1986 Annual Financial Report City of Wichita Fall exas
• I d • • C ` •
Financial Repo
For ., _a, _. • _ • _ • em •er 30, 1986
wiC'lilsS
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 1986
I
PREPARED BY:
DEPARTMENT OF FINANCE
FRED L. WERNER, C.P.A.
DIRECTOR OF FINANCE AND
CHIEF ACCOUNTING OFFICER
INTRODUCTORY SECTION
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 1986
MAYOR AND CITY COUNCIL
Charles Harper, Mayor
Charles Thomas
Mayor Pro-Tem Ruth Ann Allred
Sandy Goff Ronald Buffum
Lindsey Walker Donald Kirkham
CITY MANAGER
James Berzina
DIRECTOR OF FINANCE AND
CHIEF ACCOUNTING OFFICER
Fred L. Werner, C.P.A.
CERTIFIED PUBLIC ACCOUNTANTS
Mathis, West, Huffines & Co.
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 1986
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Title Page
Table of Contents
Organizational Chart iv
Letter of Transmittal:
Director of Finance/Chief Accounting Officer v-xii
Certificate of Conformance xiii
FINANCIAL SECTION
Accountants' Report 1
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types and Account Groups A-1 2-3
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types and
Expendable Trust Funds A-2 4
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual - General, Special
Revenue, and Debt Service Funds A-3 5
Combined Statement of Revenues, Expenses and Changes in
Retained Earnings - All Proprietary Fund Types A-4 6-7
Combined Statement of Changes in Financial Position - All
Proprietary Fund Types A-5 8-9
Notes to the Financial Statements 10-39
Combining and Individual Fund Financial Statements:
General Fund:
Balance Sheet B-1 40
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual B-2 41-44
Special Revenue Funds:
Combining Balance Sheet C-1 45
Combining Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual C-2 46
i
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 1986
TABLE OF CONTENTS (CONT'D. )
Exhibit Page
Combining and Individual Fund Financial Statements (Cont'd.)
Debt Service Fund:
Balance Sheet D-1 47
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual D-2 48
Capital Projects Funds:
Combining Balance Sheet E-1 49
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance E-2 50
Special Assessment Fund:
Balance Sheet F-1 51
Statement of Revenues, Expenditures and Changes in
Fund Balance F-2 52
Enterprise Funds:
Combining Balance Sheet G-1 53-54
Combining Statement of Revenues, Expenses and Changes
in Retained Earnings G-2 55
Combining Statement of Changes in Financial Position G-3 56-57
Internal Service Fund:
Balance Sheet H-1 58
Statement of Revenues, Expenses and Changes in
Retained Earnings H-2 59
Statement of Changes in Financial Position H-3 60
Trust and Agency Funds:
Combining Balance Sheet I-1 61
Expendable Trust Fund - Employee Benefit Trust
Statement of Revenues, Expenditures and Changes in
Fund Balance I-2 62
Agency Funds Combining Statement of Changes in
Assets and Liabilities I-3 63-65
Supporting Schedules:
Combined Schedule of Bonded Debt and Interest Maturities J-1 66
Combined Schedule of Bonds Payable J-2 67-69
Debt Service Coverage - Revenue Bonds J-3 70
General Fixed Assets - Schedule of Changes in General
Fixed Assets by Function and Activity J-4 71-72
ii
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 1986
TABLE OF CONTENTS (CONT'D. )
Exhibit Page
Supporting Schedules (Cont'd. ) :
General Fixed Assets - Schedule of General Fixed Assets
by Function and Activity J-5 73
Airport Fund - Plant, Equipment and Depreciation J-6 74
Transit Fund - Plant, Equipment and Depreciation J-7 75
Sanitation Fund - Plant, Equipment and Depreciation J-8 76
Water and Sewer Fund - Plant, Equipment and Depreciation J-9 77
Internal Service Fund - Plant, Equipment and Depreciation J-10 78
STATISTICAL SECTION (UNAUDITED)
General Government Expenditures by Function (General Fund Only)
- Last Ten Fiscal Years K-1 79
General Revenue by Source (General Fund Only) - Last Ten
Fiscal Years K-2 80
Property Tax Levies and Collections - Last Ten Fiscal Years K-3 81
Assessed and Estimated Actual Value of Taxable Property -
Last Ten Fiscal Years K-4 82
Property Tax Rates and Tax Levies - All Overlapping
Governments - Last Ten Fiscal Years K-5 83
Special Assessment Collections - Last Ten Fiscal Years K-6 84
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita - Last Ten Fiscal Years K-7 85
Computation of Legal Debt Margin K-8 86
Computation of Direct and Overlapping Debt K-9 87
Ratio of Annual Debt Service for General Bonded Debt to
Total General Expenditures - Last Ten Fiscal Years K-10 88
Airport Revenue Bonds - Schedule of Revenue Bond Coverage -
Last Ten Fiscal Years K-11 89
Water and Sewer Revenue Bonds - Schedule of Revenue Bond
Coverage - Last Ten Fiscal Years K-12 90
Demographic Statistics - Last Ten Fiscal Years K-13 91
Property Value, Building Permits, and Bank Deposits - Last
Ten Fiscal Years K-14 92
Ten Largest Taxpayers K-15 93
Miscellaneous Statistical Data K-16 94
Schedule of Insurance Coverage K-17 95-98
Schedule of Employee Benefit Insurance K-18 99-100
iii
CITY OF WICHITA FALLS
ORGANIZATIONAL CHART
( WICHITA FALLS )
CITIZENS
CITIZENS 1 ( CITY I ) I/ 1
(
COMMISSIONS J COUNCIL 1 BOARDS J
I I
I
CHIEF I ) I I (_ I ) ( I \
(
ACCOFOUNTING
( ADMINISTRATOR
R ) ( CITY MANAGER ) CITY ATTORNEY CITY CLERK )
1 I
( ASSISTANT 1 PUBLIC
( INFORMATION )
CITY MANAGERS
I I I I I
TRAFFIC AND ADMINISTRATIVE
TRANSPORTATIO FINANCE SERVICES PLANNING HEALTH
CDEPARTMENTE DEPARTMENT DEPARTMENTPUBLIC FINANCE- DEPARTMENT DEPARTMENT
( AIRPORT F� TRANSPptTpT[ON� ( ACCOUNTING ``� PURCHASING ( CENTER PROCESSING ,1 (
COS ANNENS,IVE\ ELODEPENFORCEMENT) ( ADMINISTRATION)- ENVIROGENNMENTAL RAL >
C ENGINEERING ///� SERV AI
) ( COLLELTTR ) COLLECTION) MARKETS ACTIVITY AUDITORIUM
/ ( DEVELOPMENT )
HOUSING ) PUBLIC
NURSIENG TN� CONTROL )
( MEP TERS ) ( LIBRARY MAINTENANCE E ) ( (
POLLUTION CONTROL )
( PR°MANAGEMENTI �` PERSONNEL )
( LABORATORY )---( C T OL )
PUBLIC
POLICE FIRE PARKS AND WORKS/
DEPARTMENT DEPARTMENT RECREATION PUBLIC
DEPARTMENT UTILITIES
DEPARTMENT
TECHNICAL FIELD FIRE I ARSON RECREATION PAS ENGINEERING SANITATION
( SERVICES ) ( SERVICES ) ( SUPPRESSION ) C INVESTIGATION) ( 1 ( MAINTENANCE ) C ) ( )
(ADMINISTRATION) ( CEMETERY ) ( MAINTENANCE ) (_-UTILITIES -)
Wichita Falls
A
February 10, 1987
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, 1986, is submitted herewith.
General Information
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. The
City is an industrial trade and financial center for a large farming,
ranching and oil producing territory.
Reporting Entity
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. 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
used to evaluate each organization and is included in these financial
statements. The other three did not meet the criteria of financial
interdependency and therefore were not included in this report. The
organizations have substantial autonomy and separate governmental entity
characteristics and are governed by separate boards. However, 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.
Services Provided
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, sewerage and sewerage treatment services for
its citizens.
1300 7th Street P O Box 1431 817/761-7611 Wichita Falls, Texas 76307
V
Accounting System and Budgetary Control
In developing and evaluating the City's accounting system, consideration
is given to the adequacy of internal accounting controls as deered
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 of
disposition; and (2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The
concept of reasonable assurance recognized 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 .he
City Manager.
All internal control evaluations occur within the above framework. The
City believes that its internal accounting controls adequately safeguard
assets and provide reasonable assurance of proper recording of financial
transactions.
Budgetary control is maintained at the class level within each divis..on
by the encumbrance of estimated purchase amounts prior to the release of
purchase orders to vendors. Purchase orders which result in an over.:un
of class level balances are not released until additional appropriati(ms
are made available. Open encumbrances are reported as reservations of
fund balance at September 30, 1986.
Subsequent Events
On October 17 , 1986, the United States Congress passed a bill that was
signed into law; agreeing to provide the services of the U. S. Army
Corps of Engineers in expanding the flood protection provided by the
Holliday Creek Flood Control project. The City of Wichita Falls will
benefit from this participation and enhance its flood protection to its
citizenry.
Development of a scenic riverwalk area was started on November 18, 1 )86
with an appropriation from General Fund equity. The development of this
project will make the City of Wichita Falls, Texas, an attractive
location for tourism.
A purchase of land for the development of a fresh water reservoir for
the City and the surrounding area was authorized on December 29, 1986,
with an appropriation from the West Texas Electric Fund and the Water
and Sewer Revenue Fund. This land purchase will reserve the cnly
remaining major lake sight in the north Texas area for the City of
Wichita Falls and the surrounding area thus providing a water supply for
future development of the area.
vi
General Governmental Operations
Revenues in general governmental operations totaled $26, 144,038 in the
1985-86 fiscal year, a decrease of 1 .7% from the 1984-85 fiscal year.
The decrease is due to the reduced rates on investments and a reduction
of revenue tenerated from other service charges. General property taxes
produced 45.17% of general revenues compared to 42.9% in 1984-85 and
37.4% in 1983-84
Increase
(Decrease)
Percent Over Prior
Revenue Source Amount of Total Year
Taxes $21 ,943,688 84.0% $ 614,885
Charges for service 1 ,117,348 4.3% (787,262)
Licenses and permits 418,823 1 .6% ( 44,790)
Fines 836,851 3.2% 21 ,703
Intergovernmental revenue 479,325 1 .8% 36,311
Miscellaneous revenue 1 ,348,003 5.1% (289,780)
$26, 144,038 100.0% $(448,933)
Assessed valuation was $2,226,690,210 based on 100% of market value.
Current tax collections were 96.6% on the tax levy, up .05% from last
year. The ratio of total collections (current and delinquent) to the
current tax levy was 99.56%. Allocation of the property tax levy by
purpose for the year ended September 30, 1986, and the proceding two
fiscal years was as follows:
Purposes 1985-86 1984-85 1983-84
General Government $11 ,337,416 $10,898,063 $10,550,919
Debt Service Fund 2,603, 193 3,301 ,906 3,499,654
$13,940,609 $14,199,969 $14,050,573
Expenditures from the General fund totaled $28,477,376, an increase of
1.53% over the 1984-85 fiscal year. The increase in levels of
expenditures for major functions of the City over the preceding year are
shown in the following tabulation. The major change is seen in the
Police Division through a purchase of it's own computer system for more
effective police work and record management.
vii
General Governmental Operations, Continued
Increase
(Decrease)
Percent Over Prior
Function Amount of Total Year
Administrative Services $ 4,895,221 17.2% $ (673,828)
Police 7,422,813 26.1% 1 ,064,896
Fire 4,601 ,651 16.2% (321 ,934)
Parks and Recreation 2,396,365 8.4% ( 170,079)
Accounting/Finance 525,034 1 .8% 21 ,764
Planning 405,519 1 .4% 66,508
Public Works 5,220,861 18.3% 469,433
Health 1 ,732,984 6.1% 77,616
Traffic and Transportation 1 ,276,928 4.5% (104,655)
$28,477,376 100.0% $ 429,721
Treasury Management
Cash which was temporarily idle during the year, including debt
retirement funds, operating funds, and bond proceeds, was invested in
government securities, certificates of deposit, and money-market
checking accounts. The total amount of interest earned on these
investments amounted to $3,421 ,486.
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 City Hotel/Motel Tax Fund
is a special revenue fund used to account for revenues from the
City-imposed tax of 6% on rental of hotel/motel rooms within the City
with 4% State tax for a total of 11%. The Revenue Sharing, Community
Development Block Grant, and Section 8 Housing, which are used tc
subsidize rents and housing payments for lower income families withir.
the City, are also included in Special Revenue Funds.
Debt Administration
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 positior
to municipal management, citizens and investors. The data for the
1985-86 fiscal year was as follows:
Ratio of Debt
of Assessed Debt Per
Value Capita
Net Direct Bonded Debt $22,540,000 1 .01 $222.51
Outstanding general obligation bonds at September 30, 1986, totalec
$22,540,000 and is considered to be direct tax supported debt.
viii
Debt Administration, Continued
On July 30, 1986, all of the City's General Obligation and Water/Sewer
Revenue bonds were refunded. The City's bond ratings are as follows:
Moody' s Investors Standard &
Service Poor's
General Obligation Bonds Al AA
Water and Sewer Revenue Bonds Al A+
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
special assessment and enterprise funds. At the end of the fiscal year,
completed projects are transferred to General Fixed Assets. During the
1985-86 fiscal period, expenditures from the Capital Projects Funds
amounted to $2,741 ,600. Capital Projects Funds balances on hand as of
September 30, 1986, were $12,120,938. Significant uncompleted projects
in the Capital Projects Funds at the present time are:
Holliday Creek Flood Control Project
Police Station Renovation
Special Assessment Fund
The Participation Paving Fund is a special assessments fund established
for the purpose of paving streets and sidewalks that have been
petitioned for paving. In 1985-86, no expenditures were made from
the Participation Paving Fund. Revenues totaled $65,685. Accounts
receivable from property owners at September 30, 1986, total $499,695.
Enterprise Funds
The Water and Sewer Fund operations for the past three fiscal years is
presented in the following tabulation:
Water and Sewer: 1985-86 1984-85 1983-84
Income Available for Debt Service $4,588,812 $5,239,019 $ 4,844,678
Maximum Annual Debt Service 2,457,972 2,377,437 1 ,347,556
Maximum coverage (income available
for debt service divided by
maximum annual debt service) 1 .87 2.20 3.60
ix
Enterprise Funds, Continued
Airport:
Operating revenues of the Airport for the year ended September 30, 1986
were $181 ,711 . This is a decrease of 2.63%. Operating expenses
increased 22.63%. 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. Operating expenses increased by 3.14%.
Sanitation:
Sanitation revenues for the year ended September 30, 1986 were
$4,690, 107, a decrease of 1 .34% from the prior year. Operating expenses
increased 7.94% to $3,242,360.
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.
Fiduciary Funds
Fiduciary Funds are set up for the purpose of accounting for money anc
property received from non-enterprise fund sources and held by
governmental unit in the capacity of trustee, custodian, or agent fox
individuals, governmental entities and non-public organizations.
Included in the Fiduciary Funds are certain Federal and State grants,
social security, payroll, tax collection, accounts payable funds and the
employee benefit trust fund.
General Fixed Assets
The general fixed assets of the City are those fixed assets used in the
performance of general governmental functions and exclude the fixed
assets of utility and other enterprise funds. As of September 30,
1986,the general fixed assets of the City amounted to $32,047,742.
Responsibility of Financial Statements
Responsibility for both the accuracy of the presented data and the
completeness and fairness of the presentation, including all disclosure::
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.
x
Reporting Standards
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.
Notes to Financial Statements
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.
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. 's opinion has been included in this report. The
statistical section of this report was not included within the scope of
the audit.
Certificate of Conformance
The Governmental 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, 1985.
In order to be awarded a Certificate of Achievement for Excellence in
Financial Reporting, a governmental unit must publish an easily readable
and effeciently 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 Conformance 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.
xi
Acknowledgements, Continued
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,
l'''-------). .--jz.-
----71716.(14 '
Fred L. Werner, CPA
Director of Finance
xii
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, 1985
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
governmental units and public employee retirement
systems whose comprehensive annual financial
reports (CAFR's) are judged to substantially
conform to program standards.
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xiii
FINANCIAL SECTION
1
— i—r— MATHIS,WEST, HUFFINES&CO. Capital Center • Indiana at Seventh
Certified Public Accountants P.O. Box MWH • Wichita Falls,Texas 76307-9989
—L — (817)723-1471
The Honorable Mayor and Members of the City Council
City of Wichita Falls, Texas
We have examined the combined financial statements of the City of Wichita
Falls, Texas, as of September 30 , 1986 and for the year then ended, as listed
under general purpose financial statements in the table of contents. Our exam-
ination was made in accordance with generally accepted auditing standards and,
accordingly, included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
In our opinion, the aforementioned combined financial statements present
fairly the financial position of the City of Wichita Falls, Texas, at September
30, 1986 , and the results of its operations and changes in financial position of
its proprietary funds for the year then ended, in conformity with generally
accepted accounting principles consistently applied during the year except for
the change, with which we concur, in the method of accounting for the Internal
Service Fund and the Section 8 Housing Fund dt described in Note 3 to the
financial statements.
Our examination was made for the purpose of forming an opinion on the com-
bined 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 combined financial statements of
the City of Wichita Falls, Texas. The information has been subjected to the
auditing procedures applied in the examination of the combined financial state-
ments and, in our opinion, is fairly stated in all material respects in relation
to the combined financial statements taken as a whole. The supplementary infor-
mation 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.
•-'2 .--, ,V--...-#-;-...c...._ i Co-:-
MATHIS, WEST, HUFFINES & CO.
Wichita Falls, Texas
January 7, 1987
1
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, 1986
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1985
Fiduciary Account Groupe
Governmental Fund Types Proprietary Fund Types Fund Type General Totals
Special Debt Capital Special Internal Trust and General Long-Term (Memorandum Only)
General Revenue Service Profecte Assessments Enterprise Service Agency Fixed Aesete Debt 1986 1985
ASSETS
Cash and short-term investments $11,379,432 $2,465,395 $ - $12,205,273 $348,390 $ 6,699,277 $ 586,144 $ 677,597 $ - $ - $ 34,361,508 $ 33,744,908
Receivables (net of allowance for
uncollectible):
Taxes and assessments (Note 6) 1,158,884 131,275 - - 499,695 - - 2,433,029 - - 4,222,883 3,993,518
Customer and trade - - - - - 1,488,382 - - - - 1,488,382 1,601,089
Other City funds (Note 19) 20,738 942 - - 4 28,885 - 70,829 - - 121,398 70,231
Government agencies 577,862 2,692,193 - - - 86,604 - 1,681 - - 3,358,340 4,014,834
Other 159,919 14,234 - 61,406 3,070 35,218 359 11,515 - - 285,801 263,919
Inventory 14,911 - - - - 537,690 292,656 - - - 845,257 848,861
Prepaid items 55,468 92,689 - 1,350 - - 1,419 - - - 150,926 119,552
Restricted assets (Note 7):
Ceeh and short-term investments - - 224,506 - - 14,732,774 - - - - 14,957,280 16,129,029
Receivables:
Taxes - - 405,313 - - - - - - - 405,313 439,796
Government agencies 184,811 - - - - - - - - - 184,811 46,012
Other - - - - - 71,834 - - - - 71,834 358,222
Land and betterments - - - - - 21,121,139 206,769 - 14,152,913 - 35,480,821 35,334,446
Buildings, systems and improvements - - - - - 55,221,725 4,008,948 - 13,128,409 - 72,359,082 67,792,008
Machinery and equipment - - - - - 2,412,547 - - 3,000,072 - 5,412,619 5,687,838
Furniture and fixtures - - - - - 55,125 6,234 - 783,352 - 844,711 797,297
Motor vehicles end equipment - - - - - 7,366 12,089,076 - 150,555 - 12,246,997 10,543,760
Construction in progress - - - - - 5,238,882 - - 832,441 - 6,071,323 2,849,185
Accumulated depreciation - - - - - ( 27,665,100) ( 5,927,114) - - - ( 33,592,214) ( 28,046,911)
Amount available for retirement of bonds - - - - - - - - - 245,043 245,043 235,914
Amount to be provided for the retirement
N of capital leases - - - - - - - - - 460,634 460,634 743,775
Amount to be provided for accrued
vacation and eick leave - - - - - - - - - 2,678,937 2,678,937 2,621,467
Amount to be provided for the
retirement of bond. - - - - - - - - - 22,294,957 22,294,957 21,634,086
Amount to be provided for claims and judgments - - - - - - - - - 103,773 103,773 23,677
Deferred durge■ - - - - - 729,944 - - - - 729,944 669,019
Other - - - - - - - - - 37,500
Total assets 013,552,025 15,396,728 1629,819 512,268,109 9851,159 $80,802,292 $11,264,491 13,194,651 $32,047,742 $25,783,344 6185.790.360 6182,553,032
The accompanying Notes are an integral part of these financial statements.
CITY OF WICHITA FALLS, TEXAS EXHIBIT A-1
(Page 2 of 2)
COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS (CONY D.)
SEPTEMBER 30, 1986
WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1985
Fiduciary Account Groups
Governmental Fund Types Proprietary Fund Types Fund Type General Totals
Special Debt Capital Special Internal Trust and General Long-Term (Memorandum Only)
General Revenue Service Projects Assessments Enterprise Service Agency Fixed Assets Debt 1986 1985
LIABILITIES AND FUND EQUITY
Liabilities:
Bank overdraft $ - $ 214,775 $ - $ - $ - $ 52,020 5 - S - S - $ - $ 266,795 $ 191,334
Accounts payable - trade 589,388 40,495 - 50,388 - 401,117 160,332 438,734 - - 1,680,454 1,181,681
Accrued payroll 681,354 14,840 - - - 316,641 80,376 - - - 1,093,211 992,117
Accrued vacation and sick leave - - - - - - - - - 2,678,937 2,678,937 2,621,467
Payable to other City funds (Note 19) 36,971 1,072 - 18,747 - 11,386 2,286 50,936 - - 121,398 70,231
Payable to government agencies 30,813 - - - - 7 _,807 2,643,935 - - 2,682,555 2,326,786
Other liabilities 507,942 5,897 - 78,036 16 60,526 - 9,802 - - 662,219 671,601
Deferred revenue 1,091,611 - - - - _ _ _ - - 1,091,611 1,181,536
Capital leases payable - - - - - _ _ _ - 460,634 460,634 743,775
Claims and judgments payable - - - - - _ _ _ - 103,773 103,773 23,677
Payable from restricted assets:
Contracts and trade - - - - - 239,402 - - - - 239,402 463,053
Revenue bonds (Note 15) - - - - - 415,000 - - - - 415,000 460,000
Accrued interest - revenue bonds - - - - - 472,570 - - - - 472,570 322,964
Matured bonds and interest payable - - - - - 3,000 - - - - 3,000 3,000
Deferred revenue - - 384,776 - 499,695 50,000 - - - - 934,471 1,121,256
General obligation bonds payable (Note 15) - - - - - _ _ _ - 22,540,000 22,540,000 21,870,000
Payable to U.S. Government (Note 12) - - - - - 1,124,339 - - - - 1,124,339 1,139,253
Revenue bonds payable (Note 15) - - - - - 24,010,000 - - - - 24,010,000 19,535,000
Other long-term liabilities:
Deferred revenue - 72,343 - - - _ _ _ - - 72,343 37,500
Customer deposits- payable from
restricted assets - - - - - 870,_172 - - - - 870,172 777.732
W Total liabilities 2,938,079 349,422 384,776 14 717,1 499,711 28,0 80 33,9 242,994 3,143,407 - 25,783,344 61,522.884 55.733.963
Fund equity:
Contributed capital - - - - - 21,457,771 11,693,909 - - - 33,151,680 23,721,264
Investment in general fixed assets - - - - - _ _ _
32,047,742 - 32,047,742 41,242,095
Retained earnings:
Reserved for revenue bond debt service - - - - - 2,941,853 - - - - 2,941,853 2,281,604
Unreserved (Note 20) - - - - - 28,368,688 ( 672,412) - - - 27,696,276 28,690,028
Fund balances:
Reserved for encumbrances 1,126,170 1,549,008 - 862,571 - _ _ _ _ - 3,537,749 3,270,456
Reserved for inventory and prepaid items 70,379 92,689 - - - - _ _ - - 163,068 406,433
Unreserved:
Designated for:
Self-insurance (Note 11) 1,250,000 - - - - _ _ _ - - 1,250,000 1,000,000
Subsequent years expenditures - 2,897,397 - 11,258,367 351,448 - - 51,244 - - 14,558,456 16,412,857
Debt service - - 245,043 - - - - _ - - 245,043 235,914
Undesignated 8,167,397 508,212 - - - - - - - - 8,675,609 9.558.418
Total fund equity 10,613,946 5,047,306 245,043 12,120,938 351,448 52,768,312 11,021,497 51,244 32047, ,742 - 124,267,476 126.819.069
Total liabilities and fund equity $13,552,025 55,396,728 5629,819 $12,268,109 $851,159 $80,802,292 $11,264,491 $3,194,651 $32,047,742 525,783,344 $185.790.360 $182.553.032
The accompanying Notes are an integral part of these financial statements.
CITY OF WICHITA FALLS, TEXAS EXHIBIT A-2
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1986
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
Fiduciary
Governmental Fund Types Fund Type Totals
Special Debt Capital Special Expendable (Memorandum Only)
General Revenue Service Projects Assessments Trust 1986 1985
Revenues:
Taxes (Note 6) $21,943,688 $ 551,990 $ 2,654,730 $ - $ - $ - $25,150,408 $25,095,109
Special assessments - - - - 36,960 - 36,960 109,799
Charges for services 1,117,348 - - - - - 1,117,348 1,904,610
Licenses and permits 418,823 - - - - - 418,823 463,613
Fines 836,851 - - - - - 836,851 815,148
Intergovernmental revenue 479,325 3,622,433 - - - - 4,101,758 3,370,634
Contributions - - - - - 1,678,147 1,678,147 1,214,932
Miscellaneous revenue 1,348,003 602,160 76,572 883,010 28,725 79 2,938,549 3,353,636
Total revenues 26,144,038 4,776,583 2,731,302 883,010 65,685 1,678,226 36,278,844 36,327,481
Expenditures:
Current:
Administrative services
division 4,895,221 1,816,529 - - - 1,672,468 8,384,218 7,697,924
Police division 7,422,813 - - - - - 7,422,813 6,357,917
Fire division 4,601,651 - - - - - 4,601,651 4,923,585
Parks and recreation
division 2,396,365 - - - - - 2,396,365 2,566,444
Accounting/finance division 525,034 - - - - - 525,034 503,270
Planning division 405,519 - - - - - 405,519 339,011
Public works division 5,220,861 - - - - - 5,220,861 4,751,428
Health division 1,732,984 - - - - - 1,732,984 1,655,368
Traffic and transportation
division 1,276,928 - - - - - 1,276,928 1,381,583
Capital outlay - 15,032 - 2,741,600 - - 2,756,632 906,811
Debt service:
Principal retirement - - - - - - - 1,855,000
Interest and paying agent fees - - 904,357 - - - 904,357 1,263,084
Bond refunding expenditures - - - - - - - 145,476
Total expenditures 28,477,376 1,831,561 904,357 2,741,600 - 1,672,468 35,627,362 34,346,901
Excess of revenues over (under)
expenditures ( 2,333,338) 2,945,022 1,826,945 ( 1,858,590) 65,685 5,758 651,482 1,980,580
Other financing sources (uses):
Operating transfers in 836,143 60,870 200,000 - - - 1,097,013 1,097,631
Operating transfers out ( 896,418) ( 60,870) - - - - ( 957,288) ( 148,968)
Contributions from (by)
operating grants (Note 5) 1,961,258 ( 2,864,453) - - - - ( 903,195) ( 503,207)
Proceeds of refunding
bonds (net) - - 22,169,613 - - - 22,169,613 21,323,250
Payment to refunded bond
escrow agent - - ( 24,187,429) - - - ( 24,187,429) ( 13,428,787)
Total other financing
sources (uses) 1,900,983 ( 2,864,453) ( 1,817,816) - - - ( 2,781,286) 8,339,919
Excess of revenues and other
sources over (under)
expenditures and other uses ( 432,355) 80,569 9,129 ( 1,858,590) 65,685 5,758 ( 2,129,804) 10,320,499
Fund balance - beginning 11,370,650 4,966,737 235,914 13,979,528 285,763 45,486 30,884,078 20,965,047
Residual equity transfer
(Note 4) ( 324,349) - - - - - ( 324,349) ( 401,468)
Fund balance - ending $10,613,946 $5,047,306 $ 245,043 $12,120,938 $351,448 $ 51,244 $28,429,925 $30,884,078
The accompanying Notes are an integral part of these financial statements.
EXHIBIT A-3
CITY OF WICHITA FALLS, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1986
Totals
General Fund Special Revenue Fund Debt Service Fund (Memorandum Only)
Variance - Variance - Variance - Variance -
Favorable Favorable Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues:
Taxes $21,812,258 $21,943,688 $ 131,430 $ 490,500 $ 551,990 $ 61,490 $2,507,910 $ 2,654,730 $ 146,820 $24,810,668 $25,150,408 $ 339,740
Charges for services 1,223,528 1,117,348 ( 106,180) - - - - - - 1,223,528 1,117,348 ( 106,180)
Licenses and permits 406,318 418,823 12,505 - - - - - - 406,318 418,823 12,505
Fines 879,000 836,851 ( 42,149) - - - - - - 879,000 836,851 ( 42,149)
Intergovernmental revenue 370,522 479,325 108,803 2,429,848 3,622,433 1,192,585 - - - 2,800,370 4,101,758 1,301,388
Miscellaneous revenue 1,211,085 1,348,003 136,918 494,580 602,160 107,580 - 76,572 76,572 1,705,665 2,026,735 321,070
Total revenues 25,902,711 26,144,038 241,327 3,414,928 4,776,583 1,361,655 2,507,910 2,731,302 223,392 31,825,549 33,651,923 1,826,374
Expenditures:
Current:
Administrative services
division 5,532,547 4,895,221 637,326 2,158,914 1,816,529 342,385 - - - 7,691,461 6,711,750 979,711
Police division 7,504,576 7,422,813 81,763 - - - - - - 7,504,576 7,422,813 81,763
Fire division 4,601,922 4,601,651 271 - - - - - - 4,601,922 4,601,651 271
Parks and recreation division 2,685,017 2,396,365 288,652 - - - - - - 2,685,017 2,396,365 288,652
Accounting/finance division 566,750 525,034 41,716 - - - - - - 566,750 525,034 41,716
Planning division 456,994 405,519 51,475 - - - - - - 456,994 405,519 51,475
Public works division 5,730,504 5,220,861 509,643 - - - - - - 5,730,504 5,220,861 509,643
Health division 1,827,171 1,732,984 94,187 - - - - - - 1,827,171 1,732,984 94,187
Traffic and transportation
divison 1,524,397 1,276,928 247,469 - - - - - - 1,524,397 1,276,928 247,469
Capital outlay - - - 68,304 15,032 53,272 - - - 68,304 15,032 53,272
Debt service:
111 Principal retirement - - - - - - 770,000 - 770,000 770,000 - 770,000
Interest and paying
agent fees - - - - - - 1,829,115 904,357 924,758 1,829,115 904,357 924,758
Total expenditures 30,429,878 28,477,376 1,952,502 2,227,218 1,831,561 395,657 2,599.115 904,357 1,694,758 35,256,211 31,213,294 4,042,917
Excess of revenues over (under)
expenditures ( 4,527,167) ( 2,333,338) 2,193,829 1,187,710 2,945,022 1,757,312 ( 91.205) 1,826.945 1,918,150 ( 3,430.662) 2,438.629 5,869,291
Other financing sources (uses):
Operating transfers in 836,143 836,143 - 19,000 - ( 19,000) - 200,000 200,000 855,143 1,036,143 181,000
Operating transfers out ( 886,221) ( 896,418) ( 10,197) - - - - - - ( 886,221) ( 896,418) ( 10,197)
Contributions from (by)
operating grants 1,961,258 1,961,258 - ( 2,864,453) ( 2,864,453) - - - - ( 903,195) ( 903,195) -
Proceeds of refunding
bonds (net) - - - - - - - 22,169,613 22,169,613 - 22,169,613 22,169,613
Payment to refunded bond
escrow agent - - ( - - - - - ( 24,187.429) ( 24,187,429) - ( 24,187,429) ( 24,187,429)
Total other financing
sources (uses) 1,911,180 1,900,983 ( 10,197) ( 2,845,453) ( 2,864,453) ( 19,000) - ( 1,817,816) ( 1,817,816) ( 934,273) ( 2,781,286) ( 1,847,013)
Excess of revenues and other sources
over (under) expenditures and other
uses ($ 2,615,987) ( 432,355) $2,183,632 ($1,657,743) 80,569 $1,738,312 ($ 91.205) 9,129 $ 100,334 ($ 4,364,935) ( 342,657) $ 4,022,278
Fund balance - beginning 11,370,650 4,966,737 235,914 16,573,301
Residual equity transfer ( 324,349) - - ( 324,349)
Fund balance - ending $10,613,946 $5,047,306 $ 245,043 $15,906,295
The accompanying Notea 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, 1986
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
Proprietary Fund Types Totals
Internal (Memorandum Only)
Enterprise Service 1986 1985
Operating revenues:
Charges for services $16,480,405 $ - $16,480,405 $15,364,884
Rents, concessions and other 271 ,996 3,435,989 3,707,985 279,748
Total operating revenues 16,752,401 3,435,989 20, 188,390 15,644,632
Operating expenses:
Personnel services 4,759,678 1 ,037,704 5,797,382 4,468, 117
Supplies and materials 538,497 370,248 908,745 821 ,530
°N Maintenance and repairs 4,355,656 1 ,617,232 5,972,888 2,493,695
Utilities and other services 2,279,618 76,392 2,356,010 1 ,989,245
Insurance and contract support 541 ,037 1 ,295 542,332 585,556
Depreciation and amortization 1 ,550,401 1 ,456,715 3,007, 116 1 ,884,887
Total operating expenses 14,024,887 4,559,586 18,584,473 12,243,030
Operating income (loss) 2,727,514 ( 1 , 123,597) 1 ,603,917 3,401 ,602
Non-operating revenues (expenses) :
Interest income 1 ,496,340 16,359 1 ,512,699 1 ,799,054
Gain (loss) on sale of fixed assets 18,723 ( 79,945) ( 61 ,222) ( 34,067)
Interest expense ( 227,857) - ( 227,857) ( 1 ,472,818)
Contributions from operating
grants 586,324 - 586,324 617, 173
Total non-operating revenues (expenses) 1 ,873,530 ( 63,586) 1 ,809,944 909,342
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, 1986
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
Proprietary Fund Types Totals
Internal (Memorandum Only)
Enterprise Service 1986 1985
Income (loss) before other financing
sources and (uses) 4,601 ,044 ( 1 , 187, 183) 3,413,861 4,310,944
Other financing sources (uses) :
Operating transfers in 216,347 514,771 731 , 118 148,968
Operating transfers out ( 870,843) - ( 870,843) ( 1 ,097,631 )
Total other financing sources (uses) ( 654,496) 514,771 ( 139,725) ( 948,663)
Net income (loss) before extraordinary items 3,946,548 ( 672,412) 3,274, 136 3,362,281
Extraordinary items:
Gain (loss) on extinguishment of debt
(Note 17) ( 1 ,888,761 ) - ( 1 ,888,761 ) 855,539
Transfer to restricted water and sewer
escrow account (Note 17) ( 1 ,247,358) - ( 1 ,247,358) -
Total extraordinary items ( 3, 136, 119) - ( 3, 136, 119) 855,539
Net income (loss) 810,429 ( 672,412) 138,017 4,217,820
Retained earnings, beginning 30,971 ,632 - 30,971 ,632 26,753,812
Residual equity transfer to Internal
Service Fund (Note 4) ( 471 ,520) - ( 471 ,520) -
Retained earnings (deficit) , ending $31 ,310,541 ($ 672,412) $30,638, 129 $30,971 ,632
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, 1986
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
Proprietary Fund Types Totals
Internal (Memorandum Only)
Enterprise Service 1986 1985
Sources of funds:
Net income (loss) before extraordinary items $ 3,946,548 ($ 672,412) $ 3,274,136 $ 3,362,281
Items not requiring (providing)
working capital:
Depreciation and amortization 1,550,401 1,456,715 3,007,116 1,884,887
Loss on sale of assets 265 79,945 80,210 34,067
Working capital provided by operations
excluding extraordinary items 5,497,214 864,248 6,361 ,462 5,281 ,235
Extraordinary items ( 3,136,119) - ( 3,136,119) 855,539
Working capital provided by operations 2,361 ,095 864,248 3,225,343 6,136,774
Contributed capital 787,017 133,703 920,720 408,178
Proceeds from sale of assets - 61 ,394 61 ,394 19,929
Proceeds from issuance of bonds 24,405,000 - 24,405,000 19,955,000
Customer deposits, net 92,440 - 92,440 123,690
Transfer of assets to Internal Service Fund 3,947,009 - 3,947,009 -
co Contributions from equity transfers - 11,560,206 11 ,560,206 5,446,223
Fixed assets traded in 704 - 704 70,565
Decrease in restricted assets 1 ,467,257 - 1 ,467,257 -
Total sources of funds 33,060,522 12,619,551 45,680,073 32,160,359
Application of funds:
Deferred charges 99,144 - 99,144 693,236
Purchase of fixed assets 7,711 ,337 746,110 8,457,447 4,010,719
Retirement of revenue bonds 19,930,000 - 19,930,000 6,880,000
Payment of U.S. Government obligation 14,914 - 14,914 14,444
Residual equity transfer to
Internal Service Fund 3,947,009 - 3,947,009 -
Transfer of assets from General Fund - - - 5,096,191
Transfer of assets from Enterprise Funds - 3,947,009 3,947,009 -
Transfer of assets from General Fixed
Asset Account Group - 7,288,848 7,288,848 -
Decrease in current liabilities payable
from restricted assets 231 ,277 - 231 ,277 -
Total application of funds 31 ,933,681 11 ,981 ,967 43,915,648 16,694,590
Net increase in working capital $ 1 ,126,841 $ 637,584 $ 1 ,764,425 $15,465,769
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, 1986
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
Proprietary Fund Types Totals
Internal (Memorandum Only)
Enterprise Service 1986 1985
Summary of net changes in working capital:
Increase (decrease) in current assets:
Cash and short-term investments $ 1,277,706 $ 586, 144 $ 1,863,850 $15,723,389
Receivables - trade ( 112,707) 359 ( 112,348) ( 101 ,139)
Receivables - other City funds 26,630 - 26,630 ( 11 ,864)
Receivables - government agencies ( 63,054) - ( 63,054) ( 32,980)
qp
Inventory 36,620 292,656 329,276 42,828
Prepaid expense and other ( 6,474) 1 ,419 ( 5,055) 242,939
Net increase in current assets 1 , 158,721 880,578 2,039,299 15,863, 173
Increase (decrease) in current liabilities:
Bank overdraft ( 85,233) - ( 85,233) 5,436
Accounts payable - trade 99, 146 160,332 259,478 463,412
Payable to other City funds ( 3,643) 2,286 ( 1 ,357) 11,675
Revenue bonds - current maturities - - - ( 460,000)
Other 21 ,610 80,376 101 ,986 376,881
Net increase in current liabilities 31 ,880 242,994 274,874 397,404
Net increase in working capital $ 1 , 126,841 $' 637,584 $ 1 ,764,425 $15,465,769
The accompanying Notes are an integral part of these financial statements.
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1986
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 govern-
ment organizations for inclusion in the reporting entity's general purpose
financial statements, 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 identified and evaluated were:
Employee Benefit Trust Fund
Firemen's Relief and Retirement Board
Housing Authority of the City of Wichita Falls, Texas
Wichita County/City Hospital Board
Of the four organizations evaluated, only the first one, the Employee Fenefit
Trust Fund, met all of the criteria listed above and is included in the City's
general purpose financial statements.
Although the three remaining organizations evaluated met one or more of the
above criteria, City management determined that they should all be excluded as
part of the reporting entity. These organizations represent separate govern-
mental 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 "mcral
responsibility" for debt.
10
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the City conform to generally accepted
accounting principles (GAAP) applicable to state and local governments. Gener-
ally accepted accounting principles for local governments include those prin-
ciples prescribed by the Governmental Accounting Standards Board (GASB), which
includes all statements and interpretations of the National Council on Govern-
mental 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.
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 appropriation and expen-
diture.
General Fund - The General Fund is the general operating fund of the
City. This fund is used to account for all financial resources except
those required to be accounted for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the
proceeds of specific revenue sources (other than special assessments,
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.
11
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 1986
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
Governmental Funds (Cont'd. )
Capital Project Funds - Capital Project Funds are used to account for
financial resources to be used for the acquisition or constructicn of
major capital facilities (other than those financed by proprietary funds
and trust funds) .
Special Assessment Funds - Special Assessment Funds are used to account
for the financing of public improvements or services deemed to benefit
the properties against which special assessments are levied.
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 privw.te
sector. The measurement focus is upon capital maintenance and upon deter-
mination of net income, financial position, and changes in financia:.
position.
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 :he costs
(expenses including depreciation) of providing goods or services to the
general public on a continuing basis be financed or recovered pr:.marily
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 3 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 Fund - This fund is purely custodial (assets equal liabilities)
and thus does not involve measurement of results of operations.
12
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D. )
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 Obligations Group - This account group is established
to account for long-term liabilities of the City other than those
accounted for in the proprietary funds.
Basis of Accounting
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 prin-
cipal 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 forfeits,
and miscellaneous revenues are recorded as revenues when received in cash
because they are generally not measurable until actually received. Investment
earnings are recorded on the accrual basis in all funds.
Paving assessments are recorded as revenues in the fiscal period when the
assessment becomes both measurable and available to finance expenditures of the
fiscal period. Assessment revenues are considered measurable and available
when collected by the City and recognized as revenue at that time. Payments
for paving assessments received in advance of the levy are reflected as
deferred revenue.
13
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 1986
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D. )
Basis of Accounting (Cont'd. )
Intergovernmental revenues are recorded on a basis applicable to the legal and
contractual requirements of the various individual grant programs. Inter-
governmental 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 aeon the
expenditures or expenses recorded.
2. If monies are virtually unrestricted and irrevocable, except for failure
to comply with required 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
accounting period in which they are earned and become measurable. Expenses are
recorded in the accounting period incurred, if measurable.
Budget Policies
The City Council adheres to the following procedures in establishing the
budgets reflected in the financial statements:
1 . Prior to the beginning of each fiscal year, the City Manager submits to
the City Council a proposed budget for all City departments, divisions
and offices for the fiscal year beginning on the following October 1 .
The operating budget which represents the financial plan for the ensuing
fiscal year includes proposed expenditures and the means of financing
them.
2. Public hearings are conducted at which all interested persons' comments
concerning the budget are heard.
3. The budget for the next fiscal year is legally enacted by the City
Council through passage of an ordinance by October 1 each year.
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
unemcumbered appropriation balances or portions thereof from one depart-
ment or agency to another. The reported budgetary data has beer revised
for amendments legally authorized during the year.
14
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D. )
Budget Policies (Cont'd. )
5. Annual budgets are legally adopted for all governmental funds. However,
the budget for the Capital Projects Funds is legally adopted for speci-
fic projects and may exceed one year. Accordingly, the annual budget
as reflected in the comparison of budget to actual amounts is an annual-
ized budget, formerly approved by the City Council, but used for
budgetary execution and management control.
6. At the close of each fiscal year any unencumbered appropriation balance
(appropriations including prior year encumbrances less current year
expenditures and encumbrances) lapse or revert to the undesignated fund
balance. The unencumbered appropriation balance in the Capital Projects
Funds does not lapse at year end.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is employed as an extension of formal
budgetary control in the General, Special Revenue, and Capital Projects funds.
Encumbrances outstanding at year end are reported as reservations of fund
balance for subsequent year expenditures and are reappropriated in subsequent
year budgetary accounts.
Investments
Investments are stated at cost, which approximates market.
Inventory
Inventories of the General and Proprietary funds consist of supplies and
various materials used for the maintenance of fixed assets. The "consumption"
method is used to account for these inventories. Under this method, inventory
acquisitions are recorded in inventory accounts initially and charged as expen-
ditures when used. Inventories are stated at average cost.
Property, Plant and Equipment - Proprietary Funds
Property, 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 property, 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:
15
CITY OF WICHITA FALLS , TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D. )
Property, Plant and Equipment - Proprietary Funds (Cont'd. )
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 fund types 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 Water and Sewer Fund fixed assets, interest is capitalized on construction
costs incurred during the year at an average interest rate on borrowed funds
(water and sewer revenue bonds) in accordance with generally accepted
accounting principles. No interest is capitalized on fixed assets constructed
by proprietary funds which are financed with general obligation bonds b:cause
such interest expenditures are reported in the Debt Service Funds.
Contributions of funds from Federal, State, or local grants restricted for the
purpose of purchasing property, plant and equipment are recorded as equity
contributions when received. The cost of water and sewer lines installed by
developers is valued by the contractor and recorded as contributed capital in
the Water and Sewer Fund. Depreciation on contributed assets from Federal and
State governments is recorded as an expense in the statement of operations and
is closed to the related contribution account.
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 esti-
mated 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.
16
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
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 recipients such as the Federal
Revenue Sharing and Community Development Block grants are recorded in Special
Revenue funds pending a determination of the programs or activities to be
financed by such sources. Revenues are recognized when they become measurable
and available, and expenditures are recorded in the fund benefited by such
expenditures.
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.
The City has also legally reserved a portion of the General Fund balance to
provide available funds for unasserted or potential general liability claims
against the City.
Designations of unreserved fund balances in governmental funds indicate City
management's tentative plans for use of financial resources in a future period.
Transactions Between Funds
Transactions between funds that would be treated as revenues, expenditures, or
expenses if they involved organizations external to the governmental unit are
accounted for as revenues, expenditures, or expenses in the funds involved.
Transactions which constitute reimbursements to a fund for expenditures or
expenses initially made from that fund which were properly applicable to
another fund are recorded as expenditures or expenses in the fund that is
reimbursed.
17
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D. )
Transactions Between Funds (Cont'd. )
Non-recurring or non-routine transfers of equity between funds are treated as
residual equity transfers and are reported as additions to or deduction:; from
the fund balance of governmental funds. Residual equity transfers to p oprie-
tary funds are treated as contributed capital, and such transfers from ;proprie-
tary funds are reported as reductions of retained earnings or contributed
capital as is appropriate in the circumstances. All other transfers are
treated as operating transfers and are included in the results of operations of
both governmental and proprietary funds.
Vacation and Sick Leave
All permanent full-time employees earn vacation time and sick leave. Vacation
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
of sick leave days.
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 mairtained
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 it 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.
18
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D. )
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 consolida-
tion. Interfund eliminations have not been made in arriving at the totals.
Note 3 - ACCOUNTING CHANGES AND RESTATEMENT OF PRIOR YEARS
Changes Accounted for on a Prospective Basis
During the year ended September 30, 1986, the City implemented the following
accounting changes, accounted for on a prospective basis.
Effective October 1 , 1985, the City established a fleet maintenance Internal
Service Fund and transferred to it the Central Services division of the General
Fund as well as substantially all of the City's vehicle and equipment fleet.
This newly-created fund is charged with the ownership of the fleet as well as
the funding of the operation, maintenance and replacement of the City's vehicle
and equipment fleet. The vehicles and equipment were transferred from the
General Fixed Assets Group of Accounts and the Enterprise Funds through a resi-
dual equity transfer. The amounts transferred were the net book value of the
assets at October 1 , 1985. For those assets transferred from the General Fixed
Assets Group of Accounts, the net book value was that value which would have
resulted if depreciation had been taken from the date the asset was placed in
service through October 1 , 1985.
After the transfer of the City's vehicle and equipment fleet to Central
Services, the criteria used for estimating useful lives of fixed assets was
changed. Such changes in useful lives was applied retroactively to those
assets transferred to Central Services and was applied to all fixed assets
acquired subsequent to the creation of the Internal Service Fund. Generally,
the effect on the Internal Service Fund was a decrease in useful lives of fixed
assets and an increase in current year depreciation expense of $171 ,762 over
the amount of depreciation expense that would have been incurred had the useful
lives not been changed.
19
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 3 - ACCOUNTING CHANGES AND RESTATEMENT OF PRIOR YEARS (CONT'D. )
Changes Resulting in Restatement of Prior Year
At September 30, 1986, various changes were made to the City's financial state-
ments which required restatement of prior year financial information.
In prior years, the City' s Department of Housing and Urban Development Section
8 Housing Grant was reported as an agency fund. The current year's financial
statements report this grant in the Special Revenue Fund in accordance with
NCGA Statement 2, "Grant, Entitlements, and Shared Revenue Accounting and
Reporting by State and Local Governments". The comparative totals for the year
ended September 30, 1985 have been restated to reflect this change. The effect
of this restatement on September 30, 1985 balances was to decrease botl Trust
and Agency Fund assets and liabilities by $150,092.
At September 30, 1986, it was concluded that the City' s Internal Revenue Code
Section 457 deferred compensation plan balances be displayed in an agency fund
of the City. The comparative totals for the year ended September 30, 1985 were
restated to reflect this change. The effect of this restatement on September
30, 1985 balances is to increase both the agency fund's assets and liabilities
by $260, 142.
Note 4 - ESTABLISHMENT OF INTERNAL SERVICE FUND
As further disclosed in Footnote 3 to the financial statements, the Ci-:y
Council authorized the creation of an Internal Service Fund effective October
1 , 1985. The transfer of assets to this fund was as follows:
Transfer From Description Amou-it
General Fund Fund balance $ 321,349
Transit Fund Contributed capital 531,429
Retained earnings 51 ,520
585,949
Sanitation Fund Contributed capital 2,598,467
Retained earnings 420,000
3,018,467
Water and Sewer Fund Contributed capital 342,593
General Fixed Asset Contributed capital 7,288,848
Account Group (net of
allowable depreciation)
Total transfers to Internal
Service Fund $11 ,560,206
20
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 4 - ESTABLISHMENT OF INTERNAL SERVICE FUND (CONT'D. )
The above fund balance and retained earnings are shown as a residual equity
transfer while the above contributed capital balances are shown as a reduction
in contributed capital in the fund from which the assets were transferred. All
of the above are shown in the Internal Service Fund as contributed capital.
Note 5 - COLLECTIONS FROM CATEGORICAL BLOCK GRANTS AND FEDERAL REVENUE SHARING
Categorical grant expenditures for the years ended September 30, 1986 and 1985,
respectively, have been reflected in the following City funds:
1986 1985
General Fund $1 ,961 ,258 $3,344,227
Enterprise Funds:
Airport Fund 51 ,000 3,224
Transit Fund 135,330 152,000
Sanitation Fund 4,600 459, 144
Water and Sewer Fund 395,394 2,805
Total Enterprise Funds 586,324 617, 173
Total $2,547,582 $3,961 ,400
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 $ - $ - $ 241 ,834 $ 202,891
Supplies and materials - - 5,459 3,717
Maintenance 1 ,810,213 941 ,598 2,662,415 961 ,213
Utilities and other
services 232, 186 18,996 169,641 137,645
Capital outlay 790,032 182,995 1 ,066,353 415,398
Total $2,832,431 $1 , 143,589 $4, 145,702 $1 ,720,864
( 1 ) Budgeted amounts as shown include current and prior year appropriations to
be carried forward for future use.
21
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 6 - PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of the prior
January 1 . Taxes are levied on October 1, and become delinquent after January
31 , unless the half-payment option is elected, in which case one-half of the
tax is due November 30, and the balance the following June 30.
The City is permitted by its Home Rule Charter to levy taxes up to $2.25 per
$100 of assessed valuation for general governmental services including the
payment of principal and interest on long-term debt. The combined tax rate to
finance general governmental services for the year ended September 30, 1986 was
$.6287 per $100 which means that the City has a tax margin of $1 .6213 per $100,
and could raise up to $36,101 ,328 additional tax revenue a year from the
present assessed valuation of $2,226,690,210 before the limit is reached.
The City serves as agent in assessing and collecting ad valorem taxes fcr 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.
$2,433,029 and $2,169,112 at September 30, 1986 and 1985, respectively, and are
reflected in the Tax Collection Fund in the agency fund group.
Note 7 - RESTRICTED ASSETS
Restricted assets in certain Enterprise Funds, held for specific purposes in
accordance with bond ordinances or other legal restrictions, are comprir;ed of
the following:
Total
Airport Water and Enterpri:5e
Fund Sewer Fund Funds
Debt Service:
Cash and short-term investments $48,579 $ 2,893,274 $ 2,941 , 353
Capital Improvements:
Cash and short-term investments - 10,920,749 10,920, 749
Receivables - 71 ,834 71 ,334
Customer Deposits:
Cash and short-term investments - 870, 172 870, 172
Total restricted assets $48,579 $14,756,029 $14,804,508
22
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 8 - PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION
A summary of proprietary fund type property, plant and equipment at September 30, 1986 follows:
Total
Water and Internal Proprietary
Airport Transit Sanitation Sewer Service Funds
Land and betterments $1 ,468,175 $ 39 ,814 $ 655,704 $18,957,446 $ 206,769 $ 21 ,327,908
Buildings, systems,
and improvements 1 ,451 ,662 626,868 2, 190,972 50,952,223 4,008,948 59,230,673
Machinery and equipment 9,267 60,801 89,580 2,252,899 - 2,412,547
Furniture and fixtures 11 ,937 5,456 4,750 32,982 6,234 61 ,359
Motor vehicles and
equipment - - 2,896 4,470 12,089,076 12,096,442
t, Construction in progress - - - 5,238,882 - 5,238,882
w 2,941 ,041 732,939 2,943,902 77,438,902 16,311 ,027 100,367,811
Less accumulated
depreciation ( 805,491 ) ( 39,217) ( 238,442) ( 26,581 ,950) ( 5,927, 114) ( 33,592,214)
Net plant and
equipment $2,135,550 $693,722 $2,705,460 $50,856,952 $10,383,913 $ 66,775,597
The following table summarizes the changes in the components of the General Fixed Assets Account Group:
Balance Balance
October 1 , Transfers September 30,
1985 Additions Deletions In (Out) 1986
Land and betterments $14,265,768 $ 99,803 $ 2,259 ($ 210,399) $14, 152,913
Buildings and improvements 17,297,295 84,580 194,950 ( 4,058,516) 13,128,409
Machinery and equipment 3,297,957 539,790 16,004 ( 821 ,671 ) 3,000,072
Furniture and fixtures 756, 107 43,715 11 ,185 ( 5,285) 783,352
Motor vehicles and equipment 5,618,353 - - ( 5,467,798) 150,555
Construction in progress 6,615 825,826 - - 832,441
Total $41 ,242,095 $1 ,593,714 $224,398 ($10,563,669) $32,047,742
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 9 - EMPLOYEE RETIREMENT PLANS
City employees, except for firemen, are covered by the Texas Municipal Retire-
ment System. The Texas Municipal Retirement System contribution was 5.80% and
5.35% of each participant's salary in 1986 and 1985, respectively. The
actuarial cost method used by the Texas Municipal Retirement System in per-
forming the actuarial valuation was the unit credit actuarial cost method.
Prior service liability of $4, 144, 166 is funded by the City annually over a
period of 25 years and is included in the contribution rate.
Accumulated plan benefit and asset information, estimated as of the following
dates by consulting actuaries, is as follows:
December 31 ,
1985 1984
Actuarial present value of
accumulated plan benefits:
Vested $16,907,583 $14,379,711
Non-vested 4,373,078 3,751 , 175
Total $21 ,280,661 $18,130,886
Actuarial present value of assets
available for benefits $17, 136,495 $14,902,005
There have been no changes in the actuarial cost method or the actuarial
assumptions since the previous valuation. The assumptions were developed from
the experience of the System. The withdrawal and payroll increase assumptions
also reflect the experience of the City. The payroll was assumed to increase
5% per annum in future years.
Because of the money purchase nature of the system, there was no need for an
interest rate assumption in determing the actuarial present value of accrued
benefits for nonretired employees. For annuitants, the actuarial present value
of plan benefits was calculated using a 5% interest rate assumption.
Firemen are covered by a self-administered Firemen's Relief and Retirement
Fund. The Firemen's Relief and Retirement Fund contribution was 9.0% and 7.5%
of each participant's salary in 1986 and 1985, respectively. The actuarial
cost method used to value the Firemen's Relief and Retirement Fund was the
entry-age-actuarial cost method. The unfunded accrued liability at April 30,
1986 of $2,949,325 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.
24
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 9 - EMPLOYEE RETIREMENT PLANS (CONT'D. )
Accumulated plan benefit and asset information, estimated as of the following
dates by consulting actuaries, is as follows:
April 30, March 31 ,
1986 1983
Actuarial present value of
accumulated plan benefits:
Vested $6,876,701 $4,538,970
Non-vested 183,749 179,781
Total $7,060,450 $4,718,751
Actuarial present value of assets
available for benefits $6, 127,702 $4,045,578
The actuarial present value of plan benefits was calculated using a 7.5%
interest rate assumption. The carrying value of the Firemen's Relief and
Retirement Fund assets was $6,475,698 and $5,682,974 at September 30, 1986 and
1985, respectively.
The City's contributions, to both plans, were charged to operations as
follows for the years ended September 30:
1986 1985
General Fund $ 949,742 $729,434
Special Revenue Funds:
Civic/Community Promotion Fund 6,881 6, 186
Section 8 Housing Fund 3,703 3,011
Total Special Revenue Funds 10,584 9, 197
Enterprise Funds:
Airport Fund 1 ,285 1 ,083
Transit Fund 12,906 10,065
Sanitation Fund 75,534 64,076
Water and Sewer Fund 130,089 119,201
Total Enterprise Funds 219,814 194,425
Internal Service Fund 47, 140
Total City contribution $1 ,227,280 $933,056
Note 10 - DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accor-
dance 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.
25
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 10 - DEFERRED COMPENSATION PLAN (CONT'D. )
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. City management believes that
it is unlikely that it will use plan assets to satisfy the claims of general
creditors in the future.
Note 11 - SELF-INSURANCE
Due to problems incurred in obtaining adequate insurance coverage in prior
years, the City has elected to designate $1 ,250,000 of fund balance in the
General Fund for self-insurance. This designation is to be increased by
$250,000 per year until it totals $3,000,000. The purpose of such self-
insurance is to obtain cost savings by eliminating premium payments, allowing
the City to invest this savings, and allowing the City to defer the payment of
claims until they actually arise.
This designation of fund balance was established to pay future general
liability, automobile liability, and police professional claims in which the
City is uninsured, and to cover all deductibles on claims in which the City is
insured.
Note 12 - 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, including interest at the rate of 3.253%.
The City's share of the total costs ($5,795,952) is reflected in fixed assets,
and the City's share of the U.S. Government funded portion ($4,479, 135) is
reflected as contributed capital in the Water and Sewer Enterprise Fund.
The remaining unpaid debt is classified as follows:
September 30,
1986 1985
Long-term $1 ,124,339 $1 ,139,253
Current portion in other
liabilities 14,914 14,444
Total $1 , 139,253 $1 , 153,697
26
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 1986
Note 13 - 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 $10,247 and $8,376
for the fiscal years ended September 30, 1986 and 1985, respectively.
Note 14 - DESCRIPTION OF LEASING ARRANGEMENTS
Computer and other equipment leases, expiring in 1987 and 1989, a vehicle lease
expiring in 1988, and a lease of land expiring in 1991 , are classified as
capital leases and are included in the General Fixed Asset account group and
General Long-Term Debt account group.
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 1986 1985
Equipment $ 810,755 $ 810,755
Motor vehicles 339,245 339,245
Land 50,000 50,000
$1 ,200,000 $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, 1986:
27
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 14 - DESCRIPTION OF LEASING ARRANGEMENTS (CONT'D. )
Capital Leases (Cont'd. )
Year ending September 30:
1987 $271 ,641
1988 203,776
1989 6,634
1990 5,000
1991 5,000
Total minimum lease payments $492,051
Less: Amount representing interest ( 1 ) ( 31 ,417)
Present value of minimum lease payments (2) $460,634
Operating Leases
The following is a schedule by years of future minimum rental payments required
under operating leases that have initial or remaining noncancellable lease
terms in excess of one year as of September 30, 1986:
Year ending September 30:
1987 $ 92,812
1988 12,698
1989 9,748
1990 1
1991 1
Later years 17
Total minimum payments required (3) $115,277
The following schedule shows the composition of total rental expenses for all
operating leases:
Year Ending
September 30,
1986 1985
Minimum rentals $ 93,799 $78,363
Contingent rentals 10,247 8,376
Total rentals $104,046 $86,739
28
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 14 - DESCRIPTION OF LEASING ARRANGEMENTS (CONT'D. )
( 1 ) Amount necessary to reduce net minimum lease payments to present value
calculated at the City's incremental borrowing rate at the inception of
the leases.
(2) Reflected in the general long-term debt account group as lease obliga-
tions 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 15 - LONG-TERM DEBT
The following is a summary of changes in long-term obligations of the City for
the year ended September 30 , 1986:
Debt Obligations
Outstanding New Obligations Outstanding
October 1 , Obligations Retired September 30,
1985 Incurred or Refunded 1986
General Obligation Bonds
payable $21 ,870,000 $22,540,000 $21 ,870,000 $22,540,000
Revenue Bonds payable 19,995,000 24,405,000 19,975,000 24,425,000
Accrued vacation and sick
leave (Note 22) 2,621 ,467 57,470 - 2,678,937
Capital leases payable
(Note 14) 743,775 - 283, 141 460,634
Claims and judgements
payable (Note 22) 23,677 103,773 23,677 103,773
Payable to U.S. Govt.
(Note 12) 1 , 153,697 - 14,444 1 , 139,253
Total $46,407,616 $47, 106,243 $42, 166,262 $51 ,347,597
Bonds payable at September 30, 1986 are comprised of the following individual
issues:
29
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 15 - LONG-TERM DEBT (CONT'D. )
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Payments Authorized at 9/30/86
General Obligation Bonds:
1986 General Obligation
Refunding Bonds 5.00% to 9/01/06 $305,000 to $22,540,000 $22,540,000
8. 15% 2, 115,000
Total General
Obligation Bonds 22,540,000 22,540,000
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 24,405,000
8.30% 2,265,000
Total Water and Sewer
Revenue Bonds 24,405,000 24,405,000
Airport Revenue Bonds:
1967 Airport Revenue 4.5% 4/15/87 5,000 to 130,000 20,000
20,000
Total Airport Revenue
Bonds 130,000 20,000
Total Revenue Bonds 24,535,000 24,425,000
Total All Bonds $47,075,000 $46,965,000
The net revenue of the Water and Sewer Fund and Airport Fund are pledged as colla-
teral for the revenue bonds outstanding in the respective funds.
The annual requirements to pay principal and interest on the bond obligations out-
standing as of September 30, 1985, are as follows:
30
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 15 - LONG-TERM DEBT (CONT'D. )
Year Ending General
September 30 Obligation Revenue Total
1987 $ 2,285,711 $ 2,477, 183 $ 4,762,894
1988 2,287,502 2,457,972 4,745,474
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
1992-1996 11 ,434,786 12,269,140 23,703,926
1997-2001 11 ,438,404 12,268,560 23,706,964
2002-2007 11 ,428, 123 14,714,656 26, 142,779
$45,731 ,696 $51 ,547,395 $97,279,091
$245,043 is available in the Debt Service Fund to serve the general obligation
bonds.
There are limitations and restrictions contained in the various bond inden-
tures. The City is in compliance with all significant provisions for such
limitations and restrictions.
Note 16 - GENERAL OBLIGATION REFUNDING BONDS
On July 1 , 1986, the City issued $22,540,000 in 1986 General Obligation
Refunding Bonds with an average interest rate of 7.78% to advance refund
$21 ,870,000 of the 1985 General Obligation Bonds with an average interest rate
of 9.15%. The entire proceeds of $22,169,613 (net of $507, 150 in underwriting
fees and $136,763 in accrued interest) plus an additional $2,017,816 of
interest and sinking fund monies were used to purchase U.S. Government Securi-
ties, which were deposited in an irrevocable trust with an escrow agent to
provide for all future debt service payments on the 1985 General Obligation
Bonds. As a result, the 1985 General Obligation Bonds are considered to be
defeased and the liability for those bonds has been removed from the general
long-term debt account group.
This refunding transaction will result in the City making additional debt
service payments of $7,555,920 and will result in an economic loss on a present
value basis of $890,367 over the life of the 1986 General Obligation Refunding
Bonds. However, the City's bond consultants have advised that:
( 1 ) This advance refunding will reduce the City's annual general obli-
gation debt service by approximately $285,000 per annum until the
year 2001 .
31
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 16 - GENERAL OBLIGATION REFUNDING BONDS (CONT'D. )
(2) The reduction in annual debt service requirements will help offset
temporary losses in tax revenues resulting from energy-related
decreases in property tax values and the permanent loss of revenue
sharing funds.
(3) The advance refunding will enable current tax rates for debt service
to be lowered by an estimated $.013 per $100 assessed valuation and
require lower tax rate adjustments in the future.
(4) The refunding will place the City's debt service schedule in a better
position to accomodate future financing requirements.
Note 17 - WATER AND SEWER REFUNDING REVENUE BONDS
On July 1 , 1986, the City issued $24,405,000 in 1986 Water and Sewer Refunding
Bonds with an average interest rate of 8.01% to advance refund $19,955,000 of
the 1984 Water and Sewer Revenue Bonds with an average interest rate of 10.41%.
The entire proceeds of $24,009,162 (net of $549, 113 in underwriting fees and
$153,275 in accrued interest) plus an additional $1 ,247,358 of interest and
sinking fund monies were used to purchase U.S. Government securities, which
were deposited in an irrevocable trust with an escrow agent to provide for all
future debt service payments on the 1984 Water and Sewer Revenue Bonds. As a
result, the 1984 Water and Sewer Revenue Bonds are considered to be defeased
and the liability for those bonds has been removed from the Water and Sewer
Fund's financial statements.
This refunding transaction resulted in the accounting recognition of an extra-
ordinary loss in the Water and Sewer Fund of $3,136,119 for the year ended
September 30, 1986. This loss is composed of a $1 ,888,761 extraordinary loss
due to the bond refunding and a $1 ,247,358 extraordinary loss due to the
required transfer of monies to a restricted water and sewer escrow account to
provide for future debt service payments on the refunded bonds. This advance
refunding will result in the City making additional debt service payments of
$7, 124,892 and will result in an economic loss on a present value basis of
$638,758 over the life of the 1986 Water and Sewer Refunding Bonds. However,
the City's bond consultants have advised that this advance refunding reduced
the overall annual debt service requirements of the City's outstanding water
and sewer bonds which helped to finance an additional $1 ,500,000 in new bonds.
32
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 18 - 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, 1986, the
following outstanding bonds are considered defeased:
Amount
Outstanding at
September 30, 1986
General Obligation Bonds:
1956 Wichita County Water Control
and Improvement District No. 5 $ 40,000
1959 Wichita County Water Control
and Improvement District No. 6 78,000
1959 Wichita County Water Control
and Improvement District No. 4 80,000
1963 General Obligation Bonds 240,000
1968 General Obligation Bonds 175,000
1968-A General Obligation Bonds 750,000
1970 General Obligation Bonds 500,000
1971 General Obligation Bonds 625,000
1980 General Obligation Bonds 2,925,000
1981 General Obligation Bonds 4,050,000
1982 General Obligation Bonds 2,500,000
1985 General Obligation Refunding
and Improvement Bonds 21 , 110,000
Total Defeased General Obligation Bonds 33,073,000
Revenue Bonds:
1963 Water and Sewer Revenue Bonds 450,000
1966 Water and Sewer Revenue Bonds 695,000
1966-A Water and Sewer Revenue Bonds 375,000
1968 Water and Sewer Revenue Bonds 250,000
1973 Water and Sewer Revenue Bonds 700,000
1978 Water and Sewer Revenue Bonds 720,000
1980 Water and Sewer Revenue Bonds 750,000
1981 Water and Sewer Revenue Bonds 870,000
1982 Water and Sewer Revenue Bonds 710,000
1984 Water and Sewer Revenue Bonds 19,515,000
Total Defeased Revenue Bonds 25,035,000
Total Defeased Bonds $58, 108,000
33
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 19 - INTERFUND RECEIVABLE AND PAYABLE BALANCES
Individual fund interfund receivable and payable balances at September 30, 1986
are:
Interfund Interfund
Receivables Payables
General Fund $ 20,738 $ 36,971
Special Revenue Funds:
Civic/Community Promotion Fund 378
Community Development Block Grant Fund 470
Special Revenue 188
Section 8 Housing Fund 754 224
Capital Projects Funds:
1982 General Improvements 18,747
Special Assessment Fund 4
Enterprise Funds:
Airport Fund 75 59
Transit Fund 715
Sanitation Fund 3,825
Water and Sewer Fund 28,810 6,787
Internal Service Fund 2,286
Trust and Agency Funds:
Social Security 48,851
Payroll Fund 1 ,597 4,003
Tax Collection Fund 367
Accounts Payable Fund 20,014 46,933
Total $121 ,398 $121 ,398
Note 20 - FUND DEFICITS
Enterprise Funds
At September 30, 1986, the Airport Fund had a deficit retained earnings balance
of $69,022. The intent of management is that this deficit be recovered by
transfers from other funds during the subsequent fiscal year.
At September 30, 1986, the Transit Fund had a deficit retained earnings balance
of $128,055. The intent of management is that this deficit also be recovered
by transfers from other funds during the subsequent fiscal year.
34
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 20 - FUND DEFICITS (CONT'D. )
Internal Service Fund
At September 30, 1986, the Internal Service Fund had a deficit retained earnings
balance of $672,412. The intent of management is that this deficit be recovered
by increasing rates charged for services rendered to other departments.
Note 21 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains four enterprise funds which provide transportation, sanitation,
water and sewer services. Segment information for the year ended September 30,
1986 is as follows:
Total
Water Enterprise
Airport Transit Sanitation and Sewer Funds
Operating revenues $ 181 ,711 $154,634 $4,690, 107 $11 ,725,949 $16,752,401
Depreciation and
amortization 91 ,698 12,422 53,375 1 ,392,906 1 ,550,401
Operating income
(loss) (210,662) (317,232) 1 ,447,747 1 ,807,661 2,727,514
Contributions from
operating grants 51 ,000 135,330 4,600 395,394 586,324
Operating transfers in
(out) , net - 216,347 (638,143) (232,700) (654,496)
Net income (loss) (150,239) 34,445 930, 112 (3,889) 810,429
Current capital contri-
butions and transfers - (85,546) (2,560,530) 382,583 (2,263,493)
Plant and equipment:
Additions 2,934 80,522 551 , 118 7,076,763 7,711 ,337
Deletions - - 2,247 7,078 9,325
Transfers out - 435,011 4, 114,723 856,836 5,406,570
Net working capital 44,647 (26,295) 1 ,822,887 6, 185,320 8,026,559
Total assets 2,267,904 746,359 4,664,056 73,123,973 80,802,292
Bonds and other
long-term liabilities - - - 26,004,511 26,004,511
Total equity 2,208,363 667,427 4,528,347 45,364, 175 52,768,312
35
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 22 - 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 $2,778,937 at September 30, 1986. 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.
Workmens' Compensation Claims
The City is liable for workmens' compensation claims arising in various General
Fund departments of $103,773 as of September 30, 1986. This amount is recorded
as a liability in the General Long-Term Debt account group.
The City is also liable for workmens' compensation claims arising in the Enter-
prise Funds of $50, 163 as of September 30, 1986. 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 Two
entered into a sixty-year contract with the West Texas Utilities Company and
agreed to provide an adequate water supply for the Company's use in generating
power upon completion of the Company's construction of a power plant adjacent
to the Lake Kemp-Lake Diversion System.
The significant terms of the contract provide for standby charges to be paid to
the City and the Wichita County Water Improvement District Number Two in equal
amounts. The City received $150,000 annually from the date of this contract
through the current year with future payments to be received as follows.
Minimum annual charges shall begin when water is actually consumed for the
production of electricity upon completion of the first generation unit or
January 1 , 1987, whichever is sooner, in the following amounts and time sche-
dule:
36
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 22 - COMMITMENTS AND CONTINGENCIES (CONT'D. )
Contract Commitment With West Texas Utilities Company (Cont'd. )
City' s Share
1 . Date of completion of first generation
unit or January 1 , 1987, whichever is
sooner, and for each of the next five
years $250,000
2. For each of the next five years 375,000
3. For all years thereafter until end of
contract 500,000
For water actually consumed, the Company shall pay the City and Wichita County
Water Improvement District Number Two equally, at the Base Rate of twenty-three
($.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 is
terminated, the Company is required to make a maximum termination payment equal
to the standby charges which would have become due and payable during the
following twenty-four month period.
Construction Contracts
At September 30, 1986, several long-term construction contracts were outstan-
ding in which the City has committed to but has not accrued any expenditure 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 $ 732, 175
Special Revenue Funds:
Federal Revenue Sharing Fund $ 321 ,211
Community Development Block Grant 1 ,227,611
Total Special Revenue Funds 1 ,548,822
Capital Projects Funds:
1980 General Improvements 7,790
1982 General Improvements 7 ,000
1985 Holliday Creek Project 847,782
Total Capital Projects Funds 862,572
37
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 1986
Note 22 - COMMITMENTS AND CONTINGENCIES (CONT'D. )
Construction Contracts (Cont'd. )
Enterprise Funds:
Airport Fund 21 ,854
Sanitation Fund 238,700
Water and Sewer Fund 1 ,330,707
Total Enterprise Funds 1 ,591 ,261
Internal Service Fund 127,516
Total contract commitments $4,862,346
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. Prin-
cipal amoung 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
regulations. Such compliance is subject to review and audit by the grantors
and their representatives.
In the opinion of management, the City has complied with all requirements.
However, since such programs are subject to future audit or review, the possi-
bility of disallowed expenditures exists. In the event of any disallowance of
claimed expenditures, the City expects the resulting liability to be
immaterial.
Note 23 - SUBSEQUENT EVENTS
On October 17 , 1986, the United States Congress passed a bill, which was subse-
quently signed into law by the President of the United States, agreeing to pro-
vide the services of the U.S. Army Corps of Engineers in expanding the flood
protection to be provided by the Holliday Creek Flood Control project. The
City of Wichita Falls will benefit from the participation of U.S. Army Corps of
Engineers and from other cost sharing agreements which have not yet been
approved by the U.S. Government. The City has already committed substantial
funds to the project as of September 30, 1986, but management does not antici-
pate the need to commit additional City resources to complete the project.
38
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D. )
SEPTEMBER 30, 1986
Note 23 - SUBSEQUENT EVENTS (CONT'D. )
On November 18, 1986, the City appropriated $2,000,000 from the General Fund
for the purchase of land in and along an area of the Wichita River.
On December 29, 1986, the City also appropriated $1 ,500,000 from the West Texas
Electric Fund and $2,337,600 from the Water and Sewer Revenue Fund for the pur-
chase of land to be used in connection with the eventual construction of Lake
Ringgold. The lake is being planned as a fresh water reservoir for the City of
Wichita Falls and the surrounding area. As the lake is still in the planning
stages, no date to begin construction has been determined.
39
THIS PAGE IS INTENTIONALLY LEFT BLANK.
COMBINING MD 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; Planning; and Central Services through September 30, 1985.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
EXHIBIT B-1
CITY OF WICHITA FALLS, TEXAS
GENERAL FUND
BALANCE SHEET
SEPTEMBER 30, 1986 AND 1985
1986 1985
ASSETS
Cash and short-term investments $11 ,379,432 $11 ,681 ,274
Prepaid items 55,468 39,991
Receivables:
Taxes and assessments (less $437 ,446
and $338,873 allowance for uncollectible
accounts) 1 , 158,884 1 ,173,932
Other City funds 20,738 4,954
Government agencies 577,862 684, 185
Other 159,919 205,144
Inventory 14,911 347,791
Restricted assets:
Receivable from government agencies 184,811 46,012
Total assets $13,552,025 $14, 183,283
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable - trade $ 589,388 $ 454,794
Accrued payroll 681 ,354 680,623
Payable to other City funds 36,971 45,370
Payable to government agencies 30,813 27, 190
Other liabilities 507,942 493, 140
Deferred revenue 1 ,091 ,611 1 , 111 ,516
Total liabilities 2,938,079 2,812,633
Fund balance:
Reserved for encumbrances 1 , 126,170 870,695
Reserved for inventory and prepaid items 70,379 387,782
Designated for self-insurance 1 ,250,000 1 ,000,000
Undesignated 8, 167,397 9, 112, 173
Total fund balance 10,613,946 11 ,370,650
Total liabilities and fund balance $13,552,025 $14, 183,283
The accompanying Notes are an integral part of these financial statements.
40
EXHIBIT B-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, 1986
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1985
1986
Variance -
Favorable 1985
Budget Actual (Unfavorable) Actual
Revenues:
Taxes:
Ad valorem taxes $11 ,730,264 $11 ,809,728 $ 79,464 $11 ,419,825
Penalties and interest 130,000 180,828 50,828 139,227
City sales tax 6,700,000 6,927,796 227,796 6,639, 193
Franchise taxes 3,040,994 2,807,488 ( 233,506) 2,909,037
Other taxes 211 ,000 217,848 6,848 221 ,521
Total taxes 21 ,812,258 21 ,943,688 131 ,430 21 ,328,803
Charges for services:
Golf, tennis and
recreation fees 287,280 97,087 ( 190, 193) 190,303
Tax collection fees 115,000 118,330 3,330 133,906
Other service charges 821 ,248 901 ,931 80,683 1 ,580,401
Total charges for
services 1 ,223,528 1 , 117,348 ( 106,180) 1 ,904,610
Licenses and permits:
Building permits 145,000 118,012 ( 26,988) 158,990
Electrical and plumbing 91 ,000 78,236 ( 12,764) 108,646
Health and animal control 110,423 146,217 35,794 111 ,663
Other licenses and permits 59,895 76,358 16,463 84,314
Total licenses and
permits 406,318 418,823 12,505 463,613
Fines:
Municipal Court 863,000 817,333 ( 45,667) 797,006
Library 16,000 19,518 3,518 18, 142
Total fines 879,000 836,851 ( 42, 149) 815, 148
Intergovernmental revenue:
Operating grants 218,553 329,286 110,733 293,531
Wichita Falls School
District 151 ,969 150,039 ( 1 ,930) 149,483
Total intergovernmental
revenue 370,522 479,325 108,803 443,014
The accompanying Notes are an integral part of these financial statements.
41
EXHIBIT B-2
(Page 2 of 4)
CITY OF WICHITA FALLS, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (CONT'D.) -
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1986
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1985
1986
Variance -
Favorable 1985
Budget Actual (Unfavorable) Actual
Revenues (Cont'd. ) :
Miscellaneous revenue:
Parking meters 3,600 3,173 ( 427) 3,565
Rentals and concessions 111 ,735 119,778 8,043 135,870
Interest 949,500 980,326 30,826 1 ,219,036
Sale of fixed assets 49,500 21 ,458 ( 28,042) 131 , 192
Other 96,750 223,268 126,518 148, 120
Total miscellaneous
revenue 1 ,211 ,085 1 ,348,003 136,918 1 ,637,783
Total revenues 25,902,711 26, 144,038 241 ,327 26,592,971
Expenditures:
Administrative services
division:
Mayor and Board of Alderman 44,434 32,060 12,374 34,960
City Manager 280,437 273,788 6,649 280,449
Legal 253,331 251 ,373 1 ,958 244,858
Personnel 170,981 165,648 5,333 150,487
City Clerk 78,329 73,977 4,352 61 ,903
Martin Luther King Center 141 ,386 137, 139 4,247 142,334
Farmer's Market 28,772 28, 196 576 20,394
Library 421 ,003 357,013 63,990 290,679
Property Management 43,665 43,538 127 34,261
Data Processing 1 ,057,432 999,522 57,910 1 , 112,957
Community Information 85,632 74,715 10,917 49,143
Nondepartmental 2, 157,403 1 ,726,929 430,474 1 ,354,596
Municipal Court 318,491 306,066 12,425 306,083
Risk Management 72,134 67,962 4,172 90,721
Building Maintenance 379, 117 357,295 21 ,822 386,980
Central Garage - - - 1 ,008,244
Total administrative
services division 5,532,547 4,895,221 637,326 5,569,049
Police division:
Police 7,504,576 7,422,813 81 ,763 6,357,917
The accompanying Notes are an integral part of these financial statements.
42
EXHIBIT B-2
(Page 3 of 4)
CITY OF WICHITA FALLS, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (CONT'D. ) -
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1986
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1985
1986
Variance -
Favorable 1985
Budget Actual (Unfavorable) Actual
Expenditures (Cont'd. ) :
Fire division:
Fire 4,601 ,922 4,601 ,651 271 4,923,585
Parks and recreation division:
Recreation 420,937 392,789 28,148 408,724
Park maintenance 1 ,782,003 1 ,633,430 148,573 1 ,571 , 188
Golf 293,453 213,933 79,520 435, 191
Cemetery 188,624 156,213 32,411 151 ,341
Total parks and
recreation division 2,685,017 2,396,365 288,652 2,566,444
Accounting/finance division:
Accounting/finance 329, 123 288,108 41 ,015 266,091
Tax 164,311 164,012 299 169,513
Purchasing 73,316 72,914 402 67,666
Total accounting/
finance division 566,750 525,034 41 ,716 503,270
Planning division:
Planning 456,994 405,519 51 ,475 339,011
Public works division:
Engineering 1 ,614,261 1 ,289,943 324,318 685, 188
Inspection 723, 115 706,612 16,503 847,957
Street 3,393, 128 3,224,306 168,822 3,218,283
Total public works
division 5,730,504 5,220,861 509,643 4,751 ,428
Health division:
Administration 381 ,012 361 ,020 19,992 335,099
Nursing 603,342 594,377 8,965 567, 119
Air and water pollution 154,772 150,224 4,548 145,602
Laboratory 119,279 116,626 2,653 117,384
General environment 141 ,686 120,989 20,697 109,290
Food and vector control 258,419 233,059 25,360 233,058
Animal control 168,661 156,689 11 ,972 147,816
Total health division 1 ,827, 171 1 ,732,984 94, 187 1 ,655,368
The accompanying Notes are an integral part of these financial statements.
43
EXHIBIT B-2
(Page 4 of 4)
CITY OF WICHITA FALLS, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (CONT'D.) -
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1986
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1985
1986
Variance -
Favorable 1985
Budget Actual (Unfavorable) Actual
Expenditures (Cont'd. ) :
Traffic and transportation
division:
Traffic engineering 1 ,457,963 1 ,246,981 210,982 1 ,303,682
Parking meters 66,434 29,947 36,487 77,901
Total traffic and
transportation
division 1 ,524,397 1 ,276,928 247,469 1 ,381 ,583
Total expenditures 30,429,878 28,477,376 1 ,952,502 28,047,655
Excess of revenues over
(under) expenditures ( 4,527, 167) ( 2,333,338) 2, 193,829 ( 1 ,454,684)
Other financing sources (uses) :
Operating transfers in 836, 143 836, 143 - 1 ,097,631
Operating transfers out ( 886,221 ) ( 896,418) ( 10, 197) ( 148,968)
Contributions from operating
grants 1 ,961 ,258 1 ,961 ,258 - 3,344,227
Total other financing
sources (uses) 1 ,911 , 180 1 ,900,983 ( 10, 197) 4,292,890
Excess of revenues and other
sources over (under)
expenditures and other uses ($ 2,615,987) ( 432,355) $2, 183,632 2,838,206
Fund balance - beginning 11 ,370,650 8,933,912
Residual equity transfer ( 324,349) ( 401 ,468)
Fuhd balance - ending $10,613,946 $11 ,370,650
The accompanying Notes are an integral part of these financial statements.
44
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 special assessment, expendable trusts or for major capital
projects) that are legally restricted to expenditure for specific purposes.
Six 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 Activities
Center.
Hotel/Motel Tax Fund
The Hotel/Motel Tax Fund accounts for revenues derived from an
occupancy tax and 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.
EXHIBIT C-1
CITY OF WICHITA FALLS, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1986
WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1985
Civic/ Hotel/ Community Totals
Revenue Community Motel Development Special Section 8 1985
Sharing Promotion Tax Block Grant Revenue Housing 1986 (Restated)
ASSETS
Cash and short-term investments $1,718,391 $11,792 $376,164 $ - $359,048 $ - $2,465,395 $1,984,042
Receivables:
Taxes and assessments - - 131,275 - - - 131,275 110,718
Other City funds - - - - 188 754 942 -
Government agencies - - - 2,597,889 - 94,304 2,692,193 3,180,991
Other 8,835 3,632 773 - 994 - 14,234 5,942
Prepaid items - 188 - 18,000 837 73,664 92,689 79,561
Total assets $1,727,226 $15,612 $508,212 $2,615,889 $361,067 $168,722 $5,396,728 $5,361,254
LIABILITIES AND FUND BALANCE
Liabilities:
U1 Bank overdraft $ - $ $ - $ 124,055 $ - $ 90,720 $ 214,775 $ 54,081
Accounts payable - trade 2,455 9,743 - 21,079 6,461 757 40,495 118,496
Accrued payroll - 5,235 - 6,513 - 3,092 14,840 13,851
Payable to other City funds - 378 - 470 - 224 1,072 1,328
Payable to government agencies - - - - - - - 80,733
Other liabilities - - - 3,735 576 1,586 5,897 56,008
Deferred revenue - - - - - 72,343 72,343 9,110
Total liabilities 2,455 15,356 - 155,852 7,037 168,722 349,422 333,607
Fund balance:
Reserved for encumbrances 321,211 68 - 1,227,729 - - 1,549,008 1,601,852
Reserved for prepaid items - 188 - 18,000 837 73,664 92,689 79,561
Unreserved:
Designated for subsequent year
expenditures 1,403,560 - - 1,214,308 353,193 ( 73,664) 2,897,397 2,899,989
Undesignated - - 508,212 - - - 508,212 446,245
Total fund balance 1,724,771 256 508,212 2,460,037 354,030 -0- 5,047,306 5,027,647
Total liabilities and fund balance $1,727,226 $15,612 $508,212 $2,615,889 $361,067 $168,722 $5,396,728 $5,361,254
The accompanying Notes are an integral part of these financial statements.
CITY OF WICHITA FALLS, TEXAS EXHIBIT C-2
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1986
WITH Q)MPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
Totals
1986 1985
Civic/ Hotel/ Community Variance -
Revenue Community Motel Development Special Section 8 Favorable Actual
Sharing Promotion Tax Block Grant Revenue Housing Actual Budget (Unfavorable) (Restated)
Revenues:
Taxes:
Hotel/motel tax $ - $ - $550,265 $ - $ - $ - $ 550,265 $ 490,000 $ 60,265 $ 384,355
Penalty and interest - - 1,725 - - - 1,725 500 1,225 2,013
Total taxes - - 551,990 - - - 551,990 490.500 61.490 386.368
Intergovernmental revenue 1,199,273 - - 1,454,000 - 969,160 3,622,433 2,429,848 1,192,585 3,745,410
Miscellaneous revenue:
Fees and donations - - - - 237,125 - 237,125 239,896 ( 2,771) 225,553
Rents and concessions - 173,093 - - 21,107 - 194,200 214,116 ( 19,916) 225,183
Sale of fixed assets - - - - 2,075 - 2,075 - 2,075 43,802
Interest 87,842 1,541 20,710 - 21,056 2,000 133,149 40,156 92,993 190,383
Other - - - 35,199 412 - 35,611 412 35.199 159,967
Total miscellaneous
revenue 87,842 174,634 20,710 35,199 281,775 2,000 602,160 494,580 107,580 844,888
Total revenues 1,287,115 174,634 572,700 1,489,199 281,775 971,160 4,776,583 3,414,928 1,361,655 4,976,666
Expenditures:
Administrative services
division:
CN Personnel services - 159,557 - - - 93,513 253,070 265,749 12,679 243,686
Supplies and materials - 19,015 - - 19,806 790 39,611 96,383 56,772 49,770
Maintenance - 29,111 - - 23,711 984 53,806 265,557 211,751 120,342
Utilities and other
services - 88,938 382,945 - 123,785 874,374 1,470,042 1,531.225 61,183 1,231,398
Total administrative
services division - 296,621 382,945 - 167,302 969,661 1,816,529 2,158,914 342,385 1,645,196
Capital outlay - 5,545 - - 7,988 1,499 15,032 68,304 53,272 8,128
Total expenditures - 302,166 382,945 - 175,290 971,160 1,831,561 2,227,218 395,657 1,653,324
Excess of revenues over
(under) expenditures 1.287,115 ( 127,532) 189,755 1,489,199 106,485 - 2,945.022 1,187,710 1,757,312 3,323,342
Other financing sources (uses):
Operating transfers in - 60,870 - - - - 60,870 137,458 ( 76,588) -
Operating transfers out - - ( 60,870) - - - ( 60,870) ( 118,458) 57,588 -
Contributions from operating
grants ( 1,143,589) - - ( 1,720,864) - - ( 2,864,453) ( 2,864,453) - ( 3,847,434)
Total other financing
sources (uses) ( 1,143,589) 60,870 ( 60,870) ( 1,720,864) - - ( 2,864,453) ( 2,845,453) ( 19,000) ( 3.847,434)
Excess of revenues and other
financing sources over (under)
expenditures and uses 143,526 ( 66,662) 128,885 ( 231,665) 106,485 - 80,569 ($1.657.743) $1,738,312 ( 524,092)
Fund balance - beginning 1,581,245 66,918 379,327 2,691,702 247,545 - 4,966,737 5,490,829
Fund balance - ending $1,724,771 $ 256 $508,212 $2,460,037 $354,030 $ - $5,047,306 $4,966,737
The accompanying Notes are an integral part of these financial statements.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
DEBT SERVICE FUND
The Debt Service Fund, also known as Interest and Sinking Fund, is
established by ordinances authorizing the issuance of general obli-
gation 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 D-1
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE FUND
BALANCE SHEET
SEPTEMBER 30, 1986 AND 1985
1986 1985
ASSETS
Restricted assets:
Cash and short-term investments $224,506 $215,234
Receivables:
Taxes (net of allowance for uncollectible taxes
of $152,251 and $129,875) 405,313 439,796
Other - 152
Total assets $629,819 $655, 182
LIABILITIES AND FUND BALANCE
Liabilities payable from restricted assets:
Contracts and trade $ - $ 268
Deferred revenue 384,776 419,000
Total liabilities payable from
restricted assets 384,776 419,268
Fund balance:
Designated for debt service 245,043 235,914
Total liabilities and fund balance $629,819 $655, 182
The accompanying Notes are an integral part of these financial statements.
47
EXHIBIT D-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 , 1986
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1985
1986
Variance -
Favorable 1985
Budget Actual (Unfavorable) Actual
Revenues:
Taxes:
Ad valorem taxes $2,507,910 $ 2,654,730 $ 146,820 $ 3,379,938
Miscellaneous revenue - 76,572 76,572 295,427
Total revenues 2,507,910 2,731 ,302 223,392 3,675,365
Expenditures:
Principal retirement 770,000 - 770,000 1 ,855,000
Interest and paying
agent fees 1 ,829, 115 904,357 924,758 1 ,263,084
Bond refunding expenditures - - - 145,476
Total expenditures 2,599, 115 904,357 1 ,694,758 3,263,560
Excess of revenues over
(under) expenditures ( 91 ,205) 1 ,826,945 1 ,918, 150 411 ,805
Other financing sources (uses) :
Operating transfers in - 200,000 200,000 -
Proceeds of refunding
bonds (net) - 22, 169,613 22, 169,613 12,323,250
Payment to refunded bond
escrow agent (net) - ( 24, 187,429) ( 24, 187,429) ( 13,428,787)
Total other
financing sources
(uses) - ( 1 ,817,816) ( 1 ,817,816) ( 1 , 105,537)
Excess of revenues and other
sources over (under)
expenditures and other uses ($ 91 ,205) 9,129 $ 100,334 ( 693,732)
Fund balance - beginning 235,914 929,646
Fund balance - ending $ 245,043 $ 235,914
The accompanying Notes are an integral part of these financial statements.
48
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 five 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 include drainage improvements and the installation of traffic
control equipment.
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 include 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 include 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 include 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.
CITY OF WICHITA FALLS, TEXAS EXHIBIT E-1
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1986
WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1985
1985
1980 1981 1981 1982 Holliday
General C.O. General G.O. General General Creek Totals
Improvements Improvements Improvements Improvements Project 1986 1985
ASSETS
Cash and short-term
investments $1 , 165,534 $384,306 $1 ,582,330 $1 ,233,989 $7,839, 114 $12,205,273 $14,274,072
Receivables:
Other - 3,372 13,309 10,647 34, 158 61 ,486 10,873
Prepaid items - - - - 1 ,350 1 ,350 -
Total assets $1 , 165,534 $387,678 $1 ,595,639 $1 ,244,636 $7,874,622 $12,268, 109 $14,284,945
LIABILITIES AND
w
FUND BALANCE
Liabilities:
Accounts payable - trade $ 17,234 $ - $ - $ 1 ,000 $ 32, 154 $ 50,388 $ 277,045
Payable to other
City funds - - - 18,747 - 18,747 -
Other liabilities 20,926 10,000 - 4,250 42,860 78,036 28,372
Total liabilities 38, 160 10,000 - 23,997 75,014 147, 171 305,417
Fund balance:
Reserved for encumbrances 7,789 - - 7,000 847,782 862,571 797,909
Unreserved - designated
for subsequent years
expenditures 1 , 119,585 377,678 1 ,595,639 1 ,213,639 6,951 ,826 11 ,258,367 13, 181 ,619
Total fund balance 1 , 127,374 377,678 1 ,595,639 1 ,220,639 7,799,608 12, 120,938 13,979,528
Total liabilities and
fund balance $1 , 165,534 $387,678 $1 ,595,639 $1 ,244,636 $7,874,622 $12,268, 109 $14,284,945
The accompanying Notes are an integral part of these financial statements.
EXHIBIT E-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, 1986
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
1985
1980 1981 1981 1982 Holliday
General C.O. General G.O. General General Creek Totals
Improvements Improvements Improvements Improvements Proiect 1986 1985
Revenues:
Miscellaneous:
Interest $ 83,496 $ 30,669 $ 102,042 $ 86,176 $ 579,030 $ 881 ,413 $ 526,797
Other - - - 1,597 - 1,597 12,090
Total revenues 83,496 30,669 102,042 87,773 579,030 883,010 538,887
Expenditures:
Drainage improvements 252,800 - - - - 252,800 345,130
Park improvements - - - 109,186 - 109,186 230,904
Weeks Park golf and tennis
improvements - - - - - - 1,022
Central services complex - - - - - - 59,419
Traffic signals 3,619 - - 38,217 - 41,836 104,600
Irrigation systems - - - - - - 61,566
Street improvements - - 81,828 400,458 - 482,286 92,592
Library remodeling - - - 1,635 - 1,635 4,205
Ui Solid waste transfer station - 40,000 - - - 40,000 -
0 Storm drain construction - - 5,400 - - 5,400 -
Softball complex - - - 22,180 - 22,180 -
Holliday Creek improvements - - - - 1,786,277 1,786,277 -
Total expenditures 256,419 40,000 87,228 571,676 1,786,277 2,741,600 899,438
Excess of revenues over (under)
expenditures ( 172,923) ( 9,331) 14,814 ( 483,903) ( 1,207,247) ( 1,858,590) ( 360,551)
Other financing sources:
Proceeds of refunding
bonds (net) - - - - - - 9,000,000
Excess of revenues and other sources
over (under) expenditures ( 172,923) ( 9,331) 14,814 ( 483,903) ( 1,207,247) ( 1,858,590) 8,639,449
Fund balance - beginning 1,300,297 387,009 1,580,825 1,704,542 9,006,855 13,979,528 5,340,079
Fund balance - ending $1,127,374 $377,678 $1,595,639 $1,220,639 $7,799,608 $12,120,938 $13,979,528
The accompanying Notes are an integral part of these financial statements.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
SPECIAL ASSESSMENT FUND
The Special Assessment Fund is used to account for the financing of
public improvements deemed to benefit the properties against which
special assessments are levied. Street and sidewalk paving expendi-
tures and associated special assessments are accounted for in this
fund.
EXHIBIT F-1
CITY OF WICHITA FALLS, TEXAS
SPECIAL ASSESSMENT FUND
BALANCE SHEET
SEPTEMBER 30, 1986 AND 1985
1986 1985
ASSETS
Cash and short-term investments $348,390 $286,037
Receivables:
Paving assessments 499,695 539,756
Other City funds 4 -
Other 3,070 217
Total assets $851 , 159 $826,010
LIABILITIES AND FUND BALANCE
Liabilities:
Other liabilities $ 16 $ 491
Deferred revenue 499,695 539,756
Total liabilities 499,711 540,247
Fund balance:
Designated for subsequent years expenditures 351 ,448 285,763
Total liabilities and fund balance $851 , 159 $826,010
The accompanying Notes are an integral part of these financial statements.
51
EXHIBIT F-2
CITY OF WICHITA FALLS, TEXAS
SPECIAL ASSESSMENT FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 1986 AND 1985
1986 1985
Revenues:
Special assessments:
Streets $ 36,960 $109,799
Miscellaneous revenue:
Interest 28,725 38,534
Total revenues 65,685 148,333
Expenditures - -
Excess of revenues over expenditures 65,685 148,333
Fund balance - beginning 285,763 137,430
Fund balance - ending $351 ,448 $285,763
The accompanying Notes are an integral part of these financial statements.
52
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
billing and collection, debt service, extensions and improvements,
maintenance and operations, and customer deposits. The various funds
used to account for the different functions have been combined into
the Water and Sewer Fund as presented in the financial statements.
CITY OF WICHITA FALLS, TEXAS EXHIBIT G-1
(Page 1 of 2)
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1986
WITH OOMPARATIVE TOTALS AT SEPTEMBER 30, 1985
Water and Totals
Airport Transit Sanitation Sewer 1986 1985
ASSETS
Current assets:
Cash and short-term investments $ 30, 182 $ - $1 ,517, 175 $ 5, 151 ,920 $ 6,699,277 $ 5,421 ,571
Receivables:
Customer and trade 19,551 - 433,791 1 ,035,040 1 ,488,382 1 ,601 ,089
Other City funds 75 - - 28,810 28,885 2,255
Government agencies 33,967 52,637 - - 86,604 149,658
Other - - 7,630 27,588 35,218 41 ,692
Inventory - - - 537,690 537,690 501 ,070
Total current assets 83,775 52,637 1 ,958,596 6,781 ,048 8,876,056 7,717,335
Restricted assets:
Cash and short-term investments 48,579 - - 14,684, 195 14,732,774 15,913,795
w Other - - - 71 ,834 71 ,834 358,070
Total restricted assets 48,579 - - 14,756,029 14,804,608 16,271 ,865
Plant and equipment:
Land and betterments 1 ,468, 175 39,814 655,704 18,957,446 21 ,121 , 139 21 ,068,677
Buildings, systems and improvements 1 ,451 ,662 626,868 2, 190,972 50,952,223 55,221 ,725 50,494,713
Machinery and equipment 9,267 60,801 89,580 2,252,899 2,412,547 2,389,881
Furniture and fixtures 11 ,937 5,456 4,750 32,982 55,125 50, 193
Motor vehicles and equipment - - 2,896 4,470 7,366 4,916,405
Construction in progress - - - 5,238,882 5,238,882 2,842,570
2,941 ,041 732,939 2,943,902 77,438,902 84,056,784 81 ,762,439
Less accumulated depreciation ( 805,491 ) ( 39,217) ( 238,442) ( 26,581 ,950) ( 27,665, 100) ( 28,046,911 )
Total plant and equipment 2, 135,550 693,722 2,705,460 50,856,952 56,391 ,684 53,715,528
Other assets:
Deferred charges - - - 729,944 729,944 669,019
Other - - - - - 37,500
Total other assets - - - 729,944 729,944 706,519
Total assets $2,267,904 $746,359 $4,664,056 $73, 123,973 $80,802,292 $78,411 ,247
The accompanying Notes are an integral part of these financial statements.
EXHIBIT G-1
CITY OF WICHITA FALLS, TEXAS (Page 2 of 2)
ENTERPRISE FUNDS
COMBINING BALANCE SHEETS (CONT'D.)
SEPTEMBER 30, 1986
WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1985
Water and Totals
Airport Transit Sanitation Sewer 1986 1985
LIABILITIES AND FUND EQUITY
Current liabilities payable from
current assets:
Bank overdraft $ - $ 52,020 $ - $ - $ 52,020 $ 137,253
Accounts payable - trade 31,710 4,401 19,425 345,581 401,117 301,971
Accrued payroll 2,062 21,199 105,249 188,131 316,641 297,643
Other City funds 59 715 3,825 6,787 11,386 15,029
Government agencies - 597 7,210 - 7,807 7,430
Other liabilities 5,297 - - 55,229 60,526 58,291
Total current liabilities
payable from current assets 39,128 78,932 135,709 595,728 849,497 817,617
Current liabilities payable from
restricted assets:
Contracts and trade - - - 239,402 239,402 462,785
Revenue bonds - current maturities 20,000 - - 395,000 415,000 460,000
Accrued interest - revenue bonds 413 - - 472,157 472,570 322,964
Matured bonds and interest payable - - - 3,000 3,000 3,000
VI
ill. Deferred revenue - - - 50,000 50,000 162,500
Total current liabilities
payable from restricted assets 20,413 - - 1,159,559 1,179,972 1,411,249
Long-term liabilities:
Payable to U.S. Government - - - 1,124,339 1,124,339 1,139,253
Revenue bonds, less current maturities - - - 24,010,000 24,010,000 19,535,000
Deferred revenue - - - - - 37,500
Total long-term liabilities - - - 25,134,339 25,134,339 20,711,753
Long-term liabilities payable from
restricted assets:
Customer deposits - - - 870,172 870,172 777,732
Total liabilities 59,541 78,932 135,709 27,759,798 28,033,980 23,718,351
Fund equity:
Contributed capital 2,277,385 795,482 2,889,748 15,495,156 21,457,771 23,721,264
Retained earnings:
Reserved for revenue bond
debt service 48,579 - - 2,893,274 2,941,853 2,281,604
Unreserved ( 117,601) ( 128,055) 1,638,599 26,975,745 28,368,688 28,690,028
Total retained earnings
(deficit) ( 69,022) ( 128,055) 1,638,599 29,869,019 31,310,541 30,971,632
Total fund equity 2,208,363 667,427 4,528,347 45,364,175 52,768,312 54,692,896
Total liabilities and fund equity $2,267,904 $746,359 $4,664,056 $73,123,973 $80,802,292 $78,411,247
The accompanying Notes are an integral part of these financial statements.
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, 1986
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
Water and Totals
Airport Transit Sanitation Sewer 1986 1985
Operating revenues:
Charges for services $ 24,854 $154,634 $4,690,107 $11,610,810 $16,480,405 $15,364,884
Rents, concessions and other 156,857 - - 115,139 271,996 279,748
Total operating revenues 181,711 154,634 4,690,107 11,725,949 16,752,401 15,644,632
Operating expenses:
Personnel services 26,248 314,479 1,598,732 2,820,219 4,759,678 4,468,117
Supplies and materials 1,019 17,220 35,668 484,590 538,497 821,530
Maintenance and repairs 176,996 77,388 1,175,371 2,925,901 4,355,656 2,493,695
Utilities and other services 95,212 40,057 230,660 1,913,689 2,279,618 1,989,245
Insurance and contract support 1,200 10,300 148,554 380,983 541,037 585,556
Depreciation and amortization 91,698 12,422 53,375 1,392,906 1,550,401 1,884,887
Total operating expenses 392,373 471,866 3,242,360 9,918,288 14,024,887 12,243,030
Operating income (loss) ( 210,662) ( 317,232) 1,447,747 1,807,661 2,727,514 3,401,602
Non-operating revenues (expenses):
Interest income 10,110 - 115,102 1,371,128 1,496,340 1,799,054
Gain (loss) on sale of assets 800 - 806 17,117 18,723 ( 34,067)
Interest expense ( 1,487) - - ( 226,370) ( 227,857) ( 1,472,818)
Contributions from operating
grants 51,000 135,330 4,600 395,394 586,324 617,173
(J1 Total non-operating revenues
Ln (expenses) 60,423 135,330 120,508 1,557,269 1,873,530 909,342
Income (loss) before other financing
sources and (uses) ( 150,239) ( 181,902) 1,568,255 3,364,930 4,601,044 4,310,944
Other financing sources (uses):
Operating transfers in - 216,347 - - 216,347 148,968
Operating transfers out - - ( 638,143) ( 232,700) ( 870,843) ( 1.097,631)
Total other financing sources
(uses) - 216,347 ( 638,143) ( 232,700) ( 654,496) ( 948,663)
Net income (loss) before extraordinary
items ( 150,239) 34,445 930,112 3,132,230 3,946,548 3,362,281
Extraordinary items:
Gain (loss) on extinguishment of debt - - - ( 1,888,761) ( 1,888,761) 855,539
Transfer to restricted water and
sewer escrow account - - - ( 1,247,358) ( 1,247,358) -
Total extraordinary items - - - ( 3,136,119) ( 3,136.119) 855,539
Net income (loss) ( 150,239) 34,445 930,112 ( 3,889) 810,429 4,217,820
Retained earnings (deficit) - beginning 81,217 ( 110,980) 1,128,487 29,872,908 30,971,632 26,753,812
Residual equity transfer to
Internal Service Fund - ( 51,520) ( 420,000) - ( 471,520) -
Retained earnings (deficit) - ending ($ 69,022) ($128,055) $1,638,599 $29,869,019 $31,310,541 $30,971,632
The accompanying Notes are an integral part of these financial statements.
EXHIBIT G-3
CITY OF WICHITA FALLS, TEXAS (Page 1 of 2)
ENTERPRISE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 1986
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
Water and Totals
Airport Transit Sanitation Sewer 1986 1985
Sources of funds:
Net income (loss) before
extraordinary items ($ 150,239) $ 34,445 $ 930,112 $ 3,132,230 $ 3,946,548 $ 3,362,281
Items not requiring (providing)
working capital:
Depreciation and amortization 91,698 12,422 53,375 1,392,906 1,550,401 1,884,887
Loss on sale of assets - - - 265 265 34,067
Working capital provided (used) by
operations excluding extraordinary
items ( 58,541) 46,867 983,487 4,525,401 5,497,214 5,281,235
Extraordinary items - - - ( 3,136,119) ( 3,136,119) 855,539
Working capital provided (used) by
operations ( 58,541) 46,867 983,487 1,389,282 2,361 ,095 6,136,774
Contributed capital - 21,841 40,000 725,176 787,017 408,178
Proceeds from sale of assets - - - - - 19,929
Proceeds from issuance of bonds - - - 24,405,000 24,405,000 19,955,000
Customer deposits, net - - - 92,440 92,440 123,690
U'i Transfer of assets to Internal
rn Service Fund - 585,949 3,018,467 342,593 3,947,009 -
Contributions from equity transfers - - - - - 5,446,223
Fixed assets traded in - - 704 - 704 70,565
Decrease in restricted assets 9,013 - - 1,458,244 1,467,257 -
Total sources of funds ( 49,528) 654,657 4,042,658 28,412,735 33,060,522 32,160,359
Application of funds:
Deferred charges - - - 99,144 99,144 693,236
Purchase of fixed assets 2,934 80,522 551,118 7,076,763 7,711,337 4,010,719
Retirement of revenue bonds 20,000 - - 19,910,000 19,930,000 6,880,000
Payment of U.S. Government obligation - - - 14,914 14,914 14,444
Residual equity transfer to Internal
Service Fund - 585,949 3,018,467 342,593 3,947,009 -
Transfer of assets from General Fund - - - - - 5,096,191
Decrease in current liabilities payable
from restricted assets 412 - - 230,865 231,277 -
Total application of funds 23,346 666,471 3,569,585 27,674,279 31,933,681 16,694,590
Net increase (decrease) in working
capital ($ 72,874) ($ 11,814) $ 473,073 $ 738,456 $ 1,126,841 $15,465,769
The accompanying Notes are an integral part of these financial statements.
EXHIBIT G-3
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION (CONT'D. )
FOR THE YEAR ENDED SEPTEMBER 30, 1986
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
Water and Totals
Airport Transit Sanitation Sewer 1986 1985
Summary of net changes in working
capital:
Increase (decrease) in
current assets:
Cash and short-term investments ($ 75,595) $ - $ 534,746 $ 818,555 $ 1,277,706 $15,723,389
Receivables - trade 1 ,017 - ( 43, 110) ( 70,614) ( 112,707) ( 101 , 139)
Receivables - other City funds ( 271 ) - ( 841 ) 27,742 26,630 ( 11 ,864)
Receivables - government agencies 33,517 ( 96,571 ) - - ( 63,054) ( 32,980)
Inventory - - - 36,620 36,620 42,828
Ui Prepaid expense and other ( 1 ,007) - 1 ,492 ( 6,959) ( 6,474) 242,939
V
Net increase (decrease)
in current assets ( 42,339) ( 96,571 ) 492,287 805,344 1 , 158,721 15,863, 173
Increase (decrease) in current
liabilities:
Bank overdraft - ( 85,233) - - ( 85,233) 5,436
Accounts payable - trade 24,875 423 11 ,922 61 ,926 99,146 463,412
Payable to other City funds ( 6) ( 265) ( 1 ,233) ( 2, 139) ( 3,643) 11 ,675
Revenue bonds - current maturities - - - - - ( 460,000)
Other 5,666 318 8,525 7, 101 21 ,610 376,881
Net increase (decrease)
in current liabilities 30,535 ( 84,757) 19,214 66,888 31 ,880 397,404
Net increase (decrease) in
working capital ($ 72,874) ($ 11 ,814) $ 473,073 $ 738,456 $ 1 , 126,841 $15,465,769
The accompanying Notes are an integral part of these financial statements.
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.
Effective October 1 , 1985, the Central Services division was re-
moved from the General Fund and established as a separate Internal
Service Fund designed to account 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
BALANCE SHEET
SEPTEMBER 30 , 1986
ASSETS
Current assets:
Cash and short-term investments $ 586, 144
Receivables:
Other 359
Inventory 292,656
Prepaid items 1 ,419
Total current assets $ 880,578
Plant and equipment:
Land and betterments 206,769
Buildings, systems and improvements 4,008,948
Furniture and fixtures 6,234
Motor vehicles and equipment 12,089,076
16,311 ,027
Less accumulated depreciation ( 5,927, 114)
Total plant and equipment 10,383,913
Total assets $11 ,264,491
LIABILITIES AND FUND EQUITY
Current liabilities:
Accounts payable - trade $ 160,332
Accrued payroll 80,376
Payable to other City funds 2,286
Total current liabilities $ 242,994
Fund equity:
Contributed capital 11 ,693,909
Retained deficit ( 672,412)
Total fund equity 11 ,021 ,497
Total liabilities and fund equity $11 ,264,491
The accompanying Notes are an integral part of these financial statements.
58
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, 1986
Operating revenues:
Rents, concessions and other $3,435,989
Operating expenses:
Personnel services $1 ,037,704
Supplies and materials 370,248
Maintenance and repairs 1 ,617,232
Utilities and other services 76,392
Insurance and contract support 1 ,295
Depreciation and amortization 1 ,456,715
Total operating expenses 4,559,586
Operating loss ( 1 ,123,597)
Non-operating revenues (expenses) :
Interest income 16,359
Loss on sale of assets ( 79,945)
Total non-operating revenues (expenses) ( 63,586)
Loss before other financing sources ( 1 , 187, 183)
Other financing sources:
Operating transfers in 514,771
Net loss ( 672,412)
Retained earnings - beginning -
Retained deficit - ending ($ 672,412)
The accompanying Notes are an integral part of these financial statements.
59
EXHIBIT H-3
CITY OF WICHITA FALLS, TEXAS
INTERNAL SERVICE FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE YEAR ENDED SEPTEMBER 30 , 1986
Sources of funds:
Net loss ($ 672,412)
Items not requiring working capital:
Depreciation and amortization 1 ,456,715
Loss on sale of assets 79,945
Working capital provided by operations 864,248
Contributed capital 133,703
Proceeds from sale of assets 61 ,394
Contributions from equity transfers 11 ,560,206
Total sources of funds $12,619,551
Application of funds:
Purchase of fixed assets 746, 110
Transfer of assets from Enterprise Funds 3,947,009
Transfer of assets from General Fixed
Asset Account Group 7,288,848
Total application of funds 11 ,981 ,967
Net increase in working capital $ 637,584
Summary of net changes in working capital:
Increase in current assets:
Cash and short-term investments $ 586, 144
Receivables - other 359
Inventory 292,656
Prepaid items 1 ,419
Net increase in current assets $ 880,578
Increase in current liabilities:
Accounts payable - trade 160,332
Other 80,376
Payable to other City funds 2,286
Net increase in current liabilities 242,994
Net increase in working capital $ 637,584
The accompanying Notes are an integral part of these financial statements.
60
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 Fund
This 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.
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, 1986
WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 1985
Expendable
Trust Agency Funds
Employee Social Tax Accounts Deferred Totals
Trust Security Payroll Collection Payable Compensation 1985
Fund Fund Fund Fund Fund Fund 1986 (Restated)
ASSETS
Cash and short-term investments $68,612 $102,414 $2,419 $ 61,625 $26,919 $415,608 $ 677,597 $ 358,054
Receivables:
Taxes and assessments - - - 2,433,029 - - 2,433,029 2,169,112
Other City funds - 48,851 1,597 367 20,014 - 70,829 63,022
Government agencies - 1,681 - - - - 1,681 -
Other 5,758 - - 5,757 - - 11,515 51
Total assets $74,370 $152,946 $4,016 $2,500,778 $46,933 $415,608 $3,194,651 $2,590,239
ON
"' LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable - trade $23,126 $ - $ - $ - $ - $415,608 $ 438,734 $ 289,517
Payable to other City funds - - 4,003 - 46,933 - 50,936 8,504
Payable to government agencies - 152,946 13 2,490,976 - - 2,643,935 2,211,433
Other liabilities - - - 9,802 - - 9,802 35,299
Total liabilities 23,126 152,946 4,016 2,500,778 46,933 415,608 3,143,407 2,544,753
Fund balance:
Designated for subsequent years expenditures 51,244 - - - - -
51,244 45,486
Total liabilities and fund balance $74,370 $152,946 $4,016 $2,500,778 $46,933 $415,608 $3,194,651 $2,590,239
The accompanying Notes are an integral part of these financial statements.
EXHIBIT I-2
CITY OF WICHITA FALLS, TEXAS
EXPENDABLE TRUST FUND - EMPLOYEE BENEFIT TRUST
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED SEPTEMBER 30, 1986
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 1985
1986 1985
Revenues:
Contributions $1 ,678, 147 $1 ,214,932
Miscellaneous revenue 79 7,002
Total revenues 1 ,678,226 1 ,221 ,934
Expenditures:
Administrative services division:
Claims and administrative fees 1 ,614,974 1 ,267,577
Supplies and materials 123 56
Utilities and other services 57,371 41 ,966
Total expenditures 1 ,672,468 1 ,309, 599
Excess of revenues over (under) expenditures 5,758 ( 87,665)
Fund balance - beginning 45,486 133, 151
Fund balance - ending $ 51 ,244 $ 45,486
The accompanying Notes are an integral part of these financial statements.
62
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 , 1986
Balance
October 1 , Balance
1985 September 30,
(Restated) Additions Deductions 1986
SOCIAL SECURITY FUND
ASSETS
Cash and short-term investments $ - $ 2,624,657 $ 2,522,243 $ 102,414
Receivables:
Other City funds 41 2,692,952 2,644, 142 48,851
Government agencies - 91 , 155 89,474 1 ,681
Total assets $ 41 $ 5,408,764 $ 5,255,859 $ 152,946
LIABILITIES
Payable to other City funds $ - $ 2,521 ,528 $ 2,521 ,528 $ -
Payable to government agencies 41 5,453,668 5,300,763 152,946
Total liabilities $ 41 $ 7,975, 196 $ 7,822,291 $ 152,946
PAYROLL FUND
ASSETS
Cash and short-term investments $ 2,071 $21 ,562,503 $21 ,562, 155 $ 2,419
Receivables:
Other City funds 1 ,513 21 ,020,629 21 ,020,545 1 ,597
Total assets $ 3,584 $42,583, 132 $42,582,700 $ 4,016
LIABILITIES
Payable to other City funds $ 3,477 $22,968,333 $22,967,807 $ 4,003
Payable to government agencies 107 564,070 564, 164 13
Total liabilities $ 3,584 $23,532,403 $23,531 ,971 $ 4,016
The accompanying Notes are an integral part of these financial statements.
63
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, 1986
Balance
October 1 , Balance
1985 September 30,
(Restated) Additions Deductions 1986
TAX COLLECTION FUND
ASSETS
Cash and short-term investments $ 84,057 $ 33,282,302 $ 33,304,734 $ 61 ,625
Receivables:
Taxes and assessments 2,169,112 19,402,106 19,138,189 2,433,029
Other City funds 1 ,295 2,402 3,330 367
Other 47 5,757 47 5,757
Total assets $2,254,511 $ 52,692,567 $ 52,446,300 $2,500,778
LIABILITIES
Accounts payable - trade $ 7,927 $ 551 ,847 $ 559,774 $ -
Payable to government agencies 2,211 ,285 37,731 ,444 37,451 ,753 2,490,976
Other liabilities 35,299 291 ,540 317,037 9,802
Total liabilities $2,254,511 $ 38,574,831 $ 38,328,564 $2,500,778
ACCOUNTS PAYABLE FUND
ASSETS
Cash and short-term investments $ 4,760 $ 30,471 ,730 $ 30,449,571 $ 26,919
Receivable:
Other City funds 267 127,048,045 127,028,298 20,014
Total assets $ 5,027 $157,519,775 $157,477,869 $ 46,933
LIABILITIES
Payable to other City funds $ 5,027 $ 330,587 $ 288,681 $ 46,933
Total liabilities $ 5,027 $ 330,587 $ 288,681 $ 46,933
The accompanying Notes are an integral part of these financial statements.
64
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, 1986
Balance
October 1 , Balance
1985 September 30,
(Restated) Additions Deductions 1986
DEFERRED COMPENSATION FUND
ASSETS
Cash and short-term investments $ 260, 142 $ 176,384 $ 20,918 $ 415,608
Total assets $ 260, 142 $ 176,384 $ 20,918 $ 415,608
LIABILITIES
Accounts payable - trade $ 260, 142 $ 176,384 $ 20,918 $ 415,608
Total liabilities $ 260, 142 $ 176,384 $ 20,918 $ 415,608
TOTALS - ALL AGENCY FUNDS
ASSETS
Cash and short-term investments $ 351 ,030 $ 88, 117 ,576 $ 87,859,621 $ 608,985
Receivables:
Taxes and assessments 2,169,112 19,402, 106 19,138, 189 2,433,029
Other City funds 3,116 150,764,028 150,696,315 70,829
Government agencies - 91 ,155 89,474 1 ,681
Other 47 5,757 47 5,757
Total assets $2,523,305 $258,380,622 $257,783,646 $3, 120,281
LIABILITIES
Accounts payable - trade $ 268,069 $ 728,231 $ 580,692 $ 415,608
Payable to other City funds 8,504 25,820,448 25,778,016 50,936
Payable to government agencies 2,211 ,433 43,749,182 43,316,680 2,643,935
Other liabilities 35,299 291 ,540 317,037 9,802
Total liabilities $2,523,305 $ 70,589,401 $ 69,992,425 $3, 120,281
The accompanying Notes are an integral part of these financial statements.
65
SUPPORTING SCHEDULES
EXHIBIT J-1
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES
SEPTEMBER 30, 1986
Fiscal Year General Obligation Bonds Water and Sewer Revenue Bonds Airport Revenue Bonds
Ending Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds
September 30, Maturities on Bonds and Interest Maturities on Bonds and Interest Maturities on Bonds and Interest Total
1987 $ 305,000 $ 1,980,711 $ 2,285,711 $ 395,000 $ 2,061,283 $ 2,456,283 $20,000 $900 $20,900 $ 4,762,894
1988 605,000 1,682,502 2,287,502 575,000 1,882,972 2,457,972 - - - 4,745,474
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
ON
2003 1,670,000 613,180 2,283,180 1,650,000 803,252 2,453,252 - - - 4,736,432
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
$22,540,000 $23,191,696 $45,731,696 $24,405,000 $27,121,495 $51,526,495 $20,000 $900 $20,900 $97,279,091
The accompanying Notes are an integral part of these financial statements.
EXHIBIT J-2
CITY OF WICHITA FALLS, TEXAS (Page 1 of 3)
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30, 1986
Final Annual Bonds
Interest Rates Issue Maturity Serial Retired or
and (Dates) Date Date Payments Authorized Issued Refunded Outstanding
General obligation bonds:
1985 General Obligation
Refunding and Improvement
Bonds 5.25, 6.0, 6.5, 7.0, 9/01/85 9/01/01 $ 760,000 (1986) $21,870,000 $21,870,000 $21,870,000 $ -
7.25, 7.5, 7.75, 8.0, 805,000 (1987)
8.25, 8.5, 8.75, 8.9, 855,000 (1988)
9.0, 9.1, 9.15, 9.2 915,000 (1989)
(9/1, 3/1) 975,000 (1990)
1,040,000 (1991)
1,115,000 (1992)
1,205,000 (1993)
1,305,000 (1994)
1,410,000 (1995)
1,530,000 (1996)
1,665,000 (1997)
1,810,000 (1998)
1,975,000 (1999)
2,155,000 (2000)
01 2,350,000 (2001)
v
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 - 22,540,000
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)
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 44,410,000 44,410,000 21,870,000 22,540,000
The accompanying Notes are an integral part of these financial statements.
CITY OF WICHITA FALLS, TEXAS EXHIBIT J-2
(Page 2 of 3)
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30, 1986
Final Annual Bonds
Interest Rates Issue Maturity Serial Retired or
and (Dates) Date Date Payments Authorized Issued Refunded Outstanding
Revenue bonds:
Water and sewer revenue
bonds:
1984 Water and Sewer
Revenue Bonds 7.25, 7.6, 7.85, 8.1, 12/01/84 8/01/04 440,000 (1986) 19,955,000 19,955,000 19,955,000 -
8.35, 8.65, 8.9, 9.1, 475,000 (1987)
9.35, 9.6, 9.8, 9.9, 510,000 (1988)
10, 10.1, 10.15, 550,000 (1989)
10.2, 10.3, 10.35, 595,000 (1990)
10.4 645,000 (1991)
(2/1, 8/1) 700,000 (1992)
760,000 (1993)
830,000 (1994)
910,000 (1995)
995,000 (1996)
1,095,000 (1997)
1,200,000 (1998)
1,325,000 (1999)
1,455,000 (2000)
1,605,000 (2001)
Ch 1,765,000 (2002)
CO 1,950,000 (2003)
2,150,000 (2004)
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 - 24,405,000
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)
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 water and sewer
revenue bonds 44,360,000 44,360,000 19,955,000 24,405,000
The accompanying Notes are an integral part of these financial statements.
EXHIBIT J-2
(Page 3 of 3)
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30, 1986
Final Annual Bonds
Interest Rates Issue Maturity Serial Retired or
and (Dates) Date Date Payments Authorized Issued Refunded Outstanding
Revenue bonds (Cont'd.):
Airport revenue bonds:
1967 Airport Revenue
Bonds 4.5 4/15/67 4/15/87 5,000 (1971-1984) 130,000 130,000 110,000 20,000
(10/15, 4/15) 20,000 (1985-1987)
Total revenue bonds 44,490,000 44,490,000 20,065,000 24,425,000
Total all bonds $88,900,000 $88,900,000 $41,935,000 $46,965,000
01
l0
The accompanying Notes are an integral part of these financial statements.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
EXHIBIT J-3
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE COVERAGE - REVENUE BONDS
SEPTEMBER 30, 1986
Airport Revenue Bonds:
Net income (loss) (Exhibit G-2) ($ 150,239)
Add (deduct) :
Revenue bond interest and paying agent fees $ 1 ,487
Depreciation 91 ,698
Contributions from operating grants ( 51 ,000) 42, 185
Net earnings for determining debt service coverage ($ 108,054)
Total principal and interest requirements $ 20,900
Number of years remaining to pay bonds - 1
Average annual principal and interest requirement $ 20,900
Average annual debt service coverage -0-
Maximum principal and interest requirement $ 20,900
Maximum debt service coverage -0-
Water and Sewer Revenue Bonds:
Net income before extraordinary item (Exhibit G-2) $ 3, 132,230
Add (deduct) :
Revenue bond interest expense and paying
agent fees $ 226,370
Depreciation and amortization 1 ,392,906
Operating transfers out 232,700
Contributions from operating grants ( 395,394) 1 ,456,582
Net earnings for determining debt service coverage $ 4,588,812
Total principal and interest requirements $51 ,526,495
Number of years remaining to pay bonds 21
Average annual principal and interest requirement $ 2,453,643
Average annual debt service coverage 1 .87
Maximum principal and interest requirement $ 2,457,972
Maximum debt service coverage 1 .87
The accompanying Notes are an integral part of these financial statements.
70
EXHIBIT J-4
(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, 1986
Beginning Ending
Balance Transfers Balance
10/1/85 Additions Deletions In (Out) 9/30/86
Administrative services
division:
Mayor and City Council $ 5,218 $ - $ - $ - $ 5,218
General Administration 2,228,484 133,705 4,258 ( 29,372) 2,328,559
Legal and City Clerk 9,727 2,677 - - 12,404
Personnel 7,258 - - - 7,258
Data Processing 767,916 75,462 - - 843,378
Library 936,214 6,213 8,124 - 934,303
Municipal Court 580,069 1 ,600 - ( 13,286) 568,383
Risk Management 10,137 - - ( 5, 157) 4,980
Property Agent 11 ,639 240 - ( 11 ,084) 795
Central Garage 4,752,988 - 78,715 ( 4,674,273) -
Building Maintenance 23,760 945 - ( 8,606) 16,099
Midtown 2000 534,813 - 116,235 - 418,578
Auditorium Activity
Center 6,572,479 6,424 - - 6,578,903
Community Development 84,964 - - - 84,964
Total administrative
services division 16,525,666 227,266 207,332 ( 4,741 ,778) 11 ,803,822
Police division:
Police 3,876,331 1 , 125, 147 - ( 1 ,091 ,596) 3,909,882
Fire division:
Fire 3,349,237 20,058 12,709 ( 1 ,404,730) 1 ,951 ,856
Parks and recreation division:
Parks 12,985,760 118,313 348 ( 665,045) 12,438,680
Golf 285,255 - - ( 121 ,589) 163,666
Cemetery 80, 145 2,974 2,947 ( 57, 170) 23,002
Total parks and
recreation division 13,351 ,160 121 ,287 3,295 ( 843,804) 12,625,348
Accounting/finance division:
Finance 19,569 2,377 - ( 539) 21 ,407
Tax 17,048 4,871 - 1 ,230 23,149
Purchasing 3,542 - - ( 380) 3, 162
Total accounting/
finance division 40, 159 7,248 - 311 47,718
The accompanying Notes are an integral part of these financial statements.
71
EXHIBIT J-4
(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, 1986
Beginning Ending
Balance Transfers Balance
10/1/85 Additions Deletions In (Out) 9/30/86
Planning division:
Planning 28,660 23,570 - ( 13,211 ) 39,019
Public works division:
Street Maintenance 2,090,214 1 ,330 225 ( 1 ,913,536) 177,783
Engineering 275,000 24,601 - ( 58,540) 241 ,061
Inspection 52, 102 2,973 - ( 35,572) 19,503
Total public works
division 2,417,316 28,904 225 ( 2,007,648) 438,347
Health division:
Health 1 , 145,283 29,401 - ( 146,086) 1 ,028,598
Traffic and transportation
division:
Traffic Engineering 488,476 9,066 837 ( 298,662) 198,043
Parking Meters 19,807 1 ,767 - ( 16,465) 5, 109
Total traffic and
transportation
division 508,283 10,833 837 ( 315, 127) 203, 152
Total general fixed assets $41 ,242,095 $1 ,593,714 $224,398 ($10,563,669) $32,047,742
The accompanying Notes are an integral part of these financial statements.
72
CITY OF WICHITA FALLS, TEXAS EXHIBIT J-5
GENERAL FIXED ASSETS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1986
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 $ 5,218 $ - $ - $ - $ 5,218 $ - $ -
General Administration 2,328,559 1,329,758 686,711 80,669 95,306 136,115 -
Legal and City Clerk 12,404 - - - 12,404 - -
Personnel 7,258 - - 1,889 5,369 -Data Processing 843,378 - - 703,797 139,581 - -
Library 934,303 610,870 272,051 5,817 45,565 - -
Municipal Court 568,383 230,000 312,788 5,168 20,427 - -
Risk Management 4,980 - - 1,800 3,180 - -
Property Agent 795 - - 260 535 - -
Building Maintenance 16,099 - - 10,659 5,440 - -
Midtown 2000 418,578 233,798 184,780 - - - -
Auditorium Activities Center 6,578,903 434,422 5,934,992 62,495 146,994 - -
Community Development 84,964 78,358 6,269 337 - - -
Total administrative
services division 11,803,822 2,917.206 7,397,591 872,891 480,019 136,115 -
Police division:
Police 3,909,882 1,092,914 710,375 1,256,949 73,134 13,030 763,480
Fire division:
Fire 1,951,856 188,851 1,515,143 202,535 45,327 - -
Parks and recreation division:
Parks 12,438,680 9,561,114 2,552,226 246,423 9,956 - 68,961
Golf 163,666 112,539 42,908 8,219 - -
Cemetery 23,002 15,212 - 7,790
(.4 Total parks and
recreation division 12,625,348 9,688.865 2,595,134 262,432 9,956 - 68,961
Accounting/finance division:
Finance 21,407 - - 2,926 18,481 - -
Tax 23,149 - - 9,214 13,935 - -
Purchasing 3,162 - - 797 2,365 - -
Total accounting/
finance division 47,718 - - 12,937 34,781 - -
Planning division:
Planning 39,019 - - 26,060 12,959 - -
Public works division:
Street Maintenance 177,783 29,937 83,738 58,360 5,748 - -
Engineering 241,061 111,120 19,087 101,322 8,122 1,410 -
Inspection 19,503 13,059 - 2,097 4,347 - -
Total public works
division 438.347 154,116 102,825 161,779 18,217 1,410 -
Health division:
Health 1.028.598 76.411 770,076 162,227 19,884 - -
Traffic and transportation
division:
Traffic Engineering 198,043 34,550 37,265 40,495 85,733 - -
Parking Meters 5.109 - - 1,767 3,342 - -
Total traffic and
transportation division 203,152 34,550 37.265 42,262 89,075 - -
Total general fixed assets $32,047.742 $14,152,913 $13,128,409 $3,000,072 $783,352 $150,555 $832,441
The accompanying Notes are an integral part of these financial statements.
EXHIBIT J-6
CITY OF WICHITA FALLS, TEXAS
AIRPORT FUND
PLANT, EQUIPMENT AND DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 1986
Balance Balance
10/1/85 Additions Deletions 9/30/86
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 - - 9,267
Furniture and fixtures 9,003 2,934 - 11 ,937
Total plant and equipment 2,938, 107 2,934 - 2,941 ,041
Accumulated Depreciation:
Land and betterments 343,785 58,892 - 402,677
Buildings and improvements 360,392 31 ,209 - 391 ,601
Machinery and equipment 4,448 879 - 5,327
Furniture and fixtures 5, 168 718 - 5,886
Total accumulated
depreciation 713,793 91 ,698 - 805,491
Net plant and equipment $2,224,314 ($ 88,764) $ - $ 2, 135,550
The accompanying Notes are an integral part of these financial statements.
74
EXHIBIT J-7
CITY OF WICHITA FALLS, TEXAS
TRANSIT SYSTEM
PLANT, EQUIPMENT AND DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 1986
Balance Transfers Balance
10/1/85 Additions Deletions In (Out) 9/30/86
Plant and Equipment:
Land and betterments $ 39,814 $ - $ - $ - $ 39,814
Buildings and improvements 626,868 - - - 626,868
Machinery and equipment 31 ,798 29,003 - - 60,801
Furniture and fixtures 5,456 - - - 5,456
Motor vehicles and equipment 383,492 51 ,519 - ( 435,011 ) -
Total plant and equipment 1 ,087,428 80,522 - ( 435,011) 732,939
Accumulated Depreciation:
Buildings and improvements 12,727 7,988 - - 20,715
Machinery and equipment 13,046 4,075 - - 17,121
Furniture and fixtures 1 ,021 360 - - 1 ,381
Motor vehicles 276, 105 - - ( 276, 105) -
Total accumulated
depreciation 302,899 12,423 - ( 276, 105) 39,217
Net plant and equipment $ 784,529 $ 68,099 $ - ($ 158,906) $ 693,722
The accompanying Notes are an integral part of these financial statements.
75
EXHIBIT J-8
CITY OF WICHITA FALLS, TEXAS
SANITATION FUND
PLANT, EQUIPMENT AND DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 1986
Balance Transfers Balance
10/1/85 Additions Deletions In (Out) 9/30/86
Plant and Equipment:
Land and betterments $ 615,703 $ 40,001 $ - $ - $ 655,704
Buildings and improvements 2, 110,854 80, 118 - - 2,190,972
Machinery and equipment 87,991 11 ,000 2,247 ( 7, 164) 89,580
Furniture and fixtures 4,750 - - - 4,750
Motor vehicles and equipment 3,690,455 420,000 - ( 4, 107,559) 2,896
Total plant and equipment 6,509,753 551 , 119 2,247 ( 4, 114,723) 2,943,902
Accumulated Depreciation:
Land and betterments 8,313 1 ,912 - - 10,225
Buildings and improvements 143,914 44,044 - - 187,958
Machinery and equipment 36,301 6,592 1 ,543 ( 5,045) 36,305
Furniture and fixtures 2,402 538 - - 2,940
Motor vehicles and equipment 1 ,089,871 290 - ( 1 ,089, 147) 1 ,014
Total accumulated
depreciation 1 ,280,801 53,376 1 ,543 ( 1 ,094, 192) 238,442
Net plant and equipment $5,228,952 $ 497,743 $ 704 ($ 3,020,531) $ 2,705,460
The accompanying Notes are an integral part of these financial statements.
76
EXHIBIT J-9
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER FUND
PLANT, EQUIPMENT AND DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 1986
Plant and Equipment Accumulated Depreciation Net Plant
Balance Transfers Balance Balance Balance and
10/1/85 Additions Deletions In (Out) 9/30/86 10/1/85 Additions Deletions 9/30/86 Equipment
Water Department:
Land and betterments $18,859,771 $ 11,360 $ - $ 1,101 $18,872,232 $ 3,649,541 $ 229,639 $ - $ 3,879,180 $14,993,052
Buildings, systems
and improvements 27,566,731 1,178,238 - 2,536,313 31,281,282 12,196,822 573,136 - 12,769,958 18,511,324
Machinery and
equipment 2,035,268 63,386 6,693 ( 46,022) 2,045,939 1,278,110 37,755 42,280 1,273,585 772,354
Furniture and fixtures 30,403 2,359 385 ( 475) 31,902 23,026 1,098 860 23,264 8,638
Motor vehicles 637,354 - - ( 632,884) 4,470 439,291 - 434,821 4,470 -
Construction in
progress 2,690,962 5,030,839 - ( 2,486,746) 5,235,055 - - - - 5,235,055
Total Water
Department $51,820,489 $6,286,182 $7,078 (S 628,713) $57,470,880 $17,586,790 $ 841,628 $477,961 $17,950,457 $39,520,423
Sewer Department:
Land and betterments $ 85,214 $ - $ - $ - $ 85,214 $ - $ - $ - $ - $ 85,214
Buildings, systems
v and improvements 18,738,598 780,736 - 151,607 19,670,941 7,924,742 546,355 - 8,471 ,097 11,199,844
Machinery and
equipment 225,557 4,421 - ( 23,018) 206,960 145,646 22,532 8,388 159,790 47,170
Furniture and fixtures 581 499 - - 1,080 581 25 - 606 474
Motor vehicles 205,104 - - ( 205,104) - 91,658 - 91,658 - -
Construction in
progress 151,608 3,827 - ( 151,608) 3,827 - - - - 3,827
Total Sewer
Department $19,406,662 $ 789,483 $ - ($ 228,123) $19,968,022 $ 8,162,627 $ 568,912 $100,046 $ 8,631,493 $11,336,529
Combined Water and Sewer
Departments:
Land and betterments $18,944,985 $ 11,360 $ - $ 1,101 $18,957,446 $ 3,649,541 $ 229,639 $ - $ 3,879,180 $15,078,266
Buildings, systems
and improvements 46,305,329 1,958,974 - 2,687,920 50,952,223 20,121,564 1,119,491 - 21,241,055 29,711,168
Machinery and
equipment 2,260,825 67,807 6,693 ( 69,040) 2,252,899 1,423,756 60,287 50,668 1,433,375 819,524
Furniture and fixtures 30,984 2,858 385 ( 475) 32,982 23,607 1,123 860 23,870 9,112
Motor vehicles 842,458 - - ( 837,988) 4,470 530,949 - 526,479 4,470 -
Construction in
progress 2,842,570 5,034,666 - ( 2,638,354) 5,238,882 - - - - 5,238,882
Total Combined
Water and Sewer
Departments $71,227,151 $7,075,665 $7,078 (S 856,836) $77,438,902 $25,749,417 $1,410,540 $578,007 $26,581,950 $50,856,952
The accompanying Notes are an integral part of these financial statements.
EXHIBIT J-10
CITY OF WICHITA FALLS, TEXAS
INTERNAL SERVICE FUND
PLANT, EQUIPMENT AND DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 1986
Balance Transfers Balance
10/1/85 Additions Deletions In (Out) 9/30/86
Plant and Equipment:
Land and betterments $ - $ - $ - $ 206,769 $ 206,769
Buildings and improvements - - - 4,008,948 4,008,948
Furniture and fixtures - 919 - 5,315 6,234
Motor vehicles and equipment - 745, 191 906,704 12,250,589 12,089,076
Total plant and equipment - 746, 110 906,704 16,471 ,621 16,311 ,027
Accumulated Depreciation:
Buildings and improvements - 80,085 - 158,908 238,993
Furniture and fixtures - 492 - 2,064 2,556
Motor vehicles and equipment - 1 ,376, 138 765,364 5,074,791 5,685,565
Total accumulated
depreciation - 1 ,456,715 765,364 5,235,763 5,927, 114
Net plant and equipment $ - ($ 710,605) $141 ,340 $11 ,235,858 $10,383,913
The accompanying Notes are an integral part of these financial statements.
78
THIS PAGE IS INTENTIONALLY LEFT BLANK.
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
1976-1977 $2,958,039 $2,479,633 $1,830,491 $1,037,853 $193,229 $ 305,648 $3,314,140 $ 607,610 $ 823,142 $13,549,785
1977-1978 2,927,729 2,478,223 2,039,474 1,128,337 210,716 265,188 3,791,951 719,003 991,280 14,551,901
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
J 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
Dr r , r , r
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
EXHIBIT K-2
CITY OF WICHITA FALLS, TEXAS
GENERAL REVENUE 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
1976-1977 $ 8,480,874 $1 ,845,617 $144,463 $400,513 $1 ,846,291 $ 402,515 $13, 120,273
1977-1978 9,558,076 2,278,095 188, 134 449,313 2,034,646 477, 193 14,985,457
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
p 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
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
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
1976-1977 $ 5,965,634 $ 5,839,672 97.89% $157,354 $ 5,997,026 100.53%
1977-1978 6,216,950 6,085,516 97.89% 126,174 6,211 ,690 99.92%
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%
1983-1984 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%
81
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
1976-1977 $ 422,860,676 $ 604,086,679 $146,828, 119 $209 ,754,455 $ 569,688,795 $ 813,841 , 134 70.00%
1977-1978 450,945,083 644,207,262 165,795,673 236,850,961 616,740,756 881 ,058,223 70.00%
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
Nf 906,905,547 906 906,905,547 335,093,095 335,093,095r f 093 095 1 241 998r1 ,241 ,998,642 642 100.00%
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%
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%
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%
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
1976-1977 $1 .05 $1 .40 $1 .67 $ .87 $ .12 $5.11
1977-1978 1 .01 1 .17 1 .67 .87 .10 4.82
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
Tax Levies
1976-1977 $ 5,965,634 $ 7,931 ,323 $263,474 $3,066,776 $289,202 $17,516,409
1977-1978 6,216,950 7,397,146 270,537 3,717,862 363,401 17,965,896
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
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
83
EXHIBIT K-6
CITY OF WICHITA FALLS, TEXAS
SPECIAL ASSESSMENT COLLECTIONS - LAST TEN FISCAL YEARS (UNAUDITED)
Current Current Ratio of
Fiscal Assessments Assessments Collections
Year Due Collected to Amount Due
1976-1977 $520,522 $187,822 36.08%
1977-1978 521 ,762 172, 142 32.99%
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%
84
EXHIBIT K-7
CITY OF WICHITA FALLS, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET 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
1976-1977 106,800 $ 569,688,795 $14,065,000 $293,985 $13,771 ,015 2.42% $128.94
1977-1978 109,000 616,740,756 12,565,000 240,957 12,324,043 2.00% 113.06
1978-1979 111 ,000 677,898,480 11 ,064,000 240,535 10,823,465 1 .60% 97.51
1979-1980 93,600 758,230,274 13,558,000 277,095 13,280,905 1 .75% 141 .89
w
1980-1981 94,201 1 ,241 ,998,642 13,564,000 467,080 13,096,920 1 .05% 139.03
1981-1982 96,500 1 ,452,897,321 19, 153,000 633,207 18,519,793 1 .27% 191 .91
1982-1983 97, 125 1 ,802,438,684 17,395,000 705,727 16,689,273 .93% 171 .83
1983-1984 104,500 1 ,882,445,516 15,375,000 929,646 14,445,354 .77% 138.23
1984-1985 100,200 2,055,679,292 21 ,870,000 235,914 21 ,634,086 1 .05% 215.91
1985-1986 101 ,300 2,226,690,210 22,540,000 245,043 22,294,957 1 .01% 222.51
EXHIBIT K-8
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN (UNAUDITED)
SEPTEMBER 30 , 1986
Total assessed property value per 1985 tax roll $2,226,690,210
Maximum tax levy* $2.25/$100
Current tax levy for 1985 tax year .6287/$100
Maximum tax levy in excess of 1985 tax levy 1 .6213/$100
$ 36, 101 ,328
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
1985 tax rate is $ .6287 per $100 assessed valuation.
* Maximum tax levy established by City Charter
86
EXHIBIT K-9
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT (UNAUDITED)
SEPTEMBER 30, 1986
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 $46,965,000 100.00% $46,965,000
Wichita Falls Independent
School District 24,310,000 98.49% 23,942,919
Wichita County 3,815,000 77.23% 2,946,325
City View Independent
School District 760,000 75.25% 571 ,900
Burkburnett Independent
School District 3,800,000 1 .16% 44,080
$79,650,000 $74,470,224
Sources:
( 1 ) Listed taxing jurisdictions
(2) Herbert R. Smith, Incorporated
87
EXHIBIT K-10
CITY OF WICHITA FALLS, TEXAS
RATIO OF ANNUAL DEBT SERVICE 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
1976-1977 $1 ,499,000 $ 604,048 $2, 103,048 $13,549,785 15.52%
1977-1978 1 ,500,000 547,895 2,047,895 14,551 ,901 14.07%
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%
88
EXHIBIT K-11
CITY OF WICHITA FALLS, TEXAS
AIRPORT REVENUE BONDS
SCHEDULE OF REVENUE BOND COVERAGE - LAST TEN FISCAL YEARS (UNAUDITED)
Average
Net Income Annual Average Maximum
(Loss) Principal Annual Principal Maximum
Fiscal Available for and Times and Times
Year Debt Service Interest Covered Interest Covered
1976-1977 $ 45,319 $31 ,785 1 .43 $35,775 1 .27
1977-1978 58,227 31 ,342 1 .86 34,800 1 .67
1978-1979 76,568 30,909 2.48 38,825 1 .97
1979-1980 110,896 29,779 3.72 37,600 2.95
1980-1981 70,078 28,475 2.46 36,375 1 .93
1981-1982 60,808 26,895 2.26 35, 150 1 .73
1982-1983 25,878 24,831 1 .04 33,925 .76
1983-1984 55,445 21 ,800 2.54 22,700 2.44
1984-1985 ( 21 ,687) 21 ,350 -0- 21 ,800 -0-
1985-1986 ( 108,054) 20,900 -0- 20,900 -0-
89
EXHIBIT K-12
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER REVENUE BONDS
SCHEDULE OF REVENUE BOND COVERAGE - 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
1976-1977 $1 ,840,667 $ 670,397 2.75 $ 994,834 1 .85
1977-1978 1 ,937,076 526,278 3.68 1 ,089,951 1 .78
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
90
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)
1976-1977 106,800 $ 5,936 12.4 15,435 3.7%
1977-1978 109,000 6,666 12.5 15,086 3.5%
1978-1979 111 ,000 7,185 12.6 14,561 3.2%
1979-1980 94,201 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%
Sources:
( 1 ) City of Wichita Falls Planning Department
(2) U.S. Department of Commerce Texas Almanac for 1986-1987
(3) Wichita Falls I.S.D. - Educational level is grade equivalent of
graduating senior.
(4) Texas Employment Commission
91
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)
1976-1977 $ 813,841 ,134 $ 42,468,548 $ 516,606,623
1977-1978 881 ,058,223 45,604,127 551 ,425,836
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
Sources:
( 1 ) City of Wichita Falls Tax Department
(2) City of Wichita Falls Planning Department
(3) Wichita Falls Times and Record News
92
EXHIBIT K-15
CITY OF WICHITA FALLS, TEXAS
TEN LARGEST TAXPAYERS (UNAUDITED)
SEPTEMBER 30, 1986
Percentage
January 1 , 1985 of Total
Assessed Assessed
Taxpayer Type of Business Valuation Valuation
Southwestern Bell Telephone Utility $ 43,855,828 1 .97%
Sikes Senter Shopping Center 33, 181 , 140 1 .49%
Texas Electric Electric Utility 31 ,870,465 1 .43%
Stanley Tools Manufacturing 11 ,942,848 .54%
InterFirst Bank Bank 10,662,677 .48%
White's Store Retail Store 10,505,712 .47%
Joy Manufacturing Manufacturing 10,310,811 .46%
MBank Wichita Falls Bank 9,578,737 .43%
Wichita Falls Hotel
Partnership Hotel 9,001 ,000 .41%
Sprague Electric Manufacturing 8,885,501 .40%
$179,794,719 8.08%
93
EXHIBIT K-16
CITY OF WICHITA FALLS, TEXAS
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30 , 1986
Date of incorporation 1889
Form of government Council - Manager
Area 50 square miles
Miles of streets 650
Number of street lights 6,563
Fire protection:
Number of stations 9
Number of firemen and officers 150
Police protection:
Number of stations 1
Number of police officers 153
Municipal water department:
Number of consumers - active 31 ,372
Average daily consumption 21 ,800,000 gallons treated water
Miles of water mains 800
Sewers:
Number of customers - active 28,376
Miles of sanitary sewers 650
Miles of storm sewers 200
Building permits issued:
Number issued 1 ,446
Amount issued $40,951 ,045
Recreation and culture:
Number of parks 41 with 1 ,204.4 acres
Number of libraries 1
Number of volumes 150,000
Employees - fulltime 975
94
EXHIBIT K-17
(Page 1 of 4)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED)
SEPTEMBER 30, 1986
Insurance
Code
A Policy: Building and Contents
Company: Firemen's Fund
Policy No. : XF3781055, Extra Expense F3800786
Policy Period: January 1 , 1985 to October 1 , 1987
Period: Fire, extended coverages, vandalism and
malicious mischief, including difference
in condition
Coverages: $29,442,561 Building and Contents
250,000 Extra Expense
1 ,040,000 Valuable Papers
Deductible: $ 100,000 Per Occurrence
Coinsurance: Agreed Value - Replacement Cost
Premium: Annually $20,226.00
B Policy: Boiler and Machinery
Company: Hartford Steam Boiler
Policy No. : HN-7330025-00
Policy Period: October 1 , 1983 to October 1 , 1986
Perils: Comprehensive Blanket
Coverage: $5,000,000 Per Occurrence
Deductible: $ 2,500
Coinsurance: N/A
Premium: Annually $13,478.00
C Risk: Contractor's Equipment (Tool Floater)
Company: Marine Office of America Corporation
Policy No. : IMH627141
Policy Period: October 1 , 1985 to October 1 , 1986
Perils: All Risk
Coverage: $3,000 Per Person, $31 ,000 Per Occurrence
Deductible: $ 100 Per Claim
Premium: $ 775.00
D Risk: Electronic Data Processing Equipment
Company: American Standard Lloyds
Policy No. : 2-677DP1065444
Policy Period: October 1 , 1985 to October 1 , 1987
Perils: All Risk
Coverage: $399,100
Deductible: $ 500
Coinsurance: N/A
Premium: $ 5,712.44
95
EXHIBIT K-17
(Page 2 of 4)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D. )
SEPTEMBER 30, 1986
Insurance
Code
E Risk: Excess Worker's Compensation and Employer's
Liability
Company: Aetna Casualty
Policy No. : 18XC20WCA
Policy Period: October 1 , 1985 to October 1 , 1986
Perils: Worker's Compensation - Statutory; Employer's
Liability $5,000,000
Deductible: $200,000
Premium: $12,000.00
F Risk: Public Official Liability (E and N)
Company: Western Policy Insurance Company
Policy No. : PE-4908
Policy Period: October 1 , 1983 to October 1 , 1986
Perils: Public Official Errors and Omissions. Excludes
Law Enforcement.
Coverage: $1 ,000,000
Deductible: $ 1 ,000
Premium: $ 9,502.28
G Risk: Valuable Papers (See Code A)
H Risk: Monies and Securities
Company: Fidelity and Deposit Company of Maryland
Policy No. : 936-70-53T
Policy Period: January 15, 1983 to Cancellation
Perils: Loss Inside and Outside of Premises
Coverage: Loss Inside Premises: $10,000; Loss Outside
Premises: $3,000
Deductible: $1 ,000
Premium: $ 288.00
Risk: Airport Liability
Company: U.S. Fire Insurance Company
Policy No. : GLA-41-20594
Policy Period: October 1 , 1985 to October 1 , 1987
Perils: Owner' s Landlords' and Tenants' Liability
(Premises)
Coverage: $1 ,000,000 CSL
Deductible: None
Premium: $ 6,750.00
96
EXHIBIT K-17
(Page 3 of 4)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D.)
SEPTEMBER 30, 1986
Insurance
Code
J Risk: Professional Liability for Medical Clinics
Company: St. Paul Insurance Company
Policy No. : 591TD3032
Policy Period: October 1 , 1985 to October 1 , 1986
Perils: Injury to any person arising out of the
performance of professional service rendered
or which should have been rendered (errors
and omissions) .
Coverage: $1 ,000,000 CSL
Deductible: None
Premium: $32,271 .00
K Risk: Physician Medical Malpractice
Company: St. Paul Insurance Company
Policy No. : 591TD3072-1
Policy Period: October 1 , 1985 to October 1 , 1986
Perils: Physicians' Medical Malpractice
Coverage: $1 ,000,000 CSL
Deductible: None
Premium: $ 458.00
L Risk: Public Employee Blanket Bonds
Company: Fidelity and Deposit Company of Maryland
Policy No. : 2897924-C
Policy Period: January 15, 1986 to January 15, 1987
Perils: Honesty Blanket Position
Coverage: $10,000
Deductible: $10,000
Coinsurance: N/A
Premium: $ 754.00
M Risk: Public Official Bond
Company: Fidelity and Deposit Company of Maryland
Bond No. : 968-84-96
Bond Period: August 26, 1986 to August 26, 1987
Insured: City Manager
Coverage: $25,000
Premium: $ 88.00
Bond No. : 961-99-35
Bond Period: August 18, 1986 to August 18, 1987
Insured: Purchasing Agent
Coverage: $2,500
Premium: $ 30.00
97
EXHIBIT K-17
(Page 4 of 4)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF INSURANCE COVERAGE (UNAUDITED) (CONT'D. )
SEPTEMBER 30, 1986
Insurance
Code
Bond No. : 567-99-44
Bond Period: January 5, 1986 to January 5, 1987
Insured: City Clerk
Coverage: $25,000
Premium: $ 88.00
Bond No. : 5100138239BCA
Bond Period: April 28, 1986 to April 22, 1987
Insured: Tax Assessor/Collector
Coverage: $50,000
Premium: $ 250.00
Bond No. : 185-100084654
Bond Period: August 6, 1986 to August 6, 1987
Insured: Director of Public Works
Coverage: $2,500
Premium: $ 30.00
N Bond No. : FD9619936
Bond Period: July 16, 1986 to July 16, 1987
Insured: Municipal Court Administrator
Coverage: $2,500
Premium: $ 30.00
0 Policy: Public Official Bond
Company: Aetna Casualty and Surety Company
Bond No: 018-S-72205-DCA
Bond Period: March 5, 1986 to March 5, 1987
Insured: Chief Accounting Officer
Coverage: $25,000
Premium: $ 88.00
98
EXHIBIT K-18
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF EMPLOYEE BENEFIT INSURANCE (UNAUDITED)
SEPTEMBER 30, 1986
Insurance
Code
P Policy: Health Insurance
Company: Fred S. James Benefits
Policy No. : City of Wichita Falls Employee Benefit Trust
Policy Period: October 1 , 1986 through September 30, 1987
Perils: Illness and Accidental Injury (Non-work
Related)
Coverage: $1 ,000,000 Lifetime Maximum
Deductible: $150 Annually Per Person (Maximum 3 Family
Members)
Coinsurance: Coinsurance coverage begins when a limit of
20% reaches $1 ,000 yearly, then James Benefits
pays 100% of eligible expenses. James
Benefits 80% - employee 20% after deductible.
Premium: Annual Estimate $301 ,967.00
Q Policy: Dental Insurance
Company: Fred S. James Benefits
Policy No.: City of Wichita Falls Employee Benefit Trust
Policy Period: October 1 , 1986 through September 30, 1987
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 - $50 Annually Per Person
(Maximum 3 Family Members) ; No Deductible for
orthodontics
Coinsurance: 80-20 Basic, 50-50 Orthodontics, 50-50
Periodontics
Premium: Annual Estimate $ 51 ,211 .00
R Policy: Life Insurance
Company: Aetna Life and Casualty
Policy No.: GT-47782 (Group #)
Policy Period: October 1 , 1986 through September 30, 1987
Perils: Death and Dismemberment Benefits
Coverage: Varies from $1 ,000; $3,000; $5,000; $7,500;
$10,000; $12,000; $14,000; $15,000. Double
Indemnity for Accidental Death. Dismemberment
Benefits.
Deductible: N/A
Coinsurance: N/A
Premium: Annual Estimate $ 75,000.00
99
EXHIBIT K-18
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
SCHEDULE OF EMPLOYEE BENEFIT INSURANCE (UNAUDITED) (CONT'D. )
SEPTEMBER 30, 1986
Insurance
Code
S Policy: Life Insurance (Directors Only)
Company: Pilot Life Insurance Company
Policy No. : 0548 (Group #)
Policy Period: January 1 , 1986 to December 31 , 1987
Perils: Accidental Death and Dismemberment
Coverage: $25,000
Deductible: N/A
Coinsurance: N/A
Premium: Annual Estimate $ 180.00
100