 Section 8 Housing Fund: Comparative Balance Sheets D--5 55 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual D--6 56 Home Investment Partnership Agreement Fund: Comparative Balance Sheets D--7 57 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D--8 58 Hotel/Motel Tax Fund: Comparative Balance Sheets D--9 59 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual D-10 60 Miscellaneous Special Revenue Fund: Comparative Balance Sheets D-11 61 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D-12 62 Debt Service Fund: Comparative Balance Sheets E-1 63 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual E-2 64 Capital Projects Funds: Combining Balance Sheet F-1 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances F-2 66 Enterprise Funds: Combining Balance Sheet G-1 67-68 Combining Statement of Revenues, Expenses and Changes in Retained Earnings G-2 69 Combining Statement of Cash Flows G-3 70-71 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2002 TABLE OF CONTENTS (CONT'D.) Exhibit Page COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS (CONT'D.): Internal Service Fund: Combining Balance Sheet H-1 72 Combining Statement of Revenues, Expenses and Changes in Retained Earnings _ H-2 73 Combining Statement of Cash Flows H-3 74 Trust and Agency Funds: - Combining Balance Sheet I-1 75 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances: Excess Sales Tax Expendable Trust Fund 1-2 76 Cemetery Perpetual Care Nonexpendable Trust Fund 1-3 77 Comparative Statements of Cash Flows- Cemetery Perpetual Care Nonexpendable Trust Fund 1-4 78 Agency Funds- Combining Statement of Changes in Assets and Liabilities 1-5 79 Discretely Presented Component Units: Combining Balance Sheet J-1 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances J-2 81 SUPPORTING SCHEDULES: Combined Schedule of Bonded Debt and Interest Maturities K--1 82 Combined Schedule of Bonds Payable K--2 83-86 Debt Service Coverage- Revenue Bonds K--3 87 General Fixed Assets Account Group—Comparative Schedule of General Fixed Assets- By Sources K--4 88 General Fixed Assets Account Group- Schedule of Changes in General Fixed Assets- By Sources K--5 89 General Fixed Assets Account Group- Schedule of General Fixed Assets- By Function and Activity K--6 90 General Fixed Assets Account Group- Schedule of Changes in General Fixed Assets- By Function and Activity K--7 91 Golf Fund - Plant, Equipment and Depreciation K--8 92 Municipal Airport Fund - Plant, Equipment and Depreciation K--9 93 Kickapoo Airport Fund —Plant, Equipment and Depreciation K-10 94 Transit Fund - Plant, Equipment and Depreciation K-11 95 Sanitation Fund - Plant, Equipment and Depreciation K-12 96 Water and Sewer Fund - Plant, Equipment and Depreciation K-13 97 Stormwater Drainage Fund —Plant, Equipment and Depreciation K-14 98 Fleet Maintenance Fund - Plant, Equipment and Depreciation K-15 99 Duplicating Services Fund K-16 100 Wichita Falls Economic Development Corporation —Schedule of Changes in General Fixed Assets K-17 101 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2002 TABLE OF CONTENTS (CONTD.). Exhibit Page STATISTICAL SECTION (UNAUDITED) General Governmental Expenditures by Function (General Fund Only) - Last Ten Fiscal Years L--1 102 General Governmental Revenues by Source (General Fund Only) - _ Last Ten Fiscal Years L--2 103 Property Tax Levies and Collections- Last Ten Fiscal Years L--3 104 Assessed and Estimated Actual Value of Taxable Property- Last Ten Fiscal Years L--4 105 Property Tax Rates and Tax Levies- Direct and Overlapping Governments- Last Ten Fiscal Years L--5 106 Ten Largest Taxpayers L--6 107 Special Assessment Collections (Capital Improvement Assessments Fund) - Last Ten Fiscal Years L--7 108 Computation of Legal Debt Margin L--8 109 Ratio of Net General Bonded Debt to Assessed Value and Net General Bonded Debt Per Capita - Last Ten Fiscal Years L--9 110 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures- Last Ten Fiscal Years L-10 111 Computation of Direct and Overlapping General Bonded Debt L-11 112 Revenue Bond Coverage - Water and Sewer Revenue Bonds- Last Ten Fiscal Years L-12 113 Demographic Statistics- Last Ten Fiscal Years L-13 114 Property Value, Building Permits and Bank Deposits- Last Ten Fiscal Years L-14 115 Miscellaneous Statistical Data L-15 116 Schedule of InsDrance Coverage L-16 117-121 Graphics: Cash and Investments M--1 122 Total Bonds Payable M--2 123 General Obligation Bonds Payable M--3 124 Revenue Bonds Payable M--4 125 General Fund Equity M--5 126 Comparison of Tax Levy and Collections M--6 127 Revenues By Source- FYE 9/30/02 M--7 128 Expenditures By Function - FYE 9/30/02 M--8 129 General Governmental Revenues (General Fund Only) M--9 130 General Governmental Expenditures (General Fund Only) M-10 131 n Pnk !"r INTRODUCTORY SECTION 74 Wichita s March 5,2003 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 of the City of Wichita Falls, Texas for the fiscal year ended September 30, 2002. 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 Comprehensive Annual Financial Report of the City of Wichita Falls, Texas, for the year ended September 30, 2002, was prepared in accordance with accounting principles as promulgated by the Governmental Accounting Standards Board (GASB). The general purpose 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 Comprehensive Annual Financial Report of the City of Wichita Falls, Texas, is reported in three sections; introductory, financial and statistical. The introductory section includes this transmittal letter, Certificate of Achievement for Excellence in Financial Reporting, the government's organizational chart and a list of principal City officials. The financial section includes the independent auditors' report, general purpose financial statements and related notes, required supplementary information, and combining and individual fund and account group financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. 1300 7th Street P.O.Box 1431 Wichita Falls,Texas 76307 GENERAL INFORMATION- CITY OF WICHITA FALLS,TEXAS The City of Wichita Falls is located 15 miles south of the Red River/Oklahoma border at the intersection of Interstate 44 and U.S. Highway 287 and is equidistant from Dallas and Oklahoma City, approximately 125 miles. 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 2002 population for Wichita Falls is estimated at 104,544, an increase of.33% over the 2000 Census estimates, and an increase of 8.62% over the 1990 population. CITY SERVICES AND THE REPORTING ENTITY 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. This report includes all funds and account groups of the City of Wichita Falls and all of its component units in accordance with Governmental Accounting Standards Board (GASB) Statement No. 14, which defines the criteria for inclusion of other agencies, institutions, commissions, public authorities, or other governmental organizations in the reporting entity's general purpose financial statements. Four legally separate organizations, for which the City is financially accountable, are included in this report as component units. The Wichita Falls Economic Development Corporation, Wichita Falls 4B Sales Tax Corporation, and the Wichita Falls Reinvestment Zone #1 are reported as discretely presented component units. The Employee Benefit Trust Fund is reported as a blended component unit. Other legally separate organizations were evaluated such as the Wichita Falls Housing Authority, Wichita Falls Firemen's Relief and Retirement Fund, Wichita County Appraisal District, and the Wichita County/City Hospital Board; but they did not meet the criteria of financial interdependency, and therefore, were not included in the report. These organizations have substantial autonomy, separate governmental entity characteristics and are governed by ii separate boards. Also, the City does not provide funds to these entities, nor is the City obligated to finance any deficits they may incur or guarantee the indebtedness of these organizations. 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. Like elsewhere in the nation, 2002 was a difficult year for major industrial development activities in Wichita Falls. The reality was that corporate accountability, the national economy, and the tragic events of September 11, all caused delays or eliminations of expansion plans and/or new developments. Residential and commercial construction activity, however, continued to remain strong. The total value of new residential construction permits for the 2001-02 fiscal year was $36,235,687, which is an increase of$8,696,067 or 31.58% over the prior year. Commercial real estate transactions and new construction over the last year have also been extremely healthy. Although the value of building permits for commercial construction and expansion decreased by 8.05% from the prior year, the total value remained strong at $55,856,847. The following entities announced expansion, new construction or consolidations in excess of$1,000,000 in value during the 2001-02 fiscal year: • United Regional Health Care Systems. Eleven separate building permits for the West Wing Addition at a total of 75,000 sq. ft. with an estimated cost of$15,413,000. • Crossroads Apartments. A total of 101,620 sq. ft. with an estimated cost of$4,355,000. • Orthopedic Sports Therapy Center. A total of 27,400 sq. ft. with an estimated cost of $3,500,000. • North Park Apartments. A total of 80,492 sq. ft. with an estimated cost of$3,000,000. • Hawthorne Suites. A total of 17,813 sq. ft. with an estimated cost of$2,050,000. • Empire Paper. A total of 54,617 sq. ft. with an estimated cost of$1,150,000. Another indicator of economic condition is income from the local sales and use tax. The local sales tax rate in the city is two percent. Although numerous cities in Texas experienced iii • significant reductions in retail sales during the 2001-02 fiscal year, income from this tax in Wichita Falls only decreased by $134,908, or .62% from the 2000-01 fiscal year. MAJOR INITIATIVES For The Year. The City Council has identified programs to meet citizens' requests for services and to safeguard the environment. During this fiscal year, 4B Sales Tax Corporation funds were expended for architectural/consulting services to prepare for the construction of a police-fire training center to replace existing facilities that are obsolete and inadequate. The proposed plan is to construct a state-of-the-art training center that will improve coordinated training efforts in the City's public safety programs. The conceptual design of the facility includes classrooms, a physical fitness area, fire apparatus bay, storage areas for training materials, and limited office space. Additionally, the facility will provide space to house a new public safety dispatching area. At present, preliminary construction cost estimates are projected to be $4.6 million. In addition, 4B Sales Tax Corporation funds are programmed for the construction of a new training field for the Fire Department. This facility will provide a multitude of amenities designed to simulate fires and other incident responses. Construction activities have begun on this project and the total cost for the facility is estimated to be $1.1 million. Another significant public safety related project funded with 4B Sales Tax funds is the Public Safety Communications Project. Consultants have been retained to assist in the planning and acquisition of an integrated public safety communication system including two-way radio, computer-aided dispatching, records management computer systems, and mobile data wireless communication systems. The installation of this equipment is expected to cost approximately $12 million, much of which is planned to be funded with debt financing. 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 October 2000 and again in February 2001 to begin generating revenues sufficient to finance this new debt service obligation. An electricity savings project that was implemented during the 2001-02 fiscal year involved the replacement of the red and yellow standard filament traffic signal lamps at all of the City's iv intersections with Light Emitting Diodes (LED's). A total of $171,000 was expended to purchase these LED indicators which use 85% less electricity than the standard filament lamps. It is estimated that the cost savings in electricity will result in a three year return on investment. The green traffic signal lamps will be replaced with LED indicators as the cost for the green lamps proves to be cost effective. Finally, during the 2001-02 fiscal year, the Kay Yeager Coliseum was constructed, and its grand opening occurred in January 2003. This $20 million facility was the third phase of the Multi-Purpose Events Center and was financed with the use of approximately $8 million of existing cash reserves in various City funds, $5 million in private contributions, and $7 million in bond proceeds. The debt service for the bonds is being paid annually with funds from the Hotel/Motel Tax Fund, Tax Increment Financing Fund and contractual payments from the West Texas Utilities Company. For The Future. Financial planning is underway to adaptively reuse the former Holt Hotel property located in the downtown district. Through a public/private partnership, a plan has been prepared to redevelop this abandoned historic structure 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 pledges 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. Recently, the City Council has made street improvements one of its highest priorities. For several years, a total of $675,000 has been allotted for the street mill and overlay program, which provides approximately 8 miles of overlay each year. However, a 25 year overlay cycle suggests that the City should be overlaying about 21 miles per year, at a cost of about $1.9 million annually. The City Council recently began addressing this need by expending an additional $900,000 of capital project funds for the street overlay program. The City Council continued to pursue this goal during the 2002-03 budget process by approving the use of $620,000 of General Fund Reserve Funds and $655,000 of Sanitation Equity Funds for street overlay bringing the total budget to $1,950,000. During the 2001-02 fiscal year, the City Council approved a contract with a private consulting firm to provide preliminary design, final design, bidding and construction phase services for improvements at Kickapoo Downtown Airpark. The improvements are expected to 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 $3.4 million, 90% of which, will be funded with Federal Aviation Entitlement Funds. The remaining 10%will be paid for from v reserve funds in the City's two airport funds. The 2002-03 budget includes $200,000 in the Municipal Airport Fund and $142,000 in the Kickapoo Airport Fund for the City's matching requirement. Construction is expected to begin during the 2002-03 fiscal year. FINANCIAL INFORMATION In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal control as deemed appropriate by the City Manager. Internal control is designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the evaluation of costs and benefits requires estimates and judgments by the City Manager. All internal control evaluations occur within the above framework. The City believes that its internal control adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions. The Annual Operating Budget is proposed by the City Manager and approved by the City Council following public discussion. Budgetary control is maintained at the class level by the Finance Department within each division by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders which result in an overrun of class level balances are not released until additional appropriations are made available. In instances when budgetary transfers are necessary, management control of the operating budget is maintained at the fund and department level. Transfers within a department of the same fund must be approved by the City Manager. Transfers across departments or funds must be approved by the City Council. Unencumbered appropriation balances lapse at year end and are not carried forward to new budget periods. Open encumbrances are reported as reservations of fund balance at September 30, 2002, and related appropriations are carried forward to the new fiscal year through a supplemental budgetary allocation. GOVERNMENTAL FUND TYPES General Fund (Revenues) Revenues in the General Fund totaled $44,958,999 in the 2001-02 fiscal year, an increase of 3.57% from the 2000-01 fiscal year. Much of this increase is due to increases in ad-valorem taxes as a result of the continued growth in the tax base and slightly higher collection rates. Additionally, franchise taxes received from the local electric distribution company increased significantly from the prior year because the Public Utility Commission allowed Oncor to collect fuel surcharges from customers' accounts to recover the high cost of fuel that was experienced in early 2001. Charges for Services increased from the 2000-01 fiscal year due to higher administrative overhead charges to the Water and Sewer Fund and because the vi Kickapoo Airport Fund and Duplicating Services Fund were charged administrative overhead for the first time in 2001-02. Fines and Forfeitures increased from the prior year primarily due to a more aggressive fine and warrant collection program at the Municipal Court. A significant reduction in revenue is reflected in Miscellaneous Revenue due to much lower interest earnings on idle funds as a result of declining interest rates. Increase General Fund Percent (Decrease) Revenue Source Amount of Total Over Prior Year Taxes $38,462,368 85.55 $1,518,256 Charges For Service 2,007,218 4.46 223,917 Licenses and Permits 1,918,690 4.27 _ 26,591 Fines and Forfeitures 1,598,751 3.56 339,009 Intergovernmental Revenue 85,499 .19 52,180 Contributions 62,575 .14" 29,674 Miscellaneous Revenue 823,898 1.83 (639,882) TOTALS $44,958,999 100.00 $1,549,745 Assessed valuation, which is based upon 100% of market value, was $3,338,764,157, an increase of 5.22% from the prior year. The total property tax levy for the 2001-02 fiscal year was $17,635,425. Current tax collections totaled $17,210,516 or 97.59% of the total levy. The ratio of total collections (current and delinquent) to the tax levy was 99.28%. Allocation of the property tax levy by purpose for the year ended September 30, 2002, and the preceding two fiscal years was as follows: Purpose 2001-02 2000-01 1999-00 General Government $15,529,999 $14,686,254 $14,006,613 Debt Service 2,105,426 2,105,007 2,108,944 TOTALS $17,635,425 $16,791,261 $16,115,557 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, 2002, was $.55194 per $100, which means that the City has a tax margin of$1.69806 per $100, and could raise up to $56,694,219 additional tax revenue a year from the present assessed_valuation of$3,338,764,157 before the limit is reached. General Fund (Expenditures) The increase or (decrease) in levels of General Fund expenditures for major functions of the City over the preceding year is shown in the following tabulation: vii Increase Percent (Decrease) Function Amount of Total Over Prior Year Administrative Services $7,619,095 16.47 $355,219 Police 14,050,692 30.38 756,695 Fire 9,028,643 19.52 616,386 Parks and Recreation 3,289,405 7.11 229,810- Finance 1,702,554 3.68 212,893 • Community Development 1,102,996 2.38 791 Public Works 4,900,411 10.59 491,935 Health 2,223,359 4.81 143,278 Traffic and Transportation 1,986,855 4.30 279,644 Capital Outlay 352,733 .76 (1,012,499) TOTALS $46,256,743 100.00 $2,074,152 Expenditures in the General Fund totaled$46,256,743, an increase of 4.69%from the 2000-01 fiscal year. Some of the major expenditure increases when compared to the prior year are: (1) the Administrative Services Department experienced higher expenses for worker's compensation claims, vacation and sick leave payments to outgoing employees, higher outside legal expenses, and higher Municipal Court expenses for the Warrant Officer Program; (2) the Police Department incurred higher expenses due to a 2% cost of living increase and the 2% step pay plan adjustments, additional costs associated with four Police Officer positions that were previously funded by the Universal Hiring Grant, and higher costs for outside lab analyses for evidence and autopsies; (3) the Fire Department received a 4% cost of living increase for civil service personnel and a 2% step plan adjustment, an increase in fire pension contributions, and experienced higher utility expenses for the three new fire stations; (4) Parks and Recreation experienced higher costs due to salary adjustments and for the lot mowing program now that the program includes privately owned lots that are found to be in violation of the City's weed ordinances; (5) the Finance Department incurred higher expenses due to the addition of one new position in the Information Systems Division and to upgrade numerous older computer workstations; (6) the expenses in the Public Works Department were higher than in the prior year because the budget for the 2000-01 Street Overlay Program was encumbered in the prior year but not expended until the 2001-02 fiscal year; and (7) the Traffic and Transportation Department replaced the red and yellow standard filament traffic signal lamps at all of the City's intersections with Light Emitting Diodes as an energy efficiency measure. One significant reduction in expenses is reflected in Capital Outlay because the 2000-01 fiscal year included costs associated with the replacement of the HVAC system in Memorial Auditorium/City Hall. viii General Fund (Fund Balance) The General Fund had a total fund balance as of September 30, 2002 of $9,052,742, a reduction of$1,025,722, or 10.18% from the prior year. Much of this reduction is due to the planned use of fund balance to purchase mowing equipment, computer upgrades, traffic signal equipment, and other minor capital outlay items. The unreserved fund balance ended the fiscal year at $8,367,731, a reduction of$382,303, or 4.37% from the prior year. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trust funds or major capital projects)that are legally restricted to be expended for specified purposes. The Hotel/Motel Tax Fund is a Special Revenue Fund that accounts for revenues from the City-imposed tax of 7% on rental of hotel/motel rooms within the city. Revenues in this fund were $1,193,623 compared to $1,116,968 in the prior year, an increase of 6.86%. Expenditures from this fund are for programs designed to promote tourism in the community. Expenditures were $516,427 and the operating transfer for debt service on the MPEC facility was $283,150, resulting in an increase in fund balance of $394,046. Several factors contributed to this increase in fund balance: (1) higher than anticipated revenues; (2) lower operating subsidies to the MPEC Corporation; and (3) the elimination of funding for the Dallas Cowboys Summer Training Camp and the Wichita Falls Museum and Art Center. Total fund balance of the Hotel/Motel Tax Fund was $1,025,071 as of September 30, 2002. The Community Development Block Grant Fund, Section 8 Housing Fund, and Home Investment Partnership Agreement Fund, which are used primarily to subsidize rents, housing payments, and other programs for lower income families within the City, are also included as Special Revenue Funds. During the 2001-02 fiscal year, the Section 8 Program reflects an increase in financial activity from the prior year due to an increase of 179 housing vouchers that were previously provided to a local project based Section 8 Rental Program. The Miscellaneous Special Revenue Fund accounts primarily for various revenues generated in the form of contributions, fees, concessions, rents and other charges and their related expenditures. There are also numerous grant related funds accounted for in the Miscellaneous Special Revenue Fund. Revenues in this fund increased by $305,462, or 8.00% from the prior year primarily because funds were received from the Federal Aviation Administration for airport security and new grant programs were approved for the Health Department to assist with bio-terrorism and controlling West Nile Virus. Capital Projects Funds The Capital Projects Funds are used to account for all resources used•for the acquisition of capital facilities except those financed by enterprise funds. At the end of the fiscal year, completed projects are transferred to the General Fixed Asset Account Group. During the 2001-02 fiscal period, expenditures from the Capital Projects Funds amounted to $14,108,742 primarily for the Multi-Purpose Events Center Coliseum Construction Project and street improvements. Fund balance in the Capital Projects Fund as of September 30, 2002, totaled $8,589,845, principally for projects related to drainage improvements, MPEC Coliseum, and 4B Sales Tax Projects. ix PROPRIETARY FUNDS Water And Sewer Fund The Water and Sewer operations for the past three years are presented in the following tabulation: 2001-02 2000-01 1999-00 Operating Revenues $27,142,642 $ 25,647,505 $ 20,415,672 Operating Expenses 16,590,199 17,577.690 16,825,909 Operating Income 10,552,443 8,069,815 3,589,763 Nonoperating Revenues(Expenses) (4,730,360) (1,143,656) (624,611) Operating Transfers (897,716) (2,876,799) (706,015) Net Income $4.924.367 $ 4.049.360 $ 2.259.137 Operating revenues in the 2001-02 fiscal year were 5.83% higher than in the prior year because rate increases that were approved in February 2001 were in place for the entire fiscal year. This revenue increase is slightly misleading because water consumption actually declined by approximately 10% from the prior year due to unseasonably wet weather conditions during the summer of 2002. Operating expenses decreased by 5.62% from the prior year primarily due to lower chemical supply costs, electricity usage, and sludge disposal costs, as a result of the lower demand for water. Non-operating expenses increased considerably because the first year of interest expense was incurred on the debt that was issued in September 2001 for major water system improvements. A lower operating transfer amount is reflected in the Water and Sewer Fund because during the 2000-01 fiscal year, a large transfer of funds received from the West Texas Utilities Company was made to the MPEC Coliseum Capital Project Fund. Golf Fund The Golf Fund accounts for operating revenues and expenses of the Weeks Park Golf Course. Operating revenues of the Golf Fund for the year ended September 30, 2002, were $783,519, an increase of$15,436, or 2.01% from the prior year. Operating expenses for the Golf Fund were $744,775, an increase of$12,093, or 1.65% from the prior year. The operating income for the fund was $38,744 and the net income was $32,775. Unrestricted cash and cash equivalents ended the fiscal year at $165,674. Municipal Airport Fund Operating revenues of the Municipal Airport for the year ended September 30, 2002, were $311,152 compared to $375,449 in the prior year. Much of this decrease was due to a reduction in air travel subsequent to the events of September 11. Operating expenses were $299,779 compared to $334,924 in the prior year, a decrease of 10.49%. The primary reason x for this decrease in expenses is due to the reclassification of the vacant Airport Administrator's position to a Customer Service Attendant. The operating income for the fund was $11,373; however, the net income was a loss of $20,331 due to operating transfers to Airport Grant Funds for matching funds associated with the Master Plan being conducted for the Kickapoo Airpark. Unrestricted cash and cash equivalents ended the fiscal year at $298,737. Kickapoo Airport Fund P P This fund was created during the 1999-00 fiscal year to account for the financial activity of the Kickapoo Airpark that was purchased in June 2000 from the private sector. Operating revenues for the 2001-02 fiscal year were $340,954 and operating expenses were $315,218, resulting in an operating income of $25,736. Net income for the fund was $12,345 after accounting for interest income and an operating transfer to an Airport Grant Fund to assist with matching requirements for the Master Plan at the Airpark. Unrestricted cash and cash equivalents ended the fiscal year at$201,469. 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 intergovernmental revenue from the Federal Transit Administration and the Texas Department of Transportation. Operating revenues principally derived from passenger fees totaled $180,893, a decrease of 10.53% from the prior year. Operating expenses were $1,016,583, which is a decrease of 8.44% from 2000-01.. Much of this reduction in operating expenses was due to lower fuel and maintenance expenses for the bus fleet and lower workers compensation costs. The City's operating subsidy to the Transit Fund remained relatively unchanged from the prior year at $152,639. Sanitation Fund Sanitation Fund revenues for the year ended September 30, 2002, were $7,618,458, a decrease of 9.43% from the prior year. Much of this reduction was due primarily to the loss of a few large industrial landfill disposal accounts to the private sector. These revenues should be restored in the 2002-03 fiscal year as the City recently has been successful through contract negotiations in recovering these accounts to the City's customer base. Operating expenses were $8,166,843, an increase of$1,088,778, or 15.38% from the prior year. This increase is almost entirely due to costs associated with the construction of a new landfill cell liner. Unrestricted cash and cash equivalents and short term investments ended the 2001-02 fiscal year at $5,362,133, a reduction of$2,614,537 from the prior year. Storm Water Drainage Fund The Storm Water Drainage Fund was established effective May 1, 2001 to account for operating revenues and expenses associated with the Storm Water Drainage Utility System. Total operating revenues of the System for the year ended September 30, 2002 were $1,033,209. Operating expenses were only $9,475. Unrestricted cash and cash equivalents ended the fiscal year at $1,311,010. xi Internal Service Funds The City uses Internal Service Funds to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. The Fleet Maintenance Fund, Duplicating Services Fund and the Employee Benefit Trust Fund are included in the financial statements as Internal Service Funds. The Fleet Maintenance Fund is used for improved maintenance of the vehicle fleet. Divisions which use the vehicles and equipment are charged a monthly rental fee. Total operating revenues for the year ended September 30, 2002 were $7,044,378 compared to $6,791,693 in the 2000-01 fiscal year. The Duplicating Services Fund was established in the 2000-01 fiscal year to account for costs associated with the operation and maintenance of the City's Print Shop. City departments are charged a fee based upon actual usage. Operating revenues for the Duplicating Services Fund for the year ended September 30, 2002, were $294,920 and operating expenses were $288,227. 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. Operating revenues for the Employee Benefit Trust Fund for the year ended September 30, 2002, were $5,614,597. Operating expenses in fiscal year 2002 were $5,903,404, an increase of 12.11% from the prior year. This increase in operating expenses is due to the continuing increase in the cost of health claims, and resulted in an operating loss of $288,807. FIDUCIARY FUNDS Fiduciary Funds are set up for the purpose of accounting for money and property received from non-enterprise fund sources and held by a governmental unit in the capacity of trustee, custodian, or agent for individuals, governmental entities and non-public organizations. Included in the Fiduciary Funds are the Excess Sales Tax Fund, Cemetery Perpetual Care Fund, Payroll Fund and the Escheatment Fund. DEBT ADMINISTRATION Outstanding general obligation bonds at September 30, 2002, totaled $17,410,000 and are considered to be direct tax supported debt. The ratio of net bonded debt to assessed valuation and the amount of bonded debt per capita are useful indicators of the City's debt position to municipal management, citizens and investors. The data for the 2001-02 fiscal year were as follows: Ratio of Debt Net Direct To Assessed Debt Per Bonded Debt Value Capita $17,410,000 .52% $167 xii • The current underlying bond ratings are as follows: Moody's Investors Standard & Service Poor's General Obligation Bonds A 1 AA Water and Sewer Revenue Bonds A2 A+ 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 2001-02, 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 general purpose financial statements and combining and individual fund statements and schedules is included in the financial section of this report. In addition to meeting the requirements set forth in the City Charter, the audit also was designed to meet the requirements of the federal Single Audit Act Amendments of 1996 and related OMB Circular A-133, and the State Single Audit Act. These reports are issued under separate cover. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Wichita Falls for its comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2001. 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 xiii conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. Acknowledgments My appreciation is extended to the various elected officials, department heads and employees responsible for the fair presentation of the comprehensive annual report 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, ( 0-104//1(4.7 Jim Dockery Director of Finance xiv 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, 2001 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. tt.OFF 1/4 OF E 9 W UNITEAIFS yn CANAlUI y - Z6 UM cororu1pN s President cNoso �L� 1 Executive Director xv CITY OF WICHITA FALLS ORGANIZATIONAL CHART WICHITA FAILS CITIZENS I I COLIQSSION3 CITY COUNCIL F CBOSS I I I I I CIPAL I COURT I CITY MANAGER j I an ATTORNEY I I CITY CLERK I J11 I I I I I TRAFFIC AND FINANCE I A33I4TANT CRY I I ADlIINISTRATIVE HOUSING & HEALTH TRANSPORTATION DEPARTMENT MANAGER SERVICES COMMUNITY DEPARTMENT DEPARTMENT DEPARTMENT DEVELOPMENT ` I +ANCE- i_d u. 1 1 M.L X I /MCP AIRPORT PUBLIC 1_ TRANSPORTATION I I ACCOUNTING COLLECTION CENTER 1 ICOM N1JNICATIO1 PLANNING � INSPECTION..i BUILDING I IADIWTRATIONF�ENVIRONMENTAL' R ENGINEERINGC SERVICE3 PURCHASING H SYSTEMSINFWW N IlHRARY FARMERS MARKET I HOUSING ���E�T 1 �PNNURSING POLLUTIONLIC HEALTH LAB / • I AUDITORIUM 1 I M AIRENANC6 I PROPERTYH TRANSPORTATION 1! MANAGEMENTPLANNING IPERSONNEL ' IDUPLICATING SERVICES I GOLD COURSE I MUNICIPAL COURT I I POLICE FIRE PARKS AND PUBLIC WORKS/ DEPARTMENT DEPARTMENT RECREATION PUBLIC UTILITIES DEPARTMENT DEPARTMENT TECHNICAL SERVICES 1 SUPPRESSION INVESTIGATION ARSON I I RECREATION MAINTENANCE I IENGINEERING b-i SANITATION I STREET 1111 1 FINE ELI 111 �I IADMINISTRATION' I C METER Y 1 IMAINTEN ANC EH UTDInE 1 CITY OF WICHITA FALLS, TEXAS LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30, 2001 Title Name Mayor William K. Altman Mayor Pro-Tem Johnny Burns City Council Member James Esther, Jr. City Council Member Linda Ammons City Council Member Mike Norrie City Council Member Harold Hawkins City Council Member Arthur Bea Williams 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 Barbara Clements Director of Administrative Services Jan Stricklin Police Chief Ken Coughlin Fire Chief Harold Lindsey, Jr. Director of Parks and Recreation Jack Murphy Director of Public Works and Public Utilities Scott Taylor, P.E. xvii i FINANCIAL SECTION 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 mwhOmwhac.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 general purpose financial statements of the City of Wichita Falls, Texas, as of and for the year ended September 30, 2002, 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Wichita Falls, Texas, at September 30, 2002, and the results of its operations and the cash flows of its proprietary fund types and nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued under separate cover our report dated January 24, 2003, 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 grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. As discussed in Note 24 to the financial statements, a certain error resulting in the overstatement of a previously-reported grant receivable at September 30, 2001 was discovered by management during the current year. Accordingly, the previously-reported fund balance in the special revenue fund was restated to correct the error. 1 The information listed as required supplementary information in the table of contents is not a required part of the general purpose financial statements, but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements and the supplementary information listed as supporting schedules in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Wichita Falls, Texas. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The supplementary information in the statistical section as listed in the table of contents has not been audited by us, and we do not express an opinion on it. s (4)09t, 141t414, `,(,.,PG• MATHIS, WEST, HUFFINES &CO., P.C. Wichita Falls, Texas January 24, 2003 2 • GENERAL PURPOSE FINANCIAL . STATEMENTS it z CITY OF WICHITA FALLS, TEXAS COMBINED BALANCE SHEET-ALL FUNDS TYPES,ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001 Governmental Fund Types Proprietary Fund Types Special Debt Capital Internal General Revenue Service Projects Enterprise Service ASSETS AND OTHER DEBITS Assets: Cash and cash equivalents $ 4,853,261 $3,588,245 $ 262,003 $ 9,948,116 $ 20,241,535 $ 1,727,940 Investments 2,996,324 - - - 6,012,402 - Receivables(net of allowance for uncollectible accounts): Taxes and assessments 762,558 90,465 126,168 - - - Customer and trade - - - - 3,655,823 - Other City funds 1,018,602 - - - - - Component unit - - - 2,106,193 - - Government agencies 2,966,406 3,713,073 13,891 - 314,457 - Other 1,547,251 7,055 - 394 144,363 12,956 Inventory 19,271 - - - 757,915 775,824 Prepaid items 84,979 18,000 - - 37,111 11,721 Restricted assets: Cash and cash equivalents - - - - 121,952,097 - Investments - - - - 8,971,466 - Receivables: Bond proceeds - - - - - - Other - - - - 59,436 - Plant and equipment: Land and betterments - - - - 28,362,631 433,658 Buildings,systems and improvements - - - - 141,510,705 4,010,098 Machinery and equipment - - - - 4,073,439 107,559 Fumiture and fixtures - - 42,196 6,358 Motor vehicles and equipment - - - - 1,235 33,616,778 Construction in progress - - - - 5,713,815 6,706 Accumulated depreciation - - - - (67,146,059) (21,974,336) Deferred charges - - - - 2,857,290 - Other assets - 3,000 - - - - Other debits: Amount available for debt service - - - - - - Amount to be provided for retirement of general long-term debt - - - - - - Total assets and other debits $14,248,652 $7,419,838 $ 402,062 $12,054,703 $277,561,857 $18,735,262 The accompanying Notes are an integral part of these financial statements. 3 EXHIBIT A-1 (Page 1 of 2) Fiduciary Account Groups Totals Totals Fund Type General General Primary Reporting Entity Trust and Fixed Long-Term Government (Memorandum Only) Agency Assets Debt (Memorandum Only) Component Units 2002 2001 $ 1,308,141 $ - $ - $ 41,929,241 $ 17,471,057 $ 59,400,298 $ 60,559,588 - - - 9,008,726 - 9,008,726 7,069,070 - - 979,191 6,886 986,077 990,028 - - - 3,655,823 - 3,655,823 3,712,473 - - - 1,018,602 - 1,018,602 746,085 - - - 2,106,193 - 2,106,193 1,535,812 37,918 - - 7,045,745 931,156 7,976,901 7,558,151 850 - - 1,712,869 - 1,712,869 834,649 - - - 1,553,010 - 1,553,010 1,508,087 - - - 151,811 - 151,811 86,633 - - 121,952,097 - 121,952,097 24,883,434 - - 8,971,466 - 8,971,466 - - - - - - 119,591,856 - - - 59,436 - 59,436 16,701 - 23,416,215 - 52,212,504 140,480 52,352,984 50,552,774 - 27,644,389 - 173,165,192 459,520 173,624,712 167,868,606 7,956,633 - 12,137,631 - 12,137,631 11,123,031 214,110 - 262,664 - 262,664 262,664 - 31,485 - 33,649,498 - 33,649,498 31,360,734 - 17,632,581 - 23,353,102 - 23,353,102 9,379,467 - - - (89,120,395) - (89,120,395) (84,860,608) - - - 2,857,290 - 2,857,290 3,132,055 - - - 3,000 - 3,000 3,000 - - 270,530 270,530 - 270,530 495,391 - 22,396,041 22,396,041 - 22,396,041 23,772,643 $ 1,346,909 $ 76,895,413 $ 22,666,571 $ 431,331,267 $ 19,009,099 $450,340,366 $442,182,324 (Continued) CITY OF WICHITA FALLS, TEXAS COMBINED BALANCE SHEET-ALL FUNDS TYPES,ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS (CONTD.) SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001 Governmental Fund Types Proprietary Fund Types Special Debt Capital Internal General Revenue Service Projects Enterprise Service LIABILITIES.EQUITY AND OTHER CREDITS Liabilities: Accounts payable-trade $ 682,648 $ 204,435 $ - $ 1,259,024 $ 829,829 $ 233,564 . Accrued payroll 569,030 41,299 - - 149,635 29,903 Accrued vacation and sick leave 290,000 - - - 329,228 44,134 Payable to other City funds 84 733,694 53 - 284,771 - Payable to primary government - - - - - - Payable to government agencies 121,686 243,979 - - 49,353 - Estimated health claims payable - - - - - 618,170 Tax anticipation notes payable - - - 660,000 - - Other liabilities 1,533,918 159,871 - 1,545,834 64,963 500 Deferred revenue 1,758,319 125,694 131,479 - 2,710 - Claims and judgments payable 240,225 - - - - - Payable from restricted assets: Contracts and trade - - - - - Revenuebonds-current maturities - - - - 3,981,101 - Accrued interest-revenue bonds - - - - 1,422,473 - Arbitrage rebate-current - - - - 76,826 - General obligation bonds payable - - - - - - Payable to U.S.Government - - - - 807,674 - Revenue bonds,less current maturities - - - - 168,368,340 - Arbitrage rebate,less current portion - - - - 166,390 - Estimated liability for landfill closure and postclosure care costs - - - - 3,320,021 - Other long-term liabilities: • Customer deposits-payable from restricted assets - - - - 2,151,432 - Total liabilities 5,195,910 1,508,972 131,532 3,464,858 182,004,746 926,271 Equity and other credits: Investment in general fixed assets - - - - - - Contributed capital - - - - 28,391,003 25,974,328 Retained earnings(deficit): Reserved for revenue bond debt service - - - - 14,549,095 - Unreserved - - - - 52,617,013 (8,165,337) Fund balances: Reserved for encumbrances 580,761 123,747 - 1,525,684 - Reserved for inventory and prepaid items 104,250 18,000 - - - - Unreserved: Designated for: Subsequent years expenditures 3,000,000 4,744,048 - 7,639,433 - - Debt service - - 270,530 - - - Perpetual care - - - - - - Undesignated 5,367,731 1,025,071 - (575,272) - - Total equity and other credits 9,052,742 5,910,866 270,530 8,589,845 95,557,111 17,808,991 Total liabilities,equity and other credits $14,248,652 $7,419,838 $ 402,062 $12,054,703 $277,561,857 $18,735,262 The accompanying Notes are an integral part of these financial statements. 4 EXHIBIT A-1 (Page 2 of 2) Fiduciary Account Groups Totals Totals Fund Type General General Primary Reporting Entity Trust and Fixed Long-Term Government (Memorandum Only) Agency Assets Debt (Memorandum Only) Component Units 2002 2001 - $ 409,213 $ - $ - $ 3,618,713 $ 615 $ 3,619,328 $ 3,375,905 - - - 789,867 - 789,867 590,580 - - 5,011,795 5,675,157 - 5,675,157 5,444,557 - - - 1,018,602 - 1,018,602 746,085 - - - 2,106,193 2,106,193 1,535,812 - - 415,018 - 415,018 252,708 - - - 618,170 - 618,170 679,732 - - - 660,000 - 660,000 965,000 28,593 - - 3,333,679 7,776 3,341,455 1,927,426 - - - 2,018,202 - 2,018,202 1,232,632 - - 244,776 485,001 - 485,001 508,016 - - - - - - 8,025 - - - 3,981,101 - 3,981,101 4,299,753 - - 1,422,473 - 1,422,473 950,604 - - - 76,826 - 76,826 - - 17,410,000 17,410,000 - 17,410,000 19,215,000 - - - 807,674 - 807,674 832,565 - - - 168,388,340 - 168,368,340 172,349,440 - - 166,390 - -166,390 - - - - 3,320,021 - 3,320,021 3,201,245 - - - 2,151,432 - 2,151,432 2,066,807 437,806 - 22,666,571 216,336,666 2,114,584 218,451,250 220,181,892 - 76,895,413 - 76,895,413 600,000 77,495,413 63,632,648 - - - 54,365,331 - 54,365,331 52,594,323 - - - 14,549,095 - 14,549,095 8,570,885 - - - 44,451,676 - 44,451,676 47,746,227 - - 2,230,192 6,098,096 8,328,288 5,146,725 - - 122,250 - 122,250 89,656 - - - 15,383,481 10,196,419 25,579,900 37,656,491 342,836 - - 613,366 - 613,366 495,391 566,267 - - 566,267 - 566,267 527,207 - - - 5,817,530 - 5,817,530 5,540,879 909,103 76,895,413 - 214,994,601 16,894,515 231,889,116 222,000,432 $ 1,346,909 $ 76,895,413 $ 22,666,571 $ 431,331,267 $ 19,009,099 $450,340,366 $442,182,324 CITY OF WICHITA FALLS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-ALL GOVERNMENTAL FUND TYPES, EXPENDABLE TRUST FUND, AND DISCRETELY PRESENTED COMPONENT UNITS FOR THE YEAR ENDED SEPTEMBER 30,2002 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30,2001 Governmental Fund Types Special Debt Capital General Revenue Service Projects Revenues: Taxes $ 38,462,368 $ 1,174,983 $ 2,123,395 $ - Charges for services 2,007,218 146,005 - - - - Licenses and permits 1,918,690 - - - Fines and forfeitures 1,598,751 199,044 - - Intergovernmental revenue 85,499 8,914,558 - - Contributions 62,575 74,638 - 700,000 Miscellaneous revenue 823,898 654,311 25,728 324,010 Total revenues 44,958,999 11,163,539 2,149,123 1,024,010 Expenditures: Current: Administrative services 7,619,095 872,093 - - Police 14,050,692 665,453 - - Fire 9,028,643 55,891 - - Parks and recreation 3,289,405 532,386 - - Accounting/finance 1,702,554 - - - Community development 1,102,996 4,867,763 - - Public works 4,900,411 398,066 - 905,820 Health 2,223,359 1,923,239 - - Traffic and transportation 1,986,855 274,480 - - Capital outlay 352,733 393,263 - 13,164,953 Debt service: Principal retirement - - 1,805,000 - Interest and paying agent fees - - 1,143,555 37,969 Total expenditures 46,256,743 9,982,634 2,948,555 14,108,742 Excess of revenues over(under)expenditures (1,297,744) 1,180,905 (799,432) (13,084,732) Other financing sources(uses): Operating transfers in 1,108,234 349,054 769,189 - ' Operating transfers in-component units - - 105,000 1,118,969 ' Operating transfers out (409,260) (307,779) - - Operating transfers out-primary government - - - - Bond proceeds - - - - Proceeds of refunding bonds - - - - Payment to refunded bonds escrow agent - Total other financing sources(uses) 698,974 41,275 874,189 1,118,969 Excess of revenues and other sources over(under)expenditures and other uses (598,770) 1,222,180 74,757 (11,965,763) Fund balance-beginning 10,078,464 4,999,318 195,773 20,640,008 Prior period adjustment - (102,443) - - Residual equity transfers (426,952) (208,189) - (84,400) Fund balance-ending $ 9,052,742 $ 5,910,866 $ 270,530 $ 8,589,845 The accompanying Notes are an integral part of these financial statements. 5 EXHIBIT A-2 Fiduciary Totals - Totals Fund Type Primary Reporting Entity Expendable Government (Memorandum Only) Trust (Memorandum Only) Component Units 2002 2001 $ 37,918 $ 41,798,664 $ 5,593,010 $ 47,391,674 $ 46,039,377 - 2,153,223 - 2,153,223 1,825,170 - 1,918,690 - 1,918,690 1,892,099 - 1,797,795 - 1,797,795 1,404,205 - 9,000,057 - 9,000,057 8,207,044 - 837,213 - 837,213 3,451,239 5,300 1,833,247 404,838 2,238,085 3,454,183 43,218 59,338,889 5,997,848 65,336,737 66,273,317 - 8,491,188 - 8,491,188 8,592,476 - 14,716,145 - 14,716,145 14,062,836 - 9,084,534 - 9,084,534 8,447,773 - 3,821,791 - 3,821,791 3,626,134 - 1,702,554 - 1,702,554 1,489,661 - 5,970,759 1,195,325 7,166,084 6,143,904 - 6,204,297 - 6,204,297 4,760,212 - 4,146,598 - 4,146,598 3,872,347 - 2,261,335 - 2,261,335 1,778,879 - 13,910,949 - 13,910,949 4,852,858 - 1,805,000 - 1,805,000 1,690,000 - 1,181,524 - 1,181,524 875,128 - 73,296,674 1,195,325 74,491,999 60,192,208 43,218 (13,957,785) 4,802,523 (9,155,262) 6,081,109 - 2,226,477 - 2,226,477 12,357,157 - 1,223,969 - 1,223,969 2,081,955 - (717,039) - (717,039) (8,867,585) - - (1,223,969) (1,223,969) (2,081,955) - - - - 7,000,000 - - - - 3,218,670 - - - - (3,025,400) - 2,733,407 (1,223,969) 1,509,438 10,682,842 43,218 (11,224,378) 3,578,554 (7,645,824) 16,763,951 299,618 36,213,181 12,715,961 48,929,142 32,607,934 - (102,443) - (102,443) - - (719,541) - (719,541) (442,743) $ 342,836 $ 24,269,262 $ 16,294,515 $ 40,563,777 $ 48,929,142 CITY OF WICHITA FALLS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL- GENERAL, SPECIAL REVENUE,AND DEBT SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2002 General Fund Variance- - Favorable Budget Actual (Unfavorable) Revenues: Taxes $ 38,050,386 $ 38,462,368 $ 411,982 Charges for services 2,004,143 2,007,218 3,075 Licenses and permits 1,979,260 1,918,690 (60,570) Fines and forfeitures 1,437,000 1,598,751 161,751 Intergovernmental revenue 51,600 85,499 33,899 Contributions - 62,575 62,575 Miscellaneous revenue 1,220,641 823,898 (396,743) Total revenues 44,743,030 44,958,999 215,969 Expenditures: Current: Administrative services 7,667,684 7,619,095 48,589 Police 14,088,667 14,050,692 37,975 Fire 9,045,117 9,028,643 16,474 Parks and recreation 3,412,006 3,289,405 122,601 Accounting/finance 1,750,995 1,702,554 48,441 Community development 1,183,712 1,102,996 80,716 Public works 5,463,719 4,900,411 563,308 Health 2,251,812 2,223,359 28,453 Traffic and transportation 1,991,922 1,986,855 5,067 Capital outlay 747,531 352,733 394,798 Debt service: Principal retirement - - - Interest and paying agent fees - - - Total expenditures 47,603,165 46,256,743 1,346,422 Excess of revenues over(under)expenditures (2,860,135) (1,297,744) 1,562,391 Other financing sources(uses): Operating transfers in 1,108,235 1,108,234 (1) Operating transfers out (414,103) (409,260) 4,843 Total other financing sources(uses) 694,132 698,974 4,842 Excess of revenues and other sources over (under)expenditures and other uses $ (2,166,003) (598,770) $ 1,567,233 Fund balance-beginning 10,078,464 Prior period adjustment - Residual equity transfers (426,952) Fund balance-ending $ 9,052,742 The accompanying Notes are an integral part of these financial statements. 6 EXHIBIT A-3 Special Revenue Funds Debt Service Fund Variance- Variance- Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) • $ 1,069,525 $ 1,174,983 $ 105,458 $ 2,104,120 $ 2,123,395 $ 19,275 345,826 146,005 (199,821) - - - 111,841 199,044 87,203 - - - 9,443,374 8,914,558 (528,816) - - - 74,638 74,638 - - - - 564,958 654,311 89,353 - 25,728 25,728 11,610,162 11,163,539 (446,623) 2,104,120 2,149,123 45,003 1,694,823 872,093 822,730 - - - 1,249,946 665,453 584,493 - - - 80,699 55,891 24,808 - - - 1,196,649 532,386 664,263 - - - 7,931,712 4,867,763 3,063,949 - - - 716,609 398,066 318,543 - - - 2,497,259 1,923,239 574,020 - - - 1,029,979 274,480 755,499 - - - 1,106,111 393,263 712,848 - - - - - - 1,805,000 1,805,000 - - - - 1,173,310 1,143,555 29,755 17,503,787 9,982,634 7,521,153 2,978,310 2,948,555 29,755 (5,893,625) 1,180,905 7,074,530 (874,190) (799,432) 74,758 369,263 349,054 (20,209) 769,190 769,189 (1) (321,314) (307,779) 13,535 105,000 105,000 - 47,949 41,275 (6,674) 874,190 874,189 (1) $ (5,845,676) 1,222,180 $ 7,067,856 $ - 74,757 $ 74,757 4,999,318 195,773 (102,443) - (208,189) - $ 5,910,866 $ 270,530 EXHIBIT A-4 CITY OF WICHITA FALLS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUND FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001 Fiduciary Proprietary Fund Types Fund Type Totals Internal Nonexpendable (Memorandum Only) Enterprise Service Trust 2002 2001 Operating revenues: Charges for services $36,522,437 $7,306,633 $ - $43,829,070 $42,285,732 Rents,concessions and other 888,390 283,146 27,830 1,199,366 1,360,516 Contributions - 5,364,116 - 5,364,116 5,325,643 Total operating revenues 37,410,827 12,953,895 27,830 50,392,552 48,971,891 Operating expenses: Personnel services 10,168,923 1,663,569 - 11,832,492 11,503,862 Supplies and materials 1,405,590 1,871,729 - 3,277,319 3,724,721 Maintenance and repairs 3,129,117 1,603,026 - 4,732,143 4,170,602 Utilities and other services 6,817,118 92,855 - 6,909,973 7,383,528 Insurance and contract support 629,246 5,672,245 - 6,301,491 5,787,450 Other expenses 1,736,914 379,864 - 2,116,778 1,973,555 Depreciation and amortization 3,255,964 2,983,016 - 6,238,980 6,131,515 Total operating expenses 27,142,872 14,266,304 - 41,409,176 40,675,233 Operating income(loss) 10,267,955 (1,312,409) 27,830 8,983,376 8,296,658 Nonoperating revenues(expenses): Interest income 3,344,065 39,261 11,230 3,394,556 2,117,809 Gain on sale/abandonment of fixed assets 13,378 144,055 - 157,433 100,633 Interest expense and paying agent fees (8,550,380) - - (8,550,380) (2,761,955) Intergovernmental operating grants 667,748 - - 667,748 815,917 Contributions 630,892 - - 630,892 - Total nonoperating revenues(expenses) (3,894,297) 183,316 11,230 (3,699,751) 272,404 Income(loss)before operating transfers 6,373,658 (1,129,093) 39,060 5,283,625 8,569,062 Operating transfers: Operating transfers in 152,639 - - 152,639 151,739 Operating transfers out (1,350,077) (312,000) - (1,662,077) (3,641,311) Net operating transfers (1,197,438) (312,000) - (1,509,438) (3,489,572) Net income(loss) 5,176,220 (1,441,093) 39,060 3,774,187 5,079,490 Retained earnings(deficit)-beginning 63,041,356 (6,724,244) 527,207 56,844,319 54,010,700 Residual equity transfers '(1,051,468) - - (1,051,468) .(2,245,871) Retained earnings(deficit)-ending $67,166,108 $(8,165,337) $ 566,267 $59,567,038 $56,844,319 The accompanying Notes are an integral part of these financial statements. 7 EXHIBIT A-5 CITY OF WICHITA FALLS, TEXAS COMBINED STATEMENT OF CASH FLOWS- ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUND FOR THE YEAR ENDED SEPTEMBER 30,2002 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30,2001 Fiduciary Proprietary Fund Types Fund Type Totals Internal Nonexpendable (Memorandum Only) Enterprise Service Trust 2W2 2W1 Cash flows from operating activities: Operating income(loss) $ 10,267,955 $ (1,312,409) S 27,830 • S 8,983,378 $ 8,266,858 Adjustments to reconcile operating income(loss) to net cash provided by operating activities: Depreciation and amortization 3,255,964 2,983,016 - 8,238,980 6,131,515 Customer deposits received 84,825 - - 84,825 35,713 Landfill closure and postclosure care costs 118,776 - - 118,770 82,789 (Increase)decrease in current assets: Receivables: Customer and trade 56,650 -• - 58,650 (348,125) Other City funds - - - - 398,032 Government agencies (208,201) - - (208,201) (82,811) Other (58,086) 13,141 (850) (43,775) (8,104) Inventory 8,244 (58,514) - (48,270) 27,224 Prepaid items (27,493) (1,745) - (29,238) (4,332) Restricted assets (42,735) - (42,735) - 79,602 Increase(decrease)in current liabilities: Accounts payable-trade (280,011) 53,340 - (228,671) 412,408 Accrued payroll 36,685 9,255 45,940 13,300 Accrued vacation and sick leave (114) (487) (601) 195 Payable to other City funds 225,341 - 225,341 59,430 Payable to government agencies 4,155 - - 4,155 3,514 Estimated health claims payable - (61,562) - (81,582) 104,438 Deferred revenue 2,710 - 2,710 Other liabilities (83,255) 500 - (82,755) (2,258) Other liabilities payable from restricted assets (8,025) - - (8,025) (50,554) Total adjustments 3,087,250 2,938,844 (850) 8,025,344 6,854,154 Net cash provided by operating activities 13,355,205 1,828,535 26,960 15,008,720 1S,1S0,812 Cash flows from noncapital financing activities: Intergovernmental operating grants 667,748 - - 667,748 815,917 Operating transfers in from other funds 152,639 - 152,639 151,739 Operating transfers out to other funds (1,350,077) (312,000) - (1,4362,077) (3,641,311) Residual equity transfers from other funds 88,150 1,684,858 - 1,771,008 2,888,814 Residual equity transfers to other funds (1,051,468) - - Net cash provided(used)by (1,051,488) (2,245,871) noncapital financing activities (1,495,008) 1,372,858 - (122,150) (2,230,912) Cash flows from capital and related financing activities: Proceeds from sale of revenue bonds 120,884.441 - - 120,884,441 - Acquisition and construction of capital assets (8,440,297) (3,704,932) - (12,145,229) (9,877,730) Proceeds from sale of fixed assets 13,378 150,383 - 163,781 112,472 Payment of bond issuance costs (1,292,585) - - (1,292,585) - Principal paid on long-term debt maturities (4,304,643) - - Interest paid on long-term debt obligations (8,003,697) (8,003,697) (2,711,931) (4,304,843) (2,474,106) Net cash provided(used)by capital and related financing activities 98,856,597 (3,554,549) - 95,302,048 (14,951,295) Cash flows from investing activities. Purchase of investments (14,983,868) - - (14,983,868) - Maturitylsale of investments - - - - 4,505,323 Interest on investments 3,587,283 39,261 11,230 3,637,774 2,117,809 Net cash provided(used)by investing activities (11,396,585) 39,261 11,230 (11,346,094) 6,623,132 Net increase(decrease)in cash and cash equivalents 99,320,209 (515,895) 38,210 98,842,524 4,591,737 Cash and cash equivalents at beginning of year 42,873,423 2,243,835 527,207 45,644,485 41,052,728 Cash and cash equivalents at end of year $ 142,193,632 $ 1,727,940 $ 565,417 $ 144,488,989 $ 45,844,485 Noncash capital and financing activities. Capital assets received from developers $ 630,892 $ - $ - $ 830,892 $ 404,590 Gross proceeds of Water and Sewer System Priority Lien Revenue Bonds,Series 2001 not received by year-end - - - - 119,591,856 Reconciliation of cash and cash equivalents on the combined balance sheet to the combined statement of cash flows. Cash and cash equivalents $ 20,241,535 $ 1,727,940 $ 1,308,141 $ 23,277,616 $ 20,781,031 Less cash and cash equivalents of Fiduciary Fund Types other than Expendable Trust Funds - - (742,724) (742,724) - Restricted assets-cash and cash equivalents 121,952,097 - - 121,952,097 24,883,434 Total cash and cash equivalents at end of year S 142,193,632 $ 1,727,940 $ 565,417 $ 144,488,989 $ 45,644,465 The accompanying Notes are an integral part of these financial statements. 8 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2002 Note 1 - REPORTING ENTITY The City of Wichita Falls, Texas (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 combined financial statements to emphasize it is legally separate from the City. Each blended and discretely presented component unit has a September 30th year end. Blended Component Unit Employee Benefit Trust Fund. On October 1, 1983, an "Agreement and Declaration of Trust" was made and entered into between the City and the Employee Benefit Trust Committee, acting as Trustee to administer the Employee Benefit Trust (Trust). The Trust Committee consists of four Trustees selected by the City, who may, but need not be, beneficiaries of the health and welfare program funded by the Trust, and/or officers or employees of the City. The purpose of the Trust is to provide health and welfare benefits, which may include life, accidental death and dismemberment, disability, medical and dental insurance, and any other benefits as determined by the Trustee Committee. The Trust is funded through contributions by the City and employees who choose to participate. It may be terminated in writing, at any time, by either party. The Employee Benefit Trust Fund is presented in the accompanying financial statements as an internal service fund. Discretely Presented Component Units The Wichita Falls Economic Development Corporation. The Wichita Falls Economic Development Corporation is a non-profit corporation formed in May 1997 for the purpose of increasing employment opportunities, primarily through assisting qualifying enterprises with funds provided by a portion of the local sales tax. Assistance may be in the form of incentive grants, loans or leases which call for discounted rates or rebates for job development. The Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A. Since the City Council appoints its Board of Directors, approves its budgets, and exercises final authority over its operations, the Wichita Falls Economic Development Corporation is considered to be part of the City's reporting entity and presented in the accompanying general purpose financial statements as a discretely presented component unit. The Wichita Falls Economic Development Corporation is presented as a governmental fund type. The Wichita Falls 48 Sales Tax Corporation. The Wichita Falls 4B Sales Tax Corporation is a non-profit corporation formed in May 1997 for the purpose of increasing employment opportunities and for public improvement projects such as parks, auditoriums, learning centers, open space improvements, athletic and exhibition facilities, and the related maintenance and operating costs of such projects. The Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4B. Since the City Council 9 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2002 Note 1 - REPORTING ENTITY (CONT'D.) Discretely Presented Component Units (Cont'd.) 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 general purpose financial statements as a discretely presented component unit. The Wichita Falls 4B Sales Tax Corporation is presented as a governmental fund type. 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 general purpose financial statements as a discretely presented component unit. The Zone is presented as a governmental fund type. Complete financial statements for the City's blended and discretely presented component units can be obtained from the City's Director of Finance at 1300 7th Street, Wichita Falls, Texas. Excluded From the Reportina 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. 10 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of the 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 City has elected to apply all Financial Accounting Standards Board (FASB) Statements and Interpretations issued after November 30, 1989 to its proprietary funds. This election applies to all FASB statements except those that conflict with or contradict GASB pronouncements. The following is a summary of the more significant policies and practices used by the City. Basis of Presentation The accounts of the City are organized and operated on the basis of funds or account groups, each of which is considered to be a separate fiscal and accounting entity. The operations of each fund are accounted for with a self-balancing set of accounts that comprise its assets, liabilities, fund balances or retained earnings, revenues, and expenditures or expenses. The various funds are grouped by category and type in the financial statements. The City maintains the following fund classifications and account groups: Governmental Funds Governmental funds are used to account for the relatively liquid portion of the City's assets that are not accounted for through proprietary or fiduciary funds, the short-term obligations pertaining thereto, and the net balance of these financial resources available for subsequent appropriation and expenditure. General Fund - The General Fund is the general operating fund of the City. This fund is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources for, and-the payment of, general long-term debt principal, interest and related costs. Capital Proiects Funds - Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). 11 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Basis of Presentation (Cont'd.) Proprietary Funds Proprietary funds are those used to account for the City's ongoing organizations and activities which are similar to those found in the private sector. The measurement focus is upon capital maintenance and the determination of net income, financial position and cash flows. Enterprise Funds - Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department or agency cy to other departments or agencies of the City, or to other governmental units, on a cost reimbursement basis. Fiduciary Funds Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for other governmental units and/or other funds. Trust and agency funds include expendable trust and payroll, tax collection, accounts payable and deferred compensation agency funds. Expendable Trust Fund - This fund is accounted for in the same manner as a governmental fund. Expendable trust funds account for assets where both the principal and interest may be spent. Nonexpendable Trust Fund - This fund is accounted for in the same manner as a proprietary fund. Nonexpendable trust funds account for assets of which the principal may not be spent. Aaencv Funds - These funds are purely custodial (assets equal liabilities) and thus do not involve measurement of results of operations. Account Groups Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term liabilities. The following are the account groups maintained by the City: 12 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Basis of Presentation (Contd.) Account Groups (Contd.) General Fixed Assets Account Group-This account group is established to account for the City's investment in a joint venture and all fixed assets of the City other than those accounted for in the proprietary funds. General Lona-Term Debt Account Group-This account group is established to account for long-term liabilities of the City other than those accounted for in the proprietary funds. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Governmental funds, expendable trust funds, agency funds, and the City's discretely presented component units utilize the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available as net current assets. Available means collectible within the current period or expected to be collected within 60 days after year end and be used to pay liabilities of the current period. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include unmatured principal and interest on long-term obligations which are recognized when due. This exception is in conformity with accounting principles generally accepted in the United States of America. Property tax revenues are considered measurable and available when collected by the respective intermediary collecting agency and recognized as revenue at that time. Sales tax receipts are considered measurable and available when collected by the merchant at the point of the taxable sale. Licenses and permits, fines and forfeitures, and miscellaneous revenues are recorded as revenues when they are measurable and their validity seems certain. Investment earnings are recorded on the accrual basis in all funds. Capital improvement assessments are recorded as revenues in the fiscal period when the assessment becomes both measurable and available to finance expenditures of the fiscal period. Assessment revenues are considered measurable and available when collected by the City and recognized as revenue at that time. Payments for capital improvement assessments received in advance of the levy are reflected as deferred revenue. 13 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Basis of Accounting (Contd.) Intergovernmental revenues are recorded on a basis applicable to the legal and contractual requirements of the various individual grant programs. Intergovernmental revenues are recognized as follows: 1. If monies must be expended on the specific purpose or project before any amounts will be paid to the City, revenues are recognized based upon the expenditures or expenses recorded. 2. If monies are virtually unrestricted and irrevocable, except for failure to comply with prescribed compliance requirements, revenues are recognized when received or susceptible to accrual. All proprietary funds and the nonexpendable trust fund are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund-type and nonexpendable trust fund operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. Proprietary funds and the nonexpendable trust fund utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the accounting period in which they are earned and become measurable. Expenses are recorded in the accounting period incurred, if measurable. Nonexchanae Transactions In a nonexchange transaction, a government gives (or receives) value without directly receiving (or giving) equal value in return. The statement defines when the City should recognize revenue or expense for nonexchange transactions involving financial or capital resources and how to account for timing and purpose restrictions. The timing of recognition depends on whether a nonexchange transaction is (a) a derived tax revenue (b) an imposed nonexchange revenue transaction or (c) a government-mandated or voluntary nonexchange transaction. Under this standard, revenue transactions with purpose restrictions are recorded as restricted resources until the purpose restrictions are met. Nonexchange transactions include the following classifications: • Derived tax revenues result from assessments imposed by government on exchange transactions. • Imposed nonexchange revenues result from assessments by governments on nongovernmental entities, other than assessments on exchange transactions. 14 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Nonexchanae Transactions (Cont'd.) • 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. 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. Budget Policies The City Council adheres to the following procedures in establishing the budgets reflected in the financial statements: 1. Prior to the beginning of each fiscal year, the City Manager submits to the City Council a proposed budget for all City departments, divisions and offices for the fiscal year beginning on the following October 1. The operating budget which represents the financial plan for -the ensuing fiscal year includes proposed expenditures and the means of financing them. 2. Public hearings are conducted at which all interested persons' comments concerning the budget are heard. 3. The budget for the next fiscal year is legally enacted by the City Council through passage of an ordinance by October 1 each year. Additional appropriations were made during the year in the amount of$1,270,517 which were passed and approved by the City Council. 4. Expenditures may not legally exceed appropriations at the department level for each legally adopted •annual operating budget. The City Manager may, without Council approval, transfer appropriation balances from one expenditure account to another within a department or agency of the City. The City Council, however, must approve any transfer of unencumbered appropriation balances or portions thereof from one department or agency to another. The reported budgetary data has been revised for amendments legally authorized during the year. 15 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Budaet Policies (Cont'd.) 5. Annual budgets are legally adopted for all governmental funds on a basis consistent with accounting principles generally accepted in the United States of America. However, the budgets for the capital projects funds are adopted for specific projects, are not binding, and may exceed one year. Accordingly, no comparison of budget to actual is presented in the accompanying financial statements for these funds. 6. At the close of each fiscal year, any unencumbered appropriation balances (appropriations including prior year encumbrances less current year expenditures and encumbrances) lapse or revert to the undesignated fund balance. The unencumbered appropriation balances in the capital projects funds do not lapse at year end. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary control in the general, special revenue, and capital projects funds. Encumbrances outstanding at year end are reported as reservations of fund balance for subsequent year expenditures and are reappropriated in subsequent year budgetary accounts. Cash and Cash Equivalents For purposes of the statement of cash flows, the City considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents. Investments Investments are stated at fair value. 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. 16 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30, 2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Plant and EauiDment- Proprietary Funds Plant and equipment owned by the proprietary funds are stated at historical cost. Maintenance and repairs are charged to operations as incurred, and improvements and betterments which extend the useful lives of fixed assets are capitalized. Depreciation of plant and equipment is provided by the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives for straight-line depreciation are as follows: Buildings, systems and improvements 20-59 years Machinery, vehicles and other equipment 3-25 years Furniture and equipment 3- 10 years When fixed assets of proprietary funds are sold, the sales proceeds less the adjusted basis of the assets (initial cost less accumulated depreciation) are recorded as a gain or loss. For proprietary fund fixed assets, interest is capitalized on construction costs incurred during the year at an average interest rate on borrowed funds (revenue bonds) in accordance with generally accepted accounting principles. No interest is capitalized on fixed assets constructed by proprietary funds which are financed with general obligation bonds, because such interest expenditures are reported in the Debt Service Fund. For the fiscal year ended September 30, 2002, the City's proprietary funds incurred a total of $8,585,195 of interest costs. Of this amount, $34,815 was capitalized on construction projects and $8,550,380 was charged to expense. Contributions of funds from Federal, State, or local grants restricted for the purpose of purchasing plant and equipment are recorded as equity contributions when received. The cost of water and sewer lines installed by developers is valued by the contractor and recorded as contributed capital in the Water and Sewer Fund. Depreciation on contributed assets from Federal and State governments is recorded as an expense in the statement of operations. General Fixed Assets General fixed assets are those assets acquired for general governmental purposes. Assets purchased are recorded as expenditures in the governmental funds and capitalized at historical cost in the General Fixed Assets Account Group. Contributed fixed assets are recorded in general fixed assets at-estimated fair market value at the time received. No depreciation has been provided on general fixed assets. No interest is capitalized on fixed assets constructed which are financed with general obligation bonds in accordance with accounting principles generally accepted in the United States of America. 17 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30,2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) General Fixed Assets(Cont'd.) Public domain general fixed assets (infrastructure) consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, and similar assets have not been capitalized. Lona-Term_Obligations The City reports long-term debt of the governmental funds at face value in the General Long-Term Debt Account Group. Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the General Long-Term Debt Account Group. Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate fund. For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as an other financing source net of applicable premium or discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. For proprietary funds, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest rate method. Bonds payable are reported net of applicable bond premium or discount. Issuance costs are reported as deferred charges. 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. 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 18 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Reserves and Designations reserved for encumbrances are commitments for materials and services on purchase orders and contracts which are unperformed. Designations of unreserved fund balances in governmental funds indicate City management's tentative plans for use of financial resources in a future period. Transactions Between Funds Transactions between funds that would be treated as revenues, expenditures, or expenses if they involved organizations external to the governmental unit are accounted for as revenues, expenditures, or expenses in the funds involved. Transactions which constitute reimbursements to a fund for expenditures or expenses initially made from that fund, which were properly applicable to another fund, are recorded as expenditures or expenses in the fund that is reimbursed. Non-recurring or non-routine transfers of equity between funds are treated as residual equity transfers and are reported as additions to or deductions from the fund balance of governmental funds. Residual equity transfers to proprietary funds are treated as contributed capital, and such transfers from proprietary funds are reported as reductions of retained earnings or contributed capital as appropriate in the circumstances. All other transfers are treated as operating transfers and are included in the results of operations of both governmental and proprietary funds. • Vacation and Sick Leave All full-time employees accumulate vacation benefits based on length of service up to 15 days per year. The maximum allowable accumulation is 30 days. 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. 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. 19 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Risk Management(Cont'd.) 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. 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, 2002 is based on management's estimate of probable losses in the amount of$368.001. 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 liability has been recorded in the General Long-Term Debt Account Group, except for$123,225 which 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, 2000 to September 30, 2002: Health Workers' Care Compensation Liability balance, October 1, 2000 $ 575,296 $ 488,292 Incurred claims/adjustments 4,754,377 1,243,627 Claim payments ( 4.649.941) ( 1,340,903) Liability balance, September 30, 2001 679,732 391,016 Incurred claims/adjustments 5,262,305 1,113,859 Claim payments ( 5.323.867) ( 1.136.874) Liability balance, September 30, 2002 $ 618.170 $ 368.001 20 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2002 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Total Columns on General Purpose Financial Statements Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Such data is not comparable to a consolidation. I_nterfund eliminations have not been made in arriving at the totals. Comparative Data - Comparative data for the prior year has been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, complete comparative data (i.e., presentation of prior year totals by fund type) has not been presented in each of the statements, since their inclusion would make the statements unduly complex and difficult to read. Note 3 - FUND DEFICITS Capital Projects Fund At September 30, 2002, the Library Renovation Fund had a deficit fund balance of$575,272. This deficit fund balance is the result of the requirement to report tax anticipation notes as a current liability. The Wichita Falls 4B Sales Tax Corporation, a component unit of the City, has committed to make transfers to the Library Renovation Fund for future debt service. This deficit will be recovered as the cash is transferred in to pay off the notes. Enterprise Funds At September 30, 2002, the Municipal Airport Fund had a deficit retained earnings balance of $1,188,399. The intent of management is that this deficit be recovered by transfers from other funds during future years. At m Septe ber 30, 2002, the Transit Fund had a deficit retained earnings balance of$270,059. The intent of management is that this deficit also be recovered by transfers from other funds during future years. Internal Service Fund At September 30, 2002, the Fleet Maintenance Fund had a deficit retained earnings balance of $8,881,478. In the opinion of management, this deficit will be recovered by increasing the rates charged for services rendered to other departments and by transfers from other funds during future years. 21 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 4 - 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, 2002, the total amount of the City's demand and time deposits per the general ledgers was$181,352,395, and the total amount per the City's September 30, 2002 bank statements was $180,297,896. 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. Inve stments 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, 2002 are as follows: Component City Units Totals U.S. Government securities $ 17,980,192 $ - $ 17,980,192 Texas Local Government Investment Pool (TexPool) 148,897,288 17,462,873 166,360,161 Local Government Investment Cooperative (LOGIC) 1.225.735 - 1,225.735 Totals $168.103.215 $17.462,873 $185.566.088 TexPool is a public funds investment pool administered by the Treasurer of the State of Texas pursuant to the Interlocal Cooperation Act passed in 1989 by the 71st Texas Legislature. This Act authorized the City to delegate to TexPool the authority to make investment purchases and to hold legal title as custodian of the investment securities. All TexPool investments are in the possession of the Texas Treasury Safekeeping Trust Company and held in its book-entry safekeeping account at the Federal Reserve Bank of Dallas. The Texas Treasury Safekeeping Trust Company was created in 1986 by the 69th Texas Legislature to enable the Treasurer of the State of Texas to manage, safekeep, and invest public funds of state agencies and political subdivisions more efficiently and economically. 22 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30,2002 Note 4 - DEPOSITS AND INVESTMENTS (CONT'D.) Investments (Cont'd.) LOGIC was also established pursuant to the Interlocal Cooperation Act passed by the State of Texas and is administered by Southwest Securities Group, Inc. LOGIC's governing body is a five- member board of directors comprised of three government officials and two other persons with expertise in public finance. LOGIC's investments are only those authorized by the Texas Public Funds Investment Act governing pools for local governments. LOGIC presently offers two investment pools, each of which is separately managed and has a different investment objective. Each participating government owns an undivided beneficial interest in the assets of the pool represented by units. Participants may terminate their participation in LOGIC at any time by redeeming their units. The 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 $17.980,192 $ 17,980,192 $ 17,980,192 Investments not subject to categorization: Public Funds Investment Pool 150.123.023 150.123.023 Subtotal 168,103,215 168,103,215 Component Units: Investments not subject to categorization: Public Funds Investment Pool 17.462.873 17.462.873 Total $185.566.088 5185.566.088 * The fair value of the City's position in the Public Funds Investment Pool is the same as the value of the Pool shares. 23 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2002 Note 5- RECEIVABLES Receivables at September 30, 2002 consist of the following: Totals Totals Special Debt Capital Internal Trust Primary Component Reporting General Revenue Service Projects Enterprise Service and Aaencv Government Units Entity Receivables: Taxes and assessments $1,338,190 $ 90,465 $222,376 $ - $ - $ - $ - $ 1,651,031 $ 6,886 $ 1,657,917 Customer and trade - - - - 3,878,617 - - 3,878,617 - 3,878,617 Other City funds 1,018,602 - - - - - - 1,018,602 - 1,018,602 Component unit - - - 2,106,193 - - - 2,106,193 - 2,106,193 Government agencies 2,966,406 3,713,073 13,891 - 314,457 - 37,918 7,045,745 931,156 7,976,901 Other 4,060,489 7,055 - 394 144,363 12,956 850 4,226,107 - 4,226,107 NJRestricted-other - - - - 59.436 - - 59.436 - 59.436 Gross receivables 9,383,687 3,810,593 236,267 2,106,587 4,396,873 12,956 38,768 19,985,731 938,042 20,923,773 Less: Allowance for uncollectible accounts ( 3.088.870) - ( 96,208) - ( 222.794) - - ( 3.407.872) - ( 3.407.872) Net total receivables $6294 817 $3 810 fii91 $140,059 $2 106_587 $4174 079 $12,956 $ 311,768 $16,577 859 $934,1142 $17 515 901 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 6 - 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, 2002 was $.55194 per $100 which means that the City has a tax margin of $1.69806 per $100, and could raise up to $56,694,219 additional tax revenue a year from the present assessed valuation of$3,338,764,157 before the limit is reached. Note 7 - 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 $ 14,549,095 For Capital Improvements: Cash and cash equivalents 105,251,570 Investments 8,971,466 Receivables 59,436 • For Customer Deposits: Cash and cash equivalents 2,151,432 Total $130.982.999 Note 8 - PLANT, EQUIPMENT AND DEPRECIATION A summary of plant and equipment at September 30, 2002 is as follows: Internal General Enterprise Service Fixed Component Funds Funds Assets Units Total Land and betterments $ 28,362,631 $ 433,658 $23,416,215 $140,480 $ 52,352,984 Buildings,systems and improvements 141,510,705 4,010,098 27,644,389 459,520 173,624,712 Machinery and equipment 4,073,439 107,559 7,956,633 - 12,137,631 Furniture and fixtures 42,196 6,358 214,110 - 262,664 Motor vehicles and equipment 1,235 33,616,778 31,485 - 33,649,498 Construction in progress 5.713.815 6.706 17.632.581 - 23.353.102 Total plant and equipment 179,704,021 38,181,157 76,895,413 600,000 295,380,591 Less accumulated depreciation ( 67.146.0591 ( 21.974.3361 - - ( 89.120.395) Net plant and equipment $112.557.962 $16 206.821 $76.895.413 $600,000 $206.260.196 25 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30,2002 Note 8 - PLANT, EQUIPMENT AND DEPRECIATION (CONT'D.) A summary of changes in the components of the General Fixed Assets Account Group for the year ended September 30, 2002 is as follows: Balance Balance October 1, September 30, 2001 Additions Retirements 2002 Plant and equipment: Land and betterments $23,387,429 $ 28,786 $ - $23,416,215 Buildings and improvements 27,664,965 13,888 34,464 27,644,389 Machinery and equipment 7,267,032 703,322 13,721 _7,956,633 Furniture and fixtures 214,110 - - 214,110 Motor vehicles and equipment 31,485 - - 31,485 Construction in progress 4.467.627 13,164,954 - 17,632,581 Totals $63.032.648 $13.910.950 $48,188 $76.895.413 A summary of changes in components of the fixed assets of the discretely presented component units for the year ended September 30, 2002 is as follows: Balance Transfers Balance October 1, and September 30, 2001 Additions Retirements 2002 Land and betterments $140,480 $ - $ - $140,480 Buildings and improvements 459,520 - - 459.520 Totals $600,000 $ - $ - $600,000 Note 9 - 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 758 administered by TMRS, an agent multiple-employer public employee retirement system. 26 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 9 - RETIREMENT PLANS (CONT'D.) Plan Description (Cont'd.) 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. Contributions The contribution rate for all employees is 6%, 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, 2000 valuation is effective for rates beginning January 2002). 27 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 9 - RETIREMENT PLANS (CONT'D.) 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. 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 monthly. 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 16.9 years. 28 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 9 - RETIREMENT PLANS (CONT'D.) Schedule of Actuarial Liabilities and Fundina Proaress Texas • Municipal Firemen's Total Retirement Relief and (Memorandum System Retirement Only) Actuarial Valuation Date 12/31/01 12/31/00 Actuarial Value of Assets $66,919,614 $26,930,018 $ 93,849,632 Actuarial Accrued Liability(AAL) 88,721,318 31,419,892 120,141,210 Percentage Funded 75.4% 85.7% 78.1% Unfunded Actuarial Accrued Liability(UAAL) 21,801,704 4,489,874 26,291,578 Annual Covered Payroll 29,061,189 5,858,962 34,920,151 UAAL as a Percentage of Covered Payroll 75.0% 76.6% 75.3% Net Pension Obligation (NPO)at the Beginning of the Period -0- -0- -0- Annual Pension Cost: Annual Required Contribution (ARC) $ 3,473,150 $ 670,703 $ 4,143,853 Interest on NPO -0- -0- -0- Adjustment to the ARC -0- -0- -0- Annual Pension Cost $ 3.473.150 $ 670.703 $ 4.143.853 Percentage of Annual Pension Costs Contributed 100% 100% 100% Contributions Made $ 3,473,150 $ 670,703 $ 4,143,853 Increase in NPO -0- -0- -0- NPO At the End of the Period $ -0- $ -0- $ -0- Two preceding years: 2000: Annual Pension Cost $ 3,197,051 $ 537,013 $ 3,734,064 Percentage of Annual Pension Costs Costs Contributed 100% 100% 100% NPO At the End of the Period -0- -0- -0- 1999: Annual Pension Cost $ 3,006,196 $ 530,938 $ 3,537,134 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, 2002. 29 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2002 RETIREMENT (C ONT'D.) 9 E IREMENT PLANS (CONY D.) 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 16.9 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. Note 10 - DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to the employees until termination, retirement, death, or an unforeseen emergency. Note 11 - PAYABLE TO U.S. GOVERNMENT 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) is reflected in fixed assets, and the City's share of the U.S. Government funded portion ($4,484,140) is reflected as contributed capital in the Water and Sewer Enterprise Fund. This contractual arrangement is strictly a cost-sharing agreement and is not considered a joint venture as defined in Section J50 of the Codification of Governmental Accounting and Financial Reporting Standards. • 30 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 11 - PAYABLE TO U.S. GOVERNMENT (CONT'D.) The remaining debt payable to the U.S. Government at September 30, 2002 is classified as follows: Long-term $807,674 Current portion (included in other liabilities) 24.891 Total $832,565 Note 12 - AIRPORT LEASE The airport facilities are located on land at Sheppard Air Force Base. The land is leased from the Department of the Air Force at a cost of$1.00 per year for a period of fifty years, beginning May 15, 1959 and expiring May 14, 2009. Additional rent is based on landing fees at a rate of $1.8264 per scheduled landing. Landing fees collected and paid on this lease were $6,381 for the fiscal year ended September 30, 2002. Note 13 - 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, 2003. 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, 2002: Year ending September 30: 2003 $ 92,843 2004 81,374 2005 98,196 2006 129 2007 1 Later years 3 Total minimum payments required $272,546 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, 2002: Minimum rentals $116,641 Contingent rentals 6.381 Total rentals $123.022 31 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 14 - LONG-TERM DEBT The following is a summary of changes in long-term obligations of the City for the year ended September 30, 2002: Obligations Obligations Outstanding New Outstanding October 1, Obligations Obligations September 30, 2001 Incurred Retired(1) 2002 General Lona-Term Debt: General Obligation Bonds payable $ 19,215,000 $ - $1,805,000 $ 17,410,000 Accrued vacation and sick leave 4,780,594 231,201 - 5,011,795 Claims and judgments payable 272.440 1.113.859 1.141.523 244.776 Total general long-term debt 24,268,034 1,345,060 2,946.523 22.666.571 Proprietary Fund Debt: Revenue Bonds payable 176,649,193 - 4,299,753 172,349,440 Payable to U.S. Government 856.671 - 24.106 832.565 Total proprietary fund debt 177.505.864 - 4.323.859 173.182.005 Total long-term liabilities $201.773.898 $1,345.060 $7.270.382 $195.848.576 (1) Includes bond premium amortization of$79,753 relative to the revenue bonds payable. Bonds payable at September 30, 2002, includingnet unamortized premiumon Y Pthe revenue bonds, are comprised of the following individual issues: Range of Final Annual Bonds Interest Maturity Serial Bonds Outstanding Rates Date Payments Authorized at 9/30/02 General Obligation Bonds: General Obligation Refunding 3.50%- 9/01/06 $105,000 to $ 7,250,000 $ 3,185,000 Bonds, Series 1994 5.50% $860,000 General Obligation Refunding 4.10%- 9/01/06 $570,000 to 9,000,000 4,195,000 Bonds, Series 1996 5.30% $1,130,000 General Obligation Construction 3.75%- 9/01/21 $175,000 to 10,205,000 10,030,000 and Refunding Bonds, 5.375% $945,000 Series 2001 Total General Obligation Bonds 17.410.000 32 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 14 - LONG-TERM DEBT (CONT'D.) Range of Final Annual Bonds Interest Maturity Serial Bonds Outstanding Rates Date Payments Authorized at 9/30/02 Revenue Bonds: Water and Sewer Revenue Bonds: Water and Sewer System 3.90%- 8/01/07 $95,000 to _ $ 12,830,000 $ 6,580,000 Refunding Revenue 5.20% $1,450,000 Bonds, Series 1995 Water and Sewer System 4.10%- 8/01/07 $305,000 to 5,360,000 2,830,000 Refunding Revenue 5.40% $625,000 Bonds, Series 1996 Water&Sewer System 4.05%- 8/01/18 $180,000 to 5,500,000 4,715,000 Priority Lien Revenue 4.65% $400,000 Bonds, Series 1998E Water&Sewer System 3.75%- 8/01/27 $1,220,000 to 118,770,000 117,105,000 Priority Lien Revenue 5.375% $11,515,000 Bonds, Series 2001 Plus bond premium 1,554,440 Water&Sewer Subordinate 3.35%- 8/01/16 $25,000 to 11,420,000 10,890,000 Lien Revenue Bonds, 4.95% $2,750,000 Series 1996 Water&Sewer Subordinate 3.14%- 8/01/18 $25,000 to 8,060,000 7,960,000 Lien Revenue Bonds, 4.59% $3,320,000 Series 1998 Water&Sewer System 3.65%- 8/01/12 $375,000 to 22,795,000 20,715,000 Subordinate Lien 4.50% $3,770,000 Refunding Revenue Bonds, Series 1998A Total Revenue Bonds 172.349.440 Total All Bonds $189.759.440 All of the General Obligation Bonds were issued on the full faith and credit of the City and are secured by ad valorem faxes 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, 2002, $270,530 was available in this fund to service these bonds. 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. 33 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2002 Note 14 - LONG-TERM DEBT(CONT'D.) The City's current year payments for debt service of general obligation bonds, revenue bonds, and payable to U.S. Government included $1,168,309, $8,087,504, and $27,862 of interest, respectively. The annual requirements to pay principal and interest on the City's long-term obligations outstanding as of September 30, 2002 are as follows: Year Ending General Obliaation Bonds Revenue Bonds Payable to U.S. Government September 30, Principal Interest Principal (1) Interest Principal Interest Totals 2003 $ 2,120,000 $ 844,291 $ 3,981,101 $ 8,412,956 $ 24,890 $ 27,084 $ 15,410,322 2004 2,230,000 740,971 4,155,440 8,241,473 25,700 26,274 15,419,858 2005 2,335,000 631,564 4,339,709 8,055,863 26,536 25,438 15,414,110 2006 2,455,000 514,521 4,528,947 7,864,682 27,999 24,574 15,415,723 2007 880,000 387,569 4,738,084 7,657,223 28,291 23,683 13,714,850 Subsequent 7.390.000 2.546.856 150.606.159 88.861.913 699.149 235.742 250.339.819 Totals $17.410.000 $5.665.772 $172.349.440 $129.094.110 $832,565 $362.795 $325.714.682 (1) Includes amortization of bond premium (net of accumulated amortization)of$1,554,440. CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 15 - DEFEASED DEBT 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, 2002, $9,720,000 of the 1986 Water and Sewer Revenue Refunding Bonds are considered defeased. Note 16 - TAX ANTICIPATION NOTES PAYABLE During the year ended September 30, 1997, the City of Wichita Falls, Texas issued tax anticipation notes in the amount of$2,000,000. The proceeds provided by these notes were used for the renovation of the City's Activities Center to house the Wichita Falls Public Library. These notes bear interest ranging from 4.45% to 7.00% and mature over a period of seven years. • While these notes are, in effect, long-term financing, the City has recorded the liability for these tax anticipation notes as a current liability in the Library Renovations Fund as required by generally accepted accounting principles established by the Governmental Accounting Standards Board. The annual requirements to pay principal and interest on the tax anticipation notes outstanding at September 30, 2002 are as follows: Year Endina September 30: Principal Interest Total 2003 $ 320,000 $ 23,590 $ 343,590 2004 340,000 8,075 348.075 Totals $ 660.000 $ 31.665 $ 691.665 During the year ended September 30, 2002, the City paid $37,969 of interest on the tax anticipation notes. Note 17 - LANDFILL AND TRANSFER STATION CLOSURE AND POSTCLOSURE CARE COSTS State and federal laws and regulations require that the City place a final cover on its landfill when closed, and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In accordance with the Texas Administrative Code, Title 30, Part 1, Chapter 7, the City annually submits a financial assurance letter to the Texas Commission on Environmental Quality (TCEQ). In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and postclosure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and postclosure care costs has a balance of $3,313,938 as of September 30, 2002, which is based on 50% usage of the landfill. The City has no remaining estimated costs of closure and postclosure care which have not already been recognized in the financial statements. It is estimated that additional costs will be recognized as closure and postclosure care expenses between the date of the balance sheet and the date the landfill is expected to be filled to capacity in 2017. Additionally, the City has accrued $6,083 in estimated closure costs for the City's landfill transfer station. Actual costs may be higher due to inflation, change in technology, or changes in regulations. 35 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2002 Note 18 - INDIVIDUAL FUND AND RELATED DISCLOSURES Interfund receivables and payables at September 30, 2002 are as follows: Interfund Interfund Receivables Pavables General Fund $1,018,602 $ 84 Special Revenue Funds: Community Development Block Grant Fund - 98,519 Miscellaneous Special Revenue Fund - 635,175 Total Special Revenue Funds - 733,694 Debt Service Fund - 53 Enterprise Funds: Transit Fund - 284,771 Totals $1.018.602 $1.018.602 r Receivable and payable balances between the primary government and the component units at September 30, 2002 are as follows: Receivable Payable Capital Projects Funds: 4B Sales Tax Projects Fund $2,106.193 $ - Component Units: Wichita Falls 4B Sales Tax Corporation - 2,106.193 Totals $2.106.193 $2,106.193 Operating transfers between funds and component units during the year were as follows: Operating Operating Transfer In Transfer Out General Fund $1.108.234 $ 409.260 Special Revenue Funds: Hotel/Motel Tax Fund - 283,150 Miscellaneous Special Revenue Fund 349.054 24.629 Total Special Revenue Funds 349.054 307.779 Debt Service Fund 874.189 - Capital Projects Funds: Library Renovation Fund 342,969 - 4B Sales Tax Projects Fund 776.000 - Total Capital Projects Funds 1,118.969 - 36 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 18 - INDIVIDUAL FUND AND RELATED DISCLOSURES (CONT'D.) Operating Operating Transfer In Transfer Out Enterprise Funds: Golf Fund - 8,295 Municipal Airport Fund - 36,921 Kickapoo Airport Fund - 16,921 Transit Fund 152,639 - Sanitation Fund - 390,224 Water and Sewer Fund - 897,716 Total Enterprise Funds 152.639 1,350,077 Internal Service Funds: Fleet Maintenance Fund - 312.000 Component Units: Wichita Falls Reinvestment Zone#1 - 105,000 Wichita Falls 4B Sales Tax Corporation - 1,118,969 Total Component Units - 1,223,969 Totals $3,603,085 $3.603,085 Residual equity transfers between funds during the year were as follows: Eui Equity tY q tY Transfer In Transfer Out General Fund $ - $ 426.952 Special Revenue Funds: Section 8 Housing Fund - 18,987 Miscellaneous Special Revenue Fund - 189.202 Total Special Revenue Funds - 208.189 Capital Projects Fund: Drainage Improvement Fund - 84,400 Enterprise Funds: Transit 1,750 - Sanitation Fund - 1,016,992 Water and Sewer Fund 84.400 34,475 Total Enterprise Funds 86.150 1.051,467 Internal Service Funds: Fleet Maintenance 1,684.858 - Totals $1.771.008 $1.771.008 37 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2002 Note 19 - CONTRIBUTED CAPITAL - PROPRIETARY FUNDS During the year ended September 30, 2002, contributed capital in the City's proprietary funds increased by the following amounts: Enterprise Funds Internal Service Funds Total Municipal Kickapoo Water Fleet Duplicating Proprietary Source Golf Airport Airport Transit Sanitation and Sewer Maintenance Services Funds Government-fixed assets (operations) $ - $ - $ - $ 1,750 $ - $ 84,400 $ 1,684,858 $ - $ 1,771,008 Contributed capital, October 1,2001 8.279 2.292.192 1.600.000 831.471 2.909.150 20.663.761 24.187.996 101.474 52.594.323 co Contributed capital, September 30,2002 $8,279 $2292.192 $1.600.009 $833,221 $2.909.150 $20 748_161 $25.872.854 $101,474 $54 365 331 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2002 Note 20 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains seven enterprise funds which provide golf, transportation, sanitation, water and sewer services, and stormwater drainage. Segment information for the year ended September 30, 2002 is as follows: Total Municipal Kickapoo Water Stormwater Enterprise Golf Airport Airoort Transit Sanitation and Sewer Drainaae Funds Condensed balance sheets: Plant and equipment: Additions $ 29,973 $ - $ 700 $ 2,866 $ 787,413 $ 8,230,964 $ 19,275 $ 9,071,190 Deletions - - - - - 210,000 - 210,000 w Net working capital 202,688 308,188 208,484 ( 50,815) 5,841,220 143,749,764 1,408,708 151,668,237 LO Total assets 308,518 1,122,427 1,681,440 878,082 9,791,006 262,353,365 1,427,019 277,561,857 Long-term liabilities - - - - 3,320,021 169,342,404 - 172,662,425 Total equity 263,892 1,103,793 1,663,699 563,162 6,204,508 84,331,038 1,427,019 95,557,111 Condensed statements of revenues, expenses and changes in equity: Operating revenues 783,519 311,152 340,954 180,893 7,618,4.58 27,142,642 1,033,209 37,410,827 Depreciation and amortization 11,320 84,580 50,452 16,420 71,860 , 3,020,368 964 3,255,964 Operating income(loss) 38,744 11,373 25,736 ( 835,690) ( 548,385) 10,552,443 1,023,734 10,267,955 Intergovernmental operating grants - - - 667,748 - - - 667,748 Operating transfers: In - - - 152,639 - - - 152,639 Out 8,295 36,921 16,921 - 390,224 897,716 - 1,350,077 Net income(loss) 32,775 ( 20,331) 12,345 ( 15,303) ( 796,235) 4,924,367 1,038,602 5,176,220 Current capital contributions - - - 1,750 - 84,400 - 86,150 , CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 21 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED COMPONENT UNITS The City has three component units that are discretely presented in the City's general purpose financial statements. Condensed financial information for the year ended September 30, 2002 is as follows: Wichita Falls Wichita Falls Economic 4B Sales Wichita Falls Development Tax Reinvestment Corporation Corporation Zone#1 Totals Condensed balance sheets: Current assets $10,884,219 $7,024,645 $500,235 $18,409,099 Property, plant and equipment 600,000 - - 600,000 Current liabilities(excluding amount due to primary government) 8,391 - - 8,391 Amount due to primary government - 2,106,193 - 2,106,193 Condensed statements of revenues and expenditures: Revenues 2,967,121 2,835,632 195,095 5,997,848 Current expenditures 749,449 367,710 78,166 1,195,325 Operating transfers out— primary government - 1,118,969 105,000 1,223,969 Excess of revenues and other sources over(under) expenditures and other uses 2,217,672 1,348,953 11,929 3,578,554 Note 22 - 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. 40 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 22 - 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 $5,301,795 at September 30, 2002. This accrual is recorded in the General Long-Term Debt Account Group, except for$290,000 which is believed by City management to be currently payable from available resources and is recorded in the General Fund. Post-Retirement Health Care and Life Insurance Benefits In addition to providing pension benefits, the City provides certain health care and life insurance benefits for retired employees. Substantially all of the City's employees may become eligible for those benefits if they reach normal retirement age while working for the City. The cost of retiree health care is paid for by the retirees. The cost of life insurance benefits 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, 2002, 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, 2002 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 General Fixed Asset Account Group. 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, 2002, the City paid $424,427 to the third party to fund these operating deficits. 41 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 22 - COMMITMENTS AND CONTINGENCIES (CONT'D.) Construction Contracts At September 30, 2002, 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 $ 334.900 Capital Projects Funds: MPEC Coliseum 3,496,970 Street Improvements 1.523,873 Total Capital Projects Funds 5.020,843 Enterprise Funds: Sanitation Fund 642,916 Water and Sewer Fund 4.312,067 Total Enterprise Funds 4.954.983 Total contract commitments $10,310.726 Economic Development Contracts- Discretely Presented Component Units, At September 30, 2002, 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 $5,598,096 Wichita Falls 4B Sales Tax Corporation 500.000 Total contract commitments $6.098.096 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. 42 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2002 Note 23 - GASB STATEMENT NO. 34 The GASB has issued Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments, which establishes a new financial reporting model for state and local governments. This new model requires that at a minimum the basic financial statements of a government include: (1) Management's Discussion and Analysis as a component of required supplementary information; (2) Both government-wide financial statements and fund financial statements; (3) Notes to the financial statements; (4) Required supplementary information other than Management's Discussion and Analysis. The implementation of GASB Statement No. 34 is mandated in three phases based upon a government's total annual revenues of its governmental and enterprise funds in the first fiscal year ending after June 15, 1999. Based on the City's general purpose financial statements for the year ended September 30, 1999, the City will be required to implement GASB Statement No. 34 for the year ending September 30, 2003. The government-wide financial statements required by GASB Statement No. 34 requires the retroactive reporting of major networks and systems of general infrastructure assets. GASB Statement No. 34 sets the implementation of the reporting of infrastructure assets four years after the financial statement implementation. Consequently, the City will be required to implement the general infrastructure assets reporting for the year ending September 30, 2007. Note 24 - PRIOR PERIOD ADJUSTMENT During the year ended September 30, 2002, the City discovered an error made in a prior period in accounting for a grant in the Home Improvement Partnership Agreement Fund, a special revenue fund. An adjustment made by HUD to the City's entitlement balance was not made by the City. Adjustments related to this error decreased the amount receivable from government agencies and fund balance as of September 30, 2001 by$102,443 in the special revenue fund. 43 • REQUIRED SUPPLEMENTARY INFORMATION Wichita EXHIBIT B-1 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) 12/31/92 $ 34,988,814 $ 42,460,833 82.4% $ 7,472,019 $ 18,874,753 39.6% 12/31/93 40,008,407 49,758,664 80.4% 9,750,257 20,657,576 47.2% 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% 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. 44 EXHIBIT B-2 I 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 ActuariatAccrued Annual Percentage of Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll Date of Assets Liability(AAL) (1) : (2) (2) - (1) Payroll (4) _ (5) 4/30/93(b) $ - $ - - $ $ - - 4/30/94(b) - - - - - - 4/30/95(a) 14,966,425 17,882,791 83.7% 2,916,366 4,051,390 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) - - - - - - 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 firefighters 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 31,2000. Additional historical trend I information will be disclosed in future periods as it becomes available. 45 COMBINING and INDIVIDUAL FUND FINANCIAL STATEMENTS GENERAL FUND The General Fund is used to account for all revenues and expenditures not accounted for in other funds. It receives a greater variety and amount of revenues and finances a wider range of governmental activities than any other fund. Major functions financed by the General Fund include: Administrative; Finance; Police; Fire; Protective Inspections, such as building, plumbing and electrical; Traffic Engineering; Public Works Engineering; Street Maintenance; Health; Community Enrichment Activities such as Parks, Recreation, and Library; and Planning. Wichita EXHIBIT C-1 CITY OF WICHITA FALLS, TEXAS GENERAL FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2002 AND 2001 2002 2001 ASSETS Cash and cash equivalents $ 4,853,261 $ 1,467,044 Investments 2,996,324 7,069,070 Receivables: Taxes and assessments (less$575,632 and $572,205 allowance for uncollectible accounts) 762,558 771,692 Other City funds 1,018,602 746,085 Government agencies 2,966,406 - 2,845,660 Other 1,547,251 706,702 Inventory 19,271 22,618 Prepaid items 84,979 48,820 Total assets $ 14,248,652 $13,677,691 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 682,648 $ 480,347 Accrued payroll 569,030 423,847 Accrued vacation and sick leave 290,000 290,000 Payable to other City funds 84 - Payable to government agencies 121,686 38,519 Other liabilities 1,533,918 1,330,960 Deferred revenue 1,758,319 799,978 Claims and judgments payable 240,225 235,576 Total liabilities 5,195,910 3,599,227 Fund balance: Reserved for encumbrances 580,761 1,256,992 Reserved for inventory and prepaid items 104,250 71,438 Unreserved: Designated for subsequent years expenditures 3,000,000 3,000,000 Undesignated 5,367,731 5,750,034 Total fund balance 9,052,742 10,078,464 Total liabilities and fund balance $ 14,248,652 $13,677,691 46 EXHIBIT C-2 (Page 1 of 4) CITY OF WICHITA FALLS, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 2002 Variance - Favorable 2001 Budget Actual (Unfavorable) Actual Revenues: Taxes: Ad valorem taxes $16,643,699 $ 16,710,864 $ 67,165 $15,756,043 Penalties and interest 170,000 220,990 50,990 185,323 City sales tax 16,435,687 16,184,652 (251,035) 16,024,134 Franchise taxes 4,438,000 4,933,339 495,339 4,612,917 Other taxes 363,000 412,523 49,523 365,695 Total taxes 38,050,386 38,462,368 411,982 36,944,112 Charges for services: Administrative overhead reimbursements 1,060,760 1,070,424 9,664 842,168 Data processing services 302,205 302,205 - 301,308 Health services 262,032 292,257 30,225 261,974 Other service charges 379,146 342,332 (36,814) 377,851 Total charges for services 2,004,143 2,007,218 • 3,075 1,783,301 Licenses and permits: Right-of-way permits 1,346,760 1,312,704 (34,056) 1,222,729 Building permits 235,000 210,776 (24,224) 266,133 Electrical and plumbing 185,500 191,775 6,275 199,786 Health and animal control 160,450 153,152 (7,298) 148,710 Other licenses and permits 51,550 50,283 (1,267) 54,741 Total licenses and permits 1,979,260 1,918,690 (60,570) 1,892,099 Fines and forfeitures: Municipal Court 1,407,000 1,560,553 153,553 1,229,926 Forfeitures and confiscated funds 1,500 655 (845) 800 Library 28,500 37,543 9,043 29,016 Total fines and forfeitures 1,437,000 1,598,751 161,751 1,259,742 Intergovernmental revenue: Operating grants 51,600 85,499 33,899 33,319 Total intergovernmental revenue 51,600 85,499 33,899 33,319 47 EXHIBIT C-2 (Page 2 of 4) CITY OF WICHITA FALLS, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL(CONTD.) FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 2002 Variance - Favorable 2001 Budget Actual (Unfavorable) Actual Revenues (Cont'd.): Contributions: Donations - 62,575 62,575 32,901 Total contributions - 62,575 62,575 32,901 Miscellaneous revenue: Rentals and concessions 191,641 202,864 11,223 195,085 Interest 919,000 355,911 (563,089) 1,022,003 Other 110,000 265,123 155,123 246,692 Total miscellaneous revenue 1,220,641 823,898 (396,743) 1,463,780 Total revenues 44,743,030 44,958,999 215,969 43,409,254 Expenditures: Administrative services: Mayor and City Council 55,638 54,531 1,107 61,316 City Manager 310,174 308,751 1,423 294,044 Personnel/Risk Management 538,381 533,210 5,171 552,300 Martin Luther King Center 105,144 104,615 529 107,328 Farmer's Market 2,007 1,682 325 1,530 Library 1,374,163 1,363,246 10,917 1,360,122 General Public Information 195,443 193,509 1,934 192,701 Building Maintenance 1,114,815 1,094,232 20,583 1,136,053 Nondepartmental 2,212,718 2,216,093 (3,375) 2,051,789 Municipal Court 647,986 641,466 6,520 507,362 Legal 969,984 969,352 632 844,135 City Clerk 141,231 138,408 2,823 155,196 Total administrative services 7,667,684 7,619,095 48,589 7,263,876 Police 14,088,667 14,050,692 37,975 13,293,997 Fire 9,045,117 9,028,643 16,474 8,412,257 Parks and recreation: Recreation 834,485 827,069 7,416 797,956 Park maintenance 2,335,645 2,244,719 90,926 2,085,836 City lot mowing program 63,004 59,868 3,136 18,110 Cemetery 178,872 157,749 21,123 157,693 Total parks and recreation 3,412,006 3,289,405 122,601 3,059,595 48 EXHIBIT C-2 (Page 3 of 4) CITY OF WICHITA FALLS, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL(CONTD.) FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 2002 Variance - Favorable 2001 Budget Actual (Unfavorable) Actual Expenditures (Cont'd.): Accounting/finance: Accounting/finance 430,174 424,450" 5,724 395,165 Information systems 1,161,953 1,121,583 40,370 947,531 Purchasing 158,868 156,521 2,347 146,965 Total accounting/finance 1,750,995 1,702,554 48,441 1,489,661 Community development: Planning 371,046 368,775 2,271 313,456 Inspection 471,738 457,161 14,577 502,241 Code enforcement 159,030 157,135 1,895 157,235 Property management 70,628 59,144 11,484 56,822 Lake lot administration 111,270 60,781 50,489 72,451 Total community development 1,183,712 1,102,996 80,716 1,102,205 Public works: Engineering 2,194,445 1,724,021 470,424 1,198,770 Street maintenance 3,163,282 3,096,278 67,004 2,973,813 General public works 105,992 80,112 25,880 235,893 Total public works 5,463,719 4,900,411 563,308 4,408,476 Health: - Administration 468,705 437,795 30,910 431,867 General City nursing 591,540 591,101 439 544,498 Environmental health 857,873 861,712 (3,839) 830,414 Lab water pollution 333,694 332,751 943 273,302 Total health 2,251,812 2,223,359 28,453 2,080,081 Traffic and transportation 1,991,922 1,986,855 5,067 1,707,211 Capital outlay 747,531 352,733 394,798 1,365,232 Total expenditures 47,603,165 46,256,743 1,346,422 44,182,591 49 EXHIBIT C-2 (Page 4 of 4) CITY OF WICHITA FALLS, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL(CONTD.) FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 2002 Variance- Favorable 2001 Budget Actual (Unfavorable) Actual Excess of revenues over(under) expenditures (2,860,135) (1,297,744) 1,562,391 (773,337) Other financing sources (uses): Operating transfers in 1,108,235 1,108,234 (1) 1,167,242 Operating transfers out (414,103) (409,260) 4,843 (479,096) Total other financing sources (uses) 694,132 698,974 4,842 688,146 Excess of revenues and other sources over(under) expenditures and other uses $ (2,166,003) (598,770) $ 1,567,233 (85,191) Fund balance- beginning 10,078,464 10,256,351 Residual equity transfer (426,952) (92,696) Fund balance - ending $ 9,052,742 $10,078,464 50 it SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to be expended for specified purposes. Five individual funds are reported within the Special Revenue Funds as follows: Community Development Block Grant Fund The Community Development Block Grant Fund accounts for federal block grant revenues and related expenditures. Section 8 Housina Fund The Section 8 Housing Fund accounts for federal funds received to subsidize rents and housing payments for lower income families within the City. Home Investment Partnership 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. CITY OF WICHITA FALLS, TEXAS SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 Home Community • Investment Development Section 8 Partnership . Block Grant Housing Agreement ASSETS Cash and cash equivalents $ (16,783) $931,407 $ 71,082 Receivables: Taxes and assessments - - - Government agencies 2,278,444 - 561,774 Other 2,136 4,919 - Prepaid items 18,000 - - Other assets - - - Total assets $2,281,797 $936,326 $ 632,856 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 64,982 $ 5,052 $ - Accrued payroll 4,852 4,769 1,382 Payable to other City funds 98,519 - - Payable to government agencies - 241,756 - Other liabilities 35,362 - 44,744 Deferred revenue - - - Total liabilities 203,715 251,577 46,126 Fund balance: Reserved for encumbrances 40,390 - - Reserved for prepaid items 18,000 - - Unreserved: Designated for subsequent years expenditures 2,019,692 684,749 586,730 Undesignated - - - Total fund balance 2,078,082 684,749 586,730 Total liabilities and fund balance $2,281,797 $936,326 $ 632,856 51 1 EXHIBIT D-1 Hotel/ Miscellaneous Motel Special . . Totals Tax Revenue 2002 2001 $ 934,606 $ 1,667,933 $3,588,245 $3,109,300 90,465 - 90,465 78,602 - 872,855 3,713,073 3,308,981 - - 7,055 12,701 - 18,000 18,218 - 3,000 3,000 3,000 $ 1,025,071 $ 2,543,788 $7,419,838 $6,530,802 $ - $ 134,401 $ 204,435 $ 272,201 - 30,296 41,299 33,135 - 635,175 733,694 665,655 - 2,223 243,979 123,005 - 79,765 159,871 141,163 - 125,694 125,694 296,325 - 1,007,554 1,508,972 1,531,484 - 83,357 123,747 496,079 - - 18,000 18,218 - 1,452,877 4,744,048 3,813,904 1,025,071 - 1,025,071 671,117 1,025,071 1,536,234 5,910,866 4,999,318 $ 1,025,071 $ 2,543,788 $7,419,838 $6,530,802 CITY OF WICHITA FALLS, TEXAS SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2002 • WITH COMPARATIVE ACTUAL TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001 Home Community Investment Development Section 8 Partnership Block Grant - Housing Agreement Revenues: Taxes $ - $ - $ - Charges for services 33,501 - - Fines and forfeitures - - - - Intergovernmental revenue 1,895,000 3,284,229 550,152 Contributions - - - Miscellaneous revenue 41,088 23,726 13,810 Total revenues 1,969,589 3,307,955 563,962 Expenditures: Current: Administrative services 102,568 - - Police - - - Fire _ - - Parks and recreation 151,918 = - Community development 854,474 3,172,372 456,474 Public works 387,882 - - Health 140,535 - - Traffic and transportation - _ - Capital outlay 14,775 2,109 - Total expenditures 1,652,152 3,174,481 456,474 Excess of revenues over(under)expenditures 317,437 133,474 107,488 Other financing sources(uses): Operating transfers in - - - Operating transfers out - - - Total other financing sources(uses) - - - Excess of revenues and other sources over(under)expenditures and other uses 317,437 133,474 107,488 Fund balance-beginning 1,760,645 570,262 581,685 Prior period adjustment - - (102,443) Residual equity transfers - (18,987) - Fund balance-ending $ 2,078,082 $ 684,749 $ 586,730 52 • EXHIBIT D-2 Totals 2002 2001 Miscellaneous Variance- Hotel/Motel Special Favorable Tax Revenue Actual Budget (Unfavorable) Actual $ 1,174,983 $ - $ 1,174,983 $ 1,069,525 $ 105,458 $ 1,071,597 - 112,504 146,005 345,826 (199,821) 41,869 - 199,044 199,044 111,841 87,203 144,463 - 3,185,177 8,914,558 9,443,374 (528,816) 8,173,725 - 74,638 74,638 74,638 - 223,547 18,640 557,047 654,311 564,958 89,353 626,919 1,193,623 4,128,410 11,163,539 11,610,162 (446,623) 10,282,120 516,427 253,098 872,093 1,694,823 822,730 1,328,600 - 665,453 665,453 1,249,946 584,493 768,839 - 55,891 55,891 80,699 24,808 10,865 - 380,468 532,386 1,196,649 664,263 566,539 - 384,443 4,867,763 7,931,712 3,063,949 4,533,279 - 10,184 398,066 716,609 318,543 247,057 - 1,782,704 1,923,239 2,497,259 574,020 1,792,266 - 274,480 274,480 1,029,979 755,499 71,668 - 376,379 393,263 1,106,111 712,848 140,214 516,427 4,183,100 9,982,634 17,503,787 7,521,153 9,459,327 677,196 (54,690) 1,180,905 (5,893,625) 7,074,530 822,793 - 349,054 349,054 369,263 (20,209) 385,785 (283,150) (24,629) (307,779) (321,314) 13,535 (983,701) (283,150) 324,425 41,275 47,949 (6,674) (597,916) 394,046 269,735 1,222,180 $ (5,845,676) $ 7,067,856 224,877 631,025 1,455,701 4,999,318 5,124,488 - - (102,443) - - (189,202) (208,189) (350,047) $ 1,025,071 $ 1,536,234 $ 5,910,866 $ 4,999,318 EXHIBIT D-3 CITY OF WICHITA FALLS, TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2002 AND 2001 2002 2001 ASSETS Cash and cash equivalents $ (16,783) $ 2,610 Receivables: Government agencies 2,278,444 1,948,062 Other 2,136 2,136 Prepaid items 18,000 18,000 Total assets $2,281,797 $ 1,970,808 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable-trade $ 64,982 $ 99,313 Accrued payroll 4,852 4,701 Payable to other City funds 98,519 68,626 Other liabilities 35,362 37,523 Total liabilities 203,715 210,163 Fund balance: Reserved for encumbrances 40,390 245,420 Reserved for prepaid items 18,000 18,000 Unreserved: Designated for subsequent years expenditures 2,019,692 1,497,225 Total fund balance 2,078,082 1,760,645 Total liabilities and fund balance $2,281,797 $ 1,970,808 53 EXHIBIT D-4 CITY OF WICHITA FALLS, TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 2002 Variance- Favorable 2001 Budget Actual (Unfavorable) Actual Revenues: Charges for services $ - $ 33,501 $ 33,501 $ 23,185 Intergovernmental revenue 1,895,000 1,895,000 - 1,820,000 Miscellaneous revenue - 41,088 41,088 4,635 Total revenues -1,895,000 1,969,589 74,589 1,847,820 Expenditures: Current: Administrative services 205,070 102,568 102,502 211,156 Parks and recreation 208,699 151,918 56,781 271,467 Community development 2,466,761 854,474 1,612,287 853,908 Public works 413,455 387,882 25,573 247,057 Health 141,494 140,535 959 134,465 Traffic and transportation - - - 11,000 Capital outlay 341,718 14,775 326,943 2,338 Total expenditures 3,777,197 1,652,152 2,125,045 1,731,391 Excess of revenues over(under) expenditures _ $ (1,882,197) 317,437 $ 2,199,634 116,429 Fund balance- beginning 1,760,645 1,644,216 Fund balance- ending $2,078,082 $ 1,760,645 54 EXHIBIT D-5 CITY OF WICHITA FALLS, TEXAS SECTION 8 HOUSING FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2002 AND 2001 2002 2001 ASSETS Cash and cash equivalents $ 931,407 $ 634,082 Receivables: Government agencies - 57,988 Other 4,919 2,875 Total assets $ 936,326 $ 694,945 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable-trade $ 5,052 $ 360 Accrued payroll 4,769 3,420 Payable to government agencies 241,756 120,903 Total liabilities 251,577 124,683 Fund balance: Unreserved: Designated for subsequent years expenditures 684,749 570,262 Total fund balance 684,749 570,262 Total liabilities and fund balance $ 936,326 $ 694,945 55 EXHIBIT D-6 CITY OF WICHITA FALLS, TEXAS SECTION 8 HOUSING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 2002 Variance- Favorable 2001 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue $3,521,705 $ 3,284,229 $ (237,476) $2,776,875 Miscellaneous revenue - 23,726 23,726 40,342 Total revenues 3,521,705 3,307,955 (213,750) 2,817,217 Expenditures: Current: Community development 3,486,836 3,172,372 314,464 2,778,092 Capital 34,869 2,109 32,760 2,338 Total expenditures 3,521,705 3,174,481 347,224 2,780,430 Excess of revenues over(under) expenditures $ - 133,474 $ 133,474 36,787 Fund balance- beginning 570,262 533,475 Residual equity transfer (18,987) - Fund balance - ending $ 684,749 $ 570,262 56 EXHIBIT D-7 CITY OF WICHITA FALLS, TEXAS HOME INVESTMENT PARTNERSHIP AGREEMENT FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2002 AND 2001 2002 2001 ASSETS Cash and cash equivalents $ 71,082 $ - Receivables: Government agencies - 561,774 662,018 Total assets $ 632,856 $ 662,018 LIABILITIES AND FUND BALANCE - Liabilities: Accounts payable-trade $ - $ 14,153 Accrued payroll 1,382 920 Payable to other City funds - 20,516 Other liabilities 44,744 44,744 Total liabilities 46,126 80,333 Fund balance: Unreserved: Designated for subsequent years expenditures 586,730 581,685 Total fund balance 586,730 581,685 Total liabilities and fund balance $ 632,856 $ 662,018 57 EXHIBIT D-8 CITY OF WICHITA FALLS, TEXAS HOME INVESTMENT PARTNERSHIP AGREEMENT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 2002 Variance - Favorable 2001 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue $ 627,000 $ 550,152 $ (76,848) $ 668,513 Miscellaneous revenue - 13,810 13,810 8,654 Total revenues 627,000 563,962 (63,038) 677,167 Expenditures: Current: Community development 1,300,768 456,474 844,294 560,454 Excess of revenues over(under) expenditures $ (673,768) 107,488 $ 781,256 116,713 Fund balance - beginning 581,685 464,972 Prior period adjustment (102,443) • - Fund balance - ending $ 586,730 $ 581,685 58 EXHIBIT D-9 CITY OF WICHITA FALLS, TEXAS HOTEUMOTEL TAX FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2002 AND 2001 2002 2001 ASSETS Cash and cash equivalents $ 934,606 $ 605,189 Receivables: Taxes and assessments • 90,465 78,602 Total assets $1,025,071 $ 683,791 LIABILITIES AND FUND BALANCE Liabilities Accounts payable-trade $ - $ 52,766 Fund balance: Unreserved: Undesignated 1,025,071 631,025 Total liabilities and fund balance $1,025,071 $ 683,791 59 EXHIBIT D-10 CITY OF WICHITA FALLS, TEXAS HOTEL/MOTEL TAX FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 2002 Variance - Favorable 2001 Budget Actual (Unfavorable) Actual Revenues: Taxes $ 1,069,525 $1,174,983 $ 105,458 $ 1,071,597 Miscellaneous revenue 27,000 18,640 (8,360) 45,371 Total revenues 1,096,525 1,193,623 97,098 1,116,968 Expenditures: Current: Administrative services 799,840 516,427 283,413 938,047 Excess of revenues over(under) expenditures 296,685 677,196 380,511 178,921 Other financing sources (uses): Operating transfers out (296,685) (283,150) 13,535 (441,353) Excess of revenues and other sources over(under) expenditures and other uses $ - 394,046 $ 394,046 (262,432) Fund balance- beginning 631,025 893,457 Fund balance- ending $1,025,071 $ 631,025 60 EXHIBIT D-11 CITY OF WICHITA FALLS, TEXAS MISCELLANEOUS SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2002 AND 2001 2002 2001 ASSETS Cash and cash equivalents $ 1,667,933 $ 1,867,419 • Receivables: Government agencies 872,855 640,913 Other - 7,690 Prepaid items - 218 Other assets 3,000 3,000 Total assets $2,543,788 $ 2,519,240 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 134,401 $ 105,609 Accrued payroll 30,296 24,094 Payable to other City funds 635,175 576,513 Payable to government agencies 2,223 2,102 Other liabilities 79,765 58,896 Deferred revenue 125,694 296,325 Total liabilities 1,007,554 1,063,539 Fund balance: Reserved for encumbrances 83,357 250,659 Reserved for inventory and prepaid items - 218 Unreserved: Designated for subsequent years expenditures 1,452,877 1,164,732 Undesignated - 40,092 Total fund balance 1,536,234 1,455,701 Total liabilities and fund balance $2,543,788 $ 2,519,240 61 EXHIBIT D-12 CITY OF WICHITA FALLS, TEXAS MISCELLANEOUS SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 2002 Variance- Favorable 2001 Budget Actual (Unfavorable) Actual Revenues: Charges for services $ 345,826 $ 112,504 $ (233,322) $ 18,684 Fines and forfeitures 111,841 199,044 87,203 144,463 Intergovernmental revenue 3,399,669 3,185,177 (214,492) 2,908,337 Contributions 74,638 74,638 - 223,547 Miscellaneous revenue 537,958 557,047 19,089 527,917 Total revenues 4,469,932 4,128,410 (341,522) 3,822,948 Expenditures: Current: Administrative services 689,913 253,098 436,815 179,397 Police 1,249,946 665,453 584,493 768,839 Fire 80,699 55,891 24,808 10,865 Parks and recreation 987,950 380,468 607,482 295,072 Community development 677,347 384,443 292,904 340,825 Public works 303,154 10,184 292,970 - Health 2,355,765 1,782,704 573,061 1,657,801 Traffic and transportation 1,029,979 274,480 755,499 60,668 Capital outlay 729,524 376,379 353,145 135,538 Total expenditures 8,104,277 4,183,100 3,921,177 3,449,005 Excess of revenues over(under) expenditures (3,634,345) (54,690) 3,579,655 373,943 Other financing sources (uses): Operating transfers in 369,263 349,054 (20,209) 385,785 Operating transfers out (24,629) (24,629) - (542,348) Total other financing sources (uses) 344,634 324,425 (20,209) (156,563) Excess of revenues and other sources over(under) expenditures and other uses $ (3,289,711) 269,735 $ 3,559,446 217,380 Fund balance - beginning 1,455,701 1,588,368 Residual equity transfer (189,202) (350,047) Fund balance- ending $ 1,536,234 $1,455,701 62 ve ill ..V DEBT SERVICE FUND The Debt Service Fund, also known as the Interest and Sinking Fund, is established by ordinances authorizing the issuance of general obligation bonds to provide for the payment of bond principal and interest. An ad valorem tax rate and tax levy are required to be computed and levied which will be sufficient to produce the funds required to pay principal and interest as they come due. This fund is also used to provide for the payment of paying agent fees. EXHIBIT E-1 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2002 AND 2001 2002 2001 ASSETS Cash and cash equivalents $ 262,003 $ 211,390 Receivables: Taxes (net of allowance for uncollectible taxes of$96,208 and $99,742) 126,168 133,480 Government agencies 13,891 14,422 Total assets $ 402,062 $ 359,292 LIABILITIES AND FUND BALANCE, Liabilities: Payable to other City funds $ 53 $ - Other liabilities - 27,190 Deferred revenue 131,479 136,329 Total liabilities 131,532 163,519 Fund balance: Unreserved: Designated for debt service 270,530 195,773 Total liabilities and fund balance $ 402,062 $ 359,292 63 EXHIBIT E-2 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2001 2002 Variance- Favorable 2001 Budget Actual (Unfavorable) Actual Revenues: Taxes $ 2,104,120 $ 2,123,395 $ 19,275 $2,107,657 Miscellaneous revenue - 25,728 25,728 91,804 Total revenues 2,104,120 2,149,123 45,003 2,199,461 Expenditures: Debt service: Principal retirement 1,805,000 1,805,000 - 1,690,000 Interest and paying agent fees 1,173,310 1,143,555 29,755 823,768 Total expenditures 2,978,310 2,948,555 29,755 2,513,768 Excess of revenues over(under) expenditures (874,190) (799,432) 74,758 (314,307) Other financing sources (uses): Operating transfers in 769,190 769,189 (1) 309,675 Operating transfers in - component units 105,000 105,000 - - Operating transfers out - - - (1,578,436) Proceeds of refunding bonds - - - 3,218,670 Payment to refunded bonds escrow agent - - - (3,025,400) Total other financing sources (uses) 874,190 874,189 (1) (1,075,491) Excess of revenues and other sources over(under) expenditures and other uses $ - $ 74,757 $ 74,757 (1,389,798) Fund balance- beginning 195,773 1,585,571 Fund balance - ending $ 270,530 $ 195,773 64 U 3 CAPITAL PROJECTS FUNDS • The Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). The eight Capital Projects Funds are as follows: Library Renovations This fund was established to account for a single project financed by the issuance of tax anticipation notes. The project is the renovation of the Activities Center to house the Wichita Falls Public Library. 1981 G.O. General Improvements This fund was established to account for the projects financed by the 1981 General Obligation Bonds. Significant projects accounted for in this fund included street improvements and the construction of a storm drain. 1985 Holliday Creek Project This fund was established to account for a single project financed by the 1985 General Obligation Bonds. The project is designed to increase flood control capabilities in the Holliday Creek area. Capital Improvement Assessments This fund was established to account for special assessments which are capital in nature and enhance the utility, accessibility, or aesthetic value of the affected properties. Significant projects accounted for in this fund are streets and sidewalks. 4B Sales Tax Projects This fund was established to account for projects financed by the Wichita Falls 4B Sales Tax Corporation. Significant projects accounted for in this fund included the construction of three fire stations and the renovation of the second floor of the Wichita Falls Public Library building for recreational purposes. MPEC Coliseum This fund was established to account for the construction of the Multi-Purpose Events Center's (MPEC) Coliseum. Street Improvements This fund was established to account for the significant street improvement projects. Drainage Improvements This fund was established to account for the drainage improvement projects. CITY OF WICHITA FALLS, TEXAS CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 • 1985 1981 Holliday Capital Library G.O. General Creek Improvement Renovations Improvements Project Assessments ASSETS Cash and cash equivalents $ 84,728 $ 618,777 $ 1,364,406 $ 65,823 Receivables: Component Unit - - - - Other - - 394 - Total assets $ 84,728 $ 618,777 $ 1,364,800 $ 65,823 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable-trade $ - $ - $ - $ - Payable to other City funds - - - - Tax anticipation notes payable 660,000 - - - Other liabilities - - - - Total liabilities 660,000 - - - Fund balance: Reserved for encumbrances - - - - Unreserved: Designated for subsequent years expenditures - 618,777 1,364,800 65,823 Undesignated (575,272) - - - Total fund balance (575,272) 618,777 1,364,800 65,823 Total liabilities and fund balance $ 84,728 $ 618,777 $ 1,364,800 $ 65,823 65 EXHIBIT F-1 4B Sales MPEC Street Drainage Totals Tax Projects Coliseum Improvements Improvements 2002 2001 $ 300 $ 5,127,471 $ 38,451 $ 2,648,160 $ 9,948,116 - $ 21,298,775 2,106,193 - - - 2,106,193 1,535,812 - - - - - 394 853 $ 2,106,493 $ 5,127,471 $ 38,451 $ 2,648,160 $ 12,054,703 $ 22,835,440 $ 70,405 $ 1,188,619 $ - $ - $ 1,259,024 $ 929,537 - - - - - 21,000 - - - - 660,000 965,000 1,811 1,544,023 - - 1,545,834 279,895 72,216 2,732,642 - - 3,464,858 2,195,432 1,525,684 - - - 1,525,684 1,143,705 508,593 2,394,829 38,451 2,648,160 7,639,433 20,376,575 - - - - (575,272) (880,272) 2,034,277 2,394,829 38,451 2,648,160 8,589,845 20,640,008 $ 2,106,493 $ 5,127,471 $ 38,451 $ 2,648,160 $ 12,054,703 $ 22,835,440 CITY OF WICHITA FALLS, TEXAS CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 1985 - 1981 Holliday Capital Library G.O. General Creek Improvement Renovations Improvements Project Assessments Revenues: Contributions $ - $ - $ - $ - Miscellaneous revenue: Capital improvement assessments - - - 194 Interest - 12,606 25,733 1,338 Total revenues - 12,606 25,733 1,532 Expenditures: Current: Fire - - - - Public works: Street improvement - - - - MPEC Coliseum - - - - Total public works - - - - Capital outlay: MPEC Coliseum - - - - Fire drill field - - - - Police/fire training facility - - - - Communications - - - - Total capital outlay - - - - Debt service: Interest and paying agent fees 37,969 - - - Total expenditures 37,969 - - - Excess of revenues over(under)expenditures (37,969) 12,606 25,733 1,532 Other financing sources(uses): Operating transfers in - - - - Operating transfers in-component units 342,969 - - - Operating transfers out - - - - Bond proceeds - - - - Total other financing sources(uses) 342,969 - - - Excess of revenues and other sources over(under)expenditures and other uses 305,000 12,606 25,733 1,532 Fund balance-beginning (880,272) 606,171 1,339,067 64,291 Residual equity transfers - - - - Fund balance-ending $ (575,272) $ 618,777 $ 1,364,800 $ 65,823 66 EXHIBIT F-2 • 4B Sales MPEC Street Drainage Totals Tax Projects Coliseum Improvements Improvements 2002 2001 $ - $ 700,000 ' $ - $ - $ 700,000 $ 3,194,791 - - - - 194 2,442 - 221,248 8,029 54,862 323,816 689,389 - 921,248 8,029 54,862 1,024,010 3,886,622 - - - - 24,651 - - 898,220 - 898,220 82,407 - 7,600 - - 7,600 22,272 - 7,600 898,220 - 905,820 104,679 12,887,418 - - 12,887,418 3,316,687 27,856 - - - 27,856 30,725 140,345 - - - 140,345 - 109,334 - - - 109,334 - 277,535 12,887,418 - - 13,164,953 3,347,412 - - - - 37,969 51,360 277,535 12,895,018 898,220 - 14,108,742 3,528,102 (277,535) (11,973,770) (890,191) 54,862 (13,084,732) 358,520 - - - - 10,494,455 776,000 - - - 1,118,969 2,081,955 - - - - (4,918,729) - - - - 7,000,000 776,000 - - - 1,118,969 14,657,681 498,465 (11,973,770) (890,191) 54,862 (11,965,763) 15,016,201 1,535,812 14,368,599 928,642 2,677,698 20,640,008 5,623,807 - - - (84,400) (84,400) - $ 2,034,277 $ 2,394,829 $ 38,451 $ 2,648,160 $ 8,589,845 $ 20,640,008 Wichita ENTERPRISE FUNDS Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the governing body is that the cost of providing the service to the general public on a continuing basis be recovered primarily through user charges. The Enterprise Funds include the following: 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. Sanitation Fund The Sanitation Fund was established to account for the operating revenues and expenses associated with the collection of residential garbage and refuse produced by commercial establishments within the City of Wichita Falls. Although a program of the City government, the Sanitation Fund is operated as a separate enterprise and the accounting records are maintained on an enterprise fund basis. Water and Sewer Fund The Water and Sewer Fund was established for control of the operating revenues and expenses of the City of Wichita Falls water and sewer utility. To comply with bond ordinances and accounting policies, a number of funds have been established to account for water and sewer maintenance and operations, billing and collection, extensions and improvements, and debt service. The various funds used to account for the different functions have been combined into the Water and Sewer Fund as presented in the financial statements. 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 ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30,2002 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 Municipal Kickapoo Golf Airport Airport ASSETS Current assets: Cash and cash equivalents $ 165,674 $ 298,737 $ 201,469 Investments - - - Receivables(net of allowance for uncollectible accounts): Customer and trade - - - Government agencies - - - Other - 23,250 831 Inventory 79,518 - 17,794 Prepaid items 2,122 4,835 6,131 Total current assets 247,314 326,822 226,225 Restricted assets: Cash and cash equivalents - - - Investments - - - Receivables: Bond proceeds - - - Other - - - Total restricted assets - - - Plant and equipment: Land and betterments 4,935 1,461,823 954,677 Buildings,systems and improvements 13,267 1,452,202 566,233 Machinery and equipment 77,498 16,283 60,179 Furniture and fixtures 3,175 36,705 - Motor vehicles and equipment _ - - Construction in progress - - - 98,875 2,967,013 1,581,089 Less accumulated depreciation (37,671) (2,171,408) (125,874) Total plant and equipment 61,204 795,605 1,455,215 Other assets: Deferred charges - - - Total assets $ 308,518 $ 1,122,427 $ 1,681,440 67 EXHIBIT G-1 (Page 1 of 2) Water and Stormwater Totals Transit Sanitation Sewer Drainage 2002 2001 $ 51 $ 3,372,255 $ 14,892,339 $ 1,311,010 $ 20,241,535 $ 17,989,989 - 1,989,878 4,022,524 - 6,012,402 - - 720,727 2,837,398 97,698 3,655,823 3,712,473 263,038 - 51,419 - 314,457 106,256 - 21,579 98,703 - 144,363 88,296 - - 660,603 - 757,915 766,159 1,016 3,258 19,749 - 37,111 9,619 264,105 6,107,697 22,582,735 1,408,708 31,163,606 22,672,792 - - 121,952,097 - 121,952,097 24,883,434 - - 8,971,466 - 8,971,466 - - - - - - 119,591,856 - 59,436 - 59,436 16,701 - - 130,982,999 - 130,982,999 144,491,991 61,925 1,790,582 24,088,689 - 28,362,631 26,591,207 626,868 2,370,382 136,481,753 - 141,510,705 135,734,023 104,479 - 117,092 3,678,633 19,275 4,073,439 3,752,870 1,152 - 1,164 - 42,196 42,196 - - 1,235 - 1,235 1,235 494,614 5,219,201 - 5,713,815 4,721,299 794,424 4,772,670 169,470,675 19,275 179,704,021 170,842,830 (180,447) (1,089,361) (63,540,334) (964) (67,146,059) (64,280,043) 613,977 3,683,309 105,930,341 18,311 112,557,962 106,562,787 - 2,857,290 - 2,857,290 3,132,055 $ 878,082 $ 9,791,006 $ 262,353,365 $ 1,427,019 $ 277,561,857 $ 276,859,625 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET(CONT'D.) _ SEPTEMBER 30,2002 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 Municipal Kickapoo Golf Airport Airport LIABILITIES AND FUND EQUITY Current liabilities payable from current assets: Accounts payable-trade $ 20,698 $ 9,170 $ 12,752 Accrued payroll 8,896 457 1,953 Accrued vacation and sick leave 8,513 1,682 2,661 Payable to other City funds - - - Payable to government agencies 3,690 4,615 375 Other liabilities 2,829 - - Deferred revenue - 2,710 - Total current liabilities payable from current assets 44,626 18,634 17,741 Current liabilities payable from restricted assets: Contracts and trade - - - Revenue bonds-current maturities - - - Accrued interest- revenue bonds - - - Arbitrage rebate - - - Total current liabilities payable from restricted assets - - - Long-term liabilities: Payable to U.S. Government - - - Revenue bonds, less current maturities - - - Arbitrage rebate - - - Estimated liability for landfill closure and post-closure care costs - - - Total long-term liabilities - - - Long-term liabilities payable from restricted assets: Customer deposits , - - - Total liabilities 44,626 18,634 17,741 Fund equity: Contributed capital 8,279 2,292,192 1,600,000 Retained earnings(deficit): Reserved for revenue bond debt service - - - Unreserved 255,613 (1,188,399) 63,699 Total retained earnings(deficit) 255,613 (1,188,399) 63,699 Total fund equity 263,892 1,103,793 1,663,699 Total liabilities and fund equity $ 308,518 $ 1,122,427 $ 1,681,440 68 EXHIBIT G-1 (Page 2 of 2) Water and Stormwater Totals Transit Sanitation Sewer Drainage 2002 2001 $ 3,753 $ 89,674 $ 693,782 $ - $ 829,829 $ 1,109,839 9,518 40,254 88,557 - 149,635 112,950 16,878 88,108 211,386 - 329,228 329,342 284,771 - - - 284,771 59,430 40,673 - - 49,353 45,198 - 7,768 54,366 - 64,963 148,218 - - - - 2,710 - 314,920 266,477 1,048,091 - 1,710,489 1,804,977 - - - - - 8,025 - - 3,981,101 - 3,981,101 4,299,753 - - 1,422,473 - 1,422,473 950,604 - - 76,826 - 76,826 - - - 5,480,400 - 5,480,400 5,258,382 - - 807,674 - 807,674 832,565 - - 168,368,339 - 168,368,339 172,349,440 - - 166,391 - 166,391 - - 3,320,021 - - 3,320,021 3,201,245 - 3,320,021 169,342,404 - 172,662,425 176,383,250 - - 2,151,432 - 2,151,432 2,066,807 314,920 3,586,498 178,022,327 - 182,004,746 185,513,416 833,221 2,909,150 20,748,161 - 28,391,003 28,304,853 14,549,095 - 14,549,095 8,570,885 (270,059) 3,295,358 49,033,782 1,427,019 52,617,013 54,470,471 (270,059) 3,295,358 63,582,877 1,427,019 67,166,108 63,041,356 563,162 6,204,508 84,331,038 1,427,019 95,557,111 91,346,209 $ 878,082 $ 9,791,006 $ 262,353,365 $ 1,427,019 $ 277,561,857 $ 276,859,625 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001 Municipal Kickapoo Golf Airport - Airport Operating revenues: Charges for services $ 648,953 $ - $ 4,996 Rents, concessions and other 134,566 311,152 335,958 Total operating revenues 783,519 311,152 340,954 Operating expenses: Personnel services 502,913 33,497 140,319 Supplies and materials 76,027 408 4,458 Maintenance and repairs 18,562 62,944 38,290 Utilities and other services 80,253 69,040 45,534 Insurance and contract support 6,264 13,088 13,040 Other expenses 49,436 36,222 23,125 Depreciation and amortization 11,320 84,580 50,452 Total operating expenses 744,775 299,779 315,218 Operating income (loss) 38,744 11,373 25,736 Nonoperating revenues (expenses): Interest income 2,326 5,217 3,530 Gain on sale/abandonment of fixed assets - - - Interest expense and paying agent fees - - - Intergovernmental operating grants - - - Contributions - - - Total nonoperating revenues (expenses) 2,326 5,217 3,530 Income (loss) before operating transfers 41,070 16,590 29,266 Operating transfers: Operating transfers in - - - Operating transfers out (8,295) (36,921) (16,921) Net operating transfers (8,295) (36,921) (16,921) Net income (loss) 32,775 (20,331) 12,345 Retained earnings (deficit) - beginning 222,838 (1,168,068) 51,354 Residual equity transfers - - - Retained earnings (deficit) -ending $ 255,613 $ (1,188,399) $ 63,699 69 EXHIBIT G-2 Water and Stormwater Totals Transit Sanitation Sewer Drainage 2002 2001 $ 173,811 $ 7,616,411 $ 27,045,057 $ 1,033,209 $ 36,522,437 $ 35,233,623 7,082 2,047 97,585 - 888,390 886,795 180,893 7,618,458 27,142,642 1,033,209 37,410,827 36,120,418 628,264 2,834,905 6,029,025 - 10,168,923 9,862,546 91,656 104,193 1,125,722 3,126 1,405,590 1,662,853 99,436 1,670,090 1,239,795 - 3,129,117 2,644,151 29,680 3,014,718 3,577,893 - 6,817,118 7,298,108 121,071 68,054 407,729 - 629,246 695,632 30,056 403,023 1,189,667 5,385 1,736,914 1,672,078 16,420 71,860 3,020,368 964 3,255,964 3,289,896 1,016,583 8,166,843 16,590,199 9,475 27,142,872 27,125,264 (835,690) (548,385) 10,552,443 1,023,734 10,267,955 8,995,154 - 142,374 3,175,750 14,868 3,344,065 2,023,413 - - 13,378 - 13,378 - - - (8,550,380) - (8,550,380) (2,761,955) 667,748 - - - 667,748 815,917 - 630,892 - 630,892 - 667,748 142,374 (4,730,360) 14,868 (3,894,297) 77,375 (167,942) (406,011) 5,822,083 1,038,602 6,373,658 9,072,529 152,639 - - - 152,639 151,739 (390,224) (897,716) - (1,350,077) (3,329,311) 152,639 (390,224) (897,716) - (1,197,438) (3,177,572) (15,303) (796,235) 4,924,367 1,038,602 5,176,220 5,894,957 (254,756) 5,108,586 58,692,985 388,417 63,041,356 59,392,270 (1,016,993) (34,475) - (1,051,468) (2,245,871) $ (270,059) $ 3,295,358 $ 63,582,877 $ 1,427,019 $ 67,166,108 $ 63,041,356 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30,2002 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001 Municipal Kickapoo Golf Airport Airport Cash flows from operating activities: Operating income(loss) $ 38,744 $ 11,373 $ 25,736 Adjustments to reconcile operating income(loss) to net cash provided by(used in)operating activities: Depreciation and amortization 11,320 84,580 50,452 Customer deposits received - - - Landfill closure and postclosure care costs - - - (Increase)decrease in current assets: Receivables: Customer and trade - - - Other City funds - - - Government agencies - - - Other 43 193 10,684 Inventory (13,044) - 4,079 Prepaid items (717) (3,547) (2,105) Restricted assets-other receivables - - - Increase(decrease) in current liabilities: Accounts payable-trade (12,895) - 1,211 (580) Accrued payroll 2,687 124 126 Accrued vacation and sick leave 937 625 1,421 Payable to other City funds - - - Payable to government agencies (904) 1,365 133 Deferred revenue - 2,710 - Other liabilities 2,829 - - Other liabilities payable from restricted assets - - - Total adjustments (9,744) 87,261 64,210 Net cash provided by(used in) operating activities 29,000 98,634 89,946 Cash flows from noncapital financing activities: Intergovernmental operating grants - - - Operating transfers in from other funds - - - Operating transfers out to other funds (8,295) (36,921) (16,921) Residual equity transfers from other funds - - - Residual equity transfers to other funds - - - Net cash provided by(used in) noncapital financing activities (8,295) (36,921) (16,921) 70 EXHIBIT G-3 (Page 1 of 2) Water and Stormwater Totals Transit Sanitation Sewer Drainage 2002 2001 $ (835,690) $ (548,385) $ 10,552,443 $ 1,023,734 $ 10,267,955 $ 8,995,154 16,420 71,860 3,020,368 964 3,255,964 3,289,896 - 84,625 - -84,625 35,713 118,776 - - 118,776 62,769 - (19,141) 72,417 3,374 56,650 (348,125) - - - - 398,032 (208,201) - - - (208,201) (62,611) (21,578) (45,408) - (56,066) 10,756 - 17,209 - 8,244 76,902 (1,016) (3,174) (16,934) - (27,493) 1,150 - (42,735) - (42,735) 79,602 (27,859) (162,813) (77,075) - (280,011) 475,206 2,875 11,233 19,640 - 36,685 11,888 (1,729) (1,368) - (114) (2,071) 234,251 - (8,910) - 225,341 59,430 3,561 - - 4,155 3,514 - - - - 2,710 (2,258) - (10,892) (75,192) - (83,255) (50,554) - (8,025) - (8,025) - 16,470 _ (13,897) 2,938,612 4,338 3,087,250 4,039,239 (819,220) (562,282) 13,491,055 1,028,072 13,355,205 13,034,393 667,748 - - - 667,748 815,917 152,639 - - - 152,639 151,739 (390,224) (897,716) - (1,350,077) (3,329,311) 1,750 - 84,400 - 86,150 - (1,016,993) (34,475) - (1,051,468) (2,245,871) 822,137 (1,407,217) (847,791) - (1,495,008) (4,607,526) CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS(CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30,2002 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2001 • Municipal Kickapoo Golf Airport Airport Cash flows from capital and related financing activities: Proceeds from sale of revenue bonds - - - Acquisition and construction of capital assets (29,972) - (700) Proceeds from sale of fixed assets - - - Payment of bond issuance costs - - - Principal paid on long-term debt maturities - - - Interest paid on long-term debt obligations - - - Net cash provided by(used for) capital and related financing activities (29,972) - (700) Cash flows from investing activities: Purchase of investments - - - Maturity/sale of investments - - - Interest on investments 2,326 5,217 3,530 Net cash provided(used) by investing activities 2,326 5,217 3,530 Net increase(decrease) in cash and cash equivalents (6,941) 66,930 75,855 Cash and cash equivalents at beginning of year 172,615 231,807 125,614 Cash and cash equivalents at end of year $ 165,674 $ 298,737 $ 201,469 Noncash capital and financing activities: Capital assets received from developers Gross proceeds of Water and Sewer System Priority Lien Revenue Bonds, Series 2001 not received by year-end - - - Reconciliation of cash and cash equivalents on the combining balance sheet to the combining statement of cash flows: Cash and cash equivalents $ 165,674 $ 298,737 $ 201,469 Restricted assets-cash and cash equivalents - - - Total cash and cash equivalents at end of year $ 165,674 $ 298,737 $ 201,469 71 EXHIBIT G-3 (Page 2 of 2) • Water and Stormwater Totals Transit Sanitation Sewer Drainage 2002 2001 - - 120,884,441 - 120,884,441 - (2,866) (787,412) (7,600,072) (19,275) (8,440,297) (6,252,906) - - 13,378 - 13,378- - (1,292,585) - (1,292,585)- - (4,304,643) - (4,304,643) (2,474,106) - - (8,003,697) - (8,003,697) (2,711,931) (2,866) (787,412) 99,696,822 (19,275) 98,856,597 (11,438,943) - (1,989,878) (12,993,990) - (14,983,868)- - - - - 4,505,323 - 142,374 3,418,968 14,868 3,587,283 2,023,413 - (1,847,504) (9,575,022) 14,868 (11,396,585) 6,528,736 51 (4,604,415) 102,765,064 1,023,665 99,320,209 3,516,660 - 7,976,670 34,079,372 287,345 42,873,423 39,356,763 $ 51 $3,372,255 $136,844,436 $ 1,311,010 $ 142,193,632 $42,873,423 $ - $ - $ 630,892 $ - $ 630,892 $ 404,599 - - - - - 119,591,856 $ 51 $3,372,255 $ 14,892,339 $ 1,311,010 $ 20,241,535 $17,989,989 - - 121,952,097 - 121,952,097 24,883,434 $ 51 $3,372,255 $136,844,436 $ 1,311,010 $ 142,193,632 $42,873,423 r .� n 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 H-1 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 Employee -Fleet Duplicating Benefit Totals Maintenance Services Trust 2002 2001 ASSETS Current assets: Cash and cash equivalents $ 341,992 $ 61,674 $ 1,324,274 $ 1,727,940 $ 2,243,835 Receivables: Other 12,956 - - 12,956 26,097 Inventory 765,041 10,783 - 775,824 719,310 Prepaid items 4,379 7,342 - 11,721 9,976 Total current assets 1,124,368 79,799 1,324,274 2,528,441 2,999,218 Plant and equipment: Land and betterments 433,658 - - 433,658 433,658 Buildings,systems and improvements 4,010,098 - - 4,010,098 4,010,098 Machinery and equipment - 107,559 - 107,559 103,129 Furniture and fixtures 6,358 - - 6,358 6,358 Motor vehicles and equipment 33,616,778 - - 33,616,778 31,328,014 Construction in progress 6,706 - - 6,706 190,541 38,073,598 107,559 - 38,181,157 36,071,798 Less accumulated depreciation (21,956,444) (17,892) - (21,974,336) (20,580,565) Total plant and equipment 16,117,154 89,667 - 16,206,821 15,491,233 Total assets $ 17,241,522 $ 169,466 $ 1,324,274 $ 18,735,262 $ 18,490,451 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable-trade $ 178,652 $ 17,709 $ 37,203 $ 233,564 $ 180,224 Accrued payroll 26,860 864 2,179 29,903 20,648 Accrued vacation and sick leave 44,134 - - 44,134 44,621 Estimated health claims payable - - 618,170 618,170 679,732 Other liabilities 500 - - 500 - Total current liabilities 250,146 18,573 657,552 926,271 925,225 Fund equity: Contributed capital 25,872,854 101,474 - 25,974,328 24,289,470 Retained earnings(deficit) (8,881,478) 49,419 666,722 (8,165,337) (6,724,244) Total fund equity 16,991,376 150,893 666,722 17,808,991 17,565,226 Total liabilities and fund equity $ 17,241,522 $ 169,466 $ 1,324,274 $ 18,735,262 $ 18,490,451 72 EXHIBIT H-2 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 2002 • WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 Employee Fleet Duplicating Benefit Totals Maintenance Services Trust 2002 2001 Operating revenues: Charges for services $ 6,969,337 $ 293,341 $ 43,955 $ 7,306,633 $ 7,052,109 Rents,concessions and other 75,041 1,579 206,526 283,146 433,791 Contributions - - 5,364,116 5,364,116 5,325,643 Total operating revenues 7,044,378 294,920 5,614,597 12,953,895 12,811,543 Operating expenses: Personnel services 1,450,121 66,463 146,985 1,663,569 1,641,316 Supplies and materials 1,795,880 60,076 15,773 1,871,729 2,061,868 Maintenance and repairs 1,581,071 21,955 - 1,603,026 1,526,451 Utilities and other services 70,225 2,882 19,748 92,855 85,420 Insurance and contract support 73,325 - 5,598,920 5,672,245 5,091,818 Other expenses 133,114 124,772 121,978 379,864 301,477 Depreciation and amortization 2,970,937 12,079 - 2,983,016 2,841,619 Total operating expenses 8,074,673 288,227 5,903,404 14,266,304 13,549,969 Operating income(loss) (1,030,295) 6,693 (288,807) (1,312,409) (738,426) _ Nonoperating revenues(expenses): Interest income - - 39,261 39,261 69,250 Gain on sale of fixed assets 144,055 - - 144,055 100,633 Total nonoperating revenues (expenses) 144,055 - 39,261 183,316 169,883 Income(loss)before operating transfers (886,240) 6,693 (249,546) (1,129,093) (568,543) Operating transfers: Operating transfers out (312,000) - - (312,000) (312,000) Net income(loss) (1,198,240) 6,693 (249,546) (1,441,093) (880,543) Retained earnings(deficit)-beginning (7,683,238) 42,726 916,268 (6,724,244) (5,843,701) Retained earnings(deficit)-ending $ (8,881,478) $ 49,419 $ 666,722 $ (8,165,337) $ (6,724,244) 73 • EXHIBIT H-3 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 Employee Fleet Duplicating Benefit Totals Maintenance Services Trust 2002 2001 Cash flows from operating activities: Operating income(loss) $ (1,030,295) $ 6,693 $ (288,807) $ (1,312,409) $ (738,426) Adjustments to reconcile operating income to net cash provided(used)by operating activities: Depreciation and amortization 2,970,937 12,079 - 2,983,016 2,841,619 (Increase)decrease in current assets: Receivables: Other 13,141 - - 13,141 (16,860) Inventory (60,074) 3,560 - (56,514) (49,678) Prepaid items 120 (1,865) - (1,745) (5,482) Increase(decrease)in current liabilities: Accounts payable-trade 22,712 15,171 15,457 53,340 (62,798) Accrued payroll 8,320 250 685 9,255 1,412 Accrued vacation and sick leave (487) - - (487) 2,266 Estimated health claims payable - - (61,562) (61,562) 104,436 Other liabilities 500 - - 500 - Total adjustments 2,955,169 29,195 (45,420) 2,938,944 2,814,915 Net cash provided(used)by operating activities 1,924,874 35,888 (334,227) 1,626,535 2,076,489 Cash flows from noncapital financing activities: Operating transfers out to other funds (312,000) - - (312,000) (312,000) Residual equity transfers from other funds 1,684,858 - - 1,684,858 2,688,614 Net cash provided by noncapital financing activities 1,372,858 - - 1,372,858 2,376,614 Cash flows from capital and related financing activities: Acquisition of capital assets (3,700,502) (4,430) - (3,704,932) (3,624,824) Proceeds from sale of fixed assets 150,383 - - 150,383 112,472 Net cash used for capital and related financing activities (3,550,119) (4,430) - (3,554,549) (3,512,352) Cash flows from investing activities: Interest on investments - - 39,261 39,261 69,250 Net increase(decrease)in cash and cash equivalents (252,387) 31,458 (294,966) (515,895) 1,010,001 Cash and cash equivalents at beginning of year 594,379 30,216 1,619,240 2,243,835 1,233,834 Cash and cash equivalents at end of year $ 341,992 $ 61,674 $ 1,324,274 $ 1,727,940 $ 2,243,835 74 TRUST AND AGENCY FUNDS Trust Funds account for assets held by the City of Wichita Falls in a trustee capacity. Agency Funds are used to account for assets held by the City of Wichita Falls as an agent for other governmental units and/or other funds. Trust and Agency Funds include the following: Excess Sales Tax Fund This expendable trust fund is used to account for and administer the excess sales tax collected relative to the property reduction tax. - Cemetery Perpetual Care Fund This nonexpendable trust fund is used to account for the principal trust amounts received and related interest income. The interest portion of the trust can be used to maintain the City's cemeteries. Payroll Fund This agency fund is used to account for the collection of payroll gross amounts from the various City funds and the distribution of payroll checks to City employees. Escheatment Fund This agency fund is used to account for property that has been abandoned or unclaimed pending escheatment to the State of Texas. CITY OF WICHITA FALLS, TEXAS TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 Expendable Nonexpendable Trust Trust Excess Cemetery Sales Tax Perpetual Fund Care ASSETS Cash and cash equivalents $ 304,918 $ 565,417 Receivables: Government agencies 37,918 - Other - 850 Total assets $ 342,836 $ 566,267 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ - $ - Other liabilities - - Total liabilities - - Fund balance: Designated for: Debt service 342,836 - Perpetual care - 566,267 Total fund balance 342,836 566,267 Total liabilities and fund balance $ 342,836 $ 566,267 75 EXHIBIT I-1 Agency Funds Payroll Escheatment Totals Fund .Fund 2002 2001 $ 409,213 $ 28,593 $ 1,308,141 $ 941,785 - - 37,918 299,618 - - 850 - $ 409,213 $ 28,593 $ 1,346,909 $ 1,241,403 $ 409,213 $ - $ 409,213 $ 368,592 - 28,593 28,593 45,986 409,213 28,593 437,806 414,578 - - 342,836 299,618 - - 566,267 527,207 - - 909,103 826,825 $ 409,213 $ 28,593 $ 1,346,909 $ 1,241,403 EXHIBIT I-2 CITY OF WICHITA FALLS, TEXAS EXCESS SALES TAX EXPENDABLE TRUST FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001 2002 2001 Revenues: Taxes $ 37,918 $ 299,618 Miscellaneous revenue 5,300 32,658 Total revenues 43,218 332,276 Expenditures - - Excess revenues over expenditures 43,218 332,276 Other financing uses: Operating transfers out - (907,623) Excess of revenues over(under) expenditures and other uses 43,218 (575,347) Fund balance, beginning 299,618 874,965 Fund balance, ending $ 342,836 $ 299,618 • 76 EXHIBIT I-3 CITY OF WICHITA FALLS, TEXAS CEMETERY PERPETUAL CARE NONEXPENDABLE TRUST FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001 2002 2001 Operating revenue: • Rents, concessions and other $ 27,830 $ 39,930 Operating expenses - - Operating income 27,830 39,930 Nonoperating revenue: Interest income 11,230 25,146 Net income 39,060 65,076 Fund balance, beginning 527,207 462,131 Fund balance, ending $ 566,267 $ 527,207 77 EXHIBIT 1-4 CITY OF WICHITA FALLS, TEXAS CEMETERY PERPETUAL CARE NONEXPENDABLE TRUST FUND COMPARATIVE STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2002 AND 2001 2002 2001 Cash flows from operating activities: Operating income $ 27,830 $ 39,930 Adjustment to reconcile operating income to net cash provided by operating activities: Increase in current assets: Receivables: Other (850) - Net cash provided by operating activities 26,980 39,930 Cash flows from investing activities: Interest on investments - 11,230 25,146 Net increase in cash and cash equivalents 38,210 65,076 Cash and cash equivalents at beginning of year 527,207 462,131 Cash and cash equivalents at end of year $ 565,417 $ 527,207 78 EXHIBIT 1-5 CITY OF WICHITA FALLS, TEXAS AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED SEPTEMBER 30, 2002 Balance Balance 10/1/2001 Additions Deductions 9/30/2002 PAYROLL FUND ASSETS Cash and cash equivalents $ 368,592 $ 57,952,057 $ 57,911,436 $ 409,213 . Total assets $ 368,592 $ 57,952,057 $ 57,911,436 $ 409,213 LIABILITIES Accounts payable-trade $ 368,592 $ 17,534,223 $ 17,493,602 $ 409,213 Other liabilities - 33,190,220 33,190,220 - Total liabilities $ 368,592 $ 50,724,443 $ 50,683,822 $ 409,213 ESCHEATMENT FUND ASSETS Cash and cash equivalents $ 45,986 $ 3,508 $ 20,901 $ 28,593 Total assets $ 45,986 $ 3,508 $ 20,901 $ 28,593 LIABILITIES Other liabilities $ 45,986 $ 22,852 $ 40,245 $ 28,593 Total liabilities $ 45,986 $ 22,852 $ 40,245 $ 28,593 TOTALS-ALL AGENCY FUNDS ASSETS Cash and cash equivalents $ 414,578 $ 57,955,565 $ 57,932,337 $ 437,806 Total assets $ 414,578 $ 57,955,565 $ 57,932,337 $ 437,806 LIABILITIES Accounts payable-trade $ 368,592 $ 17,534,223 $ 17,493,602 $ 409,213 Other liabilities 45,986 33,213,072 33,230,465 28,593 Total liabilities $ 414,578 $ 50,747,295 $ 50,724,067 $ 437,806 79 Wichita 'L 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 three 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 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. CITY OF WICHITA FALLS, TEXAS DISCRETELY PRESENTED COMPONENT UNITS COMBINING BALANCE SHEET SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 Wichita Falls Economic Wichita Falls Development 4B Sales Tax Corporation Corporation ASSETS Cash and cash equivalents $ 10,418,641 $ 6,559,067 Receivables: Taxes and assessments - - Government agencies 465,578 465,578 Plant and equipment: Land and betterments - 140,480 - Buildings, systems and improvements 459,520 - Total assets $ 11,484,219 $ 7,024,645 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable-trade $ 615 $ - Payable to primary government - 2,106,193 Other liabilities 7,776 - Total liabilities 8,391 2,106,193 Equity and other credits: Investment in general fixed assets 600,000 - Fund balance: Reserved for encumbrances 5,598,096 500,000 Unreserved: Designated for subsequent years expenditures 5,277,732 4,418,452 Total equity and other credits 11,475,828 4,918,452 Total liabilities and fund balance $ 11,484,219 $ 7,024,645 80 EXHIBIT J-1 Wichita Falls Reinvestment Totals • Zone#1 2002 2001 $ 493,349 $17,471,057 $13,297,470 6,886 6,886 6,254 931,156 983,214 - 140,480 140,480 - 459,520 459,520 $ 500,235 $19,009,099 $14,886,938 $ - $ 615 $ 35,165 - 2,106,193 1,535,812 - 7,776 - - 2,114,584 1,570,977 - 600,000 600,000 - 6,098,096 2,249,949 500,235 10,196,419 10,466,012 500,235 16,894,515 13,315,961 $ 500,235 $19,009,099 $14,886,938 CITY OF WICHITA FALLS, TEXAS DISCRETELY PRESENTED COMPONENT UNITS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SEPTEMBER 30, 2002 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2001 Wichita Falls Economic Wichita Falls Development 4B Sales Tax Corporation Corporation Revenues: Taxes $ 2,703,762 $ 2,703,762 Miscellaneous revenue 263,359 131,870 Total revenues 2,967,121 2,835,632 Expenditures: Current: Community development 749,449 367,710 Excess revenues over expenditures 2,217,672 2,467,922 Other financing sources (uses): Operating transfers out- primary government - (1,118,969) Excess of revenues and other sources over(under) expenditures and other uses 2,217,672 1,348,953 Fund balance - beginning 8,658,156 3,569,499 Fund balance - ending $ 10,875,828 $ 4,918,452 81 EXHIBIT J-2 Wichita Falls Reinvestment Totals Zone#1 2002 2001 $ 185,486 $ 5,593,010 $ 5,616,393 9,609 404,838 547,191 195,095 5,997,848 6,163,584 78,166 1,195,325 508,420 116,929 4,802,523 5,655,164 (105,000) (1,223,969) (2,081,955) 11,929 3,578,554 3,573,209 488,306 12,715,961 9,142,752 $ 500,235 $16,294,515 $12,715,961 r7 !"r btr SUPPORTING SCHEDULES Wichita grt 7 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES SEPTEMBER 30, 2002 Fiscal Year General Obligation Bonds Water and Sewer Priority Lien Revenue Bonds Ending Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds September 30, Maturities on Bonds and Interest Maturities(1) on Bonds and Interest • 2003 $ 2,120,000 $ 844,291 $ 2,964,291 $ 3,221,101 $ 6,648,233 $ 9,869,334 2004 2,230,000 740,971 2,970,971 3,355,440 6,510,173 9,865,613 2005 2,335,000 631,564 2,966,564 3,509,709 6,359,888 9,869,597 2006 2,455,000 514,521 2,969,521 3,658,947 6,201,857 9,860,804 2007 880,000 387,569 1,267,569 3,838,084 6,029,678 9,867,762 2008 910,000 350,169 1,260,169 1,702,180 5,847,841 7,550,021 2009 945,000 312,631 1,257,631 1,761,394 5,782,781 7,544,175 2010 745,000 273,650 1,018,650 1,850,579 5,715,176 7,565,755 2011 340,000 241,987 581,987 1,919,611 5,636,226 7,555,837 2012 355,000 227,113 582,113 1,998,606 5,553,869 7,552,475 2013 370,000 210,694 580,694 3,452,440 5,459,546 8,911,986 2014 385,000 193,581 578,581 3,630,067 5,280,780 8,910,847 2015 405,000 175,775 580,775 3,817,567 5,092,463 8,910,030 2016 425,000 154,512 579,512 4,014,931 4,893,706 8,908,637 2017 450,000 132,200 582,200 4,212,151 4,684,400 8,896,551 2018 475,000 108,013 583,013 4,439,231 4,464,494 8,903,725 2019 500,000 82,481 582,481 8,136,144 4,232,338 12,368,482 2020 530,000 55,606 585,606 8,564,874 3,798,306 12,363,180 2021 555,000 28,444 583,444 9,018,266 3,340,894 12,359,160 2022 - - - 9,456,786 2,892,394 12,349,180 2023 - - - 9,924,985 2,421,644 12,346,629 2024 - - - 10,442,382 1,895,336 12,337,718 2025 - - - 10,989,377 1,341,250 12,330,627 2026 - - - 11,526,453 792,750 12,319,203 2027 - - - 4,343,135 217,000 4,560,135 $ 17,410,000 $ 5,665,772 $ 23,075,772 $ 132,784,440 $ 111,093,023 $ 243,877,463 (1)Includes amortization of bond premium of$1,554,440. 82 EXHIBIT K-1 Water and Sewer Subordinate Lien Revenue Bonds Totals-All Bonded Debt Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds Maturities on Bonds and Interest Maturities on Bonds and Interest $ 760,000 $ 1,764,723 $ 2,524,723 $ 6,101,101 $ 9,257,247 $ 15,358,348 800,000 1,731,300 2,531,300 6,385,440 8,982,444 15,367,884 830,000 1,695,975 2,525,975 6,674,709 8,687,427 15,362,136 870,000 1,662,825 2,532,825 6,983,947 - 8,379,203 15,363,150 900,000 1,627,545 2,527,545 5,618,084 8,044,792 13,662,876 3,250,000 1,590,885 4,840,885 5,862,180 7,788,895 13,651,075 3,385,000 1,460,750 4,845,750 6,091,394 7,556,162 13,647,556 3,505,000 1,320,997 4,825,997 6,100,579 7,309,823 13,410,402 3,660,000 1,173,664 4,833,664 5,919,611 7,051,877 12,971,488 3,820,000 1,016,174 4,836,174 6,173,606 6,797,156 12,970,762 2,625,000 847,997 3,472,997 6,447,440 6,518,237 12,965,677 2,750,000 722,016 3,472,016 6,765,067 6,196,377 12,961,444 2,885,000 588,538 3,473,538 7,107,567 5,856,776 12,964,343 3,025,000 446,960 3,471,960 7,464,931 5,495,178 12,960,109 3,180,000 298,350 3,478,350 7,842,151 5,114,950 12,957,101 3,320,000 152,388 3,472,388 8,234,231 4,724,895 12,959,126 - - 8,636,144 4,314,819 12,950,963 - - - 9,094,874 3,853,912 12,948,786 - - 9,573,266 3,369,338 12,942,604 - - 9,456,786 2,892,394 12,349,180 - - 9,924,985 2,421,644 12,346,629 - - 10,442,382 1,895,336 12,337,718 - - 10,989,377 1,341,250 12,330,627 - - 11,526,453 792,750 12,319,203 - - 4,343,135 217,000 4,560,135 $ 39,565,000 $ 18,101,087 $ 57,666,087 $ 189,759,440 $ 134,859,882 $ 324,619,322 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE SEPTEMBER 30,2002 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments General Obligation Bonds: General Obligation Refunding 3.50,3.65,4.20,4.40, 06/01/94 09/01/06 105,000 (1994) • Bonds,Series 1994 4.60,4.70,4.90,5.00, 100,000 (1995) 5.10,5.20,5.30,5.40, 100,000 (1996) 5.50 555,000 (1997) (3/1,9/1) 580,000 (1998) 610,000 (1999) 640,000 (2000) 670,000 (2001) 705,000 (2002) 735,000 (2003) 775,000 (2004) 815,000 (2005) 860,000 (2006) 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) Total General Obligation Bonds 83 EXHIBIT K-2 (Page 1 of 4) Bonds Retired or Authorized Issued Refunded Outstanding $ 7,250,000 $ 7,250,000 $ 4,065,000 $ 3,185,000 9,000,000 9,000,000 4,805,000 4,195,000 10,205,000 10,205,000 175,000 10,030,000 26,455,000 26,455,000 9,045,000 17,410,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2002 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments 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) 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 1998E (2/1,8/1) 190,000 (2001) 200,000 (2002) 210,000 (2003) 220,000 (2004) 230,000 (2005) 240,000 (2006) 250,000 (2007) 260,000 (2008) 270,000 (2009) 280,000 (2010) 295,000 (2011) 305,000 (2012) 320,000 (2013) 335,000 (2014) 350,000 (2015) 365,000 (2016) 385,000 (2017) 400,000 (2018) 84 EXHIBIT K-2 (Page 2 of 4) Bonds Retired or Authorized Issued Refunded Outstanding 12,830,000 12,830,000 6,250,000 6,580,000 5,360,000 5,360,000 2,530,000 2,830,000 5,500,000 5,500,000 785,000 4,715,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2002 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) • 85 EXHIBIT K-2 (Page 3 of 4) Bonds Retired or Authorized Issued Refunded Outstanding 118,770,000 118,770,000 1,665,000 117,105,000 1,634,193 79,753 1,554,440 142,460,000 -144,094,193 11,309,753 132,784,440 11,420,000 11,420,000 530,000 10,890,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2002 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) Water and Sewer System 3.65,3.75,3.95,4.00, 10/01/98 08/01/12 375,000 (1999) Subordinate Lien Refunding 4.125,4.20,4.30,4.40, 550,000 (2000) Revenue Bonds,Series 1998A 4.50 570,000 (2001) (2/1,8/1) 585,000 (2002) 610,000 (2003) 640,000 (2004) 670,000 (2005) 700,000 (2006) 725,000 (2007) 3,200,000 (2008) 3,335,000 (2009) 3,455,000 (2010) 3,610,000 (2011) 3,770,000 (2012) Total Subordinate Lien Bonds Total Revenue Bonds Total All Bonds 86 EXHIBIT K-2 (Page 4 of 4) Bonds Retired or Authorized Issued Refunded Outstanding 8,060,000 8,060,000 100,000 7,960,000 22,795,000 22,795,000 2,080,000 20,715,000 42,275,000 42,275,000 2,710,000 39,565,000 184,735,000 186,369,193 14,019,753 172,349,440 $ 211,190,000 $ 212,824,193 $ 23,064,753 $ 189,759,440 EXHIBIT K-3 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE COVERAGE -REVENUE BONDS SEPTEMBER 30, 2002 Water and Sewer Revenue Bonds: Net income (Exhibit G-2) $ 4,924,367 Add: Depreciation and amortization $ 3,020,368 Gain on sale/abandonment of fixed assets (13,378) Interest expense and paying agent fees 8,550,380 Operating transfers out _ 897,716 12,455,086 Subtract: West Texas Utilities water revenues 549,849 Capital contributions from developers 630,892 (1,180,741) Net earnings for determining debt service coverage $ 16,198,712 Priority Subordinate Lien Bonds (1) Lien Bonds Net earnings for determining debt service coverage $ 16,198,712 Principal and interest requirements to maturity $ 243,877,463 $57,666,087 Number of years remaining to pay bonds - 25 16 Average annual principal and interest requirement 9,755,099 3,604,130 Minimum bond covenant debt service coverage x 1.25 x 1.10 Minimum debt service coverage requirement $ 12,193,873 $ 3,964,543 16,158,417 Excess over debt service coverage requirements $ 40,295 87 EXHIBIT K-4 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCES SEPTEMBER 30, 2002 AND 2001 2002 2001 General Fixed Assets: Land and betterments $ 23,416,215 $23,387,429 Buildings and improvements 27,644,389 27,664,965 Machinery and equipment 7,956,633 7,267,032 Furniture and fixtures 214,110 214,110 Motor vehicles and equipment 31,485 31,485 Construction in progress 17,632,581 4,467,627 Total general fixed assets $ 76,895,413 $63,032,648 Investment in General Fixed Assets: From general obligation bonds $ 2,459,962 $ 2,459,962 From local revenues and contributions 54,255,174 40,735,677 From federal and state government contributions 3,179,047 2,835,779 From unidentified sources 17,001,230 17,001,230 Total investment in general fixed assets $ 76,895,413 $63,032,648 • 88 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS -BY SOURCES FOR THE YEAR ENDED SEPTEMBER 30, 2002 Buildings Machinery Land and and and Betterments Improvements Equipment General fixed assets and joint venture assets, October 1, 2001 $ 23,387,429 $ 27,664,965 $ 7,267,032 Additions: Expenditures from: Local revenues and contributions 28,786 13,888 363,784 Federal and state government contributions - - 339,538 Deductions: Assets sold, traded, retired or transferred - 34,464 13,721 General fixed assets and joint venture assets, September 30, 2002 $ 23,416,215 $ 27,644,389 $ 7,956,633 • 89 EXHIBIT K-5 Motor Furniture Vehicles and and Construction Fixtures Equipment in Progress Totals $ 214,110 $ 31,485 $ 4,467,627 $ 63,032,648 • 13,164,954 13,571,412 339,538 - - 48,185 $ 214,110 $ 31,485 $ 17,632,581 $ 76,895,413 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS-BY FUNCTION AND ACTIVITY SEPTEMBER 30,2002 Buildings Machinery Land and and and Betterments Improvements Equipment Administrative services: Mayor and City Council $ - $ 3,797 - $ 2,901 City Manager 1,062,849 336,872 49,516 Personnel/Risk Management - - 14,036 • Martin Luther King Center - 349,839 7,641 Library 477,942 4,523,930 595,536 General Public Information - - 240,017 Building Maintenance - 1,076,622 33,649 Nondepartmental - 518,881 51,211 Municipal Court 230,000 313,818 178,555 Legal - - 2,254 City Clerk - - 6,700 Total administrative services 1,770,791 7,123,759 1,182,016 Police 1,108,614 1,374,498 3,259,058 Fire 252,461 4,435,926 263,183 Parks and recreation: Recreation 655,246 1,900,236 236,508 Park maintenance 8,943,251 1,016,451 54,425 Cemetery 20,200 - 11,115 Total parks and recreation 9,618,697 2,916,687 302,048 Accounting/finance: Accounting/finance - - 13,265 Information Systems - - 1,856,011 Purchasing - - 1,435 Total accounting/finance - - 1,870,711 Community development: Planning - - 78,404 Inspection - - 36,618 Code enforcement - - 73,892 Property management 1,161,884 420,891 65,011 Lake lot administration - - 1,018 Weed and Seed program - - 5,171 Total community development 1,161,884 420,891 260,114 Public works: Engineering 125,806 18,837 137,181 Street maintenance 28,547 86,373 20,692 Total public works 154,353 105,210 157,873 Health: Administration 34,820 1,003,005 209,760 General City nursing 76,411 1,123 99,239 Environmental health - - 30,014 Lab water pollution - - 41,893 Total health 111,231 1,004,128 380,906 Traffic and transportation - 31,045 93,239 Multi-Purpose Events Center 9,238,184 10,232,245 187,485 Total general fixed assets and joint venture assets $ 23,416,215 $ 27,644,389 $ 7,956,633 90 EXHIBIT K-6 Motor Furniture Vehicles and and Construction Fixtures Equipment in Progress Totals $ 5,218 $ - $ - $ 11,916 - 15,050 - •- 1,464,287 3,425 - - 17,461 12,486 - - 369,966 90,578 - - 5,687,986 - - - 240,017 - - - 1,110,271 - - - 570,092 4,043 - - 726,416 - - - 2,254 - - - 6,700 130,800 - - 10,207,366 11,788 - 305,828 6,059,786 1,755 - 26,406 4,979,731 12,818 - - 2,804,808 - - - 10,014,127 - - - 31,315 12,818 - - 12,850,250 - - - 13,265 - - - 1,856,011 - - - 1,435 - - - 1,870,711 1,025 - - 79,429 - - - 36,618 - - - 73,892 - 31,485 - 1,679,271 - - - 1,018 - - - 5,171 1,025 31,485 - 1,875,399 3,355 - - 285,179 1,393 - - 137,005 4,748 - - 422,184 15,963 - - 1,263,548 . 5,447 - - 182,220 - - - 30,014 - - - 41,893 21,410 - - 1,517,675 1,478 - - 125,762 28,288 - 17,300,347 36,986,549 $ 214,110 $ 31,485 $ 17,632,581 $ 76,895,413 EXHIBIT K-7 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS-BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED SEPTEMBER 30, 2002 Beginning Ending Balance Balance 10/1/2001 Additions Deletions Adjustments 9/30/2002 Administrative services: Mayor and City Council $ 11,916 $ - $ - $ - $ 11,916 City Manager 1,464,287 - - - 1,464,287 Personnel/Risk Management 17,461 - - - 17,461 Martin Luther King Center 369,966 - - - 369,966 Library 5,656,778 31,208 _ - - 5,687,986 General Public Information 219,959 20,058 - - 240,017 Building Maintenance 1,107,632 2,639 - - 1,110,271 Nondepartmental 570,092 - - - 570,092 Municipal Court 690,550 35,866 - - 726,416 Legal 2,254 - - -_ 2,254 City Clerk 6,700 - - - 6,700 Total administrative services 10,117,595 89,771 - - 10,207,366 Police 5,501,211 570,176 11,601 - 6,059,786 Fire 4,973,901 40,294 34,464 - 4,979,731 Parks and recreation: Recreation 2,798,264 6,544 - - 2,804,808 Park maintenance 10,014,127 - - - 10,014,127 Cemetery 27,972 3,343 - - 31,315 Total parks and recreation 12,840,363 9,887 - - 12,850,250 Accounting/finance: Accounting/finance 13,265 - - - 13,265 Information Systems 1,691,034 164,977 - - 1,856,011 Purchasing 1,435 - - - 1,435 Total accounting/finance 1,705,734 164,977 - - 1,870,711 Community development: Planning 72,129 7,300 - - 79,429 Inspection 36,618 - - - 36,618 Code enforcement 73,892 - - - 73,892 Property management 1,658,856 20,415 - - 1,679,271 Lake lot administration 1,018 - - - 1,018 Weed and Seed program 3,620 1,551 - - 5,171 Total community development 1,846,133 29,266 - - 1,875,399 Public works: Engineering 244,483 42,816 2,120 - 285,179 Street Maintenance 137,005 - - - 137,005 Total public works 381,488 42,816 2,120 - 422,184 Health: Administration 1,215,253 48,295 - - 1,263,548 General city nursing 182,220 - - - 182,220 Environmental health -6,088 23,926 - - 30,014 Lab water pollution 41,893 - - - 41,893 Total health 1,445,454 72,221 - - 1,517,675 Traffic and transportation 121,639 4,123 - - 125,762 Multi-Purpose Events Center 24,099,130 12,887,419 - - 36,986,549 Total general fixed assets $ 63,032,648 $ 13,910,950 $ 48,185 $ - $ 76,895,413 91 EXHIBIT K-8 CITY OF WICHITA FALLS, TEXAS GOLF FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2002 Balance Balance 10/1/2001 Additions Deletions 9/30/2002 Plant and Equipment: Land and betterments $ 4,935 $ - $ - $ 4,935 Buildings and improvements 13,267 - - 13,267 Machinery and equipment 47,525 29,973 - 77,498 Furniture and fixtures 3,175 - - 3,175 Total plant and equipment 68,902 29,973 - 98,875 Accumulated Depreciation: Land and betterments 1,053 197 - 1,250 Buildings, systems and improvements 3,413 956 - 4,369 Machinery and equipment 20,456 9,850 • - 30,306 Furniture and fixtures 1,429 317 - 1,746 Total accumulated depreciation 26,351 11,320 - 37,671 Net plant and equipment $ 42,551 $ 18,653 $ - $ 61,204 92 EXHIBIT K-9 CITY OF WICHITA FALLS, TEXAS MUNICIPAL AIRPORT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2002 Balance Balance 10/1/2001 Additions Deletions 9/30/2002 Plant and Equipment: Land and betterments $1,461,823 $ - $ - $1,461,823 Buildings and improvements 1,452,202 - - 1,452,202 Machinery and equipment 16,283 - - 16,283 Furniture and fixtures 36,705 - - 36,705 Total plant and equipment 2,967,013 - - 2,967,013 Accumulated Depreciation: Land and betterments 1,260,465 51,256 - 1,311,721 Buildings and improvements 811,396 28,842 - 840,238 Machinery and equipment 11,153 986 - 12,139 Furniture and fixtures 3,814 3,496 - 7,310 Total accumulated depreciation 2,086,828 84,580 - 2,171,408 Net plant and equipment $ 880,185 $ (84,580) $ - $ 795,605 93 EXHIBIT K-10 CITY OF WICHITA FALLS, TEXAS KICKAPOO AIRPORT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2002 Balance Balance 10/1/2001 Additions Deletions 9/30/2002 Plant and Equipment: Land and betterments $ 954,677 $ - $ - $ 954,677 Buildings and improvements 565,533 700 - - 566,233 Machinery and equipment 60,179 - - 60,179 Total plant and equipment 1,580,389 700 - 1,581,089 Accumulated Depreciation: Land and betterments 53,858 35,905 - 89,763 Buildings and improvements 17,181 11,489 - 28,670 Machinery and equipment 4,383 3,058 - 7,441 Total accumulated depreciation 75,422 50,452 - 125,874 Net plant and equipment $1,504,967 $ (49,752) $ - $ 1,455,215 94 EXHIBIT K-11 CITY OF WICHITA FALLS, TEXAS TRANSIT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2002 Balance Balance 10/1/2001 Additions Deletions 9/30/2002 Plant and Equipment: Land and betterments $ 61,925 $ - $ - $ 61,925 Buildings and improvements 626,868 - - 626,868 Machinery and equipment 101,613 2,866 - 104,479 Furniture and fixtures 1,152 - - 1,152 Total plant and equipment 791,558 2,866 - 794,424 Accumulated Depreciation: Buildings and improvements 140,344 7,730 - 148,074 Machinery and equipment 22,531 8,690 - 31,221 Furniture and fixtures 1,152 - - 1,152 Total accumulated depreciation 164,027 16,420 - 180,447 Net plant and equipment $ 627,531 $ (13,554) $ - $ 613,977 95 EXHIBIT K-12 CITY OF WICHITA FALLS, TEXAS SANITATION FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2002 Balance Balance 10/1/2001 Additions Deletions 9/30/2002 Plant and Equipment: Land and betterments $1,038,283 $ 752,299 $ - $1,790,582 Buildings and improvements 2,370,382 - - 2,370,382 Machinery and equipment 109,123 7,969 - 117,092 Construction in progress 467,469 27,145 - 494,614 Total plant and equipment 3,985,257 787,413 - 4,772,670 Accumulated Depreciation: Land and betterments 35,113 9,107 - 44,220 Buildings and improvements 925,305 49,959 - 975,264 Machinery and equipment 57,082 12,795 - 69,877 Total accumulated depreciation 1,017,500 71,861 - 1,089,361 Net plant and equipment $2,967,757 $ 715,552 $ - $3,683,309 96 EXHIBIT K-13 CITY OF WICHITA FALLS, TEXAS WATER AND SEWER FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30,2002 Balance Balance 10/1/2001 Additions Deletions Adjustments 9/30/2002 Plant and Eauinment Land and betterments $ 23,069,564 $ 1,019,125 $ _ - $ - $ 24,088,689 Buildings, systems and improvements 130,705,771 4,708,610 210,000 1,277,372 136,481,753 Machinery and equipment 3,418,147 225,776 - 34,710 3,678,633 Furniture and fixtures 1,164 - - - 1,164 Motor vehicles 1,235 - - - 1,235 Construction in progress 4,253,830 2,277,453 - (1,312,082) 5,219,201 Total plant and equipment 161,449,711 8,230,964 210,000 - 169,470,675 Accumulated Depreciation Land and betterments 7,386,400 243,632 - - 7,630,032 Buildings, systems and improvements 51,095,222 2,468,653 210,000 - 53,353,875 Machinery and equipment 2,426,331 128,076 - - 2,554,407 Furniture and fixtures 727 58 - - 785 Motor vehicles 1,235 - - - 1,235 Total accumulated depreciation 60,909,915 2,840,419 210,000 - 63,540,334 Net plant and equipment $ 100,539,796 $ 5,390,545 $ - $ - $ 105,930,341 97 EXHIBIT K-14 CITY OF WICHITA FALLS, TEXAS STORMWATER DRAINAGE FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2002 Balance Balance 10/1/2001 Additions Deletions 9/30/2002 Plant and Equipment: Machinery and equipment $ - $ 19,275 $ - $ 19,275 Accumulated Depreciation: Machinery and equipment - 964 - 964 Net plant and equipment $ - $ 18,311 $ - $ 18,311 98 EXHIBIT K-15 CITY OF WICHITA FALLS, TEXAS FLEET MAINTENANCE FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2002 - Balance Balance 10/1/2001 Additions Deletions Adjustments 9/30/2002 Plant and Eauioment: 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 31,328,014 3,700,502 1,595,573 183,835 33,616,778 Construction in progress 190,541 - - (183,835) 6,706 Total plant and equipment 35,968,669 3,700,502 1,595,573 - 38,073,598 Accumulated Depreciation: Buildings and improvements 1,251,104 80,179 - - 1,331,283 Furniture and equipment 5,948 171 - - 6,119 Motor vehicles and equipment 19,317,700 2,890,587 1,589,245 - 20,619,042 Total accumulated depreciation 20,574,752 2,970,937 1,589,245 - 21,956,444 Net plant and equipment $15,393,917 $ 729,565 $ 6,328 $ - $16,117,154 99 EXHIBIT K-16 CITY OF WICHITA FALLS, TEXAS DUPLICATING SERVICES FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2002 Balance Balance 10/1/01 Additions Deletions 9/30/02 Plant and Equipment: Machinery and equipment $ 103,129 $ 4,430 $ - $ 107,559 Accumulated Depreciation: Machinery and equipment 5,813 12,079 - 17,892 Net plant and equipment $ 97,316 $ (7,649) $ - $ 89,667 100 EXHIBIT K-17 CITY OF WICHITA FALLS, TEXAS WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 2002 Balance Balance 10/1/2001 Additions Deletions 9/30/2002 Plant and Eauioment: Land and betterments $ 140,480 $ - $ - $ 140,480 Buildings and improvements 459,520 - - 459,520 Net plant and equipment $ 600,000 $ - $ - $ 600,000 101 • STATISTICAL SECTION (UNAUDITED) V r 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 1992-1993 $ 4,850,649 $ 9,680,729 , $ 5,821,934 $ 2,346,032 $ 381,244 $ 264,959 1993-1994 4,721,396 10,014,195 5,916,985 2,398,537 250,402 394,032 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 * 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. 102 EXHIBIT L-1 Debt Service Interest Public Traffic and Capital Principal and Paying Works Health Transportation Outlay Retirement Agent Fees Totals $ 4,246,256 $ 2,499,686 $ 1,121,169 $ - $ - $ - $ 31,212,658 4,101,886 2,813,235 1,152,782 - - - 31,763,450 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 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 1992-1993 $25,705,065 $ 1,111,826 $ 609,670 $1,156,623 1993-1994 27,462,908 1,067,816 - 674,853 1,409,882 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 * 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. 103 EXHIBIT L-2 Intergovernmental Miscellaneous Revenue Contributions Revenue Totals $ 1,723,190 $ - $ 828,742 $31,135,116 1,955,422 - 1,013,323 33,584,204 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 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 1992-1993 $14,940,203 $14,491,314 97.00% $ 278,223 1993-1994 15,220,570 14,847,803 97.55% 254,153 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% 297,405 104 EXHIBIT L-3 Ratio of Ratio of Total Tax Outstanding Delinquent Total Tax Collections to Delinquent Taxes to Collections Total Tax Levy _ Taxes Total Tax Levy $14,769,537 98.86% $1,743,114 11.67% 15,101,956 99.22% 1,719,578 11.30% 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% 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 1992-1993 $ 1,757,192,910 $1,757,192,910 $460,770,563 $460,770,563 1993-1994 1,772,576,420 1,772,576,420 487,009,356 487,009,356 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 2,671,429,859 667,334,298 667,334,298 105 EXHIBIT L-4 Ratio of Total Total Assessed to Assessed Estimated Total Estimated Value Actual Value Actual Value $2,217,963,473 $2,217,963,473 100.00% 2,259,585,776 2,259,585,776 100.00% 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% CITY OF WICHITA FALLS, TEXAS PROPERTY TAX RATES AND TAX LEVIES -DIRECT AND OVERLAPPING GOVERNMENTS - LAST TEN FISCAL YEARS (UNAUDITED) • Fiscal City of Wichita Burkbumett City View Year Wichita Falls County I.S.D. (1) I.S.D. (2) Tax Rates Per$100 Valuation 1992-1993 $ 0.67 $ 0.34 - $ 0.37 $ 0.35 1993-1994 0.67 0.36 1.22 1.20 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 Tax Levies 1992-1993 $ 14,940,203 $ 10,712,983 $ 1,582,110 _ $ 287,728 1993-1994 15,220,570 11,545,265 5,351,692 1,022,231 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 14,625,183 7,104,951 1,448,831 1999-2000 16,115,557 15,177,829 7,087,371 1,549,000 2000-2001 16,791,261 15,538,168 7,816,180 1,772,270 2001-2002 17,635,425 16,834,585 8,226,508 2,069,834 Notes: (1) Burkbumett 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 (5) County Education Districts were created by the Texas Legislature in 1991. All property tax revenues received by the County Education District were distributed to local educational agencies within the County on a prorata basis. Effective September 1, 1993, all County Education Districts were abolished by the Texas Legislature. As of this date, all assets and liabilities of the Wichita County Education District were transferred to the Wichita Falls Independent School District as successor-in-interest. 106 EXHIBIT L-5 County Iowa Park Wichita Falls Education C.I.S.D. (3) I.S.D. (4) District(5) Totals $ - $ 0.39 $ 0.85 $ 2.97 - 1.28 - - 4:73 - 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 $ - $ 8,127,735 $25,839,980 $61,490,739 - 27,967,742 - 61,107,500 - 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 - 80,654,381 4,936,005 39,842,969 - 84,708,731 5,041,838 _ 42,992,685 - 89,952,402 5,212,807 45,115,529 - 95,094,688 EXHIBIT L-6 CITY OF WICHITA FALLS, TEXAS TEN LARGEST TAXPAYERS (UNAUDITED) SEPTEMBER 30, 2002 Percentage January 1, 2002 of Total Assessed Assessed Taxpayer Type of Business Valuation Valuation Southwestern Bell Telephone Utility $ 46,005,162 1.38% Texas Utilities Electric Utility 43,420,140 1.30% Sikes Coyote Mall LP Shopping Center 42,045,000 1.26% Wal-Mart Retail Store 34,277,549 1.03% Clinics of North Texas Medical Center 14,613,806 0.44% Lowe's Home Improvement Center Retail Store 14,348,834 0.43% SBC Asset Management, Inc. Telephone Utility 13,689,391 0.41% Time Warner Cable Television 13,196,703 0.40% Kell West Regional Hospital Medical Center 10,403,611 0.31% Winn Dixie Grocery Store 9,871,185 0.30% Totals $ 241,871,381 7.24% 107 EXHIBIT L-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 1992-1993 $ 204,833 $ 2,857 1.39% 1993-1994 191,745 2,184 1.14% 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 * - - - *- 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. 108 NE ' U EXHIBIT L-8 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED) SEPTEMBER 30, 2002 Total assessed property value per 2001 tax roll $3,338,764,157 Maximum tax rate * $ 2.25/$100 Current tax rate for 2001 tax year .55194/$100 Maximum tax rate in excess of 2001 tax rate 1.69806/$100 Total legal debt margin $ 56,694,219 There is no debt limit established by law. The limit is, therefore, governed by the City's ability to levy and collect taxes to service the outstanding indebtedness. The City's maximum legal tax rate established under its Charter is $2.25 per$100 assessed valuation. The 2001 tax rate is $.55194 per$100 assessed valuation. * Maximum tax levy established by City Charter 109 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 1992-1993 98,600 $2,217,963,473 $ 21,975,000 $ 741,968 1993-1994 99,500 2,259,585,776 21,655,000 944,860 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 Sources: (1) City of Wichita Falls Planning Department for all years, except 2000-01 from U.S. Bureau of Census. 110 EXHIBIT L-9 Ratio of Net General Bonded Debt Net General Net General To Assessed Bonded Debt Bonded Debt Value Per Capita $21,233,032 0.96% $ 215 20,710,140 0.92% 208 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 EXHIBIT L-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 1992-1993 $ 885,000 $ 1,683,099 $ 2,568,099 $ 31,212,658 8.23% 1993-1994 1,065,000 1,416,594 2,481,594 31,763,450 7.81% 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% 111 • EXHIBIT L-11 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF DIRECT AND OVERLAPPING GENERAL BONDED DEBT(UNAUDITED) SEPTEMBER 30, 2002 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 $ 17,410,000 100% $ 17,410,000 Overlapping: Wichita County 6,260,000 100% 6,260,000 Burkburnett Independent School District 16,649,886 25% 4,162,472 City View Independent School District 10,825,044 90% 9,742,540 Iowa Park Consolidated Independent School District 6,287,491 2% 125,750 Wichita Falls Independent School District 32,268,716 99% 31,946,029 Total overlapping 72,291,137 52,236,790 Total direct and overlapping bonded debt $ 89,701,137 $ 69,646,790 Sources: (1) Listed taxing jurisdictions (2) City of Wichita Falls Planning Department 112 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 1992-1993 $ 14,698,916 $ 9,217,131 $ 5,481,785 1993-1994 15,307,931 10,695,460 4,612,471 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 Notes: (1) Includes operating revenues exclusive of water sales to West Texas Utilities, interest income, and intergovernmental operating grants of the Water and Sewer Fund (see Exhibit K-3). (2) Includes operating expenses of the Water and Sewer Fund exclusive of depreciation and amortization (see Exhibit K-3). (3) Excludes bond premium amortization of$79,753. 113 L EXHIBIT L-12 Debt Service Requirement Principal (3) Interest Total Coverage $1,075,000 $ 2,948,989 $4,023,989 1.36 1,150,000 2,899,583 4,049,583 1.14 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 EXHIBIT L-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) 1992-1993 98,600 $ 27,089 13.1 15,608 5.8% 1993-1994 99,500 28,437 13.1 15,892 5.9% 1994-1995 101,155 29,527 13.1 15,793 5.1% 1995-1996 102,790 30,142 13.1 ' 15,805 4.3% 1996-1997 103,312 31,148 13.1 16,606 4.4% 1997-1998 104,121 31,165 13.1 16,382 4.7% 1998-1999 106,000 34,342 13.1 14,780 4.4% 1999-2000 107,178 35,029 13.1 14,084 3.9% 2000-2001 104,197 35,961 13.1 13,896 3.7% 2001-2002 104,544 36,824 13.1 14,059 6.3% Sources: (1) City of Wichita Falls Planning Department for all years, except 2000-01 from U.S. Bureau of Census (2) C.A.C.I. Marketing Services 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 114 EXHIBIT L-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 * 1992-1993 $2,217,963,473 $ 50,774,737 Not Available 1993-1994 2,259,585,776 71,208,827 Not Available 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 Sources: (1) City of Wichita Falls Accounting/Finance Department (2) City of Wichita Falls Planning Department * Local branches of Bank One, Norwest, 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. 115 EXHIBIT L-15 CITY OF WICHITA FALLS, TEXAS MISCELLANEOUS STATISTICAL DATA (UNAUDITED) SEPTEMBER 30, 2002 Date of incorporation 1889 Form of government Council- Manager Area 71 square miles Miles of streets 542 Number of street lights 7,457 Fire protection: Number of stations 8 Number of firemen and officers 148 Police protection: Number of stations 1 Number of police officers 136 Municipal water department: Number of consumers - active 33,333 Average daily production 21,700,000 gallons treated water Miles of water mains 635 Sewers: Number of customers - active 29,039 Miles of sanitary sewers 516 Miles of storm sewers (enclosed) approximately 109 Building permits issued: Number issued 9,177 Amount issued $112,934,860 Recreation and culture: Number of parks 40 with 1,200 acres Number of golf courses 4 Number of libraries 1 Number of volumes (books) 150,686 Employees- full-time 1,079 116 EXHIBIT L-16 (Page 1 of 5) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) SEPTEMBER 30, 2002 Insurance Code A Policy: Building and Contents Company: Barnard Insurance Group • Policy Period: October 1, 2001 to October 1, 2002 Perils: Fire, Extended Coverage, Vandalism and Malicious Mischief, including Difference in Condition, Extra Expense, Valuable Papers, EDP, Demolition/CC Coverages: $69,946,340 Building and Contents $100,000 Extra Expense Deductible: $100,000 Coinsurance: Agreed Value, Replacement Cost Premium: $66,900 B Policy: Boiler and Machinery Company: Texas Municipal League Policy Period: October 1, 2001 to October 1, 2002 Perils: Comprehensive Blanket Coverage: $5,000,000 Per Occurrence Deductible: $1,000 Coinsurance: N/A Premium: $4,989 C Policy: Electronic Data Processing Equipment Company: Barnard Insurance Group Policy Period: October 1, 2001 to October 1, 2002 Perils: All Risks Coverage: $1,687,210 Deductible: $5,000 Coinsurance: 100% Premium: Included as sublimit under property coverages D Policy: Excess Workers'Compensation and Employer's Liability Company: Claims Administrative Services, Inc. Policy Period: October 1, 2001 to October 1, 2002 Perils: Workers'Compensation - Employer's Liability Coverage: Catastrophic Protection Beginning at$250,000 up to Statutory Limit$1,000,000 Employer's Liability Deductible: $250,000 Coinsurance: N/A Premium: $31,166 117 EXHIBIT L-16 (Page 2 of 5) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED)(CONTD.) SEPTEMBER 30, 2002 Insurance Code E Policy: Airport Liability (Municipal Airport) Company: Marsh Aviation Policy Period: March 17, 2002 to March 17, 2003 Perils: Owner's, Landlord, and Tenants Liability Coverage: $1,000,000 CSL Deductible: $1,000 Coinsurance: N/A Premium: $2,816 F Policy: Airport Liability (Kickapoo Downtown Airpark) Company: Marsh Aviation Policy Period: March 17, 2002 to March 17, 2003 Perils: Owner's, Landlord, and Tenants Liability Coverage: $1,000,000 CSL Deductible: $1,000 Coinsurance: N/A Premium: $1,925 G Policy: Hangarkeepers Liability (Kickapoo Downtown Airpark) Company: Marsh Aviation Policy Period: March 17, 2002 to March 17, 2003 • Perils: Hangarkeepers Liability Coverage: $1,000,000 any one occurrence $500,000 any one aircraft Deductible: $1,000 Coinsurance: N/A Premium: $4,500 H Policy: Products Liability(Kickapoo Downtown Airpark) Company: Marsh Aviation Policy Period: March 17, 2002 to March 17, 2003 Perils: Products Liability Coverage: $1,000,000 Completed Operations Unit $1,000,000 Malpractice Aggregate Limit $1,000,000 Each Occurrence Limit $100,000 Fire Damage Limit Any One Fire Deductible: $1,000 Coinsurance: N/A Premium: $2,375 118 EXHIBIT L-16 (Page 3 of 5) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED)(CONTD.) SEPTEMBER 30, 2002 Insurance Code Policy: Public Official Bond Company: Fidelity& Deposit Company Bond No.: FD 09688496 Bond Period: June 27, 2002 to June 27, 2003 Insured: City Manager- Jim Berzina Coverage: $25,000 Premium: $100 J Policy: Public Official Bond Company: Fidelity& Deposit Company Bond No.: FD 30237391 Bond Period: August 1, 2002 to August 1, 2003 Insured: Purchasing Agent- Margaret Elizabeth (Peggy) Gahagan Coverage: $2,500 Premium: $100 K Policy: Blanket Employees' Dishonesty-Theft, Disappearance Coverage Company: Fidelity& Deposit Company Bond No. FD 02897925 Bond Period: January 15, 2002 to January 15, 2003 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: $1,667 L Policy: Public Official Bond Company: Fidelity& Deposit Company Bond No.: FD 30523655 Bond Period: October 1, 2001 to October 1, 2004 Insured: City Clerk- Lydia Torres Coverage: $25,000 Premium: $100 M Policy: Public Official Bond Company: Aetna Insurance Company Bond No.: S 10084654 Bond Period: August 6, 2002 to August 6, 2003 Insured: Director of Public Works - George Bonnett Coverage: $2,500 Premium: $50 119 EXHIBIT L-16 (Page 4 of 5) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED)(CONTD.) SEPTEMBER 30, 2002 Insurance Code N Policy: Public Official Bond Company: Aetna Insurance Company Bond No.: S 100841241 Bond Period: August 24, 2002 to August 24, 2003 Insured: Municipal Court Administrator- Judith Elaine Bourgoin Coverage: $2,500 Premium: - $50 O Policy: Public Official Bond Company: Aetna Insurance Company Bond No.: S 18072205 Bond Period: February 15, 2002 to February 15, 2003 Insured: Director of Finance -Jim Dockery Coverage: $25,000 Premium: $125 P Policy: Public Official Bond Company: Aetna Insurance Company Bond No.: 71 S 100648903 Bond Period: May 21, 2002 to May 21, 2003 Insured: Municipal Court Judge- Larry Gillen Coverage: $2,500 Premium: $100 Q Policy: Health Insurance _ Company: J. Allan Hall &Associates, Inc. Policy No.: City of Wichita Falls Employee Benefits Trust Policy Period: December 1, 2001 through November 30, 2002 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: $322,350 120 EXHIBIT L-16 (Page 5 of 5) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED)(CONTD.) SEPTEMBER 30, 2002 Insurance Code R Policy: Dental Insurance Company: J.Allan Hall &Associates, Inc. Policy No.: City of Wichita Falls Employee Benefits Trust Policy Period: December 1, 2001 through November 30, 2002 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) S Policy: Life Insurance Company: TMRS Policy No.: Not Applicable Policy Period: October 1, 2001 through September 30, 2002 Perils: Death and Dismemberment Benefits Deductible: N/A Premium: One Times Employee's Annual Salary T Policy: Life Insurance (Directors Only) Company: Pilot Life Insurance Company Policy No.: 0548 (Group#1) Policy Period: January 1, 2002 to December 31, 2002 Perils: Death and Dismemberment Benefits Coverage: $25,000 Deductible: Premium: Annual Estimate $338 121 ed �1 V - GRAPHICS EXHIBIT M-1 CITY OF WICHITA FALLS , TEXAS CASH AND INVESTMENTS 200 --`" 160 qqq: �Y YYYYY 'fYY,K ,*`x, k>M 0 •f2x'00 E / ' 000000 100— k 60- }.(� tiw {..'':'.l' W*00';s`£ (' ff�'z'''V V-`�``gi''' �iK r(:>i�z�z`0**(*000.p{e. : 000-�L:�'z(1�.(�z t{000' :•C, ,, ''C''G `g 4 K sw3'-..•Ns.Yq{Y `i7.**o h 'mo YY .Ygo******.,o * 'C `�`�KY',Y K•fY {f4Ym*Wti 40— *tiff**** ***** W0000000* M06 ,z,0,0; g f 00A0 1998 ***_.*` ** K,,�z .'r0*ar;7 :7x ,4 �z: tg ,z0 r:, 2000 '� . *****,*** s; September 30, 2001 2002 (UNAUDITED) 122 EXHIBIT M-2 CITY OF WICH ITA FALLS , TEXAS TOTAL BONDS PAYABLE 200 f i4 YM+';,Trr + +++++++++++fff4f4+ff++++ri**+++4riri*+444,. 4#44444+14#if#4444#4� • 44#4########444#i#4#, iiiiiii:1+++++.41++++:11 '+.+.++y+.,ky4#+4444#44##44#4444#+#44444.+.#+444#4444! . +##4..4+4#.#+*44444+f+ TT4444{**##444.++++.44a444 4.4.4'T Tt♦f+*4ff44+44*+ii4#4++ 4++4444**444'* r4444 ++++++444+++4+4a44##44444444444a 44�4�*4**++{*++4*+*++f*4*444i444*4*4*4*4*a +++*+*4*4*4*r*+*4*4*ti4*44444+#44f#i+rr+#riff#4#4444 4444#4t+.4+i44i44*#*#*#*+*i*4*4*+*+*4*.*i****r4+*4*444# 4444**+*t**A4*4*t*t*t*4*+ ++ .....t *4O*i*+4+*r*+*+*4*i*f*4*+*..x+.4*i 4.4*4*i*+*4*r**44444+4+++*4+44!4+* + +*�4�++++�4+•++�4+r�4+4�++r+4+4+4++4� #44..4�##�#�4�4�r�+�*�*4++�4�4�++*#�{ 1 50 —/ 4*4*4*4*4O*4*4*4*4O*4*4*4#♦++***+*++4++1 +*++++++4***+*444++++*++:++++*+*4+++++++ + +++*4*4*#*4444#*#*4*+*4*4*++#*4+4+tti+r*4 444+*444*4*+*+*4*4*4++*4*4*444+#4444++*+ F4 +++++++++*+*+!++*+*+*+*+++++!+*+*+++r+4+ +++++++*+*+++*+4+4+*+4++++4+++*+++++++++4+,'} ++++**+++++++++++++++++++++++!+4++++*+4+ +++++++++++++++++++++++++++�+++++++. +*4*4*O*+*4444+++ ++****+ +*+*+*4444+*+*4*4*4*+*4*+**00*+*40*+* `'`` 0 *+44444+++ + + +++++++++444+++++++4 ! - ++*44444++{ + *+ 444+***444444ii4+*+4 4##*+44444{ 4� 44.r#4#44444#44444# h - 4i4+4+44+++ 4 4+ +*++t++4+4444*#+,+r4 _+*+*+*+*+*+*+*+*+*+*+*+ 4444 *+*+* *+**+*+*i+*+*+*+*+*+*+*+*+4*+*+*+*4* 4+4+4+4+4+4+++++++++4+!hh4 i{ +*#+ **4�*4444#*4*4*4*4*M*4*4*4*4*i*4*4 44ir+444++i* 44 4t 4444+.+*###+#44#44 F E - - ' *i*4*4*+*4+++i4i+4+*4+*+i++++3F�+4*4 +*444*t4*t*t*444+*r**4*4*4*r*4*#*4 t+ ♦f+++4444+++*+{+ ++# ++{+t { ft4+444+ 444+4444+4+4+4+++4+4+++.444+++**+*+i�+ x ++******* ++{ t+*+*444+#+s4�#++ i. ♦if+++++++++44444+++ 4444 +{+{�{4 ++++t 1 00 *4*4*#*i*#*+4444*444*+$14*4+*+4*4+#44a X 4*4*4h {*4++*{*+;F*4**4*4*lI f*r*4+4r4+i+4+4+++++4+iri4++4+ir44444+4+a X *4*4*****4+4*4++4 4*4**44*4f* i i*4***+r++4+++4*444+4*4*4*4*4+4*4***4444# X *y#.++++*++*++++++++*+*+++4+{4444# `/ *4*4r*+*a+++4444*4+**++*4*4*+*i*4*4*4a #Y'Y*+!F*4#+#+++#++*++4*4*+++!h*4 ti+i+i+itifi*i+i+i+iti+iti4i+i+ifiri4i+ii i++i4i++i*i+i4i*ifi+ifi4i+i+i+i4i+ ¢i tf++t.i+t.t+tt*+1++4a 4!F+*!F+*+++**4+**4+ 4i+ifitifi*i+itifiti{ifi4+i*+444+*+** +4+444***f*+t4t4t44+r++44444+*++4+4 } L. +*++*++++++++++++++{+++++i+t*#*#++ *4**4*4*4+4*4*4*4+4*4*+ii+4**+*+4444 /� 4+ +*++i*i+i+iii+i4i+i4i{it+fi+i+i+i4*4ifi# ....*i+r+r+4+4+4+4+44+*444+4+rr4#4+�a* co y +r F�i 44!`1 Ti y- #+#+ 4**mv4444444+*+4++4r 444 **4*r*t*4*44r*4*4*i*4*444*i*i*4*4 + 4444 4'4'#T�:4+++t+1 y ..i«ai a e e i a+++�- **}*+*+4444i444+44}444*+*+4444*+*+! 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!h+*+f*�i*y+*+*+*+4,+4}+ii }*+4444+444**4*4444**4*+*+*4*.*4*#t*4$ *+*444f444*4*4444*f*4*4*r*.$4*+*4*1"+'+ *4*4*4*4*4*4*4*4*4*#*#44444*r*f*4*4*4*i*�-'�¢a +4;*+*#*+*++#i+i+ i+*4*4Q*4*4*4! 1*4**F*#!F 4444******T+4+a +{+!F+*+{*++�!f+{44 4*+*4+**`44 4*4*4*4*4#*+*#*#*4#*4*+*+*#*4*4*4*{+rt#� fi4if444444$444#ii##*444+4ifi444+44444, +� T 444++#fii.f#4444 4444.'a 0 _ •yy.+.4a 4#!* *a Y4*4* +4}f 44t*+*4*4*4*4*�*!4a 4*4*4*4*4*4*4*r*4*4*4*f*4*4*.*4*4*4+ 4*4*4*4*4*4*4*4*4*4*4*4*44*r*f*4*4*4*4'� *i4iiiy yi`ii�+4a *+*+*+*+++*+**i*+.4*++*++*+*++++i+i+� F++*+*+*++i*+*+*+*+*+*+*+*+*+++*+++ii } ++*+++++*+*+*++*+*+*+++*++++++**+4+++++4 p4' h+i t++++4+4+4+++++4+444+++4+4+++++++4+4+*i M+4+4+#+4+++++*+4+++++++4+4+++4+4+4+4++ ++4+4+4++++4+*+*+**++}++{+ 4*4r! �y ow ell,,,,..,_ l+i44444f+f+f*f*�*�*i+f+4+i+4+4�4+i++ * f h*i*4+4+++4+444+4*�*+*4*4*4*4+4*f*f*4+4++*1 rvL 1998 f4fifyf+i4iiiiiiiriiif*iifiiri4iifii *+ 'h4fifififif4fifififritf*irisi#f4i4itisf4f4a ,< #.+yy++i+f444+f4 Mh � 444#44444#44.4444.444 � , 1999 .•+y+++ ++++, h4f444s###sss#+444#++� r .f.+a yi*i�+y}y+'s. }*#*f*44444*{*+*{*##+*.*#*#*f+f++*+*4*i*+*j ± F++a+�+4+4444+444444444i+41444+4i i.f�7jif�f�4�i+4++*f*4*4+a; 2000 4 i+4y4f*i 2001 2002 September 30, (UNAUDITED) 123 EXHIBIT M-3 CITY OF WICHITA FALLS , TEXAS GENERAL OBLIGATION BONDS PAYABLE 25 20 —/ .. +. . . 1 5 _______—i.i***'*it.77'.1..fii::L''''''<;t::;. .::::A'4.. .:::4 ..,e,...4•44:44...4:im...t.t444 4,,,4.:4' 4. C +#4 X4 t *+:•*++++0 t + �, r"4 'fit i +#44 +� /11 * '* *4+4 * + .04a �:*f. +4�4 +t +.044+4++4+t+++4 #4 i.4$ t U 10 .*+4+*+itr*f+ *fir *, �++�ia++i4*4 4t++4+*+4*+++4 ++'#+� ii Q ** 4+++44+4+*+++++,i.r.+i�+4 i4 i it';t t«t;'a+4+++4+4+*++4 +*+#*+ +4+4 ti lv% 14 7 a It I ktitalt+;4$ Ittli4:4,3e71 ittiliff++40 ''''''' linfig 4 L.:.:i+++:!+I+1 gi ; # tli +4 ' 4 '� 44 +*:'+4+4+44+*+t•+4 +4++*. 4+* -t+ .�F+4 +4+4+4 vp ,441,14++1, ,. t + * t *+ t ++4+4+E * ' 2 2' + + 4+ +�.*a�*a4y 4#+i � '+4+4+4*44*+44+4+44 t* • + + i++4 t t++ i4 • :*+ ' Z. * s..S.s. ss66 — 2000 a �' September 30, 2001 2002 (UNAUDITED) 124 EXHIBIT M-4 CITY OF WICH ITA FALLS , TEXAS REVENUE BONDS PAYABLE 20c —�� 175 —/ ----- *:44 * i ++44. *#*i t*i i *i+r�Y+i w.,,..4.44..4f. 4:4 O 12 5 oa*i�f**i+i+++++f+++4+i{F*�F;.Fi;F 4+*+ F F F -+ *#*+++. +4+++++s�+ ��r+ + +fir+*+ '.r�+'`+ *+**t+♦4� +++++++++i*+++ 4* �} +iyi: !i.'::1:1 cn E >>:4�t,�4 i y + ..... 4RfiV- +� L / +++*+4A 414319 t+++4++++++*+++*+* ` + _(13 +rr0 .rr ♦rr♦ rr ++++ t+#4+++#+4 0 + 0400++0.4+4 Q _..._- ++++t *+t*++4++++4 * -+4 k ++++4* + , .+.a++ss aa++ i� #� 0 + r'�+i 4 +++ + ++*4*:44+4+4♦ti++4+4+4+ **++**� ♦�+.i�•� +� *�: 50 —/ .++h �+++ +iA 4 tiii+++e?++++�F+++i# +t {fthY eYT +!T +T++T�i ii��ii��4io'�i��i4�0'i��i4�� o T� +.+.�4+a+*++s++a++�'++++++ +� �. �+r*+*r*r*+*r*+*4*4*r*i+�*i+�*+*+0++4+i+ 44 i�i i�ly�� +�i�F4+++i+F4'�F4+;F44 4�F F++ �5' ,G.G ;�#F +•+• a++4a4� 4�+,*++•�} *_„+*+*++r+r**r*+++T+4*+++++++++ *+ 4Q'++y4*�F + 0++.4.t4t*++4* +4 +++ -, t1{r• .t+ i+4 .+44S_*:::::+++*'+F++++++++++40+r+r+r++ t + Tt-'ti4 x+x *t*ia.+ytr++400 +� 44*4 *i � �.'�+4�'0y+4�+#i+.� ++s 4y#+#+#+4 +* +4+# 4 + 4 t4 « 20 _ 4*+#'+�' �j t4+4 4 4 4 4 icy+4+ r 0+.+.04++4+++i+r++4++++++s+++++4+4*+4 i +�4 4+#++ +++�iyi�i�4+ a+: +*4 + *++ #+Y+4 +++ff*i+ T+-�4*++*•t t �^ �.#1f t#+# +i+#+ +#+4 t+4+44#t+i`�«'4++4#r#r+`+++++#+# '� „.$5„..4„:„..„:. ++ *+ **4 *4*** **+; ' r*`+�tYtt++t44o .�. 4 0*.§ 44 04 . 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R'.$+.zail.tW•t*:::*.Nt; .4.404 .%..ow. 4/..Aftistt*,4,4002.4..0..4, Wf+ r„..++.,..+04,,,...:• 4 Health ++r +:+�- '' 4% '` Public Works 28% (UNAUDITED) 129 EXHIBIT M-9 CITY OF WICHITA FALLS , TEXAS GENERAL GOVERNMENTAL REVENUES (GENERAL FUND ONLY) 45 -------- 40 ------- zar} 4 ` +:,X++ / :{}::+}::i}:}:::;fyt� 'r',:t +*444 *+*+tl+*4 3 5 — • •��: iM ++��+; 4v *'+O*a*#o 4' ::.,+ #;#*I ♦•44 +♦ }44444}# 'f 4# 441+.A.4 f a .�i +a*+i*�t'G44*4tf`4�i 4�+���+�44+: .; 4i **+♦,*yiE ` .. +4 *+4 { +4*4;F44�4ii�F.K. 44+++44444 0":-.�Ff4 444+4{a*404'4:41 a4i}4T+Ti }4i **+4+i4 y +.4..€ }44 Y — ` .44,44:fX+*+4+*+�4+TF44+ +rt 4+' t+`+ 44+� 4444 4i*4*4*# .. 4i ++4444 44tF1 4f 4* +!#4 s}� +*+*r4r r4 *+4+'t4+444+4*i + 4i +4+ + 4Y441 + 4444± *4+4+44444*f 44i f ,..1.4k +4 *++4f f 4• (n 2 n — *4444 ii*4*a f4++ ♦i� ! *r4*r 4* 4* 444 +444 4 + '4 4 44444+:♦ 4+ 444:y4444 444 4444 T4+ L+ #*� 4*#*#*#4*+}#++4 4 +* y 444, :4444 *a CO +++}++ +.+« .+ +444 4 } -wT4*+*+++� 44+++44444++++:*1 4*O+ + +++: 4i14 444 44+41 *♦4 4 + +i*+++*+f f4ff a� i 44 4 �r4 + +4 t +a+ 44444:*+:♦+ ! + a �♦•� 4 4444 4 }++*r4 r r r r4S 44444+:f��fT444'*4*1 }*+}4:+4:4�++r+ f44 r 4 r 4444++: ### ! ;Flfa 4 Y+*i +*+*+* 44+:+:}:}4 +}4444+44444+: +4a� r 4 4 #4♦4 4++ ♦+ }+++++++ +i 4+44444++:+::•+y _ 4##+*at 4 4A ♦♦4 1 444+} 44*r+*4*44444♦ ++f444f44+i •++++4444+♦, ♦4*#$1:44 4 #4444#4i#♦f4+, }}4 ++ i4 ++ ++♦ ' :4 + 4444+ 4+ 4444: • 4444 +# 4444+## r4 ♦♦++4♦4i♦♦+ 4444# #+ *4*44r*4*4 *}**** 44 4♦*a;F 1}i4± .+4i:ai y <' .4.ai*f ++4 �y#♦4+y44+4 4444♦*+#4+i�4 4,'i 4 4:f:4}+444}444444 +4##♦##f�+. }*+4 4 4 i+4i # ++ # ++� + i r}i + 1 }. Sf#ter +4 TFR4}Y+ }#+ #a +*+r4#44444 *++4+4+++#f4+4+444* 4 4�y 4444# #+♦ 4 ♦ +4 + 4444: ++:+::♦44444 .}4*r 4444+ 44 4 4'r O 1 5 —/ 444Tf4 ♦:f:4#*:*:i44#:♦+ :# 444* Tit' r �i F I 4 i4 4444t1 4 4 1 f:i4444 444 #r r a #f 4 444#4444} +4+ 1 .1 7: ++ i1++ 44.X++ 1, r 4�� +++,4k.4.444,4444+ 1y 4f4#1Sf1+� 1� }*+*i*4*}*}*#4*}! 44a4�a:44f;F t� ++f4+4444 }: 44 ++ 4+♦�f4� }4:+f�a+� {1 *}«4444 + 4+4#4Y4 4 44 +4 +4«f44'4 4'41 +++++444++++++++ }4TFIffF ?I ++ +: 4 + ! 444 * 4r+ 4 4 1 4.-0:1 F y h� ` 44 �r4#t4�4tt�r44 4 4f*4:* •3'4 �'+ + r + + :• 4 4 +4 4a 4+*+*+4444 f+41 44+44+4 :+1 + r +4*4.4i� 444#*+*+ :1 :4444 +i +*+4*+:444444 ++ * 4+r 444444+ $ 0: k4 4 r+ +i 444*444+4444+ .} 4*444 a���Q 4 4444# f44+r ++++i 44444*4�4 ♦+4� ;4 4. + F +10 /4 4444: 4444*+:+444444*, ++ *p _ ++444 '44::::*4+4` + +*4t+*:* ++*#+44444+•*44* 44: t 444+4+4+ 4 4 4 +4 A.rf + ffiff f4 +444++i+4 ; 4+4;4++4 ; 4444 444 4*+ 1 4+404+4: +2+M444444 4444444.2444+ �44 }+4}+$}+*44 * +4 4k 44444 # 4}44+14� +4# +41� �T4 4 Y:4+ 4+fTf 4Y ♦! *44+*+*4444#:i� � F� 4*++T4*44+if 4� +* �'* 4r : ** . +444 * + ** }41��4 +44#:#:}#+*:+4444+ +:444 44 * 44444#+444r*r4r 4 +4+ t'i+ 44*sif +i4♦444i ' +*+44444** 4+� +#f+ 4444 �. + r.11T 4444 4444 `444444 4 4444+444++4+ + :*:*:44444: +444`.t:44 44t+44*+4+': 4+..a� .4 +t:4+ .4. *+4+++,++ ++„4 4f 4;4� +t4 +. +444*4+4+F1F++ +44r�— ++4+:+i4+4+f4: 4 4*4*+4+*± 4F++4 :+44+ *444f�++'4 4444:: ***4♦♦+SF44♦*444+4�*4 _ 4444♦ ill .4 4i4#�#� i�* a� �'�+l� 44#+�����44#y} +#�� i�i i44 f4�l lif�i4� 1+}f` i+ 5 ++rf+ + +;14 + **4 44* +}4S 4f44444_44r:44 + 2' 44*T 444 4+44444 4* +444*: 4 j +fY 4 lit 4++ r tf.-4: �*4 -_ 44*44•of�'F:L+' 44�:4�4�}4�r4{+ +4a�1 :+44444 4++4+++ }+ 4:1 $4**4++4:4% .. ;«++# 444*4*4 4444' 44 44 * 44t 44a44+: 444 r 4}4}404. *lflff'' 4y 4141144 . ' 4Tf+4#+4+:$ } 4 4 44444+4+4' t +• 'K.' :: 22f F+1+ +* 4 44+i4 +* 4*:f1+.4* + .444 aaa4ieem .. 4} 4' •444444A1*: o _ :, 4 44 t ';++ :`41 r 44444 .t rs .4 44,44+ +#+♦f 44 41 +4 4+ F47 r : 4:444+4 + +4�+ 44 :`444+ 44444 444 �f {>f 4, • �4`+++*�F� +444 .. 4«4�r4+r444�44444++ +i4�*44♦+44�4+ i+� f 4 4�f 44 f: 1993 4 4 .4+4:4444««+4f4 4 ni ;' 444 4 y' 1994 :i t4+4+++444 444+444,.+ 4 44*4♦4 ',+! 4 #+4444♦♦++: %�4*4+r4 a 44444 4444�44+4* . .t a a+444t+y+4ti : +4 a4 + +��+4 '+ +.4#f ++t...4. *4*+*.44+4. 1995 '" ' ''° 44444+T+4++T*+a4�+.44 • 4!:4 4444♦ #} 1996 1997 4�4+�42e4L44*+ ` `F 1998 199 �f 4a 9♦ �' ..«4 9 Years Ended September 30, 2000 2001 2002 (UNAUDITED) 130 EXHIBIT M-10 CITY OF WICHITA FALLS, TEXAS GENERAL GOVERNMENTAL EXPENDITURES (GENERAL FUND ONLY) 50 ------1 45 -/1 40 I , +..>. + + +++ cn err ;. + +��°� +. :$ �OOJ4+i +; ++:4 is «+44«##++++#++' fII?I?I1 + +«+ }}+++. + 04 I *J y++ }' *i*a 14.14:::,41:1 '4t+++i+' -0 + Oa ` + + a + + + — + +t+##«r#r#r} + ii$ }+ + ter*# + + 'i, **«**:** siv + +*'Ft t i +*+*+**� ' ++ � � +'#ti* ++}+y+ IJi1JJJJJJJJJJ t'r0 +*+*#*#+ #Oi !JJJJ1+!I J+IJIJiJJJJJ+It i ;...46 �y+�+++J+00' }+�++ _2E 5 — ++'}� +4+#t +� �'r+it#++r*r♦+�0+�+'t+, y * ++ ++ ; ++ +JJJI OQ+4+� #; + + *+4+0«4ti#t}#t+#t+4 +#� * cn L / +;+� +*+�+, «*++ + +' o +++� �+y�+O#� +�+'#ir`a, 1`*i+i «�++++�++ }+++#� + +�,*t+�i gilt + �F *40�f�4*#t+�«++ a 20 - Y *+++*, ++ +++*+�+ i 0ki +* Oa*+++' Nan «+*r*i;�, + #+#i *4+*+yT +' ++ +4+'+ 00 ++ +, 4 +mot++++, it+ + r O«+#O ++i RAM *+r ++ ++ 1 4+4,44 _ + O++ #t *#+, + +:+++4} «: *+* §::: +++� +#*+*#, }+ 4 *Rai+}i, *y * *++++* ++ +*}*++* Q :1: ++}+*i 1Wj + •i*a** O + r4 :0* *+ +1: *1 ++«***++i�i> +y+++ +++ +*+� i'+O* 10 + ++ +�+ ++� } + +*'*+* ++4+O+i +}+y+t+«*+fit *, +itt + a _ «+« ' + t, + +0+4155 — .+y � �tjy! ++* $ +++++*+ +0 ?I + $ *+*#* +mot ++' - + +#+ ++' #+++T+4'S ++* + y++++ � ♦ * 4+4���Y�� i i4++ ''� + *{+ y+ifial + +*+ ++3+++*+ * + ::$ ++* ito.#!' : O , +*�«r +it+it+p +t + , + 1::1•' *+ +*1 4 ++P�t++s ++� «*+#*«.ft :ter .+ ',i*'.#t + + ill iferiiiii:. iii 444,,,, ,iiii iigIn ++,114A nitili+40 MOP Agasio kafts,A wail �r+r+ p. ;y + 4 O ,++ + �: 4 a t�t4+t �+' + irrrt;rt '� _ +E '+air+ y+}. I# ++*+ '� } iipit'::s: ri` 1996 O t.+ i++4 + 1997t.s:+.. :: ,,.. . 1998 *-4*h' 1999 ' Years Ended September 30, 2000 2001 2002 (UNAUDITED) 131