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September 30, 2001 CITY OF 1MCHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2001 ISSUED BY: DEPARTMENT OF FINANCE CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2001 TABLE OF CONTENTS Exhibit Page INTRODUCTORY SECTION Letter of Transmittal i-xv GFOA Certificate of Achievement xvi Organizational Chart xvii List of Principal Officials xviii 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, 2001 TABLE OF CONTENTS (CONT'D.) Exhibit Page COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS (CONTD.): 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, 2001 TABLE OF CONTENTS (CONTD.) Exhibit Page COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS (CONTD.): - 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 and Joint Venture Assets- By Sources K-4 88 General Fixed Assets Account Group- Schedule of Changes in General Fixed Assets and Joint Venture Assets- By Sources K--5 89 General Fixed Assets Account Group- Schedule of General Fixed Assets and Joint Venture Assets- By Function and Activity K--6 90 General Fixed Assets Account Group- Schedule of Changes in General Fixed Assets and Joint Venture 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 Fleet Maintenance Fund - Plant, Equipment and Depreciation K-14 98 Duplicating Services Fund K-15 99 Wichita Falls Economic Development Corporation —Schedule of Changes in General Fixed Assets K-16 100 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2001 TABLE OF CONTENTS (CONTD.) Exhibit Page STATISTICAL SECTION (UNAUDITED) General Governmental Expenditures by Function (General Fund Only) - Last Ten Fiscal Years L--1 101 General Governmental Revenues by Source (General Fund Only) - Last Ten Fiscal Years L--2 102 Property Tax Levies and Collections- Last Ten Fiscal Years L--3 103 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years L--4 104 Property Tax Rates and Tax Levies- Direct and Overlapping Governments - Last Ten Fiscal Years L--5 105 Ten Largest Taxpayers L--6 106 Special Assessment Collections (Capital Improvement Assessments Fund) - Last Ten Fiscal Years L--7 107 Computation of Legal Debt Margin L--8 108 Ratio of Net General Bonded Debt to Assessed Value and Net General Bonded Debt Per Capita - Last Ten Fiscal Years L--9 109 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures- Last Ten Fiscal Years L-10 110 Computation of Direct and Overlapping General Bonded Debt L-11 111 Revenue Bond Coverage - Water and Sewer Revenue Bonds- Last Ten Fiscal Years L-12 112 Demographic Statistics- Last Ten Fiscal Years L-13 113 Property Value, Building Permits and Bank Deposits- Last Ten Fiscal Years L-14 114 Miscellaneous Statistical Data L-15 115 Schedule of Insurance Coverage L-16 116-120 Graphics: Cash and Investments M--1 121 Total Bonds Payable M--2 122 General Obligation Bonds Payable M-3 123 Revenue Bonds Payable M-4 124 General Fund Equity M--5 125 Comparison of Tax Levy and Collections M--6 126 Revenues By Source- FYE 9/30/01 M--7 127 Expenditures By Function - FYE 9/30/01 M--8 128 General Governmental Revenues (General Fund Only) M--9 129 General Governmental Expenditures (General Fund Only) M-10 130 A r 5, INTRODUCTORY SECTION Wichita February 25, 2002 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, 2001. 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, 2001, 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 2000 Census places the City's population at 104,197, an increase of 8.25% over the 1990 population of 96,259. 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, were 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. The Wichita Falls Firemen's Relief and Retirement Fund was evaluated, but it did not meet the criteria of financial interdependency, and therefore, was not included in the report. This organization has substantial autonomy, separate governmental entity characteristics and is governed by a separate board. Also, it is not funded by the City, and the City is not obligated to finance any deficits it may incur or guarantee its indebtedness. ii 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. Another indicator of economic condition is income from the local sales and use tax. The sales tax rate in the city is two percent. Income from this tax increased for the City by $633,631, or 3.00% over the 1999-00 fiscal year. Residential and Commercial Expansion. The City of Wichita Falls continued to perform strongly in the area of new construction. The total value of new residential construction permits for the 2000-01 fiscal year was $27,539,620, which is an increase of $359,074 or 1.32%from the prior year. Commercial real estate transactions and new construction over the last year have also been extremely healthy. The value of building permits for commercial construction and expansion was $60,750,107 during the 2000-01 fiscal year, an increase of 55.47% from the prior year. The following entities announced expansion, new construction or consolidations in excess of $1,000,000 in value during the 2000-01 fiscal year: • Best Buy. A total of 30,058 sq. ft. with an estimated cost of$2,000,000. • Wanamaker Twenty Nine/Bundy Joint Venture. A total of 4,800 sq. ft. with an estimated cost of$2,200,000. • Cryovac Sealed Air Group. A remodel/addition with an estimated cost of$3,656,000. • Kell West Regional Hospital. A total of 23,668 sq. ft. with an estimated cost of $2,613,000. ■ North Texas Rehabilitation Center.-A total of 12,962 sq. ft. therapy pool addition with an estimated cost of$2,034,000. ■ American National Bank. A total of 7,774 sq. ft. with an estimated cost of$1,750,000. ■ Wichita Falls Teachers Credit Union. A total of 8,720 sq. ft. with an estimated cost of $1,458,000. iii • ABB Controls. A total of 50,000 sq. ft. with an estimated cost of$1,159,000. • Multi-Purpose Events Center Coliseum. A total of 147,500 sq. ft. with an estimated cost of$19,683,000. • Wichita Falls Plaza. A total of 26,195 sq. ft. with an estimated cost of$1,220,000. MAJOR INITIATIVES For The Year. The City Council has identified programs to meet citizen's requests for services and to safeguard the environment. During this fiscal year, 4B Sales Tax Corporation funds were authorized 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 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 costs for this facility are estimated to be $1.7 million. The most significant project of the year was the issuance of $118,770,000 of Water and Sewer System Revenue Bonds for significant improvements to the City's water system. The improvements are designed primarily to meet regulatory treatment requirements of the EPA and TNRCC 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 begin in 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. On January 20, 2001, the voters of the city approved the issuance of $7 million in General Obligation Bonds to partially fund the cost of a $20 million coliseum as the third phase of the Multi-Purpose Events Center. The finance plan calls for the use of approximately $8 million iv 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 to be paid annually with funds from the Hotel/Motel Tax Fund, Tax Increment Financing Fund and contractual payments from the West Texas Utilities Company. Construction began in the Spring of 2001 and is expected to take 18 months to complete. In the Fall of 2000, the City Council authorized the establishment of a Storm Water Drainage Utility System. This system, which took effect on May 1, 2001, provides a funding mechanism for drainage improvements in the city as allowed under Chapter 402, Subchapter C of the Texas Local Government Code. The system is designed to assign a fair and equitable charge to the public for storm water drainage management services including capital improvements. The fee is based upon the impervious area of all real property, whereby each residential water customer is assessed for one Single Family Living Unit Equivalent (SFLUE) at $1.50 each month, and each commercial customer pays a multiplier of the SFLUE based upon the impervious area of their property. The charges are included in the monthly water/sewer/refuse bill for collection and the proceeds are deposited into an enterprise fund to be used exclusively for drainage improvement projects. It is estimated that this system will generate approximately $1,047,000 annually. The City has entered into a cost sharing agreement with the Texas Department of Transportation for the relocation of utilities in the construction area of the Kell Freeway Project from Kemp Boulevard to Fairway Boulevard. The agreement requires the City to pay 10% of the utility relocation costs at an estimated cost of$1 million. The State is required to pay the remaining cost of the utility relocations and the total construction of the freeway. Once completed, this highway project will greatly assist the overall movement of traffic in and around the city. Another significant project undertaken during the 2000-01 fiscal year was the replacement of the City's HVAC system in Memorial Auditorium/City Hall. The new system is designed to be more energy efficient than the previous system which was over 35 years old. The total cost for this project was approximately $1.1 million. The project is guaranteed to pay for the replacement cost from energy savings and cost avoidance over a ten year period. The City has a very aggressive economic development program that includes the use of enterprise zones, tax abatement, tax increment financing, economic development sales tax incentives, and non-annexation agreements for economic development incentive programs. During the 2000-01 fiscal year, Wichita Falls has been successful in retaining and expanding existing businesses in the community. Some of the major economic development projects for the year include: Cryovac, a division of Sealed Air, announced in November of 2000 that it planned to convert a warehousing facility in Wichita Falls to manufacturing to take advantage of a new fast growing market in food packaging. The industry began operations at the new facility in 2001 with approximately 70 new jobs. Additionally, there are plans for future expansions. v MagicAire, a division of the Carrier Corporation has manufactured air conditioning equipment in Wichita Falls for over 50 years. In the fall of 2000 they announced that Carrier Corporation asked them to begin manufacturing a new air conditioning unit to be used in high-rise office buildings. This new contract will create 15 jobs, five of which will be in engineering and design. Cingular Wireless (formerly Southwestern Bell Wireless) began receiving their first customer service calls in October of 2000. The company built a 100,000 square foot, two story office building in the heart of Wichita Falls' emerging commercial corridor. Customers with wireless telephone service call the center when they have questions about their bill, credit terms, or their telephone system. Total employment for the company ranges from 650 to 700 full-time equivalents. ABB Controls announced in February 2001 their plans to expand production of low voltage motor control products at the present location. The planned improvements include $1.2 million in a facility expansion and $1.1 million in additional production equipment. It is estimated that 27 new jobs will be created through this economic development project. Wichita Falls Refurbishment is in the process of expanding its existing facility primarily to participate in the manufacturing and assembly of the ST5 Generator. At a minimum, the industry has agreed to an investment of$500,000 and the creation of 12 to 49 new jobs. EMD Engineering announced plans in 2001 to expand their local operations with new capital investment associated with an 8,000 square foot facility expansion and the creation of up to 20 high paying jobs. For The Future. The City Council recently authorized a contract with an engineering consulting firm to assist the City in the planning and acquisition of an integrated public safety communications system including two-way radio, Computer-Aided Dispatching (CAD), Records Management Systems (RMS), and Mobile Data Wireless Communication Systems. The consulting fees are estimated to be $431,000 for three phases of work. Phase One includes updating the needs assessment for the Police, Fire, & EMS radio system; assessing the needs of the City's CAD/RMS, assessing the need for Mobile Data communications, budgetary cost estimates for potential new systems, and development of an implementation strategy for the new systems. Phase Two includes the development of Requests for Proposals, proposal solicitation, vendor evaluation, and contract assistance, as required. Phase Three offers implementation assistance, performance evaluation, and final system acceptance. The cost of this consulting work and new system improvements will be funded with 4B Sales Tax Corporation funds. 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 vi 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. The City recently joined approximately 100 other cities in Texas in an aggregation project for the purchase of electricity in the deregulated electric market that took effect in January 2002. By combining the electric loads of members' electric utility accounts, the City of Wichita Falls was able to achieve volume savings in the purchase of its electricity. It is estimated that the City will save approximately $375,000 annually in electricity costs when compared to the price to beat rates offered by the incumbent utility. Another electricity savings project that was approved for funding in the 2001-02 budget was the replacement of the red and yellow standard filament traffic signal lamps at all of the city's 125 intersections with Light Emitting Diodes (LED's). These LED indicators use 85% less electricity than the standard filament lamps resulting in a estimated three year return on investment from electricity savings. The green lamps at some of the city's intersections will also be replaced with LED indicators during this fiscal year if funding is available and the cost for the green lamps proves to be cost effective. 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 vii September 30, 2001, 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 $43,409,254 in the 2000-01 fiscal year, an increase of 3.78% from the 1999-00 fiscal year. Much of this increase is due to increases in ad-valorem and sales taxes as a result of the continued growth in the tax base and strong retail sales activity. Additionally, franchise taxes received from the local gas company increased significantly from the prior year due to higher fuel prices and a colder winter. Revenues from licenses and permits have decreased from the 1999-00 fiscal year, but this decrease is due entirely to the timing of payments from telecommunication providers for use of the City's right-of-ways as a result of the implementation of House Bill 1777. A reduction in revenue is also reflected in Fines and Forfeitures due to a reduction in fines collected at the Municipal Court. Increase General Fund Percent (Decrease) Revenue Source Amount of Total Over Prior Year Taxes $36,944,112 85.10 $1,842,082 Charges For Service 1,783,301 4.11 49,749 Licenses and Permits 1,892,099 4.36 (127,557) Fines and Forfeitures 1,259,742 2.90 (158,149) Intergovernmental Revenue 33,319 .08 (13,666) Contributions 32,901 .08 32,901 Miscellaneous Revenue 1,463,780 3.37 (44,759) TOTALS $43,409,254 100.00 $1,580,601 Assessed valuation, which is based upon 100% of market value, was $3,173,057,900, an increase of 3.90% from the prior year. The total property tax levy for the 2000-01 fiscal year was $16,791,261. Current tax collections totaled $16,365,706 or 97.47% of the total levy. The ratio of total collections (current and delinquent) to the tax levy was 98.19%. Allocation of the property tax levy by purpose for the year ended September 30, 2001, and the preceding two fiscal years was as follows: Purpose 2000-01 1999-00 1998-99 General Government $14,686,254 $14,006,613 $12,424,274 Debt Service 2,105,007 2,108,944 2,101,875 TOTALS $16,791,261 $16,115,557 $14,526,149 viii 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, 2001, was $.55194 per $100, which means that the City has a tax margin of$1.69806 per $100, and could raise up to $53,880,427 additional tax revenue a year from the present assessed valuation of$3,173,057,900 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: Increase Percent (Decrease) Function Amount of Total Over Prior Year Administrative Services $ 7,263,876 16.45 $ 283,676 Police 13,293,997 30.09 134,596 Fire 8,412,257 19.04 44,795 Parks and Recreation 3,059,595 6.92 (12,789) Finance 1,489,661 3.37 158,229 Community Development 1,102,205 2.49 43,620 Public Works 4,408,476 9.98 (1,390,672) Health 2,080,081 4.71 29,168 Traffic and Transportation 1,707,211 3.86 153,227 Capital Outlay 1,365,232 3.09 1,220,444 Debt Service 0 .00 (2,811) TOTALS $44,182,591 100.00 $ 661,483 Expenditures in the General Fund totaled $44,182,591, an increase of 1.52% from the 1999-00 fiscal year. Some of the major expenditure increases when compared to the prior year are: (1) the Administrative Services Department incurred considerably more expenses than in the prior year for outside legal services to defend the City in personnel related lawsuits; (2) the Finance Department experienced higher personnel and maintenance expenses due to a reorganization that resulted in the transfer of technical support personnel and computer related expenses from the Police Department to the Information Systems Division; (3) the Traffic and Transportation Department experienced higher costs for street light electricity due to the installation of higher wattage lights on the Broad and Holiday Overhead and fuel surcharges; and (4) Capital Outlay included costs associated with the replacement of the HVAC system in the Memorial Auditorium/City Hall. One significant reduction in expenses is reflected in the Public Works Department because expenses for two fiscal years of street resurfacing projects were accounted for in the 1999-00 fiscal year and funds were expended in the prior year for the City's matching fund requirement for the State's Barnett Road Reconstruction Project. ix General Fund (Fund Balance) The General Fund had a total fund balance as of September 30, 2001 of $10,078,464, a reduction of$177,887, or 1.73% from the prior year. The unreserved fund balance ended the fiscal year at $8,750,034, a reduction of$1,037,804, or 10.60% from the prior year. Much of this reduction was due to the planned use of fund balance for the installation of the new HVAC system for the Memorial Auditorium/City Hall that was mentioned above. 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 $1,116,968 compared to $1,087,649 in the prior year, an increase of 2.70%. Expenditures from this fund are for programs designed to promote tourism in the community. Expenditures were $938,047, an increase of 13.59% from the prior year, primarily because a higher contribution was made to the Multi-Purpose Events Center. The City Council also approved the transfer of$441,353 of Hotel/Motel Tax Funds to the MPEC Coliseum Capital Project Fund. Total fund balance of the Hotel/Motel Tax Fund was $631,025 as of September 30, 2001. 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 2000-01 fiscal year, financial activity of these funds remained relatively unchanged from the prior year. 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 decreased considerably from the prior year primarily because the 1999-00 fiscal year included significant intergovernmental revenue for the purchase of Kickapoo Downtown.Airpark. 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 2000-01 fiscal period, expenditures from the Capital Projects Funds amounted to $3,528,102 principally for the Multi-Purpose Events Center Coliseum Construction Project. Fund balance in the Capital Projects Fund as of September 30, 2001,totaled $20,640,008. x r PROPRIETARY FUNDS Water And Sewer Fund The Water and Sewer operations for the past three years are presented in the following tabulation: 2000-01 1999-00 1998-99 Operating Revenues $ 25,647,505 $ 20,415,672 $ 21,371.568 Operating Expenses 17,577,690 16,825,909 16,806,193 Operating Income 8,069,815 3,589,763 4,565,375 Nonoperating Revenues (Expenses) (1,143,656) (624,611) (1,149,813) Operating Transfers (2,876,799) (706,015) (702,762) Net Income $ 4.049,360 $ 2,259,137 $ 2,712,800 Operating revenues in the 2000-01 fiscal year were significantly higher than in the prior year because rate increases were approved in October 2000 and again in February 2001 primarily to begin generating revenues for debt service requirements of the Series 2001 Priority Lien Revenue Bonds that were sold in September 2001. Operating expenses increased by 4.47% from the prior year primarily due to (1) increases in personnel related expenses associated with certification requirements of the TNRCC; (2) overtime expenses to address increased demand on the water plants and water distribution systems; (3) increased costs for central garage services; and (4) electricity expenses. The increase in operating transfers is due principally to the transfer of funds received from the West Texas Utilities Company to the MPEC Coliseum Capital Project Fund. Golf Fund The Golf Fund was established in January of 1997 to account for operating revenues and expenses of the Weeks Park Golf Course. Operating revenues of the Golf Fund for the year ended September 30, 2001, were $768,083, a decrease of $21,539, or 2.73% from the prior year. Operating expenses for the Golf Fund were $732,682, an increase of$17,762, or 2.48% from the prior year. The operating income for the fund was $35,401 and the net income was $27,083. Unrestricted cash and cash equivalents ended the fiscal year at $172,615. Municipal Airport Fund Operating revenues of the Municipal Airport for the year ended September 30, 2001, were $375,449 compared to $329,533 in the prior year. Operating expenses were $334,924 compared to $358,154 in the prior year, a decrease of 6.49%. The primary reason for this decrease in expenses is because the roof and ceiling tile at the terminal building were replaced in the 1999-00 fiscal year. The operating income for the fund was $40,525 and the net income was $29,559. Unrestricted cash and cash equivalents ended the fiscal year at$231,807. xi Kickapoo Airport Fund This fund was created during the 1999-00 fiscal year to account for the financial activity of the Kickapoo Airport that was purchased in June 2000 from the private sector. The first complete fiscal year of operations for the fund is reflected in 2000-01. Operating revenues for the fiscal year were $327,583 and operating expenses were $291,642, resulting in an operating income of $35,941. Net income for the fund was $36,625. Unrestricted cash and cash equivalents ended the fiscal year at $125,614. 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 from passenger fees totaled $202,180, an increase of 14.58% from the prior year. Operating expenses were $1,110,261, which is an increase of 14.04% from 1999-00. Much of this increase in operating expenses was due to higher supply and maintenance expenses for the bus fleet and higher workers compensation costs. Although this increase in expenses resulted in a higher operating loss than in the prior year, a significant increase in funding from the State allowed the City to reduce its operating subsidy by $84,110 from the prior year. Sanitation Fund Sanitation revenues for the year ended September 30, 2001, were $8,412,122, a decrease of 2.99% from the prior year. Much of this reduction was due primarily to a reduction in rates for residential curbside customers in response to lower costs resulting from the curbside automation collection program. Operating expenses were $7,078,065, a reduction of $1,005,506, or 12.44% from the prior year. This reduction is primarily because costs associated with a new landfill cell liner were incurred in the 1999-00 fiscal year. The operating income for the fund was $1,334,057 and the net income was $1,303,618. Unrestricted cash and cash equivalents ended the fiscal year at $7,976,670. 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 revenues of the System as of September 30, 2001 were $388417. No expenses were incurred. 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, 2001 were $6,791,693 compared to $6,039,562 in 1999-00 fiscal year. xii 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, 2001, were $291,322 and operating expenses were $248,596. 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, 2001, were $5,728,528, an increase of 5.85% from the prior year. The increase in revenues is principally due to an increase in reimbursements from a third-party stop loss insurance provider for individual health claims that exceeded the maximum claim amount during the contract year. Operating expenses in fiscal year 2001, were $5,265,834, a decrease of 1.12% from the prior year. 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, 2001, totaled $19,215,000 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 e 2000-01 fiscal year were as follows: Ratio of Debt Net Direct To Assessed Debt Per Bonded Debt Value Capita $19,019,227 .60% $183 The current underlying-bond ratings are as follows: Moody's Investors Standard & Service Poor's General Obligation Bonds Al AA Water and Sewer Revenue Bonds A2 A+ xiii 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 2000-01, 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, 2000. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of a state and local government financial report. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. Acknowledgments Our 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 xiv 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, t: Jim Dockery Director of Finance xv 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, 2000 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. ap�Er 4�!E THE F9f w 2 AWED STATES N (\\�/ W� AND `.r =l �1NA0F Pr sident 6W 4 CORPORATION if yob c�:.�.", �j CNICL6C Yil Executive Director xvi CITY OF WICHITA FALLS ORGANIZATIONAL CHART I WICHITA FALLS I CITIZENS i COMMISSIONS CITY COUNCIL E HI CM/ENS BOARDS I I DGE CMNICIPALOURT J I CITY MANAGER J I CITY ATTORNEY I I CITY CLERK J J1 I TRAFFIC AND FINANCE ASSISTANT CITY ADMINISTRATIVE HOUSING do HEALTH TRANSPORTATION DEPARTMENT MANAGER SERVICES COMMUNITY DEPARTMENT DEPARTMENT DEPARTMENT DEVELOPMENT I I C I AIRPORT PUBLIC FINANCE— UTILITY I I M.LK PUBLIC1COMPREHENSWE1 BUILDING ADMINISTRATION ENVIItONMENT H. IFI ACCOUNTING F.-1 COLLECTION CENTER COMMUNICATION PLANNING INSPECTION FHEALTH jTRANSPORTATION AL 1I ' J 111ENGINEERINGC E RVVIICES N PURCHASINGF 1 R", N LIBRARY FARMERS T I HOUSING ENFORCEMENT 1PUBLIC CODE NURSINNG TH POLLUTION BUILDING I AUDITORIUM MAINTENANCE 1 MAPROPERTY NAGEMENT f •• TRAPLANNINGONPERSONNEL DUPLICATING SERVICES GOLF • COURSE MUNICIPAL COURT I I POLICE I FIRE PARKS AND PUBLIC WORKS/ DEPARTMENT DEPARTMENT RECREATION PUHUC UTILITIES DEPARTMENT DEPARTMENT I SERVICESCAL SERVICES FS I I SUPPRESSION INVESTIGATION RECREATION MAINTENANCE I PARKS �ENGINEERINGI-� SANTTATION ��/ 111 I 111 'ADMINISTRATION' I CEMETERY I I STREET F1 MAINTENANCE UTILITIES I CITY OF WICHITA FALLS, TEXAS LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30, 2001 Title Name Mayor Gerald Lueck Mayor Pro-Tern Bill Altman City Council Member James Esther, Jr. City Council Member Linda Ammons City Council Member Johnny Bums 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 Vacant Director of Aviation, Traffic and Transportation Robert Parker 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 George Bonnett, P.E. xviii FINANCIAL SECTION MATHIS, WEST, HUFFINES & CO., P.C. Capital Center • Indiana at Seventh r u _ Certified Public Accountants P.O.Box 97000 • Wichita Falls,Texas 76307-7000 (940)723-1471 • FAX(940)723-2251 ^?*� Email mwh®mwhpc.com • www.mwhpc.com Independent Auditor's Report The Honorable Mayor and Members of the City Council City of Wichita Falls, Texas We have audited the accompanying general purpose financial statements of the City of Wichita Falls, Texas, as of and for the year ended September 30, 2001, 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, 2001, 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, 2002, 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. 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. 1 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. MATHIS, WEST, HUFFINES & CO., P.C. Wichita Falls, Texas January 24, 2002 2 GENERAL PURPOSE FINANCIAL STATEMENTS V1PPIAN, CITY OF WICHITA FALLS, TEXAS COMBINED BALANCE SHEET-ALL FUNDS TYPES,ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 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 $ 1,467,044 $3,109,300 $ 211,390 $21,298,775 $ 17,989,989 $ 2,243,835 Investments 7,069,070 - - - - - Receivables(net of allowance for uncollectible accounts): Taxes and assessments 771,692 78,602 133,480 - - - Customer and trade - - - - 3,712,473 - Other City funds 746,085 - - - - - Component unit - - - 1,535,812 - - Government agencies 2,845,660 3,308,981 14,422 - 106,256 - Other 706,702 12,701 - 853 88,296 26,097 Inventory 22,618 - - - 766,159 719,310 Prepaid items 48,820 18,218 - - 9,619 9,976 Restricted assets: Cash and cash equivalents - - - - 24,883,434 Investments - - - - - - Receivables Bond proceeds - - - - 119,591,856 - Other - - - - 16,701 - Plant and equipment: Land and betterments - - - - 26,591,207 433,658 Buildings,systems and improvements - - - - 135,734,023 4,010,098 Machinery and equipment - - - - 3,752,870 103,129 Furniture and fixtures - - - - 42,196 6,358 Motor vehicles and equipment - - - 1,235 31,328,014 Construction in progress - - - - 4,721,299 190,541 Accumulated depreciation - - - - (64,280,043) (20,580,565) Net investment in joint venture - - - - - - Deferred charges - - - - 3,132,055 - 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 $13,677,691 $6,530,802 $ 359,292 $22,835,440 $276,859,625 $18,490,451 The accompanying Notes are an integral part of these financial statements. 3 EXHIBIT A-1 (Page of2 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 2001 2000 $ 941,785 $ - $ - $ 47,262,118 $ 13,297,470 $ 60,559,588 $ 38,502,030 - - - 7,069,070 - 7,069,070 13,472,128 - - - 983,774 6,254 990,028 973,597 - - 3,712,473 - 3,712,473 3,364,348 i. - - - 746,085 - 746,085 898 017 - - - 1,535,812 - 1,535,812 362,385 299,618 - 6,574,937 983,214 7,558,151 7,228,076 - - - 834,649 - 834,649 973,492 - - - 1,508,087 - 1,508,087 1,553,059 - - - 86,633 - 86,633 88,295 - - - 24,883,434 - 24,883,434 24,096,504 - - - - 4,500 119,591,856 - i119,591,856 - - - - 16,701 - 16,701 96,303 - 23,387,429 - 50,412,294 140,480 50,552,774' 40,949,706 - 27,664,965 - 167,409,086 459,520 167,868,606, 153,738659 7,267,032 - 11,123,031 - 11,123,031: 10,697,822' - 214,110 - 262,664 - 262,664' 213,168 - 31,485 - 31,360,734 - 31,360,734 28,985,273 - 4,467,627 - 9,379,467 - 9,379,467' 2,136 722 - - - (84,860,608) - (84,860,608) (80,487066)?> - - - - - 12,155,704,, - - - 3,132,055 - 3,132,055 2,019,318'c'' - - - 3,000 - 3,000 3,000 - - 495.391 495,391 - 495,391 1,585,571 I' - - 23,772,543 23,772,643 - 23,772,643 17,222,591 $ 1,241,403 $ 53,032,648 $ 24,268,034 $ 427,295,386 $ 14,886,938 $442,182,324, $280,823,217 (Continued) CITY OF WICHITA FALLS, TEXAS COMBINED BALANCE SHEET-ALL FUNDS TYPES,ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS (CONT'D.) SEPTEMBER 30,2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 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 $ 480,347 $ 272,201 $ - $ 929,537 $ 1,109,839 $ 180,224 Accrued payroll 423,847 33,135 - - 112,950 20,648 Accrued vacation and sick leave 290,000 - - - 329,342 44,621 Payable to other City funds - 665,655 - 21,000 59,430 - Payable to primary government - - - - - - Payable to government agencies 38,519 123,005 - - 45,198 - Estimated health claims payable - - - - - 679,732 Tax anticipation notes payable - - - 965,000 - - Other liabilities 1,330,960 141,163 27,190 279,895 148,218 - Deferred revenue 799,978 296,325 136,329 - - - Claims and judgments payable 235,576 - - - - - Payable from restricted assets: Contracts and trade - - - - 8,025 - Revenue bonds-current maturities - - - - 4,299,753 - Accrued interest-revenue bonds - - - - 950,604 - General obligation bonds payable - - - _ - - Payable to U.S.Government - - - _ 832.E - Revenue bonds,less current maturities - - - - 172,349,440 - Estimated liability for landfill closure and postclosure care costs - - - - 3,201,245 - Other long-term liabilities: Customer deposits-payable from restricted assets - - - - 2,066,807 - Total liabilities 3,599,227 1,531,484 163,519 2,195,432 185,513,416 925,225 Equity and other credits: Investment in general fixed assets - - - - - - Investment in joint venture assets - - - - - - Contributed capital - - - - 28,304,853 24,289,470 Retained earnings(deficit): Reserved for revenue bond debt service - - - - 8,570,885 - Unreserved - - - - 54,470,471 (6,724,244) Fund balances: Reserved for encumbrances 1,256,992 496,079 - 1,143,705 - - Reserved for inventory and prepaid items 71,438 18,218 - - - - Unreserved: Designated for: Subsequent years expenditures 3,000,000 3,813,904 - 20,376,575 - - Debt service - - 195,773 - - - Perpetual care - - - - _ - Undesignated 5,750,034 671,117 - (880,272) - - Total equity and other credits 10,078,464 4,999,318 195,773 20,640,008 91,346,209 17,565,226 Total liabilities,equity and other credits $13,677,691 $6,530,802 $ 359,292 $22,835,440 $276,859,625 $18,490,451 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 2001 2000 $ 368,592 $ - $ - $ 3,340,740 $ 35,165 -$ 3,375,935 $ 2,474,512 - - - 590,580 - 590,580 532,909 - - 4,780,594 5,444,557 - 5,444,557 5,313,638 - - - 746,085 - 746,085 898,032 - - - - 1,535,812 1,535,812 362,385 45,986 - - 252,708 - 252,708 394,092 - - - 679,732 - 679,732 575,296 - - - 965,000 - 965,003 1,255,000 - - - 1,927,426 - 1,927,426 1,713,392,: - - - 1,232,632 - • 1,232,632 1,084,336 - - 272,440 508,016 - „ 508,016 605,292 - - - 8,025 - 8,025 8,025' - - - 4,299,753 - 4,299,753 2,450,000 - - - 950,604 - 950,604 467,138 - - 19,215,000 19,215,000 - 19,215,000 13,705,000 - - 832,565.- � - 832,565' 856,671 - - - 172,349,440 - 172,349,440 56,245,000 - - - 3,201,245 3,201,245 3,138,476 - - - 2,066,807 - 2,066 807 .: 2,031,094 414,578 - 24,268,034 218,610,915 1,570,977 220,181,892 94,110,288 - 63,032,648 - 63,032,648 600,000 63,632,648 38,466,620 - - - - - - 12,155,704 - - - 52,594,323 - 52,594,323 49,471,971 - - - 8,570,885 - 8,570,885 8,209,707 - - - 47,746,227 - 47,746,227 45,338,862 - - - 2,896,776 2,249,949 5,146,725 • 939,432 - - - 89,656 - 89,656 118,311 - - - 27,190,479 10,466,012 37,656491 2.3,453.597` 299,618 - - 495,391 - 495,391 1585571 527,207 527,207 527,207 462131 - - - 5,540,879 - 5,540,879 6,511,023 826,825 63,032,648 - 208,884,471 13,315,961 222,000,432 186,712,929 $ 1,241,403 $ 63,032,648 $ 24,268,034 $ 427,295,386 $ 14,886,938 $442,182,324 $280,823,217 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, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 Governmental Fund Types Special Debt Capital General Revenue Service Projects Revenues: Taxes $ 36,944,112 $ 1,071,597 $ 2,107,657 $ - Charges for services 1,783,301 41,869 - - Licenses and permits 1,892,099 - - - Fines and forfeitures 1,259,742 144,463 - - Intergovernmental revenue 33,319 8,173,725 - - Contributions 32,901 223,547 - 3,194,791 Miscellaneous revenue 1,463,780 626,919 91,804 691,831 Total revenues 43,409,254 10,282,120 2,199,461 3,886,622 Expenditures: Current: Administrative services 7,263,876 1,328,600 - - Police 13,293,997 768,839 - - Fire 8,412,257 10,865 - 24,651 Parks and recreation 3,059,595 566,539 - - Accounting/finance 1,489,661 - - - Community development 1,102,205 4,533,279 - - Public works 4,408,476 247,057 - 104,679 Health 2,080,081 1,792,266 - - Traffic and transportation 1,707,211 71,668 - - Capital outlay 1,365,232 140,214 - 3,347,412 Debt service: Principal retirement - - 1,690,000 - Interest and paying agent fees - - 823,768 51,360 Total expenditures 44,182,591 9,459,327 2,513,768 3,528,102 Excess of revenues over(under)expenditures (773,337) 822,793 (314,307) 358,520 Other financing sources(uses): Operating transfers in 1,167,242 385,785 309,675 10,494,455 Operating transfers in-component units - - - 2,081,955 Operating transfers out (479,096) (983,701) (1,578,436) (4,918,729) Operating transfers out-primary government - - - - Bond proceeds - - - 7,000,000 Proceeds of refunding bonds - - 3,218,670 - Payment to refunded bonds escrow agent - - (3,025,400) - Total other financing sources(uses) 688,146 (597,916) (1,075,491) 14,657,681 Excess of revenues and other sources over(under)expenditures and other uses (85,191) 224,877 (1,389,798) 15,016,201 Fund balance-beginning 10,256,351 5,124,488 1,585,571 5,623,807 Residual equity transfers (92,696) (350,047) - - Fund balance-ending $ 10,078,464 $ 4,999,318 $ 195,773 $ 20,640,008 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 2001 2000 $ 299,618 $ 40,422,984 $ 5,616,393 $ `46,039,377 $ 45,580,001 - 1,825,170 - 1,825,170 1,763,969 - 1,892,099 - 1,892,099 660,715 - 1,404,205 - 1,404,205 1,551,929 - 8,207,044 - 8,207,044 9,442,324 - 3,451,239 .: 3,451,239 88,612 32,658 2,906,992 547,191 3,454,183 3,186,854 332,276 :60,109,733 6,163,584 66,273,317 62,274,404 8,592,476 - 8,592,476 8,020,057 14,062,836 - 14,062,836 13,944,759 - 8,447,773 - 8,447,773 8,389,594`' - 3,626,134 - 3,626,134 4,025,279' - 1,489,661 - 1,489,661 1,331,432 - 5,635,484 508,420 6,143,904 6,393,790 - 4,760,212 - 4,760,212 6,048,016 - 3,872,347 - 3,872,347 3,687,213 - 1,778,879 - 1,778,879 1,768,336 - 4,852,858 - 4,852,858 4,409,884 - 1,690,000 - 1,690,000 1,612,677 - 875,128 - 875,128 866,006 - 59,683,788 508,420 60,192,208 60,497,043 332,276 425,945 5,855,164 6,081,109 1,777,361 - 12,357,157 - 12,357,157 2,266,490 - 2,081,955 - 2,081,955 422,263 (907,623) (8,867,585) - (8,867,585) (582,550) - - (2,081,955) (2,081,955) (422,263) - 7,000,000 - 7,000,000 - 3,218,670 - 3,218,670 - (3,025,400) - (3,025,400) (907,623) 12,764,797 (2,081,955) 10,682,842 1,683,940' (575,347) 13,190,742 3,573,209 16,763,951 3,461,301 874,965 23,465,182 9,142,752 32,607,934 31,595,238 - (442,743) - (442,743) (2,448,605) $ 299,618 $ 36,213,181 $ 12,715,961 $ 48,929,142 $ 32,607,934 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 30,2001 General Fund Variance- Favorable Budget Actual (Unfavorable) Revenues: Taxes $ 36,123,549 $ 36,944,112 $ 820,563 Charges for services 1,719,310 1,783,301 63,991 Licenses and permits 1,783,734 1,892,099 108,365 Fines and forfeitures 1,332,200 1,259,742 (72,458) Intergovernmental revenue 60,400 33,319 (27,081) Contributions - 32,901 32,901 Miscellaneous revenue 1,268,416 1,463,780 195,364 Total revenues 42,287,609 43,409,254 1,121,645 Expenditures: Current: Administrative services 7,263,774 7,263,876 (102) Police 13,378,825 13,293,997 84,828 Fire 8,450,347 8,412,257 38,090 Parks and recreation 3,210,360 3,059,595 150,765 Accounting/finance 1,567,381 1,489,661 77,720 Community development 1,175,669 1,102,205 73,464 Public works 5,087,586 4,408,476 679,110 Health 2,157,019 2,080,081 76,938 Traffic and transportation 1,734,013 1,707,211 26,802 Capital outlay 1,735,305 1,365,232 370,073 Debt service: Principal retirement - - - Interest and paying agent fees - - - Total expenditures 45,760,279 44,182,591 1,577,688 Excess of revenues over(under)expenditures (3,472,670) (773,337) 2,699,333 Other financing sources(uses): Operating transfers in 1,166,497 1,167,242 745 Operating transfers out (717,710) (479,096) 238,614 Proceeds of refunding bonds - - - Payment to refunded bonds escrow agent - - - Total other financing sources(uses) 448,787 688,146 239,359 Excess of revenues and other-sources over (under)expenditures and other uses $ (3,023,883) (85,191) $ 2,938,692 Fund balance-beginning 10,256,351 Residual equity transfers (92,696) Fund balance-ending $ 10,078,464 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) $ 1,082,000 $ 1,071,597 $ (10,403) $ 2,105,100 $ 2,107,657 $ 2,557 13,489 41,869 28,380 - - - 124,894 144,463 19,569 - - - 8,767,824 8,173,725 (594,099) - - - 223,547 223,547 - - - - 526,601 626,919 100,318 - 91,804 91,804.00 10,738,355 10,282,120 (456,235) 2,105,100 2,199,461 94,361 1,934,064 1,328,600 605,464 - - - 1,661,953 768,839 893,114 - - - 74,518 10,865 63,653 - - - 1,242,169 566,539 675,630 - - - 7,025,676 4,533,279 2,492,397 - - - 941,479 247,057 694,422 - - - 2,312,563 1,792,266 520,297 - - - 224,722 71,668 153,054 - - - 1,043,500 140,214 903,286 - - - - - - 1,877,738 1,690,000 187,738 - - - 1,310,710 823,768 486,942 16,460,644 9,459,327 7,001,317 3,188,448 2,513,768 674,680 (5,722,289) 822,793 6,545,082 (1,083,348) (314,307) 769,041 (1,086,439) 385,785 1,472,224 896,356 309,675 (586,681) (689,331) (983,701) (294,370) (1,578,436) (1,578,436) - -- - - 3,191,992 3,218,670 26,678 - - - (3,005,000) (3,025,400) (20,400) (1,775,770) (597,916) 1,177,854 (495,088) (1,075,491) (580,403) $ (7,498,059) 224,877 $ 7,722,936 $ (1,578,436) (1,389,798) $ 188,638 - 1,585,571 $ 224,877 $ 195,773 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, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 Fiduciary Proprietary Fund Types Fund Type Totals Internal Nonexpendable (Memorandum Only) Enterprise Service Trust 2001 2000 Operating revenues: Charges for services S35,233,623 $7,052,109 $ - $42,285,732 $35,853,715 Rents,concessions and other 886.795 433,791 39,930 1,360,516 939,323 Contributions - 5,325,643 - 5,325,643 5,194,493 Total operating revenues 36,120,418 12,811,543 39,930 48,971,891 41,987,531 Operating expenses: Personnel services 9,862,546 1,641,316 - 11,503,862 10,933,711 Supplies and materials 1,662,853 2,061,868 - 3,724,721 3,532,754 Maintenance and repairs 2,644,151 1,526,451 - 4,170,602 5,591,128 Utilities and other services 7,298,108 85,420 - 7,383,528 6,375,958 Insurance and contract support 6,95,632 5,091,818 - 5,787,450 5,701,031 Other expenses 1,672,078 301,477 1,973,555 `1,854,247 Depreciation and amortization 3,289,896 2,841,619 6,131,515 5,939,223 Total operating expenses 27,125,264 13,549,969 - 40,675,233 39,928,052 Operating income(loss) 8,995,154 (738,426) 39,930 8,296,658 2,059,479 Nonoperating revenues(expenses): Interest income 2,023,413 69,250 25,146 2,117,809 2,632,757 Gain on sale/abandonment of fixed assets - 100,633 - 100,633 303,941 Interest expense and paying agent fees (2,761,955) - - (2,761,955) (2,713,331) Intergovernmental operating grants 815,917 - - 815,917 603,710 Total nonoperating revenues(expenses) 77,375 169,883 25,146 272,404 827,077 income(loss)before operating transfers 9,072,529 (568,543) 65,076 8,569,062- _ 2,886,556 Operating transfers: Operating transfers in 151,739 - - 151,739 275,849 Operating transfers out (3,329,311) (312,000) - (3,841,311) (1,959,789) Net operating transfers (3,177,572) (312,000) - (3,489,572) (1,683,940) Net income(loss) 5,894,957 (880,543) 65,076 5,079,490 1,202,616 Retained earnings(deficit)-beginning 59,392,270 (5,843,701) 462,131 54,010,700 54,162,879 Residual equity transfers (2,245,871) - - (2,245,871) (1,354,795) Retained earnings(deficit)-ending 563,041,356 S(6,724,244) $ 527,207 $56,844,319 $54,010,700 The accompanying Notes are an integral part of these financial statements. 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 30,2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 Fiduciary Proprietary Fund Types Fund Type Totals internal a (Memorandum Only) Enterprise Service Trust 2001 2tXXJ Cash flows from operating activities: Operating income(loss) $ 8,995,154 $ (738,426) $ 39,930 • $ `'8,296,658 $ 2,059,479 Adjustments to reconcile operating income(loss) to net cast,provided by operating activities: Depreciation and amortization 3,289,896 2,841,619 - 6,131,515 5,939,223 Customer deposits received 35,713 - 35,713 65,441 Landfill closure and postclosure care costs 62,769 - - 62,769 46,382 (Increase)decrease in current assets. Receivables: Customer and trade (348,125) - - (348,125) (482,343) Other City funds 398,032 - - 398,032 .379,757 Government agencies (62,611) (62,611) 115,961 Other 10,756 (16,860) (6,104) (38,964) Inventory 76,902 (49,678) • 27;224 (26,284) Prepaid items 1,150 (5,482) (4,332) 1,583 Restricted assets 79,602 - 79,602 (27,967) Increase(decrease)in current liabilities: Accounts payable-trade 475,206 (62,798) 412,408 ;(91);401) Accrued payroll 11,888 1,412 - "13,300 (306;602) Accrued vacation and sick leave (2,071) 2,266 195 :24,385 Payable to other City funds 59,430 59,430 (240, 53) Payable 10 government agencies 3,514 3.514 (5,119) Estimated health claims payable - 104,436 - 104,436 31,409 Other liabilities (2,258) - - (2,258) 145,979 Other liabilities payable from restricted assets (50,554) - - (50,554) (116,272) Total adjustments 4,039,239 2,814,915 - 6,854,154 5,406,595 Net cash provided by operating activities 13,034,393 2,076,489 39,9.i0 15,150,812 1,466,0/4 Cash flows from noncapital financing activities: Intergovernmental operating grants 815,917 - - 815,917 603,710 Operating transfers in from other funds 151,739 - - 151,739 275,849 Operating transfers out to other funds (3,329,311) (312,000) - (3,641,311) (1,959,788) Residual equity transfers from other funds - 2,688,614 - 2,688,614 3,803,403 Residual equity transfers to other funds (2,245,871) - - (2,245,871) (1,354,795) Net cash provided(used)by noncapital financing activities (4,607,526) 2,376,614 (2,230,912) 1,388,375 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (6,252,906) (3,624,824) - (9,877,730) (10,094,902) Proceeds from sale of foxed assets - 112,472 - 112,472 336,309 Principal paid on long-term debt maturities (2,474,106) (2,474,106) (2,368,347) Interest pad on long-term debt obligations (2,711,931) - - (2711,931) (2,657,697) Other assets - - 30,000 Net cash used by capital and related financing activities (11,438,943) (3,512,352) - (14,951,295) (14,774,637) Cash flows from investing activities: Maturity/sale of investments 4,505,323 4,505,323 _.. <'994.900 Interest on investments 2,023,413 69,250 25,146 2,117,809 2,632,757 Net cash provided by investing activities 6,525,736 69,250 25,146 5,52.3,142 ';:3:82i,ti5/ Net increase(decrease)in cash and cash equivalents 3,516,660 1,010,001 65,076 4,591,737 (2,312,531) Cash and cash equivalents at beginning of year 39,356,763 1,233,834 462,131 41,052,728 43,365,259 Cash and cash equivalents at end of year $ 42,873,423 $ 2,243,835 $ 527,207 $ 45,644,465 $ 41,052,728 Noncash capital and financing activities Capital assets received from developers $ 404,599 $ - S - S 404,599 $ 294,395 Gross proceeds of Water and Sewer System Priority Lien Revenue Bonds,Series 2001 not received by year-end 119,591,856 - - 119,5131,856 - Reconciliation of cash and cash equivalents on the combined balance sheet to the combined statement of cash flows: Cash and cash equivalents $ 17,989,989 $ 2,243,835 $ 527,207 3 20,761,031 $ 16,956,224 Restricted assets-cash and cash equivalents 24,883,434 - - 24,883,434 24,096,504 Total cash and cash equivalents at end of year $ 42,873,423 $ 2,243,835 $ 527,207 $ 45,644,465 $> ',41,052,728 The accompanying Notes are an integral part of these financial statements. 8 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2001 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 Vemon'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, 2001 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 Reporting Entity Wichita Falls Firemen's Relief and Retirement Fund. The Wichita Falls Firemen's Relief and Retirement Fund was established and is controlled through various State of Texas legislative enactments. This Fund is administered locally by a seven-member board, independent of the City Council. City management and the City Council do not influence or control the administrative and financial affairs of the Fund, and the assets of the Fund are not the property of the City. The seven-member Board of Trustees, composed of the Mayor, the Senior Accountant from the City's Finance Department, three firefighters elected by a majority vote of the firefighters and two citizens, who are not employees or officers of the City and are chosen by the unanimous vote of the first five Trustees, are subject to the administrative supervision of and report to the State Firemen's Pension Board. The activities of the Firemen's Relief and Retirement Fund, in the City's judgment, are not a part of the City and thus are excluded from the accompanying financial statements. 10 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of the City conform to generally accepted accounting principles (GAAP) applicable to state and local governments. Generally accepted accounting principles for local governments include 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 (CONT'D.) SEPTEMBER 30, 2001 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 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. Agency 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, 2001 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 Lono-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 generally accepted accounting principles. 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 FALLS OF WICHITA TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 Note 2 - SUMMARY OF SIGNIFICANT TI N ACCOUNTING POLICIES (CONT'D.) 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. 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$2,330,489 which were passed and approved by the City Council. 14 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Budget Policies (Contd.). 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. 5. Annual budgets are legally adopted for all governmental funds on a basis consistent with generally accepted accounting principles. However, the budgets for the capital projects funds are adopted for specific projects, are not binding, and may exceed one year. 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. 15 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 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. Plant and Equipment - 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, 2001, the City's proprietary funds incurred a total of $2,770,780 of interest costs. Of this amount, none was capitalized on construction projects and $2,770,780 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. 16 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) General Fixed Assets (Cont'd.) 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 generally accepted accounting principles. 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 Obliaations 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 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 Desianations 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 17 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Reserves and Designations (Cont'd.) expended and represent a portion of the fund balance that is not available for future expenditures. Amounts reserved for encumbrances are commitments for materials and services on purchase orders and contracts which are unperformed. Designations of unreserved fund balances in governmental funds indicate City management's tentative plans for use of financial resources in a future period. 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 1080 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. 18 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.) 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, 2001 is based on management's estimate of probable losses in the amount of $391,016. 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$118,576 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, 1999 to September 30, 2001: Health Workers' Care Compensation Liability balance, October 1, 1999 $ 543,887 $ 255,942 Incurred claims/adjustments 4,914,944 1,631,690 Claim payments ( 4.883.535) ( 1.399.340) Liability balance, September 30, 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 19 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 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. Interfund 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, 2001, the Library Renovation Fund had a deficit fund balance of$880,272. 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, 2001, the Municipal Airport Fund had a deficit retained earnings balance of $1,168,068. The intent of management is that this deficit be recovered by transfers from other funds during future years. At September 30, 2001, the Transit Fund had a deficit retained earnings balance of $254,756. 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, 2001, She Fleet Maintenance Fund had a deficit retained earnings balance of $7,683,238. 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. 20 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 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, 2001, the total amount of the City's demand and time deposits per the general ledgers was $85,443,022, and the total amount per the City's September 30, 2001 bank statements was $87,321,381. The entire amount of the year-end bank statement balances was covered by federal depository insurance or by collateral held by the City's agent in the City's name. Investments The investment policies of the City and its discretely presented component units are governed by State statutes. Authorized investments include obligations of the U.S. Treasury, agencies and instrumentalities, obligations of the State of Texas and related agencies, obligations of states, agencies, counties, cities and political subdivisions of any state rated A or above by a nationally recognized investment rating firm, repurchase agreements, public funds investment pools, and commercial paper. The investments of the City and its discretely presented component units at September 30, 2001 are as follows: Component City Units Totals U.S. Government securities $ 7,069,070 $ - $ 7,069,070 Texas Local Government Investment Pool (TexPool) 64,123,253 13,296,722 77,419,975 Local Government Investment Cooperative (LOGIC) 180.350 - 180.350 Totals $71.372.673 $13.296.722 $84,669,395 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. 21 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 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. Category Carrying Fair Description 1 2 3 Amount Value Primary Government: U.S. Government Securities $ 7 069 070 S— $— $ 7,069,070 $ 7,069,070 Investments not subject to categorization: Public Funds Investment Pool 64.303.603 64,303,603 Subtotal 71,372,673 71,372,673 Component Units: Investments not subject to categorization: Public Funds Investment Pool 13.296.722 13.296.722 Total $81669„3.95 $84 6eci3R The fair value of the City's position in the Public Funds Investment Pool is the same as the value of the Pool shares. 22 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 Note 5 - RECEIVABLES Receivables at September 30, 2001 consist of the following: Totals Totals Special Debt Capital Internal Trust Primary Component Reporting General Revenue Service Projects Enterprise Service and Agency Government Units Entity Receivables: Taxes and assessments $1,343,897 $ 78,602 $233,222 $ - $ - $ - $ - $ 1,655,721 $ 6,254 $ 1,661,975 Customer and trade - - - - 3,892,680 - - 3,892,680 - 3,892,680 Other City funds 746,085 - - - - - - 746,085 - 746,085 Component unit - - - 1,535,812 - - - 1,535,812 - 1,535,812 Government agencies 2,845,660 3,308,981 14,422 - 106,256 - 299,618 6,574,937 983,214 7,558,151 Other 706,702 12,701 - 853 88,296 26,907 - 835,459 - 835,459 N Restricted bond proceeds - - - - 119,591,856 - - 119,591,856 - 119,591,856 W Restricted-other - - - - 16.701 - - 16.701 - 16.701 Gross receivables 5,642,344 3,400,284 247,644 1,536,665 123,695,789 26,907 299,618 134,849,251 989,468 135,838,719 Less: Allowance for uncollectible accounts ( 572.205) - ( 99,742) - ( 180.207) - - 1 852.154) ( 852.154) Net total receivables $5,070.139 S3.400.284 3147.902 31.536.665 S123515.582 S26.907 $291.618 3133.997.097 S989.488 $134.988.565 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 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, 2001 was $.55194 per$100 which means that the City has a tax margin of $1.69806 per $100, and could raise up to $53,880,427 additional tax revenue a year from the present assessed valuation of$3,173,057,900 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 $ 8,570,885 For Capital Improvements: Cash and cash equivalents 14,245,742 Receivables 119,608,557 For Customer Deposits: Cash and cash equivalents 2,066,807 Total $144.491,991 Note 8 - PLANT, EQUIPMENT AND DEPRECIATION A summary of plant and equipment at September 30, 2001 is as follows: Internal General Enterpnse Service Fixed Component Funds Funds Assets Units Total Land and betterments $ 26,591.206 $ 433,658 $23,387,429 $140,480 $ 50,552,773 Buildings,systems and improvements -135,734,023 4,010,098 27,664,965 459,520 167,868,606 Machinery and equipment 3,752,870 103,129 7,267,032 - 11,123,031 Furniture and fixtures 42,196 6,358 214,110 - 262,664 Motor vehicles and equipment 1,235 31,328,014 31,485 - 31,360,734 Construction in progress 4.721.299 190.541 4.467.627 - 9.379.467 Total plant and equipment 170,842,829 36,071,798 63,032,648 600,000 270,547,275 Less accumulated depreciation ( 64.280.043) ( 20.580.565) - - ( 84.860.608) Net plant and equipment $106 562 786 $1,F••1713 $63.032_648 $640,1/04 $185.686,667 24 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 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, 2001 is as follows: Balance Balance October 1, MPEC September 30, 2000 Additions Transfers Retirements 2001 Plant and equipment: Land and $14,135,745 $ 13,500 $ 9,238,184 $ - $23,387,429 Buildings and improvements 16,336,574 1,096,146 10,232,245 - 27,664,965 Machinery and equipment 7,130,805 401,664 187,485 452,922 7,267,032 Furniture and fixtures 197,824 4,350 28,288 16,352 214,110 Motor vehicles and equipment 31,485 - - - 31,485 Construction in progress 34,187 3,337,198 1,096,242 4,467.627 Subtotal 37,866,620 4,852,858 20,782,444 469,274 63,032,648 Investment in joint venture 12,155,704 - ( 12,155,704) - - Totals 150 022 324 14,852.858 $ 8.626.740 $469,274 $63.032.648 A summary of changes in components of the fixed assets of the discretely presented component units for the year ended September 30, 2001 is as follows: Balance Transfers Balance October 1, and September 30, 2000 Additions Retirements 2001 Land and betterments $140,480 $ - $ - $140,480 Buildings and improvements 459,520 - - 459,520 Totals 1600,000 $ - $ - 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 745 administered by TMRS, an agent multiple-employer public employee retirement system. 25 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 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 5%, except police officers which is 7%, and the City matching ratio is currently 2 to 1, both as adopted by the governing body of the City. Under the state law governing TMRS, the actuary annually determines the City contribution rate. This rate consists of the normal cost contribution rate and the prior service contribution rate, both of which are calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the currently accruing monetary credits due to the City matching percent, which are the obligation of the City as of an employee's retirement date. not at the time the employee's contributions are made. The normal cost contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the City to each employee at the time his/her retirement becomes effective. The prior service contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan's 25-year amortization period. When the City periodically adopts updated service credits and increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-year period. The unit credit actuarial cost method is used for determining the City contribution rate. "Both the employees and the City make contributions monthly. Since the City needs to know its contribution rate in advance to budget for it, there is a one-year delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect (i.e. December 31, 2000 valuation is effective for rates beginning January 2002). 26 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 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. 27 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 Note 9 - RETIREMENT PLANS (CONTD.) Schedule of Actuarial Liabilities and Funding Progress Texas Municipal Firemen's Total Retirement Relief and (Memorandum System Retirement Only) Actuarial Valuation Date 12/31/00 12/31/00 Actuarial Value of Assets $62,462,023 $26,930,018 $ 89,392,041 Actuarial Accrued Liability(AAL) 82,680,887 31,419,892 114,100,779 Percentage Funded 75.5% 85.7% 78.3% Unfunded Actuarial Accrued Liability(UAAL) 20,218,864 4,489,874 24,708,738 Annual Covered Payroll 27,754,660 5,858,962 33,613,622 UAAL as a Percentage of Covered Payroll 72.8% 76.6% 73.5% Net Pension Obligation (NPO)at the Beginning of the Period -0- -0- -0- Annual Pension Cost: Annual Required Contribution (ARC) $ 3,197,051 $ 537,013 $ 3,734,064 Interest on NPO -0- -0- -0- Adjustment to the ARC -0- -0- -0- Annual Pension Cost $ 3.197,051 $ 537.013 $ 3.734.064 Percentage of Annual Pension Costs Contributed 100% 100% 100% Contributions Made $ 3,197,051 $ 537,013 $ 3,734,064 Increase in NPO -0- -0- -0- NPO At the End of the Period $ -0- $ -0- $ -0- Two preceding years: 1999: Annual Pension Cost $ 3,006,196 $ 537,013 $ 3,543,209 Percentage of Annual Pension Costs Costs Contributed 100% 100% 100% NPO At the End of the Period •-0- -0- -0- 1998: Annual Pension Cost $ 2,522,957 $ 558,566 $ 3,081,523 Percentage of Annual Pension Costs Contributed 100% 100% 100% NPO At the End of the Period -0- -0- -0- 28 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 Note 9 - RETIREMENT PLANS (CONT'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. 29 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 Note 11 - PAYABLE TO U.S. GOVERNMENT (CONT'D.) The remaining debt payable to the U.S. Government at September 30, 2001 is classified as follows: Long-term $832,565 Current portion (included in other liabilities) 24.106 Total $856,671 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 $9,548 for the fiscal year ended September 30, 2001. 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, 2001: Year ending September 30: 2002 $116,641 2003 92,843 2004 81,374 2005 98,196 2006 129 Later years 3 Total minimum payments required $389,186 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, 2001: Minimum rentals $119,443 Contingent rentals 9.548 Total rentals $128.991 30 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 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, 2001: Obligations Obligations Outstanding New Outstanding October 1, Obligations Obligations September 30, 2000 incurred Retired 2001 General Lona-Term Debt: General Obligation Bonds payable $13,705,000 $ 10,205,000 $4,695,000 $ 19,215,000 Accrued vacation and sick leave 4,689,870 90,724 - 4,780,594 Claims and judgments payable 413.292 1.243.627 1.384.479 272.440 Total general long-term debt 18.808.162 11.539.351 6.079.479 24.268.034 Proprietary Fund Debt: Revenue Bonds payable 58,695,000 120,404,193 2,450,000 176,649,193 Payable to U.S. Government 880.018 - 23.347 856,671 Total proprietary fund debt 59,575,018 120.404,193 2.473.347 177,505,864 Total long-term liabilities $78 383 J8n $131 943,544 $8,552,826 $201 773 8AR Bonds payable at September 30, 2001, including net unamortized premium on the revenue bonds, are comprised of the following individual issues: Range of Final Annual Bonds Interest Maturity Serial Bonds Outstanding Rates Date Payments Authorized at 9/30/01 General Obligation Bonds: General Obligation Refunding 3.50%- 9/01/06 $105,000 to $ 7,250,000 $ 3,890,000 Bonds, Series 1994 5.50% $860,000 General Obligation Refunding 4.10%- 9/01/06 $570,000 to 9,000,000 5,120,000 Bonds, Series 1996 5.30% $1,130,000 General Obligation Construction 3.75%- 9/01/21 $175,000 to 10,205,000 10,205,000 and Refunding Bonds, 5.375% $945,000 Series 2001 Total General Obligation Bonds 19.215.000 31 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 Note 14 - LONG-TERM DEBT (CONTD.) Range of Final Annual Bonds Interest Maturity Serial Bonds Outstanding Rates Date Payments Authorized at 9/30/01 Revenue Bonds: Water and Sewer Revenue Bonds: Water and Sewer System 3.90%- 8/01/07 $95,000 to $ 12,830,000 $ 7,720,000 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 3,320,000 Refunding Revenue 5.40% $625,000 Bonds, Senes 1996 Water&Sewer System 4.05%- 8/01/18 $180,000 to 5,500,000 4,915,000 Priority Lien Revenue 4.65% $400,000 Bonds, Series 1998B Water& Sewer System 3.75%- 8/01/27 $1,220,000 to 118,770,000 118,770,000 Priority Lien Revenue 5.375% $11,515,000 Bonds, Series 2001 Plus bond premium 1,634,193 Water&Sewer Subordinate 3.35%- 8/01/16 $25,000 to 11,420,000 11,005,000 Lien Revenue Bonds, 4.95% $2,750,000 Series 1996 Water& Sewer Subordinate 3.14%- 8/01/18 $25,000 to 8,060,000 7,985,000 Lien Revenue Bonds, 4.59% $3,320,000 Series 1998 Water&Sewer System 3.65%- 8/01/12 $375,000 to 22,795,000 21,300,000 Subordinate Lien 4.50% $3,770,000 Refunding Revenue Bonds, Series 1998A Total Revenue Bonds 176,649,193 Total All Bonds $195.864 193 All of the General Obligation Bonds were issued on the full faith and credit of the City and are secured by ad valorem-taxes-ievied 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, 2001, $195,773 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. 32 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 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 $635,880, $2,742,723, and $28,057 of interest, respectively. In September 2001, the City sold $118,770,000 of its Water and Sewer System Priority Lien Revenue Bonds, Series 2001; however, the proceeds were not received by September 30, 2001. Consequently, a restricted receivable for the gross proceeds of $119,591,856 was recorded in the Enterprise Fund at September 30, 2001. The annual requirements to pay principal and interest on the City's long-term obligations outstanding as of September 30, 2001 are as follows: Year Ending General Obligation Bonds Revenue Bonds Payable to U.S. Government w September 30, Principal Interest Principal (11 Interest Principal Interest Totals w 2002 $ 1,805,000 $1,168,309 $ 4,299,753 $ 8,087,504 $ 24,106 $ 27,868 $ 15,412,540 2003 2,120,000 844,291 3,981,101 8,412,955 24,890 27,084 15,410,321 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 7,864,683 27,999 24,574 15,415,724 Subsequent 8.270.000 2,934.425 155.344.243 96.511.136 727.440 259.425 264.046.669 Totals $19,215,000 $6,834.081 $176.649.193 $137.173.614 $856.671 $390.663 $341.119.222 (1) Includes amortization of bond premium of$1,634,193. CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 Note 15 - DEFEASED DEBT Current Year On March 1, 2001, the City issued general obligation bonds of $10,205,000 (par value) with interest rates ranging from 3.75% to 5.375%. The debt was issued to partially fund construction of a coliseum at the Multi-Purpose Events Center and advance refund general obligation bonds with interest rates ranging from 5.10% to 5.75% and a par value of $3,005,000. The general obligation bonds to be refunded mature through September 1, 2010, and were callable on September 1, 2001. The new general obligation bonds were issued at a premium of $13,670 and, after paying issuance costs of $159,812 and depositing $7,033,458 into the Debt Service and Capital Projects Funds, the net proceeds for refunding were $3,025,400. The net proceeds were used to purchase U.S. government securities and those securities were deposited in an irrevocable trust with an escrow agent to provide debt service payments until the bonds were called on September 1, 2001. The advance refunding met the requirements of an in-substance debt defeasance and the original general obligation bonds were removed from the City's General Long-Term Debt Account Group. As a result of the advance refunding, the City reduced its total debt service requirements by $241,029 resulted in an economic gain (difference between the present value of the debt service payments on the old and new debt) of$211,334. Prior Years In prior years, the City defeased certain outstanding revenue bonds by placing the proceeds of new bonds and additional cash in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust escrow accounts and the defeased bonds are not included in the City's financial statements. At September 30, 2001, $11,245,000 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, 2001 are as follows: 34 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 Note 16 - TAX ANTICIPATION NOTES PAYABLE (CONTD.) Year Ending September 30: Principal Interest Total 2002 $ 305,000 $ 37,969 $ 342,969 2003 320,000 23,590 343,590 2004 340.000 8.075 348.075 Totals $ 965.000 $ 69.634 $1.034.634 During the year ended September 30, 2001, the City paid $51,360 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 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$3,195,379 as of September 30, 2001, 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 $5,866 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. Note 18 - INDIVIDUAL FUND AND RELATED DISCLOSURES Interfund receivables and payables at September 30, 2001 are as follows: Interfund Interfund Receivables Pavables General Fund $746.085 $ - Special Revenue Funds: Community Development Block Grant Fund - 68,626 Home Investment Partnership Agreement Fund - 20,516 Miscellaneous Special Revenue Fund - 576.513 Total Special Revenue Funds - 665.655 35 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 Note 18 - INDIVIDUAL FUND AND RELATED DISCLOSURES (CONT'D.) Interfund Interfund Receivables Pavables Capital Projects Funds: MPEC Coliseum - 21.000 Enterprise Funds: Transit Fund - 50,520 Water and Sewer Fund - 8.910 Total Enterprise Funds - 59,430 Totals $746.085 $746,085 Receivable and payable balances between the primary government and the component units at September 30, 2001 are as follows: Receivable Payable Capital Projects Funds: 4B Sales Tax Projects Fund $1.535,812 $ - Component Units: Wichita Falls 4B Sales Tax Corporation - 1,535,812 Totals $1.535.812 $1.535.812 Operating transfers between funds and component units during the year were as follows: Operating Operating Transfer In Transfer Out General Fund $ 1,167,242 $ 479,096 Special Revenue Funds: Hotel/Motel Tax Fund - 441,353 Miscellaneous Special Revenue Fund 385,785 542,348 Total Special Revenue Funds 385.785 983.701 Debt Service Fund 309.675 1.578.436 Capital Projects Funds: Library Renovation Fund 341,360 - 1980 General Improvements Fund - 175,667 1981 C.O. General Improvements Fund - 47,907 1981 G.O. General Improvements Fund - 745,530 General Improvements Fund - 664,074 1985 Holliday Creek Project Fund - 3,285,551 4B Sales Tax Projects Fund 1,481,000 - MPEC Coliseum Fund 7,105,620 - Street Improvement Fund 1,000,000 - Drainage Improvement Fund 2,648,430 - Total Capital Projects Funds 12,576,410 4.918,729 36 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 Note 18 - INDIVIDUAL FUND AND RELATED DISCLOSURES (CONTD.) Operating Operating Transfer In Transfer Out Expendable Trust Fund: Excess Sales Tax Expendable Trust Fund - 907.623 Enterprise Funds: Golf Fund - 8,295 Airport Fund - 19,907 Transit Fund 151,739 - Sanitation Fund - 424,310 Water and Sewer Fund - 2.876.799 Total Enterprise Funds 151,739 3,329,311 Internal Service Funds: Fleet Maintenance Fund - 312,000 Component Units: Wichita Falls Reinvestment Zone#1 - 259,595 Wichita Falls 4B Sales Tax Corporation - 1.822.360 Total Component Units - 2.081,955 Totals $14.590.851 $14.590.851 Residual equity transfers between funds during the year were as follows: Equity Equity Transfer In Transfer Out General Fund $ - $ 92,696 Special Revenue Funds: Miscellaneous Special Revenue Fund - 350,047 Enterprise Funds: Golf - 4,795 Kickapoo Airport Fund - 7,829 Transit - 68,675 Sanitation Fund - 2,107,609 Water and Sewer Fund - 56,963 Total Enterprise Funds - 2.245.871 Internal Service Funds: Duplicating Services 72,335 - Fleet-Maintenance 2.616.279 - Total Internal Service Funds 2.688.614 - Totals $2.688.614 $2.688.614 37 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 2001 Note 19 - CONTRIBUTED CAPITAL PROPRIETARY FUNDS During the year ended September 30, 2001, 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--cash and cash equivalents $ - $ - $ - $ - $ - $ - $ - $ 72,335 $ 72,335 Government-fixed assets (operations) - - - - - - 2,616,279 2,616,279 Government-fixed assets (General Fixed Assets w Account Group) - - - - - - - 29,139 29,139 oo Developers-fixed assets - - - - - 404.599 - - 404.599 Total additions - - - - - 404,599 2,616,279 101,474 3,122,352 Contributed capital, October 1,2000 8.279 2,292,192 1.600.000 831,471 2.909.150 20.259.162 21.571.717 - 49.471.971 Contributed capital, September 30,2001 $8.279 $2,292.192 $1.600.000 $831,471 $2 909 150 $20.663.761 $24.167.996 $101 474 $52.594.323 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 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, 2001 is as follows: Total Municipal Kickapoo Water Stormwater Enterprise Golf Airport Airport Transit Sanitation and Sewer Drainage Funds Condensed balance sheets: Plant and equipment: Additions $ - $ 33,210 $ 1,015 $ 76,534 $ 807,848 $ 5,738,898 $ - $ 6,657,505 Deletions - - - - - 650,031 - 650,031 VD Net working capital 188,566 243,939 146,387 ( 50,816) 8,251,224 26,526,914 3,98,417 35,694,631 Total assets 283,088 1,136,723 1,667,995 682,368 11,646,098 261,054,936 388,417 276,859,625 Long-term liabilities - - - - 3,201,245 173,182,005 - 176,383,250 Total equity 231,117 1,124,124 1,651,354 576,715 8,017,736 79,356,746 388,417 91,346,209 Condensed statements of revenues, expenses and changes in equity: Operating revenues 768,083 375,449 327,583 202,180 8,412,122 25,647,505 387,496 36,120,418 Depreciation and amortization 8,887 85,420 50,315 12,425 62,794 3,070,055 - 3,289,896 Operating income(loss) 35,401 40,525 35,941 ( 908,081) 1,334,057 8,069,815 387,496 8,995,154 Intergovernmental operating grants - - - 815,917 - - - 815,917 Operating transfers: In - - - 151,739 - - - 151,739 Out 8,295 19,907 - - 424,310 2,876,799 - 3,329,311 Net income 27,803 29,559 36,625 59,575 1,303,618 4,049,360 388,417 5,894,957 Current capital contributions - - - - - 404,599 - 404,599 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 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, 2001 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 $8,686,404 $5,105,311 $495,223 $14,286,938 Property, plant and equipment 600,000 - - 600,000 Current liabilities(excluding amount due to primary government) 28,248 - 6,917 35,165 Amount due to primary government - 1,535,812 - 1,535,812 Condensed statements of revenues and expenditures: Revenues 3,067,030 2,897,349 199,205 6,163,584 Current expenditures 301,824 175,000 31,596 508,420 Operating transfers out— primary government - 1,822,360 259,595 2,081,955 Excess of revenues and other sources over(under) expenditures and other uses 2,765,206 899,989 ( 91,986) 3,573,209 Note 22 - MULTI-PURPOSE EVENTS CENTER Originally, the Multi-Purpose Events Center (MPEC) was an activities complex jointly owned by the City (50%) and Wichita County (County) (50%) and was operated by a seven-member board composed of two members each from the governing bodies of the City and the County and three other appointed resident citizens of the County. Consequently, the City's net investment in this joint venture has historically been reported in the City's General Fixed Assets Account Group. 40 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 Note 22 - MULTI-PURPOSE EVENTS CENTER (CONTD.) Effective October 1, 2000, the County deeded their one-half interest in MPEC to the City and gave up their two positions on the MPEC's board. Therefore, MPEC ceased being a joint venture. At that time, MPEC's fixed assets, net of accumulated depreciation, of $20,782,444 were contributed to the City and recorded in the General Fixed Assets Account Group and the investment in the joint venture of $12,155,704 was written off. The management and operations of MPEC are contracted with a third party in which the City will fund any operating deficits of MPEC from the City's undesignated hotel/motel taxes. During the year ended September 30, 2001, the City paid $312,743 to the third party to fund the operating deficits of MPEC. Note 23 - 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. Accrued Vacation and Sick Leave The City's liability for accrued vacation and sick leave excluding the amount recorded in the enterprise funds was $5,070,594 at September 30, 2001. 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, 2001, 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. 41 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 Note 23 - COMMITMENTS AND CONTINGENCIES (CONT'D.) Contract Commitment With West Texas Utilities Company (Cont'd.) 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, 2001 was $.404046 per one thousand gallons. This contract can be terminated at any time by the Company. If the contract is terminated, the Company is required to make a maximum termination payment equal to the minimum charges which would have become due and payable during the following twenty-four month period. Construction Contracts At September 30, 2001, 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 $ 613.394 Special Revenue Fund: Community Development Block Grant 225,498 Capital Projects Funds: MPEC Coliseum 15,887,463 Street Improvements 732.876 Total Capital Projects Funds 16,620.339 Enterprise Funds: Sanitation Fund 2,238,284 Water and Sewer Fund 6.573,790 Total Enterprise Funds 8.812,074 Total contract commitments $26.271.305 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 Task Force, and numerous health-related grants. 42 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 2001 Note 23 - COMMITMENTS AND CONTINGENCIES (CONT'D.) Federal and State Grants- Compliance Audits (Cont'd.) In connection with these grants, the City is required to comply with specific terms and agreements as well as applicable Federal and State laws and regulations. Such compliance is subject to review and audit by the grantors and their representatives. In the opinion of management, the City has complied with all requirements. However, since such programs are subject to future audit or review, the possibility of disallowed expenditures exists. In the event of any disallowance of claimed expenditures, the City expects the resulting liability to be immaterial. Note 24 - EXCESS EXPENDITURES OVER APPROPRIATIONS For the year ended September 30, 2001, expenditures exceeded appropriations in the General Fund's administrative services by $102. This overexpenditure was funded by available fund balance. Note 25 - 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. 43 REQUIRED SUPPLEMENTARY INFORMATION If 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) o- (2) (2)-(1) Payroll (4) 1- (5) 12/31/91 $ 32,169,524 $ 38,603,039 83.3% $ 6,433,515 $ 18,664,431 34.5% 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% 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 CITY OF WICHITA FALLS, TEXAS WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND - ANALYSIS OF FUNDING PROGRESS (UNAUDITED) (1) (2) (3) (4) (5) (6) Unfunded UAAL as a Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll Date of Assets Liability(AAL) (1) i- (2) (2) - (1) Payroll (4) •- (5) 4/30/92(a) $ 11,436,828 $ 13,488,758 84.8% $ 2,051,930 $ 3,917,100 52.4% 4/30/93(c) - - - -- - 4/30/94(c) - - - - - - 4/30/95(b) 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(c) - - - - - - 12/31/99(c) - - - - - - 12/31/00 26,930,018 31,419,892 85.7% 4,489,874 5,858,962 76.6% 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 Citys 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 Citys progress made in accumulating sufficient assets to pay benefits when due. Generally,the smaller the percentage,the stronger the pension plan. (a) During 1992,the plan was amended to increase standard retirement benefits from 1.90%to 2.01%of the firefighters average salary multiplied by years of service. This amendment increased the actuarial accrued liability as of October 1,1992 by approximately$1,100,000. (b) 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. (c) 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 information will be disclosed in future periods as it becomes available. 45 Wichita 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. Vl!‘13!M EXHIBIT C-1 CITY OF WICHITA FALLS, TEXAS GENERAL FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2001 AND 2000 2001 2000 ASSETS Cash and cash equivalents $ 1,467,044 $ 271,877 Investments 7,069,070 8,971,304 Receivables: Taxes and assessments (less $572,205 and $570,853 allowance for uncollectible accounts) 771,692 742,221 Other City funds 746,085 500,000 Government agencies 2,845,660 2,600,253 Other 706,702 845,828 Inventory 22,618 40,479 Prepaid items 48,820 59,224 Total assets $ 13,677,691 $14,031,186 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 480,347 $ 845,371 Accrued payroll 423,847 383,153 Accrued vacation and sick leave 290,000 250,000 Payable to government agencies 38,519 130,819 Other liabilities 1,330,960 1,167,249 Deferred revenue 799,978 806,243 Claims and judgements payable 235,576 192,000 Total liabilities 3,599,227 3,774,835 Fund balance: Reserved for encumbrances 1,256,992 368,810 Reserved for inventory and prepaid items 71,438 99,703 Unreserved: Designated for subsequent years expenditures 3,000,000 3,000,000 Undesignated 5,750,034 6,787,838 Total fund balance 10,078,464 10,256,351 Total liabilities and fund balance $ 13,677,691 $14,031,186 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, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 Variance- Favorable 2000 Budget Actual (Unfavorable) Actual Revenues: Taxes: Ad valorem taxes $15,615,924 $ 15,756,043 $ 140,119 $15,041,577 Penalties and interest 180,000 185,323 5,323 175,982 City sales tax 15,740,359 16,024,134 283,775 15,370,145 Franchise taxes 4,214,266 4,612,917 398,651 4,160,902 Other taxes 373,000 365,695 (7,305) 353,424 Total taxes 36,123,549 36,944,112 820,563 35,102,030 Charges for services: Administrative overhead reimbursements 836,368 842,168 5,800 741,574 Data processing services 259,306 301,308 42,002 325,650 Health services 267,721 261,974 (5,747) 270,179 Other service charges 355,915 377,851 21,936 396,149 Total charges for services 1,719,310 1,783,301 63,991 1,733,552 Licenses and permits: Right-of-way permits 1,211,784 1,222,729 10,945 1,358,941 Building permits 185,000 266,133 81,133 203,466 Electrical and plumbing 178,500 199,786 21,286 184,224 Health and animal control 162,450 148,710 (13,740) 162,446 Other licenses and permits 46,000 54,741 8,741 110,579 Total licenses and permits 1,783,734 1,892,099 108,365' 2,019,056 Fines and forfeitures: Municipal Court 1,303,200 1,229,926 (73,274) 1,388,242 Forfeitures and confiscated funds 2,000 800 (1,200) 548 Library 27,000 29,016 2,016 29,101 Total fines and forfeitures .1,-332,200 1,259,742 (72,458) 1,417,891 Intergovernmental revenue: Operating grants 60,400 33,319 (27,081) 46,985 Total intergovernmental revenue 60,400 33,319 (27,081) 46,985 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, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 Variance - Favorable 2000 Budget Actual (Unfavorable) Actual Revenues (Cont'd.): Contributions: Donations - 32,901 32,901 - Total contributions - 32,901 32,901 - Miscellaneous revenue: Rentals and concessions 189,016 195,085 6,069 190.888 Interest 969,000 1,022,003 53,003 1,160,246 Other 110,400 246,692 136,292 157,405 Total miscellaneous revenue 1,268,416 1,463,780 195,364 1,508,539 Total revenues 42,287,609 43,409,254 1,121,645 41,828,653 Expenditures: Administrative services: Mayor and City Council 61,318 61,316 2 61,681 City Manager 294,046 294,044 2 304,266 Personnel/Risk Management 552,303 552,300 3 513,375 Martin Luther King Center 107,655 107,328 327 104,353 Farmer's Market 1,530 1,530 - 1,851 Library 1,364,238 1,360,122 4,116 1,312,014 General Public Information 192,833 192,701 132 138,545 Building Maintenance 1,136,056 1,136,053 3 1,198,112 Nondepartmental 2,008,631 2,051,789 (43,158) 2,223,631 Municipal Court 512,177 507,362 4,815 464,946 Legal 874,215 844,135 30,080 456,970 City Clerk 158,772 155,196 3,576 117,318 Total administrative services 7,263,774 7,263,876 (102) 6,980,200 Police 13,378,825 13,293,997 84,828 13,159,401 Fire 8,450,347 8,412,257 38,090 8,367,462 Parks and recreation: Recreation 817,151 797,956 19,195 890,382 Park maintenance 2.201,270 2,085,836 115,434 2,018,334 City lot mowing program 20,819 18,110 2,709 - Cemetery 171,120 157,693 13,427 163,668 Total parks and recreation 3,210,360 3,059,595 150,765 3,072,384 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, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 Variance- Favorable 2000 Budget Actual (Unfavorable) Actual Expenditures (Cont'd.): Accounting/finance: Accounting/finance 401,207 395,165 6,042 391,799 Information systems 1,016,483 947,531 68,952 798,057 Purchasing 149,691 146,965 2,726 141,576 Total accounting/finance 1,567,381 1,489,661 77,720 1,331,432 Community development: Planning 324,269 313,456 10,813 293,071 Inspection 507,910 502,241 5,669 466,103 Code enforcement 166,854 157,235 9,619 179,381 Property management 69,640 56,822 12,818 50,457 Lake lot administration 106,996 72,451 34,545 69,573 Total community development 1,175,669 1,102,205 73,464 1,058,585 Public works: Engineering 1,746,655 1,198,770 547,885 2,257,353 Street maintenance 3,024,045 2,973,813 50,232 3,056,895 General public works 316,886 235,893 80,993 484,900 1 Total public works 5,087,586 4,408,476 679,110 5,799,148 Health: Administration 472,205 431,867 40,338 439,043 General City nursing 552,395 544,498 7,897 535.382 Environmental health 835,053 830,414 4,639 814,765 Lab water pollution 297,366 273,302 24,064 261,723 Total health 2,157,019 2,080,081 76,938 2,050,913 Traffic and transportation 1,734,013 1,707,211 26,802 1,553,984 Capital outlay __ 1,735,305 __1,365,232 370,073 144,788 Debt service: Principal retirement - - - 2,677 Interest and paying agent fees - - - 134 Total debt service - - - 2,811 Total expenditures 45,760,279 44,182,591 1,577,688 43,521,108 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, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 Variance- Favorable 2000 Budget Actual (Unfavorable) Actual Excess of revenues over(under) expenditures (3,472,670) (773,337) 2,699,333 (1,692,455) Other financing sources (uses): Operating transfers in 1,166,497 1,167,242 745 1,115,906 Operating transfers out (717,710) (479,096) 238,614 (492,234) Total other financing sources (uses) 448,787 688,146 239,359 623,672 Excess of revenues and other sources over(under) expenditures and other uses $ (3,023,883) (85,191) $2,938,692 (1,068,783) Fund balance- beginning 10,256,351 11,506,367 Residual equity transfer (92,696) (181,233) Fund balance- ending $ 10,078,464 $10,256,351 50 Wichita TEXA. 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 Housing Fund The Section 8 Housing Fund accounts for federal funds received to subsidize rents and housing payments for lower income families within the City. Home Investment Partnership Agreement Fund The Home Investment Partnership Agreement Fund accounts for federal funds received to provide home ownership opportunities to low income, first-time homebuyers through the acquisition, rehabilitation and resale of single-family dwellings that are currently owned by governmental agencies. Hotel/Motel Tax Fund The Hotel/Motel Tax Fund accounts for revenues derived from an occupancy tax which is expended on programs promoting the growth of the City of Wichita Falls. Miscellaneous Special Revenue Fund The Miscellaneous Special Revenue Fund accounts for various revenues generated in the form of contributions, fees, concessions, rents and other charges and their related expenditures. This fund also includes revenues derived from various grants for health and police programs. The revenues in this fund are expended to support the activity generating the revenue or as designated by the contributor. CITY OF WICHITA FALLS, TEXAS SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 Home Community Investment Development Section 8 Partnership Block Grant Housing Agreement ASSETS Cash and cash equivalents $ 2,610 $634,082 $ - Receivables: Taxes and assessments - - - Government agencies 1,948,062 57,988 662,018 Other 2,136 2,875 - Prepaid items 18,000 - - Other assets - - - Total assets $ 1,970,808 $694,945 $ 662,018 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 99,313 $ 360 $ 14,153 Accrued payroll 4,701 3,420 920 Payable to other City funds 68,626 - 20,516 Payable to government agencies - 120,903 - Other liabilities 37,523 - 44,744 Deferred revenue - - - Total liabilities 210,163 124,683 80,333 Fund balance: Reserved for encumbrances 245,420 - - Reserved for prepaid items 18,000 - - Unreserved: Designated for subsequent years expenditures 1,497,225 570,262 581,685 Undesignated - - - Total fund balance 1,760,645 570,262 581,685 Total liabilities and fund balance $ 1,970,808 $694,945 $ 662,018 51 EXHIBIT D-1 Hotel/ Miscellaneous Motel Special Totals Tax Revenue 2001 2000 $605,189 $ 1,867,419 $3,109,300 $3,266,808 78,602 - 78,602 82,540 - 640,913 3,308,981 3,151,144 - 7,690 12,701 4,376 - 218 18,218 18,608 - 3,000 3,000 3,000 $683,791 $ 2,519,240 $6,530,802 $6,526,476 $ 52,766 $ 105,609 $ 272,201 $ 71,686 24,094 33,135 29,457 - 576,513 665,655 898,032 - 2,102 123,005 177,237 - 58,896 141,163 93,466 - 296,325 296,325 132,110 52,766 1,063,539 1,531,484 1,401,988 - 250,659 496,079 504,308 - 218 18,218 18,608 - 1,164,732 3,813,904 3,708,115 631,025 40,092 671,117 893,457 631,025 1,455,701 4,999,318 5,124,488 $683,791 $ 2,519,240 $6,530,802 $6,526,476 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, 2001 WITH COMPARATIVE ACTUAL TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 Home Community Investment Development Section 8 Partnership Block Grant Housing Agreement Revenues: Taxes $ - $ - $ - Charges for services 23,185 - - Fines and forfeitures - - - Intergovernmental revenue 1,820,000 2,776,875 668,513 Contributions - - - Miscellaneous revenue 4,635 40,342 8,654 Total revenues 1,847,820 2,817,217 677,167 Expenditures: Current: Administrative services 211,156 - - Police - - - Fire - - - Parks and recreation 271,467 - - Community development 853,908 2,778,092 560,454 Public works 247,057 - - Health 134,465 - - Traffic and transportation 11,000 - - Capital outlay 2,338 2,338 - Total expenditures 1,731,391 2,780,430 560,454 Excess of revenues over(under)expenditures 116,429 36,787 116,713 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 116,429 36,787 116,713 Fund balance-beginning 1,644,216 533,475 464,972 Residual equity transfers - - - Fund balance-ending $ 1,760,645 $ 570,262 $ 581,685 52 EXHIBIT D-2 Totals 2001 2000 Miscellaneous Variance- Hotel/Motel Special Favorable Tax Revenue Actual Budget (Unfavorable) Actual $ 1,071,597 $ - $ 1,071,597 $ 1,082,000 $ (10,403) $ 1,032,511 - 18,684 41,869 13,489 28,380 30,417 - 144,463 144,463 124,894 19,569 134,038 - 2,908,337 8,173,725 8,767,824 (594,099) 9,395,339 - 223,547 223,547 223,547 - 88,612 45,371 527,917 626,919 526,601 100,318 670,426 1,116,968 3,822,948 10,282,120 10,738,355 (456,235) 11,351,343 938,047 179,397 1,328,600 1,934,064 605,464 1,039,857 - 768,839 768,839 1,661,953 893,114 785,358 - 10,865 10,865 74,518 63,653 4,132 - 295,072 566,539 1,242,169 675,630 952,895 - 340,825 4,533,279 7,025,676 2,492,397 4,460,398 - - 247,057 941,479 694,422 221,934 - 1,657,801 1,792,266 2,312,563 520,297 1,636,300 - 60,668 71,668 224,722 153,054 214,352 - 135,538 140,214 1,043,500 903,286 681,281 938,047 3,449,005 9,459,327 16,460,644 7,001,317 9,996,507 178,921 373,943 822,793 (5,722,289) 6,545,082 1,354,836 - 385,785 385,785 397,108 (11,323) 844,784 (441,353) (542,348) (983,701) (1,086,439) 102,738 (90,316) (441,353) (156,563) (597,916) (689,331) 91,415 754,468 (262,432) 217,380 224,877 $ (6,411,620) "$ 6,636,497 2,109,304 893,457 1,588,368 5,124,488 5,282,556 - (350,047) (350,047) (2,267,372) $ 631,025 $ 1,455,701 $ 4,999,318 $ 5,124,488 EXHIBIT D-3 CITY OF WICHITA FALLS, TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2001 AND 2000 2001 2000 ASSETS Cash and cash equivalents $ 2,610 $ - Receivables: Government agencies 1,948,062 1,762,159 Other 2,136 2,136 Prepaid items 18,000 18,608 Total assets $ 1,970,808 $ 1,782,903 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 99,313 $ 12,085 Accrued payroll 4,701 3,695 Payable to other City funds 68,626 122,907 Other liabilities 37,523 - Total liabilities 210,163 138,687 Fund balance: Reserved for encumbrances 245,420 32,227 Reserved for prepaid items 18,000 18,608 Unreserved: Designated for subsequent years expenditures 1,497,225 1,593,381 Total fund balance 1,760,645 1,644,216 Total liabilities and fund balance $ 1,970,808 $ 1,782,903 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, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 Variance - Favorable 2000 Budget Actual (Unfavorable) Actual Revenues: Charges for services $ - $ 23,185 $ 23,185 $ 14,273 Intergovernmental revenue 1,820,000 1,820,000 - 1,795,000 Miscellaneous revenue - 4,635 4,635 24,929 Total revenues 1,820,000 1,847,820 27,820 1,834,202 Expenditures: Current: Administrative services 320,226 211,156 109,070 95,271 Parks and recreation 355,396 271,467 83,929 464,848 Community development 2,029,161 853,908 1,175,253 879,294 Public works 766,259 247,057 519,202 205,694 Health 135,423 134,465 958 135,982 Traffic and transportation 11,000 11,000 - 13,450 Capital outlay 3,668 2,338 1,330 378,297 Total expenditures 3,621,133 1,731,391 1,889,742 2,172,836 Excess of revenues over(under) expenditures $ (1,801,133) 116,429 $ 1,917,562 (338,634) Fund balance - beginning 1,644,216 1,982,850 Fund balance - ending $ 1,760,645 $ 1,644,216 54 EXHIBIT D-5 CITY OF WICHITA FALLS, TEXAS SECTION 8 HOUSING FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2001 AND 2000 2001 2000 ASSETS Cash and cash equivalents $ 634,082 $ 710,711 Receivables: Government agencies 57,988 - Other 2,875 1,277 Total assets $ 694,945 $ 711,988 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 360 $ 519 Accrued payroll 3,420 2,951 Payable to government agencies 120,903 175,043 Total liabilities 124,683 178,513 Fund balance: Unreserved: Designated for subsequent years expenditures 570,262 533,475 Total fund balance 570,262 533,475 Total liabilities and fund balance $ 694,945 $ 711,988 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, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 Variance - Favorable 2000 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue $3,080,184 $ 2,776,875 $ (303,309) $2,639,238 Miscellaneous revenue - 40,342 40,342 47,000 Total revenues 3,080,184 2,817,217 (262,967) 2,686,238 Expenditures: Current: Community development 3,076,184 2,778,092 298,092 2,633,218 Capital 4,000 2,338 1,662 - Total expenditures 3,080,184 2,780,430 299,754 2,633,218 Excess of revenues over(under) expenditures $ - 36,787 $ 36,787 53,020 Fund balance - beginning 533,475 480,455 Fund balance - ending $ 570,262 $ 533,475 56 EXHIBIT D-7 CITY OF WICHITA FALLS, TEXAS HOME INVESTMENT PARTNERSHIP AGREEMENT FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2001 AND 2000 2001 2000 ASSETS Receivables: Government agencies $ 662,018 $ 688,271 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ 14,153 $ 2,300 Accrued payroll 920 846 Payable to other City funds 20,516 192,939 Other liabilities 44,744 27,214 Total liabilities 80,333 223,299 Fund balance: Unreserved: Designated for subsequent years expenditures 581,685 464,972 Total fund balance 581,685 464,972 Total liabilities and fund balance $ 662,018 $ 688,271 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, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 Variance- Favorable 2000 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue $ 562,000 $ 668,513 $ 106,513 $ 433,001 Miscellaneous revenue - 8,654 8,654 32,525 Total revenues 562,000 677,167 115,167 465,526 Expenditures: Current: Community development 1,234,221 560,454 673,767 640,826 Excess of revenues over(under) expenditures $ (672,221) 116,713 $ 788,934 (175,300) Fund balance - beginning 464,972 640,272 Fund balance - ending $ 581,685 $ 464,972 58 EXHIBIT D-9 CITY OF WICHITA FALLS, TEXAS HOTEL/MOTEL TAX FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2001 AND 2000 2001 2000 ASSETS Cash and cash equivalents $ 605,189 $ 810,917 Receivables: Taxes and assessments 78,602 82,540 Total assets $ 683,791 $ 893,457 LIABILITIES AND FUND BALANCE Liabilities Accounts payable -trade $ 52,766 $ - Fund balance: Unreserved: Undesignated 631,025 893,457 Total liabilities and fund balance $ 683,791 $ 893,457 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, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 Variance- Favorable 2000 Budget Actual (Unfavorable) Actual Revenues: Taxes $ 1,082,000 $1,071,597 $ (10,403) $ 1,032,511 Miscellaneous revenue 18,000 45,371 27,371 55,138 Total revenues 1,100,000 1,116,968 16,968 1,087,649 Expenditures: Current: Administrative services 975,658 938,047 37,611 825,837 Excess of revenues over(under) expenditures 124,342 178,921 54,579 261,812 Other financing sources (uses): Operating transfers out (544,092) (441,353) 102,739 (66,813) Excess of revenues and other sources over(under) expenditures and other uses $ (419,750) (262,432) $ 157,318 194,999 Fund balance- beginning 893,457 698,458 Fund balance- ending $ 631,025 $ 893,457 60 EXHIBIT D-11 CITY OF WICHITA FALLS, TEXAS MISCELLANEOUS SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2001 AND 2000 2001 2000 ASSETS Cash and cash equivalents $ 1,867,419 $ 1,745,180 Receivables: Government agencies 640,913 699,437 Other 7,690 2,240 Prepaid items 218 - Other assets 3,000 3,000 Total assets $2,519,240 $ 2,449,857 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 105,609 $ 56,782 Accrued payroll 24,094 21,965 Payable to other City funds 576,513 582,186 Payable to government agencies 2,102 2,194 Other liabilities 58,896 66,252 Deferred revenue 296,325 132,110 Total liabilities 1,063,539 861,489 Fund balance: Reserved for encumbrances 250,659 472,081 Reserved for inventory and prepaid items 218 - Unreserved: Designated for subsequent years expenditures 1,164,732 1,116,287 Undesignated 40,092 - Total fund balance 1,455,701 1,588,368 Total liabilities and fund balance $2,519,240 $ 2,449,857 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, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 Variance - Favorable 2000 Budget Actual (Unfavorable) Actual Revenues: Charges for services $ 13,489 $ 18,684 $ 5,195 $ 16,144 Fines and forfeitures 124,894 144,463 19,569 134,038 Intergovernmental revenue 3,305,640 2,908,337 (397,303) 4,528,100 Contributions 223,547 223,547 - 88,612 Miscellaneous revenue 508,601 527,917 19,316 510,834 Total revenues 4,176,171 3,822,948 (353,223) 5,277,728 Expenditures: Current: Administrative services 638,180 179,397 458,783 118,749 Police 1,661,953 768,839 893,114 785,358 Fire 74,518 10,865 63,653 4,132 Parks and recreation 886,773 295,072 591,701 488,047 Community development 686,110 340,825 345,285 307,060 Public works 175,220 - 175,220 16,240 Health 2,177,140 1,657,801 519,339 1,500,318 Traffic and transportation 213,722 60,668 153,054 200,902 Capital outlay 1,035,832 135,538 900,294 302,984 Total expenditures 7,549,448 3,449,005 4,100,443 3,723,790 Excess of revenues over(under) expenditures (3,373,277) 373,943 3,747,220 1,553,938 Other financing sources (uses): Operating transfers in 397,108 385,785 (11,323) 844,784 Operating transfers out (542,347) (542,348) (1) (23,503) Total other financing sources (uses) (145,239) (156,563) (11,324) 821,281 Excess of revenues and other sources over(under) expenditures and other uses $ (3,518,516) 217,380 $ 3,735,896 2,375,219 Fund balance - beginning 1,588,368 1,480,521 Residual equity transfer (350,047) (2,267,372) Fund balance - ending $ 1,455,701 $1,588,368 62 Wichita rEXA,5\ 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, 2001 AND 2000 2001 2000 ASSETS Cash and cash equivalents $ 211,390 $ 1,578,789 Receivables: Taxes (net of allowance for uncollectible taxes of$99,742 and $104,223) 133,480 134,165 Government agencies 14,422 16,341 Total assets $ 359,292 $ 1,729,295 LIABILITIES AND FUND BALANCE Liabilities: Other liabilities $ 27,190 $ - Deferred revenue 136,329 143,724 Total liabilities 163,519 143,724 Fund balance: Unreserved: Designated for debt service 195,773 1,585,571 Total liabilities and fund balance $ 359,292 $ 1,729,295 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, 2001 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 2001 Variance - Favorable 2000 Budget Actual (Unfavorable) Actual Revenues: Taxes $ 2,105,100 $ 2,107,657 $ 2,557 $2,109,944 Miscellaneous revenue - 91,804 91,804 - Total revenues 2,105,100 2,199,461 94,361 2,109,944 Expenditures: Debt service: Principal retirement 1,877,738 1,690,000 187,738 1,610,000 Interest and paying agent fees 1,310,710 823,768 486,942 798,610 Total expenditures 3,188,448 2,513,768 674,680 2,408,610 Excess of revenues over (under) expenditures (1,083,348) (314,307) 769,041 (298,666) Other financing sources (uses): Operating transfers in 896,356 309,675 (586,681) 305,800 Operating transfers out (1,578,436) (1,578,436) - - Proceeds of refunding bonds 3,191,992 3,218,670 26,678 - Payment to refunded bonds escrow agent (3,005,000) (3,025,400) (20,400) - Total other financing sources (uses) (495,088) (1,075,491) (580,403) 305,800 Excess of revenues and other sources over(under) expenditures and other uses $(1,578,436) $(1,389,798) $ 188,638 7,134 Fund balance - beginning 1,585,571 1,578,437 Fund balance - ending $ 195,773 $1,585,571 64 Wichita 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. 1980 General Improvements This fund was established to account for the projects financed by the 1980 General Obligation Bonds. Significant projects accounted for in this fund included drainage improvements, installation of traffic control,equipment,'and improvements to the Central Services Complex. During the year ended September 30, 2001, this fund was closed. 1981 C.O. General Improvements This fund was established to account for the projects financed by the 1981 Certificates of Obligation. Significant projects accounted for in this fund included the construction of a solid waste transfer station and the improvements to Holliday Creek designed to increase flood control capabilities. During the year ended September 30, 2001, this fund was closed. 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. 1982 General Improvements This fund was established to account for the projects financed by the 1982 General Obligation Bonds. Significant projects accounted for in this fund included park improvements, street improvements and the construction of a softball complex. During the year ended September 30, 2001, this fund was closed. 1985 Holliday Creek Proiect 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-Pur pose ose Events Center's (MPEC) Coliseum. Street Improvements This fund was established to account for the significant street improvement projects. 9 P Drainage Improvements This fund was established to account for the drainage improvement projects. \ trXale • Is t '•'•'w , Va4, . li 431IM ,IL CITY OF WICHITA FALLS, TEXAS CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 1980 1981 1981 1982 Library General C.O.General G.O.General General Renovations Improvements Improvements Improvements Improvements ASSETS Cash and cash equivalents $ 84,728 $ - $ - $ 606,171 $ - Receivables: Component Unit - - - - - Other - - - - - Total assets $ 84,728 $ - $ - $ 606,171 $ - LIABILITIES AND FUND BALANCE Liabilities: Accounts payable-trade $ - $ - $ - $ - $ - Payable to other City funds - - - - - Tax anticipation notes payable 965,000 - - - - Other liabilities - - - - - Totalliabilities 965,000 - - - - Fund balance: Reserved for encumbrances - - - - - Unreserved: Designated for subsequent years expenditures - - - 606,171 - Undesignated (880,272) - - - - Total fund balance (880,272) - - 606,171 - Total liabilities and fund balance $ 84,728 $ - $ - $ 606,171 $ - 65 EXHIBIT F-1 1985 Holliday Capital Creek Improvement 48 Sales MPEC Street Drainage Totals Project Assessments Tax Projects Coliseum Improvements Improvements 2001 2000 $ 1,338,214 $ 64,291 $ - $ 15,516,624 $ 1,011,049 $ 2,677,698 $ 21,298,775 $ 6,907,179 - 1,535,1312 - - - 1,535,812 362,385 853 - - - - - 853 14,885 $ 1,339,067 $ 64,291 $ 1,535,812 $ 15,516,624 $ 1,011,049 $ 2,677,698 $ 22,835,440 $ 7,284,449 $ - $ - $ - $ 851,250 $ 78,287 $ - $ 929,537 $ 151,737 - - - 21,000 - - 21,000 - - - - - - - 965,000 1,255,000 - - - 275,775 4,120 - 279,895 253,905 - - - 1,148,025 82,407 - 2,195,432 1,660,642 - - 326,429 - 732,876 84,400 1,143,705 66,314 1,339,067 64,291 1,209,383 14,368,599 195,766 2,593,298 20,376,575 6,727,765 - - - - - (880,272) (1,170,272) 1,339,067 64,291 1,535,812 14,368,599 928,642 2,677,698 20,640,008 5,623,807 $ 1,339,067 $ 64,291 $ 1,535,812 $ 15,516,624 $ 1,011,049 $ 2,677,698 $ 22,835,440 $ 7,284,449 CITY OF WICHITA FALLS, TEXAS CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 1980 1981 1981 1982 Library General C.O.General G.O. General General Renovations Improvements Improvements Improvements Improvements Revenues: Contributions $ - $ - $ - $ - $ - Miscellaneous revenue: Capital improvement assessments - Interest - 3,749 1,022 23,375 14,171 Total revenues - 3,749 1,022 23,375 14,171 Expenditures: Current: Fire - - - - - Public works: McGrath Creek improvements - - - - - Street improvement - - - - - MPEC Coliseum - - - - - Total public works - - - - - Capital outlay: MPEC Coliseum - - - - - Fire stations - - - - - Total capital outlay - - - - - Debt service: Interest and paying agent fees 51,360 - - - - Total expenditures 51,360 - - - - Excess of revenues over(under)expenditures (51,360) 3,749 1,022 23,375 14,171 Other financing sources(uses): Operating transfers in - - - - - Operating transfers in-component units 341,360 - - - - Operating transfers out - (175,667) (47,907) (745,530) (664,074) Bond proceeds - - - - - Total other financing sources(uses) 341,360 (175,667) (47,907) (745,530) (664,074) Excess of revenues and other sources over(under)expenditures and other uscc 290,000 (171,918) (46,885) (722,155) (649,903) Fund balance-beginning (1,170,272) 171,918 46,885 1,328,326 649,903 Fund balance-ending $ (880,272) $ - $ - $ 606,171 $ - 66 EXHIBIT F-2 1985 Holliday Capital Creek Improvement 48 Sales MP EC Street Drainage Totals Project Assessments Tax Projects Coliseum Improvements Improvements 2001 2000 $ - $ - $ - $ 3,194,791 $ - $ - $ 3,194,791 $ - - 1,034 1,408 - - - 2,442 3,584 196,420 3,188 - 407,147 11,049 29,268 689,389 497,211 196,420 4,222 1,408 3,601,938 11,049 29,268 3,886,622 500,795 - - 24,651 - - - 24,651 18,000 - - - - - - - 26,934 - - - - 82,407 - 82,407 - -- - - 22,272 - - 22,272 - - - 22,272 82,407 - 104,679 - - - - 3,316,687 - - 3,316,687 - -- - 30,725 - - - 30,725 2,983,815 - - 30,725 3,316,687 - - 3,347,412 2,983,815 - - - - - - 51,360 67,262 - - 55,376 3,338,959 82,407 - 3,528,102 3,069,077 196,420 4,222 (53,968) 262,979 (71,358) 29,268 358,520 (2,595,216) - - - 6,846,025 1,000,000 2,648,430 10,494,455 - - - 1,481,000 259,595 - - 2,081,955 422,263 (3,285,551) - - - - - (4,918,729) - - - - 7,000,000 - - 7,000,000 - (3,285,551) - 1,481,000 14,105,620 1,000,000 2,648,430 14,657,681 422,263 (3,089,131) 4,222 1,427,032 14,368,599 928,642 2,677,698 15,016,201 (2,172,953) 4,428,198 60,069 108,780 - - - 5,623,807 7,796,760 $ 1,339,067 $ 64,291 $ 1,535,812 $ 14,368,599 $ 928,642 $ 2,677,698 $ 20,640,008 $ 5,623,807 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 courses 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, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 Municipal Kickapoo Golf Airport Airport ASSETS Current assets: Cash and cash equivalents $ 172,615 $ 231,807 $ 125,614 Investments - - - Receivables(net of allowance for uncollectible accounts): Customer and trade - - - Other City funds - - - Government agencies - - - Other 43 23,443 11,515 Inventory 66,474 - 21,873 Prepaid items 1,405 1,288 4,026 Total current assets 240,537 256,538 163,028 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 1,452,202 565,533 Machinery and equipment 47,525 16,283 60,179 Furniture and fixtures 3,175 36,705 - Motor vehicles and equipment - - - Construction in progress - - - 68,902 2,967,013 1,580,389 Less accumulated depreciation (26,351) (2,086,828) (75,422) Total plant and equipment 42,551 880,185 1,504,967 Other assets: Deferred charges - - - Total assets $ 283,088 $ 1,136,723 $ 1,667,995 67 EXHIBIT G-1 (Page 1 of 2) Water and Stormwater- Totals Transit Sanitation Sewer Drainage 2001 2000 $ - $ 7,976,670 $ 9,195,938 $ 287,345 $ 17,989,989 $ 15,260,259 - - - - - 4,500,824 - 701,586 2,909,815 101,072 3,712,473 3,364,348 - - - - - 398,032 54,837 - 51,419 - 106,256 43,645 - - 53,295 - 88,296 114,051 - - 677,812 - 766,159 828,063 - 85 2,815 - 9,619 5,969 54,837 8,678,341 12,891,094 388,417 22,672,792 24,515,191 - - 24,883,434 - 24,883,434 24,096,504 - - - - - 4,500 - - 119,591,856 - 119,591,856 - - - 16,701 - 16,701 96,303 - - 144,491,991 - 144,491,991 24,197,307 61,925 1,038,283 23,069,564 - 26,591,207 26,239,823 626,868 2,370,382 130,705,771 - 135,734,023 132,932,467 101,613 109,123 3,418,147 - 3,752,870 3,557,017 1,152 - 1,164 - 42,196 8,986 - - 1,235 - 1,235 1,235 - 467,469 4,253,830 - 4,721,299 2,095,829 791,558 3,985,257 161,449,711 - 170,842,830 164,835,357 (164,027) (1,017,500) (60,909,915) - (64,280,043) (61,768,421) 627,531 2,967,757 100,539,796 - 106,562,787 103,066,936 - - 3,132,055 - 3,132,055 2,019,318 $ 682,368 $ 11,646,098 $ 261,054,936 $ 388,417 $ 276,859,625 $ 153,798,752 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET(CONT'D.) SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 Municipal Kickapoo Golf Airport Airport LIABILITIES AND FUND EQUITY Current liabilities payable from current assets: Accounts payable-trade $ 33,592 $ 7,959 $ 13,332 Accrued payroll 6,209 333 1,827 Accrued vacation and sick leave 7,576 1,057 1,240 Payable to other City funds - - - Payable to government agencies 4,594 3,250 242 Other liabilities - - - Deferred revenue - - - Total current liabilities payable from current assets 51,971 12,599 16,641 Current liabilities payable from restricted assets: Contracts and trade - - - Revenue bonds-current maturities - - - Accrued interest- revenue bonds - - - Total current liabilities payable from restricted assets - - - Long-term liabilities: Payable to U.S. Government - - - Revenue bonds, less current maturities - - - 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 51,971 12,599 16,641 Fund equity: Contributed capital 8,279 2,292,192 1,600,000 Retained earnings (deficit): Reserved for revenue bond debt service - - - Unreserved 222,838 (1,168,068) 51,354 Total retained earnings (deficit) 222,838 (1,168,068) 51,354 Total fund equity 231,117 1,124,124 1,651,354 Total liabilities and fund equity $ 283,088 $ 1,136,723 $ 1,667,995 68 EXHIBIT G- 1 (Page 2 of 2) Watef and Stormwetec-- Totals Transit Sanitation Sewer Drainage 2001 2000 $ 31,612 $ 252,487 $ 770,857 $ - $ 1,109,839 $ 634,461 6,643 29,021 68,917 - 112,950 101,063 16.878 89,837 212..7.54 - 329,342 331,413 50,520 - 8,910 - 59,430 - - 37,112 - - 45,198 41,856 - 18,660 129,558 - 148,218 198,772 - - - - - 2,259 105,653 427,117 1,190,996 - 1,804,977 1,309,824 - - 8,025 - 8,025 8,025 - - 4,299,753 - 4,299,753 2,450,000 - - 950,604 - 950,604 467,138 - - 5,258,382 - 5,258,382 2,925,163 - - 832,565 - 832,565 856,671 - - 172,349,440 - 172,349,440 56,245,000 - 3,201,245 - - 3,201,245 3,138,476 - 3,201,245 173,182,005 - 176,383,250 60,240,147 - 2,066,807 - 2,066,807 2,031,094 105,653 3,628,362 181,698,190 - 185,513,416 66,506,228 831,471 2,909,150 20,663,761 - 28,304,853 27,900,254 - 8,570,885 - 8,570,885 8,209,707 (254,756) 5,108,586 50,122,100 388,417 54,470,471 51,182,563 (254,756) 5,108,586 58,692,985 388,417 63,041,356 59,392,270 576,715 8,017,736 79,356,746 388,417 91,346,209 87,292,524 $ 682,368 $ 11,646,098 $ 261,054,936 $ 388,417 $ 276,859,625 $ 153,798,752 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 Municipal Kickapoo Golf Airport Airport Operating revenues: Charges for services $ 660,394 $ - $ 8,106 Rents, concessions and other 107,689 375,449 319,477 Total operating revenues 768,083 375,449 327,583 Operating expenses: Personnel services 452,127 66,835 144,709 Supplies and materials 86,946 1,284 10,765 Maintenance and repairs 26,246 65,376 21,269 Utilities and other services 83,277 68,615 48,116 Insurance and contract support 4,110 4,346 12,418 Other expenses 71,089 43,048 4,050 Depreciation and amortization 8,887 85,420 50,315 Total operating expenses 732,682 334,924 291,642 Operating income (loss) 35,401 40,525 35,941 Nonoperating revenues (expenses): Interest income 697 8,941 684 Interest expense and paying agent fees - - - Intergovernmental operating grants - - - Total nonoperating revenues (expenses) 697 8,941 684 Income (loss) before operating transfers 36,098 49,466 36,625 Operating transfers: Operating transfers in - - - Operating transfers out (8,295) (19,907) - Net operating transfers (8,295) (19,907) - Net income 27,803 29,559 36,625 Retained earnings (deficit) - beginning 199,830 (1,197,627) 22,558 Residual equity transfers (4,795) - (7,829) Retained earnings (deficit) - ending $ 222,838 $(1,168,068) $ 51,354 69 EXHIBIT G-2 Water-and-- Stormwater - Totals Transit Sanitation Sewer Drainage 2001 2000 $ 202,180 $8,409,752 $ 25,565,695 $ 387,496 $ 35,233,623 $ 29,823,971 - 2,370 81,810 - 886,795 669,998 202,180 8,412,122 25,647,505 387,496 36,120,418 30,493,969 599,936 2,757,347 5,841,592 - 9,862,546 9,448,137 93,026 257,917 1,212,915 - 1,662,853 1,801,543 134,383 630,470 1,766,407 - 2,644,151 4,034,012 44,898 2,831,783 4,221,419 - 7,298,108 6,299,725 192,973 67,129 414,656 - 695,632 607,393 32,620 470,625 1,050,646 - 1,672,078 1,527,027 12,425 62,794 3,070,055 - 3,289,896 3,326,759 1,110,261 7,078,065 17,577,690 - 27,125,264 27,044,596 (908,081) 1,334,057 8,069,815 387,496 8,995,154 3,449,373 - 393,871 1,618,299 921 2,023,413 2,573,797 - - (2,761,955) - (2,761,955) (2,713,331) 815,917 - - - 815,917 603,710 815,917 393,871 (1,143,656) 921 77,375 464,176 (92,164) 1,727,928 6,926,159 388,417 9,072,529 3,913,549 151,739 - - - 151,739 275,849 - (424,310) (2,876,799) - (3,329,311) (1,647,789) 151,739 (424,310) (2,876,799) - (3,177,572) (1,371,940) 59,575 1,303,618 4,049,360 388,417 5,894,957 2,541,609 (245,656) 5,912,577 54,700,588 - 59,392,270 58,205,456 (68,675) (2,107,609) (56,963) - (2,245,871) (1,354,795) $ (254,756) $5,108,586 $ 58,692,985 $ 388,417 $ 63,041,356 $ 59,392,270 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30,2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 Municipal Kickapoo Golf Airport Airport Cash flows from operating activities: Operating income(loss) $ 35,401 $ 40,525 $ 35,941 Adjustments to reconcile operating income(loss) to net cash provided by(used in) operating activities: Depreciation and amortization 8,887 85,420 50,315 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) (12,566) 916 Inventory (18,373) - 8,885 Prepaid items (1,405) 5 152 Restricted assets-other receivables - - - Increase (decrease) in current liabilities: Accounts payable-trade 12,900 (4,820) (12,666) Accrued payroll 1,983 (341) 363 Accrued vacation and sick leave (2,977) (3,506) 907 Payable to other City funds - - - Payable to government agencies 705 3,422 (159) Deferred revenue - (2,258) - Other liabilities - - - Other liabilities payable from restricted assets - - - Total adjustments 1,677 65,356 48,713 Net cash provided by(used in) operating activities 37,078 105,881 84,654 Cash flows from noncapital financing activities: Intergovernmental operating grants - - - Operating transfers in from other funds - - - Operating transfers out to other funds (8,295) (19,907) - Residual equity transfers from other funds - - - Residual equity transfers to other funds (4,795) - (7,829) Net cash provided by(used in) noncapital financing activities (13,090) (19,907) (7,829) 70 EXHIBIT G-3 (Page 1 of 2) Water and Storrnwater- Totals Transit Sanitation Sewer Drainage 2001 2000 $ (908,081) $1,334,057 $ 8,069,815 $ 387,496 $ 8,995,154 $ 3,449,373 12,425 62,794 3,070,055 - 3,289,896 3,326,759 - - 35,713 - 35,713 65,441 - 62,769 - - 62,769 46,382 - 168,386 (415,439) (101,072) (348,125) (482,343) - 398,032 - 398,032 (398,032) (52,709) - (9,902) - (62,611) 115,961 - 22,449 - 10,756 (39,887) - 14,998 71,392 - 76,902 (8,952) - (2) 2,400 - 1,150 6,102 - - 79,602 - 79,602 (27,987) 24,357 71,089 384,346 - 475,206 (147,747) (209) 2,206 7,886 - 11,888 (262,190) 2,024 1,481 - (2,071) 21,089 50,520 - 8,910 - 59,430 (16,324) (454) - - 3,514 (5,119) - - - - (2,258) - - 3,225 (53,779) - (50,554) 145,979 - - - - - (116,272) 34,384 387,035 3,603,146 (101,072) 4,039,239 2,222,860 (873,697) 1,721,092 11,672,961 286,424 13,034,393 5,672,233 815,917 - - - 815,917 603,710 151,739 - - - 151,739 275,849 (424,310) (2,876,799) - (3,329,311) (1,647,789) - - - - 1,664,834 (68,675) (2,107,609) (56,963) - (2,245,871) (1,354,795) 898,981 (2,531,919) (2,933,762) - (4,607,526) (458,191) CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2000 Municipal Kickapoo Golf Airport Airport Cash flows from capital and related financing activities: Acquisition and construction of capital assets - (33,210) (1,015) Principal paid on long-term debt maturities - - - Interest paid on long-term debt obligations - - - Other assets Net cash provided by(used for) capital and related financing activities - (33,210) (1,015) Cash flows from investing activities: Maturity/sale of investments - - - Interest on investments 697 8,941 684 Net cash provided by investing activities 697 8,941 684 Net increase (decrease) in cash and cash equivalents 24,685 61,705 76,494 Cash and cash equivalents at beginning of year 147,930 170,102 49,120 Cash and cash equivalents at end of year $ 172,615 $ 231,807 $ 125,614 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 $ 172,615 $ 231,807 $ 125,614 Restricted assets- cash and cash equivalents - - - Total cash and cash equivalents at end of year $ 172,615 $ 231,807 $ 125,614 71 EXHIBIT G-3 (Page 2 of 2) Water and Stormwater Totals Transit Sanitation Sewer Drainage 2001 2000 (76,534) (807,848) (5,334,299) - (6,252,906) (6,679,303) - (2,474,106) - (2,474,106) (2,368,347) - - (2.711,931) - ,(2.711,931) (2,657,697) - - - - - 10,000 (76,534) (807,848) (10,520,336) - (11,438,943) (11,695,347) 504,405 4,000,918 - 4,505,323 994,900 - 393,871 1,618,299 921 2,023,413 2,573,797 - 898,276 5,619,217 921 6,528,736 3,568,697 (51,250) (720,399) 3,838 080 287,345 3,516,660 2 912608 51,250 8,697,069 30,241,292 - 39,356,763 42,269,371 $ - $7,976,670 $34,079,372 $ 287,345 $42,873,423 $39,356,763 $ - $ - $ 404,599 $ - $ 404,599 $ 294,395 - - 119,591,856 - 119,591,856 - $ - $7,976,670 $ 9,195,938 $ 287,345 $17,989,989 $15,260,259 - - 24,883,434 - 24,883,434 24,096,504 $ - $7,976,670 $34,079,372 $ 287,345 $42,873,423 $39,356,763 SMI S 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, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 Employee Fleet Duplicating Benefit Totals Maintenance Services Trust 2001 2000 ASSETS Current assets: Cash and cash equivalents $ 594,379 $ 30,216 $ 1,619,240 $ 2,243,835 $ 1,233,834 Receivables: Other 26,097 - - 26,097 9,237 Inventory 704,967 14,343 - 719,310 669,632 Prepaid items 4,499 5,477 - 9,976 4,494 Total current assets 1,329,942 50,036 1,619,240 2,999,218 1,917,197 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 - 103,129 - 103,129 - Furniture and fixtures 6,358 - - 6,358 6,358 Motor vehicles and equipment 31,328,014 - - 31,328,014 28,952,553 Construction in progress 190,541 - - 190,541 6,706 35,968,669 103,129 - 36,071,798 33,409,373 Less accumulated depreciation (20,574,752) (5,813) - (20,580,565) (18,718,645) Total plant and equipment 15,393,917 97,316 - 15,491,233 14,690,728 Total assets $ 16,723,859 $ 147,352 $ 1,619,240 $ 18,490,451 $ 16,607,925 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable-trade $ 155,940 $ 2,538 $ 21,746 $ 180,224 $ 243,022 Accrued payroll 18,540 614 1,494 20,648 19,236 Accrued vacation and sick leave 44,621 - - 44,621 42,355 Estimated health claims payable - - 679,732 679,732 575,296 Total current liabilities 219,101 3,152 702,972 925,225 879,909 Fund equity: Contributed capital 24,187,996 101,474 - 24,289,470 21,571,717 Retained earnings(deficit) (7,683,238) 42,726 916,268 (6,724,244) (5,843,701) Total fund equity 16,504,758 144,200 916,268 17,565,226 15,728,016 Total liabilities and fund equity $ 16,723,859 $ 147,352 $ 1,619,240 $ 18,490,451 $ 16,607,925 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, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 Employee Fleet Duplicating Benefit Totals Maintenance Services Trust 2001 2000 Operating revenues: Charges for services $ 6,727,216 $ 291,322 $ 33,571 $ 7,052,109 $ 6,029,744 Rents,concessions and other 64,477 - 369,314 433,791 227,014 Contributions - - 5,325,643 5,325,643 5,194,493 Total operating revenues 6,791,693 291,322 5,728,528 12,811,543 11,451,251 Operating expenses: Personnel services 1,433,450 67,804 140,062 1,641,316 1,485,574 Supplies and materials 2,004,453 54,475 2,940 2,061,868 1,731,211 Maintenance and repairs 1,510,555 15,896 - 1,526,451 1,557,116 Utilities and other services 73,956 2,191 9,273 85,420 76,233 Insurance and contract support 71,950 90 5,019,778 5,091,818 5,093,638 Other expenses 105,369 102,327 93,781 301,477 327,220 Depreciation and amortization 2,835,806 5,813 - 2,841,619 2,612,464 Total operating expenses 8,035,539 248,596 5,265,834 13,549,969 12,883,456 Operating income(loss) (1,243,846) 42,726 462,694 (738,426) (1,432,205) Nonoperating revenues(expenses): Interest income - - 69,250 69,250 34,420 Gain on sale of fixed assets 100,633 - - 100,633 303,941 Total nonoperating revenues (expenses) 100,633 - 69,250 169,883 338,361 Income(loss)before operating transfers (1,143,213) 42,726 531,944 (568,543) (1,093,844) Operating transfers: Operating transfers out (312,000) - - (312,000) (312,000) Net income(loss) (1,455,213) 42,726 531,944 (880,543) (1,405,844) Retained earnings(deficit)-beginning (6,228,025) - 384,324 (5,843,701) (4,437,857) Retained earnings(deficit)-ending $ (7,683,238) $ 42,726 $ 916,268 $ (6,724,244) $ (5,843,701) 73 EXHIBIT H-3 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 Employee Fleet Duplicating Benefit Totals Maintenance Services Trust 2001 2000 Cash flows from operating activities: Operating income(loss) $ (1,243,846) $ 42,726 $ 462,694 $ (738,426) $ (1,432,205) Adjustments to-reconcile operating income to net cash provided(used)by operating activities: Depreciation and amortization 2,835,806 5,813 - 2,841,619 2,612,464 (Increase)decrease in current assets: Receivables: Other City funds - - - - 777,789 Other (16,860) - - (16,860) 923 Inventory (35,335) (14,343) - (49,678) (17,332) Prepaid items (5) (5,477) - (5,482) (4,519) Increase(decrease)in current liabilities: Accounts payable-trade (64,707) 2,538 (629) (62,798) 48,346 Accrued payroll 704 614 94 1,412 (44,312) Accrued vacation and sick leave 2,266 - - 2,266 3,296 Payable to other City funds - - - - (224,329) Estimated health claims payable - - 104,436 104,436 31,409 Total adjustments 2,721,869 (10,855) 103,901 2,814,915 3,183,735 Net cash provided by operating activities 1,478,023 31,871 566,595 2,076,489 1,751,530 Cash flows from noncapital financing activities: Operating transfers out to other funds (312,000) - - (312,000) (312,000) Residual equity transfers from other funds 2,616,279 72,335 - 2,688,614 2,138,566 Net cash provided by noncapital financing activities 2,304,279 72,335 - 2,376,614 1,826,566 Cash flows from capital and related financing activities: Acquisition of capital assets (3,550,834) (73,990) - (3,624,824) (3,415,599) Proceeds from sale of fixed assets 112,472 - - 112,472 336,309 Net cash used for capital and related financing activities (3,438,362) (73,990) - (3,512,352) (3,079,290) Cash flows from investing activities: Interest on investments - - 69,250 69,250 34,420 Net increase in cash and cash equivalents 343,940 30,216 635,845 1,010,001 533,226 Cash and cash equivalents at beginning of year 250,439 - 983,395 1,233,834 700,608 Cash and cash equivalents at end of year $ 594,379 $ 30,216 $ 1,619,240 $ 2,243,835 $' 1,233,834 74 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, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 Expendable Nonexpendable Trust Trust Excess Cemetery Sales Tax Perpetual Fund Care ASSETS Cash and cash equivalents $ - $ 527,207 Receivables: Government agencies 299,618 - Total assets $ 299,618 $ 527,207 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable-trade $ - $ - Other liabilities - - Total liabilities - - Fund balance: Designated for: Subsequent years expenditures - - Debt service 299,618 - Perpetual care - 527,207 Total fund balance 299,618 527,207 Total liabilities and fund balance $ 299,618 $ 527,207 75 EXHIBIT I-1 Agency Funds Payroll Escheatment Totals Fund Fund 2001 2000 $ 368,592 $ 45,986 $ 941,785 $ 1,446,418 - - 299,618 462,093 $ 368,592 $ 45,986 $ 1,241,403 $ 1,908,511 $ 368,592 $ - $ 368,592 $ 527,235 45,986 45,986 44,180 368,592 45,986 414,578 571,415 - - - 874,965 - - 299,618- - 527,207 462,131 - - 826,825 1,337,096 $ 368,592 $ 45,986 $ 1,241,403 $ 1,908,511 EXHIBIT 1-2 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, 2001 AND 2000 2001 2000 Revenues: Taxes $ 299,618 $ 462,092 Miscellaneous revenue 32,658 23,864 Total revenues 332,276 485,956 Expenditures - - Excess revenues over(under) expenditures 332,276 485,956 Other financing uses: Operating transfers out (907,623) - Excess of revenues over(under) expenditures and other uses (575,347) 485,956 Fund balance, beginning 874,965 389,009 Fund balance, ending $ 299,618 $ 874,965 76 EXHIBIT 1-3 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, 2001 AND 2000 2001 2000 Operating revenue: Rents, concessions and other $ 39,930 $ 42,311 Operating expenses - - Operating income 39,930 42,311 Nonoperating revenue: Interest income 25,146 24,540 Net income 65,076 66,851 Fund balance, beginning 462,131 395,280 Fund balance, ending $ 527,207 $ 462,131 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, 2001 AND 2000 2001 2000 Cash flows from operating activities: Operating income $ 39,930 $ 42,311 Cash flows from investing activities: Interest on investments 25,146 24,540 Net increase in cash and cash equivalents 65,076 66,851 Cash and cash equivalents at beginning of year 462,131 395,280 Cash and cash equivalents at end of year $ 527,207 $ 462,131 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, 2001 Balance Balance 10/1/00 Additions Deductions 9/30/01 PAYROLL FUND ASSETS Cash and cash equivalents $ 527,235 $ 78,559,401 $ 78,718,044 $ 368,592 Total assets $ 527,235 $ 78,559,401 $ 78,718,044 $ 368,592 LIABILITIES Accounts payable-trade $ 527,235 $ 18,422,730 $ 18,581,373 $ 368,592 Other liabilities - 34,005,147 34,005,147 - Total liabilities $ 527,235 $ 52,427,877 $ 52,586,520 $ 368,592 ESCHEATMENT FUND ASSETS Cash and cash equivalents $ 44,180 $ 9,793 $ 7,987 $ 45,986 Total assets $ 44,180 $ 9,793 $ 7,987 $ 45,986 LIABILITIES Other liabilities $ 44,180 $ 15,437 $ 13,631 $ 45,986 Total liabilities $ 44,180 $ 15,437 $ 13,631 $ 45,986 TOTALS-ALL AGENCY FUNDS ASSETS Cash and cash equivalents $ 571,415 $ 78,569,194 $ 78,726,031 $ 414,578 Total assets $ 571,415 $ 78,569,194 $ 78,726,031 $ 414,578 LIABILITIES Accounts payable-trade $ 527,235 $ 18,422,730 $ 18,581,373 $ 368,592 Other liabilities 44,180 34,020,584 34,018,778 45,986 Total liabilities $ 571,415 $ 52,443,314 $ 52,600,151 $ 414,578 79 n r 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 Vemon'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, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 Wichita Falls Economic Wichita Falls Development 4B Sales Tax Corporation Corporation ASSETS Cash and cash equivalents $ 8,194,797 $ 4,613,704 Receivables: Taxes and assessments - - Government agencies 491,607 491,607 Plant and equipment: Land and betterments 140,480 - Buildings, systems and improvements 459,520 - Total assets $ 9,286,404 $ 5,105,311 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 28,248 $ - Payable to primary government - 1,535,812 Total liabilities 28,248 1,535,812 Equity and other credits: Investment in general fixed assets 600,000 - Fund balance: Reserved for encumbrances 1,449,949 800,000 Unreserved: Designated for subsequent years expenditures 7,208,207 2,769,499 Total equity and other credits 9,258,156 3,569,499 Total liabilities and fund balance $ 9,286,404 $ 5,105,311 80 EXHIBIT J-1 Wichita Falls Reinvestment Totals Zone #1 2001 2000 $ 488,969 $13,297,470 $ 8,536,866 6,254 6,254 14,671 983,214 954,600 140,480 140,480 459,520 459,520 $ 495,223 $14,886,938 $10,106,137 $ 6,917 $ 35,165 $ 1,000 1,535,812 362,385 6,917 1,570,977 363,385 600,000 600,000 2,249,949 - 488,306 10,466,012 9,142,752 488,306 13,315,961 9,742,752 $ 495,223 $14,886,938 $10,106,137 CITY OF,WICHITA FALLS, TEXAS DISCRETELY PRESENTED COMPONENT UNITS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SEPTEMBER 30, 2001 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2000 Wichita Falls Economic Wichita Falls Development 4B Sales Tax Corporation Corporation Revenues: Taxes $ 2,720,625 $ 2,720,625 Miscellaneous revenue 346,405 176,724 Total revenues 3,067,030 2,897,349 Expenditures: Current: Community development 301,824 175,000 Capital outlay - - Total expenditures 301,824 175,000 Excess revenues over expenditures 2,765,206 2,722,349 Other financing sources (uses): Operating transfers out- primary government - (1,822,360) Excess of revenues and other sources over(under) expenditures and other uses 2,765,206 899,989 Fund balance - beginning 5,892,950 2,669,510 Fund balance- ending $ 8,658,156 $ 3,569,499 81 EXHIBIT J-2 Wichita Falls Reinvestment Totals Zone#1 2001 2000 $ 175,143 $ 5,616,393 $ 5,510,899 24,062 547,191 486,814 199,205 6,163,584 5,997,713 31,596 508,420 874,807 600,000 31,596 508,420 1,474,807 167,609 5,655,164 4,522,906 (259,595) (2,081,955) (422,263) (91,986) 3,573,209 4,100,643 580,292 9,142,752 5,042,109 $ 488,306 $12,715,961 $ 9,142,752 r ..-1 V CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES SEPTEMBER 30, 2001 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 2002 $ 1,805,000 $ 1,168,309 $ 2,973,309 $ 3,574,753 $ 6,295,404 $ 9,870,157 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 $ 19,215,000 $ 6,834:081 ' $ 26,049,08t $ 136,359,193 $ 117,388,427 $ 253,747,620 (1)Includes amortization of bond premium of$1,634,193. 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 $ 725,000 $ 1,792,100 $ 2,517,100 $ 6,104,753 $ 9,255,813 $ 15,360,566 760,000 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 $ 40,290,000 $ 19,893,187 $ 60,183,187 $ 195,864,193 $ 144,115,695 $ 339,979,888 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE SEPTEMBER 30,2001 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 09/01/10 175,000 (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) 370,060 (2013) 18_5,000 (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 $ 3,360,000 $ 3,890,000 9,000,000 9,000,000 3,880,000 5,120,000 10,205,000 10,205,000 - 10,205,000 26,455,000 26,455,000 7,240,000 19,215,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2001 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 08/07/07 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 1998B (2/1,8/1) 190,000 (2001) 200,000 (2002) 210,000 (2003) 220,000 (2004) 230,000 (2005) 240 000 (2006) 250,000 (2007) 260,000 (2008) 270,000 (2009) 280,000 (2010) 295,000 (2011) 305,000 (2012) 320,000 (2013) 335,000 (2014) 350,000 (2015) 365,000 (2016) 385,000 (2017) 400,000 (2018) 84 EXHIBIT K-2 (Page 2 of 4) Bonds Retired or Authorized Issued Refunded Outstanding 12,830,000 12,830,000 5,110,000 7,720,000 5,360,000 5,360,000 2,040,000 3,320,000 5,500,000 5,500,000 585,000 4,915,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONTD.) SEPTEMBER 30,2001 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 08/0127 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 08101/16 100,000 (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 EXHIB IT K-2 (Page 3 of 4) Bonds Retired or Authorized Issued Refunded Outstanding 118,770,000 118,770,000 - 118,770,000 1,634,193 - 1,634,193 142,460,000 144,094,193 7,735,000 136,359,193 11,420,000 11,420,000 415.000 11,005,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2001 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 75,000 7,985,000 22,795,000 22,795,000 1,495,000 21,300,000 42,275,000 42,275,000 1,985,000 40,290,000 184,735,000 186,369,193 9,720,000 176,649,193 $ 211,190,000 $ 212,824,193 $ 16,960,000 $ 195,864,193 EXHIBIT K-3 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE COVERAGE-REVENUE BONDS SEPTEMBER 30,2001 Water and Sewer Revenue Bonds: Net income (Exhibit G-2) $ 4,049,360 Add: Depreciation and amortization $ 3,070,055 Loss on sale/abandonment of fixed assets - Interest expense and paying agent fees 2,761,955 Operating transfers out 2,876,799 8,708,809 Subtract: West Texas Utilities water revenues (432,929) Net earnings for determining debt service coverage $ 12,325,240 Priority Subordinate Lien Bonds(1) Lien Bonds Net earnings for determining debt service coverage $ 12,325,240 Principal and interest requirements to maturity $ 20,226,459 $60,183,187 Number of years remaining to pay bonds 17 t 17 Average annual principal and interest requirement 1,189,792 3,540,187 Minimum bond covenant debt service coverage x 1.25 x 1.10 Minimum debt service coverage requirement $ 1,487,240 $ 3,894,206 5,381,446 Excess over debt service coverage requirements $ 6,943,794 (1)The Water and Sewer System Priority Lien Revenue Bonds, Series 2001 of$118,770,000 are dated September 1,2001 and were sold September 3,2001. However,they were not delivered to the City until October 10,2001, after the City's year-end.Consequently,they are excluded from the debt service coverage computation pursuant to the opinion of the City's bond counsel. 87 EXHIBIT K-4 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS AND JOINT VENTURE ASSETS -BY SOURCES SEPTEMBER 30, 2001 AND 2000 2001 2000 General Fixed Assets: Land and betterments $ 23,387,429 $ 14,135,745 Buildings and improvements 27,664,965 16,336,574 Machinery and equipment 7,267,032 7,130,805 Furniture and fixtures 214,110 197,824 Motor vehicles and equipment 31,485 31,485 Construction in progress 4,467,627 34,187 Total general fixed assets 63,032,648 37,866,620 Joint Venture Assets: Investment in joint venture - 12,155,704 Total $ 63,032,648 $50,022,324 Investment in General Fixed Assets: From general obligation bonds $ 2,459,962 $ 2,459,962 From local revenues and contributions 40,735,677 15,664,256 From federal government contributions 2,835,779 2,741,172 From unidentified sources 17,001,230 17,001,230 Total investment in general fixed assets 63,032,648 37,866,620 Investment in Joint Venture Assets: From local revenues and contributions - 12,155,704 Total $ 63,032,648 $50,022,324 88 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS AND JOINT VENTURE ASSETS -BY SOURCES FOR THE YEAR ENDED SEPTEMBER 30, 2001 Buildings Machinery Land and and and Betterments Improvements Equipment General fixed assets and joint venture assets, October 1, 2000 $ 14,135,745 $ 16,336,574 $ 7,130,805 Additions: Expenditures from: Local revenues and contributions 13,500 1,096,146 307,057 Federal government contributions - - 94,607 Transfer of MPEC fixed assets, net of accumulated depreciation of$2,394,298 9,238,184 10,232,245 187,485 Deductions: Assets sold, traded, retired or transferred - - 452,922 Write off of investment in joint venture - - - General fixed assets and joint venture assets, September 30, 2001 $ 23,387,429 $ 27,664,965 $ 7,267,032 89 EXHIBIT K-5 Motor Furniture Vehicles Investment and and Construction in Joint Fixtures Equipment in Progress Venture Totals $ 197,824 $ 31,485 $ 34,187 $ 12,155,704 $ 50,022,324 4,350 - 3,337,198 - 4,758,251 - - - - 94,607 28,288 - 1,096,242 - 20,782,444 16,352 - - - 469,274 - - - 12,155,704 12,155,704 $ 214,110 $ 31,485 $ 4,467,627 $ - $ 63,032,648 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS AND JOINT VENTURE ASSETS -BY FUNCTION AND ACTIVITY SEPTEMBER 30, 2001 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 4,523,930 564,328 General Public Information - - 219,959 Building Maintenance - 1,076,622 31,010 Nondepartmental - 518,881 51,211 Municipal Court 230,000 313,818 142,689 Legal - - 2,254 City Clerk - - 6,700 Total administrative services 1,770,791 7,123,759 1,092,245 Police 1,108,614 1,374,498 2,951,612 Fire 252,461 4,456,502 263,183 Parks and recreation: Recreation 655,246 1,900,236 229,964 Park maintenance 8,943,251 1,016,451 54,425 Cemetery 20,200 - 7,772 Total parks and recreation 9,618,697 2,916,687 292,161 Accounting/finance: Accounting/finance - - 13,265 Information Systems - - 1,691,034 Purchasing - - 1,435 Total accounting/finance - - 1,705,734 Community development: Planning - - 71,104 Inspection - - 36,618 Code enforcement - - 73,892 Property management 1,161,884 420,891 44,596 Lake lot administration - - 1,018 Weed and Seed program - - 3,620 Total community development 1,161,884 420,891 230,848 Public works: Engineering 97,020 18,837 125,271 Street maintenance 28,547 86,373 20,692 Total public works 125,567 105,210 145,963 Health: Administration 34,820 1,003,005 161,465 General City nursing 76,411 1,123 99,239 Environmental health - - 6,088 Lab water pollution - - 41,893 Total health 111,231 1,004,128 308,685 Traffic and transportation - 31,045 89,116 Multi-Purpose Events Center 9,238,184 10,232,245 187,485 Total general fixed assets and joint venture assets $ 23,387,429 $ 27,664,965 $ 7,267,032 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 - - 5,656,778 - - - 219,959 - - - 1,107,632 - - - 570,092 4,043 - - 690,550 - - - 2,254 - - - 6,700 130,800 - - 10,117,595 11,788 - 54,699 5,501,211 1,755 - - 4,973,901 12,818 - - 2,798,264 - - - 10,014,127 - - - 27,972 12,818 - - 12,840,363 - - - 13,265 - - - 1,691,034 - - - 1,435 - - - 1,705,734 1,025 - - 72,129 - - - 36,618 - - - 73,892 - 31,485 - 1,658,856 - - - 1,018 - - - 3,620 1,025 31,485 - 1,846,133 3,355 - - 244,483 1,393 - - 137,005 4,748 - - 381,488 15,963 - - 1,215,253 5,447 - - 182,220 - - 6,088 - - - 41,893 21,410 - - 1,445,454 1,478 - - 121,639 28,288 - 4,412,928 24,099,130 $ 214,110 $ 31,485 $ 4,467,627 $ 63,032,648 EXHIBIT K-7 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS AND JOINT VENTURE ASSETS-BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED SEPTEMBER 30,2001 Beginning Ending Balance Balance 10/1/00 Additions Deletions Adjustments 9/30/01 Administrative services: Mayor and City Council $ 11,916 $ - $ - $ - $ 11,916 City Manager 1,487,724 - 23,437 - 1,464,287 Personnel/Risk Management 88,761 - 71,300 - 17,461 Martin Luther King Center 369,966 - - - 369,966 Library 5,640,528 16,250 - - 5,656,778 General Public Information 168,744 64,127 12,912 - 219,959 Duplicating Services 29.805 - 29,805 - - Building Maintenance 26,212 1,081,420 - - 1,107,632 Nondepartmental 570,092 - - 570,092 Municipal Court 696,420 4,320 10,190 - 690,550 Legal 2,254 - - - 2,254 City Clerk 6,700 - - - 6,700 Total administrative services 9,099,122 1,166,117 147,644 - 10,117,595 Police 5,401,504 104,703 4,996 - 5,501,211 Fire 4,960,180 13,721 - - 4,973,901 Parks and recreation: Recreation 2,798,264 - - - 2,798,264 Park maintenance 10,014,127 - - - 10,014,127 Cemetery 27,972 - - - 27,972 Total parks and recreation 12,840,363 - - - 12,840,363 Accounting/finance: Accounting/finance 13,265 - - - 13,265 Information Systems 1,854,350 140,315 303,631 - 1,691,034 Purchasing 1,435 - - - 1,435 Total accounting/finance 1,869,050 140,315 303,631 - 1,705,734 Community development: Planning 35,415 36,714 - - 72,129 Inspection 47,328 - 10,710 - 36,618 Code enforcement 73,892 - - - 73,892 Property management 1,656,473 4,676 2,293 - 1,658,856 Lake lot administration 1,018 - - - 1,018 Weed and Seed program - 3,620 - - 3,620 Total community development 1,814,126 45,010 13,003 - 1,846,133 Public works: Engineering 225,670 18,813 - - 244,483 Street Maintenance 137,005 - - - 137,005 Total public works 362,675 18,813 - - 381,488 Health: Administration 1,182,327 32,926 - - 1,215,253 General city nursing 182,220 - - - 182,220 Environmental health 6,088 - - - 6,088 Lab water pollution 33,814 8,079 - - 41,893 Total health 1,404,449 41,005 - - 1,445,454 Traffic and transportation 115,151 6,488 - - 121,639 Multi-Purpose Events Center 12,155,704 3,316,686 - 8,626,740 24,099,130 Total general fixed assets $ 50,022,324 $ 4,852,858 $ 469,274 $ 8,626,740 $ 63,032,648 91 EXHIBIT K-8 CITY OF WICHITA FALLS, TEXAS GOLF FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2001 Balance Balance 10/1/00 Additions Deletions 9/30/01 Plant and Equipment: Land and betterments $ 4,935 $ - $ - $ 4,935 Buildings and improvements 13,267 - - 13,267 Machinery and equipment 47,525 - - 47,525 Furniture and fixtures 3,175 - - 3,175 Total plant and equipment 68,902 - - 68,902 Accumulated Depreciation: Land and betterments 855 198 - 1,053 s Buildin9 systems improvements and im rovements 2,459 954 - 3,413 Machinery and equipment 13,039 7,417 - 20,456 Furniture and fixtures 1,111 318 - 1,429 Total accumulated depreciation 17,464 8,887 - 26,351 Net plant and equipment $ 51,438 $ (8,887) $ - $ 42,551 92 EXHIBIT K-9 CITY OF WICHITA FALLS, TEXAS MUNICIPAL AIRPORT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2001 Balance Balance 10/1/00 Additions Deletions 9/30/01 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 3,495 33,210 - 36,705 Total plant and equipment 2,933,803 33,210 - 2,967,013 Accumulated Depreciation: Land and betterments 1,206,708 53,757 - 1,260,465 Buildings and improvements 782,554 28,842 - 811,396 Machinery and equipment 10,167 986 - 11,153 Furniture and fixtures 1,979 1,835 - 3,814 Total accumulated depreciation 2,001,408 85,420 - 2,086,828 Net plant and equipment $ 932,395 $ (52,210) $ - $ 880,185 93 EXHIBIT K-10 CITY OF WICHITA FALLS, TEXAS KICKAPOO AIRPORT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30,2001 Balance Balance 10/1/00 Additions Deletions 9/30/01 Plant and Equipment: Land and betterments $ 954,677 $ - $ - $ 954,677 Buildings and improvements 565,533 - - 565,533 Machinery and equipment 59,164 1,015 - 60,179 Total plant and equipment 1,579,374 1,015 - 1,580,389 Accumulated Depreciation: Land and betterments 17,953 35,905 - 53,858 Buildings and improvements 5,727 11,454 - 17,181 Machinery and equipment 1,427 2,956 - 4,383 Total accumulated depreciation 25,107 50,315 - 75,422 Net plant and equipment $ 1,554,267 $ (49,300) $ - $ 1,504,967 94 EXHIBIT K-11 CITY OF WICHITA FALLS, TEXAS TRANSIT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2001 Balance Balance 10/1/00 Additions Deletions 9/30/01 Plant and Equipment: Land and betterments $ 61,925 $ - $ - $ 61,925 Buildings and improvements 626,868 - - 626,868 Machinery and equipment 25,079 76,534 - 101,613 Furniture and fixtures 1,152 - - 1,152 Total plant and equipment 715,024 76,534 - 791,558 Accumulated Depreciation: Buildings and improvements 132,496 7,848 - 140,344 Machinery and equipment 17,954 4,577 - 22,531 Furniture and fixtures 1,152 - - 1,152 Total accumulated depreciation 151,602 12,425 - 164,027 Net plant and equipment $ 563,422 $ 64,109 $ - $ 627,531 95 EXHIBIT K-12 CITY OF WICHITA FALLS, TEXAS SANITATION FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2001 Balance Balance 10/1/00 Additions Deletions 9/30/01 Plant and Equipment: Land and betterments $ 705,809 $ 332,474 $ - $1,038,283 Buildings and improvements 2,370,382 - - 2,370,382 Machinery and equipment 101,218 7,905 - 109,123 Construction in progress - 467,469 467,469 Total plant and equipment 3,177,409 807,848 - 3,985,257 Accumulated Depreciation: Land and betterments 33,485 1,628 - 35,113 Buildings and improvements 875,346 49,959 - 925,305 Machinery and equipment 45,875 11,207 - 57,082 Total accumulated depreciation 954,707 62,794 - 1,017,500 Net plant and equipment $2,222,702 $ 745,054 $ - $2,967,757 96 EXHIBIT K-13 CITY OF WICHITA FALLS, TEXAS WATER AND SEWER FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30,2001 Balance Balance 10/1/00 Additions Deletions Adjustments 9/30/01 Plant and Equipment: Land and betterments $ 23,050,654 $ 18,910 $ - $ - $ 23,069,564 Buildings,systems and improvements 127,904,215 1,520,207 648,562 1,929,911 130,705,771 Machinery and equipment 3,307,748 111,868 1,469 - 3,418,147 Furniture and fixtures 1,164 - - - 1,164 Motor vehicles 1,235 - - - 1,235 Construction in progress 2,095,829 4,087,912 - (1,929,911) 4,253,830 Total plant and equipment 156,360,845 5,738,897 650,031 - 161,449,711 Accumulated Depreciation: Land and betterments 7,142,768 243,632 - - 7,386,400 Buildings,systems and improvements 49,161,021 2,582,763 648,562 - 51,095,222 Machinery and equipment 2,312,442 115,358 1,469 - 2,426,331 Furniture and fixtures 669 58 - - 727 Motor vehicles 1,235 - - - 1,235 Total accumulated depreciation 58,618,135 2,941,811 650,031 - 60,909,915 Net plant and equipment $ 97,742,712 $ 2,797,086 $ - $ - $ 100,539,796 97 EXHIBIT K-14 CITY OF WICHITA FALLS, TEXAS FLEET MAINTENANCE FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2001 Balance Balance 10/1/00 Additions Deletions 9/30/01 Plant and Equipment: 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 28,952,553 3,400,630 1,025,169 31,328,014 Construction in progress 6,706 183,835 - 190,541 Total plant and equipment 33,409,373 3,584,465 1,025,169 35,968,669 Accumulated Depreciation: 1 Buildings and improvements 1,170,925 80,179 - 1,251,104 Furniture and equipment 5,767 181 - 5,948 Motor vehicles and equipment 17,541,953 2,755,446 979,699 19,317,700 1 Total accumulated depreciation 18,718,645 2,835,806 979,699 20,574,752 Net plant and equipment $ 14,690,728 $ 748,659 $ 45,470 $ 15,393,917 98 EXHIBIT K-15 CITY OF WICHITA FALLS, TEXAS DUPLICATING SERVICES FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2001 Balance Balance 10/1/00 Additions Deletions 9/30/01 Plant and Equipment: Machinery and equipment $ - $ 103,129 $ - $ 103,129 Accumulated Depreciation: Machinery and equipment - 5,813 - 5,813 Net plant and equipment $ - $ 97,316 $ - $ 97,316 99 EXHIBIT K-16 CITY OF WICHITA FALLS, TEXAS WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 2001 Balance Balance 10/1/00 Additions Deletions 9/30/01 Plant and Equipment: Land and betterments $ 140,480 $ - $ - $ 140,480 Buildings and improvements 459,520 - - 459,520 Net plant and equipment $ 600,000 $ - $ - $ 600,000 100 n Wichita` CITY OF WICHITA FALLS, TEXAS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (GENERAL FUND ONLY) - LAST TEN FISCAL YEARS (UNAUDITED) Fiscal Administrative Parks and Accounting Community Year Services Police Fire Recreation and Finance Development 1991-1992 $ 4,502,220 $ 8,970,402 $ 5,558,991 $ 2,555,542 $ 462,729 $ 229,485 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 10011995 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 7,567,934 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 • 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. 101 EXHIBIT L-1 Debt Service Interest Public Traffic and Capital Principal and Paying Works Health Transportation Outlay Retirement Agent Fees Totals $ 4,243,882 $ 2,156,485 $ 1,114,159 $ - $ - $ - $ 29,793,895 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 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 1991-1992 $24,535,787 $ 1,070,926 $ 604,905 $ 904,581 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 * 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. 102 EXHIBIT L-2 Intergovernmental r9 ental Miscellaneous Revenue Contributions Revenue To tals $ 1,380,734 $ - $ 925,466 $29,422,399 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 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 1991-1992 $14,663,529 $14,311,760 97.60% $ 343,769 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% 121,858 103 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 $14,655,529 99.95% $1,914,394 13.05% 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% 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 1991-1992 $ 1,741,946,628 $1,741,946,628 $467,647,449 $467,647,449 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 2,550,564,079 622,493,821 622,493,821 104 EXHIBIT L-4 Ratio of Total Total Assessed to Assessed Estimated Total Estimated Value Actual Value Actual Value $2,209,594,077 $2,209,594,077 100.00% 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% 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 1991-1992 $ 0.66 $ 0.31 $ 0.37 $ 0.35 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 Tax Levies 1991-1992 $ 14,629,075 $ 10,098,311 $ 1,574,916 $ 307,177 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 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. 105 EXHIBIT L-5 County Iowa Park Wichita Falls Education C.I.S.D. (3) I.S.D. (4) District (5) Totals $ - $ 0.39 $ 0.75 $ 2.83 - 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 $ - $ 8,181,795 $23,070,529 $57,861,803 - 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 EXHIBIT L-6 CITY OF WICHITA FALLS, TEXAS TEN LARGEST TAXPAYERS (UNAUDITED) SEPTEMBER 30, 2001 Percentage January 1, 2001 of Total Assessed Assessed Taxpayer Type of Business Valuation Valuation Southwestern Bell Telephone Utility $ 45,752,093 1.44% Texas Utilities Electric Utility 41,979,959 1.32% Sikes Coyote Mall LP Shopping Center . 38,595,000 1.22% Wal-Mart Retail Store 16,561,522 0.52% Time Warner Cable Television 15,280,380 0.48% Clinics of North Texas Medical Center 14,100,969 0.44% Lowe's Home Improvement Center Retail Store 12,852,479 0.41% Panhandle Manufacturing Manufacturing 10,330,374 0.33% Winn Dixie Grocery Store 10,253,236 0.32% United Supermarkets Grocery Store 9,583,059 0.30% Totals $ 215,289,071 6.78% 106 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 1991-1992 $ 238,496 $ 4,414 1.85% 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 * - - - * - 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. 107 n EXHIBIT L-8 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED) SEPTEMBER 30, 2001 Total assessed property value per 2000 tax roll $3,173,057,900 Maximum tax rate * $ 2.25/$100 Current tax rate for 2000 tax year .55194/$100 Maximum tax rate in excess of 2000 tax rate 1.69806/$100 Total legal debt margin $ 53,880,427 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 2000 tax rate is $.55194 per$100 assessed valuation. Maximum tax levy established by City Charter 108 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 1991-1992 97,700 $2,209,594,077 $ 22,860,000 $ 656,653 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 Sources: (1) City of Wichita Falls Planning Department for all years, except 2000-01 from U.S. Bureau of Census. 109 EXHIBIT L-9 Ratio of Net General Bonded Debt Net General Net General To Assessed Bonded Debt Bonded Debt Value Per Capita $22,203,347 1.00% $ 227 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 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 1991-1992 $ 755,000 $ 1,531,240 $ 2,286,240 $ 29,793,895 7.67% 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% 110 EXHIBIT L-11 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF DIRECT AND OVERLAPPING GENERAL BONDED DEBT (UNAUDITED) SEPTEMBER 30, 2001 Percentage Amount Gross Applicable Applicable General Bonded to City of to City of Debt (1) Wichita Falls (2) Wichita Falls Direct: City of Wichita Falls $ 19,215,000 100% $ 19,215,000 Overlapping: Wichita County 6,695,000 100% 6,695,000 Burkbumett Independent School District 18,635,609 25% 4,658,902 City View Independent School District 10,889,852 90% 9,800,867 Iowa Park Consolidated Independent School District 6,562,491 2% 131,250 Wichita Falls Independent School District 34,451,496 99% 34,106,981 Total overlapping 77,234,448 55,393,000 Total direct and overlapping bonded debt $ 96,449,448 $ 74,608,000 Sources: (1) Listed taxing jurisdictions (2) City of Wichita Falls Planning Department 111 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 1991-1992 $ 13,442,781 $ 9,127,566 $ 4,315,215 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 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) The Water and Sewer System Priority Lien Revenue Bonds, Series 2001 of $118,770,000 are dated September 1, 2001 and were sold September 3, 2001. However, they were not delivered to the City until October 10, 2001, after the City's year end. Consequently, they are excluded from the debt service coverage computation pursuant to the opinion of the City's bond counsel. 112 EXHIBIT L-12 Debt Service Requirement Principal Interest Total Coverage $ 725,000 $ 1,728,228 $2,453,228 1.76 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 (3) 2,567,085 (3) 5,122,085 (3) 2.41 EXHIBIT L-13 CITY OF WICHITA TA 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) 1991-1992 97,700 $ 26,053 13.1 15,620 7.5% 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% 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 113 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 * 1991-1992 $2,209,594,077 $ 49,894,023 Not Available 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 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. 114 EXHIBIT L-15 CITY OF WICHITA FALLS, TEXAS MISCELLANEOUS STATISTICAL DATA (UNAUDITED) SEPTEMBER 30, 2001 Date of incorporation 1889 Form of government Council - Manager Area 71 square miles Miles of streets 542 Number of street lights 7,377 Fire protection: Number of stations 8 Number of firemen and officers 143 Police protection: Number of stations 1 Number of police officers 169 Municipal water department: Number of consumers- active 33,432 Average daily production 24,280,000 gallons treated water Miles of water mains 712 Sewers: Number of customers- active 30,515 Miles of sanitary sewers 506 Miles of storm sewers (enclosed) approximately 41 Building permits issued: Number issued 10,541 Amount issued $102,578,860 Recreation and culture: Number of parks 40 with 1,100 acres Number of golf courses 4 Number of libraries 1 Number of volumes (books) 137,502 Employees - full-time 1,058 115 EXHIBIT L-16 (Page 1 of 5) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) SEPTEMBER 30, 2001 Insurance Code A Policy: Building and Contents Company: Williams-Dwyer Co. Policy Period: October 1, 2000 to October 1, 2001 Perils: Fire, Extended Coverage, Vandalism and Malicious Mischief, including Difference in Condition, Extra Expense, Valuable Papers, EDP, Demolition/CC Coverages: $67,208,315 Building and Contents $100,000 Extra Expense Deductible: $100,000 Coinsurance: Agreed Value, Replacement Cost Premium: $38,420 B Policy: Boiler and Machinery Company: Williams-Dwyer Co. Policy Period: October 1, 2000 to October 1, 2001 Perils: Comprehensive Blanket Coverage: $5,000,000 Per Occurrence Deductible: $1,000 Coinsurance: N/A Premium: $4,948 C Policy: Electronic Data Processing Equipment Company: Williams-Dwyer Co. Policy Period: October 1, 2000 to October 1, 2001 Perils: All Risks Coverage: $1,793,226 Deductible: $5,000 Coinsurance: 100% Premium: Included as sublimit under property coverages D Policy: Excess Workers' Compensation and Employer's Liability Company: Williams-Dwyer Co. Policy Period: October 1, 2000 to October 1, 2001 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: $20,449 116 EXHIBIT L-16 (Page 2 of 5) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.) SEPTEMBER 30, 2001 Insurance Code E Policy: Airport Liability (Municipal Airport) Company: Marsh Aviation Policy Period: March 17, 2001 to March 17, 2002 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 Airport) Company: Marsh Aviation Policy Period: March 17, 2001 to March 17, 2002 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 Airport) Company: Marsh Aviation Policy Period: March 17, 2001 to March 17, 2002 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 Airport) Company: Marsh Aviation Policy Period: March 17, 2001 to March 17, 2002 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: $2,375 117 EXHIBIT L-16 (Page 3 of 5) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.) SEPTEMBER 30, 2001 Insurance Code Policy: Public Official Bond Company: Fidelity & Deposit Company Bond No.: FD 09688496 Bond Period: June 27, 2001 to June 27, 2002 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, 2001 to August 1, 2002 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, 2001 to January 15, 2002 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, 1998 to October 1, 2001 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, 2001 to August 6, 2002 Insured: Director of Public Works- George Bonnett Coverage: $2,500 Premium: $50 118 EXHIBIT L-16 (Page 4 of 5) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.) SEPTEMBER 30, 2001 Insurance Code N Policy: Public Official Bond Company: Aetna Insurance Company Bond No.: S 100841241 Bond Period: August 24, 2001 to August 24, 2002 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: March 5, 2001 to March 5, 2002 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, 2001 to May 21, 2002 Insured: Municipal Court Judge- Larry Gillen Coverage: $2,500 Premium: $100 Q Policy: Health Insurance Company: U.S. Benefits Policy No.: City of Wichita Falls Employee Benefits Trust Policy Period: December 1, 2000 through November 30, 2001 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 incsurance company pays 100% of eligible expenses Premium: . $90,000 119 EXHIBIT L-16 (Page 5 of 5) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.) SEPTEMBER 30, 2001 Insurance Code R Policy: Dental Insurance Company: U.S. Benefits Policy No.: City of Wichita Falls Employee Benefits Trust Policy Period: December 1, 2000 through November 30, 2001 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, 2000 through September 30, 2001 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, 2001 to December 31, 2001 Perils: Death and Dismemberment Benefits Coverage: $25,000 Deductible: N/A Premium: Annual Estimate$338 120 7!. ‘ Telimaim ,,#,, ,,,. 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' • ?'^r.,hSC.`��Y�Xh h++�y��(( hr�,�[r� r� ,t+�ri.y+'�r}'.(�(?r r riri^. �t{'N'XXX C �f X*.0 'f'C ^£**r.% '' YKK: {:CXX' • , +44�.r1r+..{{ `4 ��SS,, r+..[[ ��(t+Cee�t +4.{ �t +4�,+.�F,r.,+4+.� r�rrh.�K,:r.� S Y YY X'{X.:44 Y YY't ^tX Y 'C +f . '.1 * qi, S'{Y'{•{•{+'{ . •{ : r % ••.:ti:.:.:: Mn•r,•?? n,? ,y+C rhr}. ?,4 r ? . . 2 .es,,�YEY• u'S 4. : • „ 2 '2 t{.^<.^ . }::::.: ,.. ;„z?f'ztt:t sahh� �� � � ��taz t €'z � ' Accounting/Finance Traffic and Transportation y rz?�t�t�t,�t � t( (xtXXt�x. � � a p •+ y �SY+C+C+C +C+t y"CYK'FY'C C'f'f C'f'CY Y'C�£ �t 1 D 11% r ti '. • , i�? Communit Develop ment r•r' Zk ** '� `' �$� a�a a+ 6% p Health 4% +s* * *d. .'+*�h +a of*a s*ah . Public Works 29% (UNAUDITED) 128 EXHIBIT M-9 CITY OF WICHITA FALLS, TEXAS GENERAL GOVERNMENTAL REVENUES (GENERAL FUND ONLY) 45 40 --------- 35 — .:.:*.t. i$JIJd 30 :>++ - pc.• z :r off %- • % ;44+� 25 �' ,,,.w:.., i +4, .. . . 4,,s, ..,....,,„, + 4. f' � k 4w4.44 +. ' •z;..f. = + r z +4. 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Years Ended September 30, 1999 2000 2001 (UNAUDITED) 130