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1999 Comprehensive Annual Financial Report PRELIMNARY DRAFT CITY OF IMCHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDEO SEPTEMBER 30, 1999 LETTER TO AUDIT COMMITTEE — MATHIS, WEST, HUFFINES & CO., P.C.CertifiedCapitalCenter•IndianaatSeventh Public Accountants P.O.Box 97000•Wichita Falls,Texas 76307-7000 (940)723-1471 • FAX(940)723-2251 http://www.mwhnc.com January 21, 2000 To the Audit Committee City of Wichita Falls, Texas We have audited the financial statements of the City of Wichita Falls, Texas (City) for the year ended September 30, 1999, and have issued our report thereon dated January 21, 2000. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Generally Accepted Auditing Standards, OMB Circular A-133 and State of Texas Single Audit Circular As stated in our engagement letter dated July 9, 1999, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with generally accepted accounting principles. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud, or other illegal acts may exist and not be detected by us. In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal and state program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133 and the State of Texas Single Audit Circular. As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit. Also, in accordance with OMB Circular A-133 and the State of Texas Single Audit Circular, we examined, on a test basis, evidence about the City's compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement applicable to each of its major federal and state programs for the purpose of expressing an opinion on the City's compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City are described in Note 2 to the financial statements. No new accounting policies were adopted Page Two and the application of existing policies was not changed during the year. We noted no transactions entered into by the City during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were (1) the allowance for uncollectible accounts and taxes (2) the useful lives for computing depreciation expense of fixed assets in the City's proprietary fund types and (3) the health claims payable. Management's estimates of the (1) allowance for uncollectible accounts is based on historical revenues and historical loss levels, (2) useful lives computing depreciation expense for fixed assets is based on historical useful lives of the assets, current usage of the assets, and anticipated current usage of new assets, and (3) health claims payable is based on the effects of inflation, recent claim settlement trends, including frequency of payouts, and other economic and social factors. We evaluated the key factors and assumptions used to develop the above estimates in determining that it is reasonable in relation to the financial statements taken as a whole. Significant Audit Adjustments We proposed three audit adjustments related to grant revenue recognition and one relative to the deferred charges incurred on the refunding of the 1990A Water and Sewer Revenue Bonds. Additionally, we made several financial statement reclassification entries. Though the adjustments were necessary to make the financial statements materially correct, none were considered caused as the result of fraud or other illegal acts. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the general purpose financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's general purpose financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 1 I Page Three Difficulties Encountered in Performina the Audit We encountered no significant difficulties in dealing with management in performing our audit. Other Comments and Recommendations During the audit, we noted a few areas that we believe warrant the attention of the Audit Committee. These areas are included in Attachment Ito this letter. Summary Comments This information is intended solely for the use of the Audit Committee of the City of Wichita Falls, Texas and management of the City of Wichita Falls, Texas and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, Mathis, West, Huffines & Co., P.C. 1 City of Wichita Falls, Texas Letter to Audit Committee I Attachment I I PRIOR YEAR COMMENTS As the result of our audit for the year ended September 30, 1998, we noted a few items we communicated to the Audit Committee in our Comments and Recommendations Regarding Internal Control and Accounting Procedures dated January 29, 1999. These comments and recommendations related to financial reporting, grant reports, finance personnel utilization, communications with the auditors, and Year 2000 issues. During the audit for the year ended September 30, 1999, we reviewed all of these items and believe the City has made improvements in each of them, except for the Year 2000 issues, which was simply an informational comment. The Single Audit report for the year ended September 30, 1998 indicated two findings and questioned costs relative to the Local Law Enforcement Block Grant. One finding and questioned cost related to the documentation for the overtime charged to the grant and the other related to the filing of grant reports. The required reports for the grant were accurately completed and filed during the year ended September 30, 1999. However, the finding and questioned cost relating to the overtime documentation is still pending with the Department of Justice as of the date of this letter. I CURRENT YEAR COMMENTS Encumbrance Accounting/Budaetina 111 The use of encumbrance accounting provides a governmental unit a method to control expenditures and enhance cash flows through accounting for commitments related to contracts not yet performed. Though almost all of the City's departments utilize encumbrance accounting, a few do not. The largest department not utilizing encumbrance accounting is Fleet Maintenance. Additionally, we noticed budget amendments and transfers made after year-end. The review of the expenditures to the budget should be closely monitored throughout the year to ensure proper account coding and the control of City expenditures. If this is done, limited year-end budget amendments and transfers should be needed, especially after year-end, and will increase the City's control expenditures. Consequently, we recommend that the City implement encumbrance accounting for all departments and continue to monitor and review the City's expenditures and budgeted amounts throughout the year. Resale of Administrative and Data Processing Services Annually, the City prepares a Cost Allocation Plan (CAP) for the Community Development Block Grant (CDBG) program. Once the CAP is submitted and approved by the U.S. Department of Housing and Urban Development, it allows the City to allocate a portion of the administrative and data processing service costs to several different programs and funds. However, not all of the City's grant programs and funds are included in the CAP. We recommend that the City closely review the specific requirements and regulations for preparing the CAP to see if additional City grant programs and funds could be included. If so, the City may be able to allocate additional administrative and data processing service costs. If this can be done, some of the City's 'overhead' may be reimbursable from other federal and state grants and it would provide the City with a more accurate accounting for the use of those services. Lastly, the City provides all of the accounting functions for the Multi-Purpose Events Center Joint Venture, which is a joint venture between the City and Wichita County. However, no administrative and data processing service costs have been allocated (charged) to them since its formation. We recommend that the City review this practice as well. r City of Wichita Falls, Texas Letter to Audit Committee (Cont'd) Attachment I Employee Benefit Trust The City's Employee Benefit Trust (EBT) provides health and welfare benefits, which includes life, accidental death and dismemberment, disability, medical and dental insurance, to its employees. EBT is funded by contributions from the City and employees who choose to participate. Basically, EBT is a self- funded plan for medical claims, though catastrophic coverage is maintained. During the year ended September 30, 1999, EBT incurred a $1.4 million operating loss. When this loss was determined, the City had to find additional funding from various City funds and departments, which was done retroactively to September 30, 1999. It was noted that the City has made changes to increase the funding from the City and its employees effective for the year ended September 30, 2000. Furthermore, it was revealed to us that the EBT trustees did not meet at all during the year ended September 30, 1999 and met only once on November 3, 1999 to review the deficit operations and review some cost sharing arrangements. We recommend that the EBT trustees meet more frequently to review EBT's operations, including the assurance that the change in the funding is adequate and to monitor the cost of claims incurred. Also, the City should continue to consider alternatives to the self-funded plan currently in place. 1 SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS CITY OF WICHITA FALLS, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 1999 TABLE OF CONTENTS Page Independent Auditor's Report on Compliance With Requirements Applicable to Each Major Program, Internal Control Over Compliance in Accordance With OMB Circular A-133 and the State of Texas Single Audit Circular, and Schedule of Expenditures of Federal and State Awards 1-2 Schedule of Expenditures of Federal and State Awards 3-6 Notes to Schedule of Expenditures of Federal and State Awards 7 Independent Auditor's Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 8-9 Schedule of Findings and Questioned Costs 10 Corrective Action Plan 11 Summary Schedule of Prior Audit Findings 12-13 ,.._. .........„ _ 1`r _ MATHIS, WEST, HUFFINES & CO., P.C. Capital Center • Indiana at Seventh — Certified Public Accountants P.O. Box MWH • Wichita Falls,Texas 76307-7509 J _L (940)723-1471 FAX(940)723-2251 Email mwh@mwhpc.com Independent Auditor's Report on Compliance With Requirements Applicable to Each Major Program, Internal Control Over Compliance in Accordance With OMB Circular A-133 and the State of Texas Single Audit Circular, and Schedule of Expenditures of Federal and State Awards The Honorable Mayor and Members of the City Council City of Wichita Falls, Texas Compliance We have audited the compliance of the City of Wichita Falls, Texas with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) CircularA-133 Compliance Supplement and the State of Texas Single Audit Circular that are applicable to its major federal and state programs for the year ended September 30, 1999. The City of Wichita Falls, Texas' major federal and state programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal and state programs is the responsibility of the City of Wichita Falls, Texas' management. Our responsibility is to express an opinion on the City of Wichita Falls, Texas' compliance based on our audit. We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the State of Texas Single Audit Circular. Those standards, OMB Circular A-133, and the State of Texas Single Audit Circular require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal or state program occurred. An audit includes examining, on a test basis, evidence about the City of Wichita Falls, Texas' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City of Wichita Falls, Texas' compliance with those requirements. In our opinion, the City of Wichita Falls, Texas complied, in all material respects, with the requirements referred to above that are applicable to its major federal and state programs for the year ended September 30, 1999. Internal Control Over Compliance The management of the City of Wichita Falls, Texas is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal and state programs. In planning and performing our audit, we considered the City of Wichita Falls, Texas' internal control over compliance with requirements that could have a direct and material effect on a major federal or state program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133 and the State of Texas Single Audit Circular. 1 Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal or state program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. Schedule of Expenditures of Federal and State Awards We have audited the general purpose financial statements of the City of Wichita Falls, Texas as of and for the year ended September 30, 1999, and have issued our report thereon dated January 21, 2000. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying schedule of expenditures of federal and state awards is presented for purposes of additional analysis as required by OMB Circular A-133 and the State of Texas Single Audit Circular, and is not a required part of the general purpose financial statements of the City of Wichita Falls, Texas. Such 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. This report is intended for the information of City management, others within the organization, City Council, and federal and state awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. MATHIS, WEST, HUFFINES & CO., P.C. Wichita Falls, Texas January 21, 2000 2 CITY OF WICHITA FALLS, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 1999 Amount Federal Expenditures Relating to Federal Grantor/Pass-Through Contract CFDA and Pass-Through Grantor/Program Title Number Number Indirect Costs to Subrecipients FEDERAL AWARDS: U.S.Department of Aariculture Passed Through Texas Department of Health: Special Supplemental Food Program for Women, Infants and Children 7560007142 99-10 10.557 $ 444,634 $ - Total U.S. Department of Agriculture 444,634 - U.S.Department of Housing and Urban Development Direct Programs: Community Development Block Grant/ Entitlement Grant N/A 14.218 1,560,651 256,307 Section 8 Rental Voucher Program FW-5443V 14.855 1,034,072 - Section 8 Rental Certificate Program FW-5443E 14.857 1,500,108 - HOME Investment Partnership Program N/A 14.239 564,729 - Total Direct Programs 4,659,560 256,307 Passed Through Texas Department of Health: Housing Opportunity for Persons with AIDS 7560007142 99-02A 14.241 7,121 - Housing Opportunity for Persons with AIDS 7560007142-00-02A 14.241 20,931 - Total Passed through Texas Department of Health 28,052 - Total U.S. Department of Housing and Urban Development 4,687,612 256,307 U.S.Department of Justice Direct Programs: Executive Office f Weed and Seed: Weed and Seed 98-WS-Q8-0120 16.595 211,099 211,099 Total Executive Office of Weed and Seed 211,099 211,099 Bureau of Justice Assistance: Local Law Enforcement Block Grant 97-LB-VX-2089 16.592 67,082 - Local Law Enforcement Block Grant 98-LB-VX-2089 16.592 70,907 - Total Bureau of Justice Assistance 137,989 - Office of Community Oriented Policing Services: COPS Universal Hiring Program 1999-UM-WX-2794 16.710 23,460 - Total Office of Community Oriented Policing Services 23,460 - Total Direct Programs 372,548 211,099 3 CITY OF WICHITA FALLS, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS (CONTD.) FOR THE YEAR ENDED SEPTEMBER 30, 1999 Amount Federal Expenditures Relating to Federal Grantor/Pass-Through Contract CFDA and Pass-Through Grantor/Program Title Number Number Indirect Costs to Subrecipients FEDERAL AWARDS(CONT'D.): Passed Through State of Texas, Office of the Governor,Criminal Justice Division: Anti-Drug Abuse Formula Grant-NTRNTF DB-98-N0411985 16.579 315,059 - Anti-Drug Abuse Formula Grant-NTRNTF DB-99-N04-13843 16.579 131,681 - Total Passed through State of Texas, Office of the Governor, Criminal Justice Division 446,740 - Total U.S. Department of Justice 819,288 211,099 U.S. Department of Transportation Direct Programs: Federal Transit Administration: Airport Improvement Program N/A 20.106 71,415 - Federal Transit Administration: Federal Transit Capital and Operating Assistance Formula Grants N/A 20.507 306,439 - Total Direct Programs 377,854 - Passed Through Texas Department of Transportation: Urban Transportation Study FHWA PL0011(20)/FTA Section 5303 PL0011(22) 20.205 74,104 74,104 Total U.S. Department of Transportation 451,958 74,104 U.S. Department of the Treasury Direct Programs: Revenue Sharing N/A 21.300 7 7 Total U.S. Department of the Treasury 7 7 Federal Emergencv Management Aaencv Passed Through Texas Department Of Public Safety, Division of Emergency Management: Emergency Management-State and Local Assistance 1-7560007142-000 83.534 24,070 24,070 Total Federal Emergency Management Agency 24,070 24,070 4 CITY OF WICHITA FALLS, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1999 Amount Federal Expenditures Relating to Federal Grantor/Pass-Through Contract CFDA and Pass-Through Grantor/Program Title Number Number Indirect Costs to Subrecipients FEDERAL AWARDS(CONTD.): U.S. Department of Health and Human Services Passed Through Texas Department of Health: HIV Formula Grant-Care Consortium 7560007142-99-03 93.917 93,460 - HIV Formula Grant-Care Consortium 7560007142 00-03 93.917 64,375 - HIV Prevention Activities-CTRPN 7560007142 99-01 93.940 15,093 - HIV Prevention Activities-CTRPN 7560007142 00-01 93.940 55,111 - Preventive Health and Health Services Grant- Community and Rural Health 7560007142 99-07 93.991 238,961 - Preventive Health and Health Services Grant- Community and Rural Health 7560007142 00-09 93.991 32,073 - Total U.S. Department of Health and Human Services 499,073 - Total Expenditures of Federal Awards 6,926,642 565,587.00 STATE AWARDS: Texas Department of Health Sexually Transmitted Diseases-HIV 7560007142 99-04 N/A 41,631 - Sexually Transmitted Disea-cG-HIV 7560007142 00-05 N/A 4,952 - Women and Children-Family Health-Core 7560007142 99-09 N/A 41,562 - Women and Children-Family Health-Fees 7560007142 A99-01 N/A 106,409 - Women and Children-Family Health-Core 7560007142 00-10 N/A 3,778 - Women and Children-Family Health-Fees 7560007142 A00-01 N/A 7,046 - Women and Children-Family Health-Children's Health Insurance Program 7560007142 99-13 N/A 4,281 - HIV-Health and Social Services 7560007142 99-05 N/A 45,096 - HIV-Health and Social Services 7560007142 00-08 N/A 1,717 - Tuberculosis-Prevention and Control 7560007142 99-06 N/A 55,622 - Tuberculosis-Prevention and Control 7560007142 00-08 N/A 8,287 - HIV-Early Intervention 7560007142 99-12 N/A 91,000 - HIV-Early Intervention 7560007142 00-06 N/A 9,894 - Immunizations-Epidemiology 7560007142 00 08 N/A 46,061 - Immunizations-Epidemiology 7560007142 00-07 N/A 6,241 - Texas Diabetes Program 7560007142 99-11 N/A 65,141 - Texas Diabetes Program 7560007142 00-11 N/A 9,964 - Total Texas Department of Health 548,682 - 5 CITY OF WICHITA FALLS, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1999 Amount Federal Expenditures Relating to Federal Grantor/Pass-Through Contract CFDA and Pass-Through Grantor/Proaram Title Number Number Indirect Costs to Subrecipients STATE AWARDS(CONTD.): Texas Natural Resource Conservation Commission Passed Through Nortex Regional Planning Commission: Curbside Recycling Containers 99-03-G02 N/A 14,695 - Regional Solid Waste Grant 99-03-G07 N/A 4,440 - Total Texas Natural Resource Conservation Commission 19,135 - Texas Department of Transportation Transit Planning,Capital and Operating Formula Grant 51903F1020 N/A 270,138 - Transit Planning, Capital and Operating Formula Grant 51003F1020 N/A 27,988 - Total Texas Department of Transportation 298,126 - Texas Parks and Wildlife Kid Fish Community Development Grant F-112-D N/A 3,983 - Boat Ramp Program-Lake Wichita F-108-D(C) N/A 67,341 - I Boat Ramp Program-Lake Kickapoo SBF 66-03-070-005 N/A 233 - Total Texas Parks and Wildlife 71,557 - Other State of Texas Grant Funds Texas Tobacco Compliance N/A N/A 6,447 - Telecommunications Infrastructure Fund Board-Library QE-1997-LCB-482 N/A 2,163 - Telecommunications Infrastructure Fund Board-Health QE-1998-1 C1 C-1853 N/A 88,527 - Texas Forest Service N/A N/A 7,500 - Total Other State of Texas Grant Funds 104,637 - Total Expenditures of State Awards 970,580 - Total Expenditures of Federal and State Awards $ 7,897,272 $ 565,587 6 CITY OF WICHITA FALLS, TEXAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 1999 Note 1 - GENERAL The accompanying Schedule of Expenditures of Federal and State Awards presents the activity of all federal and state awards of the City of Wichita Falls,Texas (the"City"). The City reporting entity is defined in Note 1 to the City's general purpose financial statements. All financial assistance received directly from federal or state agencies as well as federal or state financial assistance passed through other government agencies are included on these schedules. Note 2 - BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources measurement focus. Most federal and state grant funds were accounted for in the Special Revenue Funds, a component of the Governmental Fund types. 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. The modified accrual basis of accounting is used for the Governmental Fund types. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable. Federal and state grant funds are ordinarily considered to be earned to the extent of expenditures made under the provisions of the grant and, accordingly,when such funds are received, they are recorded as deferred revenues until earned. Note 3 - CONTINGENCIES The City participates in numerous federal and state programs, 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, and the Home Investment Partnership Agreement Program. In connection with these programs, 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. Since such programs are subject to 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. 7 _ 1_r _ MATHIS, WEST, HUFFINES & CO., P.C. Capital Center • Indiana at Seventh Certified Public Accountants P.O. Box MWH •• Wichita Falls,Texas 76307-7509 J } (940)723-1471 • FAX(940)723-2251 LEmail mwh«mwhpFc.com ',.:,;,:•,.. ,.'., Independent Auditor's Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards The Honorable Mayor and Members of the City Council City of Wichita Falls, Texas We have audited the general purpose financial statements of the City of Wichita Falls, Texas as of and for the year ended September 30, 1999, and have issued our report thereon dated January 21, 2000. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the City of Wichita Falls, Texas' general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly,we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit,we considered the City of Wichita Falls, Texas' internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. 8 This report is intended for the information of City management, others within the organization, City Council, and federal and state awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. MATHIS, WEST, HUFFINES & CO., P.C. Wichita Falls, Texas January 21, 2000 9 CITY OF WICHITA FALLS, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 1999 A. Summary of Auditor's Results An unqualified opinion was issued on the general purpose financial statements. The audit disclosed no noncompliance which is material to the general purpose financial statements. An unqualified opinion was issued on compliance for major programs. The audit disclosed no audit findings which are required to be reported in this schedule under OMB Circular A-133 or under the State of Texas Single Audit Circular. Major programs are as follows: Federal: 10.557 Special Supplemental Food Program for Women, Infants and Children 14.239 HOME Investment Partnership Program 16.592 Local Law Enforcement Block Grant 16.579 Anti-Drug Abuse Formula Grant— NTRNTF 20.507 Federal Transit Capital and Operating Assistance Formula Grants State: Transit Planning, Capital and Operating Formula Grant The threshold used to distinguish between Type A and Type B federal and state programs was $300,000. The City was classified as a low-risk auditee in the context of OMB Circular A-133 and the State of Texas Single Audit Circular. B. Findings Relating to the Financial Statements which are Required to be Reported in Accordance with Generally Accepted Government Auditina Standards NONE C. Findings and Questioned Costs for Federal and State Awards NONE 10 CITY OF WICHITA FALLS, TEXAS CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 1999 There are no current year audit findings or questioned costs. 11 CITY OF WICHITA FALLS, TEXAS SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED SEPTEMBER 30, 1999 Questioned Program Finding/Noncompliance Costs 98-1 - Local Law During the year ended September 30, 1998, the City participated in the $63,006 Enforcement Local Law Enforcement Block Grant(CFDA#16.592, Contract#97-LB- Block Grant VX-2089). A portion of this grant was expended on police overtime. The City produced general records documenting new program initiatives which required additional overtime and which were paid for by the grant. However, they could not provide specific information to document that these new programs resulted in $63,006 in overtime, which was the amount charged to the grant. Consequently, there appeared to be a lack of adequate, specific documentation to substantiate that these new programs entirely supplemented the normal pattern of police overtime paid by the City. The City has since recognized the need to improve on the method in which police overtime charges were documented for grant program purposes. As a result, current operating procedures require the operating department to submit separate time sheet reports on a recurring basis to the Finance Department to substantiate overtime charges to a grant program. Prior to charging any overtime costs to a grant program, the Finance Department now verifies that these time sheet reports have been submitted for reimbursement purposes. 98-2- Local Law For the year ended September 30, 1998, the City received federal -0- Enforcement funds to participate in the Local Law Enforcement Block Grant (CFDA Block Grant #16.592). In order to comply with reporting requirements, the U.S. Department of Justice requires the City to submit Financial Status Reports and Program Progress Reports. The following is a summary of each required report. Financial Status Reports For each grant received, the City is required to submit quarterly financial reports within 45 days of each calendar quarter. The following quarterly Financial Status Reports were not filed timely: Grant#: 97-LB-VX-2089 Funding/Grant Period: 10/1/97 - 9/30/99 Quarter Ended Due Date Date Filed 12/31/97 2/15/98 4/23/98 9/30/98 11/15/98 12/11/98 12 CITY OF WICHITA FALLS, TEXAS SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1999 Questioned Program Finding/Noncompliance Costs Grant#: 96-LB-VX-0598 Funding/Grant Period: 10/1/96- 9/30/98 Quarter Ended Due Date Date Filed 12/31/97 2/15/98 4/23/98 9/30/98 11/15/98 12/10/98 In addition, the final report filed for the quarter ended 9/30/98 filed 12/10/98 for the 1996 grant reported an incorrect local cash match of $6,544. Consequently, an amended report dated 3/25/99 was filed to report the correct local cash match of$32,817. The City has identified that a software system conversion resulted in the delays in submitted quarterly Financial Status Reports. Once the data that was necessary for the grant reports was converted to the new system, these reports were filed as soon as possible. Since then, the City has remained current with the quarterly financial reports of its grant programs. Additionally, the Finance Department has implemented a monthly task checklist that includes an item for quarterly Financial Status Reports to ensure that these reports are submitted in a timely manner. Program Progress Reports For each grant received, the City is required to submit progress reports. An initial quarterly progress report for the first full calendar quarter, followed by semiannual reports for the remainder of the grant period, are required to be submitted within 30 days following the end of that reporting period. The progress reports should describe activities during the reporting period and the status of objectives as set forth in the approved award application. A final report summarizing the program's activities and significant results is due within 120 days of the grant's end date. For the year ended September 30, 1998, the City did not file any program progress reports for grant #97-LB-VX-2089 or grant #96-LB- VX-0598. The City has since filed all required program progress reports for the applicable grant periods. Additionally, the Finance Department has implemented a monthly task checklist that includes an item for program progress reports to ensure that these reports are submitted in a timely manner. 13 COMPREHENSIVE ANNUAL FINANCIAL REPORT Excludes the following: Table of Contents Letter of Transmittal Organizational Chart City's cost of life insurance benefits paid to retired individuals(Note 23) Graphs CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1999 ISSUED BY: DEPARTMENT OF FINANCE INTRODUCTORY SECTION CITY OF WICHITA FALLS, TEXAS LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30, 1999 Title Name Mayor Kathryn Yeager Mayor Pro-Tern Dan Shine City Council Member James Esther, Jr. City Council Member Bill Altman City Council Member Johnny Bums City Council Member Bud Beaty City Council Member Arthur Bea Williams City Manager James Berzina City Attorney Gregory Humbach Municipal Court Judge Larry Gillen City Clerk Lydia Torres Assistant City Manager Robert Powers 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 Police Chief Ken Coughlin Fire Chief Ronnie James Director of Parks and Recreation Jack Murphy Director of Public Works and Public Utilities George Bonnett, P.E. xv FINANCIAL SECTION i_r T1 MATHIS, WEST, HUFFINES & CO., P.C. Capital Center • Indiana at Seventh ,•rtin,d Public Accountant, P.O. Box MWH • Wichita Falls,Texas 76307-7509 (9401 723-1471 FAX(9401 723-2251 Email mwh a 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, 1999, 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 generally accepted auditing standards 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, 1999, 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 generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated January 21, 2000, 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. In addition, we do not provide assurance that the City of Wichita Falls, Texas' Year 2000 remediation efforts will be successful in whole or part, or that parties with which the City of Wichita Falls, Texas does business are or will become Year 2000 compliant. 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 21, 2000 2 GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF WICHITA FALLS, TEXAS COMBINED BALANCE SHEET -ALL FUNDS TYPES,ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1998 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 $ 7,966,212 $3,022,358 $ 1,561,889 $6,309,091 $ 18,951,201 $ 700,608 Investments 2,998,125 - - - 5,492,224 - Receivables(net of allowance for uncollectible accounts): Taxes and assessments 778,370 82,491 146,864 - - - Customer and trade - - - - 2,882,005 - OtherCityfunds 1,121,204 - - - 777,789 Component unit - - _ 3,028,157 - - Government agencies 2,648,461 3,806,068 15,1391 - 159,606 Other 681,063 7,185 - 10,687 74,164 10,160 Inventory 35,152 - - - 798,485 652,300 Prepaid items 34,960 18,000 - - 12,071 225 Restricted assets: Cash and cash equivalents - - - - 23,318,170 - Investments - - - - 8,000 - Receivables: Other - - - 68,316 - Plant and equipment: Land and betterments - - - - 25,285,146 433,658 Buildings,systems and improvements - - - - 125,910,876 4,010,098 Machinery and equipment - - - 3,361,434 - Furniture and fixtures - - - - 8,986 6,358 Motor vehicles and equipment - - - - 1,235 27,438,878 Construction in progress - - - - 3,314,608 6,706 Accumulated depreciation - - - - (58,569,907) (17 975,987) Net investment in joint venture - - - Deferred charges - - - 2,220,772 - Other assets - 3,000 - - 10,000 - Other debits: Amount available for debt service - - - - Amount to be provided for retirement of general long-term debt - - - - Total assets and other debits $16,263,547 6$6,939,102 $ 1,723,844 $9,347,935 $153,307 392 $16,060,793 The accompanying Notes are an integral part of these financial statements. 3 EXHIBIT A-1 (Page 1 of 2) Fiduciary Account Groups Totals Totals Fund Type General General Primary Reporting Entity Trust and Fixed Long-Term Government (Memorandum Only) Agency Assets Debt (Memorandum Only) Component Units 1999 1998 $ 1,121,615 $ - $ - $ 39,632,974 $ 7,252,833 $ 46,885,807 $ 42,640,042 - - - 8,490,349 - 8,490,349 1,499,297 - - - 1,007,725 6,177 1,013,902 1,150,528 - - - 2,882,005 - 2,882,005 2,740,181 - - 1,898,993 - 1,898,993 2,001,546 - - - 3,028,157 - 3,028,157 - 26,024 - - 6,655,250 811,256 7,466,506 7,810,692 - - - 783,259 - 783,259 631,422 - - - 1,485,937 - 1,485,937 1,440,721 - - - 65,256 - 65,256 74,066 - - - 23,318,170 23,318,170 22,027,242 - - - 8,000 - 8,000 11,500 - - - 68,316 - 68,316 29,606 - 13,739,868 - 39,458,672 - 39,458,672 39,860,708 13,183,173 I 143,104,147 - 143,104,147 147,638,023 - 6,696,455 - 10,057,889 - 10,057,889 12,093,018 - 182,103 - - 197,447 - 197,447 606,985 - 31,485 - 27,471,598 - 27,471,598 25,894,009 - 223,732 - 3,545,046 - 3,545,046 192,688 - - - (76,545,894) - (76,545,894) (73,107,466) - 11,823,734 - 11,823,734 - 11,823,734 11,761,341 - - - 2,220,772 - 2,220,772 1,468,970 - - - 13,000 - 13,000 3,000 - - 1,578,437 1,578,437 1,578,437 1,560,640 - - 18,248,844 18,248,844 - 18,248,844 19,810,352 $ 1,147,639 $ 45,880,550 $ 19,827,281 $ 270,498,083 $ 8.070,266 $278,568,349 $269,839,111 (Continued) CITY OF WICHITA FALLS, TEXAS COMBINED BALANCE SHEET -ALL FUNDS TYPES,ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS (CONT'D.) SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1998 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 $ 456,304 $ 171,856 $ - $ 16,175 $ 782,208 $ 194,676 Accrued payroll 1,292,934 111,683 - - 363,253 63,548 Accrued vacation and sick leave 150,000 - - - 310,324 39,059 Payable to other City funds 777,789 880,551 - - 16,324 224,329 Payable to primary government - - - - - - Payable to government agencies 93,159 194,938 - - 46,975 - Estimated health claims payable - - - - - 543,887 Tax anticipation notes payable - - - 1,535,000 - - Other liabilities 1,222,099 130,711 - - 52,793 - Deferred revenue 764,895 166,837 145,407 - 2,259 - Capital lease payable - - - - Claims and judgments payable - - - - - - Payable from restricted assets: Accounts payable-trade - - - - 116,272 - Contracts and trade - - - - 8,025 - Revenue bonds-current maturities - - - - 2,345,000 - Accrued interest-revenue bonds - - - - 484,713 - General obligation bonds payable - - - - - - Payable to U.S.Government - - - - 880,018 - Revenue bonds,less current maturities - - - - 58,695,000 - Estimated liability for landfill closure and postclosure care costs - - - - 3,092,094 - Other long-term liabilities: Customer deposits-payable from restricted assets - - - - 1,965,653 - Total liabilities 4,757,180 1,656,546 145,407 1,551,175 69,160,911 1,065,499 Equity and other credits: Investment in general fixed assets - - - - - - Investment in joint venture assets - - - - - - Contributed capital - - - - 25,941,025 19,433,151 Retained earnings(deficit): Reserved for revenue bond debt service - - - - 7,833,617 - Unreserved - - - - 50,371,839 (4,437,857) Fund balances: Reserved for encumbrances 1,222,962 874,235 - - - - Reserved for inventory and prepaid items 70,112 18,000 - - - - Unreserved: Designated for: Subsequent years expenditures 3,000,000 3,678,715 - 9,247,033 - - Debt service - - 1,578,437 - - - Perpetual care - - - - - - Undesignated 7,213,293 711,606 - (1,450,273) - - Total equity and other credits 11,506,367 5,282,556 1,578,437 7,796,760 84,146,481 14,995,294 Total liabilities,equity and other credits $16,263,547 $6,939,102 $ 1,723,844 $9,347,935 $153,307,392 $16,060,793 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 (Memorandum Only) Trust and Fixed Long-Term Government Agency Assets Debt (Memorandum Only)... Component Units 1999 1998 $ 323,781 $ - $ - $ 1,945,000 $ $ 1,945,000 $ 1,521,209 1,831,418 1,831,418 1,638,392 4,253,663 4,753,046 4,753,046 4,785,752 t,898,993 1,898,993 2,001,546 3,028,157 3,028,157 - 1,218 336,260 336 260 285,072 - - 543,887 - 543,887 464,555 - 1,535,000 1,535,000 1,800,000 - .3`1 1,443,954 - 1,079,398 1,443,954 1,851 271 - - - 1,079,398 1,095,653 38 - 2,676 2,676-r - 2,676 5,027 - 255,942 255,942 255,942 164,468 116,272 - 116,272 41,286 - 8,025 8,025 - - - 8,025 - 2,345,000 2,345,000 1,965,000 - 484,713 - 484,713 503,827 15,315,000 15,315,000 ! 15,315,000 16,850,000 880,018 902,629 880,018 58,695,000 55,030,000 58,695,000 - - - - 3,092,094; : - 3,092,094 3,061,479 - - - 1,965,653 1,965,653 1,849,026 363,350 19,827,281 98,527,349 3,028,157 101,555,506 95,824,217 34,056,816 34,056,816 34,056,816 41,642,885 11,823,734 11,823,734 11,823,734 11,761,341 - - - 45,374,176 45,374,176 43,456,715 - 7,833,617 7,833,617 7,478,660 - - 45,933,982 42,755,623 - 45,933,982 - - - 2,097,197 2,097,197 2,408,942 - - 88,112 - 88,112 119,291 389,009 1,578,437 16,314,757 5,042,109 21,356,866 16,184,797 - 1,578,437 1,560,640 - - 395,280 395,280 - 6,474,626 395,280 358,478 6,474,626 6,287,522 - - 171,970,734 784,289 45,880,550 5,042,109 177,012,843 174,014,894 $ 1,147,639 $ 45,880,550 $ 19,827,281 $ 270,498,083 $ 8,070,266 $278,568,349 $269,839,111 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, 1999 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1998 Governmental Fund Types Special Debt Capital General Revenue Service Projects Revenues: Taxes $ 34,009,242 $ 1,006,994 $ 2,115,825 $ 3,530 Charges for services 2,279,994 29,734 - - Licenses and permits 535,989 - - - Fines and forfeitures 1,187,927 81,014 - - Intergovernmental revenue 61,782 7,294,026 - - Contributions 12,155 94,747 - - Miscellaneous revenue 1,533,500 629,183 - 287,043 Total revenues 39,620,589 9,135,698 2,115,825 290,573 Expenditures: Current: Administrative services 6,315,733 1,114,458 - - Police 12,010,858 524,883 - - Fire 7,881,632 240 - - Parks and recreation 2,896,955 415,710 - - Accounting/finance 1,300,773 - - - Communitydevelopment 1,048,202 4,426,684 - - Public works 4,814,939 332,240 - 128,953 Health 2,341,125 1,664,884 - - Traffic and transportation 1,561,804 162,125 - - Capital outlay 299,312 232,666 - 221,142 Debt service: Principal retirement 2,350 1,535,000 - Interest and paying agent fees 357 - 869,467 70,110 Total expenditures 40,474,040 8,873,890 2,404,467 420,205 Excess of revenues over(under)expenditures (853,451) 261,808 (288,642) (129,632) Other financing sources(uses): Operating transfers in 1,089,932 502,822 306,439 - Operating transfers in-component units - - - 3,600,287 Operating transfers out (560,106) (124,826) - - Operating transfers out-primary government - - - - Total other financing sources(uses) 529,826 377,996 306,439 3,600,287 Excess of revenues and other sources over(under)expenditures and other uses (323,625) 639,804 17,797 3,470,655 Fund balance-beginning 12,089,667 4,680,420 1,560,640 4,326,105 Residual equity transfers (259,675) (37,668) - - Fund balance-ending $ 11,506,367 $ 5,282,556 $ 1,578,437 $ 7,796,760 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 1999 1998 $ 26,024 $ 37,161,615 $ 4,946,242 $ 42,107,857, $ 40,844,645 - 2,309,728 - 2,309,728 2,098,408 - 535,989 - 535,989 435,572 - 1,268,941 - 1,268,941 1,692,722 7,355,808 - 7,355,808 7,824,216 - 106,902 - 106,902 376,228 15,844 2,465,570 253,973 2,719,543 2,471,929 41,868 51,204,553 5,200,215 56,404,768 55,743,720 - 7,430,191 - 7,430,191 6,994,806 - 12,'a5,741 - 12,535,741 12,007,525 - 7,881,872 - 7,881,872 7,575,584 3,312,665 - 3,312,665 3,392,125 1,300,773 - 1,300,773 1,141,181 5,474,886 115,038 5,589,924 6,947,840 5,276,132 5,276,132 6,444,668 . 4,006,009 - 4,006,009 3,743,887 - 1,723,929 - 1,723,929 1,829116 - 753,120 - 753,120 2,413,607 1,537,350 - 1,537,350 1,472,149 939,934 - 939,934 1,037,896; 52,172,602 115,038 52,287,640 55,000384 41,868 (968,049) 5,085,177 4,117,128 743,336 - 1,899,193 - 1,899,193 1,694,530 - 3,600,287 - 3,600,287 356,894 - (684,932) - (684,932) (418,669) - - (3,600,287) (3,600,287) (455,924) - 4,814,548 (3,600,287) 1,214,261 1,176,831 41,868 3,846,499 1,484,890 5,331,389 1920,:167 347,141 23,003,973 3,557,219 26,561,192 24,641,025 - (297,343) (297,343) $ 389,009 $ 26,553,129 $ 5,042,109 $ 31,595,238 $ 26,561,192 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, 1999 General Fund Variance- Favorable Budget Actual (Unfavorable) Revenues: Taxes $ 33,036,417 $ 34,009,242 $ 972,825 Charges for services 2,235,755 2,279,994 44,239 Licenses and permits 463,800 535,989 72,189 Fines and forfeitures 1,483,000 1,187,927 (295,073) Intergovernmental revenue 67,700 61,782 (5,918) Contributions - 12,155 12,155 Miscellaneous revenue 1,131,828 1,533,500 401,672 Total revenues 38,418,500 39,620,589 1,202,089 Expenditures: Current: Administrative services 6,445,254 6,315,733 129,521 Police 12,142,074 12,010,858 131,216 Fire 7,896,856 7,881,632 15,224 Parks and recreation 2,963,398 2,896,955 66,443 Accounting/finance 1,309,895 1,300,773 9,122 Community development 1,052,578 1,048,202 4,376 Public works 5,831,622 4,814,939 1,016,683 Health 2,364,484 2,341,125 23,359 Traffic and transportation 1,563,084 1,561,804 1,280 Capital outlay 808,134 299,312 508,822 Debt service: Principal retirement 2,350 2,350 - Interest and paying agent fees 357 357 - Total expenditures 42,380,086 40,474,040 1,906,046 Excess of revenues over(under)expenditures (3,961,586) (853,451) 3,108,135 Other financing sources (uses): Operating transfers in 1,089,932 1,089,932 - Operating transfers out (561,294) (560,106) 1,188 Total other financing sources (uses) 528,638 529,826 1,188 Excess of revenues and other sources over (under)expenditures and other uses $ (3,432,948) (323,625) $ 3,109,323 Fund balance- beginning 12,089,667 Residual equity transfers (259,675) Fund balance-ending $ 11,506,367 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) $ 860,000 $ 1,006,994 $ 146,994 $ 2,101,875 $ 2,115,825 $ 13,950 25,160 29,734 4,574 - - - 81,661 81,014 (647) - - - 9,910,835 7,294,026 (2,616,809) - - - 94,747 94,747 - - - - 519,791 629,183 109,392 - - - 11,492,194 9,135,698 (2,356,496) 2,101,875 2,115,825 13,950 1,401,176 1,114,458 286,718 - - - 1,493,374 524,883 968,491 - - - 9,001 240 8,761 - - - 1,345,857 415,710 930,147 - - - 6,419,537 4,426,684 1,992,853 - - - 792,690 332,240 460,450 - - - 1,869,713 1,664,884 204,829 - - - 246,058 162,125 83,933 - - - 2,117,483 232,666 1,884,817 - - - - - - 1,535,000 1,535,000 - - - - 873,314 869,467 3,847 15,694,889 8,873,890 6,820,999 2,408,314 2,404,467 3,847 (4,202,695) 261,808 4,464,503 (306,439) (288,642) 17,797 596,544 502,822 (93,722) 306,439 306,439 - (128,063) (124,826) 3,237 - - - 468,481 377,996 (90,485) 306,439 306,439 - $ (3,734,214) 639,804 $ 4,374,018 $ - 17,797 $ 17,797 4,680,420 1,560,640 (37,668) - $ 5,282,556 $ 1,578,437 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, 1999 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1998 Fiduciary Proprietary Fund Types Fund Type Totals Internal Nonexpendable (Memorandum Only) Enterprise Service Trust 1999 1998 Operating revenues: Charges for services $ 31,328,950 $ 6,093,412 $ - $ 37,422,362 $ 35,951,172 Rents,concessions and other 735,163 95,455 20,230 850,848 609,138 Contributions - 4,938,109 - 4,938,109 3,758,505 Total operating revenues 32,06,4,113 11,126,976 20,230 43,211,319 40,318,815 Operating expenses: Personnel services 9,104,326 1,343,170 - 10,447,496 9,810,278 Supplies and materials 1,702,473 1,386,598 - 3,089,071 2,960,159 Maintenance and repairs 2,584,449 1,373,412 - 3,957,861 5,885,987 Utilities and other services 6,625,107 85,724 - 6,710,831 6,279,425 Insurance and contract support 619,622 4,361,808 - 4,981,430 3,652,388 Other expenses 1,436,719 843,555 - 2,280,274 2,048,827 Depreciation and amortization 3,246,412 2,318,388 - 5,564,800 5,258,125 Total operating expenses 25,319,108 11,712,655 - 37,031,763 35,895,189 Operating income(loss) 6,745,005 (585,679) 20,230 6,179,556 4,423,626 Nonoperating revenues(expenses): Interest income 2,308,207 27,463 16,572 2,352,242 1,642,878 i Gain(loss)on sale/abandonment of fixed assets (53,891) 120,874 - 66,983 67,203 Interest expense and paying agent fees (2,959,827) - - (2,959,827) (2,856,781) Intergovernmental operating grants 488,216 - - 488,216 385,812 Total nonoperating revenues(expenses) (217,295) 148,337 16,572 (52,386) (760,888) Income(loss)before operating transfers 6,527,710 (437,342) 36,802 6,127,170 3,662,738 Operating transfers: Operating transfers in 197,644 - - 197,644 146,081 Operating transfers in-component units - - - - 99,030 Operating transfers out (1,099,905) (312,000) Net operating transfers (1,411,905)161 (1,421,942) (902,261) (312,000) (1,214,261) (1,176,831) Net income(loss) 5,625,449 (749,342) 36,802 4,912,909 2,485,907 Retained earnings(deficit)-beginning 53,922,798 (3,688,515) 358,478 50,592,:761 49,147,873. Residual equity transfers (1,342,791) - - (1,342,791) (1,041,019), Retained earnings(deficit)-ending $ 58,205,456 $ (4,437,857) $ 395,280 $ 54,162,879 $ 50,592,761.. The accompanying Notes are an integral part of these financial statements. 7 EXHIBIT A-5 CITY OF WICHITA FALLS, TEXAS COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES AND NONEXPENDABLE TRUST FUND FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1998 Fiduciary Proprietary Fund Types Fund Type Totals Internal Nonexpenaabie (Memorandum Only) Enterpnse Service Trust 1999 1$,J6 Cash flows from operating activities: Operating income(loss) $ 6,745,005 $ (585,679) $ 20,230 $ 6,179,556 $ 4,423,626 Adjustments to reconcile operating income(loss) to net cash provided by(used in)operating activities. Depreciation and amortization 3,246,412 2,318,388 - 5,564,800 5,258,125 Customer deposits received 116,627 - - 116,627 105,668 Landfill closure and postclosure care costs 30,615 - - 30,615 60,029 (Increase)decrease in current assets Receivables: Customer and trade (141,824) - - (141,824) (147,759) Government agencies (26,299) - - (26,299) 8,862 Other City funds - (352,690) - (352,690) (81,377) Other (3,598) 1,122 - (2,476) 15,964 Inventory (27,540) (31,697) - (59,237) (74,585) Prepaid items (11,367) 3,019 - (8,348) (618) Restricted assets (38,710) - (38,710) 5,601 Increase(decrease)in current liabilities: Accounts payable-trade 237,730 (76,566) - 161,164 248,575 Accrued payroll 41,690 6,026 - 47,716 (201,552) Accrued vacation and sick leave 16,674 (1,546) - 15,128 334,255 Payable to other City funds (200,703) 20,3,476 - 8,773 (23,661) Payable to government agencies (287) - - <287) 10,589 Estimated health claims payable - 79,332 - 79,332 1,413 Other liabilities (85,802) - - (85,802) 71,638 Deferred revenue - - - 2,259 Other liabilities payable from restricted assets 74,986 - - 74,986 (258,915) Total adjustments 3,128,604 2,154,864 - 5,383,4686 5,334,511 Net cash provided by operating activities 9,973,609 1,569,185 20,230 11,563,024 9,/58,13/ Cash flows from noncapital financing activities. Intergovernmental operating grants 488,216 - 488,216 385,812 Operating transfers in from other funds 197,644 - 197,644 146,081 Operating transfers in from component units - - 99,030 Operating transfers out to other funds (1,099,905) (312,000) - (1,411,905) (1,421,942) Residual equity transfers to other funds (1,342,791) - - (1,342,791) (1,041,019) Net cash provided by(used for) noncapital financing activities (1,756,836) (312,000) - (2,068,836). 0,882,030• Cash flows from capital and related financing activities: Proceeds from sale of revenue bonds 5,500,000 5,500,000 8,060;000 Acquisition and construction of capital assets (3,743,870) (1,773,214) - (5,517,084) (2,525,784) Proceeds from sale of fixed assets - 167,712 167,712 105,262 Payment of bond issuance costs (55,265) (55,265) (213,875) Principal paid on long-term debt maturities (2,161,899) - - (2,161,899) (1,876,209) Interest paid on long-term debt obligations (2,919.183) - (2,919,183) (2,728,757) Other assets (10,000) - (10,000)' Net cash provided by(used for)capital and related financing activities (3,390,217) (1,605,502) - (4,995,719) 820,637 Cash flows from investing activities: Purchase of investments (5,488,724) - - (5,488,724) - Interest on investments 2,308,207 27,463 16,572 2,352,242 1,642,878 Net cash provided(used)by investing activities (3,180,517) 27,463 16,5/2 (3,136,482) 1,642,818 Net increase(decrease)in cash and cash equivalents 1,646,039 (320,854) 36,802 1,36t987 10,389,614 Cash and cash equivalents at beginning of year 40,623,332 1,021,462 358,478 42,003,272 31,613,658 Cash and cash equivalents at end of year $ 42,269,371 $ 700,608 $ 395,280 $ 43,365,259 $ 42,003,272 Noncash capital and financing activities. Capital assets contributed to other City funds $ 1,342,791 $ - $ $ 1,342,791 $1,042,543 Capital assets received from other City funds 140,781 1,499,353 - 1,640,134 1,484,902 Capital assets received from developers 277,327 - - 277,327 151,791 Refunding bonds issued to defease outstanding bonds 22,795,000 - - 22,795,000 - Reconciliation of cash and cash equivalents on the combined balance sheet to the combined statement of cash flows: Cash and cash equivalents $ 18,951,201 $ 700,608 $ 395,280 $ 20,047,089 $ 19,976,030 Restricted assets-cash and cash equivalents 23,318,170 - - 23,318,170 22,027,242 Total cash and cash equivalents at end of year $ 42,269,3/1 $ /IXJ,608 $ 395,280 $ 43,367,259 $ 42,003,2/2 The accompanying Notes are an integral part of these financial statements. 8 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1999 Note 1 - REPORTING ENTITY The City of Wichita Falls, Texas (the City) is a municipal corporation governed by an elected Mayor and six-member City Council. As required by Governmental Accounting Standards Board (GASB) Statement No. 14, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are in substance, part of the City's operations and data from these units are combined with data presented by the City. A discretely presented component unit, on the other hand, is reported in a separate column in the 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 (the Trust). The Trust Committee consists of four Trustees selected by the City, who may, but need not be, beneficiaries of the health and welfare program funded by the Trust, and/or officers or employees of the City. The purpose of the Trust is to provide health and welfare benefits, which may include life, accidental death and dismemberment, disability, medical and dental insurance, and any other benefits as determined by the Trustee Committee. The Trust is funded through contributions by the City and employees who choose to participate. It may be terminated in writing, at any time, by either party. The Employee Benefit Trust Fund is presented in the accompanying financial statements as an internal service fund. Discretely Presented Component Units The Wichita Falls Economic Development Corporation. The Wichita Falls Economic Development Corporation is a non-profit corporation formed in May 1997 for the purpose of increasing employment opportunities, primarily through assisting qualifying enterprises with funds provided by a portion of the local sales tax. Assistance may be in the form of incentive grants, loans or leases which call for discounted rates or rebates for job development. The Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A. Since the City Council appoints its Board of Directors, approves its budgets, and exercises final authority over its operations, the Wichita Falls Economic Development Corporation is considered to be part of the City's reporting entity and presented in the accompanying general purpose financial statements as a discretely presented component unit. The Wichita Falls Economic Development Corporation is presented as a governmental fund type. The Wichita Falls 48 Sales Tax Corporation. The Wichita Falls 4B Sales Tax Corporation is a non-profit corporation formed in May 1997 for the purpose of increasing employment opportunities and for public improvement projects such as parks, auditoriums, learning centers, open space improvements, athletic and exhibition facilities, and the related maintenance and operating costs of such projects. The Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4B. Since the City Council appoints its Board of Directors, approves its budgets, and exercises final authority over its 9 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 1 - REPORTING ENTITY (CONT'D.) Discretely Presented Component Units (Cont'd.) 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 (the Zone). This Zone is permitted by Article 1066e of the State of Texas Tax Increment Financing Act passed in 1981. The area of the Zone is approximately 650 acres and includes the central business district of the City. The purpose of the Zone is to capture increments of growth in real property values in the Zone from base values established on January 1, 1986, and use the ad valorem taxes derived from these increments to contribute to the zoned area. Tax funds derived from the increment can only be spent for public improvements in the Zone or for the payment of debt service on bonds issued to provide funds for public improvements. The Zone terminates on December 31, 2008, or when all debt has been paid if later. After all costs have been paid at the end of the tax increment financing period, any money remaining is to be remitted to the taxing entities. Since the City Council appoints each member of its Board, the Wichita Falls Reinvestment Zone #1 is considered to be part of the City's reporting entity and presented in the accompanying general purpose financial statements as a discretely presented component unit. The Zone is presented as a governmental fund type. Complete financial statements for the City's blended and discretely presented component units can be obtained from the City's Director of Finance at 1300 7th Street, Wichita Falls, Texas. Excluded From the Reportina Entity Wichita Falls Firemen's Relief and Retirement Fund. The Wichita Falls Firemen's Relief and Retirement Fund was established and is controlled through various State of Texas legislative enactments. This Fund is administered locally by a seven-member board, independent of the City Council. City management and the City Council do not influence or control the administrative and financial affairs of the Fund, and the assets of the Fund are not the property of the City. The seven-member Board of Trustees, composed of the Mayor, the Senior Accountant from the City's Finance Department, three firefighters elected by a majority vote of the firefighters and two citizens, who are not employees or officers of the City and are chosen by the unanimous vote of the first five Trustees, are subject to the administrative supervision of and report to the State Firemen's Pension Board. The activities of the Firemen's Relief and Retirement Fund, in the City's judgment, are not a part of the City and thus are excluded from the accompanying financial statements. 10 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 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 Projects 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, 1999 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, 1999 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 Long-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. 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: 13 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Basis of Accounting (Contd.) 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$2,400,381 which were passed and approved by the City Council. 4. Expenditures may not legally exceed appropriations at the department level for each legally adopted annual operating budget. The City Manager may, without Council approval, transfer appropriation balances from one expenditure account to another within a department or agency of the City. The City Council, however, must approve any transfer of unencumbered appropriation balances or portions thereof from one department or agency to another. The reported budgetary data has been revised for amendments legally authorized during the year. 14 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Budaet Policies (Cont'd.) 5. Annual budgets are legally adopted for all governmental funds on a basis consistent with 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. 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. 15 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 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, 1999, the City's proprietary funds incurred a total of $2,940,755 of interest costs. Of this amount, $25,450 was capitalized on construction projects and $2,915,305 was charged to expense. Contributions of funds from Federal, State, or local grants restricted for the purpose of purchasing plant and equipment are recorded as equity contributions when received. The cost of water and sewer lines installed by developers is valued by the contractor and recorded as contributed capital in the Water and Sewer Fund. Depreciation on contributed assets from Federal and State governments is recorded as an expense in the statement of operations. General Fixed Assets General fixed assets are those assets acquired for general governmental purposes. Assets purchased are recorded as expenditures in the governmental funds and capitalized at historical cost in the General Fixed Assets Account Group. Contributed fixed assets are recorded in general fixed assets at estimated fair market value at the time received. No depreciation has been provided on general fixed assets. No interest is capitalized on fixed assets constructed which are financed with general obligation bonds in accordance with generally accepted accounting principles. 16 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) General Fixed Assets (Cont'd.) Public domain general fixed assets (infrastructure) consistingof ce rtain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, and similar assets have not been capitalized. 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, and the Home Investment Partnership Agreement Program. Each Federal grant is accounted for in a separate special revenue fund. State grant revenues received for purposes normally financed through the general government are accounted for within the General Fund. Reserves and Designations Portions of fu nd equity are segregated for future use, and are therefore not available for future appropriation or expenditure. Amounts reserved for revenue bond debt service and retirement represent portions of fund equity which are required to be segregated in accordance with the City's bond ordinances. Amounts reserved for inventory and prepaid items have already been expended and represent a portion of the fund balance that is not available for future expenditures. Amounts reserved for encumbrances are commitments for materials and services on purchase orders and contracts which are unperformed. Designations of unreserved fund balances in governmental funds indicate City management's tentative plans for use of financial resources in a future period. 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. 17 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 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 ninety days of sick leave. Risk Management The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. For insured programs, there have been no significant reductions in insurance coverage. Settlement amounts have not exceeded insurance coverage for the current year or the three prior years. The City maintains a group health insurance plan for employees and dependents which is partially self-insured by the City. A group life insurance plan is maintained through an insurance company. Contributions to the plans are provided for by both the City and participating employees. These contributions are recognized as revenues in the internal service fund used to account for these plans. The contributions made by the City are recorded as expenditures or expenses of the various funds as appropriate. 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, 1999 is based on management's estimate of probable losses in the amount of $255,942. 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. The following represents changes in the amount of claims liabilities for the City from October 1, 1997 to September 30, 1999: 18 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Risk Management (Cont'd.) Health Workers' Care Compensation Liability balance, October 1, 1997 $ 463,142 $ 177,943 Incurred claims 3,142,075 1,053,608 Claim payments ( 3.140.662) ( 1.067.083) Liability balance, September 30, 1998 464,555 164,468 Incurred claims 4,130,922 1,118,872 Claim payments ( 4.051.590) ( 1.027.398) Liability balance, September 30, 1999 $ 543.887 $ 255.942 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. lnterfund 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, 1999, the Library Renovation Fund had a deficit fund balance of $1,450,273. 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, 1999, the Airport Fund had a deficit retained earnings balance of$656,221. The intent of management is that this deficit be recovered by transfers from other funds during future years. 19 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 3 - FUND DEFICITS (CONT'D.) Enterprise Funds (Cont'd.) At September 30, 1999, the Transit Fund had a deficit retained earnings balance of$237,856. 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, 1999, the Fleet Maintenance Fund had a deficit retained earnings balance of $4,701,464. 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. 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, 1999, the total amount of the City's demand and time deposits per the general ledgers was $10,251,092, and the total amount per the City's September 30, 1999 bank statements was $11,002,701. 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, 1999 are as follows: Component City Units Totals U.S. Government securities $ 8,498,349 $ - $ 8,498,349 Texas Local Government Investment Pool (TexPool) 38,213,007 7,567,233 45,780,240 Local Government Investment Cooperative (LOGIC) 14,172,645 - 14,172,645 Totals S60,884.001 $7,567.233 $68,451,234 20 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 4 - DEPOSITS AND INVESTMENTS (CONT'D.) Investments (Cont'd.) 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. LOGIC was also established pursuant to the Interiocal 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. Cateoory Carrying Fair Description 1 2 3 Amount Value Primary Government: U.S. Government Securities $8 498,'349 $ - $ - $ 8,498,349 $ 8,498,349 Investments not subject to categorization: Public Funds Investment Pool 52.385.652 52.385.652 Subtotal 60,884,001 60,884 001 Component Units: Investments not subject to categorization: Public Funds Investment Pool 7.567.233 7,567,233 Total $68 451.234 $68.451 234 21 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 5 - RECEIVABLES Receivables at September 30, 1999 consist of the following: Totals Totals Special Debt Capital Internal Trust Primary Component Reporting General Revenue Service Proiects Enterprise Service and Agency Government Units Entity Receivables: Taxes and assessments $1,335,311 $ 82,491 $253,487 $ - $ - $ - $ - $ 1,671,289 $ 6,177 $ 1,677,466 Customer and trade - - - - 2,882,005 - - 2,882,005 - 2,882,005 Other City funds 1,121,204 - - - - 777,789 - 1,898,993 - 1,898,993 Component unit - - - 3,028,157 - - - 3,028,157 - 3,028,157 Government agencies 2,648,461 3,806,068 15,091 - 159,606 - 26,024 6,655,250 811,256 7,466,506 Other 681,063 7,185 - 10,687 74,164 10,160 - 783,259 - 783,259 NJ Restricted-other - - - - 68,316 - - 68.316 - 68.316 r) Gross receivables 5,786,039 3,895,744 268,578 3,038,844 3,184,091 787,949 26,024 16,987,269 817,433 17,804,702 Less: Allowance for uncollectible accounts ( 556,941) - ( 106,623) - - - - ( 663.564) - ( 663.564) Net total receivables $5.229.098 13.895144 $161,955 $34 38,844 $3,184,091 $787,949 $26,024 $16.323 45 $817,433 $17.141,138 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 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, 1999 was $.512838 per$100 which means that the City has a tax margin of $1.737162 per $100, and could raise up to $51,549,874 additional tax revenue a year from the present assessed valuation of$2,967,476,468 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 $ 6,972,092 Investments 8,000 For Capital Improvements: Cash and cash equivalents 14,380,425 Receivables 68,316 For Customer Deposits: Cash and cash equivalents 1,965,653 Total $23.394.486 Note 8 - PLANT, EQUIPMENT AND DEPRECIATION A summary of plant and equipment at September 30, 1999 is as follows: 23 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 8 - PLANT, EQUIPMENT AND DEPRECIATION (CONT'D.) Internal General Enterprise Service Fixed Funds Funds Assets Total Land and betterments $ 25,285,146 $ 433,658 $13,739,868 $ 39,458,672 Buildings and improvements 125,910,876 4,010,0'38 13,183,173 143,104,147 Machinery and equipment 3,361,434 - 6,696,455 10,057,889 Furniture and fixtures 8,986 6,358 182,103 197,447 Motor vehicles and equipment 1,235 27,438,878 31,485 27,471,598 Construction in progress 3,314,608 6.706 2Z3.732 3.545.046 Total plant and equipment 157,882,285 31,895,698 34,056,816 Z23,834,799 Less accumulated depreciation ( 58.569.907) ( 17.975.987) - ( 76.545.894) Net plant and equipment $ 99 312 378 $13 919 711 $34 056 816 $147.288 9l15 A summary of changes in the components of the General Fixed Assets Account Group for the year ended September 30, 1999 is as follows: Balance Transfers Balance October 1, and September 30, 1998 Additions Retirements 1999 Plant and equipment: Land and betterments $14,223,568 $ 16,209 $ 499,909 $13,739,868 Buildings and improvements 18,209,983 - 5,026,810 13,183,173 Machinery and equipment 8,619,542 515,769 2,438,856 6,696,455 Furniture and fixtures 541,278 - 359,175 182,103 Motor vehicles and equipment 45,924 - 14,439 31,485 Construction in progress 2.590 221,142 - 223,732 Subtotal 41,642,885 753,120 8,339,189 34,056,816 Investment in joint venture 11,761,341 62,393 - 11,823,734 Total $53 404 226 $ 815.513 $8_339.189 $4`... 8F�0 550 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 717 administered by TMRS, an agent multiple-employer public employee retirement system. 24 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 9 - RETIREMENT PLANS (CONT'D.) Texas Municipal Retirement System (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)/0) 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, 1998 valuation is effective for rates beginning January 2000). 25 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 10 - 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 (the 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 Citycontributes 9%. Both the firefighters g tens 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 excess of the total contribution rate over the normal cost rate is used to amortize the plan's unfunded actuarial accrued liability, and the number of years needed to amortize the plan's unfunded actuarial accrued liability is determined using a level percentage of payroll method. Schedule of Actuarial Liabilities and Funding Progress Texas Municipal Firemen's Total Retirement Relief and (Memorandum System Retirement Only) Actuarial Valuation Date 12/31/98 12/31/97 Actuarial Value of Assets $53,779,205 $19,916,831 $73,696,036 Actuarial Accrued Liability(AAL) 70,332,145 25,193,592 95,525,737 26 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 9 - RETIREMENT PLANS (CONT'D.) Schedule of Actuarial Liabilities and Funding Proaress (Cont'd.) Texas Municipal Firemen's Total Retirement Relief and (Memorandum System Retirement Only) Percentage Funded 76.5% 79.1% 77.1% Unfunded Actuarial Accrued Liability(UAAL) 16,552,940 5,276,761 21,829,701 Annual Covered Payroll 25,833,511 4,712,854 30,546,365 UAAL as a Percentage of Covered Payroll 64.1% 112.0% 71.5% Net Pension Obligation (NPO) at the Beginning of the Period -0- -0- -0- Annual Pension Cost: Annual Required Contribution (ARC) $ 2,522,957 $ 558,566 $ 3,081,523 Interest on NPO -0- -0- -0- Adjustment to the ARC -0- -0- -0- Annual Pension Cost $ 2,522.957 $ 558.566 $ 3.081.523 Percentage of Annual Pension Costs Contributed 100% 100% 100% Contributions Made $ 2,522,957 $ 558,566 $ 3,081,523 Increase in NPO -0- -0- -0- NPO At the End of the Period $ -0- $ -0- $ -0- Two preceding years: 1997: Annual Pension Cost $ 2,404,267 $ 451,563 $ 2,962,830 Percentage of Annual Pension Costs Contributed 100% 100% 100% NPO At the End of the Period -0- -0- -0- 1996: Annual Pension Cost $ 2,152,148 $ 436,410 $ 2,588,558 Percentage of Annual Pension Costs Costs Contributed 100% 100% 100% NPO At the End of the Period -0- -0- -0- 27 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 9 - RETIREMENT PLANS (CONT'D.) Actuarial Assumptions Texas Municipal Firemen's Retirement Relief and System Retirement Actuarial Cost Method Unit Credit Aggregate Entry Age Amortization Method Level Percent of Payroll N/A * Remaining Amortization Period 25 years N/A Asset Valuation Method Market Rated Smooth Market Value Investment Rate of Return 8% 8% Projected Salary Increases None None Includes Inflation at None None Cost-of-Living Adjustments None None * The aggregate entry age normal actuarial cost method does not identify or separately amortize unfunded actuarial liabilities. 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. The remaining debt payable to the U.S. Government at September 30, 1999 is classified as follows: 28 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 11 - PAYABLE TO U.S. GOVERNMENT (CONT'D.) Long-term $880,018 Current portion (included in other liabilities) 22.611 Total $902.629 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 $7,402 for the fiscal year ended September 30, 1999. Note 13 - DESCRIPTION OF LEASING ARRANGEMENTS In August 1995, the City entered into a copier lease expiring in 2000 which is classified as a capital lease and included in the General Fixed Asset and the General Long-Term Debt account groups. The copier was recorded as machinery and equipment in the General Fixed Asset Account Group at a cost of$11,220. 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. Capital Lease The following is a schedule by years of future minimum lease payments under a capital lease and the corresponding present value of the net minimum lease payments as of September 30, 1999: Year ending September 30, 2000 $2,810 Less amount representing interest 134 Present value of minimum lease payments $2,676 The present value of minimum lease payments is recorded in the General Long-Term Debt Account Group as a capital lease payable. Operating Leases 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, 1999: 29 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONTD.) SEPTEMBER 30, 1999 Note 13 - DESCRIPTION OF LEASING ARRANGEMENTS (CONT'D.) Operating Leases (Cont'd.) Year ending September 30: 2000 $103,628 2001 68,404 2002 5,590 2003 2,494 2004 1 Later years 4 Total minimum payments required $180.121 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, 1999: Minimum rentals $270,851 Contingent rentals 7.402 Total rentals $278.253 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, 1999: Obligations Obligations Outstanding New Obligations Outstanding October 1, Obligations Retired/ September 30, 1998 Incurred Refunded 1999 General Lona-Term Debt: General Obligation Bonds payable $16,850,000 $ - $ 1,535,000 $15,315,000 Accrued vacation and sick leave 4,351,497 - 97,834 4,253,663 Capital lease payable 5,027 - 2,351 2,676 Claims and judgments payable 164,468 1,118,872 1,027,398 255,942 Total general long-term debt 21,370.992 1,118,872 2,662,583 19,827,281 Proprietary Fund Debt: Revenue Bonds payable 56,995,000 28,295,000 24,250,000 61,040,000 Payable to U.S. Government 924,528 - 21,899 902,629 Total proprietary fund debt 57,919.528 28,295,000 24,271,899 61.942.629 Total long-term liabilities $79 790 520 $29 413 87? $26 934 482 $81 769 9t0 30 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 14 - LONG-TERM DEBT (CONT'D.) Bonds payable at September 30, 1999 are comprised of the following individual issues: Range of Final Annual Bonds Interest Maturity Serial Bonds Outstanding Rates Date Payments Authorized at 9/30/99 General Obligation Bonds: General Obligation Bonds, 2.75%- 9/01/10 $80,000 to $ 4,000,000 $ 3,265,000 Series 1992 5.75% $635,000 General Obligation Refunding 3.50%- 9/01/06 $105,000 to 7,250,000 5,200,000 Bonds, Series 1994 5.50% $860,000 General Obligation Refunding 4.10%- 9/01/06 $570,000 to 9,000,000 6,850,000 Bonds, Series 1996 5.30% $1,130,000 Total General Obligation Bonds 15,315,000 Revenue Bonds: Water and Sewer Revenue Bonds: Water and Sewer System 3.90%- 8/01/07 $95,000 to 12,830,000 9,855,000 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 4,225,000 Refunding Revenue 5.40% $625,000 Bonds, Series 1996 Water&Sewer Subordinate 3.35%- 8/01/16 $25,000 to 11,420,000 11,220,000 Lien Revenue Bonds, 4.95% $2,750,000 Series 1996 Water&Sewer Subordinate 3.14%- 8/01118 $25,000 to 8,060,000 8,035,000 Lien Revenue Bonds, 4.59% $3,320,000 Series 1998 Water&Sewer System 3.65%- 8/01/12 $375,000 to 22,795,000 22,420,000 Subordinate Lien 4.50% $3,770,000 Refunding Revenue Bonds, Series 1998A Water&Sewer System 4.05%- 8/01/18 $180,000 to 5,500,000 5,285,000 Priority Lien Revenue 4.65% $400,000 Bonds, Series 1998E Total Revenue Bonds 61,040,000 Total All Bonds $76.555 31 r CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 14 - LONG-TERM DEBT (CONT'D.) All of the General Obligation Bonds were issued on the full faith and credit of the City and are secured by ad valorem taxes levied against all taxable property. These bonds are serviced by the Debt Service Fund with an apportionment of the ad valorem tax levy. At September 30, 1999, $1,578,437 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. The City's current year payments for debt service of general obligation bonds, revenue bonds, and payable to U.S. Government included $868,315, $2,889,642, and $30,075 of interest, respectively. The annual requirements to pay principal and interest on the City's long-term obligations outstanding as of September 30, 1999 are as follows: w N Year Ending General Obligation Bonds Revenue Bonds Payable to U.S. Government September 30, Principal Interest Principal Interest Principal Interest Total 2000 $ 1,610,000 $ 796,975 $ 2,345,000 $ 2,776,148 $ 22,611 $ 29,363 $ 7,580,097 2001 1,690,000 719,775 2,450,000 2,674,008 23,347 28,627 7,585,757 2002 1,770,000 636,910 2,555,000 2,567,085 24,106 27,868 7,580,969 2003 1,850,000 547,565 2,675,000 2,453,118 24,890 27,084 7,577,657 2004 1,950,000 453,305 2,805,000 2,327,385 25,700 26,274 7,587,664 Subsequent 6,445,000 902,565 48.210.000 16,709,058 781,975 309.437 73.358.035 Total $15.315 000 $4.057.095 $61.040.000 $29.506.802 $902.629 $448.653 $111.270.179 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 15 - DEFEASED DEBT On October 1, 1998, the City issued revenue bonds of$22,795,000 (par value) with interest rates of 3.65% to 4.50% to advance refund revenue bonds with an interest rate of 5.50% and a par value of $21,695,000. The refunded revenue bonds matured through August 2012 and were callable on August 1, 1999. The new refunding bonds were issued a discount of $189,343 and, after paying issuance costs of $373,261, the net proceeds were $22,232,396. 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 refunded bonds were called on August 1, 1999. The advance refunding met the requirements of an in-substance debt defeasance and the refunded bonds were removed from the City's Water and Sewer Fund. As a result of the advance refunding, the City reduced its total debt service requirements by $2,078,025, which resulted in an economic gain (difference between the present value of the debt service payments on the old and new debt) of$1,576,587. 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, 1999 are as follows: Year Ending September 30: Principal Interest Total 2000 $ 280,000 $ 67,263 $ 347,263 2001 290,000 51,360 341,360 2002 305,000 37,969 342,969 2003 320,000 23,590 343,590 2004 340,000 8,075 348.075 Totals S1.535.000 S188.257 51.723.257 During the year ended September 30, 1999, the City paid $85,987 of interest on the tax anticipation notes. 33 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 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$3,086,428 as of September 30, 1999, 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 $5,666 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 receivable and payable balances at September 30, 1999 are as follows: Interfund Interfund Receivables Pavables General Fund $1,121,204 $ 777,789 Special Revenue Funds: Community Development Block Grant Fund - 300,220 Home Investment Partnership Agreement Fund - 163,281 Miscellaneous Special Revenue Fund - 417,050 Total Special Revenue Funds - 880,551 Enterprise Funds: Transit Fund - 14,244 Water and Sewer Fund - 2.080 Total Enterprise Funds - 16,324 Internal Service Funds: Employee Benefit Trust Fund 777,789 224,329 Total Internal Service Funds 777,789 224,329 Totals $1,898.993 $1.898.993 Receivable and payable balances between the primary government and the component units at September 30, 1999 are as follows: 34 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 18 - INDIVIDUAL FUND AND RELATED DISCLOSURES (CONT'D.) Receivable Payable Capital Projects Funds: 4B Sales Tax Projects Fund $3,028,157 $ - Component Units: Wichita Falls 4B Sales Tax Corporation - 3.028.157 Totals $3,028.157 $3.028.157 Operating transfers between funds and component units during the year were as follows: Operating Operating P 9 Transfer In Transfer Out General Fund $1,089,932 $ 560,106 Special Revenue Funds: Hotel/Motel Tax Fund - 39,457 Miscellaneous Special Revenue Fund 502.822 85.369 Total Special Revenue Funds 502.822 124,826 Debt Service Fund 306,439 - Capital Projects Funds: Library Renovation Fund 350,988 - 4B Sales Tax Projects Fund 3,249.299 - Total Capital Projects Funds 3,600.287 - Enterprise Funds: Golf Fund - 8,295 Airport Fund - 15,535 Transit Fund 197,644 - Sanitation Fund - 373,313 Water and Sewer Fund - 702,762 Total Enterprise Funds 197,644 1,099.905 Internal Service Funds: Fleet Maintenance Fund - 312,000 Component Units: Wichita Falls 4B Sales Tax Corporation - 3,600,287 Totals $5.697.124 $5.697.124 35 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 18 - INDIVIDUAL FUND AND RELATED DISCLOSURES (CONT'D.) Residual equity transfers between funds during the year were as follows: Equity Equity Transfer In Transfer Out General Fund $ - $ 259,675 Special Revenue Funds: Miscellaneous Special Revenue Fund - 37,668 Enterprise Funds: Transit - 2,836 Sanitation Fund - 1,335,561 Water and Sewer Fund 140,781 4,394 Total Enterprise Funds 140,781 1,342,791 Internal Service Funds: Fleet Maintenance 1,499,353 - Totals $1.840.134 $1.640.134 36 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 19 - CONTRIBUTED CAPITAL- PROPRIETARY FUNDS During the year ended September 30, 1999, contributed capital in the City's proprietary funds increased by the following amounts: Internal Enterprise Funds Service Fund Total Water Fleet Proprietary Source Golf Airport Transit Sanitation and Sewer Maintenance Funds Government-fixed assets $ - $ - $ - $ - $ 140,781 $ 1,499,353 $ 1,640,134 Developers -fixed assets - - - - 277,327 - 277.327 Total additions - - - - 418,108 1,499,353 1,917,461 (,) Contributed capital, October 1, 1998 8.279 2.292.192 824.496 2.909.150 19.488.800 17,933.798 43.456.715 Contributed capital, September 30, 1999 $8,279 $2,292.192 $824.496 $2,909.150 $19.906.908 $19.433.151 $45_374.176 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 20 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains five enterprise funds which provide golf, transportation, sanitation, water and sewer services. Segment information for the year ended September 30, 1999 is as follows: Total Water Enterprise Golf Airport Transit Sanitation and Sewer Funds Condensed balance sheets: Plant and equipment: Additions $ 41,957 $ - $ - $ 9,879 $ 3,924,994 $ 3,976,830 L.,) Deletions - 60,016 65,534 89,885 216,671 432,106 co Net working capital 52,527 607,503 22,394 10,187,921 15,925,275 26,795,620 Total assets 141,898 1,669,755 682,335 12,772,880 138,040,524 153,307,392 Long-term liabilities - - - 3,092,094 59,575,018 62,667,112 Total equity 101,702 1,635,971 586,640 9,377,066 72,445,102 84,146,481 Condensed statements of revenues, expenses and changes in equity: Operating revenues 765,454 347,113 150,866 9,429,112 21,371,568 32,064,113 Depreciation and amortization 7,236 89,996 8,563 61,025 3,079,592 3,246,412 Operating income(loss) 47,095 8,820 ( 641,880) 2,765,595 4,565,375 6,745,005 Intergovernmental operating grants - - 488,216 - - 488,216 Operating transfers: In - - 197,644 - - 197,644 Out 8,295 15,535 - 373,313 702,762 1,099,905 Net income 38,800 18,349 41,145 2,814,355 2,712,800 5,625,449 Current capital contributions - - - - 418,108 418,108 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 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, 1999 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 $4,265,558 $3,306,518 $498,190 $8,070,266 Current liabilities - 3,028,157 - 3,028,157 Condensed statements of revenues and expenditures: Revenues 2,549,302 2,524,795 126,118 5,200,215 Current expenditures 94,190 2,005 18,843 115,038 Operating transfers out - 3,600,287 - 3,600,287 Excess of revenues and other sources over(under) expenditures and other uses 2,455,112 ( 1,077,497) 107,275 1,484,890 Note 22 - JOINT VENTURE - MULTI-PURPOSE EVENTS CENTER The Multi-Purpose Events Center (the Center) is an activities complex owned jointly by the City of Wichita Falls (50%) and Wichita County (the County) (50%). The Center is 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. The initial projected cost of the Center was estimated to be twenty-five million dollars. The City and the County have each contributed nine million dollars toward the construction of the facility. The remaining costs are presently being raised from private contributions and other sources within the community. The City and the County each have an undivided one-half interest in the Center and may dispose of it only by mutual agreement of the City Council and Wichita County Commissioners Court. The City and the County are each obligated by contract to fund the portion of the Center's annual budget that exceeds the revenues from the Center and the undesignated hotel/motel taxes collected by the City. The following is a summary of selected financial information for the Multi-Purpose Events Center as of September 30, 1999: 39 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 22 - JOINT VENTURE - MULTI-PURPOSE EVENTS CENTER (CONT'D.) Total assets $22,199,527 Total liabilities $ 169,099 Joint venturers' capital $22.030.428 Current capital contributions $ 841.976 Total revenue $ 848,954 Total expenses $ 2,023.,984 Total other income $ 42,578 Net loss ($ 1.132.452) The City's net investment in this joint venture is reported in the City's General Fixed Assets Account Group. The City's equity interest in the Center was $11,823,734 at September 30, 1999. Complete financial statements for the Center can be obtained from the City's Director of Finance at 1300 7th Street, Wichita Falls, Texas. 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. Accrued Vacation and Sick Leave The City's liability for accrued vacation and sick leave excluding the amount recorded in the enterprise funds was $4,442,722 at September 30, 1999. This accrual is recorded in the General Long-Term Debt account group, except for $150,000 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, 1999, these costs totaled $$+64 . 40 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 23 - COMMITMENTS AND CONTINGENCIES (CONT'D.) Contract Commitment With West Texas Utilities Company In 1977, the City and Wichita County Water Improvement District Number 2 entered into a sixty- year contract with the West Texas Utilities Company (the Company) and agreed to provide an adequate water supply for the Company's use in generating power upon completion of the Company's construction of a power plant adjacent to the Lake Kemp-Lake Diversion System. The significant terms of the contract provide for standby charges to be paid to the City and the Wichita County Water Improvement District Number 2 in equal amounts. Minimum charges for the calendar year 1997 and all years thereafter until the end of contract will be $500,000 per year. For water actually consumed, the Company shall pay the City and Wichita County Water Improvement District Number 2 equally, at the base rate of $0.23 per one thousand gallons, which is adjusted annually. The rate for the year ended September 30, 1999 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, 1999, 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 $ 623.200 Special Revenue Funds: Miscellaneous Special Revenue Fund 37.809 Capital Projects Funds: 4B Sales Tax Projects Fund 2.524,799 Enterprise Funds: Sanitation Fund 2,100,512 Water and Sewer Fund 5,913,295 Total Enterprise Funds 8.013.807 Total contract commitments $11.199.615 Kickapoo Downtown Aimark During the year ended September 30, 1999, the City entered into an agreement to purchase an airport located in the Southeast corner of Wichita Falls, Texas called Kickapoo Downtown Airpark for $1,600,000. The agreement is contingent of the results of a feasibility study to be performed by a third party consultant and available funding from federal grants. In January 2000, the feasibility study was completed and presented the City with positive results. Consequently, the City will seek funding of purchase price through federal grants. 41 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1999 Note 23 - COMMITMENTS AND CONTINGENCIES (CONT'D.) Multi-Purpose Events Center As disclosed in Note 22 of the general purpose financial statements, the City owns 50% of the Multi-Purpose Events Center, a joint venture with the County. The Center was originally designed to consist of an exhibit hall, an agricultural complex and a coliseum; however, only the exhibit hall and agricultural complex have been constructed. Currently, the joint venture is pursuing the construction of the coliseum. It is estimated that the coliseum will cost approximately $20 million to construct and the funding of the project is pending. However, the City has committed to fund at least a portion of the project, but the amount has not been determined. 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, and the Home Investment Partnership Agreement Program. In connection with these grants, the City is required to comply with specific terms and agreements as well as applicable Federal and State laws and regulations. Such compliance is subject to review and audit by the grantors and their representatives. In the opinion of management, the City has complied with all requirements. However, since such programs are subject to future audit or review, the possibility of disallowed expenditures exists. In the event of any disallowance of claimed expenditures, the City expects the resulting liability to be immaterial. 42 REQUIRED SUPPLEMENTARY INFORMATION EXHIBIT B-1 CITY OF WICHITA FALLS, TEXAS TEXAS MUNICIPAL RETIREMENT SYSTEM -ANALYSIS OF FUNDING PROGRESS - LAST TEN PLAN YEARS (UNAUDITED)* (1) (2) (3) (4) (5) (6) Unfunded UAAL as a Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll Date of Assets Liability (AAL) (1) = (2) (2)-(1) Payroll (4) ± (5) 12/31/89 $ 27,272,637 $32,538,508 83.8% $ 5,265,871 $17,737,825 29.7% 12/31/90 30,732,508 36,338,409 84.6% 5,605,901 18,827,230 29.8% 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% 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. 43 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) = (2) (2) - (1) Payroll (4) _ (5) 4/30/90(a) $ 9,281,696 $ 11,770,360 78.9% $ 2,488,664 $ 3,774,905 65.9% 4/30/91 (d) - - - - - - 4/30/92(b) 11,436,828 13,488,758 84.8% 2,051,930 3,917,100 52.4% 4/30/93(d) - - - - - - 4/30/94(d) - - - - - - 4/30/95(c) 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(d) Analysis of the dollar amounts of the actuarial value of assets,actuarial accrued liability,and unfunded actuarial accrued liability in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability provides one indication of the City's funding status on a going-concern basis. Analysis of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally,the greater this percentage,the stronger the pension plan. Trends in unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the City's progress made in accumulating sufficient assets to pay benefits when due. Generally,the smaller the percentage,the stronger the pension plan. (a) During 1990,the plan was amended to increase standard retirement benefits from 1.63%to 1.90%of the firefighters average salary multiplied by years of service. This amendment increased the actuarial accrued liability as of April 30, 1990 by approximately$314,000. (b) During 1992,the plan was amended to increase standard retirement benefits from 1.90%to 2.01%of the firefighter's average salary multiplied by years of service. This amendment increased the actuarial accrued liability as of October 1, 1992 by approximately$1,100,000. (c) During 1995,the plan was amended to increase standard retirement benefits from 2.01%to 2.10%of the firefighter's average salary multiplied by years of service. Additionally,the minimum benefit for retired firefighters was raised from$300 per month to$400 per month. Widows minimum monthly payments were raised to remain two-thirds of the minimum for retired firefighters. Two additional payment options were also added to the plan's provisions. These amendments increased the actuarial accrued liability as of October 1, 1995 by approximately$660,000. (d) 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, 1997. Additional historical trend information will be disclosed in future periods as it becomes available. 44 EXHIBIT B-3 (Page 1 of 2) CITY OF WICHITA FALLS, TEXAS YEAR 2000 ISSUES (UNAUDITED) In accordance with Governmental Accounting Standards Board ("GASB") Technical Bulletin 98-1, "Disclosures About Year 2000 Issues", as amended by GASB Technical Bulletin 99-1, following are disclosures about the year 2000 issues in general and of the stages of work inprocess or completed at year 9 P end by the City of Wichita Falls, Texas ("City") to address year 2000 issues for computer systems and other electronic equipment. The year 2000 issue is the result of shortcomings in many electronic data processing systems and other equipment that may adversely affect operations in the year 1999 and beyond. For many years, programmers eliminated the first two digits from a year when writing programs. For example, programmers would designate January 1, 1965 as "01/01/65" instead of "01/01/1965". On January 1, 2000 at 12:00:01 a.m., the internal clock in computers and other equipment will roll over from "12/31/99" to "01/01/00". Unfortunately, many programs (if not corrected) will not be able to distinguish between the year 2000 and the year 1900. This may cause the programs to process data inaccurately or to stop processing data altogether. Another factor that may cause problems in programs is the leap year calculation. Some programs are unable to detect the year 2000 as a leap year. Problems affecting a wide range of governmental activities will likely result if computers and other electronic equipment that are dependent upon date-sensitive coding are not corrected. These problems have the potential for causing a disruption to some government operations and may temporarily increase the cost of those operations. There was no significant amounts committed at September 30, 1999 by the City to address year 2000 issues for computer systems and other electronic equipment. The following stages of work have been identified by GASB Technical Bulletin 98-1, "Disclosures About Year 2000 Issues", as amended by GASB Technical Bulletin 99-1, as necessary to address the year 2000 issue. These stages were adapted by the GASB from U.S. Securities and Exchange Commission ("SEC"), Division of Market Regulation Year 2000("Y2K") Work Program (January 1998). 1. Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue. 2. Assessment Stage - When the organization begins the actual process of identifying all of its systems (preparing an inventory) and individual components of the systems. An organization may decide to review all system components or, through a risk analysis, identify only mission-critical systems and equipment--systems and equipment critical to conducting operations. 3. Remediation Stage - When the organization actually makes changes to systems and equipment. This stage deals primarily with the technical issues of converting existing systems, or switching to compliant systems. During this stage, decisions are made on how to address year 2000 system or equipment issues, and the required changes are made. 4. Validation/Testing Stage - When the organization validates and tests the changes made during the conversion process. The development of test data and test scripts, the running of test scripts, and the review of test results are crucial for this stage of the conversion process to be successful. If the testing results show anomalies, the tested area needs to be corrected and retested. At September 30, 1999, the City was in the validation/testing stage as defined above. 45 EXHIBIT B-3 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS YEAR 2000 ISSUES (UNAUDITED) (CONT'D.) Disclosures as an Issuer of Municipal Securities Since the City is an issuer of municipal securities, the following disclosures are made in accordance with U.S. Securities and Exchange Commission's "Statement of the Commission Regarding Disclosure of Year 2000 Issues and Consequences by Public Companies, Investment Advisors, Investment Companies, and Municipal Securities Issuers" (17 CFR Parts 231, 241, 271, 276), section III. C., "Guidance for Year 2000 Disclosure for Municipal Issuers" ("Statement"). These disclosures are made in addition to the applicable disclosures made in the preceding paragraphs of this note. For issuers of municipal securities, year 2000 issues may be divided into three categories: internal, external and mechanical. These categories of issues are defined by the Statement as follows: 1. Internal Issues Internal year 2000 issues may arise from an issuers own operations and materially affect its creditworthiness and ability to make timely payment of its obligations. 2. External Issues External year 2000 issues may arise from parties, other than an issuer, that provide payments that support the debt service on an issuers municipal securities, or the impact of year 2000 problems facing other external parties on the issuers own ability to satisfy its responsibilities. 3. Mechanical Issues Mechanical year 2000 issues may arise if year 2000 problems disrupt the actual mechanical process used to send payments to bondholders or the ability to assess and collect ad valorem taxes and allocate receipts and disbursements to proper funds in a timely manner to make debt service payments when due. While year 2000 problems may not directly affect an issuer's ability to pay debt service, they may affect an issuer's general accounting and payment functions, which may be material to investors. The City's management believes that each of these three categories of issues has been adequately considered in the planning and implementation of its work in preparing for the year 2000. 46 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. EXHIBIT C-1 CITY OF WICHITA FALLS, TEXAS GENERAL FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1999 AND 1998 1999 1998 ASSETS Cash and cash equivalents $ 7,966,212 $ 9,143,077 Investments 2,998,125 1,499,297 Receivables: Taxes and assessments (less $556,941 and $584,785 allowance for uncollectible accounts) 778,370 758,761 Other City funds 1,121,204 1,533,815 Government agencies 2,648,461 2,371,947 Other 681,063 533,460 Inventory 35,152 49,173 Prepaid items 34,960 52,118 Total assets $ 16,263,547 $15,941,648 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 456,304 $ 408,183 Accrued payroll 1,292,934 1,170,237 Accrued vacation and sick leave 150,000 100,000 Payable to other City funds 777,789 304,363 Payable to government agencies 93,159 85,728 Other liabilities 1,222,099 997,740 Deferred revenue 764,895 785,730 Total liabilities 4,757,180 3,851,981 Fund balance: Reserved for encumbrances 1,222,962 1,567,545 Reserved for inventory and prepaid items 70,112 101,291 Unreserved: Designated for subsequent years expenditures 3,000,000 3,000,000 Undesignated 7,213,293 7,420,831 Total fund balance 11,506,367 12,089,667 Total liabilities and fund balance $ 16,263,547 $15,941,648 47 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, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Taxes: Ad valorem taxes $12,996,417 $ 13,510,149 $ 513,732 $12,816,214 Penalties and interest 170,000 167,068 (2,932) 175,847 City sales tax 14,170,000 14,541,292 371,292 13,932,984 Franchise taxes 5,310,000 5,422,603 112,603 5,243,568 Other taxes 390,000 368,130 (21,870) 376,227 Total taxes 33,036,417 34,009,242 972,825 32,544,840 Charges for services: Administrative overhead reimbursements 805,511 839,482 33,971 799,416 Data processing services 356,397 344,599 (11,798) 266,819 School nurse program and other health services 761,882 750,330 (11,552) 626,696 Other service charges 311,965 345,583 33,618 385,059 Total charges for services 2,235,755 2,279,994 44,239 2,077,990 Licenses and permits: Building permits 165,000 195,734 30,734 130,015 Electrical and plumbing 125,000 137,326 12,326 134,720 Health and animal control 135,000 143,723 8,723 126,377 Other licenses and permits 38,800 59,206 20,406 44,460 Total licenses and permits 463,800 535,989 72,189 435,572 Fines and forfeitures: Municipal Court 1,451,000 1,158,289 (292,711) 1,458,968 Forfeitures and confiscated funds 2,000 234 (1,766) 932 Library 30,000 29,404 (596) 27,085 Total fines and forfeitures 1,483,000 1,187,927 (295,073) 1,486,985 Intergovernmental revenue: Operating grants 67,700 61,782 (5,918) 67,290 Total intergovernmental revenue 67,700 61,782 (5,918) 67,290 48 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 (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues (Cont'd.): Contributions: Donations - 12,155 12,155 - Total contributions - 12,155 12,155 - Miscellaneous revenue: Rentals and concessions 175,228 194,223 18,995 178,670 Interest 896,000 1,008,420 112,420 1,174,390 Other 60,600 330,857 270,257 217,532 Total miscellaneous revenue 1,131,828 1,533,500 401,672 1,570,592 Total revenues 38,418,500 39,620,589 1,202,089 38,183,269 Expenditures: Administrative services: Mayor and City Council 55,709 55,708 1 50,718 City Manager 302,607 301,907 700 330,290 Personnel/Risk Management 484,475 482,679 1,796 382,918 Martin Luther King Center 97,519 96,244 1,275 98,255 Farmer's Market 2,196 1,523 673 2,426 Library 1,270,042 1,267,101 2,941 1,066,638 Activities Center - - - 20,688 General Public Information 149,385 140,792 8,593 92,359 Duplicating Services 83,244 82,659 585 54,205 Building Maintenance 1,002,104 960,758 41,346 916,454 Nondepartmental 1,944,071 1,925,160 18,911 1,694,168 Municipal Court 449,241 424,683 24,558 432,420 Legal 455,180 442,650 12,530 426,129 City Clerk 149,481 133,869 15,612 107,536 Total administrative services 6,445,254 6,315,733 129,521 5,675,204 Police 12,142,074 12,010,858 131,216 11,445,357 Fire 7,896,856 7,881,632 15,224 7,567,904 Parks and recreation: Recreation 650,408 649,448 960 725,278 Park maintenance 2,156,511 2,110,408 46,103 2,087,445 Cemetery 156,479 137,099 19,380 134,935 Total parks and recreation 2,963,398 2,896,955 66,443 2,947,658 49 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 (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Expenditures (Cont'd.): Accounting/finance: Accounting/finance 396,089 392,495 3,594 326,140 Information systems 769,134 765,764 3,370 706,300 Purchasing 144,672 142,514 2,158 108,741 Total accounting/finance 1,309,895 1,300,773 9,122 1,141,181 Community development: Planning 301,321 301,318 3 269,319 Inspection 441,663 441,366 297 417,527 Code enforcement 164,473 164,051 422 164,521 Property management 60,604 59,579 1,025 65,618 Lake lot administration 84,517 81,888 2,629 74,008 Total community development 1,052,578 1,048,202 4,376 990,993 Public works: Engineering 2,314,783 1,661,152 653,631 1,257,684 Street maintenance 2,802,228 2,777,143 25,085 2,814,194 General public works 398,331 357,930 40,401 924,228 ISTEA enhancements 316,280 18,714 297,566 713,760 Total public works 5,831,622 4,814,939 1,016,683 5,709,866 Health: Administration 493,136 488,710 4,426 402,302 General City nursing 509,068 505,829 3,239 460,990 School nursing program 368,088 364,247 3,841 431,051 Environmental health 750,990 750,513 477 669,436 Lab water pollution 243,202 231,826 11,376 240,148 Total health 2,364,484 2,341,125 23,359 2,203,927 Traffic and transportation 1,563,084 1,561,804 1,280 1,487,177 Capital outlay 808,134 299,312 508,822 1,773,519 Debt service: Principal retirement 2,350 2,350 - 2,149 Interest and paying agent fees 357 357 - 558 Total debt service 2,707 2,707 - 2,707 Total expenditures 42,380,086 40,474,040 1,906,046 40,945,493 50 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 (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Excess of revenues over(under) expenditures (3,961,586) (853,451) 3,108,135 (2,762,224) Other financing sources (uses): Operating transfers in 1,089,932 1,089,932 - 1,183,902 Operating transfers out (561,294) (560,106) 1,188 (292,158) Total other financing sources (uses) 528,638 529,826 1,188 891,744 Excess of revenues and other sources over(under) expenditures and other uses $ (3,432,948) (323,625) $3,109,323 (1,870,480) Fund balance - beginning 12,089,667 13,960,147 Residual equity transfer (259,675) - Fund balance - ending $ 11,506,367 $12,089,667 51 Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to be expended for specified purposes. Five individual funds are reported within the Special Revenue Funds as follows: Community Development Block Grant Fund The Community Development Block Grant Fund accounts for federal block grant revenues and related expenditures. Section 8 Housina Fund The Section 8 Housing Fund accounts for federal funds received to subsidize rents and housing payments for lower income families within the City. Home Investment Partnership Aareement 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. 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, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 Home Community Investment Development Section 8 Partnership Block Grant Housing Agreement ASSETS Cash and cash equivalents $ - $729,039 $ - Receivables: Taxes and assessments - - - Other City funds - - - Government agencies 2,332,743 24,923 866,869 Other 7,185 - - Prepaid items 18,000 - - Other assets - - - Total assets $2,357,928 $753,962 $ 866,869 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade $ 58,561 $ 1,699 $ 27,288 Accrued payroll 16,297 11,183 3,313 Payable to other City funds 300,220 - 163,281 Payable to government agencies - 191,700 - Other liabilities - 68,925 32,715 Deferred revenue - - - Total liabilities 375,078 273,507 226,597 Fund balance: Reserved for encumbrances 24,927 3,571 - Reserved for prepaid items 18,000 - - Unreserved: Designated for subsequent years expenditures 1,939,923 476,884 640,272 Undesignated - - - Total fund balance 1,982,850 480,455 640,272 Total liabilities and fund balance $2,357,928 $753,962 $ 866,869 52 EXHIBIT D-1 Hotel/ Miscellaneous Motel Special Totals Tax Revenue 1999 1998 $615,967 $ 1,677,352 $3,022,358 $2,754,673 82,491 - 82,491 80,691 - - - 42,632 - 581,533 3,806,068 4,092,060 - - 7,185 2,424 - - 18,000 18,000 - 3,000 3,000 3,000 $698,458 $ 2,261,885 $6,939,102 $6,993,480 $ - $ 84,308 $ 171,856 $ 267,511 80,890 111,683 89,069 - 417,050 880,551 1,465,303 - 3,208 194,908 150,962 - 29,071 130,711 340,215 - 166,837 166,837 - - 781,364 1,656,546 2,313,060 - 845,737 874,235 201,397 - - 18,000 18,000 - 621,636 3,678,715 3,862,754 698,458 13,148 711,606 598,269 698,458 1,480,521 5,282,556 4,680,420 $698,458 $ 2,261,885 $6,939,102 $6,993,480 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, 1999 WITH COMPARATIVE ACTUAL TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1998 Home Community Investment Development Section 8 Partnership Block Grant Housing Agreement Revenues: Taxes $ - $ - $ - Charges for services 9,103 - - Fines and forfeitures - - - Intergovernmental revenue 1,784,000 2,522,741 444,700 Contributions - - - Miscellaneous revenue 1,213 37,274 22,170 Total revenues 1,794,316 2,560,015 466,870 Expenditures: Current: Administrative services 90,000 - - Police - - - Fire - - - Parks and recreation 58,272 - - Community development 970,636 2,534,180 564,729 Public works 302,408 - - Health 137,805 - - Traffic and transportation - - - Capital outlay 1,530 - - Total expenditures 1,560,651 2,534,180 564,729 Excess of revenues over(under)expenditures 233,665 25,835 (97,859) 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 233,665 25,835 (97,859) Fund balance-beginning 1,749,185 454,620 738,131 Residual equity transfers - - - Fund balance-ending $ 1,982,850 $ 480,455 $ 640,272 53 EXHIBIT D-2 Totals 1999 1998 Miscellaneous Variance- Hotel/Motel Special Favorable Tax Revenue Actual Budget (Unfavorable) Actual , $ 1,006,994 $ - $ 1,006,994 $ 860,000 $ 146,994 $ 903,189 - 20,631 29,734 25,160 4,574 20,418 - 81,014 81,014 81,661 (647) 205,737 - 2,542,585 7,294,026 9,910,835 (2,616,809) 7,756,926 - 94,747 94,747 94,747 - 376,228 29,231 539,295 629,183 519,791 109,392 490,132 1,036,225 3,278,272 9,135,698 11,492,194 (2,356,496) 9,752,630 883,431 141,027 1,114,458 1,401,176 286,718 1,318,202 - 524,883 524,883 1,493,374 968,491 562,168 - 240 240 9,001 8,761 7,680 - 357,438 415,710 1,345,857 930,147 444,467 - 357,139 4,426,684 6,419,537 1,992,853 4,710,693 - 29,832 332,240 792,690 460,450 273,591 - 1,527,079 1,664,884 1,869,713 204,829 1,539,960 - 162,125 162,125 246,058 83,933 341,939 - 231,136 232,666 2,117,483 1,884,817 536,448 883,431 3,330,899 8,873,890 15,694,889 6,820,999 9,735,148 152,794 (52,627) 261,808 (4,202,695) 4,464,503 17,482 - 502,822 502,822 596,544 (93,722) 204,013 (39,457) (85,369) (124,826) (128,063) 3,237 (126,511) (39,457) 417,453 377,996 468,481 (90,485) 77,502 113,337 364,826 639,804 $ (3,734,214) $ 4,374,018 94,984 585,121 1,153,363 4,680,420 4,585,436 - (37,668) (37,668) - $ 698,458 $ 1,480,521 $ 5,282,556 $ 4,680,420 EXHIBIT D-3 CITY OF WICHITA FALLS, TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1999 AND 1998 1999 1998 ASSETS Cash and cash equivalents $ - $ 220,388 Receivables: Government agencies 2,332,743 2,201,625 Other 7,185 2,136 Prepaid items 18,000 18,000 Total assets $2,357,928 $ 2,442,149 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ 58,561 $ 152,462 Accrued payroll 16,297 14,197 Payable to other City funds 300,220 526,305 Total liabilities 375,078 692,964 Fund balance: Reserved for encumbrances 24,927 156,680 Reserved for prepaid items 18,000 18,000 Unreserved: Designated for subsequent years expenditures 1,939,923 1,574,505 Total fund balance 1,982,850 1,749,185 Total liabilities and fund balance $2,357,928 $ 2,442,149 54 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, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Charges for services: Miscellaneous $ - $ 9,103 $ 9,103 $ 3,861 Intergovernmental revenue: Operating grants 1,784,000 1,784,000 - 1,900,000 Miscellaneous revenue: Other - 1,213 1,213 5,609 Total revenues 1,784,000 1,794,316 10,316 1,909,470 Expenditures: Current: Administrative services 144,597 90,000 54,597 90,000 Parks and recreation 358,272 58,272 300,000 133,805 Community development 1,792,722 970,636 822,086 1,286,035 Public works 357,164 302,408 54,756 262,104 Health 137,805 137,805 - 132,679 Traffic and transportation - - - 26,965 Capital outlay 706,992 1,530 705,462 16,143 Total expenditures 3,497,552 1,560,651 1,936,901 1,947,731 Excess of revenues over(under) expenditures $ (1,713,552) 233,665 $ 1,947,217 (38,261) Fund balance - beginning 1,749,185 1,787,446 Fund balance- ending $ 1,982,850 $ 1,749,185 55 EXHIBIT D-5 CITY OF WICHITA FALLS, TEXAS SECTION 8 HOUSING FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1999 AND 1998 1999 1998 ASSETS Cash and cash equivalents $ 729,039 $ 891,704 Receivables: Government agencies 24,923 - Total assets $ 753,962 $ 891,704 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ 1,699 $ 15,719 Accrued payroll 11,183 7,676 Payable to government agencies 191,700 150,596 Other liabilities 68,925 263,093 Total liabilities 273,507 437,084 Fund balance: Reserved for encumbrances 3,571 12,793 Unreserved: Designated for subsequent years expenditures 476,884 441,827 Total fund balance 480,455 454,620 Total liabilities and fund balance $ 753,962 $ 891,704 56 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, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue: Operating grants $2,625,730 $ 2,522,741 $ (102,989) $2,265,872 Miscellaneous revenue: Interest - 32,188 32,188 36,346 Other - 5,086 5,086 3,306 Total miscellaneous revenue - 37,274 37,274 39,652 Total revenues 2,625,730 2,560,015 (65,715) 2,305,524 Expenditures: Current: Community development 2,646,638 2,534,180 112,458 2,265,880 Capital outlay 5,000 - 5,000 19,366 Total expenditures 2,651,638 2,534,180 117,458 2,285,246 Excess of revenues over(under) expenditures $ (25,908) 25,835 $ 51,743 20,278 Fund balance- beginning 454,620 434,342 Fund balance - ending $ 480,455 $ 454,620 57 EXHIBIT D-7 CITY OF WICHITA FALLS, TEXAS HOME INVESTMENT PARTNERSHIP AGREEMENT FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1999 AND 1998 1999 1998 ASSETS Receivables: Government agencies $ 866,869 $ 905,039 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ 27,288 $ 3,585 Accrued payroll 3,313 2,783 Payable to other City funds 163,281 135,796 Other liabilities 32,715 24,744 Total liabilities 226,597 166,908 Fund balance: Reserved for encumbrances - 103 Unreserved: Designated for subsequent years expenditures 640,272 738,028 Total fund balance 640,272 738,131 Total liabilities and fund balance $ 866,869 $ 905,039 58 -- 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, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue: Operating grants $ 520,000 $ 444,700 $ (75,300) $ 594,443 Miscellaneous revenue: Other - 22,170 22,170 - Total revenues 520,000 466,870 (53,130) 594,443 Expenditures: Current: Community development 1,316,777 564,729 752,048 468,287 Excess of revenues over (under) expenditures $ (796,777) (97,859) $ 698,918 126,156 Fund balance - beginning 738,131 611,975 Fund balance - ending $ 640,272 $ 738,131 59 EXHIBIT D-9 CITY OF WICHITA FALLS, TEXAS HOTEUMOTEL TAX FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1999 AND 1998 1999 1998 ASSETS Cash and cash equivalents $ 615,967 $ 504,430 Receivables: Taxes and assessments 82,491 80,691 Total assets $ 698,458 $ 585,121 LIABILITIES AND FUND BALANCE Liabilities $ - $ - Fund balance: Unreserved: Undesignated 698,458 585,121 Total liabilities and fund balance $ 698,458 $ 585,121 60 EXHIBIT D-10 CITY OF WICHITA FALLS, TEXAS HOTEUMOTEL TAX FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Taxes: Hotel/motel tax $ 860,000 $1,006,994 $ 146,994 $ 903,189 Miscellaneous revenue: Interest - 29,231 29,231 67,556 Total revenues 860,000 1,036,225 176,225 970,745 Expenditures: Current: Administrative services 889,201 883,431 5,770 1,007,261 Excess of revenues over(under) expenditures (29,201) 152,794 181,995 (36,516) Other financing sources (uses): Operating transfers out (42,349) (39,457) 2,892 (57,936) Excess of revenues and other sources over(under) expenditures and other uses $ (71,550) 113,337 $ 184,887 (94,452) Fund balance- beginning 585,121 679,573 Fund balance- ending $ 698,458 $ 585,121 61 EXHIBIT D-11 CITY OF WICHITA FALLS, TEXAS MISCELLANEOUS SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1999 AND 1998 1999 1998 ASSETS Cash and cash equivalents $ 1677352 $ 1,138,151 Receivables: Other City funds - 42,632 Government agencies 581,533 985,396 Other - 288 Other assets 3,000 3,000 Total assets $2,261,885 $ 2,169,467 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable-trade $ 84,308 $ 95,745 Accrued payroll 80,890 64,413 Payable to other City funds 417,050 803,202 Payable to government agencies 3,208 366 Other liabilities 29,071 52,378 Deferred revenue 166,837 - Total liabilities 781,364 1,016,104 Fund balance: Reserved for encumbrances 845,737 31,821 Unreserved: Designated for subsequent years expenditures 621,636 1,108,394 Undesignated 13,148 13,148 Total fund balance 1,480,521 1,153,363 Total liabilities and fund balance $2,261,885 $ 2,169,467 62 EXHIBIT D-12 (Page 1 of 2) 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, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Charges for services: Miscellaneous $ 25,160 $ 20,631 $ (4,529) $ 16,557 Fines and forfeitures: Forfeitures and confiscated funds 45,367 44,720 (647) 164,688 Municipal Court security fee 36,294 36,294 - 41,049 Total fines and forfeitures 81,661 81,014 (647) 205,737 Intergovernmental revenue: Operating grants 4,981,105 2,542,585 (2,438,520) 2,996,611 Contributions: Other governments 12,050 12,050 - 74,500 Donations 82,697 82,697 - 301,728 Total contributions 94,747 94,747 - 376,228 Miscellaneous revenue: Rentals and concessions 134,916 135,500 584 107,541 Interest 44,288 51,791 7,503 64,892 Recreation fees 202,263 202,263 - 182,038 Other 138,324 149,741 11,417 22,844 Total miscellaneous revenue 519,791 539,295 19,504 377,315 Total revenues 5,702,464 3,278,272 (2,424,192) 3,972,448 Expenditures: Current: Administrative services 367,378 141,027 226,351 220,941 Police 1,493,374 524,883 968,491 562,168 Fire 9,001 240 8,761 7,680 Parks and recreation 987,585 357,438 630,147 310,662 Community development 663,400 357,139 306,261 690,491 Public works 435,526 29,832 405,694 11,487 Health 1,731,908 1,527,079 204,829 1,407,281 Traffic and transportation 246,058 162,125 83,933 314,974 Capital outlay 711,992 231,136 480,856 500,939 Total expenditures 6,646,222 3,330,899 3,315,323 4,026,623 Excess of revenues over (under) expenditures (943,758) (52,627) 891,131 (54,175) 63 EXHIBIT D-12 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS MISCELLANEOUS SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL(CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Other financing sources (uses): Operating transfers in 596,544 502,822 (93,722) 204,013 Operating transfers out (85,714) (85,369) 345 (68,575) Total other financing sources (uses) 510,830 417,453 (93,377) 135,438 Excess of revenues and other sources over(under) expenditures and other uses $ (432,928) 364,826 $ 797,754 81,263 Fund balance - beginning 1,153,363 1,072,100 Residual equity transfer (37,668) - Fund balance- ending $ 1,480,521 $1,153,363 64 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, 1999 AND 1998 1999 1998 ASSETS Cash and cash equivalents $ 1,561,889 $ 1,553,006 Receivables: Taxes (net of allowance for uncollectible taxes of$106,623 and $112,384) 146,864 144,993 Government agencies 15,091 12,725 Total assets $ 1,723,844 $ 1,710,724 LIABILITIES AND FUND BALANCE Liabilities: Deferred revenue $ 145,407 $ 150,084 Fund balance: Unreserved: Designated for debt service 1,578,437 1,560,640 Total liabilities and fund balance $ 1,723,844 $ 1,710,724 65 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, 1999 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1998 1999 Variance - Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Taxes: Ad valorem taxes $2,101,875 $2,115,825 $ 13,950 $2,147,620 Expenditures: Debt service: Principal retirement 1,535,000 1,535,000 - 1,470,000 Interest and paying agent fees 873,314 869,467 3,847 935,390 Total expenditures 2,408,314 2,404,467 3,847 2,405,390 Excess of revenues over(under) expenditures (306,439) (288,642) 17,797 (257,770) Other financing sources (uses): Operating transfers in 306,439 306,439 - 306,615 Excess of revenues and other sources over(under) expenditures and other uses $ - $ 17,797 $ 17,797 48,845 Fund balance - beginning 1,560,640 1,511,795 Fund balance- ending $ 1,578,437 $ 1,560,640 66 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. 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. 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. 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 Proiects This fund was established to account for projects financed by the Wichita Falls 4B Sales Tax Corporation. Significant projects accounted for 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. CITY OF WICHITA FALLS, TEXAS CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 1980 1981 1981 Library General C.O. General G.O. General Renovations Improvements Improvements Improvements ASSETS Cash and cash equivalents $ 84,727 $ 161,927 $ 44,160 $ 1,285,933 Receivables: Taxes and assessments - - - - Component Unit - - - - Other - - - - Total assets $ 84,727 $ 161,927 $ 44,160 $ 1,285,933 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable-trade $ - $ - $ - $ - Tax anticipation notes payable 1,535,000 - - - Other liabilities - - - - Deferred revenue - - - - Total liabilities 1,535,000 - - - Fund balance: Unreserved: Designated for subsequent years expenditures - 161,927 44,160 1,285,933 Undesignated (1,450,273) - - - Total fund balance (1,450,273) 161,927 44,160 1,285,933 Total liabilities and fund balance $ 84,727 $ 161,927 $ 44,160 $ 1,285,933 67 EXHIBIT F-1 1985 1982 Holiday Capital General Creek Improvement 4B Sales Totals Improvements Project Assessments Tax Projects 1999 1998 $ 612,133 $ 4,047,551 $ 56,485 $ 16,175 $ 6,309,091 $ 6,130,693 - - - - - 157,580 - - - 3,028,157 3,028,157 - - 10,687 - - 10,687 11,289 $ 612,133 $ 4,058,238 $ 56,485 $ 3,044,332 $ 9,347,935 $ 6,299,562 $ - $ - $ - $ 16,175 $ 16,175 $ - - - - - 1,535,000 1,800,000 - - - - - 15,877 - - - - - 157,580 - - - 16,175 1,551,175 1,973,457 612,133 4,058,238 56,485 3,028,157 9,247,033 6,057,683 - - - - (1,450,273) (1,731,578) 612,133 4,058,238 56,485 3,028,157 7,796,760 4,326,105 $ 612,133 $ 4,058,238 $ 56,485 $ 3,044,332 $ 9,347,935 $ 6,299,562 CITY OF WICHITA FALLS, TEXAS CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 1980 1981 1981 Library General C.O. General G.O. General Renovations Improvements Improvements Improvements Revenues: Miscellaneous revenue: Capital improvement assessments $ - $ - $ - $ - Interest 427 7,928 2,144 33,552 Total revenues 427 7,928 2,144 33,552 Expenditures: Current: Public works: McGrath Creek improvements - 10,999 - 34,476 Capital outlay: Library renovations - - - - Fire stations - - - - Total capital outlay - - - - Debt service: Interest and paying agent fees 70,110 - - - Total expenditures 70,110 10,999 - 34,476 Excess of revenues over(under)expenditures (69,683) (3,071) 2,144 (924) Other financing sources (uses): Operating transfers in-component units 350,988 - - - Excess of revenues and other sources over(under)expenditures and other uses 281,305 (3,071) 2,144 (924) Fund balance-beginning (1,731,578) 164,998 42,016 1,286,857 Fund balance-ending $ (1,450,273) $ 161,927 $ 44,160 $ 1,285,933 68 EXHIBIT F-2 1985 1982 Holliday Capital General Creek Improvement 4B Sales Totals Improvements Project Assessments Tax Projects 1999 1998 $ - $ - $ 3,530 $ - $ 3,530 $ 526 29,719 210,745 2,528 - 287,043 331,543 29,719 210,745 6,058 - 290,573 332,069 - 83,478 - - 128,953 461,211 - - - 16,175 16,175 103,640 - - - 204,967 204,967- - - 221,142 221,142 103,640 - - - - 70,110 101,948 - 83,478 - 221,142 420,205 666,799 29,719 127,267 6,058 (221,142) (129,632) (334,730) - - - 3,249,299 3,600,287 356,894 29,719 127,267 6,058 3,028,157 3,470,655 22,164 582,414 3,930,971 50,427 - 4,326,105 4,303,941 $ 612,133 $ 4,058,238 $ 56,485 $ 3,028,157 $ 7,796,760 $ 4,326,105 Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the governing body is that the cost of providing the service to the general public on a continuing basis be recovered primarily through user charges. The Enterprise Funds include the following: Golf Fund The Golf Fund was established to account for the operating revenues and expenses of the Weeks Park Golf Course. The operations of the golf course, which include maintenance, the pro shop and food service, are supported by green and cart fees, and merchandise and food sales. Airport Fund The 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. 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 Urban Mass Transportation 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. CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 Golf Airport Transit ASSETS Current assets: Cash and cash equivalents $ 48,553 $ 630,521 $ - Investments - - - Receivables: Customer and trade - - - Government agencies - - 118,089 Other - 10,766 - Inventory 44,170 - - Prepaid items - - - Total current assets 92,723 641,287 118,089 Restricted assets: Cash and cash equivalents - - - Investments - - - Receivables: Other - - - Total restricted assets - - - Plant and equipment: Land and betterments 4,935 1,461,823 61,925 Buildings, systems and improvements 10,067 1,452,202 626,868 Machinery and equipment 40,444 16,283 17,579 Furniture and fixtures 3,175 3,495 1,152 Motor vehicles and equipment - - - Construction in progress - - - 58,621 2,933,803 707,524 Less accumulated depreciation (9,446) (1,915,335) (143,278) Total plant and equipment 49,175 1,018,468 564,246 Other assets: Deferred charges - - - Other assets - 10,000 - Total other assets - 10,000 - Total assets $ 141,898 $1,669,755 $682,335 69 EXHIBIT G-1 (Page 1 of 2) Water and Totals Sanitation Sewer 1999 1998 $ 8,266,136 $ 10,005,991 $ 18,951,201 $ 18,596,090 1,494,876 3,997,348 5,492,224 - 702,737 2,179,268 2,882,005 2,740,181 - 41,517 159,606 133,307 16,390 47,008 74,164 70,567 - 754,315 798,485 770,945 11,502 569 12,071 704 10,491,641 17,026,016 28,369,756 22,311,794 - 23,318,170 23,318,170 22,027,242 - 8,000 8,000 11,500 - 68,316 68,316 29,606 - 23,394,486 23,394,486 22,068,348 705,809 23,050,654 25,285,146 25,203,482 2,370,382 121,451,357 125,910,876 125,417,942 98,067 3,189,061 3,361,434 3,473,476 - 1,164 8,986 51,529 - 1,235 1,235 3,670 - 3,314,608 3,314,608 187,462 3,174,258 151,008,079 157,882,285 154,337,561 (893,019) (55,608,829) (58,569,907) (55,814,851) 2,281,239 95,399,250 99,312,378 98,522,710 - 2,220,772 2,220,772 1,468,970 - - 10,000 - - 2,220,772 2,230,772 1,468,970 $ 12,772,880 $ 138,040,524 $ 153,307,392 $ 144,371,822 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET(CONT'D.) SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 Golf Airport Transit LIABILITIES AND FUND EQUITY Current liabilities payable from current assets: Accounts payable-trade $ 12,289 $ 22,847 $ 43,327 Accrued payroll 14,713 2,529 21,246 Accrued vacation and sick leave 10,815 4,881 16,878 Payable to other City funds - - 14,244 Payable to government agencies 2,379 1,268 - Other liabilities - - - Deferred revenue - 2,259 - Total current liabilities payable from current assets 40,196 33,784 95,695 Current liabilities payable from restricted assets: Accounts payable-trade - - - 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 40,196 33,784 95,695 Fund equity: Contributed capital 8,279 2,292,192 824,496 Retained earnings (deficit): Reserved for revenue bond debt service - - - Unreserved 93,423 (656,221) (237,856) Total retained earnings (deficit) 93,423 (656,221) (237,856) Total fund equity 101,702 1,635,971 586,640 Total liabilities and fund equity $ 141,898 $1,669,755 $682,335 70 EXHIBIT G-1 (Page 2 of 2) Water and Totals Sanitation Sewer 1999 1998 $ 58,962 $ 644,783 $ 782,208 $ 544,478 109,147 215,618 363,253 321,564 88,450 189,300 310,324 293,650 2,080 16,324 217,027 43,328 - 46,975 47,262 3,833 48,960 52,793 138,595 - - 2,259 2,259 303,720 1,100,741 1,574,136 1,564,835 116,272 116,272 41,286 8,025 8,025 8,025 2,345,000 2,345,000 1,965,000 - 484,713 484,713 503,827 2,954,010 2,954,010 2,518,138 880,018 880,018 902,629 58,695,000 58,695,000 55,030,000 3,092,094 - 3,092,094 3,061,479 3,092,094 59,575,018 62,667,112 58,994,108 - 1,965,653 1,965,653 1,849,026 3,395,814 65,595,422 69,160,911 64,926,107 2,909,150 19,906,908 25,941,025 25,522,917 7,833,617 7,833,617 7,478,660 6,467,916 44,704,577 50,371,839 46,444,138 6,467,916 52,538,194 58,205,456 53,922,798 9,377,066 72,445,102 84,146,481 79,445,715 $ 12,772,880 $138,040,524 $153,307,392 $144,371,822 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1998 Golf Airport Transit Operating revenues: Charges for services $ 626,509 $ - $ 150,866 Rents, concessions and other 138,945 347,113 - Total operating revenues 765,454 347,113 150,866 Operating expenses: Personnel services 414,443 60,892 526,386 Supplies and materials 100,729 72 40,395 Maintenance and repairs 40,858 68,945 63,934 Utilities and other services 65,926 57,478 30,209 Insurance and contract support 720 3,936 93,090 Other expenses 88,447 56,974 30,169 Depreciation and amortization 7,236 89,996 8,563 Total operating expenses 718,359 338,293 792,746 Operating income (loss) 47,095 8,820 (641,880) Nonoperating revenues (expenses): Interest income - 27,913 - Loss on sale/abandonment of fixed assets - (2,849) (2,835) Interest expense and paying agent fees - - - Intergovernmental operating grants - - 488,216 Total nonoperating revenues (expenses) - 25,064 485,381 Income (loss) before operating transfers 47,095 33,884 (156,499) Operating transfers: Operating transfers in - - 197,644 Operating transfers in - component units - - - Operating transfers out (8,295) (15,535) - Net operating transfers (8,295) (15,535) 197,644 Net income 38,800 18,349 41,145 Retained earnings (deficit) - beginning 54,623 (674,570) (276,165) Residual equity transfers - - (2,836) Retained earnings (deficit) - ending $ 93,423 $ (656,221) $ (237,856) 71 EXHIBIT G-2 Water and Totals Sanitation Sewer 1999 1998 $ 9,407,244 $ 21,144,331 $ 31,328,950 $ 29,851,770 21,868 227,237 735,163 519,916 9,429,112 21,371,568 32,064,113 30,371,686 2,787,742 5,314,863 9,104,326 8,497,162 309,697 1,251,580 1,702,473 1,598,929 295,191 2,115,521 2,584,449 4,583,186 2,595,212 3,876,282 6,625,107 6,198,025 176,816 345,060 619,622 448,444 437,834 823,295 1,436,719 1,308,985 61,025 3,079,592 3,246,412 3,103,606 6,663,517 16,806,193 25,319,108 25,738,337 2,765,595 4,565,375 6,745,005 4,633,349 425,781 1,854,513 2,308,207 1,598,631 (3,708) (44,499) (53,891)- (2,959,827) (2,959,827) (2,856,781) - - 488,216 385,812 422,073 (1,149,813) (217,295) (872,338) 3,187,668 3,415,562 6,527,710 3,761,011 - - 197,644 146,081 - - - 99,030 (373,313) (702,762) (1,099,905) (1,109,942) (373,313) (702,762) (902,261) (864,831) 2,814,355 2,712,800 5,625,449 2,896,180 4,989,122 49,829,788 53,922,798 52,067,637 (1,335,561) (4,394) (1,342,791) (1,041,019) $ 6,467,916 $ 52,538,194 $ 58,205,456 $ 53,922,798 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1998 Golf Airport Transit Cash flows from operating activities: Operating income (loss) $ 47,095 $ 8,820 $ (641,880) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 7,236 89,996 8,563 Customer deposits received - - - Landfill closure and postclosure care costs - - - (Increase) decrease in current assets: Receivables: Customer and trade - - - Government agencies - - (19,194) Other 135 515 - Inventory 2,411 - - Prepaid items 85 210 - Restricted assets - - - Increase (decrease) in current liabilities: Accounts payable-trade (29,826) 17,294 41,534 Accrued payroll 1,649 363 4,978 Accrued vacation and sick leave 8,794 3,357 - Payable to other City funds - (424) (96,900) Payable to government agencies (4,106) 812 - Other liabilities (2,547) - - Deferred revenue - - - Other liabilities payable from restricted assets - - - Total adjustments (16,169) 112,123 (61,019) Net cash provided by (used in) operating activities 30,926 120,943 (702,899) Cash flows from noncapital financing activities: Intergovernmental operating grants - - 488,216 Operating transfers in from other funds - - 197,644 Operating transfers in from component units - - - Operating transfers out to other funds (8,295) (15,535) - Residual equity transfers to other funds - - (2,836) Net cash provided by (used in) noncapital financing activities (8,295) (15,535) 683,024 72 EXHIBIT G-3 (Page 1 of 2) Water and Totals Sanitation Sewer 1999 1998 "' $ 2,765,595 $ 4,565,375 $ 6,745,005 $ 4,633,349 61,025 3,079,592 3,246,412 3,103,606 116,627 116,627 105,668 30,615 - 30,615 60,029 (41,531) (100,293) (141,824) (147,759) 4,838 (11,943) (26,299) 8,862 (16,390) 12,142 (3,598) 27,246 (29,951) (27,540) (40,401) (11,398) (264) (11,367) 2,526 (38,710) (38,710) 5,601 (50,522) 259,250 237,730 120,458 9,090 25,610 41,690 (175,989) (2,242) 6,765 16,674 293,650 (38,619) (64,760) (200,703) (25,715) 3,007 - (287) 10,589 (20,024) (63,231) (85,802) 74,581 - - 2,259 - 74,986 74,986 (258,915) (72,151) 3,265,820 3,228,604 3,166,296 2,693,444 7,831,195 9,973,609 7,799,645 - - 488,216 385,812 - - 197,644 146,081 - - - 99,030 (373,313) (702,762) (1,099,905) (1,109,942) (1,335,561) (4,394) (1,342,791) (1,041,019) (1,708,874) (707,156) (1,756,836) (1,520,038) CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1998 . Golf Airport Transit Cash flows from capital and related financing activities: - Proceeds from sale of revenue bonds - - - Acquisition and construction of capital assets (41,957) - - Payment of bond issuance costs - - - Principal paid on long-term debt maturities - - - Interest paid on long-term debt obligations - - - Other assets - (10,000) - Net cash provided by (used for) capital and related financing activities (41,957) (10,000) - Cash flows from investing activities: Purchase of investments - - - Interest investments - 27,913 - Net cash provided (used) by investing activities - 27,913 - Net increase (decrease) in cash and cash equivalents (19,326) 123,321 (19,875) Cash and cash equivalents at beginning of year 67,879 507,200 19,875 Cash and cash equivalents at end of year $ 48,553 $ 630,521 $ - Noncash capital and financing activities: Capital assets contributed to other City funds $ - $ - $ 2,836 Capital assets received from other City funds - - - Capital assets received from developers - - - Refunding bonds issued to defease outstanding bonds - - - Reconciliation of cash and cash equivalents on the combining balance sheet to the combining statement of cash flows: Cash and cash equivalents $ 48,553 $ 630,521 $ - Restricted assets - cash and cash equivalents - - - Total cash and cash equivalents at end of year $ 48,553 $ 630,521 $ - 73 EXHIBIT G-3 (Page 2 of 2) Water and Totals Sanitation Sewer 1999 1998 - 5,500,000 5,500,000 8,060,000 (8,473) (3,693,440) (3,743,870) (1,209,243) (55,265) (55,265) (213,875) - (2,161,899) (2,161,899) (1,876,209) - (2,919,183) (2,919,183) (2,728,757) - - (10,000) - (8,473) (3,329,787) (3,390,217) 2,031,916 (1,494,876) (3,993,848) (5,488,724) - 425,781 1,854,513 2,308,207 1,598,631 (1,069,095) (2,139,335) (3,180,517) 1,598,631 (92,998) 1,654,917 1,646,039 9,910,154 8,359,134 31,669,244 40,623,332 30,713,178 $ 8,266,136 $ 33,324,161 $ 42,269,371 $ 40,623,332 $ 1,335,561 $ 4,394 $ 1,342,791 $ 1,042,543 140,781 140,781 14,807 - 277,327 277,327 151,791 - 22,795,000 22,795,000 - $ 8,266,136 $ 10,005,991 $ 18,951,201 $ 18,596,090 - 23,318,170 23,318,170 22,027,242 $ 8,266,136 $ 33,324,161 $ 42,269,371 $ 40,623,332 I 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. 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, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 Employee Fleet Benefit Totals Maintenance Trust 1999 1998 ASSETS Current assets: Cash and cash equivalents $ 421,188 $ 279,420 $ 700,608 $ 1,021,462 Receivables: Other City funds - 777,789 777,789 425,099 Other 10,160 - 10,160 11,282 Inventory 652,300 - 652,300 620,603 Prepaid items 125 100 225 3,244 , Total current assets 1,083,773 1,057,309 2,141,082 2,081,690 Plant and equipment: Land and betterments 433,658 - 433,658 433,658 II Buildings, systems and improvements 4,010,098 - 4,010,098 4,010,098 Furniture and equipment 6,358 - 6,358 14,178 Motor vehicles and equipment 27,438,878 - 27,438,878 25,844,415 Construction in progress 6,706 - 6,706 2,636 31,895,698 - 31,895,698 30,304,985 Less accumulated depreciation (17,975,987) - (17,975,987) (17,292,615) Total plant and equipment 13,919,711 - 13,919,711 13,012,370 Total assets $ 15,003,484 $ 1,057,309 $ 16,060,793 $ 15,094,060 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable-trade $ 174,205 $ 20,471 $ 194,676 $ 271,242 Accrued payroll 58,533 5,015 63,548 57,522 Accrued vacation and sick leave 39,059 - 39,059 40,605 Payable to other City funds - 224,329 224,329 14,853 Estimated health claims payable - 543,887 543,887 464,555 Total current liabilities 271,797 793,702 1,065,499 848,777 Fund equity: Contributed capital 19,433,151 - 19,433,151 17,933,798 Retained earnings(deficit) (4,701,464) 263,607 (4,437,857) (3,688,515) Total fund equity 14,731,687 263,607 14,995,294 14,245,283 Total liabilities and fund equity $ 15,003,484 $ 1,057,309 $ 16,060,793 $ 15,094,060 74 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, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 Employee Fleet Benefit Totals Maintenance Trust 1999 1998 Operating revenues: Charges for services $ 6,066,953 $ 26,459 $ 6,093,412 $ 6,099,402 Rents, concessions and other 6,523 88,932 95,455 56,522 Contributions - 4,938,109 4,938,109 3,758,505 Total operating revenues 6,073,476 5,053,500 11,126,976 9,914,429 Operating expenses: Personnel services 1,230,208 112,962 1,343,170 1,313,116 Supplies and materials 1,381,646 4,952 1,386,598 1,361,230 Maintenance and repairs 1,373,411 1 1,373,412 1,302,801 I Utilities and other services 81,063 4,661 85,724 81,400 Insurance and contract support 84,183 4,277,625 4,361,808 3,203,944 Other expenses 213,438 630,117 843,555 739,842 Depreciation and amortization 2,318,388 - 2,318,388 2,154,519 Total operating expenses 6,682,337 5,030,318 11,712,655 10,156,852 Operating operating (loss) (608,861) 23,182 (585,679) (242,423) Nonoperating revenues(expenses): Interest income - 27,463 27,463 26,628 Gain on sale of fixed assets 120,874 - 120,874 67,203 Total nonoperating revenues (expenses) 120,874 27,463 148,337 93,831 Income(loss)before operating transfers (487,987) 50,645 (437,342) (148,592) Operating transfers: Operating transfers out (312,000) - (312,000) (312,000) Net income(loss) (799,987) 50,645 (749,342) (460,592) Retained earnings(deficit)-beginning (3,901,477) 212,962 (3,688,515) (3,227,923) Retained earnings (deficit)-ending $ (4,701,464) $ 263,607 $ (4,437,857) $ (3,688,515) 75 EXHIBIT H-3 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUNDS . COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 Employee Fleet Benefit Totals Maintenance Trust 1999 1998 Cash flows from operating activities: Operating income(lass) $ (608,861) $ 23,182 $ (585,679) $ (242,423) Adjustments to reconcile operating income to net cash provided(used)by operating activities: Depreciation and amortization 2,318,388 - 2,318,388 2,154,519 (Increase)decrease in current assets: Receivables: Other City funds - (352,690) (352,690) (81,377) Other 1,122 - 1,122 (11,282) Inventory (31,697) - (31,697) (34,184) Prepaid items 2,850 169 3,019 (3,144) Increase(decrease)in current liabilities: Accounts payable-trade (81,444) 4,878 (76,566) 128,117 Accrued payroll 5,308 718 6,026 (25,563) Accrued vacation and sick leave (1,546) - (1,546) 40,605 Payable to other City funds (14,853) 224,329 209,476 2,054 Estimated health claims payable - 79,332 79,332 1,413 Other liabilities - - - (2,943) Total adjustments 2,198,128 (43,264) 2,154,864 2,168,215 Net cash provided(used)by operating activities 1,589,267 (20,082) 1,569,185 1,925,792 Cash flows from noncapital financing activities: Operating transfers out to other funds (312,000) - (312,000) (312,000) Net cash used for noncapital financing activities (312,000) - (312,000) (312,000) Cash flows from capital and related financing activities: Acquisition of capital assets (1,773,214) - (1,773,214) (1,316,541) Proceeds from sale of fixed ascots 167,712 - 167,712 105,262 Net cash used for capital and related financing activities (1,605,502 - (1,605,502) (1,211,279) Cash flows from investing activities: Interest on investments - 27,463 27,463 26,628 Net increase(decrease)in cash and cash equivalents (328,235) 7,381 (320,854) 429,141 Cash and cash equivalents at beginning of year 749,423 272,039 1,021,462 592,321 I Cash and cash equivalents at end of year $ 421,1138 $ 279,420 $ 700,608 $ 1,021,462 Noncash capital activities: Capital ascots received from other City funds $ 1,499,153 $ - $ 1,499,353 $ 1,470,095 76 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, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 Expendable Nonexpendable Trust Trust Excess Cemetery Sales Tax Perpetual Fund Care ASSETS Cash and cash equivalents $ 362,985 $ 395,280 Receivables: Government agencies 26,024 - Other - - Total assets $ 389,009 $ 395,280 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ - $ - Payable to government agencies - - Other liabilities - - Total liabilities - - Fund balance: Designated for: Subsequent years expenditures 389,009 - Perpetual care - 395,280 Total fund balance 389,009 395,280 Total liabilities and fund balance $ 389,009 $ 395,280 77 EXHIBIT I-1 Agency Funds Payroll Escheatment Totals Fund Fund 1999 1998 $ 325,004 $ 38,346 $ 1,121,615 $ 736,099 - - 26,024 347,141 - - - 2,400 $ 325,004 $ 38,346 $ 1,147,639 $ 1,085,640 I $ 323,781 $ - $ 323,781 $ 20,057 1,218 - 1,218 1,120 5 38,346 38,351 358,844 325,004 38,346 363,350 380,021 - - 389,009 347,141 - - 395,280 358,478 - - 784,289 705,619 $ 325,004 $ 38,346 $ 1,147,639 $ 1,085,640 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, 1999 AND 1998 1999 1998 Revenues: Taxes $ 26,024 $ 347,141 Miscellaneous revenue 15,844 - Total revenues 41,868 347,141 Expenditures - - Excess revenues over(under) expenditures 41,868 347,141 Fund balance, beginning 347,141 - Fund balance, ending $ 389,009 $ 347,141 I 78 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, 1999 AND 1998 1999 1998 Operating revenue: Rents, concessions and other $ 20,230 $ 32,700 Operating expenses - - Operating income 20,230 32,700 Nonoperating revenue: Interest income 16,572 17,619 Net income 36,802 50,319 Fund balance, beginning 358,478 308,159 Fund balance, ending $ 395,280 $ 358,478 I 79 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, 1999 AND 1998 1999 1998 Cash flows from operating activities: Operating income $ 20,230 $ 32,700 Cash flows from investing activities: Interest on investments 16,572 17,619 Net increase in cash and cash equivalents 36,802 50,319 Cash and cash equivalents at beginning of year 358,478 308,159 1 Cash and cash equivalents at end of year $ 395,280 $ 358,478 I 80 EXHIBIT 1-5 CITY OF WICHITA FALLS, TEXAS AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED SEPTEMBER 30, 1999 Balance Balance 10/1/98 Additions Deductions 9/30/99 PAYROLL FUND ASSETS Cash and cash equivalents - $ 329,183 $ 51,739,029 $ 51,743,208 $ 325,004 Receivables: Government agencies - 13,952 13,952 - Total assets $ 329,183 $ 51,752,981 $ 51,757,160 $ 325,004 LIABILITIES Accounts payable-trade $ 20,057 $ 20,987,126 $ 20,683,402 $ 323,781 Payable to government agencies 1,120 98 - 1,218 Other liabilities 308,006 31,940,915 32,248,916 5 Total liabilities $ 329,183 $ 52,928,139 $ 52,932,318 $ 325,004 ESCHEATMENT FUND ASSETS Cash and cash equivalents $ 50,838 $ 8,549 $ 21,041 $ 38,346 Total assets $ 50,838 $ 8,549 $ 21,041 $ 38,346 LIABILITIES Accounts payable-trade $ - $ 12,098 $ 12,098 $ - Other liabilities 50,838 8,823 21,315 38,346 Total liabilities $ 50,838 $ 20,921 $ 33,413 $ 38,346 TOTALS-ALL AGENCY FUNDS ASSETS Cash and cash equivalents $ 380,021 $ 51,747,578 $ 51,764,249 $ 363,350 Receivables: Other City funds - 13,952 13,952 - Total assets $ 380,021 $ 51,761,530 $ 51,778,201 $ 363,350 LIABILITIES Accounts payable-trade $ 20,057 $ 20,999,224 $ 20,695,500 $ 323,781 Payable to government agencies 1,120 98 - 1,218 Other liabilities 358,844 31,949,738 32,270,231 38,351 Total liabilities $ 380,021 $ 52,949,060 $ 52,965,731 $ 363,350 81 Discretely Presented Component Units of the City of Wichita Falls are legally separate entities; however, the City is considered to be financially accountable for their operations. The three discretely presented component units are as follows: Wichita Falls Economic Development Corporation The Wichita Falls Economic Development Corporation is a nonprofit corporation formed in May 1997 for the purpose of increasing employment opportunities, primarily through assisting qualified enterprises with funds provided by a portion of the local sales tax. The Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A. Wichita Falls 4B Sales Tax Corporation The Wichita Falls 4B Sales Tax Corporation is a nonprofit corporation formed in May 1997 for the purpose of increasing employment opportunities and for public improvement projects such as parks, auditoriums, learning centers, open space improvements, athletic and exhibition facilities and the related maintenance and operating costs of such projects. These projects are funded by a portion of local sales tax. The Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4B. Wichita Falls Reinvestment Zone #1 The Wichita Falls Reinvestment Zone #1 was created in March 1986 by the City, with the advice and consent of the Wichita Falls Independent School District and Wichita County. The purpose of the Wichita Falls Reinvestment Zone #1 is to capture increments of growth in real property values in the designated zone area from base values established in January 1986 and use the ad valorem taxes derived from the increments to contribute to the zoned area. Tax funds derived from the increment can only be spent for public improvements in the zoned area or for payment of debt service on bonds issued to provide funds for public improvements. CITY OF WICHITA FALLS, TEXAS DISCRETELY PRESENTED COMPONENT UNITS COMBINING BALANCE SHEET SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 Wichita Falls Economic Wichita Falls Development 4B Sales Tax Corporation Corporation ASSETS Cash and cash equivalents $ 3,859,930 $ 2,900,890 Receivables: Taxes and assessments - - Government agencies 405,628 405,628 Total assets $ 4,265,558 $ 3,306,518 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable -trade Payable to primary government - 3,028,157 Total fund balance - 3,028,157 Fund balance: Reserved for encumbrances - - Unreserved: Designated for subsequent years expenditures 4,265,558 278,361 Total fund balance 4,265,558 278,361 Total liabilities and fund balance $ 4,265,558 $ 3,306,518 82 EXHIBIT J-1 Wichita Falls Reinvestment Totals Zone#1 1999 1998 $ 492,013 $ 7,252,833 $ 2,704,942 6,177 6,177 8,503 811,256 853,512 $ 498,190 $ 8,070,266 $ 3,566,957 $ - $ $ 9,738 3,028,157 - 3,028,157 9,738 640,000 498,190 5,042,109 2,917,219 498,190 5,042,109 3,557,219 $ 498,190 $ 8,070,266 $ 3,566,957 CITY OF WICHITA FALLS, TEXAS DISCRETELY PRESENTED COMPONENT UNITS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SEPTEMBER 30, 1999 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1998 Wichita Falls Economic Wichita Falls Development 4B Sales Tax Corporation Corporation Revenues: Taxes $ 2,419,431 $ 2,419,431 Miscellaneous revenue 129,871 105,364 Total revenues 2,549,302 2,524,795 Expenditures: Current: Administrative services - - Community development 94,190 2,005 Total expenditures 94,190 2,005 Excess revenues over expenditures 2,455,112 2,522,790 Other financing sources (uses): Operating transfers out- primary government - (3,600,287) Excess of revenues and other sources over(under) expenditures and other uses 2,455,112 (1,077,497) Fund balance- beginning 1,810,446 1,355,858 Fund balance - ending $ 4,265,558 $ 278,361 83 EXHIBIT J-2 Wichita Falls Reinvestment Totals Zone #1 1999 1998 $ 107,380 $ 4,946,242 $ 4,901,855 18,738 253,973 79,136 126,118 5,200,215 4,980,991 - - 1,400 18,843 115,038 1,246,154 18,843 115,038 1,247,554 107,275 5,085,177 3,733,437 - (3,600,287) (455,924) 107,275 1,484,890 3,277,513 390,915 3,557,219 279,706 $ 498,190 $ 5,042,109 $ 3,557,219 SUPPORTING SCHEDULES CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES SEPTEMBER 30, 1999 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 on Bonds and Interest 2000 $ 1,610,000 $ 796,975 $ 2,406,975 $ 1,665,000 $ 931,350 $ 2,596,350 2001 1,690,000 719,775 2,409,775 1,745,000 885,995 2,630,995 2002 1,770,000 636,910 2,406,910 1,830,000 774,985 2,604,985 2003 1,850,000 547,565 2,397,565 1,915,000 688,395 2,603,395 2004 1,950,000 453,305 2,403,305 2,005,000 596,085 2,601,085 2005 2,050,000 351,995 2,401,995 2,105,000 496,400 2,601,400 2006 2,160,000 243,365 2,403,365 2,210,000 391,170 2,601,170 2007 570,000 126,740 696,740 2,325,000 278,710 2,603,710 2008 600,000 94,820 694,820 260,000 159,435 419,435 2009 635,000 60,920 695,920 270,000 148,775 418,775 2010 430,000 24,725 454,725 280,000 137,570 417,570 2011 - - - 295,000 125,670 420,670 2012 - - - 305,000 112,838 417,838 2013 - - - 320,000 99,265 419,265 2014 - - - 335,000 84,705 419,705 2015 - - - 350,000 69,462 419,462 2016 - - - 365,000 53,188 418,188 2017 - - - 385,000 36,306 421,306 2018 - - - 400,000 18,500 418,500 $ 15,315,000 $ 4,057,095 $ 19,372,095 $ 19,365,000 $ 6,088,804 $ 25,453,804 84 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 $ 680,000 $ 1,844,798 $ 2,524,798 $ 3,955,000 $ 3,573,123 $ 7,528,123 705,000 1,818,013 2,523,013 4,140,000 3,423,783 7,563,783 725,000 1,792,100 2,517,100 4,325,000 3,203,995 7,528,995 760,000 1,764,723 2,524,723 4,525,000 3,000,683 7,525,683 800,000 1,731,300 2,531,300 4,755,000 2,780,690 7,535,690 830,000 1,695,975 2,525,975 4,985,000 2,544,370 7,529,370 870,000 1,662,825 2,532,825 5,240,000 2,297,360 7,537,360 900,000 1,627,545 2,527,545 3,795,000 2,032,995 5,827,995 3,250,000 1,590,885 4,840,8,55 4,110,000 1,845,140 5,955,140 3,385,000 1,460,750 4,845,750 4,290,000 1,670,445 5,960,445 3,505,000 1,320,997 4,825,997 4,215,000 1,483,292 5,698,292 3,660,000 1,065,664 4,725,664 3,955,000 1,191,334 5,146,334 3,820,000 1,016,174 4,836,174 4,125,000 1,129,012 5,254,012 2,625,000 847,997 3,472,997 2,945,000 947,262 3,892,262 2,750,000 722,016 3,472,016 3,085,000 806,721 3,891,721 2,885,000 588,538 3,473,538 3,235,000 658,000 3,893,000 3,025,000 446,960 3,471,960 3,390,000 500,148 3,890,148 3,180,000 298,350 3,478,350 3,565,000 334,656 3,899,656 3,320,000 152,388 3,472,388 3,720,000 170,888 3,890,888 $ 41,675,000 $ 23,447,998 $ 65,122,998 $ 76,355,000 $ 33,593,897 $ 109,948,897 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE SEPTEMBER 30, 1999 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments General Obligation Bonds: Certificates of Obligation, 2.75,3.20,3.60,4.00, 08/01/92 09/01/10 80,000 (1993) Series 1992 4.25,4.50,4.70,4.90, 100,000 (1994) 5.10,5.20,5.30,5.45, 105,000 (1995) 5.55,5.60,5.65,5.70, 105,000 (1996) 5.75 110,000 (1997) (3/1,9/1) 115,000 (1998) 120,000 (1999) 125,000 (2000) 135,000 (2001) 140,000 (2002) 145,000 (2003) 155,000 (2004) 160,000 (2005) 170,000 (2006) 570,000 (2007) 600,000 (2008) 635,000 (2009) 430,000 (2010) 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) Total General Obligation Bonds 85 EXHIBIT K-2 (Page 1 of 4) Bonds Retired or Authorized Issued Refunded Outstanding $ 4,000,000 $ 4,000,000 $ 735,000 $ 3,265,000 7,250,000 7,250,000 2,050,000 5,200,000 9,000,000 9,000,000 2,150,000 6,850,000 20,250,000 20,250,000 4,935,000 15,315,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE (CONTD.) SEPTEMBER 30, 1999 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) 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) 1.'1.5,000 (2014) 350,000 (2015) 365,000 (2016) 385,000 (2017) 400,000 (2018) Total Priority Lien Revenue Bonds 86 EXHIBIT K-2 (Page 2 of 4) Bonds Retired or Authorized Issued Refunded Outstanding 12,830,000 12,830,000 2,975,000 9,855,000 5,360,000 5,360,000 1,135,000 4,225,000 5,500,000 5,500,000 215,000 5,285,000 23,690,000 23,690,000 4,325,000 19,365,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.) SEPTEMBER 30, 1999 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments Subordinate Lien: Water and Sewer Subordinate Lien 3.35,3.60,3.75,3.85, 06/01/96 08/01/16 100,000 (1998) Revenue Bonds,Series 1996 3.95,4.05,4.15,4.25, 100,000 (1999) 4.35,4.45,4.55,4.65, 105,000 (2000) 4.70,4.75,4.80,4.85, 110,000 (2001) 4.90,4.95,4.95 115,000 (2002) (2/1,8/1) 125,000 (2003) 135,000 (2004) 135,000 (2005) 145,000 (2006) 150,000 (2007) 25,000 (2008) 25,000 (2009) 25,000 (2010) 25,000 (2011) 25,000 (2012) 2,300,000 (2013) 2,440,000 (2014) 2,585,000 (2015) 2,750,000 (2016) 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) 87 EXHIBIT K-2 (Page 3 of 4) Bonds Retired or Authorized Issued Refunded Outstanding 11,420,000 11,420,000 200,000 11,220,000 8,060,000 8,060,000 25,000 8,035,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.) SEPTEMBER 30, 1999 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments 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 88 EXHIBIT K-2 (Page 4 of 4) Bonds Retired or Authorized Issued Refunded Outstanding 22,795,000 22,795,000 375,000 22,420,000 42,275,000 42,275,000 600,000 41,675,000 65,965,000 65,965,000 4,925,000 61,040,000 $ 86,215,000 $ 86,215,000 $ 9,860,000 $ 76,355,000 EXHIBIT K-3 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE COVERAGE - REVENUE BONDS SEPTEMBER 30, 1999 Water and Sewer Revenue Bonds: Net income (Exhibit G-2) $2,712,800 Add: Depreciation and amortization $ 3,079,592 Loss on sale/abandonment of fixed assets 44,499 Interest expense and paying agent fees 2,959,827 Operating transfers out 702,762 6,786,680 Subtract: West Texas Utilities water revenues (533,311) Net earnings for determining debt service coverage $ 8,966,169 Priority Subordinate Lien Bonds Lien Bonds Net earnings for determining debt service coverage $ 8,966,169 Principal and interest requirements to maturity $25,453,804 $65,122,998 Number of years remaining to pay bonds 19 19 Average annual principal and interest requirement 1,339,674 3,427,526 Minimum bond covenant debt service coverage 1.25 1.10 Minimum debt service coverage requirement $ 1,674,592 $ 3,770,279 5,444,871 Excess over debt service coverage requirements $ 3,521,298 89 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, 1999 AND 1998 1999 1998 General Fixed Assets: Land and betterments $ 13,739,868 $ 14,223,568 Buildings and improvements 13,183,173 18,209,983 Machinery and equipment 6,696,455 8,619,542 Furniture and fixtures 182,103 541,278 Motor vehicles and equipment 31,485 45,924 Construction in progress 223,732 2,590 Total general fixed assets 34,056,816 41,642,885 Joint Venture Assets: Investment in joint venture 11,823,734 11,761,341 Total $ 45,880,550 $ 53,404,226 Investment in General Fixed Assets: From general obligation bonds $ 2,459,962 $ 2,459,962 From local revenues and contributions 12,488,671 10,744,063 From federal government contributions 2,854,104 2,881,501 From unidentified sources 16,254,079 25,557,359 Total investment in general fixed assets 34,056,816 41,642,885 Investment in Joint Venture Assets: From local revenues and contributions 11,823,734 11,761,341 Total $ 45,880,550 $ 53,404,226 90 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, 1999 Buildings Machinery Land and and and Betterments Improvements Equipment General fixed assets and joint venture assets, October 1, 1998 $ 14,223,568 $ 18,209,983 $ 8,619,542 Additions: Expenditures from local revenues and contributions 16,209 - 515,769 Deductions: Assets sold, traded, retired or transferred 499,909 5,026,810 2,438,856 General fixed assets and joint venture assets, September 30, 1999 $ 13,739,868 $ 13,183,173 $ 6,696,455 91 EXHIBIT K-5 Motor Furniture Vehicles Investment and and Construction in Joint Fixtures Equipment in Progress Venture Totals $ 541,278 $ 45,924 $ 2,590 $ 11,761,341 $ 53,404,226 - 221,142 62,393 815,513 359,175 14,439 - - 8,339,189 $ 182,103 $ 31,485 $ 223,732 $ 11,823,734 $ 45,880,550 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, 1999 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 69,530 Personnel/Risk Management - - 85,336 Martin Luther King Center - 349,839 6,307 Library 477,942 4,148,304 545,431 General Public Information - - 154,020 Duplicating Services - _ 15,683 Building Maintenance - - 24,853 Nondepartmental 168,483 646,369 90,877 Municipal Court 230,000 313,818 148,559 Legal - - 2,254 City Clerk - - 6,700 Total administrative services 1,939,274 5,798,999 1,152,451 Police 1,095,114 1,368,090 2,648,880 Fire 252,461 1,668,514 235,867 Parks and recreation: Recreation 655,246 1,900,236 218,552 Park maintenance 8,913,696 1,016,451 53,184 Cemetery 20,200 - 7,772 Total parks and recreation 9,589,142 2,916,687 279,508 Accounting/finance: Accountingffinance - - 13,265 Information Systems - - 1,811,538 Purchasing - - 1,435 Total accounting/finance - - 1,826,238 Community development: Planning - - 32,758 Inspection - - 47,328 Code enforcement - - 7,342 Property management 627,079 293,403 2,547 Lake lot administration - - - Total community development 627,079 293,403 89,975 Public works: Engineering 97,020 18,837 100,839 Street maintenance 28,547 86,373 20,692 Total public works 125,567 105,210 121,531 Health: Administration 34,820 1,000,102 122,397 General City nursing 76,411 1,123 99,239 Environmental health - - 6,088 Lab water pollution - - 33,814 Total health 111,231 1,001,225 261,538 Traffic and transportation - 31,045 80,467 Investment in joint venture: Multi-Purpose Events Center - _ - Total general fixed assets and joint venture assets $ 13,739,868 $ 13,183,173 $ 6,696,455 92 EXHIBIT K-6 Motor Furniture Vehicles Investment and and Construction in Joint Fixtures Equipment in Progress Venture Totals $ 5,218 $ - $ - $ - $ 11,916 18,473 - - - 1,487,724 3,425 - - - 88,761 12,486 - - - 368,632 90,578 - 16,175 - 5,278,430 - - - - 154,020 8,821 - - - 24,504 - - - - 24,853 - 31,485 - i 937,214 4043 - - 696,420 - - 2,254 - - - - 6,700 143,044 31,485 16,175 - 9,081,428 I 11,788 - - - 5,123,872 1,755 - 207,557 - 2,366,154 12,818 - - - 2,786,852 - - - - 9,983,331 - - - - 27,972 12,818 - - - 12,798,155 - - - - 13,265 - - - - 1,811,538 - - - - 1,435 - - - - 1,826,238 1,025 - - - 33,783 - - - - 47,328 - - - - 7,342 - - - - 923,029 1,025 - - - 1,011,482 3,355 - - - 220,051 1,393 - - - 137,005 4,748 - - - 357,056 - - - - 1,157,319 5,447 - - - 182,220 - - - - 6,088 - - - - 33,814 5,447 - - - 1,379,441 1,478 - - - 112,990 - - - 11,823,734 11,823,734 $ 182,103 $ 31,485 $ 223,732 $ 11,823,734 $ 45,880,550 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, 1999 Beginning Ending Balance Balance 10/1/98 Additions Deletions Adjustments 9/30/99 Administrative services: Mayor and City Council $ 13,404 $ - $ 3,013 $ 1,525 $ 11,916 City Manager 1,630,143 - 78,112 (64,307) 1,487,724 PersonnelRisk Management 505,025 - 53,284 (362,980) 88,761 Martin Luther King Center 377,742 - 9,110 - 368,632 Library 5,086,867 26,150 119,388 284,801 5,278,430 General Public Information 151,329 - 8,696 11,387 154,020 Duplicating Services 65,598 9,203 50,297 - 24,504 Building Maintenance 59,100 1,025 20,817 (14,455) 24,853 Nondepartmental 7,117,501 - 4,981,956 (1,198,331) 937,214 Municipal Court 613,888 121,834 39,302 - 696,420 Legal 15,655 - 13,401 - 2,254 City Clerk 26,849 - 20,149 - 6,700 Total administrative services 15,663,101 158,212 5,397,525 (1,342,360) 9,081,428 Police 5,260,892 228,800 800,070 434,250 5,123,872 Fire 2,513,721 213,237 285,727 (75,077) 2,366,154 Parks and recreation: Recreation 3,022,698 5,740 242,038 452 2,786,852 Park maintenance 10,039,553 - 46,920 (9,302) 9,983,331 Cemetery 32,637 - 4,665 - 27,972 Goff 148,302 - 125,906 (22,396) - Total parks and recreation 13,243,190 5,740 419,529 (31,246) 12,798,155 Accounting/finance: Accounting/finance 10,725 7,990 5,580 130 13,265 Information Systems 2,490,604 41,306 712,210 (8,162) 1,811,538 Purchasing 7,938 1,435 (7,938) 1,435 Total accounting/finance 2,509,267 50,731 717,790 (15,970) 1,826,238 Community development: Planning 107,151 8,433 81,801 - 33,783 Inspection 64,801 - 21,029 3,556 47,328 Code enforcement 18,944 - (11,602) 7,342 Property management - 16,208 112 906,933 923,029 Lake lot administration 2,128 - 2,128 - - Total community development 193,024 24,641 105,070 898,887 1,011,482 Public works: Engineering 329,490 - 112,606 3,167 220,051 Street Maintenance 258,129 - 86,413 (34,711) 137,005 Total public works 587,619 - 199,019 (31,544) 357,056 Health: Administration 1,245,547 35,948 124,176 - 1,157,319 General city nursing 197,354 20,256 38,996 3,606 182,220 School nurse program 4,441 - 4,441 - - Environmental health 29,259 - 14,379 (8,792) 6,088 Lab water pollution 16,726 14,550 6,254 8,792 33,814 Total health 1,493,327 70,754 188,246 3,606 1,379,441 Traffic and transportation 178,744 1,005 32,209 (34,550) 112,990 Total general fixed assets 41,642,885 753,120 8,145,185 (194,004) 34,056,816 Investment in joint venture: Multi-Purpose Events Center 11,761,341 62,393 - - 11,823,734 Total general fixed assets and joint venture assets $ 53,404,226 $ 815,513 $ 8,145,185 $ (194,004) $ 45,880,550 93 1 EXHIBIT K-8 CITY OF WICHITA FALLS, TEXAS GOLF FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1999 Balance Balance 10/1/98 Additions Deletions 9/30/99 Plant and Equipment: Land and betterments $ - $ 4,935 $ - $ 4,935 Buildings and improvements - 10,067 - 10,067 Machinery and equipment 13,489 26,955 - 40,444 Furniture and fixtures 3,175 - - 3,175 Total plant and equipment 16,664 41,957 - 58,621 Accumulated Depreciation: Land and betterments $ - $ 658 $ - $ 658 Buildings, systems and improvements - 1,664 - 1,664 Machinery and equipment 1,734 4,596 - 6,330 Furniture and fixtures 476 318 - 794 Total accumulated depreciation 2,210 7,236 - 9,446 Net plant and equipment $ 14,454 $ 34,721 $ - $ 49,175 94 EXHIBIT K-9 CITY OF WICHITA FALLS, TEXAS AIRPORT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1999 Balance Balance 10/1/98 Additions Deletions 9/30/99 Plant and Equipment: Land and betterments $1,474,910 $ - $ 13,087 $1,461,823 Buildings and improvements 1,476,029 - 23,827 1,452,202 Machinery and equipment 28,553 - 12,270 16,283 Furniture and fixtures 14,327 - 10,832 3,495 Total plant and equipment 2,993,819 - 60,016 2,933,803 Accumulated Depreciation: Land and betterments 1,103,815 58,268 11,298 1,150,785 Buildings and improvements 747,352 30,188 23,828 753,712 Machinery and equipment 19,162 1,352 11,480 9,034 Furniture and fixtures 12,178 188 10,562 1,804 Total accumulated depreciation 1,882,507 89,996 57,168 1,915,335 Net plant and equipment $1,111,312 $ (89,996) $ 2,848 $1,018,468 95 EXHIBIT K-10 CITY OF WICHITA FALLS, TEXAS TRANSIT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1999 Balance Balance 10/1/98 Additions Deletions 9/30/99 Plant and Equipment: Land and betterments $ 61,925 $ - $ - $ 61,925 Buildings and improvements 626,868 - - 626,868 Machinery and equipment 78,137 - 60,558 17,579 Furniture and fixtures 6,128 - 4,976 1,152 Total plant and equipment 773,058 - 65,534 707,524 Accumulated Depreciation: Buildings and improvements 116,575 7,972 - 124,547 Machinery and equipment 75,558 516 58,495 17,579 Furniture and fixtures 5,280 75 4,203 1,152 Total accumulated depreciation 197,413 8,563 62,698 143,278 Net plant and equipment $ 575,645 $ (8,563) $ 2,836 $ 564,246 96 EXHIBIT K-11 CITY OF WICHITA FALLS, TEXAS SANITATION FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1999 Balance Balance 10/1/98 Additions Deletions 9/30/99 Plant and Equipment: Land and betterments $ 707,215 $ - $ 1,406 $ 705,809 Buildings and improvements 2,371,012 - 630 2,370,382 Machinery and equipment 166,230 9,879 78,042 98,067 Furniture and fixtures 9,807 - 9,807 - Total plant and equipment 3,254,264 9,879 89,885 3,174,258 Accumulated Depreciation: Land and betterments 30,229 1,628 - 31,857 Buildings and improvements 775,651 49,990 252 825,389 Machinery and equipment 105,410 9,394 81,123 33,681 Furniture and fixtures 5,475 13 3,396 2,092 Total accumulated depreciation 916,765 61,025 84,771 893,019 Net plant and equipment $2,337,499 $ (51,146) $ 5,114 $2,281,239 97 EXHIBIT K-12 CITY OF WICHITA FALLS, TEXAS WATER AND SEWER FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1999 Balance Balance 10/1/98 Additions Deletions 9/30/99 Plant and Equipment: Land and betterments $22,959,432 $ 91,988 $ 766 $ 23,050,654 Buildings, systems and improvements 120,944,033 557,032 49,708 121,451,357 Machinery and equipment 3,187,067 148,238 146,244 3,189,061 Furniture and fixtures 18,092 590 17,518 1,164 Motor vehicles 3,670 - 2,435 1,235 Construction in progress 187,462 3,127,146 - 3,314,608 Total plant and equipment 147,299,756 3,924,994 216,671 151,008,079 Accumulated Depreciation: Land and betterments 6,655,875 243,645 384 6,899,136 Buildings, systems and improvements 43,906,411 2,624,949 31,907 46,499,453 Machinery and equipment 2,232,957 96,362 120,925 2,208,394 Furniture and fixtures 17,043 90 16,522 611 Motor vehicles 3,670 - 2,435 1,235 Total accumulated depreciation 52,815,956 2,965,046 172,173 55,608,829 Net plant and equipment $94,483,800 $ 959,948 $ 44,498 $ 95,399,250 98 EXHIBIT K-13 CITY OF WICHITA FALLS, TEXAS FLEET MAINTENANCE FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1999 Balance Balance 10/1/98 Additions Deletions 9/30/99 Plant and Eauioment: Land and betterments $ 433,658 $ - $ - $ 433,658 Buildings and improvements 4,010,098 - - 4,010,098 Furniture and equipment 14,178 - 7,820 6,358 Motor vehicles and equipment 25,844,415 3,268,497 1,674,034 27,438,878 Construction in progress 2,636 4,070 - 6,706 Total plant and equipment 30,304,985 3,272,567 1,681,854 31,895,698 Accumulated Depreciation: Buildings and improvements 1,025,577 65,137 - 1,090,714 Furniture and equipment 12,732 212 7,568 5,376 Motor vehicles and equipment 16,254,306 2,253,039 1,627,448 16,879,897 Total accumulated depreciation 17,292,615 2,318,388 1,635,016 17,975,987 Net plant and equipment $ 13,012,370 $ 954,179 $ 46,838 $ 13,919,711 99 STATISTICAL SECTION 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 1989-1990 $ 4,6F.5,580 $ 8,359,078 $ 5,360,935 $ 2,388,480 $ 428,310 $ 326,867 1990-1991 5,037,109 8,552,989 5,393,852 2,433,579 417,460 269,972 1991-1992 4,502,220 8,970,402 5,558,991 2,4F5,542 462,729 229,485 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 1994-1995 5,079,725 10,420,291 6,249,987 2,458,983 257,479 399,234 1995-1996 6,764,670 11,067,074 6,752,959 2,890,848 282,522 501,149 1996-1997 10,030,518 11,635,291 6,979,178 2,689,630 283,958 549,654 1997-1998 * 5,675,204 11,445,357 7,567,904 2,947,658 1,141,181 990,993 1998-1999 6,315,733 12,010,858 7,881,632 2,896,955 1,300,773 1,048,202 * 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. 100 EXHIBIT L-1 Debt Service Interest Public Traffic and Capital Principal and Paying Works Health Transportation Outlay Retirement Agent Fees Totals $ 4,224,499 $ 1,933,354 $ 1,197,787 $ - $ - $ - $ 28,874,890 4,965,920 1,955,763 1,181,922 - - - 30,208,566 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 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 1989-1990 $23,736,091 $ 1,111,868 $ 562,626 $ 900,404 1990-1991 23,601,388 1,068,713 554,972 781,111 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 * 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. 101 EXHIBIT L-2 Intergovernmental Miscellaneous Revenue Contributions Revenue Totals $ 779,466 $ - $ 1,453,043 $28,543,498 1,225,504 - 1,255,215 28,486,903 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 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 1989-1990 $14,896,248 $14,515,449 97.44% $ 431,755 1990-1991 14,605,841 14,242,059 97.51% 332,467 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 14,328,850 13,952,221 97.37% 388,755 102 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 $14,947,204 100.34% $2,360,597 15.85% 14,574,526 99.79% 2,038,538 13.96% 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% 14,340,976 100.08% 1,588,798 11.09% 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 1989-1990 $1,789,161,491 $1,789,161,491 $509,996,744 $ 509,996,744 1990-1991 1,764,512,712 1,764,512,712 489,822,988 489,822,988 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 2,371,901,137 2,371,901,137 595,575,331 595,575,331 103 EXHIBIT L-4 Ratio of Total Total Assessed to Assessed Estimated Total Estimated Value Actual Value Actual Value $2,299,158,235 $2,299,158,235 100.00% 2,254,335,700 2,254,335,700 100.00% 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% 2,967,476,468 2,967,476,468 100.00% 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 1989-1990 $ 0.65 $ 0.28 $ 0.97 $ 0.84 1990-1991 0.65 0.29 0.97 0.98 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 Tax Levies 1989-1990 $14,896,248 $ 9,426,139 $4,512,229 $ 776,012 1990-1991 14,605,841 9,461,163 4,722,118 886,306 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 14,328,850 14,625,183 7,104,951 1,448,831 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. 104 EXHIBIT L-5 County Iowa Park Wichita Falls Education C.I.S.D. (3) I.S.D. (4) District (5) Totals $ - $ 0.92 $ - $ 3.66 - 1.00 - 3.89 - 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 $ - $20,682,300 $ - $50,292,928 - 22,299,411 - 51,974,839 - 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 - 80,457,082 EXHIBIT L-6 CITY OF WICHITA FALLS, TEXAS TEN LARGEST TAXPAYERS (UNAUDITED) SEPTEMBER 30, 1999 Percentage January 1, 1999 of Total Assessed Assessed Taxpayer Type of Business Valuation Valuation Southwestern Bell Telephone Utility $ 44,784,467 1.51% JMB Group Trust III Shopping Center 43,020,317 1.45% TU Utilities Electric Utility 35,207,419 1.19% Lowe's Home Improvement Center Retail Store 13,101,679 0.44% ABB Control, Inc. Manufacturing 12,212,365 0.41% Vista Cablevision Cable Television 11,576,675 0.39% Panhandle Manufacturing Manufacturing 11,081,844 0.37% Wal-Mart Retail Store 11,024,567 0.37% De Auville Partnership Retail Store 10,941,923 0.37% Wichita Falls Clinic Medical Center 10,150,135 0.34% Totals $ 203,101,391 6.84% 105 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 1989-1990 $ 438,376 $ 8,155 1.86% I1990-1991 362,985 8,112 2.23% 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 * - - - I *- The City wrote off the balance of the Special Assessments due the City during the year ended September 30, 1999. 106 EXHIBIT L-8 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED) SEPTEMBER 30, 1999 Total assessed property value per 1998 tax roll $2,967,476,468 Maximum tax rate * $ 2.25/$100 Current tax rate for 1998 tax year .512838/$100 Maximum tax rate in excess of 1998 tax rate 1.737162/$100 Total legal debt margin $ 51,549,874 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 1998 tax rate is $.512838 per$100 assessed valuation. * Maximum tax levy established by City Charter 107 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 Assessed General Service Year Population Value Bonded Debt Funds 1989-1990 96,259 $2,299,158,235 $20,325,000 $ 694,935 1990-1991 96,500 2,254,335,700 19,615,000 581,545 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 2,967,476,468 15,315,000 1,578,437 108 EXHIBIT L-9 Ratio of Net General Bonded Debt Net General Net General To Assessed Bonded Debt Bonded Debt Value Per Capita $19,630,065 0.85% $ 204 19,033,455 0.84% 197 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 0.46% 130 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 General Debt Service Fiscal Total Debt Governmental to General Year Principal Interest Service Expenditures Expenditures 1989-1990 $ 670,000 $ 1,615,815 $ 2,285,815 28 874 890 0$ 7.92/o 1990-1991 710,000 1,575,615 2,285,615 30,208,566 7.57% 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 0 1 334 768 2 524 6 7 8 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% 109 EXHIBIT L-11 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF DIRECT AND OVERLAPPING GENERAL BONDED DEBT (UNAUDITED) SEPTEMBER 30, 1999 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 $ 15,315,000 100% $ 15,315,000 Overlapping: Wichita County 7,510,000 100% 7,510,000 Burkbumett Independent School District 18,696,176 25% 4,674,044 City View Independent School District 10,469,042 90% 9,422,138 Iowa Park Consolidated Independent School District 7,057,490 2% 141,150 Wichita Falls Independent School District 36,264,041 99% 35,901,401 Total direct and overlapping bonded debt $ 95,311,749 $ 72,963,732 Sources: (1) Listed taxing jurisdictions (2) City of Wichita Falls Planning Department 110 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 1989-1990 $13,841,627 $ 8,674,495 $ 5,167,132 1990-1991 14,151,380 9,323,434 4,827,946 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 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). 111 EXHIBIT L-12 Debt Service Requirement Principal Interest Total Coverage $ 640,000 $1,814,748 $2,454,748 2.10 680,000 1,773,788 2,453,788 1.97 725,000 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 EXHIBIT L-13 CITY OF WICHITA FALLS, TEXAS DEMOGRAPHIC STATISTICS - LAST TEN FISCAL YEARS (UNAUDITED) Median Fiscal Estimated Household Education School Unemployment Year Population (1) Income (2) Level (3) Enrollment (3) Rate (4) 1989-1990 96,259 $ 20,015 13.1 14,867 6.6% 1990-1991 96,500 20,814 13.1 15,135 6.4% 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% Sources: (1) City of Wichita Falls Planning Department for all years, except 1989-1990 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 112 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 (3) 1989-1990 $2,299,158,235 $59,603,631 * 1990-1991 2,254,335,700 36,283,910 1991-1992 2,209,594,077 49,894,023 1992-1993 2,217,963,473 50,774,737 * 1993-1994 2,259,585,776 71,208,827 * 1994-1995 2,353,242,385 73,692,291 * 1995-1996 2,589,218,286 92,604,277 * 1996-1997 2,707,854,487 89,861,493 * 1997-1998 2,827,444,408 80,401,597 * 1998-1999 3,026,825,997 102,641,877 * Sources: (1) City of Wichita Falls Accounting/Finance Department (2) City of Wichita Falls Planning Department (3) Wichita Falls Times/Record News * Local branches of Bank of America and Bank One 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. 113 EXHIBIT L-15 CITY OF WICHITA FALLS, TEXAS MISCELLANEOUS STATISTICAL DATA(UNAUDITED) SEPTEMBER 30, 1999 Date of incorporation 1889 Form of government Council - Manager Area 72 square miles Miles of streets 585 Number of street lights 7,026 Fire protection: Number of stations 9 Number of firemen and officers 150 Police protection: Number of stations 1 Number of police officers 179 Municipal water department: Number of consumers- active 33,446 Average daily production 27,391,000 gallons treated water Miles of water mains 708 Sewers: Number of customers- active 30,341 Miles of sanitary sewers 499 Miles of storm sewers (enclosed) approximately 40 Building permits issued: Number issued 7,172 Amount issued $102,641,877 Recreation and culture: Number of parks 40 with 1,100 acres Number of golf courses 4 Number of libraries 1 Number of volumes (books) 127,460 Employees- full-time 1,080 114 EXHIBIT L-16 (Page 1 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) SEPTEMBER 30, 1999 Insurance Code A Policy: Building and Contents Company: Williams-Dwyer Co. Policy Period: October 1, 1998 to October 1, 1999 Perils: Fire, Extended Coverage, Vandalism and Malicious Mischief, including Difference in Condition, Extra Expense, Valuable Papers, EDP, Demolition/CC Coverages: $64,842,733 Building and Contents $100,000 Extra Expense Deductible: $100,000 Coinsurance: Agreed Value, Replacement Cost Premium: $26,001 B Policy: Boiler and Machinery Company: Williams-Dwyer Co. Policy Period: October 1, 1998 to October 1, 1999 Perils: Comprehensive Blanket Coverage: $5,000,000 Per Occurrence Deductible: $2,500 Coinsurance: N/A Premium: $4,618 C Policy: Electronic Data Processing Equipment Company: Williams-Dwyer Co. Policy Period: October 1, 1998 to October 1, 1999 Perils: All Risks Coverage: $1,233,306 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, 1998 to October 1, 1999 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: $20,449 115 EXHIBIT L-16 (Page 2 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.) SEPTEMBER 30, 1999 Insurance Code E Policy: Airport Liability Company: Sedgwick James of Texas, Inc. Policy Period: October 1, 1998 to October 1, 1999 Perils: Owner's, Landlord, and Tenants Liability Coverage: $1,000,000 CSL Deductible: $1,000 Coinsurance: N/A Premium: $2,816 F Policy: Public Official Bond Company: Fidelity & Deposit Company Bond No.: FD 09688496 Bond Period: June 27, 1999 to June 27, 2000 Insured: City Manager- Jim Berzina Coverage: $25,000 Premium: $100 G Policy: Public Official Bond Company: Fidelity & Deposit Company Bond No.: FD 30237391 Bond Period: August 1, 1999 to August 1, 2000 Insured: Purchasing Agent - Margaret Elizabeth (Peggy) Gahagan Coverage: $2,500 Premium: $100 H Policy: Blanket Employees' Dishonesty- Theft, Disappearance Coverage Company: Fidelity & Deposit Company Bond No. FD 02897925 Bond Period: January 15, 1999 to January 15, 2000 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 Policy: Public Official Bond Company: Fidelity & Deposit Company Bond No.: FD 30523655 Bond Period: October 1, 1998 to October 1, 1999 Insured: City Clerk - Lydia Torres Coverage: $25,000 Premium: $100 116 EXHIBIT L-16 (Page 3 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.) SEPTEMBER 30, 1999 IInsurance Code J Policy: Public Official Bond Company: Aetna Insurance Company Bond No.: S 10084654 Bond Period: August 6, 1999 to August 6, 2000 Insured: Director of Public Works - George Bonnett Coverage: $2,500 Premium: $50 K Policy: Public Official Bond Company: Aetna Insurance Company Bond No.: S 100841241 Bond Period: August 24, 1999 to August 24, 2000 Insured: Municipal Court Administrator- Judith Elaine Bourgoin Coverage: $2,500 Premium: $50 L Policy: Public Official Bond Company: Aetna Insurance Company Bond No.: S 18072205 Bond Period: March 5, 1999 to March 5, 2000 Insured: Director of Finance - Jim Dockery Coverage: $25,000 Premium: $125 M Policy: Public Official Bond Company: Aetna Insurance Company Bond No.: 71 S 100648903 Bond Period: May 21, 1998 to May 21, 2000 Insured: Municipal Court Judge - Larry Gillen Coverage: $2,500 Premium: $100 N Policy: Health Insurance Company: U.S. Benefits Policy No.: City of Wichita Falls Employee Benefits Trust Policy Period: December 1, 1998 through November 30, 1999 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 or$10,000 yearly, then insurance company pays 100% of eligible expenses. Premium: . $90,000 117 EXHIBIT L-16 (Page 4 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.) SEPTEMBER 30, 1999 Insurance Code 0 Policy: Dental Insurance Company: U.S. Benefits Policy No.: City of Wichita Falls Employee Benefits Trust Policy Period: December 1, 1998 through November 30, 1999 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) P Policy: Life Insurance Company: Atena Life and Casualty Policy No.: GT-447782 (Group#) Policy Period: October 1, 1998 through September 30, 1999 Perils: Death and Dismemberment Benefits Coverage: Varies from $3,000; $5,000; $7,500; $10,000; $12,000; $14,000; $15,000; Double Indemnity for Accidental Death. Dismemberment Benefits. Deductible: N/A Premium: Annual Estimate $45,000 118 GRAPHICS GFOA ITEMS CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING PROGRAM Participant Application (Please type or print) Section 1: Government Information: Three copies of this completed application, three copies of the government unit's comprehensive annual financial repon (CAFR) and the appropriate fee should be mailed(postmarked)to GFOA within six months of the fiscal year end. In addition. if the CAFR was submitted to the program in the immediate prior year. please include three copies of 1) the government unit's responses to the comments and suggestions. 2) the preprinted responses to questions 4-6 of this application. and 3)any other correspondence that may assist the program with the current year's review. The CAFR. this application, responses to comments and suggestions and any other correspondence will be submitted to selected GFOA Special Review Committee (SRC) members for evaluation. The official requesting the review will be advised of the decision upon completion of the review process. 1. Name of Unit CA''4''x o-E W; t'R FA-I Ii, Texa-5 (as kiappears on the report cover and will appear on the plaque) 2. Fiscal Year Ended (month. day. year) 5tpt Am izt . 30,19 1 If the government previously participated in the program and received the preprinted information form with this application. please leave questions 4. 5 and 6 blank and update the information on the preprinted form. 3. Has the government unit previously participated in the Certificate of Achievement Program? Yes $] No ❑ If yes. answer questions 3a c 3b: / 3a. What was the most recent year? 913°I1 3b. What was the six-digit report number which appeared in the upper left-hand corner of the government's "Summary of Grading?" QS 19Z6 4. If the government unit is awarded a Certificate of Achievement for Excellence in Financial Reporting. the Award of Financial Reporting Achievement (AFRA) will be prepared for the individual or department noted below as primaril responsible for the unit's success in earning the certificate. Individual's or Department's Name: SI►'vI Dockte.g.N Individual's Title: DiRecAtort. 04 f n AMA.- 5. To whom (mayor, board chairman. etc.) would the government prefer that GFOA mail the formal announcement of the awarding of Certificate of Achievement, the AFRA. press release, information regarding presentation by a GFOA State Representative and the plaque. Name: 7 i evt Doc 4 z .y Title: Diru.etor=. of 'Fi"nit,vice_ Street Address (required): I300 ra &,'cvntti S}ma- P.O. Box(if applicable): P.O. 6ox City: Inl is nn'fA 1115 State: '(-sexiv Zip Code: 7(,3e I For GFOA Office Use Only: Date: Check#: Amount: t.'pdated:\larch_7. 1999 Page 1 off, Section I: Government information (Continued): 6. Official Requesting Review (receives notification of results. detailed technical comments and suggestions for improvement). Name: Tr'wt Dc . .e2y Title: D1.tecAori of 1F..vim,'ex_ Street Address (required): 1000 5.c,.,c.,.tth Shte P.O. Box (if applicable): P.O. Box 1`+31 E-Mail (Optional) Croy_ FA It 5 State: Texlt> Zip Code: -7630I Phone: (`l`to) - 61- 1`1b1— Fax: (440) '761--T�tio 7. For cities. townships. villages and counties. please provide your population figure. For school districts. please provide your total student enrollment figure. 000 Section i1: indenendent .Auditor's Information (who signed the audit renort): Agency or Firm Name: , Wes+, Ikv(F oie5 ` Co., P-e,. Contact name(optional): M icAnqeI 1), gdp; 1 , CP•A. Phone: (5'1-0) 713-14-11 Address: p.o, (3o,- 1-Iaoo City: kJ ' FraII State: Te>CA 9 ZipCode: 76 301 --1000 Section iiI: Fee Calculation: Add the total revenues and additions from the following: • Combined Statement of Revenues. Expenditures and Changes in Fund Balances-All Governmental S SG,40`f,7b Fund Types. Similar Trust Funds and Discretely Presented Component Units (exclude other financing sources) • Combined Statement of Revenues. Expenses and Changes in Retained Earnings (or Equity)/Fund S `43,2rt,3ty Balances-All Proprietar- Fund Types. Nonexpendable Trust Funds and Discretely Presented Component Units(operating revenues only) • Statement of Changes in Plan Net Assets-Pension and Investment Trust Funds (total additions) S • If applicable, revenues reported for colleges and universities using the AICPA model. discretely S — presented component units. trust funds and/or not-for-profit organizations reported on a separate operating statement(s) or statements) of activity Total revenues and additions S 99,6160 08-1 If you have not already paid for this review, please include a check payable to the GFOA with this application form. Use the following schedule to determine the appropriate fee based on Total revenues and additions calculated above. -. government may join GFOA and qualify for member rates by submitting a membership application and the appropriate membership fee. If this procedure is followed. please indicate that the government is a member in the question below. Total Revenues GFOA Member Nonmember Under 51 million $2.75 S�SU S 1-10 million S350 $7UU 1t)-�t2 mullions {) S50-10U million (_S-I)30. S960 $lUG-250 >illion $5_�(1 $I_I(?U S250-500 million S690 S 1.380 $5O(3 1 0 tmtllion 7 S 750 million SI billion S1.930 Over S i bilhot> S1 (i IS S2 OW GFOA ,Member'' Yes No ❑ If yes. please provide your membership number l.pdated:\last_7. 1999 Pave 2 of 6 Section IV: Fund Information: Indicate below how many individual funds of each generic fund type were reported(operations and/or balances)by the primary government and how many discretely presented component units were included at year end. Also indicate the number of funds with legally adopted annual budgets. Number of Funds Number or Discretely of Funds with Presented Legally Adopted Fund Type Component Units Annual Budgets Primary Government: General I $ Special Revenue 5 5 Debt Service l t Capital Projects Enterprise 5 6 Internal Service Z Trust and Agency: Expendable Trust I — Nonexpendable Trust Pension Trust — Investment Trust —Agency '2 — College and Universities Discretely Presented Component Units: Predominantly Governmental 3 N/A Predominantly Proprietary — N/A College and Universities -- N/A Other(e.g..nongovernmental entities following the commercial or not- for-profit model) _ N/A Section V: Pension Information: Indicate below the individual pension plans in which the government unit participates or with which it is otherwise connected (e.g.. contributions made on behalf of employees by another government)and indicate the type of plan(GASB Statement 27. Para. 8. 19 and 39). For the separate report of a Public Employee Retirement System (PERS) list the individual pension plans reported by the PERS. Special Multiple Employer Single- Funding Defined Benefit Plans Employer Situations Cost Defined Defined (GASBS 27. Pension Plan Sharing Agent Benefit Plans Contribution Paragraph 281 a) Texas Muni-c-ipal R..t,'rt.r. 5ysw., X b) W; ;+A Fn 115 Firumr.y 5 Re.E rf X c) ow,,2 2chacw.,....t d) e) f) g) Updated:March 27. 1999 Page 3 of 6 Section VI: Display and Disclosure Questions: Please answer each of the following questions. This information will be provided to SRC members to facilitate their review. The answers will assist the SRC in determining whether the item addressed by the question is properly displayed or disclosed. Appropriate comments and suggestions for improvement will be issued to Your government unit where deficiencies or discrepancies arc noted between the information in the CAFR and the answers to these questions. All Questions are Applicable to Material Items Only. Yes No N/A I. Does the government unit have any debt that is being repaid b% special assessments'? la. If the answer to question I nas yes. is the government unit: A. obligated in some manner for all or a portion of the debt'' B. not obligated in some manner for the debt? 2. Were any reverse repurchase agreements outstanding as of the fiscal year end'? 3. Has the government unit entered into any capital lease agreements during the Year that will be repaid from a governmental fund type? _ �/ . 4. During the year.has the government unit or its component units engaged in any advance refunding(s)of debt that resulted in either a legal or in-substance defeasance of debt or any current refunding(s) of debt? 4a. If the response to question 4 was yes. did an advance or current refunding take place in a govern- mental fund or discretely presented component unit that uses governmental fund accounting? 4b. If the response to question 4 was yes. did an advance or current refunding take place in a proprie- / tars fund or discretely presented component unit that uses proprietary fund accounting'? ✓ 4c. If the response to question 4 was yes. did an advance or current refunding take place in a college and university following the AICPA College Guide Model'? .. Is the government unit included in the reporting entity of another jurisdiction(e.g.. as a department. fiduciary fund. or component unit)? 5a. If the response to question S was yes. is this government unit reported in a fund or funds separate from the funds of the primary government for each generic fund type. or as a discretely / presented component unit. as appropriate. in that government's CAFR? 6.6. If blended component units are included in the financial reporting entity. has the government unit refrained from reporting the general fund of a blended component unit in the general fund of the / • primary government? 7. If separately issued financial statements are not available for an individual discretely presented component unit does the CAFR include information by fund type for that unit'? 8. Is the government a participant in one or more joint ventures? V Sa. If the response to question 8 was yes. are any of these joint ventures reported as component / units of the government unit? �/ 8b. if the response to question 8 was Yes and the response to Sa was no. has the government unit reported its equity interest_ if any. as follows: • Governmental funds: reported only the equity interest represented by financial resources in the fund. with the remaining equity interest reported in the general fixed assets account group? �— • Proprietary funds: eliminated any profit from operating transactions when calculating the participants share of net income and treated that amount as an adjustment to the participants equity interest'? Cpd:tt d:Mar.h:7. 1999 Section V1: Display and Disclosure Ouestions (Continued): Yes No N/A 9. GASB Statement Number 20.Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Lice Proprietary Fund.-Iccounting.provides governments two options for reporting their proprietary fund activities(including component units accounted for using proprietary fund accounting). Under the two options listed below. indicate each proprietary fund activity that has selected to follow that option. • Option 1: Apply all applicable GASB pronouncements and only FASB Statements and Interpre- tations. Accounting Principles Board Opinions and Accounting Research Bulletins issued on or beforeNovember 30. 1989. unless they conflict with or contradict GASB Pronouncements (GASBS 20. Paragraph 6). S.h+c2prus� FLs 1to�cnv►.,Q Salmiico, rInvutg • Option 2: Apply all of the above pronouncements. but also apply all FASB Statements and Inter- pretations issued after November 30. 1989.except for those that conflict with or contra- dict GASB pronouncements(GASBS 20. Paragraph 7). 10. If the government does not demonstrate legal compliance at the legal level of budgetary control within the CAFR. do the notes to the financial statements refer to a separately issued budgetary report that does so? 10a. If the response to question 10 was yes. has the government unit included one copy of that report with its submission to the certificate program? Please note that this question refers to the separately issued report that is necessary to demonstrate legal compliance at the legal level of budgetary control and not the government's annual budget document. 11. Has the government unit violated any finance-related legal or contractual provisions? ✓ 12. Is the government unit engaged in securities lending transactions? ✓ 13. Is the government retaining risk(i.e.,"self-insurance-)? ✓ 13a. If the response to question 13 was yes. please identify the fund(s)used to report this activity: krvv►u.l 5-uw,Kce,. Fv- ( , �Q,,.y�� ;}-Tom,s4-) • 14. Has the reporting entity given or received a capital contribution in connection with a public entity risk pool? \/ 14a. If the response to question 14 was yes. is the return of the contribution probable? ✓ 13. Does the government unit sponser and include as pan of its financial reporting entity a public entity risk pool that provides coverage to other entities in addition to or separate from the units financial reporting entity? 16. Does the government unit pay all or a portion of the cost of postemployment benefits other than pension benefits(OPEB) for employees? 16a. If the response to question 16 was yes. are the OPEB provided through a pension plan? Updated:March Z7. 1999 Page 5 of 6 Section VI: Display and Disclosure Ouestions (Continued): Yes No N/A 17. Has another entity made on-behalf payments for fringe benefits and salaries (e.g..pension con- tributions. health and life insurance premiums. and salary supplements)to a third parry. recipient I for the government unit's employees? 18. Has the government issued debt in its mune for which it is not liable in any manner(i.e.. conduit or no commitment debt)and where the debt is not reported as a liability in the financial statements? / 19. Does the government unit have any construction commitments outstanding at year end? .. 20. Is the government unit a lessor in any noncancelable operlting lease? V 21. Is the government unit a lessee for any noncancelable operating lease? / 22. Did the government unit engage in transactions with any related parties? ✓ 23. Did any significant subsequent events occur after the balance sheet date but before the dote of the auditor's report (e.g.. debt issuances or litigation settlements)? Section VII: .Authorization: With this application form we are officially requesting a Certificate of Achievement for Excellence in Financial Reporting Program review of our CAFR. We agree to comply with the policies and procedures of the program. (Signature of official requesting review) (Date) The following list is provided to help the government unit ensure the completeness of its submission:r ❑ I Did you include three copies of the application? ❑ / Did you include three copies of the CAFR? Did you include three copies of responses to prior year comments (applies only if the CAFR was submitted to the program in the immediate prior year)? ❑ Did you include a check in the amount of the appropriate fee? ❑ If applicable. did you include a copy of the separately issued budget report that demonstrates legal compliance at the legal level of budgetary control (See Section VI. questions 10 and 10a)? 0 If not postmarked within six months of the government unit's fiscal year end. was an extension l' requested and approved? Mail all necessary items to: Government Finance Officers Association 180 North Michigan Avenue—Suite 800 Chicago. IL 60601 Section VIII: Special Review Committee ;1lembershin (Ontionall: For more information regarding Special Review Committee(SRC) membership. please provide the following information and an SRC membership information pack will be mailed to you. Name: Title: E-Mail : Address: City: State: Zip Code Phone: Fax: Updated:\larch:7. 1999 Patio 6 ol.6 Preprinted Part of Application Form Prior Report # 981926 for questions 4 , 5, and 6 FYE : 9 This document has been prepared to expedite the next submission to the Certificate of Achievement program. The data contained herein has been extracted from questions 4-6 of the Certificate application form. If there are any changes please highlight the revisions and submit them with your next application. The appli- cation must still be completed for all questions other than 4-6 . The decision of the Certificate of Achievement Special Review Committee and detailed technical comments and suggestions for improvement will be mailed to you : Mr . Jim Dockery Director of Finance City of Wichita Falls P .O. Box 1431 Wichita Falls, Texas 76301 940/761-7462 If the Certificate is awarded, the Award of Financial Reporting Achievement (AFRA) should be prepared for : Department of Finance City of Wichita Falls The formal announcement of the award, the AFRA, the press release, and information regarding GFOA State Representative presentations , and the plaque will be mailed to : Mr. Jim Dockery Director of Finance City of Wichita Falls 1300 Seventh Street Wichita Falls, Texas 76301 In addition, please submit three (3 ) copies of the following: CAFR Application form Responses to prior year' s comments and the fee for review City of Wichita Falls, Texas Response to GFOA Comments from Their Review of the September 30, 1998 CAFR Comment Response 415 For both retirement plans, the September 30, 1999 CAFR discloses the method used to determine the actuarial value of the assets in Note to the financial statements. 592 For both retirement plans, the September 30, 1999 CAFR discloses the inflation rate, investment rate, the amortization method, and whether the amortization period is open or closed in Note to the financial statements. 610 The schedules reported on pages 50 and 52 in the September 30, 1998 CAFR were not included in the September 30, 1999 CAFR. Additionally, all references to the pension benefit obligation (PBO) in the notes to the financial statements were deleted. 534 The September 30, 1999 CAFR includes a reconciliation of the cash and cash equivalents on the combined and combining statements of cash flows (where applicable) to easily trace the amounts to the combined and combing balance sheets (where applicable). 465 The September 30, 1999 CAFR consistently reports the residual equity transfers in the combined and combining financial statements as well as the notes to the financial statements. 495 The number of Enterprise and Internal Service Funds with legally adopted budgets (as well as all other funds) are consistently reported in the September 30, 1999 CAFR and the GFOA 's Certificate of Achievement for Excellence in Financial Reporting Program's Participant Application. 701 The heading to Note to the financial statements has been changed to "Condensed Financial Information for Discretely Presented Component Units" for the September 30, 1999 CAFR. October 19, 1999 Report Number: 981926 Mr. Jim Dockery Director of Finance City of Wichita Falls 1300 Seventh Street Wichita Falls, Texas 76301 RESULTS 498 WE ARE PLEASED TO NO 11FY YOU THAT THE COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1998 QUALIFIES FOR A CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING. REPORTING IN CONFORMITY WITH GAAP - (NOTES TO THE FINANCIAL STATEMENTS) 415 PAGES 28-31 - FOR BOTH PLAN, DISCLOSE THE METHOD USED TO DETERMINE THE ACTURIAL VALUE OF THE ASSETS. DISCLOSE THE ACTUARIAL COST METHOD AND THE METHOD(S) USED TO DETERMINE THE ACTUARIAL VALUE OF THE ASSETS. (GASBS 27, PARA. 21; GASBS 25, PARA. 40) 592 PAGES 28-31 - FOR BOTH PLANS, COMPLETE THE REQUIREMENTS BELOW (E.G., THE INFLATION RATE, INVESTMENT RETURN, THE AMORTIZATION METHOD, AND WHETHER THE AMORTIZATION PERIOD IS OPEN OR CLOSED). FOR AGENT AND SINGLE-EMPLOYER PENSION PLANS, THE GOVERNMENT SHOULD DISCLOSE THE FOLLOWING ASSUMPTIONS AND METHODS: 1) THE INFLATION RATE, 2) THE INVESTMENT RETURN, 3) THE PROJECTED SALARY INCREASES, 4) THE POSTRETIREMENT BENEFIT INCREASES, 5) THE AMORTIZATION METHOD (I.E., LEVEL DOLLAR OR LEVEL PERCENTAGE OF PROJECTED PAYROLL), 6) THE AMORTIZATION PERIOD AND WHETHER IT IS OPEN OR CLOSED. (GASBS 27, PARA. 21; GASBS 25, PARA. 40) 610 THE SCHEDULES PRESENTED ON PAGES 50 AND 52 ARE NO LONGER REQUIRED. DELETE THE REFERENCES TO THE PENSION BENEFIT OBLIGATION (PBO) IN THE NOTES TO THE FINANCIAL STATEMENTS. THE PBO WAS City of Wichita Falls Page 2 Report Number: 981926 ELIMINATED AS A REQUIRED DISCLOSURE WHEN GASB STATEMENT NO. 5 WAS SUPERSEDED AND IS INCONSISTENT WITH MORE RECENT GASB GUIDANCE. (GASB 27, PARA. 5; IMPL 25, 26, 27, Q. 85, 144) REPORTING IN CONFORMITY WITH GAAP - (ENHANCING UNDERSTANDING OF GAAP THEORY) 534 PAGES 8 AND 3. THE FIGURE REPORTED AS CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR ON THE COMBINED STATEMENT OF CASH FLOWS FOR THE NONEXPENDABLE TRUST FUND(S) SHOULD BE EASILY TRACEABLE TO THE COMBINED BALANCE SHEET. IF NEEDED, A RECONCILIATION SHOULD BE PRESENTED ON THE FACE OF THE COMBINED STATEMENT OF CASH FLOWS. (GASBS 9, PARA. 8; IMPL 9, Q. 75; G-94, PP. 241, 442, 447) COHESIVENESS AND INTERNAL CONSISTENCY 465 PAGES 39 AND 5 - THE RESIDUAL EQUITY TRANSFER-OUT OF $429,076 IN THE GENERAL FUND. DOLLAR AMOUNTS SHOULD BE CONSISTENTLY REPORTED ON THE FACE OF THE FINANCIAL STATEMENTS AND THE NOTES TO THE FINANCIAL STATEMENTS. 495 THE NUMBER OF ENTERPRISE AND INTERNAL SERVICE FUNDS WITH LEGALLY ADOPTED ANNUAL BUDGETS. INCONSISTENCIES SHOULD NOT EXIST BETWEEN THE BUDGETARY INFORMATION ON THE APPLICATION FORM AND THE BUDGETARY DISCLOSURES CONTAINED IN THE CAFR. 701 REFER TO NOTE 22 HEADING ON PAGE 42. CONSIDER REFERENCING "CONDENSED FINANCIAL STATEMENTS FOR DISCRETELY PRESENTED COMPONENT UNITS" RATHER THAN "SEGMENT INFORMATION FOR DISCRETELY PRESENTED COMPONENT UNITS." City of Wichita Falls Page 3 Report Number: 981926 COMMENTS AND SUGGESTIONS FOR IMPROVEMENT 127 WE HOPE THAT YOU WILL INCORPORATE THE ABOVE LISTED COMMENTS AND SUGGESTIONS FOR FINANCIAL REPORTING IMPROVEMENTS INTO THE NEXT CAFR. PROGRAM POLICY REQUIRES THAT WRITTEN RESPONSES TO THE COMMENTS AND SUGGESTIONS FOR IMPROVEMENT BE INCLUDED WITH THE NEXT FISCAL YEAR'S SUBMISSION OR THE CAFR WILL BE DEEMED INELIGIBLE. IF IT IS UNCLEAR AS TO WHAT IS NECESSARY TO IMPLEMENT A COMMENT, OR IF THERE APPEARS TO BE A DISCREPANCY BETWEEN THE COMMENTS AND SUGGESTIONS FOR IMPROVEMENT AND THE DISCLOSURES PRESENTED IN THE CAFR, PLEASE CONTACT OUR OFFICE (312/977-9700) AND REQUEST ASSISTANCE FROM A CERTIFICATE OF ACHIEVEMENT IN-HOUSE REVIEWER. COPIES OF THESE SUGGESTIONS AND THE RELATED RESPONSES WILL BE PROVIDED TO MEMBERS OF THE SPECIAL REVIEW COMMITTEE WHO REVIEW THE NEXT CAFR.