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'..' 1* -. . --...-=:.,-,,,z;vhi.,„--,• `-`01•671-7-44,1•Ar-li.c.„....e.o.__ _______ ,.„,„_,,,it Wich4ita Fall!- TFXAS City of Wichita Falls, Texas COMPREHENSIVE ANNUAL FINANCIAL REPORT for Year hncleci September JO, 1966 ON THE COVER Wichita Falls' multi-diamond softball complex was opened in May of 1988 offering the public four diamonds adjacent to Plum Creek Lake and located between I-44 and Sheppard Access Road. The two-story central building houses a concession stand and rest rooms on the first floor with a large central meeting room flanked by four score-keepers enclosed boxes. The complex was built at a cost of 1. 2 million dollars. Grass warm up areas and picnic facilities separate each playing field with water fountains by each dugout. Nearly 5, 000 League players utilized the fields last season plus 3 , 000 tournament players, and 19 tournaments have been scheduled for the 1989 softball season including three Amateur Softball Association State Tournaments and one Texas Amateur Athletic Federation Tournament, in addition to scheduled League play which numbers over 312 teams. The seating capacity for the complex is 1, 000 with expansion capability to 3 , 000. The Wichita Falls Invitational Fast Pitch Tournament alone brings in 16 teams of 245 players with over 1, 000 spectators. CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1988 PREPARED BY: DEPARTMENT OF FINANCE FRED L. WERNER, C.P.A. DIRECTOR OF FINANCE CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1988 TABLE OF CONTENTS Exhibit Page INTRODUCTORY SECTION Letter of Transmittal i-ix GFOA Certificate of Achievement x Organizational Chart xi List of Principal Officials xii FINANCIAL SECTION Independent Auditor's Report 1-2 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined Balance Sheet - All Fund Types and Account Groups A-1 3-4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds A-2 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General, Special Revenue, and Debt Service Funds A-3 6 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types A-4 7-8 Combined Statement of Changes in Financial Position - All Proprietary Fund Types A-5 9-10 Notes to the Financial Statements 11-42 REQUIRED SUPPLEMENTARY INFORMATION: Defined Contribution Pension Plan - Analysis of Funding Progress - Last Ten Plan Years B-1 43 Defined Contribution Pension Plan - Revenues by Source and Expenses by Type - Last Ten Plan Years B-2 44 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS: General Fund: Comparative Balance Sheet C-1 45 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-2 46-49 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1988 TABLE OF CONTENTS (CONT'D.) Exhibit Page COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS (CONT'D. ) : Special Revenue Funds: Combining Balance Sheet D--1 50 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D--2 51 Revenue Sharing Fund: Comparative Balance Sheet D--3 52 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D--4 53 Civic/Community Promotion Fund: Comparative Balance Sheet D--5 54 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D--6 55 Hotel/Motel Tax Fund: Comparative Balance Sheet D--7 56 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D--8 57 Community Development Block Grant Fund: Comparative Balance Sheet D--9 58 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D-10 59 Special Revenue Fund: Comparative Balance Sheet D-11 60 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D-12 61 Section 8 Housing Fund: Comparative Balance Sheet D-13 62 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D-14 63 Rental Rehabilitation Program Fund: Comparative Balance Sheet D-15 64 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual D-16 65 Debt Service Fund: Comparative Balance Sheet E-1 66 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual E-2 67 Capital Projects Funds: Combining Balance Sheet F-1 68 Combining Statement of Revenues, Expenditures and Changes in Fund Balance F-2 69 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1988 TABLE OF CONTENTS (CONT'D.) Exhibit Page COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS (CONT'D. ) : Enterprise Funds: Combining Balance Sheet G-1 70-71 Combining Statement of Revenues, Expenses and Changes in Retained Earnings G-2 72 Combining Statement of Changes in Financial Position G-3 73-74 Internal Service Fund: Comparative Balance Sheet H-1 75 Statement of Revenues, Expenses and Changes in Retained Earnings H-2 76 Statement of Changes in Financial Position H-3 77 Trust and Agency Funds: Combining Balance Sheet I-1 78 Expendable Trust Funds - Combining Statement of Revenues, Expenditures and Changes in Fund Balance I-2 79 Agency Funds - Combining Statement of Changes in Assets and Liabilities I-3 80-82 Supporting Schedules: Combined Schedule of Bonded Debt and Interest Maturities J--1 83 Combined Schedule of Bonds Payable J--2 84-85 Debt Service Coverage - Revenue Bonds J--3 86 General Fixed Assets - Comparative Schedule of General Fixed Assets - By Sources J--4 87 General Fixed Assets - Schedule of Changes in General Fixed Assets - By Sources J--5 88 General Fixed Assets - Schedule of General Fixed Assets - By Function and Activity J--6 89 General Fixed Assets - Schedule of Changes in General Fixed Assets - By Function and Activity J--7 90-91 Airport Fund - Plant, Equipment and Depreciation J--8 92 Transit Fund - Plant, Equipment and Depreciation J--9 93 Sanitation Fund - Plant, Equipment and Depreciation J-10 94 Water and Sewer Fund - Plant, Equipment and Depreciation J-11 95 Internal Service Fund - Plant, Equipment and Depreciation J-12 96 CITY OF WICHITA FALLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1988 TABLE OF CONTENTS (CONT'D.) Exhibit Page STATISTICAL SECTION (UNAUDITED) General Governmental Expenditures by Function (General Fund Only) - Last Ten Fiscal Years K--1 97 General Revenues by Source (General Fund Only) - Last Ten Fiscal Years K--2 98 Property Tax Levies and Collections - Last Ten Fiscal Years K--3 99 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years K--4 100 Property Tax Rates and Tax Levies - All Overlapping Governments - Last Ten Fiscal Years K--5 101 Ten Largest Taxpayers K--6 102 Special Assessment Collections (Capital Improvement Assessments Fund) - Last Ten Fiscal Years K--7 103 Computation of Legal Debt Margin K--8 104 Ratio of Net General Bonded Debt to Assessed Value and Net General Bonded Debt Per Capita - Last Ten Fiscal Years K--9 105 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years K-10 106 Computation of Direct and Overlapping Debt K-11 107 Revenue Bond Coverage - Water and Sewer Revenue Bonds - Last Ten Fiscal Years K-12 108 Demographic Statistics - Last Ten Fiscal Years K-13 109 Property Value, Building Permits and Bank Deposits - Last Ten Fiscal Years K-14 110 Miscellaneous Statistical Data K-15 111 Schedule of Insurance Coverage K-16 112-115 Graphics: Cash and Short-Term Investments L--1 116 Total Bonds Payable L--2 117 General Obligation Bonds Payable L--3 118 Revenue Bonds Payable L--4 119 Total Fund Equity L--5 120 Analysis of Revenues By Source L--6 121 Analysis of Expenditures By Function L--7 122 INTRODUCTORY SECTION Wichita Falls January 29, 1989 The Honorable Mayor and Members of the City Council James Berzina, City Manager City of Wichita Falls, Texas The Comprehensive Annual Financial Report of the City of Wichita Falls, Texas, for the year ended September 30, 1988 , is submitted herewith. Local governmental accounting principles are primarily promulgated by the Governmental Accounting Standards Board (GASB) . These principles have been adhered to in the preparation of this report. The Notes to the Financial Statements presented with the General Purpose Financial Statements section are an integral part of this comprehensive annual financial report and should be read for a fuller understanding of the statements and information presented within. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data, as presented is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operation of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain understanding of the City' s financial activity have been included. The Comprehensive Annual Financial Report of the City of Wichita Falls, Texas, is reported in three sections; introductory, financial and statistical . The introductory section includes this transmittal letter, the government ' s organizational chart and a list of principal officials. The financial section includes the General Purpose Financial Statements and the combining and individual fund and account group financial statements and schedules, as well as the auditor' s report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. 1300 7th Street P.O. Box 1431 817/761-7611 Wichita Falls, Texas 76307 i This report includes all funds and account groups of the government. The City provides the full range of basic services contemplated by charter on a continuing basis. These basic services include public safety (police, fire and building inspection) , highways and streets, health and welfare services, culture-recreation, public improvements, planning and zoning and general administration services. In addition, the City provides water and sewer services for its citizens. In accordance with NCGA Statement 3 , which addresses the issue of defining the reporting entity with respect to other agencies, institutions, commissions, public authorities, or other governmental organizations for inclusion in the reporting entity' s general purpose financial statements, four organizations were evaluated. They were Employee Benefit Trust Fund, Firemen' s Relief and Retirement Board, Housing Authority of the City of Wichita Falls, and the Wichita County/City Hospital Board. Only the Employee Benefit Trust Fund met the criteria for inclusion in these financial statements. The other three did not meet the criteria of financial interdependency and therefore were not included in this report. These organizations have substantial autonomy, separate governmental entity characteristics and are governed by separate boards. Also, they are not funded by the City. The City is not obligated to finance any deficits they may incur, and the City does not guarantee their indebtedness. ECONOMIC CONDITION AND OUTLOOK The City of Wichita Falls is located in North Central Texas, approximately 130 miles northwest of the Dallas - Fort Worth metropolitan area and 145 miles southwest of Oklahoma City. The City of Wichita Falls is the county seat of Wichita County and was incorporated in 1889 . There are 50 square miles of land in the City' s boundary. Wichita Falls is the largest city within a 100-mile radius and, therefore, a trade center for a 22-county area in southern Oklahoma and north Texas. Retail trade includes building materials, general merchandise, food stores, automotive, clothing, home furnishings, restaurants, drug stores, liquor stores, and miscellaneous retail . Wichita Falls is also a regional medical center primarily serving a 16-county area. Approximately 240 physicians practice in this area, and there are 19 general and specialized clinics in Wichita Falls. The community has a 6. 1% unemployment rate compared to a state rate of 7 . 1% as of September 30, 1988 . MAJOR INITIATIVES For The Year. The City of Wichita Falls has identified several major programs needed to meet citizens desires for services and to safeguard the environment in conformity with applicable federal and state standards. These programs include the improvement and expansion of the Cypress Water Plant, and the creation of a major water line linkage between Cypress Plant and Riley Road to equalize water pressure planes. ii Major Initiatives, Continued. During the year, the City of Wichita Falls completed four-field regional softball complex in May of 1988. This complex will be used for State and Regional softball tournaments. The City also received a Keep Texas Beautiful award in the amount of $100, 000 in June of 1988 . For the Future. On December 8 , 1988, the City Council authorized the City to file an application with the Texas Water Development Board for a low interest revolving fund loan in the amount of $21, 500, 000. The proceeds from this loan will be used for the expansion and renovation of the sewer treatment plant and the installation of a large capacity sewage collection interceptor line. On December 15, 1988 , the City was informed that their application had been approved for $14 , 300, 000, with subsequent funding to be made available upon additional analysis by the Texas Water Development Board. FINANCIAL INFORMATION In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls as deemed appropriate by the City Manager. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizing that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by the City Manager. All internal control evaluations occur within the above framework. The City believes that its internal accounting controls adequately safeguards assets and provide reasonable assurance of proper recording of financial transactions. Budgetary control is maintained at the class level within each division by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders which result in an overrun of class level balances are not released until additional appropriations are made available. Open encumbrances are reported as reservations of fund balance at September 30, 1988 . GOVERNMENTAL FUND TYPES, General Fund. Revenues in the General Fund totaled $27 , 026, 407 in the 1987-88 fiscal year, an increase of 5. 6% from the 1986-87 fiscal year. The increase is primarily due to an increase in the sales tax and ad valorem taxes. General property taxes produced 47 . 08% of general revenues compared to 48 . 61% in 1986- 87 and 45. 17% in 1985-86. iii Governmental Fund Types, Continued. Increase (Decrease) Percent Over Prior Revenue Source Amount of Total Year Taxes $22 , 195,718 82 . 12% $ 697, 000 Charges for service 1, 295, 629 4 .79 130, 962 Licenses and permits 598, 915 2 .22 245, 236 Fines 885, 805 3 . 28 45, 338 Intergovernmental revenue 704 , 187 2 . 61 62 , 238 Miscellaneous revenue 1, 346, 153 4 .98 265, 400 $27 , 026 . 407 100. 00% $1, 446 . 174 Assessed valuation was $2 , 274 , 820, 154 based on 100% of market value. Current tax collections were 96. 49% of the tax levy, up 1. 06% from last year. The ratio of total collections (current and delinquent) to the current tax levy was 99. 84%. Allocation of the property tax levy by purpose for the year ended September 30, 1988, and the preceding two fiscal years was as follows: Purposes 1987-88 1986-87 1985-86 General Government $12 , 186, 667 $12, 116, 281 $11, 337, 416 Debt Service 2 , 322 , 137 2 , 285, 575 2 , 603 , 193 The increase in levels of expenditures for major functions of the City over the preceding year are shown in the following tabulation. Increase (Decrease) Percent Over Prior Function Amount of Total Year Administrative Services $ 4 , 838, 572 16. 27% $ (195, 259) Police 7 , 578, 322 25. 49 335, 635 Fire 5, 096, 563 17 . 14 252 , 477 Parks and Recreation 3 , 192 , 387 10. 73 264 , 041 Accounting/Finance 432, 777 1. 46 24 , 788 Planning 336, 317 1. 14 66, 655 Public Works 5, 200, 849 17 . 49 (32 , 822) Health 1, 836, 848 6. 18 (102 , 402) Traffic and Transportation 1, 217 , 950 4 . 10 (78 , 524) $29 , 730 , 585 100. 00% $534 . 589 iv Governmental Fund Types, Continued. Expenditures from the General Fund totaled $29,730, 585, an increase of 1.83% over the 1986-87 fiscal year. Major changes are seen in the Administrative Services Department due to a decrease in subsidized health premiums and medical service contracts. Expenditures in the Police Department increased because of a Police Academy being held in the early part of the year and additional equipment acquisitions. There has been an increase in the personnel costs of the Fire Department due to additional staffing from a new recruit class. Construction costs for the Parks and Recreation Department have increased due to the completion of a four-field softball complex. The decreased costs in the Health Department are due to the completion of the Women, Infants and Children building extension at the health facilities which was completed during the prior year. 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, 1988, was $. 6378 per $100 which means that the City has a tax margin of $1. 6122 per $100, and could raise up to $36, 674 , 651 additional tax revenue a year from the present assessed valuation of $2 , 275, 820, 154 before the limit is reached. General Fund Balance. The fund balance of the general fund increased by $246, 250 in 1988 which is 2 . 57% over 1987. SPECIAL REVENUE FUNDS. The Civic/Community Promotion Fund is a Special Revenue Fund used to account for revenues from various rents and concessions associated with the Auditorium and the Activity Center. The Hotel/Motel Tax Fund is a Special Revenue Fund used to account for revenues from the City-imposed tax of 7% on rental of hotel/motel rooms within the City with a 6% State tax for a total of 13%. The Revenue Sharing Funds, Community Development Block Grant, Rental Rehabilitation Fund and Section 8 Housing, which are used to subsidize rents and housing payments for lower income families within the City, are also included in Special Revenue Funds. The use of Revenue Sharing Funds and Community Development Funds are enumerated in Note 6. V CAPITAL PROJECTS FUNDS. The Capital Projects Funds are used to account for all resources used for the acquisition of capital facilities except those financed by enterprise funds. At the end of the fiscal year, completed projects are transferred to General Fixed Assets. During the 1987-88 fiscal period, expenditures from the Capital Projects Funds amounted to $1, 291, 175. Capital Projects Funds balances on hand as of September 30, 1988 , were $12 , 036, 402 . The significant uncompleted project in Capital Projects Funds at the present time is: Holliday Creek Flood Control Project CAPITAL IMPROVEMENT ASSESSMENTS. The Capital Improvement Assessment Fund was a new fund for fiscal year ended September 30, 1987 . This fund formerly was called the Special Assessment Fund. The change to Capital Improvement Assessment Fund was made to conform to current financial reporting standards. It is used to account for street and sidewalk paving. PROPRIETARY FUNDS, Water and Sewer. The Water and Sewer operation for the past three years is presented in the following tabulation: Water and Sewer: 1987-88 1986-87 1985-86 Income Available for Debt Service $5, 805, 625 $4 , 230, 749 $4 , 588 , 812 Maximum Annual Debt Service 2 , 453 , 276 2 , 453 , 511 2 , 457 , 972 Maximum coverage (income available for debt service divided by maximum annual debt service) 2 . 36 x 1.72 x 1. 87 x Airport. Operating revenues of the Airport for the year ended September 30, 1988, were $181, 959. This is an increase of 4 .9%. Operating expenses increased 1. 9%. This was due to refurbishing and improving the interior at the airport. Transit. Operating revenues of the Transit system were consistent with the prior year: 87-88 - $145, 453 ; 86-87 - $141, 962 ; a modest increase of 2 . 47%. Operating expenses were: 87-88 $490, 557 ; 86-87 - $473 , 878 ; an increase of 3 . 5%. Sanitation. Sanitation revenues for the year ended September 30, 1988 , were $4, 716, 133 ; in 86-87 they were $4 , 579, 009 ; an increase of 3% from the prior year. Operating expenses decreased . 7% ; from $4 , 292 , 642 in 86-87 to $4 , 263 , 138 in 87-88 . vi INTERNAL SERVICE FUND, Fleet Maintenance Internal Service Fund. The City created an Internal Service Fund for improved maintenance over the vehicle fleet on October 1, 1985. Divisions which use the vehicles and equipment are charged a monthly rental fee for the use of the vehicle. The City of Wichita Falls, Texas created the Reinvestment Zone Number One on March 18 , 1986 under Ordinance 22-86. Subsequent to the aforementioned date, the City of Wichita Falls, Texas contracted with the County of Wichita and the Wichita Falls Independent School District for a 15% reduction in the tax increment which these entities will be contributing to the Tax Increment Fund for Reinvestment _Zone Number One. Both of these contracts were passed and approved by Resolution 199-86 and 200-86 respectively on December 16, 1986. The City of Wichita Falls, Texas will be contributing 100% of the revenue from its tax increment. Wichita County and Wichita Falls Independent School District will be contributing 85% of the revenue from their tax increment. The tax increment base for Reinvestment Zone Number One is as follows: Taxable Taxable Tax Tax Current Captured Increment Base Increment Base Appraised Value 1-1-86 1-1-88 1-1-88 City $65, 062, 190 $57 , 270, 134 $685, 910 Wichita County 65, 062 , 190 57 , 270, 134 685, 910 School 64 , 965, 658 57 , 151, 447 674 , 417 Values for January 1, 1988 are subject to modifications by the Wichita Appraisal District, Appraisal Review Board. The Reinvestment Zone Number One has received a tax increment as of September 30, 1988 in the amount of $5, 224 . 00 . FIDUCIARY FUNDS. Fiduciary Funds are set up for the purpose of accounting for money and property received from non-enterprise fund sources and held by a governmental unit in the capacity of trustee, custodian, or agent for individuals, governmental entities and non- public organizations. Included in the Fiduciary Funds are Social Security, Payroll, Tax Collection, Accounts Payable, Deferred Compensation Funds and the Employee Benefit Trust Fund. vii DEBT ADMINISTRATION. Outstanding general obligation bonds at September 30, 1988, totaled $21, 630, 000 and is considered to be direct tax supported debt. The ratio of net bonded debt to assessed valuation and the amount of bonded debt per capita are useful indicators of the City's debt position to municipal management, citizens and investors. The data for the 1987-88 fiscal year was as follows: Ratio of Debt to Assessed Debt Per Value Capita Net Direct Bonded Debt $21,229, 577 .93% $216 The current ratings are as follows: Moody's Investors Standard & Service Poor's General Obligation Bonds Al AA Water and Sewer Revenue Bonds Al A+ TREASURY MANAGEMENT. Cash which was temporarily idle during the year, including debt retirement funds, operating funds, and bond proceeds, was invested in government securities and repurchase agreements. The total amount of interest earned on these investments amounted to $2 , 945, 785; an increase over the prior year of $177, 004 or 6.4%. RISK MANAGEMENT. During 1988, the City of Wichita Falls continued a risk management program for worker's compensation. Various risk control techniques, including employee accident prevention training, have been utilized during the year to minimize accident-related losses. OTHER INFORMATION INDEPENDENT AUDIT. The City Charter requires an annual audit of the books of account, financial records, and transactions of all administrative departments of the City by Certified Public Accountants, selected by the Mayor and City Council. This requirement has been complied with and Mathis, West, Huffines & Co. , P. C. ' s opinion has been included in this report. The statistical section of this report was not included within the scope of the audit. viii AWARDS. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Wichita Falls, Texas, for its comprehensive annual financial report for the fiscal year ended September 30, 1987 . In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS. Our appreciation is extended to the various elected officials, department heads and employees responsible for the fair presentation of the comprehensive annual report and contributing to the sound financial position of the City of Wichita Falls. The City of Wichita Falls has been blessed with a group of persons who appreciate and respect principles of fiscal restraint and propriety. In particular, we would like to acknowledge the special efforts of the Department of Finance employees who contributed directly to the development of this report. The continuing support of Wichita Falls' elected officials and City Manager, who remain committed to fiscal integrity and financial leadership, is likewise appreciated. Sincerely yours, Fred L. Werner, CPA Director of Finance ix Certificate of Achievement for Excellence in Financial Reporting Presented to City of Wichita Falls, Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1987 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. *.ok°°Ffice e•--- r..... .e_,e=1;.444„,„-, ,.....,, are ILES 4.1.y 1 AND V CAN A% 0 C s PATI yaON k President It, oncio 692#11A Glialree Executive Director x CITY OF WICHITA FALLS ORGANIZATIONAL CHART M TOITA MIS I OI®� I H COM& ff H PAM I 1 =EMS H I 1 I I QTY MANAGER 1 I NATTYI I I Ory O talc 1 NO MATDN MAM1iTANT I OTY NANA!>I I I I I I I 1RM410 AID f11ANQ: AOMIRATIR TIANIGRTATON �M6T0 TiAINNI OeARTiNT OwNGL11 AAL11 DQARTADTT OeARTO1T DPAKIIOff M ""°`T -I 1 I I I lux 1..HI /RODATA I I, .evaiz1 I Ammarnmke H K I I -=--W HI WM= I I COIrDfON I I NAR>aT r -..-1Q�l 1 l O<Yn-NT H ►D 0 I I IA It'l r ILL H NAN,aM►a I M /alIOT r 1 / I YANASf1ifT 1 1 Pellaala 1 I woman. H ,,," , I IPUDDHAiNI 1 I I /ONE /MO AND IoIp ,jnI I Clip OIT KfS/ATOi 7�p at. A O/ANTIONT A♦ARIIOR InVIQO f 1 I wJRRlf101 NVIatio 1 I I RL�ATOI maga= 1 I DIinumNI yLONTATOI 1 IADINi1RATDN I I COMM I I NAp,DIAI= H MI= I CITY OF WICHITA FALLS, TEXAS LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30, 1988 Title Name Mayor Perry Goolsby Mayor Pro-Tem Charles Thomas City Council Member John Hirschi City Council Member Angus Thompson City Council Member Dr. Robert Barenberg City Council Member Ronald Buffum City Council Member Donald Kirkham City Manager James Berzina City Attorney H. P. Hodge Municipal Court Judge Larry Gillen City Clerk Wilma Thomas Assistant City Manager Louise Houseworth Director of Traffic and Transportation Robert Parker Director of Finance Fred L. Werner, C.P.A. Director of Administrative Services Louise Houseworth Director of Planning Roger McKinney Director of Public Health Tom Edmonson Police Chief Curtis Harrelson Fire Chief Ronnie James Director of Parks and Recreation Jack Murphy Director of Public Works and Public Utilities George Bonnett, P.E. xii FINANCIAL SECTION • MATHIS,WEST, HUFFINES&CO., P.C. Capital Center • Indiana at Seventh Certified Public Accountants P.O. Box MWH • Wichita Falls,Texas 76307-9989 (817)723-1471 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, 1988, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signif- icant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the 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, 1988, and the results of its operations and the changes in financial position of its proprietary and similar trust fund types for the year then ended, in conformity with generally accepted accounting principles. The information listed as required supplementary information in the table of contents is not a required part of the general purpose financial statements, but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. 1 Our audit was made 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. 4L--,41„, 4 Cr- /9 c_ • MATHIS, WEST, HUFFINES & CO., P.C. Wichita Falls, Texas January 4, 1989 2 GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF WICHITA FALLS, TEXAS EXHIBIT A-1 COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS (Page 1 of 2) SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1987 Fiduciary Account Groups Governmental Fund Type. Proprietary Fund Types Fund Types General General Totals Special Debt Capital Internal Trust and Fixed Long-Term (Memorandum Only) General Revenue Service Project. Enterprise Service Agency Assets Debt 1988 1987 ASSETS Cash and short-term investment. $10,192,969 $1,125,963 $ - $11,571,293 $ 6,593,748 $ 851,460 $ 980,348 $ - $ - $ 31,315,781 $ 31,077,088 Receivables (net of allowance for uncollectible): Taxes and assessments (Note 7) 1,184,866 156,554 - 454,730 - - 2,675,399 - - 4,471,549 4,618,727 Customer and trade - - - - 1,718,822 - - - - 1,718,822 1,751,576 Other City funds (Note 18) - - - - - - 1,341 - - 1,341 3,116 Government agencies 573,225 2,378,137 - - 186,615 - - - - 3,137,977 3,052,828 Other 224,251 4,206 - 10,379 44,646 - 125 - - 283,607 530,084 Inventory 27,790 - - - 562,097 294,053 - - - 883,940 855,379 Prepaid items 34,825 124,817 - - 8,339 487 - - - 168,468 221,132 Restricted assets (Note 8): Cash and short-term investments - - 389,655 - 9,249,344 - - - - 9,638,999 10,054,260 Receivables: Pause - - 327,611 - - - - - 327,611 388,516 Government agencies 135,943 - - - - - - - 135,943 195,474 Other - - - - 142,181 - - - - 142,181 110,376 Plant and equipment (Not.9): Lend and betterments - - - - 24,573,404 433,658 - 14,327,189 - 39,334,251 38,977.801 Building., systems and improvement. - - - - 61,494,239 4,008,948 - 14,159,440 - 79,662,627 74,353.293 Machinery and equipment - - - - 2,679,738 - - 3,411,385 - 6,091,123 5,766,164 Furniture and fixtures - - - - 46,456 5,974 - 461,194 - 513,624 794,847 Motor vehicles and equipment - - - - 3,670 14,485,375 - 124,805 - 14,613,850 13,488,013 Construction in progress - - - - 9,446,967 - - 694,263 - 10,141,230 11,043,738 Accumulated depreciation ( 30,839,511) ( 7,686,282) - - - ( 38,525,793) ( 35,903,097) {/J Amount available for retirement of bonds - - - - - - - - 400,423 400,423 269,301 Amount to b. provided for the retirement of capital lease■ - - - - - - - - 15,000 15,000 213,337 Amount to be provided for accrued vacation and sick leave - - - - - - - - 2,886,413 2,886,413 2,831,397 Amount to b. provided for the retirement of bonds - - - - - - - - 21,229,577 21,229,577 21,965,699 Amount to be provided for claims and judgments - - - - - - - - 82,740 82,740 93,918 Deferred charges - - - - 658,130 - - - - 658,130 698,367 Other assets 188 - - - - - - - - 188 - TOUT aseete S12,174,057 53.789.677 1717.266 212,036,402 8$ 6,568,885 $12,393.673 $3,657,213 $33,178.276 $24.614,153 $189.329.602 1187.451.334 The accompanying Notes are an integral part of these financial statements. EXHIBIT A-1 CITY OF WICHITA FALLS, TEXAS (Page 2 of 2) COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS (CONT'D.) SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1987 Fiduciary Account Groupe Governmental Fund Types Proprietary Fund Types Fund Types General General Totals Special Debt Capital Internal Trust and Fixed Long-Term (Memorandum Only) General Revenue Service Protects Enterprise Service Agency Assets Debt 1988 1987 LIABILITIES AND FUND EOUITY Liabilities: Bank overdraft $ - $ 332,316 $ - $ - $ 187,342 $ - $ 1,341 $ - $ - $ 520,999 $ 217,501 Accounts payable - trade - 617,737 221,967 - 93,965 718,981 296,687 839,877 - - 2,789,214 2,142,052 Accrued payroll 197,219 5,207 - - 238,022 62,023 - - - 502,471 1,160,364 Accrued vacation and sick leave (Note 21) 100,000 - - - - - - - 2,886,413 2,986,413 2,931,397 Payable to other City fund. (Note 18) 1,341 - - - - - - - 1,341 3,116 Payable to government agencies27,300 18,267 - - 1,506 - 2,675,217 - 2,722,290 2,924,825 Estimated health claims payable - - - - - - 193,027 - - 193,027 Other liabilities 485,831 47,465 - 74,430 180,558 - 4,057 - - 792,341 721,032 Deferred revenue 1,133,925 87,762 - 454,730 - - - - - 1,676,417 1,655,561 Capital leases payable (Note 15) - - - Claims and judgment.payable (Note 21) - - - - - - 15,00012,70 213,337 82,74 0 82,740 93,918 Payable from restricted assets: Contracts end trade - - 370 - 765 - - - - 1,135 257,O41 Revenue bonds (Note 16) - - - - 600,000 - - - - 600,000 575,000 Accrued Snter..t- revenue bond. - - - - 308,558 - - - - 308,558 313,829 Matured bonds and interest payable - - - - 3,000 - - - - 3,000 3,000 Deferred revenue - - 316,473 - 108,000 - - - - 424,473 367,744 General obligation bonds payable (Note 16) - - - - - - - - 21,630,000 21,630,000 22,235,000 Payable to U.S. Government (Note 13) - - - - 1,093,040 - - - 1,093,040 1,108,940 Revenue bonds payable (Note 16) - - - - 22,835,000 - - - - 22,835,000 23,435,000 Other long-term liabilities: Customer deposits- payable from restricted mots - - - - 98e.753 - - 98e.753 922.085 Total liabilities 2,563.353 7.12,98e 316.8{3 623.125 27,259.525 358,710 3,713.519 - 24,614,153 60,162,212 61.280.742 Fund equity: Contributed capital (Note 20) - - - - 21,988,951 12,060,118 - 34,049,069 33,566,885 Inve.tment in general fixed assets - - - - - - - 33,178,276 - 33,178,276 33,O46,490 Retained earnings (deficit): Reserved for revenue bond debt service - - - - 2,905,568 - - 2,905,568 2,867,634 Unreserved (Note 4) - - - - 34,414,841 ( 25,155) - - 34,389,686 30,793,782 Fund balances (deficit): Reserved for encumbrances 637,497 304,812 - 2,600,151 - - - - - 3,542,460 2,082,491 Reserved for inventory and prepaid items 62,615 124,817 - - - - - - 187,432 213,939 Unreserved: Designated for: Subsequent years expenditures 1,750,000 2,622,343 - 8,813,126 - - 42,069 - - 13,227,538 15,862,723 Debt service 400,423 - - - - - 400,423 269,301 Undesigna tad (Note 4) 7,360.592 2�1721 - - ( 98.375) - - 7,286.938 7.467.347 Total fund equity (deficit) 9,810,70d 3.076.693 e00.123 11.113,277 59.309,360 12.034,963 ( 56.306) 33,178,276 - 129,167,390 126.170.592 Total liabilities and fund equity $12,374,057 $3,789,677 71$ 7.266 $122 036.e02 $86.568.885 $12,393.673 $3,6571213 $33.�8 17 ,276 $2e.61ea153 $189429.602 $187.e�51.33e The accompanying Notes are an Integral part of thew financial statements. EXHIBIT A-2 CITY OF WICHITA FALLS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 Fiduciary Governmental Fund Types Fund Types Totals Special Debt Capital Expendable (Memorandum Only) General Revenue Service Projects Trust 1988 1987 Revenues: Taxes (Note 7) $22,195,718 $ 587,386 $ 2,363,009 $ - $ - $25,146,913 $24,280,243 Special assessments - - - 20,530 - 20,530 20,465 Charges for services 1,295,629 - - - - 1,295,629 1,164,667 Licensee and permits 598,915 - - - - 598,915 353,679 Fines 885,805 - - - - 885,805 840,467 Intergovernmental revenue 704,187 2,823,485 - - - 3,527,672 3,055,271 Contributions - - - - 1,926,449 1,926,449 2,096,145 Miscellaneous revenue 1,346.153 515,143 55,931 765.594 5,344 2,688.165 2.591.122 Total revenues 27.026.407 3,926.014 2.419.740 786,124 1.931.793 36.090.078 34.402.059 Expenditures: Current: Administrative services division 4,838,572 2,617,311 - - 2,099,343 9,555,226 9,345,240 Police division 7,578,322 - - - - 7,578,322 7,242,687 Fire division 5,096,563 - - - - 5,096,563 4,844,086 Parks and recreation division 3,192,387 3,192,387 2,928,346 Accounting/finance division 432,777 - - - - 432,777 469,576 Planning division 336,317 - - - - 336,317 269,662 Public works division 5,200,849 - - - - 5,200,849 5,233,671 Health division 1,836,848 - - - - 1,836,848 1,939,250 Traffic and transportation division 1,217,950 - - - - 1,217,950 1,296,474 Capital outlay - 36,354 - 1,291,175 - 1,327,529 1,422,645 Debt service: Principal retirement - - 605,000 - - 605,000 305,000 Interest and paying agent fees - - 1,683,618 - - 1.683,618 1.983.420 Total expenditures 29.730,585 2,653,665 2.288,618 1.291.175 2.099.343 38.063,386 37,280,057 Excess of revenues over (under) expenditures ( 2.704,178) 1.272.349 131,122 ( 505,051) ( 167,550) ( 1,973,308) ( 2,877,998) Other financing sources (uses): Operating transfers in 942,704 193,545 - - 60,000 1,196,249 1,079,605 Operating transfers out - ( 193,545) - - - ( 193,545) ( 346,620) Contributions from (by) operating grants (Note 5) 2,007.724 ( 2,288.130) - - - ( 280,406) ( 389.111) Total other financing sources (uses) 2.950.428 ( 2.288.130) - - 60,000 722,298 343,874 Excess of revenues and other sources over (under) expenditures and other uses 246,250 ( 1,015,781) 131,122 ( 505,051) ( 107,550) ( 1,251,010) ( 2,534,124) Fund balance - beginning 9.564,454 4,092,474 269,301 11,918,328 51,244 25,895,801 28,429,925 Fund balance (deficit) - ending $ 9,810,704 $3,076,693 $ 400,423 $11,413,277 ($ 56,306) $24,644,791 $25.895.801 The accompanying Notes are an integral part of these financial statements. BIT A.3 CITE OF WICHITA PALLS, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES Alf)CHANGES IN FUND BALANCES-SODOM AND ACTUAL- GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 198E Totals General Fund Special Revenue Funds Debt Service Pond (Memorandum Only) Variance- Variance- Variance- Variance- Pavorable Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues: Taxes (Note 7) $22,162,897 S22,195,718 $ 32,821 $ 591,167 $ 587,386 ($ 3,781) $2,287,502 $ 2,363,809 $ 76,307 $25,041,566 $25,146,913 $ 105,347 Charges for services 1,266,900 1,295,629 28,729 - - - - - - 1,266,900 1,295,629 28,729 Licenses and permits 422.520 598,915 176,395 - - - - _ _ 422,520 598,915 176,395 Pines 852,950 885,805 32,855 - - - - - - 852,950 885,805 32,855 Intergovernmental revenue 730,401 704,187 ( 26,214) 2,833,446 2,823,485 ( 9,961) _ - - 3,563,847 3,527,672 ( 36,175) Miscellaneous revenue 939 478 1 346 153 406 675 472 523 515 143 42 620 5 000 55 931 50 931 1,417,001 1,917,227 500,226 Total revenues 2613751146 27.026,407 651,261 3,897,136 3,926,014 28,87E 21292,502 2,419,740 127,23E 32,564,784 33,372,161 807,377 Expenditures: Current: Administrative services division 5,583,560 4,838,572 744,988 3,283,963 2,617,311 666,652 _ - - 8,867,523 7,455,883 1,411,640 Police division 7,703,280 7,578,322 124,958 - - - - _ - 7,703,280 7,578,322 124,958 Fire division 5,129,239 5,096,563 32,676 - - - - - - 5,129,239 5,096,563 32,676 Parks and recreation division 3,239,408 3,192,387 47,021 - - - - - - 3,239,408 3,192,387 47,021 Accounting/finance division 436,451 432,777 3,674 - - - - _ - 436,451 432,777 3,674 Planning division 349,481 336,317 13,164 - - - - - - 349,481 336,317 13,164 Public works division 5,316,706 5,200,849 115,857 - - - - - - 5,316,706 5,200,849 115,857 Health division 1,931,199 1,836,848 94,351 - - - - _ - 1,931,199 1,836,848 94,351 Traffic and transportation division 1,298,975 1,217,950 81,025 - - - - - - 1,298,975 1,217,950 81.025 Capital outlay - - - 54,389 36,354 18,035 - - - 54,389 36,354 18,035 Debt service: Principal retirement - - - - - - 605,000 605,000 - 605,000 605,000 - Interest and paying 41 agent fees - - - - - - 1,687,502 1,683,61E 3,884 1,687,502 1,683,61E 3,884 Total expenditure. 30.988.299 29,730,585 14257,714 3,338,352 2,653,665 684,687 2,292,502 2,288,61E 3,884 36,619,153 34,672,86E 1.946,285 mxoess of revenues over (under) expenditures ( 4,613,153) ( 2,704,17E) 1,908,975 558,784 1,2 ,72349 713,565 - 131,122 131,122 ( 4,054,369) ( 1.300,707) 2.753,662 Other financing source• (uses): Operating transfers in 942,704 942,704 - 207,971 193,545 ( 14,426) - - - 1,150,675 1,136,249 ( 14,426) Operating transfer. out - - - ( 207,610) ( 193,545) 14,065 - - - ( 207,610) ( 193,545) 14,065 Contributions from (by) operating grants 2,007,724 2,007,724 - ( 2,288,130) ( 2,288,130) - - - - ( 280,406) ( 280.406) - Total other financing sources (uses) 2,950,428 2,950,42E - ( 2,287,769) ( 2,288,130) ( 361) - - - 662,659 662,298 ( 361) Excess of revenues and other sources over (under) expenditures and other uses ($ 1,662,725) 246,250 51,908,975 ($1,728,985) ( 1,015,781) 5 713,204 1 - 131,122 1 131,122 ($ 3,391,710) ( 638,409) $ 2.753.301 Fund balance -beginning 9,564,454 4,092,474 269,301 134926,229 Fund balance -ending $ 9,810,704 $3,076,693 $ 400,423 $13,287,820 The accompanying Notes are an integral part of these financial statements. EXHIBIT A-4 CITY OF WICHITA FALLS, TEXAS (Page 1 of 2) COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 1988 1987 Operating revenues: Charges for services $17,659,546 $ - $17,659,546 $16,505,890 Rents, concessions and other 326,457 5,478,984 5,805,441 5,784,333 Total operating revenues 17,986,003 5,478,984 23,464,987 22,290,223 Operating expenses: Personnel services 4,924,630 1 ,062,218 5,986,848 5,842,971 Supplies and materials 651 ,800 905,319 1 ,557, 119 1 ,313,678 V Maintenance and repairs 5,015,457 1 ,130,581 6,146,038 6,558,024 Utilities and other services 2,306,175 258,202 2,564,377 2,419,276 Insurance and contract support 514,913 2,759 517,672 620,684 Depreciation and amortization 1 ,692,622 1 ,579,623 3,272,245 3, 123,722 Total operating expenses 15, 105,597 4,938,702 20,044,299 19,878,355 Operating income 2,880,406 540,282 3,420,688 2,411 ,868 Non-operating revenues (expenses) : Interest income 970,852 7,244 978,096 1 ,041 ,643 Gain (loss) on sale of fixed assets ( 1 ,764) ( 42,372) ( 44, 136) 46,561 Litigation proceeds 423,709 - 423,709 - Interest expense and paying agent fees ( 716,105) - ( 716, 105) ( 79,297) Contributions from operating grants 286,066 - 286,066 340, 170 Total non-operating revenues (expenses) 962,758 ( 35, 128) 927,630 1 ,349,077 The accompanying Notes are an integral part of these financial statements. EXHIBIT A-4 CITY OF WICHITA FALLS, TEXAS (Page 2 of 2) COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES (CONT'D. ) FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 1988 1987 Income before operating transfers 3,843, 164 505, 154 4,348,318 3,760,945 Operating transfers: Operating transfers in 228,224 - 228,224 210,049 Operating transfers out ( 630,270) ( 312,434) ( 942,704) ( 943,034) Net operating transfers ( 402,046) ( 312,434) ( 714,480) ( 732,985) m Net income 3,441 , 118 192,720 3,633,838 3 ,027,960 Retained earnings (deficit) - beginning 33,879,291 ( 217,875) 33,661 ,416 30,638, 129 Residual equity transfer to Internal Service Fund - - - ( 4,673) Retained earnings (deficit) - ending $37,320,409 ($ 25, 155) $37,295,254 $33,661 ,416 The accompanying Notes are an integral part of these financial statements. EXHIBIT A-5 CITY OF WICHITA FALLS, TEXAS (Page 1 of 2) COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 1988 1987 Sources of funds: Net income $ 3,441 ,118 $ 192,720 $ 3,633,838 $ 3,027,960 Items not requiring (providing) working capital: Depreciation and amortization 1 ,692,622 1 ,579,623 3,272,245 3,123,722 (Gain) loss on sale of assets 1 .764 42,372 44, 136 ( 46,561 ) Working capital provided by operations 5,135,504 1 ,814,715 6,950,219 6,105,121 Contributed capital 228,970 253,214 482, 184 410,012 Proceeds from sale of assets - 87,885 87,885 141 ,373 Customer deposits, net 62,668 - 62,668 51 ,913 Transfer of assets to Internal Service Fund - - - 4,673 Contributions from equity transfers - - - 8,485 Decrease in restricted assets 524,582 - 524,582 4,888,501 Total sources of funds 5,951 ,724 2,155,814 8,107,538 11 ,610,078 Application of funds: Deferred charges - - - 9,223 Purchase of fixed assets 4,436,705 2,105,691 6,542,396 11 ,875,886 Retirement of revenue bonds 600,000 - 600,000 575,000 Payment of U.S. Government obligation 15,900 - 15,900 15,399 Residual equity transfer to Internal Service Fund - - - 4,673 Transfer of assets from Enterprise Funds - - - 4,673 Transfer of assets from General Fixed Asset Account Group - - - 3,812 Decrease in current liabilities payable from restricted assets 128,547 - 128,547 31 ,102 Total application of funds 5,181 ,152 2, 105,691 7,286,843 12,519,768 Net increase (decrease) in working capital $ 770,572 $ 50,123 $ 820,695 ($ 909.690) The accompanying Notes are an integral part of these financial statements. EXHIBIT A-5 CITY OF WICHITA FALLS, TEXAS (Page 2 of 2) COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES (CONT'D. ) FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 1988 1987 Summary of net changes in working capital: Increase (decrease) in current assets: Cash and short-term investments $ 1 ,087,007 $ 99,535 $ 1 ,186,542 ($ 1 ,026,755) Receivables: Customer and trade ( 32,754) - ( 32,754) 263,194 Other City funds - - - ( 28,885) 0 Government agencies 27,800 - 27,800 72,211 Other ( 41 ,405) ( 347) ( 41 ,752) 50,821 Inventory 62, 189 ( 37,613) 24,576 1 ,228 Prepaid items 4,982 ( 230) 4,752 2,655 Net increase (decrease) in current assets 1 , 107,819 61 ,345 1 , 169, 164 ( 665,531 ) Increase (decrease) in current liabilities: Bank overdraft 30, 130 - 30,130 105, 192 Accounts payable - trade 320,537 35,679 356,216 98,003 Accrued payroll ( 123,258) ( 24,457) ( 147,715) 50,743 Payable to other City funds - - - ( 13,672) Payable to government agencies 1 ,506 - 1 ,506 ( 7,807) Other liabilities 108,332 - 108,332 11 ,700 Net increase in current liabilities 337,247 11 ,222 348,469 244, 159 Net increase (decrease) in working capital $ 770,572 $ 50, 123 $ 820,695 ($ 909,690) The,accompanying Notes are an integral part of these financial statements. CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1988 Note 1 - DEFINING THE REPORTING ENTITY In accordance with National Council on Governmental Accounting (NCGA) Statement 3, which addresses the issue of defining the reporting entity with respect to other agencies, institutions, commissions, public authorities, or other government organizations for inclusion in the reporting entity's general purpose financial statements, City of Wichita Falls, Texas (City) management identified four organizations which were evaluated for inclusion using the following criteria: 1 . Exercise of oversight responsibility over such agencies by the City's elected officials: a. Financial interdependency b. Selection of governing authority c. Designation of management d. Ability to significantly influence operations and accountability for fiscal matters. 2. Scope of public service: a. Whether the activity is for the benefit of the reporting entity and/or its residents b. Whether the activity is conducted within the geographic boundaries of the reporting entity and is generally available to the citizens of that entity. The four organizations evaluated were not involved in any joint ventures with the City as defined by NCGA Statement 7. The organizations identified and evaluated for inclusion in the City's financial statements were: Employee Benefit Trust Fund Based on the above criteria, the financial statements of the Employee Benefit Trust Fund are included in the City's accompanying financial statements as an expendable 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 Employee Benefit Trust Committee consists of four Trustees selected by the City, who may, but need not be, benefi- ciaries of the health and welfare program funded by the Trust, and/or officers or employees of the City. The purpose of the Employee Benefit Trust Fund 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. 11 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D,) SEPTEMBER 30, 1988 Note 1 - DEFINING THE REPORTING ENTITY (CONT'D.) Firemen's Relief and Retirement Fund The activities of the Firemen's Relief and Retirement Fund, in the City's professional judgment, are not a part of the City and thus are excluded from the accompanying financial statements. The Wichita Falls Firemen's Relief and Retirement Fund is established and 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 and Director of Finance, 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. Other Organizations Other organizations not meeting the criteria used by the City for inclu- sion in the City's financial statements include the following: Housing Authority of the City of Wichita Falls Wichita County/City Hospital Board These organizations represent separate non-profit governmental units and are not controlled by or dependent upon the City. They also did not meet the criteria of financial interdependency, which is the most significant manifestation of oversight and includes responsibility for financing deficits, entitlements to surpluses, and guarantees of or "moral responsi- bility" for debt. 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 govern- ments. 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 following is a summary of the more significant policies and practices used by the City. 12 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 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 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 appro- priation 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 except11 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 Funds - Debt service funds are 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 and trust funds) . Proprietary Funds Proprietary funds are those used to account for the City's ongoing organi- zations and activities which are similar to those found in the private sector. The measurement focus is upon capital maintenance and upon deter- mination of net income, financial position, and changes in financial position. 13 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Proprietary Funds (Cont'd.) Enterprise Funds - Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private busi- ness 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 agency funds. Expendable Trust Funds - These funds are accounted for in the same manner as governmental funds. Agency Funds - These funds are purely custodial (assets equal liabili- ties) 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: General Fixed Assets Group - This account group is established to account for all fixed assets of the City other than those accounted for in the proprietary funds. General Long-Term Debt Group - This account group is established to account for long-term liabilities of the City other than those accounted for in the proprietary funds. 14 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Basis of Accounting Basis of accounting refers to the time at which revenues and expenditures or expenses are recognized in the accounts and reported in the financial state- ments. Governmental funds, expendable trust funds, and agency funds are accounted for using 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 general long-term obligations which are recognized when due. This exception is in conformity with generally accepted accounting principles. Property tax revenues and sales tax receipts are considered measurable and available when collected by the respective intermediary collecting agency and recognized as revenue at that time. Licenses and permits, fines and for- feits, 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 expen- ditures 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: 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. Proprietary funds are accounted for using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the 15 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Basis of Accounting (Cont'd.) 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, divi- sions 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' com- ments 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. Addi- tional appropriations were made during the year in the amount of $1 ,011 ,975 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. 5. Annual budgets are legally adopted for all governmental funds on a basis consistent with generally accepted accounting principles. How- ever, the budgets for the capital projects funds are adopted for specific projects, are not binding, and may exceed one year . Accord- ingly, no comparison of budget to actual is presented in the 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. 16 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) 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 reser- vations of fund balance for subsequent year expenditures and are reappro- propriated in subsequent year budgetary accounts. Investments The City pools idle cash from all funds (except the Deferred Compensation Fund) for the purpose of increasing income through investment activities. Investments are carried at cost except for Deferred Compensation Fund investments which are carried at market value. Interest earnings are allo- cated based on cash amounts in individual funds in a manner consistent with budgetary and legal requirements. 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, inven- tory acquisitions are recorded in inventory accounts initially and charged as expenditures when used. Inventories are stated at average cost. Plant and Equipment - Proprietary Funds Plant and equipment owned by the proprietary funds are stated at historical cost. Maintenance and repairs are charged to operations as incurred, and improvements and betterments which extend the useful lives of fixed assets are capitalized. Depreciation of plant and equipment is provided by the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives for straight-line depreciation are as follows: Buildings, systems and improvements 20 - 59 years Machinery, vehicles and other equipment 3 - 25 years Furniture and equipment 3 - 10 years When fixed assets of proprietary funds are sold, the sales proceeds less the adjusted basis of the assets (initial cost less accumulated depreciation) are recorded as a gain or loss. For proprietary fund fixed assets, interest is capitalized on construction costs incurred during the year at an average interest rate on borrowed funds (revenue bonds) in accordance with generally accepted accounting principles. 17 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Plant and Equipment - Proprietary Funds (Cont'd.) 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 ending September 30, 1988, the City's proprietary funds incurred a total of $1 ,914,123 of interest costs. Of this amount, $1 ,198,934 was capitalized on construction projects and $715,189 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 contri- butions 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 obli- gation bonds in accordance with generally accepted accounting principles. Public domain general fixed assets (infrastructure) consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, and similar assets have not been capitalized. Grants and Other Intergovernmental Revenues Categorical grants, except for grants that benefit more than one fund and "pass through" grants, are accounted for within the appropriate fund of the City to be financed by such grants. Revenues are recorded when they become susceptible to accrual. Generally, expenditures govern eligibility for income recognition, and the revenue is recognized as expenditures are incurred. Grants financing more than one fund or financing secondary reci- pients such as the Federal Revenue Sharing and Community Development Block grants are recorded as special revenue funds pending a determination of the programs or activities to be financed by such sources. Revenues are recog- nized when they become measurable and available, and expenditures are recorded in the fund benefited by such expenditures. 18 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Reserves and Designations Portions of fund equity are segregated for future use, and are therefore not available for future appropriation or expenditure. Amounts reserved for revenue bond debt service and retirement represent portions of fund equity which are required to be segregated in accordance with the City's bond ordi- nances. 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 expen- ditures 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 pro- prietary funds are treated as contributed capital, and such transfers from proprietary funds are reported as reductions of retained earnings or contri- buted capital as is appropriate in the circumstances. All other transfers are treated as operating transfers and are included in the results of opera- tions of both governmental and proprietary funds. Vacation and Sick Leave All permanent full-time employees earn vacation time and sick leave. Vaca- tion time is earned at the rate of four hours per pay period up to a maximum of thirteen days per year. The maximum vacation time that may be accrued is thirty days. Sick leave is earned at the rate of 4.62 hours per pay period up to a maximum of ninety days. Upon leaving the employment of the City, employees will be paid for unused vacation days which have accrued. Addi- tionally, police officers and firefighters may accumulate an unlimited number 19 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.) Vacation and Sick Leave (Cont'd.) 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. Insurance The City maintains a group health insurance plan for employees and dependents which is 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 the participating employees and are recognized as revenues in the funds. The contributions by the City are recorded as expenditures or expenses of the various funds as appropriate. Comparative Data Comparative data for the prior year have 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) have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Reclassifications Certain comparative data have been reclassified to present such amounts in a manner consistent with the current year's financial statements. Total Columns on Combined Financial Statements Total columns on the combined financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Such data is not comparable to a consoli- dation. Interfund eliminations have not been made in arriving at the totals. Note 3 - ESTABLISHMENT OF WICHITA FALLS REINVESTMENT ZONE #1 FUND Effective October 1 , 1987, the City established an additional expendable trust fund entitled the Wichita Falls Reinvestment Zone #1 Fund. This fund was created to account for ad valorem taxes levied on captured increments of growth in real property values in a designated zone. These increments of growth in real property values are to be determined using January 1 , 1986 20 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 3 - ESTABLISHMENT OF WICHITA FALLS REINVESTMENT ZONE #1 FUND (CONT'D.) base values. The tax revenues derived from this increment are to be spent on public improvements within the designated zone or for debt service on bonds issued to provide funds for public improvements. Note 4 - FUND DEFICITS Enterprise Funds At September 30, 1988, the Airport Fund had a deficit retained earnings balance of $155,879. The intent of management is that this deficit be recovered by transfers from other funds during future years. At September 30, 1988, the Transit Fund had a deficit retained earnings balance of $148,201 . 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, 1988, the Internal Service Fund had a deficit retained earnings balance of $25, 155. In the opinion of management, this deficit will be recovered in the next fiscal year by maintaining the current rates charged for services rendered to other departments. Expendable Trust Fund At September 30, 1988, the Employee Benefit Trust Fund had a deficit fund balance of $98,375. The intent of the fund's board of trustees is that this deficit be recovered in the following three fiscal years through increased premiums charged and implementing new plan provisions. Note 5 - COLLECTIONS FROM CATEGORICAL BLOCK GRANTS AND FEDERAL REVENUE SHARING Categorical grant expenditures for the years ended September 30, 1988 and 1987, respectively, have been reflected in the following City funds: 1988 1987 General Fund $2,007,724 $1 ,833,286 Enterprise Funds: Transit Fund - 158,814 Water and Sewer Fund 122,715 181 ,356 Total Enterprise Funds 122,715 340,170 Total $2,130,439 $2,173,456 21 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 5 - COLLECTIONS FROM CATEGORICAL BLOCK GRANTS AND FEDERAL REVENUE SHARING (CONT'D.) The financing uses of the Revenue Sharing Fund and Community Development Block Grant as reflected in the General Fund and the Enterprise Fund are detailed as follows: Revenue Sharing Community Development Fund Block Grant Budget (1) Actual Budget (1) Actual Personnel services $ - $ - $ 263,458 $ 225,382 Supplies and materials 7,635 7,596 7,594 4,730 Maintenance 923,117 482,685 2,642,950 1 ,025,619 Utilities and other services 39,550 27,423 200,150 179,947 Insurance and contract support services 114,265 - 10,000 7,877 Capital outlay 347,295 326,871 9,916 - Total $1 ,431 ,862 $ 844,575 $3,134,068 $1 ,443,555 (1) Budgeted amounts as shown include current and prior year appropriations to be carried forward for future use. Note 6 - DEPOSITS AND INVESTMENTS Deposits All of the City's demand and time depository accounts are held in a local banking institution under the terms of a written depository contract. At September 30, 1988, the total amount of the City's demand and time deposits per the general ledgers was ($899,372) , and the total amount per the City's September 30, 1988 bank statements was $278,662. The entire amount of the year end bank statement balances was covered by federal depository insurance or by U.S. Government Securities held as collateral by the City's agent in the City's name. Investments The City's investment policies are governed by State statutes. The City is authorized to invest in obligations of the United States or its agencies, obligations of the State of Texas or its agencies, commercial paper rated A or its equivalent by a nationally recognized investment rating firm, and repur- chase agreements. 22 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 6 - DEPOSITS AND INVESTMENTS (CONT'D.) Investments (Cont'd.) The City's investments are categorized below to give an indication of the level of risk assumed by the entity at year end. Category 1 includes invest- ments 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 broker's or dealer'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 broker or dealer, or its trust department or agent, but not in the City's name. Category Carrying Market Description 1 2 3 Amount Value Repurchase Agreements $31 ,600,000 $ - $ - $31 ,600,000 $31 ,628,656 U.S. Government Securities 9,047,783 - - 9,047,783 9,178,384 Assets of Deferred Compensation Fund 685,370 - - 685,370 685,370 Total $41 ,333, 153 $ - $ - $41 ,333,153 $41 ,492,410 Note 7 - 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, 1988 was $.6378 per $100 which means that the City has a tax margin of $1 .6122 per $100, and could raise up to $36,674,651 additional tax revenue a year from the present assessed valuation of $2,274,820,154 before the limit is reached. 23 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 7 - PROPERTY TAXES (CONT'D.) The City serves as agent in assessing and collecting ad valorem taxes for the Wichita Falls Independent School District. It also served the Wichita Falls College District in a similar capacity during its existence and currently serves as collector and as custodian of delinquent tax records for successors to the former District. Taxes levied and uncollected for the School and College District totaled $2,675,217 and $2,744,968 at September 30, 1988 and 1987, respectively, and are reflected in the Tax Collection Fund in the agency fund group. Note 8 - 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 short-term investments $2,905,568 For Capital Improvements: Cash and short-term investments 5,359,023 Receivables 142, 181 For Customer Deposits: Cash and short-term investments 984,753 Total $9,391 ,525 24 NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 9 - PLANT, EQUIPMENT AND DEPRECIATION A summary of proprietary fund type plant and equipment at September 30, 1988 is as follows: Total Water and Internal Proprietary Airport Transit Sanitation Sewer Service Funds Land and betterments $1 ,468,175 $ 61 ,925 $ 653,692 $22,389,612 $ 433,658 $ 25,007,062 Buildings and improvements 1 ,451 ,662 626,868 2,298,370 56,208,718 4,008,948 64,594,566 Machinery and equipment 13,608 67,822 95,660 2,502,648 - 2,679,738 Furniture and fixtures 11 ,937 6,128 4,750 23,641 5,974 52,430 Motor vehicles and equipment - - - 3,670 14,485,375 14,489,045 Construction in progress - - - 11 ,034,355 - 11 ,034,355 2,945,382 762,743 3,052,472 92,162,644 18,933,955 117,857,196 v Less accumulated depreciation ( 988,329) ( 65,905) ( 348,193) ( 29,437,084) ( 7,686,282) ( 38,525,793) Net plant and equipment $1 ,957,053 $696,838 $2,704,279 $62,725,560 $11 ,247,673 $ 79,331 ,403 The following table summarizes the changes in the components of the General Fixed Assets Account Group: Balance Balance October 1 , Transfers September 30, 1987 Additions Deletions In (Out) 1988 Land and betterments $14,311 ,189 $ 16,000 $ - $ - $14,327,189 Buildings and improvements 13,919,186 57,913 1 ,410 183,751 14,159,440 Machinery and equipment 3,143,900 355,798 88,313 - 3,411 ,385 Furniture and fixtures 735,666 5,868 280,340 - 461 ,194 Motor vehicles and equipment 150,555 - 25,750 - 124,805 Construction in progress 785,994 92,020 - ( 183,751) 694,263 Total $33,046,490 $ 527,599 $395,813 ' $ - $33,178,276 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 10 - DEFINED CONTRIBUTION PENSION PLAN Plan Description The City provides pension benefits for all of its full-time employees, except firemen, through a nontraditional, joint contributory, defined contribution plan in the state-wide Texas Municipal Retirement System (TMRS) . The City's plan is one of over 500 administered by TMRS, an agent multiple-employer public employee retirement system. The plans in TMRS are substantially defined contribution plans, but have many of the characteristics of defined benefit plans. Therefore, additional voluntary disclosures are provided to help foster a better understanding of the nontraditional characteristics of the plan. 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 200% of the employee's accumulated contributions. Members can retire at ages 60 and above with 15 or more years of service, at ages 50-59 with 25 or more years of service, or with 28 years of service regardless of age. The plan also provides death and disability benefits. A member is vested after 20 years, but must leave his accumulated contributions in the plan. If a member prematurely withdraws his own money, he is not entitled to the employer-financed monetary credits even if vested. The plan provisions are adopted by the City within the options and actuarial constraints detailed in the state statutes governing TMRS. Funding Status and Progress Even though the substance of the City's plan is not to provide a defined benefit in some form, some additional voluntary disclosure is appropriate due to the nontraditional nature of the defined contribution plan which had an initial unfunded pension benefit obligation upon the plan's inception. The pension benefit obligation shown below is similar in nature to the standard- ized disclosure measure required by Governmental Accounting Standards Board (GASB) Statement 5 for defined benefit plans, except that there is no need to project salary increases since the benefit credits earned for service to date are not dependent upon future salaries. The calculations were made as part of the annual actuarial valuation as of December 31 , 1987 and, therefore, all plan disclosures have been presented on a twelve month calendar year basis. Because of the money purchase nature of the plan, the interest rate assump- tion, currently 5% per year, does not have as much impact on the results as 26 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 10 - DEFINED CONTRIBUTION PENSION PLAN (CONT'D.) Funding Status and Progress (Cont'd.) it does for a defined benefit plan. The market value of assets is not determined for each individual City's plan, but the market value of assets for TMRS as a whole was 105% of book value as of December 31 , 1987. Total unfunded pension benefit obligation applicable to the City's employees was $5,304,425 at December 31 , 1987, as follows: Pension benefit obligation: Annuitants $ 1,750,076 Terminated employees 1 ,069,364 Current employees: Accumulated employee contributions including allocated invested earnings 9,355,960 Employer-financed vested 9,230,824 Employer-financed nonvested 5,830,384 Total pension benefit obligation 27,236,608 Net assets available for benefits, at book value 21 ,932,183 Unfunded pension benefit obligation $ 5,304,425 The book value of assets is amortized cost for bonds and original cost for short-term securities and stocks. The actuarial assumptions used to compute the actuarially determined City contribution rate are the same as those used to compute the pension benefit obligation. The amounts above reflect changes in the plan that were adopted after the previous actuarial valuation, which had the effect of increasing the unfunded pension benefit obligation by $566,658. Contributions Required and Contributions Made The contribution rate for all employees, except policemen, is 5%. Policemen contribute 7% to the plan. The City's matching percent is currently 200% of the employee's contribution. Under state laws governing TMRS, the City's contribution rate is annually determined by an actuary. Part of the City's contribution rate (the normal cost) is to fund the currently accruing mone- tary credits, with the other part (the prior service contribution rate) calculated as the level percent of payroll needed to amortize the unfunded actuarial liability over the remainder of the plan's 25-year amortization period. When the City periodically adopts updated service credits and 27 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 10 - DEFINED CONTRIBUTION PENSION PLAN (CONT'D.) Contributions Required and Contributions Made (Cont'd.) increases the annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-year period. Currently, the unfunded actuarial liability is being amortized over the 25-year period which began January, 1988. The unit credit actuarial cost method is used for determining the City's contribution rate. Contributions are made monthly by both the employees and the City. Since the City needs to know its contribution rate in advance to budget for it, there is a one-year lag between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. The City's total payroll for the calendar year 1987 was $21 ,240,641 , and the City's contributions were based on a covered payroll of $16,147,248. Both the City and the covered employees made the required contributions for the calendar year 1987, amounting to $962,376 for the City and $894,829 for the employees. The City adopted changes in the plan since the previous actuarial valuation, which had the effect of increasing the City's contribution rate for 1988 by 0.11% of payroll. There were no related-party transactions. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten-year trend information may be found on pages 43-44 of the City's comprehensive annual financial report. For the three plan years ended December 31 , 1985, 1986, and 1987, respect- ively, available assets were sufficient to fund 80.5, 81 .0, and 80.5 percent of the pension benefit obligation. Unfunded pension benefit obligation represented 27.6, 28.7, and 32.9 percent of the annual payroll for employees covered by the plan for the three years ended December 31 , 1985, 1986, and 1987, respectively. Showing unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation for analysis purposes. In addition, for the three years ended December 31 , 1985, 1986, and 1987, the City's contributions to the plan, all made in accordance with actuarially determined requirements, were 5.35, 5.80, and 5.96 percent, respectively, of annual covered payroll. Note 11 - FIREMEN'S RELIEF AND RETIREMENT FUND The City's firemen are covered by a locally administered Firemen's Relief and Retirement Fund maintained for members of the City of Wichita Falls Fire Department under provisions of applicable laws of the State of Texas. All firemen, who are under the age of 35 upon entering service as a City fire- fighter, must become members of the plan. 28 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 11 - FIREMEN'S RELIEF AND RETIREMENT FUND (CONT'D.) Eighteen percent of each fireman's gross salary is contributed to the Fund, with one-half of the contributed amount being paid by each fireman and one-half by the City. For the year ended September 30, 1988, the City contributed $324,472 to the Fund. Contributions have been made for all plan years in accordance with actuarially determined contribution requirements determined through an actuarial valuation. Civil statutes of the State of Texas currently permit an actuarial valuation no more than once every two years. The most recent actuarial valuation was performed on April 30, 1986. The next actuarial valuation is currently projected to be completed in the spring of 1989. The actuarial cost method used to value the Fund was the entry-age-actuarial cost method. Under this method, the actuarial present value of projected benefits for each participant is allocated as a level percentage of the earnings of the participant between entry age and assumed retirement. The unfunded actuarially accrued liability at April 30, 1986, as determined by a valuation performed as of that date, was $2,949,325. This liability is to be amortized by a level percentage of payroll over a period of 19 years assuming that total payroll will increase 6% per annum in future years. As indicated in Note 1 , the Firemen's Relief and Retirement Fund is not a part of the City and thus has been excluded from the accompanying financial statements. A separate audited financial report of this Fund is publicly available which contains the pension disclosures required by Governmental Accounting Standards Board (GASB) Statement 5. Summary plan information, estimated as of the following evaluation dates by the Fund's consulting actuaries, is as follows: April 30, March 31 , 1986 1983 Pension benefit obligation: Vested benefits for those currently receiving payments $3,238,041 $1 ,699,778 Vested benefits for active participants 3,638,660 2,839, 192 Nonvested benefits for active participants 183,749 179,781 Total pension benefit obligation 7,060,450 4,718,751 Net assets available for benefits, book value as of above evaluation date 6,127,702 4,045,578 Unfunded pension benefit obligation $ 932,748 $ 673,173 29 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 12 - DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accord- ance 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. All compensation deferred under the plan, all investments purchased, and all income attributable to these investments are (until paid or made available to the employee or other beneficiary) solely the property of the City subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of their deferred account. It is the opinion of City management that the City has no liability for losses under the plan, but does have the duty of due care that would be required of an ordinary prudent investor. It is also the opinion of City management ' that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. Note 13 - PAYABLE TO U.S. GOVERNMENT The City of Wichita Falls and Wichita County Water Improvement District No. 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, 2004 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 by NCGA Statement 7. The remaining debt payable to the U.S. Government is classified as follows: September 30, 1988 1987 Long-term $1 ,093,040 $1 ,108,940 Current portion in other liabilities 15,900 15,399 Total $1 , 108,940 $1 ,124,339 30 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 14 - 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 $10,219 and $9,990 for the fiscal years ended September 30, 1988 and 1987, respectively. Note 15 - DESCRIPTION OF LEASING ARRANGEMENTS The City has entered into a land lease expiring in 1991 which is classified as a capital lease and is included in the General Fixed Asset and the General Long-Term Debt account groups. The majority of the operating leases contain the option for annual renewal at the end of the initial lease term. In most cases, leases will be removed or replaced by other leases. The City leases certain equipment and data pro- cessing software under operating leases expiring at varying times through 1989. Capital Leases The following is an analysis of the leased property under capital leases by major classes: Asset Balances at September 30, Classes of Property 1988 1987 Equipment $ - $ 810,755 Motor vehicles - 339,245 Land 50,000 50,000 Total $ 50,000 $1 ,200,000 The following is a schedule by years of future minimum lease payments under capital leases together with the present value of the net minimum lease pay- ments as of September 30, 1988: 31 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 15 - DESCRIPTION OF LEASING ARRANGEMENTS (CONT'D.) Capital Leases (Cont'd.) Year ending September 30: 1989 $ 5,000 1990 5,000 1991 5,000 1992 - 1993 - Total minimum lease payments 15,000 Less: Amount representing interest (1) - Present value of minimum lease payments (2) $ 15,000 Operating Leases The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining noncancell- able lease terms in excess of one year as of September 30, 1988: Year ending September 30: 1989 ; 38,338 1990 1 1991 1 1992 1 1993 1 Later years 15 Total minimum payments required (3) $ 38,357 The following schedule shows the composition of total rental expenses for all operating leases: Year Ending September 30, 1988 1987 Minimum rentals $139,751 $172,108 Contingent rentals 10,219 9,990 Total rentals $149,970 $182,098 32 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 15 - DESCRIPTION OF LEASING ARRANGEMENTS (CONT'D.) (1) The City entered into a capital lease for the purchase of land with an agreement to pay only the principal portion of the lease. The lessor agreed to forego all interest payments on this lease. (2) Reflected in the general long-term debt account group as capital leases payable. (3) Minimum payments do not include contingent rentals which may be paid under the airport lease based on the number of scheduled landings. Note 16 - LONG-TERM DEBT The following is a summary of changes in long-term obligations of the City for the year ended September 30, 1988: Obligations Obligations Outstanding New Obligations Outstanding October 1 , Obligations Retired September 30, 1987 Incurred or Refunded 1988 General Obligation Bonds payable $22,235,000 $ - $ 605,000 $21 ,630,000 Revenue Bonds payable 24,010,000 - 575,000 23,435,000 Accrued vacation and sick leave (Note 21) 2,831 ,397 55,016 - 2,886,413 Capital leases payable (Note 15) 213,337 - 198,337 15,000 Claims and judgements payable (Note 21) 93,918 - 11 ,178 82,740 Payable to U.S. Govt. (Note 13) 1 ,124,339 - 15,399 1 ,108,940 Total $50,507,991 $ 55,016 $1 ,404,914 $49, 158,093 Bonds payable at September 30, 1988 are comprised of the following individual issues: 33 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 16 - LONG-TERM DEBT (CONT'D.) Range of Final Annual Bonds Interest Maturity Serial Bonds Outstanding Rates Date Payments Authorized at 9/30/88 General Obligation Bonds: 1986 General Obligation Refunding Bonds 5.00% to 9/01/06 $305,000 to $22,540,000 $21 ,630,000 8.15% 2,115,000 Revenue Bonds: Water and Sewer Revenue Bonds: 1986 Water and Sewer System Refunding Revenue Bonds 5.00% to 8/01/07 395,000 to 24,405,000 23,435,000 8.30% 2,265,000 Total All Bonds $46,945,000 $45,065,000 The 1986 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, 1988, $400,423 was available in this fund to service these bonds. The 1986 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. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant provisions for such limitations and restrictions. The City's current year payments for debt service of general obligation bonds and revenue bonds included $3,565,475 of interest. The annual requirements to pay principal and interest on the bond obligations outstanding as of September 30, 1988 are as follows: 34 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 16 - LONG-TERM DEBT (CONT'D.) Year Ending General September 30: Obligation Revenue Total 1989 $ 2,285,740 $ 2,451 ,348 $ 4,737,088 1990 2,285,815 2,454,748 4,740,563 1991 2,285,615 2,453,788 4,739,403 1992 2,286,240 2,453,228 4,739,468 1993 2,287,165 2,452,478 4,739,643 1994-1998 11 ,434,396 12,270,643 23,705,039 1999-2003 11,436,524 12,267,905 23,704,429 2004-2007 6,856,988 9,808,102 16,665,090 Total $41 ,158,483 $46,612,240 $87,770,723 Note 17 - DEFEASANCE OF PRIOR DEBT In prior years, the City defeased certain outstanding general obligation and revenue bonds by placing the proceeds of new bonds and additional cash in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust escrow accounts and the defeased bonds are not included in the City's financial statements. At September 30, 1988, the following outstanding bonds are considered defeased: Amount General Obligation Bonds: 1959 Wichita County Water Control and Improvement District No. 6 $ 28,000 1959 Wichita County Water Control and Improvement District No. 4 30,000 1968-A General Obligation Bonds 250,000 1970 General Obligation Bonds 250,000 1971 General Obligation Bonds 375,000 1980 General Obligation Bonds 2,575,000 1981 General Obligation Bonds 3,450,000 1982 General Obligation Bonds 2,050,000 1985 General Obligation Refunding and Improvement Bonds 19,450,000 Total Defeased General Obligation Bonds 28,458,000 35 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 17 - DEFEASANCE OF PRIOR DEBT (CONT'D.) Amount Revenue Bonds: 1966 Water and Sewer Revenue Bonds 385,000 1966-A Water and Sewer Revenue Bonds 225,000 1973 Water and Sewer Revenue Bonds 500,000 1978 Water and Sewer Revenue Bonds 600,000 1980 Water and Sewer Revenue Bonds 650,000 1981 Water and Sewer Revenue Bonds 770,000 1982 Water and Sewer Revenue Bonds 590,000 1984 Water and Sewer Revenue Bonds 18,530,000 Total Defeased Revenue Bonds 22,250,000 Total Defeased Bonds $50,708,000 Note 18 - INTERFUND RECEIVABLE AND PAYABLE BALANCES Interfund receivable and payable balances at September 30, 1988 are as follows: Interfund Interfund Receivables Payables General Fund $ - $1 ,341 Trust and Agency Fund: Accounts Payable Fund 1 ,341 - Total $1 ,341 $1 ,341 Note 19 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains four enterprise funds which provide transportation, sani- tation, water and sewer services. Segment information for the year ended September 30, 1988 is as follows: 36 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 19 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS (CONT'D.) Total Water Enterprise Airport Transit Sanitation and Sewer Funds Operating revenues $ 181 ,959 $145,453 $4,716,133 $12,942,458 $17,986,003 Depreciation and amortization 91 ,528 14,670 57,125 1 ,529,299 1 ,692,622 Operating income (loss) (92,313) (345, 104) 452,995 2,864,828 2,880,406 Contributions from operating grants - 163,351 - 122,715 286,066 Operating transfers in (out) , net 60,403 167,821 (380,692) (249,578) (402,046) Net income (loss) (31 ,791) (14,261) 176,527 3,310,643 3,441 ,118 Current capital: Contributions - - - 205,707 205,707 Plant and equipment: Additions 4,341 24,001 81 ,944 4,326,419 4,436,705 Deletions - 2,599 - 12,059 14,658 Net working capital 164,453 (26,294) 1 ,989,022 5,660,677 7,787,858 Total assets 2,127,568 883,728 4,827,554 78,730,035 86,568,885 Bonds and other long-term liabilities - - - 24,912,793 24,912,793 Total equity 2,121 ,506 670,544 4,693,301 51 ,824,009 59,309,360 I 37 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 20 - CONTRIBUTED CAPITAL - PROPRIETARY FUNDS During the year ended September 30, 1988, contributed capital in the City's proprietary funds increased by the following amounts: Total Water Internal Proprietary Source Airport Transit Sanitation and Sewer Service Funds Government - fixed assets $ - $ 23,263 $ - $ 98,041 $ 253,214 $ 374,518 Developers - fixed assets - - - 107,666 - 107,666 Total additions - 23,263 - 205,707 253,214 482,184 Contributed capital, October 1 , 1987 2,277,385 795,482 2,907,626 15,779,488 11 ,806,904 33,566,885 w co Contributed capital, September 30, 1988 $2,277,385 $818,745 $2,907,626 $15,985,195 $12,060,118 $34,049,069 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 21 - COMMITMENTS AND CONTINGENCIES Litigation The City is a defendant in numerous lawsuits. The ultimate liability of the City cannot be determined at this time, although City management believes such liability 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 $2,986,413 at September 30, 1988. This accrual is recorded in the General Long-Term Debt account group, except for $100,000 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 is funded jointly by the City and the retirees. The City's portion of these costs is recognized as expense when paid. For the fiscal year ended September 30, 1988, these costs totaled $5,888. Workmen's Compensation Claims The City is liable for workmen's compensation claims arising in various General Fund departments of $82,740 as of September 30, 1988. This amount is recorded as a liability in the General Long-Term Debt account group. The City is also liable for workmen's compensation claims arising in the enterprise funds of $4,544 as of September 30, 1988. This amount is not recorded as a liability in the enterprise funds. All payments made as a result of these claims are charged to an expense account in the respective enterprise fund. 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 (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. 39 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 21 - COMMITMENTS AND CONTINGENCIES (CONT'D.) Contract Commitment With West Texas Utilities Company (Cont'd.) The significant terms of the contract provide for standby charges to be paid to the City and the Wichita County Water Improvement District Number 2 in equal amounts. The City received $150,000 annually from the date of this contract through December 31 , 1986. Minimum annual charges were scheduled to begin when water was actually con- sumed for the production of electricity upon completion of the first genera- tion unit or January 1 , 1987, whichever was sooner. On January 1 , 1987, minimum annual charges began and shall continue as follows: City's Years Ending December 31 : Annual Share 1988-1991 $250,000 1992-1996 375,000 1997 and all years thereafter until end of contract 500,000 For water actually consumed, the Company shall pay the City and Wichita County Water Improvement District Number 2 equally, at the Base Rate of twenty-three ($.23) cents per one thousand (1 ,000) gallons, which can be adjusted annually. This contract can be terminated at any time by the Company. If the contract `1 is terminated, the Company is required to make a maximum termination payment Iequal to the minimum charges which would have become due and payable during the following twenty-four month period. Contract Commitment With Army Corps of Engineers On June 13, 1987, the City entered into a construction contract with the Army Corps of Engineers to provide flood protection to the City of Wichita Falls and surrounding vicinity. This flood protection is to be attained by increasing the flood control capabilities in the Holliday Creek area and by modifying the existing Lake Wichita Dam. As of September 30, 1988, the total project costs under this contract were estimated to be $47,610,000. The City must provide a 5 percent cash contribution in proportion to the rate of federal expenditures incurred during the construction period. This required contribution is presently estimated to be $2,380,500. Additionally, the City must provide all land, easements, rights-of-way, and waste material disposal 40 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 21 - COMMITMENTS AND CONTINGENCIES (CONT'D.) Contract Commitment With Army Corps of Engineers (Cont'd.) areas, and perform all relocations necessary to complete the project. If the value of the above-mentioned contributions is determined to be less than 25 percent of the total project costs, the City must make an additional cash contribution to make its total contribution equal to 25 percent of the total project costs. The City has incurred a total of $4,385,956 in project costs as of September 30, 1988. The City is also responsible for the estimated $4,500,000 of costs necessary to modify the existing Lake Wichita Dam. These projects are estimated to be completed during the fiscal year ending September 30, 1993. Construction Contracts At September 30, 1988, several long-term construction contracts were out- standing in which the City has committed to but has not accrued any expendi- tures or expense as the work has not yet been performed. The amounts for which the various funds are committed to complete these contracts are as follows: General Fund $ 435,955 Special Revenue Funds: Civic Community Promotion Fund $ 36,662 Federal Revenue Sharing Fund 258,133 Total Special Revenue Funds 294,795 Capital Projects Fund: 1985 Holliday Creek Project 2,600,151 Enterprise Funds: Airport Fund $ 60,403 Sanitation Fund 250,519 Water and Sewer Fund 3,831 ,549 Total Enterprise Funds 4,142,471 Trust and Agency Fund: Wichita Falls Reinvestment Zone #1 38,100 Total contract commitments $7,511 ,472 41 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30, 1988 Note 21 - COMMITMENTS AND CONTINGENCIES (CONT'D.) Federally Assisted Programs - Compliance Audits The City participates in numerous Federally assisted programs, on both a direct and state pass-through basis, as well as on a service-provider basis. Principal among these are Federal Revenue Sharing, Community Development Block Grants, and Section 8 Housing Assistance. 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 regu- lations. 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 disallow- ance of claimed expenditures, the City expects the resulting liability to be immaterial. Note 22 - SUBSEQUENT EVENT On December 8, 1988, the City Council authorized the City to file an appli- cation with the Texas Water Development Board for a low interest revolving fund loan in the amount of $21 ,500,000. The proceeds from this loan will be used for sewer treatment plant renovation and expansion and the installation of a large capacity sewage collection interceptor line. On December 15, 1988, the City was informed that their application had been approved for $14,300,000, with subsequent funding to be made available upon additional analysis by the Texas Water Development Board. 42 REQUIRED SUPPLEMENTARY INFORMATION EXHIBIT B-1 CITY OF WICHITA FALLS, TEXAS DEFINED CONTRIBUTION PENSION PLAN - ANALYSIS OF FUNDING PROGRESS - LAST TEN PLAN YEARS (UNAUDITED) (6) (4) Unfunded Pension ( 1 ) (3) Unfunded (5) Benefit Obligation Net Assets (2) Percentage Pension Benefit Annual as a Percentage Plan Available Pension Benefit Funded Obligation Covered of Covered Payroll Year For Benefits* Obligation ( 1 ) + (2) (2) - (1 ) Payroll (4) - (5) 1978 $ 6,465,848 $ 7,326,940 88.2% $ 861 ,092 $ 7,953,297 10.8% 1979 7,439,301 8,350,527 89.1% 911 ,226 9,197,671 9.9% 1980 8,608,043 9,472,370 90.9% 864,327 10,770,238 8.0% 1981 10,076,953 10,893,004 92.5% 816,051 11 ,865,120 6.9% 1982** 11 ,239,691 12,816,960 87.7% 1 ,577,269 13,340,527 11 .8% 1983 12,944,791 15,224,110 85.0% 2,279,319 13,882,452 16.4% 1984 14,902,005 18,130,886 82.2% 3,228,881 14,185,255 22.8% 1985 17,136,495 21 ,280,661 80.5% 4,144,166 15,040,953 27.6% L"' 1986 19,097,798 23,567,091 81 .0% 4,469,293 15,593,759 28.7% 1987 21 ,932,183 27,236,608 80.5% 5,304,425 16,147,248 32.9% Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and un- funded pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation 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 pension benefit obligation and annual covered payroll are both affected by infla- tion. Expressing the unfunded pension benefit obligation 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. * At book value (See Note 10. ) ** During 1982, plan benefit provisions were amended to retroactively increase prior service credits. This amendment had the effect of increasing the pension benefit obligation in 1982 by approximately $537,000. EXHIBIT B-2 CITY OF WICHITA FALLS, TEXAS DEFINED CONTRIBUTION PENSION PLAN - REVENUES BY SOURCE AND EXPENSES BY TYPE - LAST TEN PLAN YEARS (UNAUDITED) Revenues By Source Plan Employee Employer Investment Year Contributions Contributions Income Total 1978 $434,071 $361 ,875 $ 418,667 $1 ,214,613 1979 505,439 430,451 480,018 1 ,415,908 1980 591 ,618 497,585 624,517 1 ,713,720 1981 654,082 544,609 867,441 2,066,132 1982* 739,073 606,994 1 ,031 ,285 2,377,352 1983 775,615 656,640 1 ,206,394 2,638,649 1984 793,676 723,448 1 ,419,569 2,936,693 1985 834,538 804,691 1 ,622,861 3,262,090 1986 864,846 904,438 1 ,857,101 3,626,385 1987 894,829 962,376 2, 101 ,277 3,958,482 Expenses By Type Plan Administrative Year Benefits Expenses Refunds Total 1978 $ 147,709 $16,571 $253, 153 $ 417,433 1979 147,497 16,719 278,239 442,455 1980 263,686 16,510 264,782 544,978 1981 237,762 16,319 343,141 597,222 1982* 910,482 17,199 286,933 1 ,214,614 1983 703,408 19,047 211 ,094 933,549 1984 631 ,461 18,363 329,655 979,479 1985 587,605 19,700 420,295 1 ,027,600 1986 1 ,298,548 19,639 346,895 1 ,665,082 1987 787,943 20,479 315,675 1 ,124,097 Contributions were made in accordance with actuarially-determined contribution requirements. * See note on page 43 for a discussion of the 1982 change in employee benefit provisions. 44 I THIS PAGE IS INTENTIONALLY LEFT BLANK. COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS THIS PAGE IS INTENTIONALLY LEFT BLANK. GENERAL FUND The General Fund is used to account for all revenues and expenditures not accounted for in other funds. It receives a greater variety and amount of revenues and finances a wider range of governmental activ- ities 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. THIS PAGE IS INTENTIONALLY LEFT BLANK. EXHIBIT C-1 CITY OF WICHITA FALLS, TEXAS GENERAL FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1988 AND 1987 1988 1987 ASSETS Cash and short-term investments $10, 192,969 $10,213,556 Receivables: Taxes and assessments (less $631 ,824 and $573,499 allowance for uncollectible accounts) 1 ,184,866 1 ,250,327 Other City funds - 2,956 Government agencies 573,225 599,326 Other 224,251 186,758 Inventory 27,790 23,805 Prepaid items 34,825 77,017 Restricted assets: Receivable from government agencies 135,943 195,474 Other assets 188 - Total assets $12,374,057 $12,549,219 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ 617,737 $ 503,074 Accrued payroll 197,219 696,762 Accrued vacation and sick leave 100,000 100,000 Payable to other City funds 1 ,341 160 Payable to government agencies 27,300 43,211 Other liabilities 485,831 481 ,809 Deferred revenue 1 , 133,925 1 , 159,749 Total liabilities 2,563,353 2,984,765 Fund balance: Reserved for encumbrances 637,497 698,254 Reserved for inventory and prepaid items 62,615 100,822 Unreserved: Designated for subsequent years expenditures 1 ,750,000 1 ,500,000 Undesignated 7,360,592 7,265,378 Total fund balance 9,810,704 9,564,454 Total liabilities and fund balance $12,374,057 $12,549,219 45 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, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Revenues: Taxes: Ad valorem taxes $12,603,897 $12,723,158 $ 119,261 $12,434,185 Penalties and interest 160,000 ' 217,639 57,639 174,211 City sales tax 6,400,000 6,225,015 ( 174,985) 6,012,230 Franchise taxes 2,780,000 2,768,262 ( 11 ,738) 2,660,813 Other taxes 219,000 261 ,644 42,644 217,279 Total taxes 22, 162,897 22, 195,718 32,821 21 ,498,718 Charges for services: Golf, tennis and recreation fees 84,520 72,489 ( 12,031 ) 61 ,895 Tax collection fees 105,000 97,568 ( 7,432) 113,288 Other service charges 1 ,077,380 1 , 125,572 48, 192 989,484 Total charges for services 1 ,266,900 1 ,295,629 28,729 1 , 164,667 Licenses and permits: Building permits 106,000 301 ,119 195, 119 78,530 Electrical and plumbing 100,000 72,678 ( 27,322) 57,967 Health and animal control 150,700 155,959 5,259 156,233 Other licenses and permits 65,820 69, 159 3,339 60,949 Total licenses and permits 422,520 598,915 176,395 353,679 Fines: Municipal Court 830,950 863,347 32,397 819,038 Library 22,000 22,458 458 21 ,429 Total fines 852,950 885,805 32,855 840,467 Intergovernmental revenue: Operating grants 498,613 472,868 ( 25,745) 478,051 Wichita Falls School District 231 ,788 231 ,319 ( 469) 163,898 Total intergovernmental revenue 730,401 704, 187 ( 26,214) 641 ,949 46 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, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Revenues (Cont'd. ) : Miscellaneous revenue: Parking meters 4,000 4,022 22 4,120 Rentals and concessions 108,728 98,737 ( 9,991 ) 98,087 Interest 757,000 1 , 165,761 408,761 852,928 Sale of fixed assets 14,200 28,565 14,365 18,002 Other 55,550 49,068 ( 6,482) 107,616 Total miscellaneous revenue 939,478 1 ,346, 153 406,675 1 ,080,753 Total revenues 26,375, 146 27,026,407 651 ,261 25,580,233 Expenditures: Administrative services division: Mayor and Board of Aldermen 42,840 42,216 624 32,421 City Manager 286,270 285,934 336 309,529 Legal 292,996 292,986 10 262,589 Personnel 347, 175 299,796 47,379 249,719 City Clerk 78,332 78,267 65 73,376 Martin Luther King Center 149,820 149,800 20 145,693 Farmer's Market 28,380 26,675 1 ,705 28,565 Library 460,996 449,703 11 ,293 361 ,438 Property Management 47,590 47,588 2 48,276 Data Processing 894,178 885,906 8,272 887,832 Community Information 99,555 99,548 7 80,265 Nondepartmental 2, 123,237 1 ,449,709 673,528 1 ,852,248 Municipal Court 310, 147 308,906 1 ,241 300,304 Building Maintenance 372,446 372,220 226 339,989 Purchasing 49,598 49,318 280 61 ,587 Total administrative services division 5,583,560 4,838,572 744,988 5,033,831 Police division: Police 7,703,280 7,578,322 124,958 7,242,687 47 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, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Expenditures (Cont'd. ) : Fire division: Fire 5,129,239 5,096,563 32,676 4,844,086 Parks and recreation division: Recreation 705,919 697,644 8,275 714,060 Park maintenance 2,352,178 2,324,550 27,628 2,041 ,095 Cemetery 181 ,311 170, 193 11 , 118 173, 191 Total parks and recreation division 3,239,408 3, 192,387 47,021 2,928,346 Accounting/finance division: Accounting/finance 266,690 263,841 2,849 266,776 Tax 169,761 168,936 825 141 ,213 Total accounting/ finance division 436,451 432,777 3,674 407,989 Planning division: Planning 349,481 336,317 13, 164 269,662 Public works division: Engineering 1 ,328,041 1 ,233,937 94,104 1 ,173,811 Inspection 752,525 749,135 3,390 732, 155 Street 3,236, 140 3,217,777 18,363 3,327,705 Total public works division 5,316,706 5,200,849 115,857 5,233,671 Health division: Administration 329,581 323,499 6,082 312,499 Nursing 692,221 648,832 43,389 800,642 Air and water pollution 177,141 177,133 8 154,867 Laboratory 105,464 97,253 8,211 104,377 General environment 144,912 140,765 4, 147 131 ,663 Food and vector control 295,835 268,050 27,785 268,960 Animal control 186,045 181 ,316 4,729 166,242 Total health division 1 ,931 , 199 1 ,836,848 94,351 1 ,939,250 48 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, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Expenditures (Cont'd. ) : Traffic and transportation division: Traffic engineering 1 ,298,975 1 ,217,950 81 ,025 1 ,272,929 Parking meters - - - 23,545 Total traffic and transportation division 1 ,298,975 1 ,217,950 81 ,025 1 ,296,474 Total expenditures 30,988,299 29,730,585 1 ,257,714 29,195,996 Excess of revenues over (under) expenditures ( 4,613,153) ( 2,704,178) 1 ,908,975 ( 3,615,763) Other financing sources (uses) : Operating transfers in 942,704 942,704 - 940,703 Operating transfers out - - - ( 207,718) Contributions from operating grants 2,007,724 2,007,724 - 1 ,833,286 Total other financing sources (uses) 2,950,428 2,950,428 - 2,566,271 Excess of revenues and other sources over (under) expenditures and other uses ($ 1 ,662,725) 246,250 $1 ,908,975 ( 1 ,049,492) Fund balance - beginning 9,564,454 10,613,946 Fund balance - ending $ 9,810,704 $ 9,564,454 49 THIS PAGE IS INTENTIONALLY LEFT BLANK. SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to be expended for specified purposes. Seven individual funds are reported within the Special Revenue Funds as follows: Revenue Sharing Fund The Revenue Sharing Fund accounts for all federal revenue sharing receipts and related expenditures. Civic/Community Promotion Fund The Civic/Community Promotion Fund accounts for the operations of the Wichita Falls Municipal Auditorium and the Wichita Falls Activity Center. 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. Community Development Block Grant Fund The Community Development Block Grant Fund accounts for federal grant revenues and related expenditures. Special Revenue Fund The 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 desig- nated by the contributor. Section 8 Housing Fund The Section 8 Housing Fund accounts for federal funds received to subsidize rents and housing payments for lower income families within the City. Rental Rehabilitation Program Fund The Rental Rehabilitation Program Fund accounts for federal funds received to provide decent, safe, sanitary and affordable rental housing for lower income families within the City by rehabilitating existing substandard rental units to a condition which brings them into compliance with the Standard Housing Code and the requirements of the U.S. Department of Housing and Urban Development. EXHIBIT D-1 CITY OF WICHITA FALLS, TEXAS SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1987 Civic/ Hotel/ Community Rental Totals Revenue Community Motel Development Special Section 8 Rehabilitation Sharing Promotion Tax Block Grant Revenue Housing Program 1988 1987 ASSETS Cash and short-term investments $ 665,971 $ 6,618 $ 10,694 $ - $442,680 $ - $ - $1,125,963 $2,103,791 Receivables: Taxes and assessments - - 156,554 - - - - 156,554 148,260 Government agencies - - - 2,011,450 - 263,691 102,996 2,378,137 2,294,687 Other 763 3,443 - - - - - 4,206 40,344 Prepaid items - 105 18.732 - 105,980 - 124,817 113.117 Total assets S 666.734 $10,166 $167,248 $2,030,182 $442,680 $369,671 $102,996 $3,789,677 $4.700,199 LIABILITIES AND FUND BALANCE Liabilities: Bank overdraft $ - $ - $ - $ 109,266 $ - $221,420 $ 1,630 $ 332,316 $ 60,289 Accounts payable - trade 56,170 8,375 - 140,547 7,046 599 9,230 221,967 340,922 CM Accrued payroll - 1,485 - 2,374 - 1,348 - 5,207 15,842 CD Payable to government agencies - - - - - 18,267 - 18,267 85,017 Other liabilities - - - 47,272 193 - - 47,465 85,015 Deferred revenue - - - 87,762 - 87,762 20,640 Total liabilities 56,170 9,860 299.459 7,239 329,396 10,860 712,984 607,725 Fund balance: Reserved for encumbrances 258,133 36,748 - 2,568 7,363 - - 304,812 982,640 Reserved for prepaid items - 105 - 18,732 - 105,980 - 124,817 113,117 Unreserved: Designated for subsequent years expenditures 352,431 - - 1,709,423 428,078 40,275 92,136 2,622,343 2,794,748 Undesignated - ( 36,547) 167,248 - - ( 105,980) - 24,721 201,969 Total fund balance 610,564 306 167,248 1,730.723 435,441 40,275 92,136 3,076,693 4,092,474 Total liabilities and fund balance $ 666.734 $10,166 $167,248 $2.030.182 $442,680 $369,671 $102,996 $3,789,677 $4,700,199 CITY OF WICHITA FALLS, TEXAS EXHIBIT D-2 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 Totals Rental 1988 1987 Civic/ Hotel/ Community Rehabil- Variance - Revenue Community Motel Development Special Section 8 itation Favorable Sharing Promotion Tax Block Grant Revenue Housing Program Actual Budget (Unfavorable) Actual Revenues: Taxes: Hotel/motel tax $ - $ - $584,922 $ - $ - $ - $ - $ 584,922 $ 589,167 (S 4,245) $ 515,220 Penalty and interest - - 2,464 - - - - 2,464 2,000 464 2,423 Total taxes - - 587,386 - - - - 587,386 591,167 ( 3,781) 517,643 Intergovernmental revenue - - - 1,269,000 - 1,367.824 186,661 2,823.485 2.833.446 ( 9,961) 2.413.322 Miscellaneous revenue: Fees and donations - - - - 273,454 - - 273,454 273,454 - 446,283 Rents and concessions - 167,631 - - 8,804 - - 176,435 178,304 ( 1,869) 190,278 Interest 43,452 - 9,174 - 12,200 74 - 64,900 20,433 44,467 126,378 Other - - - 22 332 - - 354 332 22 7.786 Total miscellaneous revenue 43,452 167,631 9,174 22 294,790 74 - 515,143 472,523 42,620 770,725 Total revenues 43,452 167,631 596,560 1,269,022 294,790 1.367.898 186,661 3,926,014 3.897.136 28,878 3,701.690 cri Expenditures: Administrative services division: Personnel services - 141,160 - - - 110,521 - 251,681 285,845 34,164 248,726 Supplies and materials - 18,515 - - 42,390 3,285 - 64,190 139,365 75,175 65,316 Maintenance - 86,686 112,288 - 62,611 76 114,776 376,437 714,985 338,548 358,071 Utilities and other services - 107,202 447.181 - 167,650 1.202.970 1,925.003 2,143,768 218,765 1.604,508 Total administrative services division - 353,563 559.469 - 272,651 1.316.852 114,776 2.617.311 3,283,963 666.652 2.276.621 Capital outlay - 7,613 - - 17,970 10.771 - 36.354 54.389 18,035 157.504 Total expenditures - 361.176 559,469 - 290,621 1.327,623 114,776 2.653.665 3,338,352 684,687 2,434,125 Excess of revenues over (under) expenditures 43,452 ( 193,545) 37,091 1.269,022 4,169 40.275 71,885 1,272,349 558,784 713,565 1.267.565 Other financing sources (uses): Operating transfers in - 193,545 - - - - - 193,545 207,971 ( 14,426) 138,902 Operating transfers out - - ( 193,545) - - - - ( 193,545)( 207,610) 14,065 ( 138,902) Contributions from operating grants ( 844,575) - - ( 1.443,555) - - - ( 2,288,130)( 2.288.130) - ( 2.222.397) Total other financing sources (uses) ( 844,575) 193,545 ( 193,545)( 1,443,555) - - - ( 2.288.130)( 2.287,769) ( 361) ( 2.222,397) Excess of revenues and other financing sources over (under) expenditures and uses ( 801,123) - ( 156,454)( 174,533) 4,169 40,275 71,885 ( 1,015,781)(51.728.985) 1211021 ( 954,832). Fund balance - beginning 1.411.687 306 323,702 1,905,256 431,272 - 20,251 4.092.474 5.047.306 Fund balance - ending 5 610.564 $ 306 $167,248 $1,730.723 5435,441 $ 40,275 $ 92,136 53.076,693 54.092.474 EXHIBIT D-3 CITY OF WICHITA FALLS, TEXAS REVENUE SHARING FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1988 AND 1987 1988 1987 ASSETS Cash and short-term investments $ 665,971 $1 ,408,125 Receivables: Other 763 33,465 Total assets $ 666,734 $1 ,441 ,590 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ 56,170 $ 29,903 Fund balance: Reserved for encumbrances 258,133 444,893 Unreserved: Designated for subsequent years expenditures 352,431 966,794 Total fund balance 610,564 1 ,411 ,687 Total liabilities and fund balance $ 666,734 $1 ,441 ,590 52 EXHIBIT D-4 CITY OF WICHITA FALLS, TEXAS REVENUE SHARING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue $ - $ - $ - $ 21 ,953 Miscellaneous revenue: Interest - 43,452 43,452 82,386 Other - - - 2,455 Total miscellaneous revenue - 43,452 43,452 84,841 Total revenues - 43,452 43,452 106,794 Expenditures - - - - Excess of revenues over (under) expenditures - 43,452 43,452 106,794 Other financing sources (uses) : Contributions from operating grants ( 844,575) ( 844,575) - ( 419,878) Excess of revenues and other sources over (under) expenditures and other uses ($ 844,575) ( 801,123) $ 43,452 ( 313,084) Fund balance - beginning 1 ,411 ,687 1,724,771 Fund balance - ending $ 610,564 $ 1 ,411 ,687 53 EXHIBIT D-5 CITY OF WICHITA FALLS, TEXAS CIVIC/COMMUNITY PROMOTION FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1988 AND 1987 1988 1987 ASSETS Cash and short-term investments $ 6,618 $ 12,157 Receivables: Other 3,443 5,261 Prepaid items 105 299 Total assets $ 10,166 $ 17,717 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ 8,375 $ 12,292 Accrued payroll 1 ,485 5,119 Total liabilities 9,860 17,411 Fund balance: Reserved for encumbrances 36,748 2,955 Reserved for prepaid items 105 299 Unreserved: Undesignated ( 36,547) ( 2,948) Total fund balance 306 306 Total liabilities and fund balance $ 10,166 $ 17,717 54 EXHIBIT D-6 CITY OF WICHITA FALLS, TEXAS CIVIC/COMMUNITY PROMOTION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Revenues: Miscellaneous revenue: Rents and concessions $ 169,500 $ 167,631 ($ 1 ,869) $ 173,608 Total revenues 169,500 167,631 ( 1 ,869) 173,608 Expenditures: Administrative services division: Personnel services 142,153 141 ,160 993 156,406 Supplies and materials 18,945 18,515 430 15,796 Maintenance 126,688 86,686 40,002 35,076 Utilities and other services 108,621 107,202 1 ,419 98,476 Total administrative services division 396,407 353,563 42,844 305,754 Capital outlay 4,363 7,613 ( 3,250) 6,706 Total expenditures 400,770 361 ,176 39,594 312,460 Excess of revenues over (under) expenditures ( 231 ,270) ( 193,545) 37,725 ( 138,852) Other financing sources (uses) : Operating transfers in 207,971 193,545 ( 14,426) 138,902 Excess of revenues and other sources over (under) expenditures and other uses ($ 23,299) - $ 23,299 50 Fund balance - beginning 306 256 Fund balance - ending $ 306 $ 306 55 EXHIBIT D-7 CITY OF WICHITA FALLS, TEXAS HOTEL/MOTEL TAX FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1988 AND 1987 1988 1987 ASSETS Cash and short-term investments $ 10,694 $ 186,687 Receivables: Taxes and assessments 156,554 148,260 Other - 678 Prepaid items - 4,547 Total assets $ 167,248 $ 340, 172 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ - $ 13,264 Other liabilities - 3,206 Total liabilities - 16,470 Fund balance: Reserved for encumbrances - 114,238 Reserved for prepaid items - 4,547 Unreserved: Undesignated 167,248 204,917 Total fund balance 167,248 323,702 Total liabilities and fund balance $ 167,248 $ 340,172 56 EXHIBIT D-8 CITY OF WICHITA FALLS, TEXAS HOTEL/MOTEL TAX FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Revenues: Taxes: Hotel/motel tax $ 589,167 $ 584,922 ($ 4,245) $ 515,220 Penalty and interest 2,000 2,464 464 2,423 Total taxes 591 , 167 587,386 ( 3,781) 517,643 Miscellaneous revenue: Interest 8,233 9,174 941 18,890 Total revenues 599,400 596,560 ( 2,840) 536,533 Expenditures: Administrative services division: Maintenance 114,238 112,288 1 ,950 205,180 Utilities and other services 447,000 447,181 ( 181) 376,961 Total expenditures 561 ,238 559,469 1 ,769 582,141 Excess of revenues over (under) expenditures 38,162 37,091 ( 1 ,071) ( 45,608) Other financing sources (uses) : Operating transfers out ( 207,610) ( 193,545) 14,065 ( 138,902) Excess of revenues and other sources over (under) expenditures and other uses ($ 169,448) ( 156,454) $ 12,994 ( 184,510) Fund balance - beginning 323,702 508,212 Fund balance - ending $ 167,248 $ 323,702 57 EXHIBIT D-9 CITY OF WICHITA FALLS, TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1988 AND 1987 1988 1987 ASSETS Receivables: Government agencies $2,011 ,450 $2,253,205 Prepaid items 18,732 18,000 Total assets $2,030,182 $2,271 ,205 LIABILITIES AND FUND BALANCE Liabilities: Bank overdraft $ 109,266 $ 60,289 Accounts payable - trade 140,547 276,582 Accrued payroll 2,374 7, 188 Other liabilities 47,272 21 ,890 Total liabilities 299,459 365,949 Fund balance: Reserved for encumbrances 2,568 414,074 Reserved for prepaid items 18,732 18,000 Unreserved: Designated for subsequent years expenditures 1 ,709,423 1 ,473,182 Total fund balance 1 ,730,723 1 ,905,256 Total liabilities and fund balance $2,030,182 $2,271 ,205 58 EXHIBIT D-10 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, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue $ 1 ,269,000 $ 1 ,269,000 $ - $ 1 ,263,000 Miscellaneous revenue: Other - 22 22 4,989 Total revenues 1 ,269,000 1 ,269,022 22 1 ,267,989 Expenditures - - - - Excess of revenues over expenditures 1 ,269,000 1 ,269,022 22 1 ,267,989 Other financing sources (uses) : Contributions from operating grants ( 1 ,443,555) ( 1 ,443,555) - ( 1 ,802,519) Excess of revenues and other sources over (under) expenditures and other uses ($ 174,555) ( 174,533) $ 22 ( 534,530) Fund balance - beginning 1 ,905,256 2,460,037 Residual equity transfer - ( 20,251) Fund balance - ending $ 1 ,730,723 $ 1 ,905,256 59 EXHIBIT D-11 CITY OF WICHITA FALLS, TEXAS SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1988 AND 1987 1988 1987 ASSETS Cash and short-term investments $ 442,680 $ 453,554 Receivables: Other - 940 Prepaid items - 80 Total assets $ 442,680 $ 454,574 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ 7,046 $ 6,626 Other liabilities 193 16,676 Total liabilities 7,239 23,302 Fund balance: Reserved for encumbrances 7,363 - Reserved for prepaid items - 80 Unreserved: Designated for subsequent years expenditures 428,078 431 , 192 Total fund balance 435,441 431 ,272 Total liabilities and fund balance $ 442,680 $ 454,574 60 EXHIBIT D-12 CITY OF WICHITA FALLS, TEXAS SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Revenues: Miscellaneous revenue: Fees and donations $ 273,454 $ 273,454 $ - $ 446,283 Rents and concessions 8,804 8,804 - 16,670 Interest 12,200 12,200 - 24,877 Other 332 332 - 342 Total revenues 294,790 294,790 - 488,172 Expenditures: Administrative services division: Personnel services 3,243 - 3,243 - Supplies and materials 114,484 42,390 72,094 46,175 Maintenance 294,648 62,611 232,037 73,222 Utilities and other services 274,683 167,650 107,033 147,096 Total administrative services division 687,058 272,651 414,407 266,493 Capital outlay 36,929 17,970 18,959 144,437 Total expenditures 723,987 290,621 433,366 410,930 Excess of revenues over (under) expenditures ($ 429,197) 4,169 ($ 433,366) 77,242 Fund balance - beginning 431 ,272 354,030 Fund balance - ending $ 435,441 $ 431 ,272 61 EXHIBIT D-13 CITY OF WICHITA FALLS, TEXAS SECTION 8 HOUSING FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1988 AND 1987 1988 1987 ASSETS Cash and short-term investments $ - $ 43,268 Receivables: Government agencies 263,691 21 ,231 Prepaid items 105,980 90, 191 Total assets $ 369,671 $ 154,690 LIABILITIES AND FUND BALANCE Liabilities: Bank overdraft $ 221 ,420 $ - Accounts payable - trade 599 2,255 Accrued payroll 1 ,348 3,535 Payable to government agencies 18,267 85,017 Other liabilities - 43,243 Deferred revenue 87,762 20,640 Total liabilities 329,396 154,690 Fund balance: Reserved for encumbrances - 6,480 Reserved for prepaid items 105,980 90,191 Unreserved: Designated for subsequent years expenditures 40,275 - Undesignated ( 105,980) ( 96,671 ) Total fund balance 40,275 - Total liabilities and fund balance $ 369,671 $ 154,690 62 EXHIBIT D-14 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, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue $ 1,475,446 $ 1 ,367,824 ($ 107,622) $ 1 ,083,869 Miscellaneous revenue: Interest - 74 74 225 Total revenues 1 ,475,446 1 ,367,898 ( 107,548) 1 ,084,094 Expenditures: Administrative services division: Personnel services 140,449 110,521 29,928 92,320 Supplies and materials 5,936 3,285 2,651 3,345 Maintenance 2,500 76 2,424 93 Utilities and other services 1 ,313,464 1 ,202,970 110,494 981 ,975 Total administrative services division 1 ,462,349 1 ,316,852 145,497 1 ,077,733 Capital outlay 13,097 10,771 2,326 6,361 Total expenditures 1 ,475,446 1 ,327,623 147,823 1 ,084,094 Excess of revenues over expenditures $ - 40,275 $ 40,275 - Fund balance - beginning - - Fund balance - ending $ 40,275 $ - 63 EXHIBIT D-15 CITY OF WICHITA FALLS, TEXAS RENTAL REHABILITATION PROGRAM FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1988 AND 1987 1988 1987 ASSETS Receivables: Government agencies $102,996 $ 20,251 Total assets $102,996 $ 20,251 LIABILITIES AND FUND BALANCE Liabilities: Bank overdraft $ 1,630 $ - Accounts payable - trade 9,230 - Total liabilities 10,860 - Fund balance: Unreserved: Designated for subsequent years expenditures 92,136 20,251 Total liabilities and fund balance $102,996 $ 20,251 64 EXHIBIT D-16 CITY OF WICHITA FALLS, TEXAS RENTAL REHABILITATION PROGRAM FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMEER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue $ 89,000 $ 186,661 $ 97,661 $ 44,500 Expenditures: Administrative services division: Maintenance 176,911 114,776 62,135 44,500 Excess of revenues over (under) expenditures ($ 87,911) 71 ,885 $ 159,796 - Fund balance - beginning 20,251 - Residual equity transfer - 20,251 Fund balance - ending $ 92,136 $ 20,251 65 THIS PAGE IS INTENTIONALLY LEFT BLANK. DEBT SERVICE FUND The Debt Service Fund, also known as the Interest and Sinking Fund, is established by ordinances authorizing the issuance of general obligation bonds to provide for the payment of bond principal and interest. An ad valorem tax rate and tax levy is 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 SHEET SEPTEMBER 30, 1988 AND 1987 1988 1987 ASSETS Restricted assets: Cash and short-term investments $389,655 5;248,529 Receivables: Taxes (net of allowance for uncollectible taxes of $189,322 and $178,201) 327,611 388,516 Total assets $717,266 $637,045 LIABILITIES AND FUND BALANCE Liabilities payable from restricted assets: Accounts payable - trade $ 370 $ - Deferred revenue 316,473 367,744 Fund balance: Designated for debt service 400,423 269,301 Total liabilities and fund balance $717,266 $637,045 66 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, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 Variance - Favorable 1987 Budget Actual (Unfavorable) Actual Revenues: Taxes: Ad valorem taxes $2,287,502 $ 2,363,809 $ 76,307 $ 2,263,882 Miscellaneous: Interest 5,000 55,931 50,931 48,796 Total revenues 2,292,502 2,419,740 127,238 2,312,678 Expenditures: Principal retirement 605,000 605,000 - 305,000 Interest and paying agent fees 1 ,687,502 1 ,683,618 3,884 1 ,983,420 Total expenditures 2,292,502 2,288,618 3,884 2,288,420 Excess of revenues over expenditures $ - 131,122 $ 131 ,122 24,258 Fund balance - beginning 269,301 245,043 Fund balance - ending $ 400,423 $ 269,301 67 THIS PAGE IS INTENTIONALLY LEFT BLANK. CAPITAL PROJECTS FUNDS The Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds) . The six Capital Projects Funds are as follows: 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 Project This fund was established to account for a single project financed by the 1985 General Obligation Bonds. The project is designed to increase flood control capabilities in the Holliday Creek area. Capital Improvement Assessments This fund was established to account for special assessments which are capital in nature and enhance the utility, accessibility, or aesthetic value of the affected properties. Significant projects accounted for in this fund are streets and sidewalks. EXHIBIT F-1 CITY OF WICHITA FALLS, TEXAS CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1987 1985 1980 1981 1981 1982 Holliday Capital General C.O. General G.O. General General Creek Improvement Totals Improvements Improvements Improvements Improvements Project Assessments 1988 1987 ASSETS Cash and short-term investments $1,215,596 $426,769 $1,800,359 $1,120,593 $6,569,308 $438,668 $11,571,293 $11,858,258 Receivables: Capital improvement assessments - - - - - 454,730 454,730 475,172 Other 1,832 - 2,747 1,679 4,121 - 10,379 153,646 Prepaid items - - - - - - - 26,924 Total assets $1,217,428 $426,769 $1,803,106 $1,122,272 $6,573,429 $893,398 $12,036,402 $12,514,000 O% CO LIABILITIES AND FUND BALANCE Liabilities: Accounts payable - trade $ - $ - $ - $ 77 $ 93,888 $ - $ 93,965 $ 43,675 Other liabilities 4,215 10,000 - 20,218 35,431 4,566 74,430 76,825 Deferred revenue - - - - - 454,730 454,730 475,172 Total liabilities 4,215 10,000 - 20,295 129,319 459,296 623,125 595,672 Fund balance: Reserved for encumbrances - - - - 2,600,151 - 2,600,151 401,597 Unreserved - designated for subsequent years expenditures 1,213,213 416,769 1,803,106 1,101,977 3,843,959 434,102 8,813,126 11,516,731 Total fund balance 1,213,213 416,769 1,803,106 1,101,977 6,444,110 434,102 11,413,277 11,918,328 Total liabilities and fund balance $1,217,428 $426,769 $1,803,106 $1,122,272 $6,573,429 $893,398 $12,036,402 $12,514,000 EXHIBIT F-2 CITY OF WICHITA FALLS, TEXAS CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1985 1980 1981 1981 1982 Holliday Capital General C.O. General G.O. General General Creek Improvement Totals Improvements Improvements Improvements Improvements Project Assessments 1988 1987 Revenues: Miscellaneous: Capital improvement assessments $ - $ - $ - $ - $ - $ 20,530 $ 20,530 $ 20,465 Interest 76,260 16,704 113,480 69,992 421,301 17,857 715,594 687,808 Other - - - - 50,000 - 50,000 2,810 Total revenues 76,260 16,704 113,480 69,992 471,301 38,387 786,124 711,083 Expenditures: Drainage improvements - - - - - - - 18,396 Park improvements - - - 6,520 - - 6,520 14,165 h Central services complex 13,954 - - - - - 13,954 4,158 D Sanitary landfill - - - - - - - 21,233 Library remodeling - - - - - - - 3,557 Softball complex - - - 2,500 - - 2,500 225,308 Holliday Creek improvements - - - - 1,268,201 - 1,268,201 978,324 Total expenditures 13,954 - - 9,020 1,268,201 - 1,291,175 1,265,141 Excess of revenues over (under) expenditures 62,306 16,704 113,480 60,972 ( 796,900) 38,387 ( 505,051) ( 554,058) Fund balance - beginning 1,150,907 400,065 1,689,626 1,041,005 7,241,010 395,715 11,918,328 12,472,386 Fund balance - ending $1,213,213 $416,769 $1,803,106 $1,101,977 $6,444,110 $434,102 $11,413,277 $11,918,328 THIS PAGE IS INTENTIONALLY LEFT BLANK. ENTERPRISE FUNDS Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the governing body is that the cost of providing the service to the general public on a continuing basis be recovered primarily through user charges. The Enterprise Funds include the following: Airport Fund The Airport Fund was established for control of the operating revenue and expenses of the Wichita Falls Municipal Airport. The airport is operated upon land leased from the Department of Defense and commercial aviation shares the facilities and runways of Sheppard Air Force Base. Transit Fund The Transit Fund accounts for the operation of the Wichita Falls Transit System. The system is supported from passenger fees, subsidies from the General Fund and subsidies from the Urban Mass Transportation Administra- tion. Sanitation Fund The Sanitation Fund was established to account for the operating revenue 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. EXHIBIT G-1 CITY OF WICHITA FALLS, TEXAS (Page 1 of 2) ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1987 Water and Totals Airport Transit Sanitation Sewer 1988 1987 ASSETS Current assets: Cash and short-term investments $ 141 ,248 $ - $1 ,635,783 $ 4,816,717 $ 6,593,748 $ 5,506,741 Receivables: Customer and trade 29,237 - 481 ,541 1 ,208,044 1 ,718,822 1 ,751 ,576 Government agencies - 186,615 - - 186,615 158,815 Other - - 4,017 40,629 44,646 86,051 Inventory - - - 562,097 562,097 499,908 Prepaid items 30 275 1 ,934 6,100 8,339 3,357 o Total current assets 170,515 186,890 2,123,275 6,633,587 9,114,267 8,006,448 Restricted assets: Cash and short-term investments - - - 9,249,344 9,249,344 9,805,731 Other - - - 142,181 142,181 110,376 Total restricted assets - - - 9,391 ,525 9,391 ,525 9,916,107 Plant and equipment: Land and betterments 1 ,468,175 61 ,925 653,692 22,389,612 24,573,404 24,459,843 Buildings, systems and improvements 1 ,451 ,662 626,868 2,298,370 57,117,339 61 ,494,239 56,425,159 Machinery and equipment 13,608 67,822 95,660 2,502,648 2,679,738 2,622,264 Furniture and fixtures 11 ,937 6,128 4,750 23,641 46,456 52,947 Motor vehicles and equipment - - - 3,670 3,670 4,470 Construction in progress - - - 9,446,967 9,446,967 10,257,744 2,945,382 762,743 3,052,472 91 ,483,877 98,244,474 93,822,427 Less accumulated depreciation ( 988,329) ( 65,905) ( 348,193) ( 29,437,084) ( 30,839,511) ( 29,200,020) Total plant and equipment 1 ,957,053 696,838 2,704,279 62,046,793 67,404,963 64,622,407 Other assets: Deferred charges - - - 658,130 658,130 698,367 Total assets $2,127,568 $883,728 $4,827,554 $78,730,035 $86,568,885 $83,243,329 • EXHIBIT G-1 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET (CONT'D.) SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1987 Water and Totals Airport Transit Sanitation Sewer 1988 1987 LIABILITIES AND FUND EQUITY Current liabilities payable from current assets: Bank overdraft $ - $187,342 $ - $ - $ 187,342 $ 157,212 Accounts payable - trade 3,531 9,823 51,096 654,531 718,981 398,444 Accrued payroll 976 16,019 76,092 144,935 238,022 361,280 Government agencies 1,506 - - - 1,506 - Other liabilities 49 - 7,065 173,444 180,558 72,226 Total current liabilities payable from current assets 6,062 213,184 134,253 972,910 1,326,409 989,162 Current liabilities payable from restricted assets: Contracts and trade - - - 765 765 257,041 v Revenue bonds - current maturities - - - 600,000 600,000 575,000 J Accrued interest - revenue bonds - - - 308,558 308,558 313,829 Matured bonds and interest payable - - - 3,000 3,000 3,000 Deferred revenue - - - 108,000 108,000 - Total current liabilities payable from restricted assets - - - 1,020,323 1,020,323 1,148,870 Long-term liabilities: Payable to U.S. Government - - - 1,093,040 1,093,040 1,108,940 Revenue bonds, less current maturities - - - 22,835,000 22,835,000 23,435,000 Total long-term liabilities - - - 23,928,040 23,928,040 24,543,940 Long-term liabilities payable from restricted assets: Customer deposits - - - 984,753 984,753 922,085 Total liabilities 6,062 213,184 134,253 26,906,026 27,259,525 27,604,057 • Fund equity: Contributed capital 2,277,385 818,745 2,907,626 15,985,195 21,988,951 21,759,981 Retained earnings: Reserved for revenue bond • debt service - - - 2,905,568 2,905,568 2,867,634 Unreserved ( 155,879) ( 148,201) 1,785,675 32,933,246 34,414,841 31,011,657 Total retained earnings (deficit) ( 155,879) ( 148,201) 1,785,675 35,838,814 37,320,409 33,879,291 Total fund equity 2,121,506 670,544 4,693,301 51,824,009 59,309,360 55,639,272 Total liabilities and fund equity $2,127,568 $883,728 $4,827,554 $78,730,035 $86,568,885 $83,243,329 THIS PAGE IS INTENTIONALLY LEFT BLANK. EXHIBIT G-2 CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 Water and Totals Airport Transit Sanitation Sewer 1988 1987 Operating revenues: Charges for services $ 21,936 $145,453 $4,715,029 $12,777,128 $17,659,546 $16,505,890 Rents, concessions and other 160,023 - 1,104 165,330 326,457 266,333 Total operating revenues 181,959 145,453 4,716,133 12,942,458 17,986,003 16,772,223 Operating expenses: Personnel services 27,784 322,434 1,650,191 2,924,221 4,924,630 4,806,459 Supplies and materials 408 49,847 16,196 585,349 651,800 587,370 Maintenance and repairs 57,526 51,242 2,145,352 2,761,337 5,015,457 5,277,669 Utilities and other services 93,375 30,209 197,914 1,984,677 2,306,175 2,183,204 Insurance and contract support 3,651 22,155 196,360 292,747 514,913 620,629 Depreciation and amortization 91,528 14,670 57,125 1,529,299 1,692,622 1,587,638 Total operating expenses 274,272 490,557 4,263,138 10,077,630 15,105,597 15,062,969 Operating income (loss) ( 92,313) ( 345,104) 452,995 2,864,828 2,880,406 1,709,254 Non-operating revenues (expenses) : v N Interest income 119 - 104,224 866,509 973,852 1,033,355 Gain (loss) on sale of assets - ( 329) - ( 1,435) ( 1,764) ( 7,177) Litigation proceeds - - - 423,709 423,709 - Interest expense and paying agent fees - - - ( 716,105) ( 716,105) ( 79,297) Contributions from operating grants - 163,351 - 122,715 286,066 340,170 Total non-operating revenues (expenses) 119 163,022 104,224 695,393 962,758 1,287,051 Income (loss) before operating transfers ( 92,194) ( 182,082) 557,219 3,560,221 3,843,164 2,996,305 Operating transfers: Operating transfers in 60,403 167,821 - - 228,224 207,718 Operating transfers out - - ( 380,692) ( 249,578) ( 630,270) ( 630,600) Net operating transfers 60,403 167,821 ( 380,692) ( 249,578) ( 402,046) ( 422,882) Net income (loss) ( 31,791) ( 14,261) 176,527 3,310,643 3,441,118 2,573,423 Retained earnings (deficit) - beginning ( 124,088) ( 133,940) 1,609,148 32,528,171 33,879,291 31,310,541 Residual equity transfer to Internal Service Fund - - - - - ( 4,673) Retained earnings (deficit) - ending ($ 155,879) ($148,201) $1,785,675 $35,838,814 $37,320,409 $33,879,291 EXHIBIT G-3 (Page 1 of 2) CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 Water and Totals Airport Transit Sanitation Sewer 1988 1987 Sources of funds: Net income (loss) ($ 31 ,791) ($ 14,261) $ 176,527 $ 3,310,643 $ 3,441 ,118 $ 2,573,423 Items not requiring (providing) working capital: Depreciation and amortization 91 ,528 14,670 57,125 1 ,529,299 1 ,692,622 1 ,587,638 Loss on sale of assets - 329 - 1 ,435 1 ,764 7,177 Working capital provided (used) by operations 59,737 738 233,652 4,841,377 5, 135,504 4,168,238 Contributed capital - 23,263 - 205,707 228,970 305,502 Customer deposits, net - - - 62,668 62,668 51 ,913 w Transfer of assets to Internal Service Fund - - - - - 4,673 Decrease in restricted assets - - - 524,582 524,582 4,888,501 Total sources of funds 59,737 24,001 233,652 5,634,334 5,951 ,724 9,418,827 Application of funds: Deferred charges - - - - - 9,223 Purchase of fixed assets 4,341 24,001 81 ,944 4,326,419 4,436,705 9,792,703 Retirement of revenue bonds - - - 600,000 600,000 575,000 Payment of U.S. Government obligation - - - 15,900 15,900 15,399 Residual equity transfer to Internal Service Fund - - - - - 4,673 Decrease in current liabilities payable from restricted assets - - - 128,547 128,547 31 , 102 Total application of funds 4,341 24,001 81 ,944 5,070,866 5,181 ,152 10,428,100 Net increase (decrease) in working capital $ 55,396 $ - $ 151 ,708 $ 563,468 $ 770,572 ($ 1 ,009,273) EXHIBIT G-3 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 Water and Totals Airport Transit Sanitation Sewer 1988 1987 Summary of net changes in working capital: Increase (decrease) in current assets: Cash and short-term investments $ 51 ,548 $ - $ 122,035 $ 913,424 $ 1 ,087,007 ($ 1 , 192,536) Receivables: Customer and trade 10,001 - 38,437 ( 81 ,192) ( 32,754) 263,194 Other City funds - - - - - ( 28,885) Government agencies - 27,800 - - 27,800 72,211 v Other ( 5,865) - ( 20,451) ( 15,089) ( 41 ,405) 50,833 Inventory - - - 62,189 62,189 ( 37,782) Prepaid items ( 243) 207 ( 370) 5,388 4,982 3,357 Net increase (decrease) in current assets 55,441 28,007 139,651 884,720 1 ,107,819 ( 869,608) Increase (decrease) in current liabilities: Bank overdraft - 30,130 - - 30,130 105, 192 Accounts payable - trade ( 435) 5,943 26,971 288,058 320,537 ( 2,673) Accrued payroll ( 1,035) ( 8,066) ( 39,028) ( 75,129) ( 123,258) 44,639 Payable to other City funds - - - - - ( 11 ,386) Payable to government agencies 1 ,506 - - - 1 ,506 ( 7,807) Other liabilities 9 - - 108,323 108,332 11 ,700 Net increase (decrease) in current liabilities 45 28,007 ( 12,057) 321 ,252 337,247 139,665 Net increase (decrease) in working capital $ 55,396 $ - $ 151 ,708 $ 563,468 $ 770,572 ($ 1 ,009,273) THIS PAGE IS INTENTIONALLY LEFT BLANK. INTERNAL SERVICE FUND The Internal Service Fund is 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. The City's Internal Service Fund accounts for the costs associated with the operation, maintenance and replacement of the City's vehicle and equipment fleet. Divisions which use the vehicles and equipment are charged a monthly rental fee based upon actual costs of operating each class of vehicle or equipment. EXHIBIT H-1 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30, 1988 AND 1987 1988 1987 ASSETS Current assets: Cash and short-term investments $ 851 ,460 $ 751 ,925 Receivables: Other - 347 Inventory 294,053 331 ,666 Prepaid items 487 717 Total current assets 1 ,146,000 1 ,084,655 Plant and equipment: Land and betterments 433,658 206,769 Buildings, systems and improvements 4,008,948 4,008,948 Furniture and fixtures 5,974 6,234 Motor vehicles and equipment 14,485,375 13,332,988 18,933,955 17,554,939 Less accumulated depreciation ( 7,686,282) ( 6,703,077) Total plant and equipment 11 ,247,673 10,851 ,862 Total assets $12,393,673 $11 ,936,517 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable - trade $ 296,687 $ 261 ,008 Accrued payroll 62,023 86,480 Total current liabilities 358,710 347,488 Fund equity: Contributed capital 12,060, 118 11 ,806,904 Retained deficit ( 25, 155) ( 217,875) Total fund equity 12,034,963 11 ,589,029 Total liabilities and fund equity $12,393,673 $11 ,936,517 75 EXHIBIT H-2 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 1987 Operating revenues: Rents, concessions and other $5,478,984 $5,518,000 Operating expenses: Personnel services 1 ,062,218 1 ,036,512 Supplies and materials 905,319 726,308 Maintenance and repairs 1 ,130,581 1 ,280,355 Utilities and other services 258,202 236,072 Insurance and contract support 2,759 55 Depreciation and amortization 1 ,579,623 1 ,536,084 Total operating expenses 4,938,702 4,815,386 Operating income 540,282 702,614 Non-operating revenues (expenses) : Interest income 7,244 8,288 Gain (loss) on sale of assets ( 42,372) 53,738 Total non-operating revenues (expenses) ( 35,128) 62,026 Income before operating transfers 505,154 764,640 Operating transfers: Operating transfers in - 2,331 Operating transfers out ( 312,434) ( 312,434) Net operating transfers ( 312,434) ( 310,103) Net income 192,720 454,537 Retained deficit - beginning ( 217,875) ( 672,412) Retained deficit - ending ($ 25,155) ($ 217,875) 76 EXHIBIT H-3 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1987 1988 1987 Sources of funds: Net income $ 192,720 $ 454,537 Items not requiring working capital: Depreciation and amortization 1 ,579,623 1 ,536,084 (Gain) loss on sale of assets 42,372 ( 53,738) Working capital provided by operations 1 ,814,715 1 ,936,883 Contributed capital 253,214 112,995 Proceeds from sale of assets 87,885 141 ,373 Total sources of funds 2,155,814 2, 191 ,251 Application of funds: Purchase of fixed assets 2, 105,691 2,083,183 Transfer of assets from Enterprise Funds - 4,673 Transfer of assets from General Fixed Asset Account Group - 3,812 Total application of funds 2,105,691 2,091 ,668 Net increase in working capital $ 50,123 $ 99,583 Summary of net changes in working capital: Increase (decrease) in current assets: Cash and short-term investments $ 99,535 $ 165,781 Receivables - other ( 347) ( 12) Inventory ( 37,613) 39,010 Prepaid items ( 230) ( 702) Net increase in current assets 61 ,345 204,077 Increase (decrease) in current liabilities: Accounts payable - trade 35,679 100,676 Accrued payroll ( 24,457) 6,104 Payable to other City funds - ( 2,286) Net increase in current liabilities 11 ,222 104,494 Net increase in working capital $ 50,123 $ 99,583 77 TRUST AND AGENCY FUNDS Fiduciary Funds account for assets held by the City of Wichita Falls in a trustee capacity or as an agent for other governmental units and/or other funds. Trust and Agency Funds include the following: Employee Benefit Trust This expendable 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. Wichita Falls Reinvestment Zone #1 This expendable trust fund is used to account for ad valorem taxes levied on captured increments of growth in real property values in a designated zone. The tax revenues derived from this increment are to be spent on public improvements within this designated zone. Social Security Fund This agency fund is used to account for the collection and payment of social security (FICA) taxes. 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. Tax Collection Fund This agency fund is used to account for the collection and payment of ad valorem taxes to the City's General and Debt Service Funds, the Wichita Falls Independent School District, and Midwestern State University. Accounts Payable Fund This agency fund is used to account for the collection of monies from the various City funds, and the payment of those monies to vendors for goods and services rendered. Deferred Compensation Fund This agency fund is used to account for contributions made by City employees to a tax deferred savings plan and the subsequent disburse- ment of contributions and interest earned upon retirement, death or termination of employment. EXHIBIT I-1 CITY OF WICHITA FALLS, TEXAS TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1987 Expendable Trust Funds Agency Funds Employee Wichita Falls Totals Benefit Reinvestment Social Tax Accounts Deferred Trust Zone #1 Security Payroll Collection Payable Compensation 1988 1987 ASSETS Cash and short-term investments $169,291 $58,921 $ - $ - $ 66,766 $ - $685,370 $ 980,348 $ 642,817 Receivables: Taxes and assessments - 182 - - 2,675,217 - - 2,675,399 2,744,968 Other City funds - - - - - 1,341 - 1,341 160 Other 125 - - - - - 125 62,938 Total assets $169,416 $59,103 $ - $ $2,741,983 $1,341 $685,370 $3,657,213 $3,450,883 v 02 LIABILITIES AND FUND BALANCE Liabilities: Bank overdraft $ - $ - $ - $ - $ - $1,341 $ - $ 1,341 $ - Accounts payable - trade 74,344 17,019 - - 63,144 - 685,370 839,877 646,558 Payable to other City funds - - - - - - - - 2,956 Payable to government agencies - - - - 2,675,217 - - 2,675,217 2,744,968 Estimated health claims payable 193,027 - - - - - - 193,027 - Other liabilities 420 15 - 3,622 - 4,057 5,157 Total liabilities 267,791 17,034 - 2,741,983 1,341 685,370 3,713,519 3,399,639 Fund balance (deficit): Designated for subsequent years expenditures - 42,069 - - - - - 42,069 51,244 Undesignated ( 98,375) - - - - - - ( 98,375) - Total fund balance (deficit) ( 98,375) 42,069 - - - - - ( 56,306) 51,244 Total liabilities and fund balance $169,416 $59,103 $ - $ - $2,741,983 $1,341 $685,370 $3,657,213 $3,450,883 EXHIBIT I-2 CITY OF WICHITA FALLS, TEXAS EXPENDABLE TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 1988 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1987 Employee Wichita Falls Benefit Reinvestment Totals Trust Zone #1 1988 1987 Revenues: Contributions $1 ,926,449 $ - $1 ,926,449 $2,096,145 Miscellaneous revenue 120 5,224 5,344 230 Total revenues 1 ,926,569 5,224 1 ,931 ,793 2,096,375 Expenditures: Administrative services division: Personnel services 41 ,725 - 41 ,725 22,695 Claims and administrative fees 1 ,958,890 - 1 ,958,890 1 ,992,641 Maintenance and repairs 145 - 145 - Supplies and materials 2,126 416 2,542 702 Utilities and other services 68,569 22,739 91 ,308 80,337 Capital outlay 4,733 - 4,733 - Total expenditures 2,076, 188 23,155 2,099,343 2,096,375 Excess of revenues over (under) expenditures ( 149,619) ( 17,931 ) ( 167,550) - Other financing sources (uses) : Operating transfers in - 60,000 60,000 - Excess of revenues and other financing sources over (under) expenditures and uses ( 149,619) 42,069 ( 107,550) - Fund balance - beginning 51 ,244 - 51 ,244 51 ,244 Fund balance (deficit) - ending ($ 98,375) $42,069 ($ 56,306) $ 51 ,244 79 EXHIBIT I-3 (Page 1 of 3) CITY OF WICHITA FALLS, TEXAS AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED SEPTEMBER 30, 1988 Balance Balance October 1 , September 30, 1987 Additions Deductions 1988 SOCIAL SECURITY FUND ASSETS Cash and short-term investments $ - $ 2,988,327 $ 2,988,327 $ - Receivables: Other City funds - 2,942,872 2,942,872 - Government agencies - 45,813 45,813 - Total assets $ - $ 5,977,012 $ 5,977,012 $ - LIABILITIES Accounts payable - trade $ - $ 2,784,988 $ 2,784,988 $ - Payable to other City funds - 2,784,988 2,784,988 - Total liabilities $ - $ 5,569,976 $ 5,569,976 $ - PAYROLL FUND ASSETS Cash and short-term investments $ 892 $24,599,022 $24,599,914 $ - Receivables: Other City funds 160 16,453,624 16,453,784 - Government agencies - 618,455 618,455 - Other - 14,953 14,953 - Total assets $ 1 ,052 $41 ,686,054 $41 ,687,106 $ - LIABILITIES Payable to other City funds $ 1 ,052 $ 1 ,502,165 $ 1 ,503,217 $ - Total liabilities $ 1 ,052 $ 1 ,502,165 $ 1 ,503,217 $ - 80 EXHIBIT I-3 (Page 2 of 3) CITY OF WICHITA FALLS, TEXAS AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1988 Balance Balance October 1 , September 30, 1987 Additions Deductions 1988 TAX COLLECTION FUND ASSETS Cash and short-term investments $ 55,251 $ 34,033,214 $ 34,021 ,699 $ 66,766 Receivables: Taxes and assessments 2,744,968 18,808,728 18,878,479 2,675,217 Total assets $2,800,219 $ 52,841 ,942 $ 52,900,178 $2,741 ,983 LIABILITIES Accounts payable - trade $ 51 ,629 $ 15,562,815 $ 15,551 ,300 $ 63, 144 Payable to government agencies 2,744,968 54,497,572 54,567,323 2,675,217 Payable to other City funds - 15,551 ,300 15,551 ,300 - Other liabilities 3,622 - - 3,622 Total liabilities $2,800,219 $ 85,611 ,687 $ 85,669,923 $2,741 ,983 ACCOUNTS PAYABLE FUND ASSETS Cash and short-term investments $ 1 ,904 $ 61 ,554,232 $ 61 ,556, 136 $ - Receivables: Other City funds - 50,384,003 50,382,662 1 ,341 Total assets $ 1 ,904 $111 ,938,235 $111 ,938,798 $ 1 ,341 LIABILITIES Bank overdraft $ - $ 1 ,341 $ - $ 1 ,341 Payable to other City funds 1 ,904 425,861 427,765 - Total liabilities $ 1 ,904 $ 427,202 $ 427,765 $ 1 ,341 81 EXHIBIT I-3 (Page 3 of 3) CITY OF WICHITA FALLS, TEXAS AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES (CONT'D.) FOR THE YEAR ENDED SEPTEMBER 30, 1988 Balance Balance October 1 , September 30, 1987 Additions Deductions 1988 DEFERRED COMPENSATION FUND ASSETS Cash and short-term investments $ 572, 176 $ 113,194 $ - $ 685,370 Total assets $ 572,176 $ 113, 194 $ - $ 685,370 LIABILITIES Accounts payable - trade $ 572,176 $ 113,194 $ - $ 685,370 Total liabilities $ 572,176 $ 113,194 $ - $ 685,370 TOTALS - ALL AGENCY FUNDS ASSETS Cash and short-term investments $ 630,223 $123,287,989 $123,166,076 $ 752, 136 Receivables: Taxes and assessments 2,744,968 18,808,728 18,878,479 2,675,217 Other City funds 160 69,780,499 69,779,318 1 ,341 Government agencies - 664,268 664,268 - Other - 14,953 14,953 - Total assets $3,375,351 $212,556,437 $212,503,094 $3,428,694 LIABILITIES Bank overdraft $ - $ 1 ,341 $ - $ 1 ,341 Accounts payable - trade 623,805 18,460,997 18,336,288 748,514 Payable to other City funds 2,956 20,264,314 20,267,270 - Payable to government agencies 2,744,968 54,497,572 54,567,323 2,675,217 Other liabilities 3,622 - - 3,622 Total liabilities $3,375,351 $ 93,224,224 $ 93,170,881 $3,428,694 82 SUPPORTING SCHEDULES THIS PAGE IS INTENTIONALLY LEFT BLANK. EXHIBIT J-1 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES SEPTEMBER 30, 1988 Fiscal Year General Obligation Bonds Water and Sewer 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 Total 1989 $ 635,000 $ 1,650,740 $ 2,285,740 $ 600,000 $ 1,851,348 $ 2,451,348 $ 4,737,088 1990 670,000 1,615,815 2,285,815 640,000 1,814,748 2,454,748 4,740,563 1991 710,000 1,575,615 2,285,615 680,000 1,773,788 2,453,788 4,739,403 1992 755,000 1,531,240 2,286,240 725,000 1,728,228 2,453,228 4,739,468 1993 805,000 1,482,165 2,287,165 775,000 1,677,478 2,452,478 4,739,643 1994 860,000 1,427,827 2,287,827 835,000 1,621,678 2,456,678 4,744,505 1995 920,000 1,367,627 2,287,627 895,000 1,559,888 2,454,888 4,742,515 1996 985,000 1,300,927 2,285,927 960,000 1,491,868 2,451 ,868 4,737,795 1997 1,060,000 1,227,052 2,287,052 1,035,000 1,416,987 2,451,987 4,739,039 1998 1,140,000 1,145,963 2,285,963 1 ,120,000 1,335,222 2,455,222 4,741,185 1999 1,230,000 1,057,043 2,287,043 1,210,000 1,245,622 2,455,622 4,742,665 2000 1,330,000 959,873 2,289,873 1,305,000 1,148,217 2,453,217 4,743,090 2001 1,435,000 853,473 2,288,473 1,410,000 1,042,512 2,452,512 4,740,985 2002 1,550,000 737,955 2,287,955 1,525,000 928,302 2,453,302 4,741,257 OD 2003 1,670,000 613,180 2,283,180 1,650,000 803,252 2,453,252 4,736,432 4'4 2004 1,805,000 477,910 2,282,910 1,785,000 667,952 2,452,952 4,735,862 2005 1,955,000 331,705 2,286,705 1,930,000 520,690 2,450,690 4,737,395 2006 2,115,000 172,373 2,287,373 2,090,000 361,465 2,451,465 4,738,838 2007 - - - 2,265,000 187,995 2,452,995 2,452,995 $21,630,000 $19,528,483 $41,158,483 $23,435,000 $23,177,240 $46,612,240 $87,770,723 EXHIBIT J-2 (Page 1 of 2) CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE SEPTEMBER 30, 1988 Final Annual Bonds Interest Rates Issue Maturity Serial Retired or and (Dates) Date Date Payments Authorized Issued Refunded Outstandini General obligation bonds: General Obligation Refunding Bonds, Series 1986 5.0, 5.25, 5.5, 6.0, 7/01/86 9/01/06 305,000 (1987) $22,540,000 $22,540,000 $ 910,000 $21,630,000 6.25, 6.5, 6.75, 7.0, 605,000 (1988) 7.25, 7.5, 7.65, 7.8, 635,000 (1989) 7.9, 8.0, 8.05, 8.1, 670,000 (1990) 8.15 710,000 (1991) (3/1, 9/1) 755,000 (1992) 805,000 (1993) 860,000 (1994) 920,000 (1995) 985,000 (1996) 1 ,060,000 (1997) ce► 1,140,000 (1998) 1,230,000 (1999) 1,330,000 (2000) 1,435,000 (2001) 1,550,000 (2002) 1,670,000 (2003) 1,805,000 (2004) 1,955,000 (2005) 2,115,000 (2006) Total general obligation bonds 22,540,000 22,540,000 910.000 21,630,000 EXHIBIT J-2 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.) SEPTEMBER 30, 1988 Final Annual Bonds Interest Rates Issue Maturity Serial Retired or and (Dates) Date Date Payments Authorized Issued Refunded Outstanding Revenue bonds: Water and Sewer System Refunding Revenue Bonds, Series 1986 5.0, 5.5, 6.1, 6.4, 7/01/86 8/01/07 395,000 (1987) 24,405,000 24,405,000 970,000 23,435,000 6.7, 7.0, 7.2, 7.4, 575,000 (1988) 7.6, 7.8, 7.9, 8.0, 600,000 (1989) 8.05, 8.1 , 8.2, 8.25, 640,000 (1990) 8.3 680,000 (1991) (2/1 , 8/1) 725,000 (1992) 775,000 (1993) 835,000 (1994) 895,000 (1995) 960,000 (1996) 1 ,035,000 (1997) co 1,120,000 (1998) 1,210,000 (1999) 1,305,000 (2000) 1,410,000 (2001) 1,525,000 (2002) 1,650,000 (2003) 1,785,000 (2004) 1,930,000 (2005) 2,090,000 (2006) 2,265,000 (2007) Total revenue bonds 24,405,000 24,405,000 970,000 23,435,000 Total all bonds $46,945,000 $46,945,000 $ 1,880,000 $45,065,000 EXHIBIT J-3 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE COVERAGE - REVENUE BONDS SEPTEMBER 30, 1988 Water and Sewer Revenue Bonds: Net income (Exhibit G-2) $ 3,310,643 Add: Revenue bond interest expense and paying agent fees $ 716,105 Depreciation and amortization 1 ,529,299 Operating transfers out 249,578 2,494,982 Net earnings for determining debt service coverage $ 5,805,625 Total principal and interest requirements $46,612,240 Number of years remaining to pay bonds — 19 Average annual principal and interest requirement $ 2,453,276 Average annual debt service coverage 2.37 Maximum principal and interest requirement $ 2,456,678 Maximum debt service coverage 2.36 86 EXHIBIT J-4 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCES SEPTEMBER 30, 1988 AND 1987 1988 1987 General Fixed Assets: Land and betterments $14,327,189 $14,311 ,189 Buildings and improvements 14,159,440 13,919,186 Machinery and equipment 3,411 ,385 3,143,900 Furniture and fixtures 461 ,194 735,666 Motor vehicles and equipment 124,805 150,555 Construction in progress 694,263 785,994 Total general fixed assets $33, 178,276 $33,046,490 Investment in General Fixed Assets: From general obligation bonds $ 734,066 $ 734,066 From local revenues and contributions 3,468,170 3,021 ,443 From federal government contributions 2,152,096 2,071 ,224 From unidentified sources 26,823,944 27,219,757 Total investment in general fixed assets $33, 178,276 $33,046,490 87 EXHIBIT J-5 CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY SOURCES FOR THE YEAR ENDED SEPTEMBER 30, 1988 Motor Buildings Machinery Furniture Vehicles Land and and and and and Construction Total Betterments Improvements Equipment Fixtures Equipment In Progress General fixed assets, October 1 , 1987 $33,046,490 $14,311 , 189 $13,919, 186 $3, 143,900 $735,666 $150,555 $785,994 Additions: Expenditures from local revenues and contributions 446,727 16,000 57,913 274,926 5,868 - 92,020 m Expenditures from federal government contributions 80,872 - - 80,872 - - - Completed construction projects -0- - 183,751 - - - ( 183,751 ) Total additions 527,599 16,000 241 ,664 355,798 5,868 - ( 91 ,731 ) Total 33,574,089 14,327, 189 14, 160,850 3,499,698 741 ,534 150,555 694,263 Deductions: Assets sold, traded or retired 395,813 - 1 ,410 88,313 280,340 25,750 - General fixed assets, September 30, 1988 $33, 178,276 $14,327, 189 $14, 159,440 $3,411 ,385 $461 , 194 $124,805 $694,263 CITY OF WICHITA FALLS, TEXAS EXHIBIT J-6 GENERAL FIXED ASSETS SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY SEPTEMBER 30, 1988 Motor Buildings Machinery Furniture Vehicles Land and and and and and Construction Total Betterments Improvements Equipment Fixtures Equipment In Progress Administrative services division: Mayor and City Council $ 12,863 $ - $ - $ 7,645 5 5,218 $ - $ - General Administration 1,881,382 1,290,216 336,872 100,966 42,963 110,365 - Legal and City Clerk 23,800 - - 11,633 12,167 - - Personnel/Risk Management 26,475 - - 17,843 8,632 - - Data Processing 706,593 - - 689,881 16,712 - - Martin Luther King Center 372,042 - 349,839 6,259 15,944 - - Library 940,062 610,870 272,051 8,189 48,952 - - Municipal Court 573,681 230,000 312,788 11,793 19,100 - - Farmer's Market 946 - - - 946 - - Building Maintenance 15,153 - - 10,659 4,494 - - Purchasing 4,420 - - 2,700 1,720 - - Midtown 2000 418,578 233,798 184,780 - - - - Auditorium/Activity Center 6,521,616 434,422 5,940,057 74,580 72,557 - - Community Development 84.964 78.358 6,269 337 - - - Total administrative services division 11,582.575 2,877,664 7.402.656 942,485 249,405 110,365 - Police division: Police 4,425.365 1,095,114 1.238,558 1.309,798 74,602 13,030 694,263 OD Fire division: MD Fire 2.096.071 188.851 1,515.143 347,037 45,040 - - Parks and recreation division: Parks 12,806,853 9,737,912 2,858,362 201,284 9,295 - - Golf 148,302 112,539 27,544 8,219 - - - Cemetery 24,805 15.212 - 9.593 - - - Total parks and recreation division 12,979,960 9.865.663 2,885.906 219,096 9,295 - - Accounting/finance division: Finance 33,919 - - 17,984 15,935 - - Tax 17.347 - - 11.596 5,751 - - Total accounting/ finance division 51.266 - - 29.580 21,686 Planning division: Planning 81.071 - - 66,418 14,653 - - Public works division: Street Maintenance 191,186 29,937 84,050 71,901 5,298 - - Engineering 297,674 111,120 19,087 154,331 11,726 1,410 - Inspection 59.088 13,059 - 41.943 4,086 - - Total public works division 547,948 154,116 103.137 268.175 21,110 1,410 - Health division: Health 1.285.647 111.231 976.775 179.155 18,486 - Traffic and transportation division: Traffic Engineering 123,264 34,550 37,265 47,873 3,576 - - Parking Meters 5.109 - - 1.768 3,341 - - Total traffic and transportation division 128.373 34.550 37.265 49.641 6.917 - - Total general fixed assets $33,178.276 $14.327.189 $14.159.440 $3.411.385 $461,194 $124,805 $694,263 EXHIBIT J-7 (Page 1 of 2) CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED SEPTEMBER 30, 1988 Beginning Ending Balance Transfers Balance 10/1/87 Additions Deletions In (Out) 9/30/88 Administrative services division: Mayor and City Council $ 12,863 $ - $ - $ - $ 12,863 General Administration 1 ,912,250 31 ,353 26,960 ( 35,261 ) 1 ,881 ,382 Legal and City Clerk 26,706 2,394 - ( 5,300) 23,800 Personnel/Risk Management 21 ,372 6,433 - ( 1 ,330) 26,475 Data Processing 872,473 42,354 196,766 ( 11 ,468) 706,593 Martin Luther King Center 372,042 - - - 372,042 Library 939,494 568 - - 940,062 Municipal Court 570,528 2,380 - 773 573,681 Farmer's Market 946 - - - 946 Building Maintenance 15,153 - - - 15, 153 Purchasing 5,726 1 ,903 837 ( 2,372) 4,420 Midtown 2000 418,578 - - - 418,578 Auditorium/Activity Center 6,590,674 4,359 76,945 3,528 6,521 ,616 Community Development 84,964 - - - 84,964 Total administrative services division 11 ,843,769 91 ,744 301 ,508 ( 51 ,430) 11 ,582,575 Police division: Police 4,243,673 180,562 1 ,070 2,200 4,425,365 Fire division: Fire 1 ,972,971 121 ,578 - 1 ,522 2,096,071 Parks and recreation division: Parks 12,804,869 2,164 1 ,287 1 ,107 12,806,853 Golf 148,302 - - - 148,302 Cemetery 24,805 - - - 24,805 Total parks and recreation division 12,977,976 2, 164 1 ,287 1 , 107 12,979,960 Accounting/finance division: Finance 26,789 4,788 2,546 4,888 33,919 Tax 17,759 - 2,239 1 ,827 17,347 Total accounting/ finance division 44,548 4,788 4,785 6,715 51 ,266 90 EXHIBIT J-7 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS GENERAL FIXED ASSETS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY (CONT'D. ) FOR THE YEAR ENDED SEPTEMBER 30, 1988 Beginning Ending Balance Transfers Balance 10/1/87 Additions Deletions In (Out) 9/30/88 Planning division: Planning 43,721 32,142 - 5,208 81 ,071 Public works division: Street Maintenance 193,210 5,870 3,479 ( 4,415) 191 ,186 Engineering 265,517 32,193 589 553 297,674 Inspection 57,073 1 ,165 - 850 59,088 Total public works division 515,800 39,228 4,068 ( 3,012) 547,948 Health division: Health 1 ,206,952 54,075 10,200 34,820 1 ,285,647 Traffic and transportation division: Traffic Engineering 191 ,971 1 ,318 72,895 2,870 123,264 Parking Meters 5, 109 - - - 5, 109 Total traffic and transportation division 197,080 1 ,318 72,895 2,870 128,373 Total general fixed assets $33,046,490 $ 527,599 $395,813 $ -0- $33,178,276 91 EXHIBIT J-8 CITY OF WICHITA FALLS, TEXAS AIRPORT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1988 Balance Balance 10/1/87 Additions Deletions 9/30/88 Plant and Equipment: Land and betterments $1 ,468,175 $ - $ - $ 1,468,175 Buildings and improvements 1 ,451 ,662 - - 1 ,451 ,662 Machinery and equipment 9,267 4,341 - 13,608 Furniture and fixtures 11 ,937 - - 11 ,937 Total plant and equipment 2,941 ,041 4,341 - 2,945,382 Accumulated Depreciation: Land and betterments 461 ,569 58,893 - 520,462 Buildings and improvements 422,316 30,715 - 453,031 Machinery and equipment 6,206 1 ,096 - 7,302 Furniture and fixtures 6,710 824 - 7,534 Total accumulated depreciation 896,801 91 ,528 - 988,329 Net plant and equipment $2,044,240 ($ 87,187) $ - $ 1 ,957,053 92 EXHIBIT J-9 CITY OF WICHITA FALLS, TEXAS TRANSIT FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1988 Balance Balance 10/1/87 Additions Deletions 9/30/88 Plant and Equipment: Land and betterments $ 39,814 $ 22,111 $ - $ 61 ,925 Buildings and improvements 626,868 - - 626,868 Machinery and equipment 69,203 737 2,118 67,822 Furniture and fixtures 5,456 1 , 153 481 6, 128 Total plant and equipment 741 ,341 24,001 2,599 762,743 Accumulated Depreciation: Buildings and improvements 28,704 7,988 - 36,692 Machinery and equipment 23,064 6,283 2,102 27,245 Furniture and fixtures 1 ,737 399 168 1 ,968 Total accumulated depreciation 53,505 14,670 2,270 65,905 Net plant and equipment $ 687,836 $ 9,331 $ 329 $ 696,838 93 EXHIBIT J-10 CITY OF WICHITA FALLS, TEXAS SANITATION FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1988 Balance Balance 10/1/87 Additions Deletions 9/30/88 Plant and Equipment: Land and betterments $ 653,692 $ - $ - $ 653,692 Buildings and improvements 2,216,426 81 ,944 - 2,298,370 Machinery and equipment 95,660 - - 95,660 Furniture and fixtures 4,750 - - 4,750 Total plant and equipment 2,970,528 81 ,944 - 3,052,472 Accumulated Depreciation: Land and betterments 11 ,551 1 ,805 - 13,356 Buildings and improvements 233,843 47,488 - 281 ,331 Machinery and equipment 42,359 7,618 - 49,977 Furniture and fixtures 3,315 214 - 3,529 Total accumulated depreciation 291 ,068 57,125 - 348, 193 Net plant and equipment $2,679,460 $ 24,819 $ - $ 2,704,279 94 EXHIBIT J-11 CITY OF WICHITA FALLS, TEXAS WATER AND SEWER FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1988 Plant and Equipment Accumulated Depreciation Net Plant Balance Transfers Balance Balance Balance and 10/1/87 Additions Deletions In (Out) 9/30/88 10/1/87 Additions Deletions 9/30/88 Equipment Water Department: Land and betterments $22,212,948 $ 91,450 $ - $ - $22,304,398 $ 4,108,819 $ 229,639 $ - $ 4,338,458 $17,965,940 Buildings, systems and improvements 32,141,359 2,421,935 - 2,155,877 36,719,171 13,319,339 646,108 - 13,965,447 22,753,724 Machinery and equipment 2,238,191 54,882 2,178 - 2,290,895 1,303,129 38,534 1,307 1,340,356 950,539 Furniture and fixtures 29,574 620 7,783 ( 55) 22,356 20,689 1,467 7,838 14,318 8,038 Motor vehicles 4,470 - 800 - 3,670 4,470 - 800 3,670 -0- Construction in progress 10.200.845 72,413 - ( 2,155,877) 8,117,381 - - - - 8,117,381 Total Water Department $66,827,387 $2,641,300 $ 10,761 ($ 55) $69,457,871 $18,756,446 $ 915,748 $ 9,945 $19,662,249 $49,795,622 Sewer Department: VI Land and betterments $ 85,214 $ - $ - $ - $ 85,214 $ - $ - $ - $ - $ 85,214 Buildings, systems and improvements 19,988,844 352,425 - 56,899 20,398,168 9,027,527 567,405 - 9,594,932 10,803,236 Machinery and equipment 209,943 3,109 1,298 - 211,754 173,992 5,809 734 179,067 32,687 Furniture and fixtures 1,230 - - 55 1,285 681 155 - 836 449 Construction in progress 56,899 1,329,585 - ( 56,899) 1,329,585 - - - - 1,329.585 Total Sewer Department $20,342,130 $1,685,119 $ 1,298 $ 55 $22,026,006 $ 9,202,200 $ 573,369 $ 734 $ 9.774,835 $12,251,171 Combined Water and Sewer Departments: Land and betterments $22,298,162 $ 91,450 $ - $ - $22,389,612 $ 4,108,819 $ 229,639 $ - $ 4,338,458 $18,051 ,154 Buildings, systems and improvements 52,130,203 2,774,360 - 2,212,776 57,117,339 22,346,866 1,213,513 - 23,560,379 33,556,960 Machinery and equipment 2,448,134 57,991 3,476 - 2,502,649 1,477,121 44,343 2,041 1,519,423 983,226 Furniture and fixtures 30,804 620 7,783 - 23,641 21,370 1,622 7,838 15,154 8,487 Motor vehicles 4,470 - 800 - 3,670 4,470 - 800 3,670 -0- Construction in progress 10,257,744 1,401.998 - ( 2,212,776) 9,446,966 - - - - 9,446,966 Total Combined Water and Sewer Departments $87,169,517 $4,326,419 $ 12,059 $ -0- $91,483,877 $27,958,646 $1,489.117 $ 10,679 $29,437,084 $62,046,793 EXHIBIT J-12 CITY OF WICHITA FALLS, TEXAS INTERNAL SERVICE FUND PLANT, EQUIPMENT AND DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 1988 Balance Balance 10/1/87 Additions Deletions 9/30/88 Plant and Equipment: Land and betterments $ 206,769 $ 226,889 $ - $ 433,658 Buildings and improvements 4,008,948 - 4,098,948 Furniture and fixtures 6,234 - 260 5,974 Motor vehicles and equipment 13,332,988 1 ,878,802 726,415 14,485,375 Total plant and equipment 17,554,939 2, 105,691 726,675 18,933,955 Accumulated Depreciation: Buildings and improvements 319,077 80,085 - 399,162 Furniture and fixtures 3,095 525 104 3,516 Motor vehicles and equipment 6,380,905 1 ,499,796 597,097 7,283,604 Total accumulated depreciation 6,703,077 1 ,580,406 597,201 7,686,282 Net plant and equipment $10,851 ,862 $ 525,285 $129,474 $11 ,247,673 96 STATISTICAL SECTION EXHIBIT K-1 CITY OF WICHITA FALLS, TEXAS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (GENERAL FUND ONLY) - LAST TEN FISCAL YEARS (UNAUDITED) Finance Fiscal Administrative Parks and and Public Traffic and Year Services Police Fire Recreation Accounting Planning Works Health Transportation Total 1978-1979 $2,838,482 $3,276,845 $2,242,693 $1,240,619 $220,556 $ 299,195 $4,133,082 $ 871,250 $1,025,082 $16,147,804 1979-1980 3,391,765 3,567,359 2,559,343 1,555,801 254,141 458,406 5,194,544 937,651 1,124,071 19,043,081 1980-1981 4,640,642 4,233,007 2,950,147 2,286,817 257,656 1,092,712 9,236,190 1,119,781 1,516,665 27,333,617 1981-1982 4,546,379 5,015,271 3,341,335 2,911,708 577,133 1,125,120 8,524,692 1,482,774 1,562,567 29,086,979 1982-1983 5,001,439 5,685,793 3,883,766 2,584,235 563,936 770,007 7,815,997 1,320,500 1,502,279 29,127,952 1983-1984 7,280,506 6,169,438 4,321,815 2,661,586 480,639 965,744 6,711,669 1,432,771 2,037,931 32,062,099 1984-1985 5,569,049 6,357,917 4,923,585 2,566,444 503,270 339,011 4,751,428 1,655,368 1,381,583 28,047,655 v 1985-1986 4,895,221 7,422,813 4,601,651 2,396,365 525,034 405,519 5,220,861 1,732,984 1,276,928 28,477,376 1986-1987 4,972,244 7,242,687 4,844,086 2,928,346 469,576 269,662 5,233,671 1,939,250 1,296,474 29,195,996 1987-1988 4,838,572 7,578,322 5,096,563 3,192,387 432,777 336,317 5,200,849 1,836,848 1,217,950 29,730,585 EXHIBIT K-2 CITY OF WICHITA FALLS, TEXAS GENERAL REVENUES BY SOURCE (GENERAL FUND ONLY) - LAST TEN FISCAL YEARS (UNAUDITED) Charges Licenses Fiscal for and Intergovernmental Miscellaneous Year Taxes Services Permits Fines Revenue Revenue Total 1978-1979 $11 ,249,780 $2,234,529 $422,983 $450,638 $1 ,284,771 $ 779,308 $16,422,009 1979-1980 13,292,089 2,561 ,174 303,713 535,045 1 ,037,185 912,501 18,641 ,707 1980-1981 15,617,860 3,414,456 235,263 539,842 2,568,732 1 ,215,997 23,592,150 1981-1982 16,477,646 4,272,199 234,446 689,301 1 ,543,277 1 ,621 ,773 24,838,642 1982-1983 18,023,712 4,354,410 284,438 808,502 683,388 1 ,292,813 25,447,263 a 1983-1984 20,176,122 5,449,200 342,431 753,274 562,519 1 ,418,298 28,701 ,844 1984-1985 21 ,328,803 1 ,904,610 463,613 815, 148 443,014 1 ,637,783 26,592,971 1985-1986 21 ,943,688 1 ,117,348 418,823 836,851 479,325 1 ,348,003 26, 144,038 1986-1987 21 ,498,718 1 , 164,667 353,679 840,467 641 ,949 1 ,080,753 25,580,233 1987-1988 22,195,718 1 ,295,629 598,915 885,805 704,187 1 ,346,153 27,026,407 EXHIBIT K-3 CITY OF WICHITA FALLS, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS - LAST TEN FISCAL YEARS (UNAUDITED) Total Collections Percent Delinquent as Percent Fiscal Total Current Tax of Levy Tax Total Tax of Current Year Tax Levy Collections Collected Collections Collections Levy 1978-1979 $ 7,050,216 $ 6,896,264 97.82% $118,793 $ 7,015,057 99.50% 1979-1980 7,582,393 7,383,608 97.38% 129,220 7,512,828 99.08% 1980-1981 9,315,184 9,031 ,661 96.96% 152,342 9,184,003 98.59% 1981-1982 10,896,934 10,508,375 96.43% 181 ,577 10,689,952 98.10% 1982-1983 12,490,900 11 ,900,747 95.28% 249,522 12,150,269 97.28% 1983-1934 14,050,573 13,524,855 96.26% 301 ,973 13,826,828 98.41% 1984-1985 14,199,969 13,722,790 96.64% 497,660 14,220,450 100.14% 1985-1986 13,940,609 13,479,038 96.69% 399,623 13,878,661 99.56% 1986-1987 14,401 ,856 13,743,656 95.43% 378,280 14,121 ,936 98.06% 1987-1988 14,508,804 13,998,858 96.49% 487,072 14,485,930 99.84% 99 EXHIBIT K-4 CITY OF WICHITA FALLS, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY - LAST TEN FISCAL YEARS (UNAUDITED) Ratio of Total Assessed Real Property Personal Property Total to Total Fiscal Assessed Estimated Assessed Estimated Assessed Estimated Estimated Year Value Actual Value Value Actual Value Value Actual Value Actual Value 1978-1979 $ 496,581 ,713 $ 709,402,447 $181 ,316,767 $259,023,953 $ 677,898,480 $ 968,426,400 70.00% 1979-1980 552,869,965 789,814,236 205,360,309 293,371 ,870 758,230,274 1 ,083,186, 106 70.00% 1980-1981 906,905,547 906,905,547 335,093,095 335,093,095 1 ,241 ,998,642 1 ,241 ,998,642 100.00% 1981-1982 1 ,068,352,963 1 ,068,352,963 384,544,358 384,544,358 1 ,452,897,321 1 ,452,897,321 100.00% 0 1982-1983 1 ,324,181 ,729 1 ,324,181 ,729 478,256,955 478,256,955 1 ,802,438,684 1 ,802,438,684 100.00% 0 1983-1984 1 ,432,631 ,714 1 ,432,631 ,714 449,813,802 449,813,802 1 ,882,445,516 1 ,882,445,516 100.00% 1984-1985 1 ,587,368,510 1 ,587,368,510 468,310,782 468,310,782 2,055,679,292 2,055,679,292 100.00% 1985-1986 1 ,737,427,089 1 ,737,427,089 489,263, 121 489,263,121 2,226,690,210 2,226,690,210 100.00% 1986-1987 1 ,809,871 ,886 1 ,809,871 ,886 505,911 ,411 505,911 ,411 2,315,783,297 2,315,783,297 100.00% 1987-1988 1 ,789,937,697 1 ,789,937,697 484,882,457 484,882,457 2,274,820,154 2,274,820,154 100.00% EXHIBIT K-5 CITY OF WICHITA FALLS, TEXAS PROPERTY TAX RATES AND TAX LEVIES - ALL OVERLAPPING GOVERNMENTS - LAST TEN FISCAL YEARS (UNAUDITED) Fiscal WFISD CVISD Year City School (1 ) School (2) County State Total Tax Rates Per $100 Valuation 1978-1979 $1 .04 $1 .17 $1 .67 $ .87 $ .10 $4.85 1979-1980 1 .00 1 .06 .89 .87 - 3.82 1980-1981 .75 .74 1 .07 .87 - 3.43 1981-1982 .75 .73 1 .07 .31 - 2.86 1982-1983 .69 .69 .69 .22 - 2.29 1983-1984 .75 .74 .67 .25 - 2.41 1984-1985 .69 .74 .58 .25 - 2.26 1985-1986 .63 .87 .64 .24 - 2.38 1986-1987 .62 .82 .75 .24 - 2.43 1987-1988 .64 .82 .72 .25 - 2.43 Tax Levies 1978-1979 $ 7,050,216 $ 8, 193,611 $327,917 $4,169,834 $452,303 $20,193,881 1979-1980 7,582,393 7,862,586 279,632 4,622,135 - 20,346,746 1980-1981 9,315,184 9,234,676 402,354 4,551 ,667 - 23,503,881 1981-1982 10,896,934 10,427,882 402,523 4,551 ,700 - 26,279,039 1982-1983 12,490,900 12,233,330 488,457 6,858,581 - 32,071 ,268 1983-1984 14,050,573 13,541 ,058 487,548 7,254,768 - 35,333,947 1984-1985 14,199,969 14,642,156 479,099 7,680,915 - 37,002, 139 1985-1986 13,940,609 18,631 ,889 538,827 7,763,760 - 40,875,085 1986-1987 14,401 ,856 18,270,216 669,201 7,916,250 - 41 ,257,523 1987-1988 14,508,804 18,063,909 660,750 8,188, 119 - 41 ,421 ,582 Notes: ( 1 ) WFISD - Wichita Falls Independent School District - 98.49% in Wichita Falls city limits (2) CVISD - City View Independent School District - 75.25% in Wichita Falls city limits 101 EXHIBIT K-6 CITY OF WICHITA FALLS, TEXAS TEN LARGEST TAXPAYERS (UNAUDITED) SEPTEMBER 30, 1988 Percentage January 1 , 1987 of Total Assessed Assessed Taxpayer Type of Business Valuation Valuation Southwestern Bell Telephone Utility $ 46,638,818 2.05% Texas Utilities Electric Utility 33,037,549 1 .45% JMB Group Trust III Shopping Center 31 ,656,032 1 .39% Robert Seabury Shopping Center/ 15,549,954 .68% Entertainment Complex Sprague Electric Manufacturing 13,971 ,120 .61% Panhandle Manufacturing Manufacturing 10,511 ,775 .46% Siemens Manufacturing 8,837,627 .40% Wichita Falls Hotel Hotel 7,791 ,108 .34% Partnership Texaco, Inc. Oil and Gas 7,621 ,544 .34% Lone Star Gas Gas Utility 7,304,160 .32% $182,919,687 8.04% 102 EXHIBIT K-7 CITY OF WICHITA FALLS, TEXAS SPECIAL ASSESSMENT COLLECTIONS (CAPITAL IMPROVEMENT ASSESSMENTS FUND) - LAST TEN FISCAL YEARS (UNAUDITED) Current Current Ratio of Fiscal Assessments Assessments Collections Year Due Collected to Amount Due 1978-1979 $585,315 $146,011 24.95% 1979-1980 578,872 109,360 18.90% 1980-1981 718,281 87,983 12.25% 1981-1982 625,599 323,627 51 .73% 1982-1983 657,912 107,106 16.28% 1983-1984 656,093 216,304 32.97% 1984-1985 539,756 109,799 20.34% 1985-1986 499,695 36,960 7.40% 1986-1987 475,172 20,465 4.31% 1987-1988 454,730 20,530 4.51% 103 EXHIBIT K-8 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED) SEPTEMBER 30, 1988 Total assessed property value per 1987 tax roll $2,274,820,154 Maximum tax levy* $2.25/$100 Current tax levy for 1987 tax year .6378/$100 Maximum tax levy in excess of 1987 tax levy 1 .6122/$100 $ 36,674,651 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 estab- lished under its Charter is $2.25 per $100 assessed valuation. The 1987 tax rate is $ .6378 per $100 assessed valuation. * Maximum tax levy established by City Charter 104 EXHIBIT K-9 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) Ratio of Net General Gross Less Debt Bonded Debt Net General Fiscal Assessed General Service Net General To Assessed Bonded Debt Year Population Value Bonded Debt Funds Bonded Debt Value Per Capita 1978-1979 111 ,000 $ 677,898,480 $11 ,064,000 $240,535 $10,823,465 1 .60% $ 98 1979-1980 93,600 758,230,274 13,558,000 277,095 13,280,905 1 .75% 142 1980-1981 94,201 1 ,241 ,998,642 13,564,000 467,080 13,096,920 1 .05% 139 1--, 1981-1982 96,500 1 ,452,897,321 19, 153,000 633,207 18,519,793 1 .27% 192 0 1982-1983 97,125 1 ,802,438,684 17,395,000 705,727 16,689,273 .93% 172 1983-1984 104,500 1 ,882,445,516 15,375,000 929,646 14,445,354 .77% 138 1984-1985 100,200 2,055,679,292 21 ,870,000 235,914 21 ,634,086 1 .05% 216 1985-1986 101 ,300 2,226,690,210 22,540,000 245,043 22,294,957 1 .00% 220 1986-1987 99,000 2,315,783,297 22,235,000 269,301 21 ,965,699 .95% 222 1987-1988 98,500 2,274,820, 154 21 ,630,000 400,423 21 ,229,577 .93% 216 EXHIBIT K-10 CITY OF WICHITA FALLS, TEXAS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES - LAST TEN FISCAL YEARS (UNAUDITED) Ratio of Total Debt Service Fiscal Total Debt General to General Year Principal Interest Service Expenditures Expenditures 1978-1979 $1 ,501 ,000 $ 487,880 $1 ,988,880 $16,147,804 12.32% 1979-1980 1 ,306,000 423,175 1 ,729,175 19,043,081 9.08% 1980-1981 1 ,309,000 633,791 1 ,942,791 27,333,617 7.11% 1981-1982 2,801 ,000 596,285 3,397,285 29,086,979 11 .68% 1982-1983 1 ,758,000 1 ,480,829 3,238,829 29,127,952 11 .12% 1983-1984 2,020,000 1 ,365,442 3,385,442 32,062,099 10.56% 1984-1985 1 ,855,000 1 ,242,282 3,097,282 28,047,655 11 .04% 1985-1986 -0- 902,453 902,453 28,477,376 3.17% 1986-1987 305,000 1 ,980,711 2,285,711 29,195,996 7.83% 1987-1988 605,000 1 ,682,502 2,287,502 29,730,585 7.69% 106 EXHIBIT K-11 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF DIRECT AND OVERLAPPING DEBT (UNAUDITED) SEPTEMBER 30, 1988 Percentage Applicable Amount Applicable Taxing Gross Debt to City of to City of Jurisdiction Outstanding (1) Wichita Falls (2) Wichita Falls City of Wichita Falls $46,065,000 100.00% $46,065,000 Wichita Falls Independent 22,295,000 98.49% 21 ,958,346 School District Wichita County 2,785,000 77.23% 2,150,856 City View Independent 716,000 75.25% 538,790 School District Burkburnett Independent 8,675,000 1 .16% 100,630 School District $80,536,000 $70,813,622 Sources: (1 ) Listed taxing jurisdictions (2) Herbert R. Smith, Incorporated 107 EXHIBIT K-12 CITY OF WICHITA FALLS, TEXAS REVENUE BOND COVERAGE - WATER AND SEWER REVENUE BONDS - LAST TEN FISCAL YEARS (UNAUDITED) Average Annual Average Maximum Net Income Principal Annual Principal Maximum Fiscal Available for and Times and Times Year Debt Service Interest Covered Interest Covered 1978-1979 $1 ,764,656 $ 553,977 3.19 $1 ,059,691 1 .67 1979-1980 2,904,365 536,677 5.41 1 ,129,840 2.57 1980-1981 2,843,629 507,350 5.60 1 ,129,840 2.52 1981-1982 2,773 ,414 682,840 4.06 1 ,440,487 1 .93 1982-1983 3,242,485 640,749 5.06 1 ,394, 164 2.32 1983-1984 4,844,678 596,430 8.12 1 ,347,556 3.60 1984-1985 5,239,019 2,374,494 2.21 2,377,437 2.20 1985-1986 4,588,812 2,453,643 1 .87 2,457,972 1 .87 1986-1987 4,230,749 2,453,511 1.72 2,457,972 1 .72 1987-1988 5,805,625 2,453,276 2.37 2,456,678 2.36 108 EXHIBIT K-13 CITY OF WICHITA FALLS, TEXAS DEMOGRAPHIC STATISTICS - LAST TEN FISCAL YEARS (UNAUDITED) Per Fiscal Estimated Capita Education School Unemployment Year Population ( 1 ) Income (2) Level (3) Enrollment (3) Rate (4) 1978-1979 111 ,000 $ 7,185 12.6 14,561 3.2% 1979-1980 93,600 7,500 12.6 14,386 4.0% 1980-1981 94,201 8,703 13.1 14,378 4. 1% 1981-1982 96,500 9,857 13.1 14,256 6.4% 1982-1983 97,125 11 ,302 13.2 14,184 7.1% 1983-1984 104,500 11 ,835 13.3 14,428 4.4% 1984-1985 100,200 11 ,970 13.3 14,118 5.9% 1985-1986 101 ,300 12,985 13.2 14,159 8.4% 1986-1987 99,000 13 ,874 13.2 14,249 7.8% 1987-1988 98,500 14,732 13.1 13 ,856 6.3% Sources: ( 1 ) City of Wichita Falls Planning Department (2) Midwestern State University Economics Department (3) Wichita Falls I.S.D. - Educational level is grade equivalent of graduating senior. (4) Texas Employment Commission 109 EXHIBIT K-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) 1978-1979 $ 968,426,400 $131 ,560,312 $ 724,403,250 1979-1980 1 ,083,186,106 45,236,067 811 ,428,863 1980-1981 1 ,241 ,998,642 82,811 ,494 888,732,895 1981-1982 1 ,452,897,321 56,424,318 961 ,142,020 1982-1983 1 ,802,438,684 73,235,522 972,585,375 1983-1984 1 ,882,445,516 45,959,328 1 ,011 ,202, 125 1984-1985 2,055,679,292 68,942,474 1 ,020,034,687 1985-1986 2,226,690,210 40,951 ,045 1 ,086,818,201 1986-1987 2,315,783,297 31 , 161 ,722 1 ,107,880,373 1987-1988 2,274,820,154 39,510,717 1 ,075,698,257 Sources: ( 1 ) City of Wichita Falls Tax Department (2) City of Wichita Falls Planning Department (3) Wichita Falls Times/Record News (as of December 31 ) 110 EXHIBIT K-15 CITY OF WICHITA FALLS, TEXAS MISCELLANEOUS STATISTICAL DATA (UNAUDITED) SEPTEMBER 30, 1988 Date of incorporation 1889 Form of government Council - Manager Area 50 square miles Miles of streets 574.2 Number of street lights 6,563 Fire protection: Number of stations 9 Number of firemen and officers 152 Police protection: Number of stations 1 ' Number of police officers 154 Municipal water department: Number of consumers - active 31 ,475 Average daily consumption 22,655,000 gallons treated water Miles of water mains 800 Sewers: Number of customers - active 27,787 Miles of sanitary sewers 650 Miles of storm sewers 200 Building permits issued: Number issued 8,676 Amount issued $39,510,717 Recreation and culture: Number of parks 41 with 1 ,104 acres Number of libraries 1 Number of volumes 125,000 Employees - fulltime 975 111 EXHIBIT K-16 (Page 1 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) SEPTEMBER 30, 1988 Insurance Code A Policy: Building and Contents Company: Fireman's Fund Policy No. : XFX65251 28 Policy No. : Extra Expense XFX65251 29 Policy Period: October 1 , 1988 to October 1 , 1989 Perils: Fire, extended coverage, vandalism and malicious mischief, including difference in condition Coverages: $27,999,000 Building and Contents $ 250,000 Extra Expense Deductible: $ 100,000 Coinsurance: Agreed Value, Replacement Cost Premium: $16,478 B Policy: Boiler and Machinery Company: Home Indemnity Company Policy No. : BMP 496070 A Policy Period: October 1 , 1988 to October 1 , 1989 Perils: Comprehensive Blanket Coverage: $1 ,000,000 Per Occurrence Deductible: $ 25 ,000 Premium: $ 9,999 C Policy: Electronic Data Processing Equipment Company: American Standard Lloyds Insurance Co. Policy No. : 3HF 503 604-00 Policy Period: October 1 , 1988 to October 1 , 1989 Perils: All Risks Coverage: $633,200 Deductible: $1 ,000 Premium: $ 6,568 D Policy: Excess Worker's Compensation and Employer's Liability Company: Aetna Insurance Company Policy No. : 18XC27SCA Policy Period: October 1 , 1988 to October 1 , 1989 Perils: Worker's Compensation - Employer's Liability Coverage: Statutory Limits Worker's Compensation $1 ,000,000 Employer's Liability Deductible: $ 500,000 Premium: $29,845 112 EXHIBIT K-16 (Page 2 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D. ) SEPTEMBER 30, 1988 Insurance Code E Policy: Airport Liability Company: U.S. Fire Insurance Company Policy No. : GLA 45-2474729 Policy Period: October 1 , 1988 to October 1 , 1989 Perils: Owner's, Landlord, and Tenants Liability Coverage: $1 ,000,000 CSL Deductible: None Premium: $ 1 ,900 F Policy: Public Official Bond Company: Fidelity & Deposit Company Bond No. : 9688496 Bond Period: June 27, 1988 to June 27, 1989 Insured: City Manager Coverage: $25,000 Premium: $ 88 G Policy: Public Official Bond Company: Fidelity & Deposit Company Bond No. 9619935 Bond Period: August 1 , 1988 to August 1 , 1989 Insured: Purchasing Agent Coverage: $2,500 Premium: $ 50 H Policy: Public Employee Blanket Bond Company: Fidelity & Deposit Company Bond No. : CCP 9367053 Bond Period: January 15, 1988 to January 15, 1989 Insured: Honesty Blanket Position Coverage: $10,000 Inside Premises $ 3,000 Outside Premises Premium: $ 288 Policy: Public Official Bond Company: Fidelity & Deposit Company Bond No. : 9619935 Bond Period: January 15, 1988 to January 15, 1989 Insured: City Clerk Coverage: $25,000 Premium: $ 88 113 EXHIBIT K-16 (Page 3 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D. ) SEPTEMBER 30, 1988 Insurance Code J Policy: Public Official Bond Company: Aetna Insurance Company Bond No. : S100138239BCA Bond Period: April 22, 1988 to April 22, 1989 Insured: Tax Assessor/Collector Coverage: $50,000 Premium: $ 250 K Policy: Public Official Bond Company: Aetna Insurance Company Bond No. : S100084654BCA Bond Period: August 6, 1988 to August 6, 1989 Insured: Director of Public Works Coverage: $2,500 Premium: $ 50 L Policy: Public Official Bond Company: Aetna Insurance Company Bond No. : 5100179467BCA Bond Period: July 16, 1988 to July 16, 1989 Insured: Municipal Court Administrator Coverage: $2,500 Premium: $ 50 M Policy: Public Official Bond Company: Aetna Insurance Company Bond No. : 518072205BCA Bond Period: March 5, 1988 to March 5, 1989 Insured: Director of Finance Coverage: $25,000 Premium: $ 88 N Policy: Health Insurance Company: Coordinated Benefits Systems Policy No. : City of Wichita Falls Employee Benefits Trust Policy Period: October 1 , 1988 through September 30, 1989 Perils: Illness and Accidental Injury (Non-work Related) Coverage: $1 ,000,000 Lifetime Maximum Deductible: $250 Annually Per Person (Maximum 3 Family Members) Coinsurance: Coinsurance coverage begins when a limit of 20% reaches $2,500 yearly, then insurance company pays 100% of eligible expenses. Premium: Annual Estimate $1 ,500,000 114 EXHIBIT K-16 (Page 4 of 4) CITY OF WICHITA FALLS, TEXAS SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D. ) SEPTEMBER 30, 1988 Insurance Code 0 Policy: Dental Insurance Company: Coordinated Benefits Systems Policy No. : City of Wichita Falls Employee Benefits Trust Policy Period: October 1 , 1988 through September 30, 1989 Perils: Basic Dental Coverage with Orthodontics for Children Under 19 Coverage: $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: Annual Estimate $100,000 P Policy: Life Insurance Company: Aetna Life and Casualty Policy No. : GT-47782 (Group #) Policy Period: October 1 , 1988 through September 30, 1989 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 $ 80,000 Q Policy: Life Insurance (Directors Only) Company: Pilot Life Insurance Company Policy No. : 0548 (Group #) Policy Period: January 1 , 1988 to December 31 , 1989 Perils: Accidental Death and Dismemberment Coverage: $25,000 Deductible: N/A Premium: Annual Estimate $ 350 115 GRAPHICS EXHIBIT L-1 C I TY OF W I CH I TA FALLS , TEXAS CASH AND SHORT-TERM INVESTMENTS 35 i/f 30 - r j 25 - n /r N co - a. J O J 0 O i 15 - v 10 - 5 - 0 A , A A A 1 1 1 1 1 1984 1985 1986 1987 1988 YEARS ENDED SEPTEMBER 30, (UNAUDITED) EXHIBIT L-2 CITY OF WICHITA FALLS , TEXAS TOTAL BONDS PAYABLE 50 45 - 40 - 35 - 30 - ncc cul J O 25 - 20 - 15 - 10 - 5 - 0 I 1 I I I I I I I I 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 YEARS ENDED SEPTEMBER 30, (UNAUDITED) EXHIBIT L-3 CITY OF :'Jl rl-{ I Tom. BALLS , TEXAS GENERAL OBLIGATION BONDS PAYABLE 24 22 - -7 V ,e - j j5/ 6 ‹ c �2 � j 8 � o j j j j j j j • j j j j EXHIBIT L-4 CITY OF WICHITA FALLS , TEXAS REVENUE BONDS PAYABLE 26 24 - /22 - V 20 - 16 - n 0 14 - -I g 12 - 10 - -/ /7 7 V 6 - 4 - 2 - 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 YEARS ENDED SEPTEMBER 30, (UNAUDITED) EXHIBIT L-5 CITY OF W I CH I TA FALLS , TEXAS TOTAL FUND EQUITY 140 130 — 120 — / 110 —j 100 — 90 — BO — cn n~i cE O O a ' 70 - J 2 60 — v 50 — 40 — 30 — 20 — 10 — 0 A // 1984 1985 1986 1987 1988 YEARS ENDED SEPTEMBER 30, (UNAUDITED) EXHIBIT L-6 CITY OF WICHITA FALLS, TEXAS ANALYSIS OF REVENUES BY SOURCE FOR THE YEAR ENDED SEPTEMBER 30, 1988 (UNAUDITED) SERVICE CHARGES C32 . 2516) N '-' TAXES C42 . 7%J INTERGOVERNMENTAL C6 . 5%) LICENSES, PERMITS AND FINES (2 , 5%) INTEREST AND MISCELLANEOUS C6 . 2%) RENTS AND CONCESSIONS (9 , 9%) EXHIBIT L-7 CITY OF WICHITA FALLS, TEXAS ANALYSIS OF EXPENDITURES BY FUNCTION FOR THE YEAR ENDED SEPTEMBER 30, 1988 (UNAUDITED) ACCOUNTING & FINANCE CO , 8%) ADMINISTRATIVE C114 . 5%) WATER & SEWER C20 . 8%) N TRANSIT C0 . 9%D POLICE C'14 . 6%) SANITATION C6 . 2%) AIRPORT C0 . 5%) DEBT SERVICE C9 , 4%) PARKS & RECREATION (6 . 2%) PLANNING C0 . 6%) CAPITAL PROJECTS C2 . 5%) HEALTH C3 . 5%) FIRE C9 , 8%) PUBLIC WORKS C10 . 0%) TRAFFIC & TRANSPORTATION C2 . 4%)