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TEXAS
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2011
ISSUED BY:
DEPARTMENT OF FINANCE
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2011
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Letterof Transmittal............................................................................................................................... i-vi
GFOA Certificate of Achievement.......................................................................................................... vii
OrganizationalChart.............................................................................................................................. viii
Listof Principal Officials......................................................................................................................... ix
FINANCIAL SECTION
IndependentAuditor's Report................................................................................................................ 1-2
Management's Discussion and Analysis................................................................................................ 3-13
BASIC FINANCIAL STATEMENTS:
Statementof Net Assets................................................................................................................A-1 14
Statementof Activities...................................................................................................................A-2 15
Balance Sheet-Governmental Funds...........................................................................................A-3 16
Reconciliation of the Governmental Funds Balance Sheet to the Statement
ofNet Assets................................................................................................................................A-4 17
Statement of Revenues, Expenditures and Changes in Fund Balances-
GovernmentalFunds....................................................................................................................A-5 18
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of the Governmental Funds to the Statement of Activities...........................................A-6 19
Statement of Fund Net Assets- Proprietary Funds.......................................................................A-7 20-21
Statement of Revenues, Expenses and Changes in Fund Net Assets-
ProprietaryFunds ........................................................................................................................A-8 22
Statement of Cash Flows-Proprietary Funds...............................................................................A-9 23-24
Statement of Fiduciary Assets and Liabilities...............................................................................A-10 25
Notes to the Financial Statements.................................................................................................... 26-58
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule-General Fund.........................................................................B-1 59
Notes to the Required Supplementary Information........................................................................... 60
Texas Municipal Retirement System-Analysis of Funding Progress-
LastTen Plan Years.................................................................................................................... B-2 61
Wichita Falls Firemen's Relief and Retirement Fund-Analysis of Funding Progress................... B-3 62
Wichita Falls Retiree Health Care Plan-Analysis of Funding Progress........................................ B-4 63
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2011
TABLE OF CONTENTS (CONT'D.)
Exhibit Page
COMBINING FINANCIAL STATEMENTS:
Nonmajor Governmental Funds:
Combining Balance Sheet........................................................................................................C-1 64
Combining Statement of Revenues, Expenditures and Changes in Fund Balances................C-2 65
Budgetary Comparison Schedule—Community Development Block Grant.............................C-3 66
Budgetary Comparison Schedule—Section 8 Housing Fund...................................................C-4 67
Budgetary Comparison Schedule—Home Investment Partnership Agreement Fund..............C-5 68
Budgetary Comparison Schedule—Hotel/Motel Tax Fund.......................................................C-6 69
Budgetary Comparison Schedule—Golf Fund.........................................................................C-7 70
Budgetary Comparison Schedule—MPEC Fund......................................................................C-8 71
Budgetary Comparison Schedule—Debt Service Fund ...........................................................C-9 72
Nonmajor Enterprise Funds:
Combining Statement of Net Assets.........................................................................................D-1 73
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets..................D-2 74
Combining Statement of Cash Flows........................................................................................D-3 75-76
Internal Service Funds:
Combining Statement of Net Assets......................................................................................... E-1 77
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets .................. E-2 78
Combining Statement of Cash Flows........................................................................................ E-3 79
Agency Fund:
Statement of Changes in Assets and Liabilities........................................................................ F-1 80
Component Units:
Combining Statement of Net Assets.........................................................................................G-1 81
Combining Statement of Activities............................................................................................G-2 82
SUPPORTING SCHEDULES:
Combined Schedule of Bonded Debt and Interest Maturities........................................................H-1 83
Combined Schedule of Bonds Payable.........................................................................................H-2 84-88
Debt Service Coverage—Revenue Bonds....................................................................................H-3 89
Capital Assets Used in the Operation of Governmental Funds-
Schedule By Function and Activity...............................................................................................H-4 90
Capital Assets Used in the Operation of Governmental Funds-
Schedule of Changes By Function and Activity...........................................................................H-5 91
Municipal Airport Fund—Capital Assets and Accumulated Depreciation......................................H-6 92
Kickapoo Airport Fund—Capital Assets and Accumulated Depreciation......................................H-7 93
Transit Fund—Capital Assets and Accumulated Depreciation......................................................H-8 94
Stormwater Drainage Fund-Capital Assets and Accumulated Depreciation................................H-9 95
Sanitation Fund—Capital Assets and Accumulated Depreciation................................................H-10 96
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30,2011
TABLE OF CONTENTS (CONT'D.)
Exhibit Page
Water and Sewer Fund—Capital Assets and Accumulated Depreciation....................................H-11 97
Waterpark Fund—Capital Assets and Accumulated Depreciation...............................................H-12 98
Fleet Maintenance Fund—Capital Assets and Accumulated Depreciation..................................H-13 99
Duplicating Services Fund—Capital Assets and Accumulated Depreciation...............................H-14 100
Employee Benefit Trust Fund—Capital Assets and Accumulated Depreciation..........................H-15 101
Wichita Falls Economic Development Corporation—Capital Assets and
Accumulated Depreciation..........................................................................................................H-16 102
STATISTICAL SECTION (UNAUDITED)
Net Assets By Component—Last Nine Fiscal Years......................................................................1-1 103
Changes in Net Assets—Last Nine Fiscal Years...........................................................................1-2 104-105
Fund Balances, Governmental Funds—Last Ten Fiscal Years......................................................1-3 106
Changes in Fund Balances, Governmental Funds—Last Ten Fiscal Years..................................1-4 107
Tax Revenues By Source, Governmental Funds—Last Ten Fiscal Years.....................................1-5 108
Assessed and Estimated Actual Value of Taxable Property—Last Ten Fiscal Years....................1-6 109
Direct and Overlapping Property Tax Rates—Last Ten Fiscal Years ............................................1-7 110
Principal Property Taxpayers—Current Year and Nine Years Ago................................................1-8 111
Property Tax Levies and Collections—Last Ten Fiscal Years........................................................1-9 112
Ratios of Outstanding Debt by Type—Last Ten Fiscal Years.......................................................1-10 113
Ratios of General Bonded Debt Outstanding—Last Ten Fiscal Years..........................................1-11 114
Direct and Overlapping Governmental Activities Debt ..................................................................1-12 115
Computation of Legal Debt Margin—Last Ten Fiscal Years.........................................................1-13 116
Pledged Revenue Coverage—Water and Sewer Revenue Bonds—
LastTen Fiscal Years..................................................................................................................1-14 117
Demographic Statistics—Last Ten Fiscal Years...........................................................................1-15 118
Principal Employers—Current Year and Ten Years Ago...............................................................1-16 119
Full-Time Equivalent City Government Employees by Function/Program—
LastTen Fiscal Years..................................................................................................................1-17 120
Operating Indicators by Function/Program—Last Ten Fiscal Years .............................................1-18 121
Capital Asset Statistics by Function/Program—Last Ten Fiscal Years.........................................1-19 122
Graphics:
Cashand Investments...............................................................................................................J-1 123
TotalBonds Payable..................................................................................................................J-2 124
General Obligation Bonds Payable............................................................................................J-3 125
Revenue Bonds Payable...........................................................................................................J-4 126
GeneralFund Equity..................................................................................................................J-5 127
Comparison of Tax Levy and Collections .................................................................................J-6 128
Revenues by Source—FYE 9/30/11..........................................................................................J-7 129
Expenditures by Function—FYE 9/30/11 ..................................................................................J-8 130
General Governmental Revenues (General Fund Only)............................................................J-9 131
General Governmental Expenditures(General Fund Only) .....................................................J-10 132
Introductory Section
TEXAS OFFICE OF THE CITY MANAGER
B/u�SkieS.Clolden O��ortun>�ir�,.
March 20,2012
The Honorable Mayor,
Members of the City Council,
City Manager and Citizens of Wichita Falls,Texas
I am pleased to submit herewith, the Comprehensive Annual Financial Report (CAFR) of the City of Wichita
Falls, Texas for the fiscal year ended September 30, 2011. The purpose of this report is to provide the City
Council, City Manager, citizens and other interested parties with detailed information concerning the financial
condition of the City of Wichita Falls. In addition,this report provides assurance that the City presents fairly its
financial position as verified by independent auditors.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
The CAFR of the City of Wichita Falls, Texas, for the year ended September 30, 2011, was prepared in
accordance with accounting principles as promulgated by the Governmental Accounting Standards Board
(GASB). The financial statements and related notes have been audited by the independent audit firm of Edgin,
Parkman,Fleming&Fleming,PC,whose report is included herein.
Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation,
including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material
aspects;that it is presented in a manner designed to fairly set forth the financial position and results of operation
of the City as measured by the financial activity of its various funds;and that all disclosures necessary to enable
the reader to gain understanding of the City's financial activities have been included.
The CAFR continues to present financial data using the reporting model promulgated by GASB Statement No.
34. This reporting model changed governmental financial reporting by incorporating government-wide financial
statements. The Finance Department believes that this presentation provides better information to users of the
report, and it requires management to provide a narrative introduction,overview and analysis to accompany the
basic financial statements in the form of a Management's Discussion and Analysis(MD&A). The MD&A can be
found immediately following the independent auditors' report and is designed to complement this transmittal
letter and should be read in conjunction with it.
GENERAL INFORMATION-CITY OF WICHITA FALLS,TEXAS
The City of Wichita Falls is located 15 miles south of the Red River/Oklahoma border at the intersection of
Interstate 44 and U.S. Highway 287. The city is approximately 130 miles northwest.of Dallas and 125 miles
south of Oklahoma City. Wichita Falls is the county seat of Wichita County and the major population center in
North Texas, serving a trade area which extends into southern Oklahoma. Wichita Falls has a strong
international presence, unique for a city of its size and location. Sheppard Air Force Base maintains the Euro-
NATO jet pilot training program;there is considerable international investment in the area's manufacturing base;
and Midwestern State University has significant foreign student representation. Principal employers within the
area manufacture glass,engine components,flexible packaging,laundry equipment,and pipe. North Texas State
Hospital-Wichita Falls Branch, Midwestern State University, James V. Allred Prison and Sheppard Air Force
Base are also large employers located within the city. The City operates a Multi-Purpose Events Center,which
includes a coliseum,exhibit hall,and an agricultural arena/show barn. The 2010 population for Wichita Falls,as
CITY OF WICHITA FALLS
1300 7T"Street P.O. Box 1431 Wichita Falls,Texas 76307 t: (940761-7404 f: (940)761-8833
www.wichitafallstx.gov
estimated by the United States Census Bureau, is 104,553, an increase of 0.3%over the 2000 Census estimates,
and an increase of 8.35%over,the 1990 population.
CITY SERVICES AND ORGANIZATION OF THE GOVERNMENT
The City of Wichita Falls utilizes a Council-Manager form of government and is organized under the
Constitution and Laws of the State of Texas. The City Council is comprised of five members elected from
separate districts, and a Mayor and one member elected by the citizens at-large. The City Council appoints the
City Manager, City Attorney, Municipal Court Judge and City Clerk. All other staff members work under the
direction of the City Manager.
The City provides on a continuing basis a full range of basic municipal services including: public safety(police,
fire and building inspection); highways, streets and engineering; health and welfare services; parks, recreation
and cemeteries; library services;public improvements;planning and zoning; and general administrative services.
In addition,the City provides water,sewer,sanitation and transportation services for its citizens.
ECONOMIC CONDITION AND ACTIVITY
Wichita Falls has successfully diversified its economy to include manufacturing, government, medical services,
and education in addition to the more typical North Texas industries of agriculture, and oil and gas production.
Manufacturing plays a vital role in the area economy. Wichita Falls has over 257 manufacturing outlets with
$254 million in annual payroll, representing approximately 13% of total employment within the city. Large
durable goods manufacturing represents a major portion of the area's employment base including metal
fabrication, industrial and commercial machines and equipment, and assorted plastic and glass products. The
remaining manufacturing jobs are in the processing of non-durable goods such as food, printing materials and
garments. Six of the local manufacturers are operated by Fortune 500 companies or their subsidiaries. Three
area manufacturing facilities are foreign-owned,representing France, Sweden, and Switzerland. The community
has benefited in recent years through several major industrial expansions that have contributed in excess of$180
million in new manufacturing investments.
At the beginning of the 2009-10 fiscal year, the local economy was showing considerable signs of stress. In
March of 2009, the Avis/Budget Call Center closed its doors displacing 220 workers. In July of 2009, Saint
Gobain ceased manufacturing fiberglass reinforcements eliminating 750 jobs. In September 2009, Washex
closed its doors, idling 50 manufacturing workers. Also in September 2009, ABB Control announced it would
close its manufacturing operation by the end of March 2010,ultimately affecting 170 employees. The recession
also took its toll on many area businesses in the form of layoffs. Howmet/Alcoa, United Electric, Circuit City,
Wichita Tank, PPG, OCV Fabrics, Kalco Machine, Wichita Clutch and many others laid off between 10 to 20
percent of their workforce.
In response to the worst recession in modern history and this downturn in the local economy, efforts were made
to nearly double the economic development marketing campaigns. Additionally, in December of 2009 the
Chamber of Commerce, City of Wichita Falls, Convention and Visitor's Bureau, and Downtown Proud
organizations unveiled a well thought out community-wide branding, marketing and public relations campaign.
This effort was a public/private partnership with a goal of generating $250,000 per year for three years from
citizens and local businesses, and matching funds from the 4A Economic Development Corporation. Within 90
days of the goal's announcement, the funding commitments were generated. This marketing effort is nearly
two-thirds complete and discussions are underway about maintaining this program in some capacity.
The City and 4A Economic Development Corporation also made a shift in philosophy for granting economic
development incentives for primary job creation. In the past, 4A funds were awarded to companies and
payments were made six to twelve months following capital investment and job creation. In response to the
downturn in the economy, that philosophy has changed from a "pay for performance" model to a "pay for
potential" model. Essentially, this change in philosophy involved offering interest-free forgivable loans for
desirable projects. These loans are considered too risky for banks,but without these loans, companies would not
be able to expand and create new jobs. Because of the higher risk involved, performance agreements required
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the companies to provide a series of guarantees and collateral equal to or, in most cases,greater than the value of
the loan amount.
This shift in philosophy resulted in a substantial increase in expenditures of the 4A Economic Development
Corporation for the potential of job creation. During the 2009-10 fiscal year, 11 projects were approved for
funding with the potential for creating, and/or retaining, over 2,000 jobs. These projects included Carter
Aviation Technologies, Tryer Process Equipment, Natura World USA, Gel Solutions, WDS/Global, Wichita
Clutch, Armor Controls, BuyDentalEquipment.com, Excaliber Paint and Coatings, MagicAire, and Latex
International. Several of these projects have invested in the local economy resulting in the addition or retention
of hundreds of jobs. Others are still in the early phases of their expansion plans and the results remain to be seen.
4A Economic Development Sales tax funds have also been used to assist with activities of the Military Affairs
Committee, a regional organization established a few years ago to work directly with Sheppard Air Force Base
(SAFB), Air Education and Training Command, the Chief of Staff for the Air Force, and our Congressional,
State and Local elected officials. This Committee was formed to increase the value of SAFB, strengthen
community development and build a stronger economy.
Although these efforts and others have had some success,the recovery of the local economy continues to be very
slow and gradual. During 2010-11, no new major plant developments were announced, but several industries
made investments to retain over 300 primary jobs. Additionally, very few primary jobs were affected by plant
closings and layoffs. The unemployment rate also continues to improve slowly as the commercial and retail
sectors announce new additions to the community.
Although, the value of both residential and commercial permits declined during the fiscal year, the amount was
still fairly strong for Wichita Falls. Residential permits totaled$27,526,023, which is a decrease of$7,618,789,
or 22% from the prior year. Commercial construction permits totaled $74,213,111, which is a reduction'of 8%
from the prior fiscal year. Nevertheless, several commercial construction permits issued were above $1 million
in value which directly impacts local construction contractors, and often times results in additional secondary
jobs. Those permits include:
• First Baptist Church Addition—a total of 4,452 sq.ft.addition,with an estimated value of$1,000,000.
• Faith Refuge Addition—a total of 16,120 sq.ft. addition,with an estimated value of$1,750,000.
• Texhoma Christian Care Addition — a total of 15,538 sq. ft. addition, with an estimated value of
$2,500,000.
• McDonalds Commercial Assembly—a total of 3,896 sq. ft.,with an estimated value of$1,000,000.
• Wichita Christian Commercial Assembly Gym — a total of 15,724 sq. ft., with an estimated value of
$1,500,000.
• Texoma Builders Supply—a total of 29,291 sq. ft.,with an estimated value of$1,125,000.
• Office Depot—a total of 20,292 sq.ft.,with an estimated value of$1,658,060.
• Nursing Facility—a total of 42,600 sq. ft.,with an estimated value of$2,500,000.
• Quail Creek Crossing—a total of 29,125 sq. ft.,with an estimated value of$1,558,740.
• Quail Creek Crossing—a total of 26,930 sq.ft.,with an estimated value of$1,441,260.
• Cavenders Retail—a total of 16,250 sq.ft.,with an estimated value of$1,265,880.
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• Aldis Store—a total of 17,886 sq.ft.,with an estimated value of$1,250,000.
• Greenbriar Apartments—a total of 44,542 sq.ft.,with an estimated value of$8,468,040.
Another indicator of local economic performance is the retail sales tax. During the 2010-11 fiscal year, retail
sales taxes in Wichita Falls rebounded from two years of declines. In 2010-11,the City generated$28,226,934
in retail sales taxes,which was$1,515,174,or 5.67%more than in the prior fiscal year.
MAJOR INITIATIVES
For The Year. The City Council continues to identify programs to meet citizens' requests for services and to
safeguard the environment. The major challenge for the City during the 2010-11 fiscal year was to consider
increasing funding for public infrastructure improvements such as roadways, drainage, and utility line
replacements. Historically, funding for infrastructure replacement was not adequate to keep pace with the level
of deterioration of these systems.
For several years, the City has included $1.6 million in the General Fund for the Street Overlay Program. With
over 540 miles of roadway to be maintained, it is understandable that our roadways are beginning to show
significant signs of distress. As a result, the 2010-11 budget included a 2 cent increase to the property tax rate
and earmarked the additional$880,000 in additional revenue for street improvements. Additionally,the 4B Sales
Tax Board expended approximately $1 million on the reconstruction of two major downtown intersections and
made a commitment to begin budgeting $400,000 per year to repair streets in the Central Business District and
other eligible commercial areas of the city.
The budget also included an increase in the monthly fee for drainage improvement projects from$1.75 per Single
Family Living Unit Equivalent(SFLUE)to $3.55 per SFLUE. This fee is still lower than the average of 6 other
cities in Texas that have a Storm Water Utility, but provided a project budget of approximately $2 million per
year to address these projects over the next few decades. During this fiscal year, drainage improvements were
completed in Faith Village Subdivision and Beverly Drainage Basin.
At the beginning of the 2010-11 fiscal year, retail water and sewer rates were increased by 4%. At average
consumption,this rate increase will provide an additional $1.2 million annually for water and sewer line repairs,
bringing the total budget for those programs to$2.5 million.
Work is nearing completion on the City's major water system improvement projects. In 2001,the City embarked
on a $118 million improvement program designed primarily to expand the City's water supply and treatment
capabilities and to meet regulatory treatment requirements of the EPA and TCEQ. Specific projects that are
complete are the addition of Lake Kemp Reservoir,Pump Station and Pipeline;a state-of-the-art 10 mgd Reverse
Osmosis Facility; Distribution and Elevated Storage Improvements, Conventional Water Treatment Plant
Modifications and Improvements; High Service Pump Station and Storage, and new Water Plant Administration
and Maintenance Facilities. Two water system improvement projects that remain to be completed include a 10
mgd Conventional Water Treatment Expansion and a Secondary Reservoir Pumping Station. The contracts to
construct these two remaining projects totals$46 million and is expected to be complete in the summer of 2012.
In September 2010, the City began an energy efficiency project of purchasing LED street lights with American
Recovery and Reinvestment Act funds. During this fiscal year,approximately$700,000 of these funds were used
to purchase the energy saving lights. In addition, the 2011-12 budget includes $350,000 to continue this
program.
During this fiscal year, considerable strides were made in the extension of the City's Circle Hike and Bike Trail
System. In 2009, $2.9 million of bond funds were issued for the trail system. In addition, in August 2010, a
Texas Transportation Enhancement Grant in the amount of$2.5 million was awarded for continuation of the trail
system. About one-half of these funds have been expended to connect two existing sections of the trail in and
around Holliday Creek. The remaining funds are being used towards design and construction of two sections of
the trail in the western portion of the city along Seymour Highway and along Barnett Road.
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In December 2010, the City completed construction of Phase I of the Runway 17/35 Reconstruction Project at
Municipal Airport. Additionally,construction is underway on Phase II,which will complete the project. In total,
approximately $9 million will be expended on this project, 95% of which will be funded with Federal Aviation
Administration funds,and 5%with local airport funds.
For The Future. The City is also in the process of beginning the design of a new airport terminal building for
the City's Municipal Airport. A new terminal building has been identified as a need in the City's Airport Master
Plan, but funding has been a major hurdle to overcome. With an estimated construction cost in excess of$30
million, the City has a significant need for FAA discretionary and entitlement funding to assist with the cost for
this facility. However, in an effort to be in a better position to receive this grant funding,the City has committed
to 100% of the design of the parking, entry road and aircraft apron, and 35% of the terminal structure itself.
Should federal assistance not materialize in the near future,this level of design would still be useable when funds
do become available.
A major undertaking that is making progress in the downtown area is the design and construction of a new travel
center for various public and private transportation services. This new travel center will serve as a major
transportation hub for the region. Property acquisition, demolition of dilapidated property, and design services
were completed during this fiscal year using funds from the Federal Transit Administration(FTA) and the 4A
Economic Development Sales Tax Corporation. It is anticipated that construction will begin in the near future
using funds from the FTA and General City Funds. The estimated cost of the project is$3.5 million.
In October 2011, the City issued $3.2 million of 20-Year Combination Tax and Revenue Certificates of
Obligation for the Rhea/Callfield/Lawrence Road Realignment Project. This project is designed to alleviate
traffic congestion in this major retail area of the city by reducing eliminating a traffic controlled intersection.
The project consists of property acquisition, demolition, roadway construction, and traffic controls. Funds from
the 4B Sales Tax Corporation and the Tax Increment Financing Zone#2 will be used to finance the debt service
for this project.
The City also recently refinanced approximately $4.3 million of outstanding General Obligation Bonds to take
advantage of lower interest rates for the remaining life of the bonds. It is anticipated that the refinancing of this
debt will save the City approximately$600,000 over the remaining ten years of this bond issue.
FINANCIAL INFORMATION
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal
control as deemed appropriate by the City Manager. Internal control is designed to provide reasonable, but not
absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition;
and (2) the reliability of financial records for preparing financial statements and maintaining accountability for
assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits
likely to be derived and the evaluation of costs and benefits requires estimates and judgments by the City
Manager.
All internal control evaluations occur within the above framework. The City believes that its internal control
adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions.
The Annual Operating Budget is proposed by the City Manager and approved by the City Council following
public discussion. Budgetary control is maintained at the class level by the Finance Department within each
division by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors.
Purchase orders which result in an overrun of class level balances are not released until additional appropriations
are made available. In instances when budgetary transfers are necessary, management control of the operating
budget is maintained at the fund and department level. Transfers within a department of the same fund must be
approved by the City Manager. Transfers across departments or funds must be approved by the City Council.
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Unencumbered appropriation balances lapse at year end and are not carried forward to new budget periods.
Open encumbrances are reported as assignments of fund balance at September 30, 2011, and related
appropriations are carried forward to the new fiscal year through a supplemental budgetary allocation.
The City's informal policy is to maintain approximately 20% of unassigned fund balances in the General Fund
for emergencies and other unanticipated needs. These financial statements reflect that this policy has been
followed. Additionally,the City maintains an informal policy to limit tax supported debt to no more than 5%of
total assessed property value or$1,500 per capita. As of September 30,2011,the City's tax supported debt was
approximately$38 million,which is 0.86%of the taxable value of property and$363 per capita.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the books of account, financial records, and transactions of all
administrative departments of the City by Certified Public Accountants. The accounting firm of Edgin,Parkman,
Fleming & Fleming, PC was selected by the Mayor and City Council to satisfy this charter requirement. The
auditors' report on the basic financial statements and combining fund statements and schedules is included in the
financial section of this report. In addition to meeting the requirements set forth in the City Charter, the audit
also was designed to meet the requirements of the federal Single Audit Act Amendments of 1996 and related
OMB Circular A-133,and the State Single Audit Act. These reports are issued under separate cover.
Awards
The Government Finance Officers Association of the United States and Canada(GFOA)awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Wichita Falls for its Comprehensive Annual
Financial Report for the fiscal year ended September 30, 2010. This was the 16'h consecutive year that the
government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual financial report.
This report must satisfy both generally accepted accounting principles and applicable legal requirements. A
Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive
Annual Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are
submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgments
My appreciation is extended to the various elected officials, city manager, department heads and employees
responsible for the fair presentation of the CAFR and for contributing to the sound financial position of the City
of Wichita Falls. The City of Wichita Falls has been blessed with a group of persons who appreciate and respect
principles of fiscal restraint and propriety. In particular, I would like to acknowledge the special efforts of the
Department of Finance employees who contributed directly to the development of this report. The continuing
support of City Council and City Manager, who remain committed to fiscal integrity and financial leadership, is
likewise appreciated.
Respectfully submitted,
(PA 0167
Jim Dockery
Assistant City Manager/CFO
Vi
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, 2010
A Certificate of Achievement for Excellence in Financial-
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
CAMA
' President
ZAL
04
Executive Director
vii
CITY OF WICHITA FALLS
ORGANIZATIONAL CHART
WICHITAFALIA
CII7ZENS
COMNISS ONS CITY COUNCIL �— BOARDS
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Cry T MANAGER
ASSISTANT CITY PUBLIC ASSISTANT CITY
MANAGER COMMUNICATIONS MANAGER
/CFO
FINANCE AND ADMINISTRATIVE PARKS AND zIM
HUMANRESOURCES SUPPORTS RECREATION
DRYAR131M SERVICES DEPARTMENT
BUDGET FINANCE PERSONNEL RISK RECREATION PARKS MPREHENG
DEVELOPMENT ACCOUNTING MANAGEMENT MAINTENANCE PLANNION
INFORMATION PURCHASING Ewwm BUH DING M.L.K. PROPERTY CODE
SYSTEMS BENEFITS MAINTENANCE CENTER MANAGEMENT ENFORCEMENT
UTII TI Y MUMCII'AL PRINT SHOP CEMETERY NEIGHBORHOOD HOUSING
COLLECRON COURT RESOURCES
FINE TRAFFIC AND HEALTH PUBLIC WORKS/ MULTI PURPOSE
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4
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2011
Title Name
Mayor Glenn Barham
Mayor Pro-Tem Dorothy Roberts-Burns
City Council Member Michael Smith
City Council Member Rick Hatcher
City Council Member Tim Ingle
City Council Member Mary Ward
City Council Member Annetta Pope
City Manager Darron Leiker
City Attorney Miles Risley
Municipal Court Judge Larry Gillen
City Clerk Lydia Ozuna
Assistant City Manager/Director of Community
Development Kevin Hugman
Director of Aviation, Traffic and Transportation John Burrus
Assistant City Manager/Chief Financial Officer Jim Dockery
Director of Community Development Kevin Hugman
Director of Public Health Lou Franklin
Police Chief Dennis Bachman
Fire Chief Earl Foster
Director of Parks and Recreation Jack Murphy
Director of Public Works and Public Utilities Russell Schreiber
Director of Multi-Purpose Events Center Bob Sullivan
ix
Financial Section
Independent Auditor's Report
M EDGIN, PARKMAN, FLEMING & FLEMING, PC
CERTIFIED PUBLIC ACCOUNTANTS
MICHAEL D.EDGIN,CPA
4110 KELL BLVD.,SECOND FLOOR P.O.Box 750 DAVID L.PARKMAN,CPA,CFE
WICHITA FALLS,TEXAS 76307-0750 A.PAUL FLEMING,CPA
PH.(940)766-5550 • FAx(940)766-5778 J.MARK FLEMING,CPA
Independent Auditor's Report
The Honorable Mayor and Members of the City Council
City of Wichita Falls, Texas
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of the City of Wichita Falls, Texas, as of and for
the year ended September 30, 2011, which collectively comprise the City's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of
the City's management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Wichita Falls, Texas, as of September 30, 2011, and the
respective changes in financial position, and cash flows, where applicable, thereof for the year
then ended in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued under separate cover
our report dated March 20, 2012 on our consideration of the City of Wichita Falls, Texas'
internal control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements and other matters. The purpose of that report
is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our
audit.
1
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, the Budgetary Comparison Schedule — General Fund,
the schedules on the Texas Municipal Retirement System, the Wichita Falls Firemen's Relief and
Retirement Fund, and the Wichita Falls Retiree Health Care Plan be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management's responses to
our inquiries, the basic financial statements, and other knowledge we obtained during our audit of
the basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements as a whole. The introductory section,
combining and individual fund financial statements, supporting schedules, and statistical section
are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining and individual fund financial statements and supporting schedules
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the basic financial statements taken as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
EDGIN, PARKMAN, FLEMING & FLEMING, PC
Wichita Falls, Texas
March 20, 2012
2
Management Discussion and Analysis
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City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2011
Management's discussion and analysis provides a narrative overview of the financial activities
and changes in the financial position of the City of Wichita Falls, Texas, for the fiscal year ended
September 30, 2011. It is offered here by the management of the City to the readers of its
financial statements. Readers should use the information presented here in conjunction with
additional information furnished in our letter of transmittal, which can be found in the
Introductory Section of this Comprehensive Annual Financial Report.
Financial Highlights
The assets of the City of Wichita Falls exceeded its liabilities at September 30, 2011, by
$359,490,329 (net assets). Of this amount, $30,196,722 (unrestricted net assets) may be used to
meet the government's ongoing obligations to citizens and creditors.
The City's total net assets increased by $12,996,330. This increase can be attributed to several
factors: (1) water sales exceeded budget projections by approximately $3.7 million due to
extreme hot and dry summer weather conditions during the summer months; (2) continued
reduction in long term liabilities (outstanding debt) in business and governmental activities; (3)
sales tax receipts were above budgeted amounts; (4) receipt of grant funds from the state
government to construct an above ground fuel farm at Kickapoo Airport; (5) income at the
Municipal Airport due to recently implemented customer and passenger facility charges; (6)
income in the Stormwater Utility Fund that is being reserved for future drainage improvement
projects; (7) less than anticipated expenses for salaries, benefits and worker's compensation
claims in the governmental funds; and(8)net income at the Castaway Cove Water Park.
At September 30, 2011, the City's governmental funds reported combined ending fund balances
of $29,806,579. Of this amount, $15,977,943, or 53.61%, is available for spending at the
government's discretion, (unassigned fund balance).
At the end of the current fiscal year, unassigned fund balance for the General Fund was
$16,002,361 or 25.36% of total General Fund expenditures.
During the 2010-11 fiscal year, total City debt decreased by $8,363,563. The primary reason for
this reduction is because the City continued to retire outstanding General Obligation Bonds,
Water and Sewer System Revenue Bonds, and Combination Tax and Revenue Bonds, without
borrowing any additional long term debt.
3
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2011
(continued)
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The reporting focus is on the City as a whole and on individual major funds. It is
intended to present a comprehensive view of the City's financial activities. The basic financial
statements are comprised of three components: 1)government-wide financial statements, 2)fund
financial statements, and 3) notes to the financial statements. This report contains other
supplementary information in addition to the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements, which can be found on pages 14-15 of this report,
include the Statement of Net Assets (Exhibit A-1) and the Statement of Activities (Exhibit A-2).
These statements are designed to provide readers with a broad overview of the City's finances in
a manner similar to a private-sector business. Both are prepared using the economic resources
focus and the accrual basis of accounting; meaning that all current year's revenues and expenses
are included regardless of when cash is received or paid. Thus, revenues and expenses are
reported in these statements for some items that will result in cash flows in future fiscal periods
(e.g.uncollected taxes and earned but not used vacation leave).
The Statement of Net Assets presents information on all of the City's assets and liabilities,
including capital assets and long-term obligations. The difference between the City's assets and
liabilities is reported as net assets. Over time, the increases or decreases in net assets may serve
as a useful indicator of whether the financial position of the City is improving or deteriorating.
Other indicators of the City's financial position should be taken into consideration, such as the
change in the City"s property tax base and condition of the City's infrastructure (e.g., roads,
traffic signals, water and sewer lines, etc.), in order to more accurately assess the overall financial
condition of the City.
The Statement of Activities presents information showing how the City's net assets changed
during the most recent fiscal year. It focuses on both the gross and net costs of the government
services. This statement includes all current year revenues and expenses.
The Statement of Net Assets and the Statement of Activities divide the City's activities into three
types:
Governmental activities — Most of the City's basic services are reported here, including police,
fire, parks and recreation, public works, health, traffic and transportation, community
development and planning, duplicating services, information technology,health insurance claims,
and general administration and finance. The Multi-Purpose Events Center and Champions Golf
Course are also reported as governmental activities. Property taxes, sales taxes, franchise fees,
and various grant funds provide the majority of financing for these activities.
4
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2011
(continued)
Business-Ope activities —Activities for which the City charges fees to customers to pay most or
all of the cost of a service it provides are reported as business-type activities. The City's
business-type activities include water and wastewater treatment and distribution, solid waste
collection and disposal, municipal airports, transit system, storm water drainage improvements,
fleet maintenance services and water park operations.
Component Units — Four legally separate organizations, for which the City is financially
accountable, are included in these statements as discretely presented component units. These
organizations include the Wichita Falls Economic Development Corporation, Wichita Falls 4B
Sales Tax Corporation, Wichita Falls Reinvestment Zone#2, and the Wichita Falls Reinvestment
Zone#3.
Fund Financial Statements
The City of Wichita Falls, like other state and local governments,uses fund accounting to provide
more detailed information about the City's most significant funds, not the City as a whole. A
fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. Some funds are required to be established by
state law or bond covenants. However, the City Council establishes many other funds to help it
control and manage money for particular purposes or to show that it is meeting legal
responsibilities. All of the funds of the City can be divided into three categories: governmental
funds,proprietary funds and fiduciary funds.
Governmental Funds — These funds are used to account for the majority of the City's activities,
which are essentially the same functions reported as governmental funds in the government-wide
statements. However, unlike the government-wide financial statements, governmental fund
financial statements are reported using an accounting method identified as the modified accrual
basis of accounting, which measures cash and all other financial assets that can be readily
converted to cash. The governmental fund statements focus on near-term inflows and outflows of
expendable resources, as well as expendable resources available at the end of the fiscal year for
future spending. Such information may be useful in evaluating a government's near-term
financing requirements.
The focus of the governmental funds financial statements is narrower than that of the
government-wide financial statements. Therefore, it is useful to compare the information
presented for governmental funds with similar information presented for governmental activities
in the government-wide statements. By doing so, readers may better understand the long-term
impact of the government's short term financing decisions. Both the Governmental Fund Balance
Sheet and the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund
Balances provide a reconciliation to facilitate this comparison. The reconciliation explains the
differences between the government's activities reported in the government-wide statements and
the information presented in the governmental funds financial statements.
5
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2011
(continued)
The City of Wichita Falls maintains 15 individual governmental funds. Information for the
General Fund is presented separately in the Governmental Fund Balance Sheet and in the
Governmental Fund Statement of Revenues and Changes in Fund Balances because it is
considered a major fund of the City. Data for the other governmental funds are combined into a
single, aggregated presentation. Individual fund data for each of the non-major governmental
funds are provided in the Combining Financial Statement Section of this report.
The Basic Governmental Funds Financial Statements can be found on pages 16-19 of this report.
Proprietary Funds—When the City charges customers for services it provides,whether to outside
customers or to other units within the City, the activities are generally reported in proprietary
funds. The City of Wichita Falls maintains two different types of proprietary funds: enterprise
funds and internal service funds.
• Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to
account for its water and sewer operations, sanitation collection and disposal services,
municipal airports, transit operations, storm water utility district, and water park
operations.
• Internal service funds are an accounting device used to report activities that provide
supplies and services to other City programs, such as fleet maintenance, print shop
services, information technology, and employee benefit trust. Because these services
benefit both governmental and business-type functions,they have been allocated between
governmental and business-type activities in the government-wide financial statements.
Proprietary fund financial statements provide the same type of information as the business-type
activities shown in the government-wide financial statements, only in more detail and include
some of the internal service fund-type activities. The proprietary fund financial statements
provide separate information for the Water and Sewer Fund and the Sanitation Fund since they
are considered to be major funds of the City. The non-major proprietary funds are combined into
a single, aggregated presentation in the proprietary fund financial statements. Individual fund
data for each of the non-major proprietary funds are provided in the Combining Financial
Statement Section of this report.
Fiduciary Funds—Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City's own
programs. The accounting method used for fiduciary funds is much like that used for proprietary
funds. Agency funds are a component of fiduciary funds and are used to account for situations
where the City's role is purely custodial, such as receipt,temporary investment and remittance of
fiduciary funds to individuals, private organizations or other governments. The City maintains
one fiduciary fund. This fund is an agency fund used to account for property that has been
abandoned or unclaimed pending escheatment to the State of Texas.
6
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2011
(continued)
Notes to the Financial Statements
The Notes to the Financial Statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. These
notes can be found on pages 26-58 of this report.
Government-Wide Financial Analysis
The City's combined net assets were $359,490,329 as of September 30, 2011, an increase of
$12,996,330, or 3.75% from the prior year. Using the Tables below, an analysis of the net assets
of the City can be made. The largest portion of the City's net assets, $311,510,445, or 86.65%, is
reflected in capital assets (land and improvements, buildings, infrastructure, machinery and
equipment), less any related debt used to acquire those assets that is still outstanding. The City
uses these assets to provide services to its citizens; consequently,these assets are not available for
future spending. Although the City reports its capital assets net of related debt, the resources
needed to repay this debt must be provided from other sources since the capital assets themselves
cannot be used to liquidate these liabilities.
An additional portion of the City's net assets, $17,783,162, or 4.95%, represents resources that
are subject to external restrictions on how they may be used. The remaining balance of net assets,
$30,196,722, or 8.40%, may be used to meet the government's ongoing obligations to citizens
and creditors.
Net Assets
(in thousands)
Governmental Business-type
Activities Activities Total
2011 2010 2011 2010 2011 2010
Current and Other Assets $ 37,262 $ 42,290 $ 59,273 $ 71,443 $ 96,535 $ 113,733
Capital Assets 169,806 167,699 290,817 274,169 460,623 441,868
Total Assets 207,068 209,989 350,090 345,612 557,158 555,601
Long Term Liabilities 45,605 47,732 134,328 140,367 179,933 188,099
Other Liabilities 9,349 12,030 8,386 8,978 17,735 21,008
Total Liabilities 54,954 59,762 142,714 149,345 197,668 209,107
Net Assets:
Invested in Capital Assets,
Net of Related Debt 138,876 135,957 172,634 172,591 311,510 308,548
Restricted 6,048 5,006 11,735 12,942 17,783 17,948
Unrestricted 7,190 9,264 23,007 10,734 30,197 19,998
Total Net Assets 152 114 150 227 207 376 196 267 359 490 346 494
7
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2011
(continued)
CHANGES IN NET ASSETS
(in thousands)
Governmental Business-type
Activities Activities Total
2011 2010 2011 2010 2011 2010
Revenues:
Program Revenues:
Charges For Services $ 9,431 $ 9,350 $ 58,747 $ 49,345 $ 68,178 $ 58,695
Operating Grants and
Contributions 13,269 14,607 1,323 2,312 14,592 16,919
Capital Grants and Contributions 2,315 6,146 193 108 2,508 6,254
General Revenues:
Property Taxes 28,557 27,570 - - 28,557 27,570
Sales Taxes 21,083 20,034 - - 21,083 20,034
Other Taxes/Fees 7,485 7,471 - - 7,485 7,471
Investment Earnings 49 130 51 194 100 324
Miscellaneous - 161 (42) 153 (42) 314
Total Revenue 82,189 85,469 60,272 52,112 142,461 137,581
Expenses:
Administrative Services 10,882 10,043 - - 10,882 10,043
Police 21,823 21,133 - - 21,823 21,133
Fire 13,291 13,066 - - 13,291 13,066
Parks and Recreation 5,406 5,688 - - 5,406 5,688
Accounting/Finance 2,534 2,428 - - 2,534 2,428
Community Development 7,084 7,244 - - 7,084 7,244
Public Works 7,613 8,036 - - 7,613 8,036
Health 4,911 4,932 - - 4,911 4,932
Traffic and Transportation 2,451 2,525 - - 2,451 2,525
MPEC 4,296 4,181 - - 4,296 4,181
Interest and Fees on Long-term
Debt 1,765 1,781 - - 1,765 1,781
Golf - - - - - -
Municipal Airport - - 436 338 436 338
Kickapoo Airport - - 1,263 1,108 1,263 1,108
Transit - - 1,847 1.602 1,847 1,602
Sanitation - - 8,960 9,152 8,960 9,152
Water and Sewer - - 32,970 30,250 32,970 30,250
Stormwater Drainage - - 534 786 534 786
Waterpark - - 1,399 1,254 1,399 1,254
Total Expenses 82,056 81,057 47,409 44,490 129,465 125,547
Increase(Decrease)in Net Assets
Before Transfers 133 4,412 12,863 7,622 12,996 12,034
Transfers 1,754 (8,803) (1,754) 8,803 - -
Increase(Decrease)in Net Assets 1,887 (4,391) 11,109 16,425 12,996 12,034
Net Assets-Beginning of Year 150,227 154,618 196,267 179,842 346,494 334,460
Prior Period Adjustment - - - - - -
Net Assets-End of Year $152,114 SIN,227 SZQ7,376 196 267 San 490 346 494
8
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2011
(continued)
Governmental Activities—Governmental Activities increased the City's net assets by$1,887,260.
Much of that increase was due to higher than anticipated revenues from the City's sales tax. The
City also realized savings in expenditures for worker's compensation claims and salaries due to
turnover in personnel. The City also retired outstanding debt during this fiscal year without
issuing any new bonds.
Business-Type Activities — Business-type Activities increased the City's net assets by
$11,109,070, which was 85.48% of the total growth in the City's net assets. The City continues
to reduce liabilities in its Water and Sewer Fund as debt service payments are made on
outstanding revenue bonds. Business-type Activities also benefited from much higher water sales
due to very hot and dry summer weather. Other reasons for increases in net assets included (1)
receipt of grant funds from the state government to construct an above ground fuel farm at
Kickapoo Airport; (2) income at the Municipal Airport due to recently implemented customer and
passenger facility charges; (3) income in the Stormwater Utility Fund that is being reserved for
future drainage improvement projects; and(4)net income at the Castaway Cove Water Park.
Financial Analysis of the City's Funds
Governmental Funds — The focus of the governmental funds is to provide information on near-
term inflows, outflows and balances of expendable resources. Such information is useful in
assessing the City's financing requirements. In particular, unassigned fund balance may serve as
a useful measure of a government's net resources available for spending at the end of the fiscal
year.
As of September 30, 2011, the City's governmental funds reported combined fund balances of
$29,806,579, which is a reduction of$1,197,994 from the prior year. This reduction was due,
however, to the expenditure of designated Capital Project funds for the Rhea/Callfield/Lawrence
Road Realignment Project, the City's new Animal Shelter and improvements to the Park Trail
System.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year,
unassigned fund balance of the General Fund was $16,002,361, an increase of$1,707,842 from
the unreserved fund balance in the prior year. As a measure of the General Fund's liquidity, it
may be useful to compare both the unassigned fund balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 25.36% of total General Fund expenditures,
while the total fund balance represents 27.04%of total General Fund expenditures.
Proprietary Funds — The financial statements of the proprietary funds provide information for
two types of funds: the business type (enterprise) funds and the internal service funds. The
accounting principles applied to proprietary funds are similar to that of the private sector.
Consequently, with the exception of the allocation of internal service fund net income or loss,the
net assets and changes in net assets of the enterprise funds in these financial statements are
identical with the net assets and changes in net assets reflected in the business type activities in
the city-wide presentation.
9
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2011
(continued)
The City's internal service funds include the Fleet Maintenance Fund, Employee Benefit Trust
Fund, Duplicating Services Fund and the Information Technology Fund. At the close of
September 30, 2011, the net assets for the City's internal service funds were $22,726,827, a
reduction of$1,658,179. This reduction is principally because the City's fleet depreciated more
than was gained in new assets. Additionally, both the Duplicating Service's Fund and the
Employee Benefit Trust Fund experienced a loss in net income. It should be noted that of the net
assets for the City's internal service funds, $19,185,252 is invested in capital assets and
$2,152,075 is reserved for employee life and health benefits. The remainder of net assets of the
internal service funds is typically used to replace equipment in the Fleet Maintenance Fund. The
purpose of the internal service funds is to provide services within the organization on a
break-even basis. The net income or loss from these internal service funds has been allocated
back to the using departments or funds for the City-wide financial statements.
General Fund Budgetary Highlights
The final amended expenditure budget for the General Fund, including transfers out, was
increased by $1,609,521 from the original adopted budget. The primary reasons for this increase
in appropriations can be briefly summarized as follows:
• Approximately $1,056,000 of prior year encumbrances for numerous commitments were
carried forward to the 2010-11 amended budget, most of which was for street
improvements.
• Approximately $403,000 was appropriated for to assist with design of a new terminal
building at Municipal Airport.
• An additional $151,000 was budgeted as the City's matching requirement of a grant
awarded to the City to purchase two buses for the Transit System.
Actual revenues in the General Fund for the 2010-11 fiscal year were $62,891,738, which was
$1,071,437 above final budgeted figures. The largest share of this amount was due to higher than
anticipated receipts from sales taxes. Franchise fees from ONCOR also exceeded budget
estimates due to a legal settlement that resulted in additional revenue to the City. The City also
exceeded budget estimates in Municipal Court Fines.
Actual expenditures in the General Fund for the 2010-11 fiscal year were $63,090,658 compared
to a final budget of$64,725,145. Much of this variance was due to turnover in personnel that
allowed positions to remain unfilled for a period of time. The City also continued to benefit
greatly through a third party administrative agreement to manage workers compensation claims.
The City also saved money in electricity expenses, principally due to installation of LED street
lights. Finally,there was over$579,000 in encumbrances that were not liquidated by the close of
the fiscal year and will be expended during the 2011-12 fiscal year.
10
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2011
(continued)
Capital Asset and Debt Administration
Capital Assets - The City's investment in capital assets for its governmental and business-type
activities as of September 30, 2011 amounts to $460,623,116 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, equipment, infrastructure and
construction in progress.
Major capital asset events during this fiscal year included the following:
• Continued improvements to the water system, principally at Cypress Water Treatment
Plant.
• Construction of a fuel farm at Kickapoo Airport
• Runway Improvements at Municipal Airport
• Drainage Improvements principally in Faith Village and Plum Creek
• Construction of a new Animal Services Center
• Extension of the Park System Hike/Bike Trail
• Callfield/Rhea/Lawrence Road Realignment Project
• Downtown intersection reconstruction
Capital Assets,net of Accumulated Depreciation
(in thousands)
Governmental Business-type
Activities Activities Total
2011 2010 2011 2010 2011 2010
Land $ 10,609 $ 9,314 $ 8,970 $ 8,855 $ 19,579 $ 18,169
Land Betterments 19,199 19,629 22,926 18,178 42,125 37,807
Buildings,Systems
and Improvements 52,069 49,927 193,751 190,054 245,820 239,981
Infrastructure 74,346 72,255 - - 74,346 72,255
Machinery and Equip 13,145 9,496 2,024 2,095 15,169 11,591
Furniture and Fixtures 5 8 1 2 6 10
Motor Vehicles - - 16,638 18,163 16,638 18,163
Construction in
Progress 433 7,070 46,507 36,822 46,940 43,892
Totals 169 806 167 699 290 817 S274 169 S441 868
Additional information on the City's capital assets can be found in Note 7 on pages 41-43 of this
report.
11
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2011
(continued)
Long Term Debt — At the end of the current fiscal year, the City of Wichita Falls had a total
bonded debt, notes and capital leases outstanding of$168,750,471. The City did not issue any
new long term debt obligations or refinance any outstanding bond issues during the 2010-11
fiscal year.
As of September 30, 2011,Moody's Investor's Service had assigned a credit rating of Aa2 for the
City's General Obligation Bonds and a rating of Al for the City's Water and Sewer System
Revenue Bonds. Standard & Poor's had assigned a credit rating of AA for the City's General
Obligation Bonds and a rating of AA-for its Water and Sewer System Revenue Bonds.
Outstanding Debt at Year-End
(in thousands)
Governmental Business-type
Activities Activities Total
2011 2010 2011 2010 2011 2010
General Obligation Bonds $ 4,450 $ 4,790 $ - $ - $ 4,450 $ 4,790
Combination Tax and
Revenue Bonds 34,104 35,919 23,970 27,745 58,074 63,664
Utility System Revenue - -
Bonds 105,278 107,502 105,278 107,502
Capital Lease Payable - - 372 550 372 550
Notes Payable = = 577 609 577 609
Total 38 554 40 709 130 197 136 406 168 751 177 115
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, 2011, was $.62526 per$100, which means that the City has a tax margin of
$1.62474 per $100, and could raise up to $71,846,695 additional tax revenue a year from the
present assessed valuation of $4,422,042,602 before the limit is reached. The current ratio of
general bonded debt outstanding to the assessed value of all taxable property is 0.87%.
Additional information about the City's long-term debt can be found in Note 13 on pages 51-54
of this report.
12
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2011
(continued)
Economic Factors and Next Year's Budget and Rates
Total 2011-12 operating revenues, not including fund balance appropriations or operating
transfers for the new Information Technology Fund, are budgeted at $149,063,317, which is an
increase of$2,228,929,or 1.52%from the 2010-11 adopted budget.
In the 2011-12 budget, sales taxes in the General Fund are projected to generate $21,199,148, an
increase of$1,262,856, or 6.33% from the prior year adopted budget. It should be noted that this
projection was based upon an estimate of 2010-11 actual receipts and a growth rate of 1.00%.
This projection is fairly conservative given the recent growth rate that has been experienced.
The Property Tax is the largest source of revenue in the City's budget and is relied heavily upon
to provide general City services. The property tax base, as certified by the Wichita County
Appraisal District, is $4.43 billion; an increase of $8.6 million, or 0.19% from the prior year.
This is the third consecutive year that the property tax base has remained relatively unchanged.
The budget maintained a property tax rate of$0.62526 per$100 of taxable property.
Although retail water and sewer rates remained the same, wholesale water rates were increased
on average by 10%.
Finally, the City Council increased rates for Refuse Collection Services by 4.7%to begin setting
aside funding for a future landfill cell construction and to cover rising fuel prices.
Requests for Information
This financial report is designed to provide a general overview of the City of Wichita Falls'
finances for all those with an interest in the government's finances. Questions concerning any of
the information provided in this report, or request for additional financial information, should be
addressed to the City Finance Department, 1300 Seventh Street, Wichita Falls,Texas 76301.
13
Basic Financial Statements
EXHIBIT A-1
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2011
Primary Government
Governmental Business-type Component
Activities Activities Total Units
Assets
Cash and cash equivalents $ 31,040,653 $ 13,590,002 $ 44,630,655 $15,369,941
Receivables(net):
Taxes and assessments 1,166,462 - 1,166,462 -
Customer and trade - 6,503,238 6,503,238 -
Government agencies 7,013,676 291,706 7,305,382 1,244,483
Other 1,862,130 172,270 2,034,400 -
Internal balances (5,488,933) 5,488,933 - -
Inventory 498,998 1,831,260 2,330,258 -
Prepaid items 72,856 5,545 78,401 54,423
Other assets 47,503 - 47,503 -
Deferred charges - 5,245,123 5,245,123 -
Restricted assets:
Cash and cash equivalents 1,048,370 26,144,753 27,193,123 -
Capital assets not being depreciated 11,042,861 55,476,844 66,519,705 1,469,797
Capital assets net of accumulated depreciation 158,763,401 235,340,010 394,103,411 851,900
Total assets 207,067,977 350,089,684 557,157,661 18,990,544
Liabilities
Accounts payable-trade 2,181,287 2,079,337 4,260,624 601,254
Accrued payroll 933,036 252,933 1,185,969 -
Accrued interest payable 323,083 955,121 1,278,204 -
Payable to government agencies 408,428 82,438 490,866 -
Estimated health claims payable 744,982 - 744,982 -
Other liabilities 4,720,912 2,229,596 6,950,508 -
Unearned revenue 37,025 - 37,025 -
Customer deposits - 2,786,222 2,786,222 -
Long-term liabilities:
Portion due or payable within one year 4,229,972 6,870,669 11,100,641 -
Portion due or payable after one year 41,375,108 127,457,183 168,832,291 -
Totalliabilities 54,953,833 142,713,499 197,667,332 601,254
Net Assets
Invested in capital assets,net of related debt 138,876,124 172,634,321 311,510,445 2,321,697
Restricted for:
Perpetual care 927,469 - 927,469 -
Debt service 853,619 11,734,924 12,588,543 -
Federal grant programs 4,207,741 - 4,207,741 -
Tourism 59,409 - 59,409 -
Unrestricted 7,189,782 23,006,940 30,196,722 16,067,593
Total net assets $152,114,144 $ 207,376,185 $359,490,329 $18,389,290
See accompanying notes to the basic financial statements.
14
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30,2011
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
Administrative services $ 10,881,691 $ 4,499,281 $ 389,435 -
Police 21,822,371 527,007 407,113 -
Fire 13,291,048 11,400 173,337 -
Parks and recreation 5,405,955 513,746 498,762 -
Accounting/finance 2,534,141 65,000 - -
Community development 7,084,165 1,017,718 6,064,061 -
Public works 7,613,089 2,740 1,643,586 -
Health 4,911,165 965,741 1,996,487 -
Traffic and transportation 2,451,154 184,138 - 2,115,245
Multi-Purpose Events Center 4,295,871 1,644,569 - 200,000
Interest and fees on long-term debt 1,765,406 - 2,095,802 -
Total governmental activities 82,056,056 9,431,340 13,268,583 2,315,245
Business-type activities:
Municipal Airport 435,774 681,639 - -
Kickapoo Airport 1,262,976 988,457 - -
Transit 1,847,362 367,374 1,323,581 111,224
Sanitation 8,959,973 11,911,026 - -
Water and sewer 32,969,719 40,679,751 - 81,396
Stormwater drainage 533,715 2,485,346 - -
Waterpark 1,399,255 1,633,155 - -
Total business-type activities 47,408,774 58,746,748 1,323,581 192,620
Total primary government $ 129,464,830 $ 68,178,088 $ 14,592,164 $ 2,507,865
Component units:
Community development $ 10,784,485 $ 106,800 $ 319,650 $ -
General revenues and transfers:
Taxes:
Property tax
Sales tax
Franchise fees
Hotel occupancy tax
Beverage tax
Bingo tax
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets-beginning
Net assets-ending
See accompanying notes to the basic financial statements.
15
EXHIBIT A-2
Net(Expense)Revenue and
Changes in Net Assets
Primary Government
Governmental Business-type Component
Activities Activities Total Units
$ (5,992,975) $ - $ (5,992,975) $ -
(20,888,251) - (20,888,251) -
(13,106,311) - (13,106,311) -
(4,393,447) - (4,393,447) -
(2,469,141) - (2,469,141) -
(2,386) - (2,386) -
(5,966,763) - (5,966,763) -
(1,948,937) - (1,948,937) -
(151,771) - (151,771) -
(2,451,302) - (2,451,302) -
330,396 - 330,396 -
(57,040,888) - (57,040,888) -
- 245,865 245,865 -
- (274,519) (274,519) -
- (45,183) (45,183) -
- 2,951,053 2,951,053 -
- 7,791,428 7,791,428 -
- 1,951,631 1,951,631 -
- 233,900 233,900 -
- 12,854,175 12,854,175 -
(57,040,888) 12,854,175 (44,186,713) -
- - - (10,358,035)
28,556,762 - 28,556,762 357,259
21,082,993 - 21,082,993 7,027,664
5,593,781 - 5,593,781 -
1,572,105 - 1,572,105 -
248,350 - 248,350 -
70,747 - 70,747 -
49,239 50,858 100,097 23,373
- (41,792) (41,792) 29,880
1,754,171 (1,754,171) - -
58,928,148 (1,745,105) 57,183,043 7,438,176
1,887,260 11,109,070 12,996,330 (2,919,859)
150,226,884 196,267,115 346,493,999 21,309,149
$ 152,114,144 $ 207,376,185 $ 359,490,329 $ 18,389,290
EXHIBIT A-3
CITY OF WICHITA FALLS, TEXAS
BALANCE SHEET-GOVERNMENTAL FUNDS
SEPTEMBER 30, 2011
Total
Nonmajor Governmental
General Governmental Funds
Assets
Cash and cash equivalents $ 15,913,998 $ 13,009,548 $ 28,923,546
Receivables(net):
Taxes and assessments 919,344 247,118 1,166,462
Other City funds 2,991,941 - 2,991,941
Government agencies 3,541,334 3,472,342 7,013,676
Other 1,726,174 122,749 1,848,923
Inventory 421,908 65,881 487,789
Prepaid items 56,709 15,495 72,204
Other assets - 47,503 47,503
Total assets $ 25,571,408 $ 16,980,636 $ 42,552,044
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 1,660,455 $ 432,216 $ 2,092,671
Accrued payroll 860,922 69,817 930,739
Payable to other City funds - 2,874,218 2,874,218
Payable to government agencies 325,256 83,172 408,428
Other liabilities 3,559,016 661,896 4,220,912
Deferred revenue 1,523,732 112,738 1,636,470
Claims and judgments payable 582,027 - 582,027
Total liabilities 8,511,408 4,234,057 12,745,465
Fund balances:
Nonspendable:
Inventory and prepaid items 478,617 81,376 559,993
Restricted for:
Perpetual care - 927,469 927,469
Debt service - 778,117 778,117
Capital projects - 4,954,637 4,954,637
Federal and state grant programs - 4,207,741 4,207,741
Tourism - 59,409 59,409
Committed for:
Golf course - 29,288 29,288
Multi-Purpose Events Center - 390,721 390,721
Local projects - 1,342,239 1,342,239
Assigned for:
Subsequent year's expenditures 579,022 - 579,022
Unassigned 16,002,361 (24,418) 15,977,943
Total fund balances 17,060,000 12,746,579 29,806,579
Total liabilities and fund balances $ 25,571,408 $ 16,980,636 $ 42,552,044
See accompanying notes to the basic financial statements.
16
EXHIBIT A-4
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2011
Total fund balances-governmental funds(Exhibit A-3) $ 29,806,579
Amounts reported for governmental activities in the Statement of Net Assets(Exhibit A-1)
are different because:
Capital assets used in governmental activities are not financial resources and therefore not
reported in the funds. Capital assets at year-end consist of:
Gross capital assets $283,472,071
Related accumulated depreciation 113,670,559 169,801,512
Property taxes receivable and municipal court fines are not available to pay for current
period expenditures and therefore are deferred in the funds. 1,599,445
Long-term liabilities are not due and payable in the current period and therefore
not reported as liabilities in the funds. Long-term liabilities at year-end consist of:
General obligation bonds payable 38,554,161
Accrued vacation and sick leave 6,885,288
Claims and judgments payable 81,872
Accrued interest 323,083 (45,844,404)
Internal service funds are used by management to charge the costs of duplicating services,
information technology and health insurance claims to the individual funds. The assets and
liabilities of these internal service funds are included with the governmental activities. 2,433,500
Internal service funds are used by management to charge the costs of central garage
services to the individual funds. The assets and liabilities of this fund are included with the
business-type activities. This amount represents the governmental activity portion
of the central garage activity. (5,682,488)
Total net assets-governmental activities(Exhibit A-1) $ 152,114,144
See accompanying notes to the basic financial statements.
17
EXHIBIT A-5
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES-GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2011
Total
Nonmajor Governmental
General Governmental Funds
Revenues
Taxes $ 54,513,746 $ 2,608,260 $ 57,122,006
Charges for services 3,096,663 789,497 3,886,160
Licenses and permits 2,064,972 - 2,064,972
Fines and forfeitures 2,023,343 185,683 2,209,026
Intergovernmental revenue 18,480 11,023,199 11,041,679
Contributions 134,695 4,407,454 4,542,149
Miscellaneous revenue 1,039,839 2,176,895 3,216,734
Total revenues 62,891,738 21,190,988 84,082,726
Expenditures
Administrative services 8,819,407 1,416,313 10,235,720
Police 19,886,599 348,413 20,235,012
Fire 12,704,565 193,245 12,897,810
Parks and recreation 4,636,653 329,407 4,966,060
Accounting/finance 2,367,814 - 2,367,814
Community development 1,696,745 5,428,106 7,124,851
Public works 5,049,855 120,769 5,170,624
Health 2,545,984 2,250,950 4,796,934
Traffic and transportation 2,027,827 205,484 2,233,311
Multi-Purpose Events Center - 3,436,052 3,436,052
Capital outlay 3,355,209 4,245,282 7,600,491
Debt service-principal - 2,115,000 2,115,000
Debt service-interest and paying agent fees - 1,934,935 1,934,935
Total expenditures 63,090,658 22,023,956 85,114,614
Excess of revenues over(under)expenditures (198,920) (832,968) (1,031,888)
Other Financing Sources(Uses)
Transfers in 2,845,702 3,393,781 6,239,483
Transfers out (1,273,630) (5,131,959) (6,405,589)
Total other financing sources(uses) 1,572,072 (1,738,178) (166,106)
Net change in fund balance 1,373,152 (2,571,146) (1,197,994)
Fund balances-beginning 15,686,848 15,317,725 31,004,573
Fund balances-ending $ 17,060,000 $ 12,746,579 $ 29,806,579
See accompanying notes to the basic financial statements.
18
EXHIBIT A-6
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Net change in fund balances-total governmental funds(Exhibit A-5) $ (1,197,994)
Amounts reported for govemmental activities in the Statement of Activities(Exhibit A-2)
are different because:
Capital outlays are reported in governmental funds as expenditures. However,in the Statement
of Activities,the cost of those assets are allocated over their estimated useful lives as
depreciation expense.The net difference between the two is as follows:
Capital outlay during the year $ 7,739,401
Depreciation expense for the year 5,342,689 2,396,712
Proceeds from the sale of capital assets are recorded as revenues when received in the
governmental funds. In the Statement of Activities,the difference between the proceeds
and the book value of the capital asset is reported as a gain(loss)from sale. (247,390)
Because property tax receivables and municipal court receivables will not be collected for
several months after the City's fiscal year ends,they are not considered'available'revenues and
are deferred in the governmental funds. Deferred revenues increased by this amount this year. 31,852
Repayment of long-term debt principal is an expenditure in the governmental funds,but the
repayment reduces long-term liabilities in the Statement of Net Assets. Bond principal
payments in 2010-11 were: 2,154,526
Included in long-term debt are obligations for accrued vacation and sick leave,and claims
and judgments payable. The changes in these obligations are not included in the
governmental fund financial statements,but are included in the government-wide
financial statements.The changes in these long-term obligations were:
Accrued vacation and sick leave (67,331)
Claims and judgments payable 22,652 (44,679)
Interest on long-term debt in the Statement of Activities differs from the amount reported
in the governmental funds because interest is recognized as an expenditure in the funds
when it is due,and thus requires the use of current financial resources. In the Statement
of Activities,however,interest expense is recognized as the interest accrues, regardless
of when it is due.The decrease in accrued interest is as follows:
Accrued interest at September 30,2010 453,086
Accrued interest at September 30,2011 323,083 130,003
Internal service funds are used by management to charge the costs of duplicating services,
information technology and health insurance claims to the individual funds.The net
revenues of these internal service funds are included with the governmental activities. (170,400)
Internal service funds are used by management to charge the costs of central garage
services to the individual funds.The net revenue of this fund is included with the
business-type activities. This amount represents the governmental activity portion
of the central garage activity. (1,165,370)
Change in net assets of governmental activities(Exhibit A-2) $ 1,887,260
See accompanying notes to the basic financial statements.
19
EXHIBIT A-7
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30,2011
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Assets
Current assets:
Cash and cash equivalents $ 5,720,261 $ 2,420,247 $ 4,703,248 $ 12,843,756 $ 2,863,353
Restricted cash and cash equivalents 25,876,136 - 268,617 26,144,753 1,048,370
Receivables(net):
Customer and trade 5,031,033 1,200,123 272,082 6,503,238 -
Government agencies 51,419 - 240,287 291,706 -
Other 66,153 - 78,815 144,968 40,509
Inventory 1,016,929 - 52,667 1,069,596 772,873
Prepaid items 111 - 5,434 5,545 652
Total current assets 37,762,042 3,620,370 5,621,150 47,003,562 4,725,757
Long-term assets:
Deferred charges 5,245,123 - - 5,245,123 -
Capital assets,net of accumulated
depreciation 228,800,742 6,866,055 35,597,859 271,264,656 19,556,948
Total long-term assets 234,045,865 6,866,055 35,597,859 276,509,779 19,556,948
Total assets 271,807,907 10,486,425 41,219,009 323,513,341 24,282,705
See accompanying notes to the basic financial statements.
20
EXHIBIT A-7
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30,2011
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Liabilities
Current liabilities:
Accounts payable-trade 1,572,586 25,089 302,415 1,900,090 267,863
Accrued payroll 136,963 50,709 32,092 219,764 35,466
Accrued vacation and sick leave 322,734 116,685 35,666 475,085 83,759
Payable to other City funds - - 71,314 71',314 46,409
Payable to government agencies - 63,915 18,523 82,438 -
Estimated health claims payable - - - - 744,982
Other liabilities 2,129,819 19,195 74,879 2,223,893 5,703
Payable to U.S.Government-current maturity 33,201 - - 33,201 -
Capital leases-current maturities - - - - 183,156
Revenue bonds-current maturities 6,154,312 - - 6,154,312 -
Accrued interest-revenue bonds 955,121 - - 955,121 -
Total current liabilities 11,304,736 275,593 534,889 12,115,218 1,367,338
Long-term liabilities:
Payable to U.S.Government 543,878 - - 543,878 -
Capital leases, less current maturities - - - - 188,540
Revenue bonds,less current maturities 123,093,222 - - 123,093,222 -
Estimated liability for landfill closure and
post-closure care costs - 3,574,431 - 3,574,431 -
Customer deposits 2,786,222 - - 2,786,222 -
Total long-term liabilities 126,423,322 3,574,431 - 129,997,753 188,540
Total liabilities 137,728,058 3,850,024 534,889 142,112,971 1,555,878
Net Assets
Invested in capital assets,net of
related debt 110,989,905 6,866,055 35,597,859 153,453,819 19,185,252
Restricted for debt service 12,942,163 - - 12,942,163 -
Unrestricted 10,147,781 (229,654) 5,086,261 15,004,388 3,541,575
Total net assets $134,079,849 $ 6,636,401 $40,684,120 181,400,370 $22,726,827
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 25,975,815
Net assets of business type activities $207,376,185
See accompanying notes to the basic financial statements.
21
EXHIBIT A-8
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Operating revenues:
Charges for services $ 40,511,322 $11,867,098 $ 4,059,821 $56,438,241 $ 9,126,752
Rents,concessions and other 168,429 43,928 2,096,150 2,308,507 521,792
Contributions - - - - 9,676,625
Total operating revenues 40,679,751 11,911,026 6,155,971 58,746,748 19,325,169
Operating expenses:
Personnel services 8,194,785 3,294,832 1,768,965 13,258,582 1,966,774
Supplies and materials 2,676,228 248,274 1,218,262 4,142,764 3,916,078
Maintenance and repairs 1,578,412 397,263 324,758 2,300,433 1,650,046
Utilities and other services 5,910,650 3,574,135 1,025,791 10,510,576 160,664
Insurance and contract support 2,414,736 74,740 70,075 2,559,551 9,573,970
Other expenses 1,647,714 505,680 228,676 2,382,070 1,168,935
Depreciation and amortization 5,508,066 173,898 859,263 6,541,227 3,982,592
Total operating expenses 27,930,591 8,268,822 5,495,790 41,695,203 22,419,059
Operating income(loss) 12,749,160 3,642,204 660,181 17,051,545 (3,093,890)
Nonoperating revenues(expenses):
Interest income 43,126 2,509 5,223 50,858 -
Gain/(loss)on sale/abandonment of capital assets (33,869) (475) (112,594) (146,938) 68,871
Interest expense and paying agent fees (5,789,281) - - (5,789,281) (50,174)
Intergovernmental operating grants - - 1,323,581 1,323,581 -
Total nonoperating revenues(expenses) (5,780,024) 2,034 1,216,210 (4,561,780) 18,697
Income(loss)before contributions and transfers 6,969,136 3,644,238 1,876,391 12,489,765 (3,075,193)
Capital contributions 81,396 - 111,224 192,620 -
Transfers in 1,183,948 2,589,265 3,773,213 1,729,014
Transfers out (1,347,214) (2,900,587) (776,319) (5,024,120) (312,000)
Change in net assets 6,887,266 743,651 3,800,561 11,431,478 (1,658,179)
Net assets-beginning 127,192,583 5,892,750 36,883,559 24,385,006
Net assets-ending $134,079,849 $ 6,636,401 $40,684,120 $ 22,726,827
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds (322,408)
Change in net assets of business type activities $ 11,109,070
See accompanying notes to the basic financial statements.
22
EXHIBIT A-9
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2011
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Cash flows from operating activities:
Received from customers and users $ 39,765,618 $ 11,964,829 $ 5,989,789 $ 57,720,236 $ 19,362,723
Payments to suppliers (16,650,579) (5,784,398) (3,187,902) (25,622,879) (16,809,398)
Payments to employees (6,167,303) (2,456,703) (1,422,444) (10,046,450) (1,501,397)
Net cash provided by operating activities 16,947,736 3,723,728 1,379,443 22,050,907 1,051,928
Cash flows from noncapital financing activities:
Intergovernmental operating grants - - 1,399,999 1,399,999 -
Interfund loans received(repaid) - (192,864) (192,864) 46,409
Transfers in from other funds 1,183,948 2,589,265 3,773,213 1,729,014
Transfers out to other funds (1,347,214) (2,900,587) (776,319) (5,024,120) (312,000)
Net cash provided(used)by noncapital financing activities (163,266) (2,900,587) 3,020,081 (43,772) 1,463,423
Cash flows from capital and related financing activities:
Capital contributions 111,224 111,224 -
Acquisition and construction of capital assets (20,321,026) (653,202) (3,608,706) (24,582,934) (2,496,351)
Proceeds from sale of capital assets 291 291 137,546
Principal paid on long-term debt (5,647,155) (5,647,155) (177,925)
Interest and fees paid on long-term debt (5,899,598) (5,899,598) (50,174)
Net cash used for capital and related
financing activities (31,867,488) (653,202) (3,497,482) (36,018,172) (2,586,904)
Cash flows from investing activities:
Interest on investments 43,126 2,509 5,223 50,858
Net cash provided by investing activities 43,126 2,509 5,223 50,858
Net Increase(Decrease)in Cash and Cash Equivalents (15,039,892) 172,448 907,265 (13,960,179) (71,553)
Cash and Cash Equivalents-Beginning 46,636,289 2,247,799 4,064,600 52,948,688 3,983,276
Cash and Cash Equivalents-Ending $ 31,596,397 $ 2,420,247 $ 4,971,865 $ 38,988,509 $ 3,911,723
Reconciliation of cash and cash equivalents on the balance
sheet to the statement of cash flows:
Cash and cash equivalents $ 5,720,261 $ 2,420,247 $ 4,703,248 $ 12,843,756 $ 2,863,353
Restricted assets-cash and cash equivalents 25,876,136 - 268,617 26,144,753 1,048,370
Total cash and cash equivalents at end of year $ 31,596,397 $ 2,420,247 $ 4,971,865 $ 38,988,509 $ 3,911,723
See accompanying notes to the basic financial statements.
23
EXHIBIT A-9
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2011
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Reconciliation of Operating Income(Loss)to Net Cash
Provided by Operating Activities:
Operating income(loss) $ 12,749,160 $ .3,642,204 $ 660,181 $ 17,051,545 $ (3,093,890)
Adjustments to reconcile operating income(loss)
to net cash provided by operating activities:
Depreciation and amortization 5,508,066 173,898 859,263 6,541,227 3,982,592
Customer deposits received 68,840 - - 68,840 -
(Increase)decrease in current assets:
Receivables:
Customer and trade (968,755) 53,803 (137,200) (1,052,152) -
Other (14,218) - (28,982) (43,200) 36,617
Inventory (33,572) - (17,522) (51,094) (51,859)
Prepaid items 1,897 175 958 3,030 4,696
Increase(decrease)in current liabilities:
Accounts payable-trade (155,652) (171,367) 40,756 (286,263) 2,537
Accrued payroll (229,873) (100,372) (36,684) (366,929) (62,627)
Accrued vacation and sick leave 14,533 (65) 4,392 18,860 8,740
Payable to other City funds (50,455) - - (50,455) -
Estimated health claims payable - - 224,185
Payable to government agencies - 45 1,956 2,001 -
Other liabilities 57,765 (16,324) 32,325 73,766 937
Estimated liability for landfill closure - 141.,731 - 141,731 -
Total adjustments 4,198,576 81,524 719,262 4,999,362 4,145,818
Net cash provided by
operating activities $ 16,947,736 $ 3,723,728 $ 1,379,443 $ 22,050,907 $ 1,051,928
Noncash capital and financing activities:
Capital assets received from developers $ 81,396 $ - $ - $ 81,396 $ -
See accompanying notes to the basic financial statements.
24
EXHIBIT A-10
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
SEPTEMBER 30, 2011
Agency
Fund
Assets
Cash and cash equivalents $ 126,830
Liabilities
Other liabilities $ 126,830
See accompanying notes to the basic financial statements.
25
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the City of Wichita Falls, Texas (City) conform to
accounting principles generally accepted in the United States of America (GAAP) applicable to
state and local governments. GAAP for local governments includes those principles prescribed by
the Governmental Accounting Standards Board (GASB), which includes all statements and
interpretations of the National Council on Governmental Accounting (NCGA) unless modified by
the GASB, and those principles prescribed by the American Institute of Certified Public
Accountants in the publication entitled Audits of State and Local Governmental Units. The
following is a summary of the more significant policies and practices used by the City.
A. Reporting Entity
The City is a municipal corporation governed by an elected Mayor and six-member City Council.
As required by Governmental Accounting Standards Board (GASB) Statement No. 39, these
financial statements present the City and its component units, entities for which the City is
considered to be financially accountable. Blended component units, although legally separate
entities, are in substance, part of the City's operations and data from these units are combined with
data presented by the City. A discretely presented component unit, on the other hand, is reported
in a separate column in the basic financial statements to emphasize it is legally separate from the
City. Each blended and discretely presented component unit has a September 30th year end.
Blended Component Unit
Employee Benefit Trust Fund. On October 1, 1983, an "Agreement and Declaration of Trust"
was made and entered into between the City and the Employee Benefit Trust Committee,
acting as Trustee to administer the Employee Benefit Trust (Trust). The Trust Committee
consists of four Trustees selected by the City, who may, but need not be, beneficiaries of the
health and welfare program funded by the Trust, and/or officers or employees of the City. The
purpose of the Trust is to provide health and welfare benefits, which may include life,
accidental death and dismemberment, disability, medical and dental insurance, and any other
benefits as determined by the Trustee Committee. The Trust is funded through contributions
by the City and employees who choose to participate. It may be terminated in writing, at any
time, by either party. The Employee Benefit Trust Fund is presented in the accompanying
financial statements as an internal service fund.
Discretely Presented Component Units
The Wichita Falls Economic Development Corporation. The Wichita Falls Economic
Development Corporation is a non-profit corporation formed in May 1997 for the purpose of
increasing employment opportunities, primarily through assisting qualifying enterprises with
funds provided by a portion of the local sales tax. Assistance may be in the form of incentive
grants, loans or leases which call for discounted rates or rebates for job development. The
Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A.
Since the City Council appoints its Board of Directors, approves its budgets, and exercises final
authority over its operations, the Wichita Falls Economic Development Corporation is
considered to be part of the City's reporting entity and presented in the accompanying basic
financial statements as a discretely presented component unit. The Wichita Falls Economic
Development Corporation utilizes full accrual accounting.
26
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
The Wichita Falls 4B Sales Tax Corporation. The Wichita Falls 4B Sales Tax Corporation is a
non-profit corporation formed in May 1997 for the purpose of increasing employment
opportunities and for public improvement projects such as parks, auditoriums, learning centers,
open space improvements, athletic and exhibition facilities, and the related maintenance and
operating costs of such projects. The Corporation operates under the authority of Vernon's
Civil Statutes, Article 5190.6, Section 4B. Since the City Council appoints its Board of
Directors, approves its budgets, and exercises final authority over its operations, the Wichita
Falls 4B Sales Tax Corporation is considered to be part of the City's reporting entity and
presented in the accompanying basic financial statements as a discretely presented
component unit. The Wichita Falls 4B Sales Tax Corporation utilizes full accrual accounting.
Wichita Falls Reinvestment Zone #2. On August 16, 2005, the City of Wichita Falls, Texas,
with the advice and consent of the Wichita Falls Independent School District and Wichita
County, approved the creation of the Wichita Falls Reinvestment Zone#2 (Zone). This Zone is
permitted by Article 1066e of the State of Texas Tax Increment Financing Act passed in 1981.
The area of the Zone is approximately 236 acres and includes the Lawrence Road area of the
City. The purpose of the Zone is to capture increments of growth in real property values in the
Zone from base values established on January 1, 2004, and use the ad valorem taxes derived
from these increments to contribute to the zoned area. Tax funds derived from the increment
can only be spent for public improvements in the Zone or for the payment of debt service on
bonds issued to provide funds for public improvements. The Zone terminates on December 31,
2025, or when all debt has been paid if later. After all costs have been paid at the end of the
tax increment financing period, any money remaining is to be remitted to the taxing entities.
Since the City Council appoints a majority of its Board, approves its budget, and exercises final
authority over its operations, the Wichita Falls Reinvestment Zone #2 is considered to be part
of the City's reporting entity and presented in the accompanying basic financial statements as a
discretely presented component unit. The Zone utilizes full accrual accounting.
Wichita Falls Reinvestment Zone#3. On September 1, 2009, the City of Wichita Falls, Texas,
with the advice and consent of the Wichita Falls Independent School District and Wichita
County, approved the creation of the Wichita Falls Reinvestment Zone#3 (Zone). This Zone is
permitted by Article 1066e of the State of Texas Tax Increment Financing Act passed in 1981.
The area of the Zone is approximately 630 acres and includes a significant portion of the
Eastside Neighborhood. The purpose of the Zone is to capture increments of growth in real
property values in the Zone from base values established on January 1, 2009, and use the ad
valorem taxes derived from these increments to contribute to the zoned area. Tax funds
derived from the increment can only be spent for public improvements in the Zone or for the
payment of debt service on bonds issued to provide funds for public improvements. The Zone
terminates on December 31, 2029. After all costs have been paid at the end of the tax
increment financing period, any money remaining is to be remitted to the taxing entities. Since
the City Council appoints a majority of its Board, approves its budget, and exercises final
authority over its operations, the Wichita Falls Reinvestment Zone #3 is considered to be part
of the City's reporting entity and presented in the accompanying basic financial statements as a
discretely presented component unit. The Zone utilizes full accrual accounting.
27
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.)
No separate audited financial statements are available for the City's blended and discretely
presented component units. Complete financial statements for the individual component units
may be obtained from the City's Assistant City Manager/CFO at 1300 7th Street, Wichita Falls,
Texas.
Excluded From the Reporting Entity
Wichita Falls Firemen's Relief and Retirement Fund. The Wichita Falls Firemen's Relief and
Retirement Fund was established and is controlled through various State of Texas legislative
enactments. This Fund is administered locally by a seven-member board, independent of the
City Council. City management and the City Council do not influence or control the
administrative and financial affairs of the Fund, and the assets of the Fund are not the
property of the City. The seven-member Board of Trustees, composed of the Mayor, the
Senior Accountant from the City's Finance Department, three firefighters elected by a majority
vote of the firefighters and two citizens, who are not employees or officers of the City and are
chosen by the unanimous vote of the first five Trustees, are subject to the administrative
supervision of and report to the State Firemen's Pension Bo
ard.oard. The activities
p p t es of the
Firemen's Relief and Retirement Fund, in the City's judgment, are not a part of the City and
thus are excluded from the accompanying financial statements.
B. Basis of Presentation
Government-wide financial statements
The basic financial statements include both government-wide (based on the City as a whole) and
fund financial statements. The government-wide financial statements (i.e., the statement of net
assets and the statement of activities) report information on all non-fiduciary activities of the
primary government and its component units. For the most part, the effect of interfund activity has
been removed from these statements. However, interfund services provided and used are not
eliminated in the process of consolidation. Governmental activities which normally are PP
Psupported
by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for support.
The government-wide statement of activities demonstrates the degree to which the direct expenses
of a functional category (police, public works, etc.) or segment are offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific function or segment. Program
revenues include 1) charges to customers or applicants who purchase, use or directly benefit from
goods, services or privileges provided by a given function or segment, 2) grants and contributions
that are restricted to meeting operational requirements of a particular function or segment, and
3) grants and contributions that are restricted to meeting the capital requirements of a particular
function or segment. Taxes and other items not included among program revenues are reported
instead as general revenues.
28
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.)
Fund financial statements
Separate fund-based financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major enterprise funds are reported as
separate columns in the fund financial statements. GASB Statement No. 34 sets forth minimum
criteria (percentage of assets, liabilities, revenues or expenditures/expenses of either fund category
for governmental and enterprise) for the determination of major funds. The major governmental
fund is the General Fund. The major enterprise funds are the Water and Sewer Fund and the
Sanitation Fund. Non-major funds are combined in a column in the fund financial statements.
Non-major funds are detailed in the combining section of the statements.
Internal service funds, which traditionally provide services primarily to other funds of the
government, are presented in the summary form as part of the proprietary fund financial
statements. Because the principal users of internal services are the City's governmental and
business-type activities, financial statements of internal service funds are allocated (based on the
percentage of goods or services provided) between the governmental and business-type activities
when presented at the government-wide level.
The government-wide focus is more on the sustainability of the City as an entity and the change in
aggregate financial position resulting from the activities of the fiscal period. The focus of the fund
financial statements is on the major individual funds of the governmental and business-type
categories. Each presentation provides valuable information that can be analyzed and compared
to enhance the usefulness of the information.
C. Measurement focus, basis of accounting and financial statement presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary funds. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year in which they
are levied. Grants and similar items are recognized as soon as all eligibility requirements imposed
by the provider have been met.
Government fund-level financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as
well as expenditures related to compensated absences and claims and judgments, are recorded
only when payment is due.
Property tax, franchise fees, and sales tax associated with the current fiscal period are all
susceptible to accrual and have been recognized as revenues of the current fiscal period. All of the
revenue items are considered to be measurable and available only when cash is received.
29
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.)
The City reports the following major governmental fund:
The General Fund is the City's primary operating fund. All general tax revenues and other
receipts that are not allocated by law or contractual agreement to some other fund are
accounted for in this fund. From the fund are paid general operating costs, fixed charges, and
capital improvement costs that are not paid through other funds.
Other governmental funds are a summarization of all the non-major governmental funds.
The City reports the following major proprietary funds:
The Water and Sewer Fund accounts for water and sewer utility services to residents of the
City. Activities necessary to provide such services are accounted for in the fund, including, but
not limited to, administration, operations, maintenance, finance and related debt service.
The Sanitation Fund accounts for refuse collection services to the residents of the City as well
as the operations of the City's landfill. Activities necessary to provide such services are
accounted for in the fund, including, but not limited to, administration, operations and
maintenance.
Other enterprise funds are a summarization of all of the non-major proprietary funds.
The City additionally reports the following fund types:
Internal service funds are used to account for the financing of materials and services provided
by one department of the City to other departments of the City on a cost-reimbursement basis.
The City uses internal service funds to report the activities of fleet maintenance, duplicating
services, and employee health and life insurance.
An agency fund is used to account for any unclaimed vendor or payroll checks that will be
escheated to the State if they remain unclaimed. These funds are held on a purely custodial
basis.
GASB Statement No. 34 eliminates the presentation of account groups but provides for these
records to be maintained and incorporates the information into the Governmental Activities column
in the government-wide Statement of Net Assets.
Private-sector standards of accounting and financial reporting (as issued by the Financial
Accounting Standards Board) issued prior to December 1, 1989, generally are followed in both the
government-wide and proprietary fund financial statements to the extent that those standards do
not conflict with or contradict guidance of the Governmental Accounting Standards Board.
Governments also have the option of following subsequent private-sector guidance for their
business-type activities and enterprise funds, subject to this same limitation. The City has elected
not to follow subsequent private-sector guidance.
30
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONTD.)
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.)
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expense generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The principal
operating revenues of the City's water and sewer, sanitation, transit, and airport funds are charges
to customers for services. Operating expenses for the enterprise funds and internal service funds
include the cost of sales and services, administrative expenses and depreciation on capital assets.
All revenues not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy
to use restricted resources first, then unrestricted resources as they are needed.
Capital improvement assessments are recorded as revenues in the fiscal period when the
assessment becomes both measurable and available to finance expenditures of the fiscal period.
Assessment revenues are considered measurable and available when collected by the City and
recognized as revenue at that time. Payments for capital improvement assessments received in
advance of the levy are reflected as deferred revenue.
D. Nonexchange Transactions
In a nonexchange transaction, a government gives (or receives) value without directly receiving (or
giving) equal value in return. The statement defines when the City should recognize revenue or
expense for nonexchange transactions involving financial or capital resources and how to account
for timing and purpose restrictions. The timing of recognition depends on whether a nonexchange
transaction is (a) a derived tax revenue (b) an imposed nonexchange revenue transaction or (c) a
government-mandated or voluntary nonexchange transaction. Under this standard, revenue
transactions with purpose restrictions are recorded as restricted resources until the purpose
restrictions are met.
Nonexchange transactions include the following classifications:
• Derived tax revenues result from assessments imposed by government on exchange
transactions.
• Imposed nonexchange revenues result from assessments by governments on
nongovernmental entities, other than assessments on exchange transactions.
• Government-mandated nonexchange transactions occur when a government at one level
provides resources to a government at another level and require that government to use
them for a specific purpose or purposes established in the provider's enabling legislation.
• Voluntary nonexchange transactions result from legislative or contractual agreements, other
than exchanges, entered into willingly by two or more parties. Examples of the City's
voluntary nonexchange transactions include capital grants, state shared revenue and private
donations.
31
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONTD.)
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.)
Providers of government-mandated nonexchange transactions and voluntary nonexchange
transactions should recognize liabilities and expenses/expenditures and recipients should
recognize receivables (or decrease in liabilities) and revenue when all applicable eligibility
requirements, including i q g time requirements are met.
All nonexchange transactions occurring in governmental fund types are also subject to the modified
accrual revenue recognition criteria. Accordingly, assets and revenue should not be recognized
unless measurable and available.
E. Assets, liabilities and net assets or equity
1. Cash, cash equivalents and investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits
and short-term investments with original maturities of three months or less from the date of
acquisition.
Investments are carried at fair value. Fair value is determined as the price at which two
willing parties would complete an exchange. Interest earned on investments is recorded in
the funds in which the investments are recorded.
2. Inventory and Prepaid Items
Inventories of the general and proprietary funds consist of supplies and various materials
used for the maintenance of fixed assets. The consumption method is used to account for
these inventories. Under this method, inventory acquisitions are recorded in inventory
accounts initially and charged as expenditures when used. Inventories are stated at
average cost.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government-wide and fund financial statements.
3. Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g.
roads, bridges, sidewalks and similar items), are reported in the applicable governmental
or business-like activities columns in the government-wide financial statements. The City
defines capital assets as assets with an initial, individual cost of more than $1,000 and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded
at estimated fair market value at the time received.
Capital assets are depreciated using the straight line method over the following useful
lives:
32
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONTD.)
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.)
Assets Years
Buildings, systems and improvement 20-59 years
Infrastructure 8-100 years
Machinery, vehicles and other equipment 3-25 years
Furniture and equipment 3- 10 years
For business-like activities' capital assets, interest is capitalized on construction costs
incurred during the year at an average interest rate on borrowed funds (revenue bonds) in
accordance with generally accepted accounting principles.
For the fiscal year ended September 30, 2011, the City's business-like activities incurred a
total of $5,789,281 of interest costs. All of this amount was charged to expense as there
was no capitalized interest in the current year.
Contributions of funds from federal, state, or local grants restricted for the purpose of
purchasing plant and equipment are recorded as revenue when received. The cost of
water and sewer lines installed by developers is valued by the contractor and recorded as
nonoperating revenue in the Water and Sewer Fund.
4. Long-Term Obligations
Long-term debt and other obligations for general government purposes are recorded in the
government-wide statement of net assets. Long-term debt and other obligations financed by
proprietary funds are reported as liabilities in the appropriate funds.
For the government-wide financial statements and proprietary fund types, bond premiums
and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the straight-line method in the government-wide financial statements. Bonds
payable are reported net of the applicable bond premium or discount. Issuance costs are
reported as deferred bond issue costs and amortized over the term of the related debt. In
addition, gains or losses on proprietary fund bond refunding are amortized over the term of
the lesser of the new bonds or the refunded bonds' life using the effective interest method. In
the governmental fund financials, bond proceeds are reported as another financing source.
Bond premiums and discounts in governmental funds are also recognized currently as other
financing sources or uses. Issuance costs, even if withheld from the actual net proceeds
received, are reported as debt service expenditures.
5. Fund Balances—Governmental Funds
Fund balances of the governmental funds are classified as follows:
Nonspendable Fund Balance—represents amounts that cannot be spent because they are
either not in spendable form (such as inventory or prepaid insurance) or legally required to
remain intact(such as notes receivable or principal of a permanent fund).
Restricted Fund Balance — represents amounts that are constrained by external parties,
constitutional provisions or enabling legislation.
33
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.)
Committed Fund Balance — represents amounts that can only be used for a specific
purpose because of a formal action by the City Council. Committed amounts cannot be
used for any other purpose unless the governing board removes those constraints by
taking the same type of formal action. Committed fund balance amounts may be used for
other purposes with appropriate due process by the governing board. Commitments are
typically done through adoption and amendment of the budget. Committed fund balance
amounts differ from restricted balances in that the constraints on their use do not come
from outside parties, constitutional provisions, or enabling legislation.
Assigned Fund Balance — represents amounts which the City intends to use for a specific
purpose, but that do not meet the criteria to be classified as restricted or committed. Intent
may be stipulated by the governing board or by an official or body to which the governing
board delegates the authority. Specific amounts that are not restricted or committed in a
special revenue, capital projects, debt service or permanent fund are assigned for
purposes in accordance with the nature of their fund type or the fund's primary purpose.
Assignments within the General Fund convey that the intended use of those amounts is for
a specific purpose that is narrower than the general purposes of the City itself.
Unassigned Fund Balance— represents amounts which are unconstrained in that they may
be spent for any purpose. Only the General Fund reports a positive unassigned fund
balance. Other governmental funds might report a negative balance in this classification
because of overspending for specific purposes for which amounts had been restricted,
committed or assigned.
When an expenditure is incurred for a purpose for which both restricted and unrestricted
fund balance is available, the City considers restricted funds to have been spent first.
When an expenditure is incurred for which committed, assigned, or unassigned fund
balances are available, the City considers amounts to have been spent first out of
committed funds, then assigned funds, and finally unassigned funds.
6. Federal and State Grants
Grants and shared revenues are generally accounted for within the appropriate fund of the
City to be financed by such grants or shared revenues. Federal grants include Community
Development Block Grant, Section 8 Housing Assistance, Home Investment Partnership
Agreement Program, and numerous health-related grants.
Each Federal grant is accounted for in a separate special revenue fund. State grant
revenues received for purposes normally financed through the general government are
accounted for within the General Fund.
34
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.)
7. Transactions Between Funds
Outstanding balances between funds are reported as "due to/from other City funds." Any
residual balances between governmental activities and business-type activities are reported
in the government-wide statements as "internal balances." Nonrecurring or non-routine
transfers of equity between funds are accounted for as transfers.
8. Vacation and Sick Leave
All full-time employees accumulate vacation benefits based on length of service up to 15
days per year. The maximum allowable accumulation is 30 days. Upon leaving the
employment of the City, employees will be paid for unused vacation days which they have
accrued.
Sick leave is earned at the rate of 4.62 hours per pay period up to a maximum of ninety
days. Additionally, police officers and firefighters may accumulate an unlimited number of
sick leave days while employed with the City. Upon termination, police officers and
firefighters are compensated for up to 720 hours and 1,080 hours, respectively.
9. Risk Management
The government is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters for which the
government carries commercial insurance. For insured programs, there have been no
significant reductions in insurance coverage. Settlement amounts have not exceeded
insurance coverage for the current year or the three prior years.
The City maintains a group health insurance plan for employees and dependents which is
partially self-insured by the City. A group life insurance plan is maintained through an
insurance company. Contributions to the plans are provided for by both the City and
participating employees. These contributions are recognized as revenues in the internal
service fund used to account for these plans. The contributions made by the City are
recorded as expenditures or expenses of the various funds as appropriate.
Liabilities are reported when it is probable that a loss has occurred and the amount of the
loss can be reasonably estimated. An excess coverage insurance policy covers individual
claims in excess of $500,000. Liabilities include an amount for claims that have been
incurred but not reported. Claim liabilities are calculated considering the effects of inflation,
recent claim settlement trends including frequency and amount of pay-outs and other
economic and social factors.
35
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.)
The City is also self-insured up to $250,000 for workers' compensation claims. Such
claims are processed by a third party administrator. The City's estimated liability for
workers' compensation claims payable at September 30, 2011 is based on management's
estimate of probable losses in the amount of$163,899. The payment dates of such claims
cannot be precisely determined, but are expected to be paid on a periodic basis over the
next few years. Accordingly, the long-term liability has been recorded in the government-
wide financial statements. $82,027 is believed by City management to be currently payable
from available resources and is recorded in the General Fund.
The following represents changes in the amount of claims liabilities for the City from
October 1, 2009 to September 30, 2011:
Health Workers'
Care Compensation
Liability balance, October 1, 2009 $ 426,734 $ 200,763
Incurred claims/adjustments 7,776,535 615,475
Claim payments ( 7,682,472) ( 613,654)
Liability balance, September 30, 2010 520,797 202,584
Incurred claims/adjustments 8,942,608 461,856
Claim payments ( 8,718,423) ( 500,541)
Liability balance, September 30, 2011 $ 744,982 $ 163,899
Note 2 - COMPLIANCE AND ACCOUNTABILITY
Finance-Related Legal and Contractual Provisions
In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures",
violations of finance-related legal and contractual provisions are reported below, along with actions
taken to address such violations.
Violation Action Taken
None
Note 3 - DEPOSITS AND INVESTMENTS
Deposits
All of the City's demand and time depository accounts are held in local banking institutions under
the terms of written depository contracts. At September 30, 2011, the total amount of the City's
demand and time deposits per the general ledger was $2,160,509, and the total amount per the
City's September 30, 2011 bank statements was $2,702,059. The entire amount of the year-end
bank statement balances was covered by federal depository insurance or by collateral held by the
City's agent in the City's name.
36
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 3 - DEPOSITS AND INVESTMENTS (CONTD.)
Investments
The investment policies of the City and its discretely presented component units are governed by
The Public Funds Investment Act. Authorized investments include obligations of the U.S. Treasury,
agencies and instrumentalities, obligations of the State of Texas and related agencies, obligations
of states, agencies, counties, cities and political subdivisions of any state rated A or above by a
nationally recognized investment rating firm, repurchase agreements, public funds investment
pools, and commercial paper.
The investments of the City and its discretely presented component units at September 30, 2011
are as follows:
Fair Value/ Average Weighted Average
Carrying Credit Quality/ Months to
Types of Investments Amount Cost Ratings Maturity
Primary Government:
TexPool $32,737,953 $32,737,953 Not rated 1.00
LOGIC 23,963,727 23,963,727 Not rated 1.00
Money market account 9,826,382 9,826,382 Not rated 1.00
Total primary government
investments 66,528,062 66,528,062
Component Units:
TexPool 17,546,539 17,546,539 Not rated 1.00
Total component unit
investments 17,546,539 17,546,539
Total investments $84NA 601 $84,074,601
TexPool is a public funds investment pool administered by the Treasurer of the State of Texas
pursuant to the Interlocal Cooperation Act passed in 1989 by the 71st Texas Legislature. This Act
authorized the City to delegate to TexPool the authority to make investment purchases and to hold
legal title as custodian of the investment securities. All TexPool investments are in the possession
of the Texas Treasury Safekeeping Trust Company and held in its book-entry safekeeping account
at the Federal Reserve Bank of Dallas. The Texas Treasury Safekeeping Trust Company was
created in 1986 by the 69th Texas Legislature to enable the Treasurer of the State of Texas to
manage, safekeep, and invest public funds of state agencies and political subdivisions more
efficiently and economically. TexPool is not registered with the Securities and Exchange
Commission (SEC) as an investment company. TexPool is operated in a manner consistent with
the SEC's Rule 2a-7 of the Investment Company Act of 1940. Therefore, the fair value of the City's
position in TexPool is the same as the value of the pool shares.
LOGIC was also established pursuant to the Interlocal Cooperation Act passed by the State of
Texas and is administered by Southwest Securities Group, Inc. LOGIC's governing body is a five-
member board of directors comprised of three government officials and two other persons with
expertise in public finance. LOGIC's investments are only those authorized by the Texas Public
Funds Investment Act governing pools for local governments. LOGIC presently offers two
investment pools, each of which is separately managed and has a different investment objective.
Each participating government owns an undivided beneficial interest in the assets of the pool
37
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 3 - DEPOSITS AND INVESTMENTS(CONT'D.)
represented by units. Participants may terminate their participation in LOGIC at any time by
redeeming their units. LOGIC is not registered with the Securities and Exchange Commission
(SEC) as an investment company. LOGIC is operated in a manner consistent with the SEC's Rule
2a-7 of the Investment Company Act of 1940. Therefore, the fair value of the City's position in
LOGIC is the same as the value of the pool shares.
GASB Statement No. 40 requires a determination as to whether the City was exposed to the
following specific investment risks at year end and if so, the reporting of certain related disclosures:
a. Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The ratings of securities by nationally recognized rating agencies are designed
to give an indication of credit risk. At year end, the City was not exposed to credit risk.
b. Custodial Credit Risk
Deposits are exposed to custodial credit risk if they are not covered by depository insurance
and the deposits are uncollateralized, collateralized with securities held by the pledging
financial institution, or collateralized with securities held by the pledging financial institution's
trust department or agent but not in the City's name.
Investment securities are exposed to custodial risk if the securities are uninsured, are not
registered in the name of the government, and are held by either the counterparty or the
counterparty's trust department or agent but not in the City's name.
At year end, the City was not exposed to custodial credit risk.
c. Concentration of Credit Risk
This risk is the risk of loss attributed to the magnitude of a government's investment in a
single issuer. At year end, the City was not exposed to concentration of credit risk.
d. Interest Rate Risk
This is the risk that changes in interest rates will adversely affect the fair value of an
investment. In accordance with its investment policy, the City manages its exposure to
interest rate risk by allowing no more than 20% of the City's portfolio to be invested for a
period greater than one year.
e. Foreign Currency Risk
This is the risk that exchange rates will adversely affect the fair value of an investment. At
year end, the City was not exposed to foreign currency risk.
38
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2011
Note 4- RECEIVABLES
Receivables at September 30, 2011 consist of the following:
Nonmajor Nonmajor Totals Totals
Governmental Water and Enterprise Internal Primary Component Reporting
General Funds Sewer Sanitation Funds Service Government Units Entity
Receivables:
Taxes and assessments $1,621,106 $ 298,331 $ - $ - $ - $ - $ 1,919,437 $ - $ 1,919,437
Customer and trade - - 6,269,836 1,630,339 333,039 - 8,233,214 - 8,233,214
Other City funds 2,991,939 - - - - 2,991,939 - 2,991,939
Government agencies 3,541,334 3,472,342 51,419 - 240,287 - 7,305,382 1,244,483 8,549,865
Other 1,726,176 122,749 66,153 - 78,815 40,509 2,034,402 2,034,402
cwp Gross receivables 9,880,555 3,893,422 6,387,408 1,630,339 652,141 40,509 22,484,374 1,244,483 23,728,857
Less: Allowance for
uncollectible accounts ( 701,762) ( 51,213) ( 1,238,803) ( 430,216) ( 60,957) - ( 2,482,951) ( 2,482,951)
Net total receivables $9 178,793 $4 Oq $1 200 123 $40 5p9 $�0 001,4 � $1 44 48 $�?45�06
There are no receivables, other than delinquent property taxes, that the City does not expect to collect within a year. The City expects to collect
approximately$300,000 of the$1,919,437 total delinquent property taxes. This amount is similar to the amounts collected in previous years.
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 5 - 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, 2011 was $.62526 per $100 which means that the City has a tax margin of
$1.62474 per $100, and could raise up to $71,846,695 additional tax revenue a year from the
present assessed valuation of$4,422,042,602 before the limit is reached.
Note 6 - RESTRICTED ASSETS
Restricted assets in the Water and Sewer Fund, Municipal Airport Fund, and Internal Service
Funds, are held for specific purposes in accordance with bond ordinances or other legal
restrictions.
Water and Sewer restricted assets are comprised of the following:
For Debt Service:
Cash and cash equivalents $11,734,924
For Capital Improvements:
Cash and cash equivalents 14,141,212
Total 25.876.136
Municipal Airport restricted assets are comprised of the following:
For Passenger Fare Charges:
Cash and cash equivalents $ 268. 117
Internal Service Fund restricted assets are comprised of the following:
For Employee Insurance:
Cash and cash equivalents 1.048.370
40
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 7 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2011 was as follows:
Balance Balance
Governmental activities: October 1, September 30,
2010 Increases Decreases 2011
Capital assets not being depreciated:
Land $ 9,313,952 $ 1,295,547 $ - $ 10,609,499
Construction in progress 7,070,334 57,662 6,694,634 433. 662
Total capital assets not being depreciated 16,384,286 1,353,209 6,694,634 11,042,861
Capital assets being depreciated:
Land betterments 23,400,516 60,386 - 23,460,902
Buildings, systems and improvements 65,145,044 3,532,042 2,339 68,674,747
Infrastructure 155,392,414 4,459,925 1,533,732 158,318,607
Machinery and equipment 16,987,484 5,029,864 207,130 21,810,218
Furniture and fixtures 192,581 2,920 189,661
Total capital assets being depreciated 261,118,039 13,082,217 1,746,121 272,454,135
Less accumulated depreciation for:
Land betterments 3,771,838 490,338 - 4,262,176
Buildings,systems and improvements 15,217,544 1,389,970 1,606 16,605,908
Infrastructure 83,137,636 2,130,613 1,295,344 83,972,905
Machinery and equipment 7,491,575 1,336,388 162,587 8,665,376
Furniture and fixtures 184,306 1;589 1,527 184,368
Total accumulated depreciation 109,802,899 5,348,898 1,461,064 113,690,733
Total capital assets being depreciated, net 151,315,140 7,733,319 285,057 158,763,402
Governmental activities capital
assets, net $167,699,426 $ 9,086,528 $6.979.691 $169,806,263
41
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 7 - CAPITAL ASSETS(CONTD.)
Balance Balance
Business-type activities: October 1, September 30,
2010 Increases Decreases 2011
Capital assets not being depreciated:
Land $ 8,855,617 $ 120,500 $ 6,212 $ 8,969,905
Construction in progress 36,822,475 20,419,441 10,734,977 46,506,939
Total capital assets not being depreciated 45,678,092 20,539,941 10,741,189 55,476,844
Capital assets being depreciated:
Land betterments 30,531,299 5,407,907 - 35,939,206
Buildings, systems and improvements 274,068,211 9,140,258 214,550 282,993,919
Machinery and equipment 6,991,154 400,926 48,092 7,343,988
Furniture and fixtures 40,819 - - 40,819
Motor vehicles 46,814,089 2,333,215 1,032,433 48,114,871
Total capital assets being depreciated 358,445,572 17,282,306 1,295,075 374,432,803
Less accumulated depreciation for:
Land betterments 12,353,734 665,246 6,039 13,012,941
Buildings, systems and improvements 84,014,603 5,359,478 131,250 89,242,831
Machinery and equipment 4,896,406 474,027 50,837 5,319,596
Furniture and fixtures 39,020 1,753 - 40,773
Motor vehicles 28,651,379 3,828,201 1,002,928 31,476,652
Total accumulated depreciation 129,955,142 10,328,705 1,191,054 139,092,793
Total capital assets being depreciated, net 228,490,430 6,953,601 104,021 235,340,010
Business-type activities capital
assets, net $274,168,522 $27,493,542 $10-845,210 $290 816,854
Depreciation expense was charged to functions as follows:
Governmental activities:
Administrative services $ 566,601
Police 1,072,042
Fire 151,782
Parks and recreation 231,609
Accounting/finance 151,687
Community development 11,333
Public works 1,918,734
Health 121,551
Traffic and transportation 288,456
Multi-Purpose Events Center 835,103
Total governmental depreciation $5,348,898
42
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 7 - CAPITAL ASSETS(CONTD.)
Business-type activities:
Municipal Airport $ 165,815
Kickapoo Airport 353,952
Transit 330,671
Sanitation 2,942,595
Water and sewer 6,188,553
Stormwater drainage 162,054
Water park 185,065
Total business-type depreciation $10,328,705
Note 8 - PENSION PLANS
Texas Municipal Retirement System
Plan Description
The City provides pension benefits for all of its eligible employees, except firefighters, through
a nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal
Retirement System (TMRS), an agent multiple-employer public employee retirement system.
The plan provisions are adopted by the governing body of the City, within the options available in
the state statutes governing TMRS.
TMRS issues a publicly available comprehensive annual financial report that includes financial
statements and required supplementary information (RSI) for TMRS; the report also provides
detailed explanations of the contributions, benefits and actuarial methods and assumptions
used by the System. This report may be obtained by writing TMRS, P.O. Box 149153, Austin,
TX 78714-9153 or by calling 800-924-8677; in addition, the report is available on TMRS'
website at www.TMRS.org.
Plan provisions for the City were as follows:
Plan Year 2010 Plan Year 2011
Employee deposit rate 5%/7% 5%/7%
Matching ratio(City to employee) 2 to 1 2 to 1
Years required for vesting 10 10
Service retirement eligibility
(expressed as age/years of service) 60/10, 0/25 60/10, 0/25
Updated Service Credit 50% Repeating,Transfers 50% Repeating,Transfers
Annuity Increase(to retirees) 70%of CPI Repeating 70%of CPI Repeating
43
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 8 - PENSION PLANS(CONTD.)
Contributions
Under the state law governing TMRS, the contribution rate for each city is determined annually
by the actuary, using the Projected Unit Credit actuarial cost method. This rate consists of the
normal cost contribution rate and the prior service cost contribution rate, which is calculated to
be a level percent of payroll from year to year. The normal cost contribution rate finances the
portion of an active member's projected benefit allocated annually; the prior service
contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the
applicable period for that city. Both the normal cost and prior service contribution rates include
recognition of the projected impact of annually repeating benefits, such as Updated Service
Credits and Annuity Increases.
The City contributes to the TMRS Plan at an actuarially determined rate. Both the employees
and the City make contributions monthly. Since the City needs to know its contribution rate in
advance for budgetary purposes, there is a one-year delay between the actuarial valuation that
serves as the basis for the rate and the calendar year when the rate goes into effect.
Wichita Falls Firemen's Relief and Retirement Fund
Plan Description
The City provides pension benefits for all of its firefighters through a single employer defined
benefit pension plan. The Wichita Falls Firemen's Relief and Retirement Fund (Fund)operates
under an act passed in 1937 by the Texas State Legislature and adopted by the City's
firefighters.
Benefits are determined on a "formula" or a "final salary" plan. A firefighter who qualifies for a
retirement benefit will receive monthly retirement equal to 2.28% (2.10% prior to August 5,
1998) of the firefighter's.highest three year average salary calculated over the seventy-eight
consecutive pay periods during the frefighter's period of service covered by the Plan, which
produces the highest average, multiplied by 2.167.
Members can receive a service retirement at ages 50 and above with 20 or more years of
service. Members are eligible for actuarially reduced early retirement benefits before age 50,
provided the employee has accrued at least 20 years of service. The plan also provides death
and disability benefits. Members who terminate their service and are nonvested are entitled to
the excess of the member's contributions over any benefits previously received.
44
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30, 2011
Note 8 - PENSION PLANS (CONTD.)
Contributions
The contribution rate for the firefighters is 11% (increased from 9% effective August 5, 1998)
and the City contributes 10.46% (increased from 9% effective September 26, 2001). Both the
firefighters and City make contributions bi-weekly. Contribution requirements are not actuarially
determined, however, state law requires that each plan of benefits adopted by the Fund must be
approved by a qualified actuary. The actuary certifies that the contribution commitments by the
firefighters and the City provide an adequate financing arrangement. Using the entry age
actuarial cost method, the plan's normal cost is determined as a percentage of payroll. The
actuarial assumptions included (a) 8% investment rate of return (net of administrative expenses,
(b) projected salary increases due to inflation of 4.75% per year, compounded annually, and (c)
projected salary increases due to seniority/merit raises of 4.75% per year, compounded
annually. The actuarial value of assets was determined using techniques that smooth the
effects of short-term volatility in the market value of investments over a ten-year period. The
unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll
on a closed basis. The remaining amortization period at December 31, 2008 was 24.8 years.
Schedule of Actuarial Liabilities and Funding Progress
Texas
Municipal Firemen's
Retirement Relief and
System Retirement Total
Actuarial Valuation Date 12/31/10* 12/31/08
Actuarial Value of Assets $155,809,040 $39,358,309 $110,864,254
Actuarial Accrued Liability(AAL) 193,990,630 54,260,301 179,585,602
Percentage Funded 80.3% 72.5% 61.7%
Unfunded Actuarial Accrued Liability(UAAL) 38,181,590 14,901,992 68,721,348
Annual Covered Payroll 38,337,008 8,915,419 47,935,458
UAAL as a Percentage of Covered Payroll 99.6% 167.1% 143.4%
Net Pension Obligation (NPO)at
the Beginning of the Period -0- -0- -0-
Annual Pension Cost:
Annual Required Contribution(ARC) $ 5,218,722 $ 1,174,529 $ 6,393,251
Interest on NPO -0- -0- -0-
Adjustment to the ARC -0- -0- -0-
Annual Pension Cost $ 5 218 722 $ 1 174 529 $ 6,393,251
TMRS restructured its funds as of December 31, 2010. These amounts represent the actuarial
valuation performed after the restructuring.
45
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 8 - PENSION PLANS(CONTD.)
Texas
Municipal Firemen's
Retirement Relief and
System Retirement Total
Percentage of Annual Pension Costs Contributed 100% 100% 100%
Contributions Made $ 5,218,722 $ 1,174,529 $ 6,393,251
Increase in NPO -0- -0- -0-
NPO At the End of the Period -0- -0- -0-
Two preceding years:
2009:
Annual Pension Cost $ 5,300,506 $ 1,136,628 $ 6,437,134
Percentage of Annual Pension Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
2008:
Annual Pension Cost $ 4,997,318 $ 1,018,126 $ 6,015,444
Percentage of Annual Pension Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
Actuarial Assumptions
Texas
Municipal Firemen's
Retirement Relief and
System Retirement
Actuarial Cost Method Projected Unit Credit Entry Age
Amortization Method Level Percent of Payroll Level Percent of Payroll
Remaining Amortization Period 27 Years 24.8 Years
Amortization Period Closed Closed
Amortization Period for New Gains/Losses 30 Years
Asset Valuation Method 10-Year Smoothed Market Smooth Market Value
Investment Rate of Return 7.0% 8%
Projected Salary Increases Varies by Age& Service 4.75%
Includes Inflation at 3.0% 4.75%
Cost-of-Living Adjustments 2.1% (3.0% CPI) None
Both of the stand-alone financial reports for the Texas Municipal Retirement System and
Firemen's Relief and Retirement Fund can be obtained from the City's Director of Finance at 1300
7th Street, Wichita Falls, Texas.
A schedule of funding progress is presented as required supplementary information for both the
Texas Municipal Retirement System and the Firemen's Relief and Retirement Fund. These
schedules provide multi-year trend information that shows whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
46
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Plan Description
The City administers the City of Wichita Falls Retiree Health Care Plan for all permanent
employees who retire after satisfying eligibility retirement requirements through a single-employer
defined benefit plan. All employees who retire and are actively in one of the City's health plans can
continue to receive health care benefits under the City's plan for themselves and any dependents
for as long as the retiree and/or dependents live. The plan does not issue a stand-alone financial
report.
Retiree Contributions Pre-Medicare Eligibility
Retirees share in the cost of the Plan by paying premiums according to the following schedule:
BC/BS BC/BS
Core Plan Enhanced Plan
Retiree Only (under 65) $171 $278
Retiree Only (over 65) N/A N/A
Retiree/Spouse(both <65) $321 $492
Retiree/Spouse(both > 65) N/A N/A
Retiree/Spouse (1 >, 1 <65) $583 $690
Retiree/Child $294 $465
Retiree/Family $364 $578
Dental premiums are included in the under 65 premiums above.
Benefits for Spouses of Retired Employees
Spouses of retirees are eligible to participate in a retiree health care program. Spouses are
eligible to continue with same coverage after the death of retiree.
Non-Medicare and Medicare-Eligible Provisions
Medicare-eligible retirees and spouses on Medicare are eligible to participate in a Medicare
supplement health care plan. Effective January 1, 2009, the following changes will be
implemented to Medicare eligible retirees:
For retirees already on Medicare as of January 1, 2009, the City will provide $250 in premium
assistance towards the full premium for a Medicare subsidy program. The $250 is expected to
be a fixed amount. Spouses currently covered in the health plan will also be eligible for the
$250 premium assistance.
For members retired as of January 1, 2009 but not yet Medicare-eligible, the City will provide
$100 in premium assistance towards the full premium for a Medicare subsidy program. The
$100 is expected to be a fixed amount. Spouses can participate in the Medicare subsidy
program, but will receive no premium assistance.
47
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONTD.)
For members who retire on or after January 1, 2009, the City will provide no premium
assistance once Medicare-eligible. The retiree premium for post-65 coverage is $421/month
for each covered member as of June 1, 2010.
Vision Coverage
There is no vision coverage provided as of September 30, 2011.
Dental Coverage
Retirees and spouses prior to qualifying for Medicare are eligible to participate in the same dental
care program as active employees. There is no dental coverage for retiree or spouses on the
Medicare supplement.
Life Insurance Coverage
Life Insurance of $7,500 is provided to each retiree. There is no Life coverage for spouses of
retirees.
Funding Policy and Annual OPEB Cost
The City's annual other post-employment benefits (OPEB) cost is based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years. The City has established a
trust to fund the City's OPEB liability and intends on contributing quarterly installments to meet its
obligation.
The City's OPEB cost for the current year is as follows:
Annual Required Contribution $2,437,686
Interest on OPEB obligation -
Adjustment to ARC -
Annual OPEB cost(expense) end of year 2,437,686
Net estimated employer contributions ( 2,437,686)
Increase (decrease) in net OPEB obligation Net OPEB obligation—beginning of year Net OPEB obligation—end of year $ -
48
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONTD.)
Schedule of Actuarial Liabilities and Funding Status
Actuarial Valuation Date 12/31/10
Actuarial Value of Assets $ 853,478
Actuarial Accrued Liabilities $32,409,858
Unfunded Actuarial Accrued Liability (UAAL) $31,556,380
Funded Ratio 2.63%
Annual Covered Payroll N/A
UAAL as a Percentage of Annual Covered Payroll N/A
Actuarial Methods and Assumptions
The Projected Unit Credit actuarial cost method is used to calculate the GASB ARC for the City's
retiree health care plan. Using the plan benefits, the present health premiums and a set of
actuarial assumptions, the anticipated future payments are projected. The projected unit credit
method then provides for a systematic funding for these anticipated payments. The yearly ARC is
computed to cover the cost of benefits being earned by covered members as well as to amortize a
portion of the accrued liability.
Projections of health benefits are based on the plan as understood by the City and include the
types of benefits in force at the valuation date and the pattern of sharing benefit costs between
Wichita Falls and its employees to that point. Actuarial calculations reflect a long-term perspective
and employ methods and assumptions that are designed to reduce short-term volatility in actuarial
accrued liabilities and the actuarial value of assets. Significant methods.and assumptions were as
follows:
Inflation rate 3.00% per annum
Investment rate of return 7.5%, net of expenses
Actuarial cost method Projected unit credit cost method
Amortization method Level as a percentage of salary
Amortization period Open 30 year period
Salary growth 3.0% per annum
Medical trend 9.0%for 2009; decreasing by 0.5% each year
until 2018; then 4.5%thereafter
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the profitability of events in the future. Amounts determined regarding the funded status and the
annual required contributions of the City's retiree health care plan are subject to continual revision
as actual results are compared to past expectations and new estimates are made about the
future. The required schedule of funding progress presented as required supplementary
information provides multi-year trend information that shows whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
49
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 10 - DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a
portion of their salary until future years. The deferred compensation is not available to the
employees until termination, retirement, death, or an unforeseen emergency.
Note 11 - AIRPORT LEASE
The Municipal Airport facilities are located on land at Sheppard Air Force Base. The land is
leased from the Department of the Air Force for a period of fifty years, beginning May 15, 2009
and expiring May 14, 2059. The City's expense for the year ended September 30, 2011 was
$34,196. The lease payment increases by 3% per year with a final lease payment of$141,307
in 2059.
Note 12 - DESCRIPTION OF LEASING ARRANGEMENTS
The majority of the City's operating leases contain an option for annual renewal at the end of the
initial lease term. In most cases, these leases will be canceled or replaced by other leases. The
City leases certain equipment under operating leases expiring at various times through the year
ending September 30, 2011.
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, 2011:
Year ending September 30:
2012 $ 267,971
2013 143,093
2014 139,735
2015 106,907
2016 77,652
2017-2021 216,782
2022-2026 251,309
2027-2031 291,336
2032-2036 337,739
2037-2041 391,532
2042-2046 453,893
2047-2051 526,186
2052-2056 609,994
2057-2059 411,692
Total minimum payments required 4 225 821
The total rental expenses for all operating leases for the year ended September 30, 2011 was
$294,892. There were no contingent rentals during the year ended September 30, 2011.
50
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 13 - LONG-TERM LIABILITIES
Long-term liabilities transactions for the year ended September 30, 2011 are summarized as
follows:
Balance at Balance at
October 1, Retired and September 30, Due Within
2010 Issued Transferred(1) 2011 One Year
Governmental Activities:
General obligation bonds $ 4,790,000 $ - $ 340,000 $ 4,450,000 $ 355,000
Combination tax and revenue bonds 35,918,687 - 1,814,526 34,104,161 1,892,945
Accrued vacation and sick
leave payable 6,820,669 1,897,519 1,831,168 6,887,020 1,900,000
Claims and judgments payable 202,584 461,856 500,541 163,899 82,027
Total governmental activities 47,731,940 2,359,375 4,486,235 45,605,080 4,229,972
Business-type Activities:
Utility system revenue bonds,
net of premium(discount) 107,501,744 - 2,223,966 105,277,778 1,982,898
Combination tax and revenue bonds 27,744,748 - 3,774,991 23,969,757 4,171,414
Accrued vacation and sick
leave payable 528,532 535,470 506,890 557,112 500,000
Note payable 609,234 - 32,155 577,079 33,201
Capital lease payable 549,621 - 177,925 371,696 183,156
Landfill closure,post-closure costs 3,432,700 141,731 - 3,574,431 -
Total business-type activities 140,366,579 677,201 6,715,927 134,327,853 6,870,669
Total long-term liabilities $179,932,933 $11,100,641
(1) Includes bond premium amortization of $39,526 related to the combination tax and revenue
bonds (governmental activities), $108,966 related to revenue bonds, and $274,991 related to the
combination tax and revenue bonds(business-type activities).
For governmental activities, claims and judgments payable and compensated absences are
generally liquidated by the General Fund.
Bonds Payable
Bonds payable at September 30, 2011, including net unamortized premium on the revenue bonds,
are comprised of the following individual issues:
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Payments Authorized at 9/30/11
General Obligation Bonds:
General Obligation and Construction 3.75%- 9/01/21 $175,000 to $10,205,000 $ 4,450,000
Refunding Bonds,Series 2001 5.375% $945,000
Total General Obligation Bonds 4,450,000
51
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2011
Note 13 - LONG-TERM LIABILITIES(CONTD.)
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Payments Authorized at 9/30/11
Combination Tax and Revenue Bonds:
Combination Tax and Revenue 3.00%- 9/01/18 $335,000 to 7,550,000 2,655,000
Certificates of Obligation,Series 2003 4.00% $775,000
Combination Tax and Revenue 2.00%- 8/01/12 $640,000 to 18,840,000 3,645,000
Refunding Bonds,Series 2004 5.00% $3,645,000
Plus bond premium 43,710
Combination Tax and Revenue 4.90%- 8/01/16 $115,000 to 14,020,000 9,700,000
Refunding Bonds,Series 2005 5.00% $2,650,000
Plus bond premium 357,929
Combination Tax and Revenue 3.55%- 9/01/26 $580,000 to 16,875,000 13,710,000
Certificates of Obligation,Series 2006A 5.00% $1,225,000
Plus bond premium 283,327
Combination Tax and Revenue 5.20%- 9/01/26 $130,000 to 4,275,000 3,550,000
Certificates of Obligation,Series 2006E 6.25% $345,000
Plus bond premium 65,834
Combination Tax and Revenue 2.25%- 10/01/28 $340,000 to 10,820,000 10,075,000
Certificates of Obligation,Series 2009 4.75% $780,000
Combination Tax and Revenue 5.60% 02/01/25 $165,000 to 3,930,000 3,765,000
Certificates of Obligation,Series 2010 $375,000
Combination Tax and Revenue 2.00%- 8/01/18 $170,000 to 9,830,000 9,660,000
Refunding Bonds,Series 2010 4.00% $3,600,000
Plus bond premium 563,118
Total Combination Tax and Revenue Bonds 58,073,918
Revenue Bonds:
Water and Sewer Revenue Bonds:
Water&Sewer System Priority 3.75%- 8/01/12 $1,220,000 to 118,770,000 1,615,000
Lien Revenue Bonds,Series 2001 5.375% $1,665,000
Plus bond premium 807,394
Water&Sewer System Priority 4.00%- 8/01/27 $225,000 to 103,495,000 102,550,000
Lien Refunding Revenue Bonds, 4.50% $11,070,000
Series 2007
Plus bond premium 305,384
Total Revenue Bonds 105,277,778
Total All Bonds $167,801 $96
52
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 13 - LONG-TERM LIABILITIES(CONTD.)
All of the General Obligation Bonds were issued on the full faith and credit of the City and are
secured by ad valorem taxes levied against all taxable property. These bonds are serviced by the
Debt Service Fund with an apportionment of the ad valorem tax levy. At September 30, 2011,
$190,457 was available in this fund to service these bonds.
The Combination Tax and Revenue Bonds are secured by ad valorem taxes levied against all
taxable property as well as a pledge of surplus net revenues of the City's combined waterworks and
sewer system. The Series 2003 and 2010 Certificates will be serviced by the Debt Service Fund by
contributions from the Wichita Falls 4B Economic Development Corporation. The Series 2004 and
the Series 2005 Certificates will be serviced by the net revenues of the Water and Sewer Fund, as
well as the Series 2010 Combination Tax and Revenue Refunding Certificates.
All of the Water and Sewer Revenue Bonds were issued for purposes of improving the City's water
and sewer systems and are serviced by the net revenues of the Water and Sewer Fund.
Notes Payable
The City of Wichita Falls and Wichita County Water Improvement District Number 2, upon the
completion of the Lake Kemp reconstruction project in January 1976 by the U.S. Government, are
required to reimburse the U.S. Government 22.7% of its reported total cost of $8,774,705, or
$1,991,858. The City's share of this amount is 66.11%, or $1,316,817, payable in forty-nine
annual installments through January 2025 of $51,974, which includes interest at the rate of
3.253%.
The City's share of the total costs ($5,800,957) as well as the U.S. Government funded portion
($4,484,140) is reflected as capital assets in the Water and Sewer Enterprise Fund.
This contractual arrangement is strictly a cost-sharing agreement and is not considered a joint
venture as defined in Section J50 of the Codification of Governmental Accounting and Financial
Reporting Standards. The remaining debt payable to the U.S. Government at September 30,
2011 is classified as follows:
Long-term $543,878
Current portion 33,201
Total 1577 779
Capital Lease Payable
The City issued a capital lease on March 30, 2009 for the purchase of a fire ladder truck in the
amount of $916,548 which is the total amount of the City's assets acquired under capital lease.
This asset is listed under "Motor Vehicles" in the business-type activities. The lease carries an
interest rate of 2.94% and is due in five annual installments of $194,084, with final payment due
on March 30, 2013. The capital lease is recorded in the Fleet Maintenance Internal Service Fund
and is included in the business-type activities of the government-wide statements.
53
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT-D.)
SEPTEMBER 30, 2011
Note 13 - LONG-TERM LIABILITIES(CONTD.)
Aggregate maturities of the long-term debt(principal and interest) for the years subsequent to September 30, 2011 are as follows:
Combination Tax and
Year Ending General Obligation Bonds Revenue Bonds Revenue Bonds Notes Payable Capital Lease Payable Total
September 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2012 $ 355,000 $ 227,112 $ 6,064,359 $ 2,259,045 $ 1,982,897 $ 4,502,178 $ 33,201 $ 18,772 $183,156 $10,928 $ 8,618,613 $ 7,018,035
2013 370,000 210,694 4,961,732 2,046,508 3,431,663 4,412,262 34,281 17,692 188,540 5,543 8,986,216 6,692,699
2014 385,000 193,581 5,017,477 1,874,260 3,563,431 4,282,494 35,397 16,577 - - 9,001,305 6,366,912
2015 405,000 175,775 5,191,817 1,696,068 3,709,980 4,138,895 36,548 15,426 9,343,345 6,026,164
2016 425,000 154,513 5,378,922 1,505,992 3,861,351 3,989,099 37,737 14,237 9,703,010 5,663,841
2017-2021 2,510,000 406,744 17,570,813 4,919,416 33,938,037 16,968,051 207,917 51,953 54,226,767 22,346,164
P
2022-2026 - - 11,653,798 2,147,653 50,971,174 7,729,551 191,998 15,862 62,816,970 9,893,066
2027-2029 2,235,000 162,125 3.819,245 167,430 6,054,245 329,555
Totals $4 450 000 $1 366 419 $58.073.918 $16 611 067 $105 277 778 $46 189 960 $1 $� $1 $168,750,471 $64 336.436
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 14 - LANDFILL AND TRANSFER STATION CLOSURE AND POSTCLOSURE CARE COSTS
State and federal laws and regulations require that the City place a final cover on its landfill when
closed, and perform certain maintenance and monitoring functions at the landfill site for thirty years
after closure. In accordance with the Texas Administrative Code, Title 30, Part 1, Chapter 7, the City
annually submits a financial assurance letter to the Texas Commission on Environmental Quality
(TCEQ). In addition to operating expenses related to current activities of the landfill, an expense
provision and related liability are being recognized based on the future closure and postclosure care
costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition
of these landfill closure and postclosure care costs is based on the amount of the landfill used
during the year. The estimated liability for landfill closure and postclosure care costs has a balance
of$3,574,431 as of September 30, 2011, which is based on 17% usage of-the landfill. The City will
recognize the remaining estimated cost of closure and postclosure care of $16,591,200 as the
remaining estimated capacity is filled. The landfill is expected to be filled to capacity in 2153. Actual
costs may be higher due to inflation, change in technology, or changes in regulations.
Note 15 - INTERFUND BALANCES
Balances due to and due from other funds at September 30, 2011 consisted of the following:
Due To Fund Due From Fund Amount Purpose
General Fund Nonmajor Governmental Funds $2,874,218 Short-term loan
General Fund Nonmajor Enterprise Funds 71,314 Short-term loan
General Fund Internal Service Funds 46,409 Short-term loan
Total 2.991.941
All amounts due are scheduled to be repaid within one year.
Transfers to and from other funds during the year ended September 30, 2011 were as follows:
Transfers From Transfers To Amount Reason
General Fund Nonmajor Governmental Funds $ 245,596 Supplement operating deficits
General Fund Nonmajor Enterprise Funds 617,148 Supplement operating grants
General Fund Nonmajor Governmental Funds 110,171 Supplement operating grants
General Fund Internal Service Fund 105,715 Purchase capital assets
General Fund Internal Service Fund 195,000 Fund operations
Nonmajor Governmental Funds General Fund 179,820 Fund construction projects
Nonmajor Governmental Funds Nonmajor Governmental Funds 281,988 Fund debt service payment
Nonmajor Governmental Funds Nonmajor Governmental Funds 1,479,707 Fund operating deficits
Nonmajor Governmental Funds Nonmajor Enterprise Funds 1,972,117 Purchase capital assets
Nonmajor Governmental Funds Internal Service Funds 34,379 Purchase capital assets
Nonmajor Governmental Funds Water and Sewer Fund 1,183,948 Fund construction projects
Water and Sewer Fund General Fund 847,214 Administrative overhead
Water and Sewer Fund Nonmajor Governmental Funds 500,000 Fund debt service payment
Sanitation Fund General Fund 1,506,667 Administrative overhead
Sanitation Fund Internal Service Funds 1,393,920 Purchase capital assets
Nonmajor Enterprise Funds Nonmajor Governmental Funds 326,766 Supplement operating grant
Nonmajor Enterprise Funds Nonmajor Governmental Funds 449,553 Fund debt service payment
Internal Service Funds General Fund 312,000 Administrative overhead
Total $11741709
55
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 16 - COMMITMENTS AND CONTINGENCIES
Litigation
The City is a defendant in numerous lawsuits. In the opinion of the City's management, any
unrecorded liabilities resulting from such suits will not materially affect the financial position of the
City. The City has accrued $500,000 as a liability in the General Fund for a claim that was settled
subsequent to September 30, 2011.
Accrued Vacation and Sick Leave
The City's liability for accrued vacation and sick leave excluding the amount recorded in the
proprietary funds was$6,887,020 at September 30, 2011. This accrual is recorded as a long-term
liability in the Government-wide Statement of Net Assets.
Contract Commitment With West Texas Utilities Company
In 1977, the City and Wichita County Water Improvement District Number 2 entered into a sixty-
year contract with the West Texas Utilities Company (the Company) and agreed to provide an
adequate water supply for the Company's use in generating power upon completion of the
Company's construction of a power plant adjacent to the Lake Kemp-Lake Diversion System.
The significant terms of the contract provide for standby charges to be paid to the City and the
Wichita County Water Improvement District Number 2 in equal amounts. Minimum charges for
the calendar year 1997 and all years thereafter until the end of contract will be$500,000 per year.
For water actually consumed, the Company shall pay the City and Wichita County Water
Improvement District Number 2 equally, at the base rate of$0.23 per one thousand gallons, which
is adjusted annually. The rate for the year ended September 30, 2011 was $.404046 per one
thousand gallons.
This contract can be terminated at any time by the Company. If the contract is terminated, the
Company is required to make a maximum termination payment equal to the minimum charges
which would have become due and payable during the following twenty-four month period.
Contract Commitments
At September 30, 2011, the City was committed to various contracts. The amounts for which the
various funds are committed to complete these contracts are as follows:
General Fund $ 386,864
Nonmajor Governmental Funds 2,557,905
Water and Sewer Fund 4,636,380
Sanitation Fund 365,938
Nonmajor Enterprise Funds 1,399,263
Internal Service Funds 72,170
Total contract commitments $9,418,520
56
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30,2011
Note 16 - COMMITMENTS AND CONTINGENCIES(CONTD.)
Federal and State Grants-Compliance Audits
The City participates in numerous Federal and State grants, on both a direct and state pass-
through basis, as well as on a service-provider basis. Principal among these are Community
Development Block Grants, Section 8 Housing Assistance, Home Investment Partnership
Agreement Program, and numerous health-related grants.
In connection with these grants, the City is required to comply with specific terms and agreements
as well as applicable Federal and State laws and regulations. Such compliance is subject to
review and audit by the grantors and their representatives.
In the opinion of management, the City has complied with all requirements. However, since such
programs are subject to future audit or review, the possibility of disallowed expenditures exists. In
the event of any disallowance of claimed expenditures, the City expects the resulting liability to be
immaterial.
Note 17 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED
COMPONENT UNITS
The City has four component units that are discretely presented in the City's basic financial
statements. Condensed financial information for the year ended September 30, 2011 is as follows:
Wichita Falls Wichita Falls
Economic 413 Sales Wichita Falls Wichita Falls
Development Tax Reinvestment Reinvestment
Corporation Corporation Zone#2 Zone#3 Totals
Condensed statement of net assets:
Cash,investments and other
current assets $14,488,869 $2,106,745 $ - $73,233 $16,668,847
Capital assets,net of accumulated
depreciation 2,321,697 - - 2,321,697
Total assets 16,810,566 2,106,745 - 73,233 18,990,544
Accounts payable and other
current liabilities 581,005 20,249 - - 601,254
Total liabilities 581,005 20,249 - 601,254
Net assets $18 38 2 0
57
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT-D.)
SEPTEMBER 30, 2011
Note 17 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED
COMPONENT UNITS (CONTD.)
Wichita Falls Wichita Falls
Economic 4B Sales Wichita Falls Wichita Falls
Development Tax Reinvestment Reinvestment
Corporation Corporation Zone#2 Zone#3 Totals
Condensed statement of activities:
Expenses:
Community development $ 5,495,089 $4,969,746 $319,650 $ $10,784,485
Program revenues:
Charges for services 106,800 - - - 106,800
Operating grants and contributions - 319,650 - - 319,650
Total program revenues 106,800 319,650 - - 426,450
Net program expense ( 5,388,289) ( 4,650096) 31( 9.650) - ( 10,358,035)
General revenues:
Tax revenues 3,513,832 3,513,832 319,612 37,647 7,384,923
Non-tax general revenues 48,273 4,896 38 46 53,253
Total general revenues and
transfers 3,562,105 3,518,728 319,650 37,693 7,438,176
Change in net assets ( 1,826,184) ( 1,131,368) - 37,693 ( 2,919,859)
Beginning net assets 18,055,745 3,217,864 - 35,540 21,309,149
Ending net assets $16229 561 $2.086,496 $--- $73 233 $18 389 290
Note 18 - SUBSEQUENT EVENT
On October 15, 2011, the City issued Combination Tax and Revenue Certificates of Obligation,
Series 2011 and General Obligation Refunding Bonds, Series 2011.
The Combination Tax and Revenue Certificates of Obligation, Series 2011 totaled $3,200,000 and
will be used to fund a portion of the Rhea, Call Field and Lawrence Road realignment project. The
certificates are payable in annual installments ranging from $135,000 to $365,000 with final
maturity on October 1, 2031.. The certificates carry interest rates ranging from 2.0%to 4.0%.
The General Obligation Refunding Bonds, Series 2011 totaled $4,365,000 and will be used to
refund the General Obligation Bonds, Series 2001. The certificates are payable in annual
installments ranging from $415,000 to $485,000 with final maturity on September 1, 2021. The
certificates carry interest rates ranging from 1.5%to 3.0%.
58
Required Supplemental Information
EXHIBIT B-1
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 53,533,919 $ 53,533,919 $ 54,513,746 $ 979,827
Charges for services 3,251,182 3,251,182 3,096,663 (154,519)
Licenses and permits 2,091,781 2,091,781 2,064,972 (26,809)
Fines and forfeitures 1,860,700 1,860,700 2,023,343 162,643
Intergovernmental revenue 40,725 40,725 18,480 (22,245)
Contributions - - 134,695 134,695
Miscellaneous revenue 1,041,994 1,041,994 1,039,839 (2,155)
Total revenues 61,820,301 61,820,301 62,891,738 1,071,437
Expenditures:
Current:
Administrative services 8,732,924 8,859,835 8,819,407 40,428
Police 20,165,766 20,100,829 19,886,599 214,230
Fire 12,716,881 12,737,792 12,704,565 33,227
Parks and recreation 4,685,022 4,751,899 4,636,653 115,246
Accounting/finance 2,264,997 2,394,189 2,367,814 26,375
Community development 1,758,170 1,826,509 1,696,745 129,764
Public works 5,261,384 5,237,894 5,049,855 188,039
Health 2,725,613 2,786,958 2,545,984 240,974
Traffic and transportation 2,094,528 2,050,299 2,027,827 22,472
Capital outlay 3,527,313 3,978,941 3,355,209 623,732
Total expenditures 63,932,598 64,725,145 63,090,658 1,634,487
Excess of revenues over(under)expenditures (2,112,297) (2,904,844) (198,920) 2,705,924
Other financing sources(uses):
Transfers in 2,665,881 2,665,881 2,845,702 179,821
Transfers out (553,584) (1,370,558) (1,273,630) 96,928
Total other financing sources(uses) 2,112,297 1,295,323 1,572,072 276,749
Excess of revenues and other sources
over(under)expenditures and other uses - (1,609,521) 1,373,152 2,982,673
Fund balance-beginning 15,686,848 15,686,848 15,686,848 -
Fund balance-ending $ 15,686,848 $ 14,077,327 $ 17,060,000 $ 2,982,673
59
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2011
Demonstrating compliance with the adopted budget is an important component of a government's
accountability to the public. Many citizens participate in the process of establishing the annual operating
budgets of state and local governments, and have a keen interest in following the actual financial
progress of their governments over the course of the year. The City and many other governments revise
their original budgets over the course of the year for a variety of reasons. Under the new reporting model,
governments will continue to provide budgetary comparison information in their annual reports. An
important change, however, is a requirement to add the government's original budget to the current
comparison of final budget and actual results.
The City adheres to the following procedures in establishing the operating budget reflected in the basic
financial statements:
On or before August 15 of each year, the City Manager submits to the City Council a proposed budget for
the fiscal year beginning the following October 1. The operating budget includes proposed expenditures
and the means of financing them. Public hearings are conducted. The budget is legally enacted by the
City Council through passage of appropriation and tax levying ordinances prior to September 30 and is
published under a separate cover.
An annual budget, including debt service requirements, is legally adopted for the General Fund, the
Community Development Block Grant Fund, the Section 8 Housing Fund, the HOME Investment
Partnership Agreement Fund, the Hotel/Motel Tax Fund, the Golf Fund, the MPEC Fund and the Debt
Service Fund, on a basis which is consistent with generally accepted accounting principles.
The City Council must approve any transfer of appropriation balances or portions thereof from one
department to another. The City Manager has the authority, without City Council approval, to transfer
appropriation balances from one expenditure account to another within a single department of the City.
Supplemental appropriations of $792,547 were approved by the City Council. The reported budgetary
data includes amendments made during the year.
At the close of each fiscal year, any unencumbered appropriated balance lapses to the unreserved fund
balance. The unencumbered appropriation balances in the Capital Projects Funds do not lapse at year
end.
60
EXHIBIT B-2
CITY OF WICHITA FALLS, TEXAS
TEXAS MUNICIPAL RETIREMENT SYSTEM -ANALYSIS OF FUNDING PROGRESS-
LAST TEN PLAN YEARS (UNAUDITED)"
(1) (2) (3) (4) (5) (6)
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of
Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll
Date of Assets Liability(AAL) (1) _ (2) (2)-(1) Payroll (4) _ (5)
12/31/01 $ 66,919,614 $ 88,721,318 75.4% $ 21,801,704 $ 29,061,189 75.0%
12/31/02 69,770,838 93,176,395 74.9% 23,405,557 31,065,101 75.3%
12/31/03 72,469,506 98,017,025 73.9% 25,547,519 31,516,130 81.1%
12/31/04 70,462,244 98,405,860 71.6% 27,943,616 33,522,283 83.4%
12/31/05 71,393,893 101,093,789 70.6% 29,699,896 32,846,479 90.4%
12/31/06 69,201,457 100,991,795 68.5% 31,790,338 33,791,762 94.1%
12/31/07 (1) 70,561,545 120,374,701 58.6% 46,813,156 35,873,970 138.9%
12/31/08 68,910,226 122,001,202 56.5% 53,090,976 38,272,312 138.7%
12/31/09 71,505,945 125,325,301 57.1% 53,819,356 39,020,039 137.9%
12/31/10 (2) 155,809,040 193,990,630 80.3% 38,181,590 38,337,008 99.6%
Analysis of the dollar amounts of the actuarial value of assets, actuarial accrued liability, and unfunded actuarial
accrued liability in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the
actuarial accrued liability provides one indication of the City's funding status on a going-concern basis. Analysis
of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally,
the greater this percentage, the stronger the pension plan. Trends in unfunded actuarial accrued liability and
annual covered payroll are both affected by inflation. Expressing the unfunded actuarial accrued liability as a
percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the
City's progress made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this
percentage, the stronger the pension plan.
This City retirement plan is substantially a defined contribution plan. These voluntary disclosures, similar to the
disclosures required for a defined benefit plan, are provided for additional analysis of the plan.
(1) TMRS made changes to both the actuarial funding method and actuarial assumptions for the 2007 valuation.
(2) TMRS, with the approval of the Texas Legislature, amended the fund structure of the plan as of December 31,
2010.
61
EXHIBIT B-3
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND -
ANALYSIS OF FUNDING PROGRESS (UNAUDITED)
(1) (2) (3) (4) (5) (6)
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of
Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll
Date of Assets Liability(AAL) (1) - (2) (2) - (1) Payroll (4) _ (5)
12/31/00 $ 26,930,018 $ 31,419,892 85.7% $ 4,489,874 $ 5,858,962 76.6%
12/31/01 (a) - - - - - -
12/31/02(b) 27,439,565 37,003,896 74.2% 9,564,331 6,609,807 144.7%
12/31/03(a) - - - - - -
12/31/04(b) 32,240,524 42,178,490 76.4% 9,937,966 7,175,196 138.5%
12/31/05(a) - - - - - -
12/31/06(b) 35,584,639 47,582,190 74.8% 11,997,551 7,697,370 155.9%
12/31/07(a) - - - - - -
12/31/08(b) 39,358,309 54,260,301 72.5% 14,901,992 8,915,419 167.1%
12/31/09(a) - - - - - -
12/31/10(c) - - - - - -
Analysis of the dollar amounts of the actuarial value of assets,actuarial accrued liability,and unfunded actuarial accrued liability
in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability provides
one indication of the City's funding status on a going-concern basis. Analysis of this percentage over time indicates whether the
system is becoming financially stronger or weaker. Generally,the greater this percentage,the stronger the pension plan. Trends
in unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial
accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of
the City's progress made in accumulating sufficient assets to pay benefits when due. Generally,the smaller the percentage,the
stronger the pension plan.
(a) Historical trend information is presented for as many years as such information about the plan is available. No actuarial
valuation or update was performed as of these dates. Texas state law does not require an actuarial valuation to be
completed annually.
(b) For the 2002,2004,2006 and 2008 valuations,retirement was assumed to occur once a member both attained age 57 and
completed 20 years of service. In prior years, retirement was assumed to occur at age 55 and 20 years of service. There
were no changes made in actuarial methods.
(c) The December 31,2010 valuation has not been completed as of yet. That valuation will be included in future CAFRs.
62
EXHIBIT B4
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS RETIREE HEALTH CARE PLAN -
ANALYSIS OF FUNDING PROGRESS (UNAUDITED)
(1) (2) (3) (4) (5) (6)
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of
Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll
Date of Assets Liability(AAL) (1) _ (2) (2) - (1) Payroll (4) _ (5)
12/31/06(a) $ - $ 29,656,852 0.0% $ 29,656,852 $ 40,021,675 74.1%
12/31/07(b) - - - - - -
12/31/08 - 32,143,378 0.0% 32,143,378 43,571,340 73.8%
12/31/09(b) - - - - - -
12/31/10 853,478 32,409,858 2.6% 31,556,380 47,297,531 66.7%
Analysis of the dollar amounts of the actuarial value of assets,actuarial accrued liability,and unfunded actuarial accrued liability
in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability provides
one indication of the City's funding status on a going-concern basis. Analysis of this percentage over time indicates whether the
system is becoming financially stronger or weaker. Generally,the greater this percentage,the stronger the plan. Trends in
unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial
accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of
the City's progress made in accumu►ating sufficient assets to pay benefits when due. Generally,the smaller the percentage,the
stronger the plan.
(a) The first actuarial valuation was performed as of December 31,2006 as the City began to prepare for the implementation
of GASB 45.
(b) Historical trend information is presented for as many years as such information about the plan is available. No actuarial
valuation or update was performed as of these dates. Texas state law does not require an actuarial valuation to be
completed annually.
63
Combining Financial Statements
Nonmajor Governmental Funds
Special Revenue Funds
The special revenue funds are used to account for the proceeds from specific revenue sources
(other than for major capital projects or proprietary funds) that are legally restricted to be
expended for specified purposes.
Community Development Block Grant Fund
The Community Development Block Grant Fund accounts for federal block grant revenues
and related expenditures.
Section 8 Housing Fund
The Section 8 Housing Fund accounts for federal funds received to subsidize rents and
housing payments for lower income families within the City.
Home Investment Partnership Agreement Fund
The Home Investment Partnership Agreement Fund accounts for federal funds received to
provide home ownership opportunities to low income, first-time homebuyers through the
acquisition, rehabilitation and resale of single-family dwellings that are currently owned by
governmental agencies.
Hotel/Motel Tax Fund
The Hotel/Motel Tax Fund accounts for revenues derived from an occupancy tax which is
expended on programs promoting the growth of the City of Wichita Falls.
Airport Improvement Grant Fund
The Airport Improvement Fund accounts for federal funds received to make capital
improvements to the Kickapoo Downtown Airport. This fund is not required to have a legally
adopted budget; therefore no budgetary comparison schedule is presented.
Golf Fund
The Golf Fund accounts for the activities at the Weeks Park Golf Course.
MPEC Fund
The MPEC Fund is used to account for the operations of the City's Multi-Purpose Events
Center.
Miscellaneous Special Revenue Fund
The Miscellaneous Special Revenue Fund accounts for various revenues generated in the
form of contributions, fees, concessions, rents and other charges and their related
expenditures. This fund also includes revenues derived from various grants for health and
police programs. The revenues in this fund are expended to support the activity generating
the revenue or as designated by the contributor. This fund is not required to have a legally
adopted budget; therefore no budgetary comparison schedule is presented.
Debt Service Funds
Debt Service Fund
The Debt Service Fund is established by ordinances authorizing the issuance of general
obligation bonds to provide for the payment of bond principal and interest. An ad valorem tax
rate and tax levy are required to be computed and levied which will be sufficient to produce
the funds required to pay principal and interest as they come due. This fund is also used to
provide for the payment of paying agent fees.
Excess Sales Tax Fund
The Excess Sales Tax Fund is used to account for and administer the excess sales tax
collected related to the property reduction tax. This fund is not required to have a legally
adopted budget; therefore no budgetary comparison schedule is presented.
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 federal grants or
proprietary funds.
4B Sales Tax Projects
This fund was established to account for projects financed by the Wichita Falls 4B Sales Tax
Corporation. Significant projects accounted for in this fund included the construction of three
fire stations and the renovation of the second floor of the Wichita Falls Public Library building
for recreational purposes.
2006-A Bond Fund
This fund was established to account for projects financed by the Combination Tax and
Revenue Certificates of Obligation, Series 2006A. These funds will be used for street and
drainage improvements, a police firing range, the construction of a new fire station, four
softball fields, and a skate park.
Miscellaneous Capital Projects Funds
This fund is an accumulation of several projects that have been undertaken over the years
including library renovations, street improvements and drainage improvements.
Permanent Fund
The permanent fund is used to account for principal trust amounts received and related interest
income. The interest earnings of this fund may be used for maintenance of the City's cemeteries.
CITY OF WICHITA FALLS, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30,2011
Special Revenue
Home
Community Investment Hotel/ Airport
Development Section 8 Partnership Motel Improvement Golf
Block Grant Housing Agreement Tax Grant Fund
ASSETS
Cash and cash equivalents $ 50 $ 2,568,195 $ 68,719 $ - $ 18,871 $ 47,509
Receivables:
Taxes and assessments - - - 182,323 - -
Government agencies 1,466,425 716,053 - 43,143
Other - - 20,190 -
Inventory - -
Prepaid items 2,493
Other assets - - - - - -
Total assets $ 1,466,475 $ 2,568,195 $ 784,772 $ 202,513 $ 62,014 $ 50,002
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable-trade $ 131,601 $ 431 $ - $ $ 20,662 $ 87,244
Accrued payroll 3,126 5,370 852 - -
Payable to other City funds 334,202 - - 143,104 65,770
Payable to government agencies - 73,659 - - -
Other liabilities 17,569 147 44,744 - - (69,023)
Deferred revenue - - - -
-
Totalliabilities 486,498 79,607 45,596 143,104 86,432 18,221
Fund balance:
Nonspendable:
Inventory and prepaid items - - - - - 2,493
Restricted for:
Perpetual care -
Debt service -
Capital projects
Federal and state grant programs 979,977 2,488,588 739,176 -
Tourism - - - 59,409 -
Committed for:
Golf course - 29,288
Multi-Purpose Events Center -
Local projects
Unassigned - - (24,418) -
Total fund balance 979,977 2,488,588 739,176 59,409 (24,418) 31,781
Total liabilities and fund balance $ 1,466,475 $ 2,568,195 $ 784,772 $ 202,513 $ 62,014 $ 50,002
64
EXHIBIT C-1
Permanent
Debt Service Capital Projects Fund
Total
Miscellaneous Miscellaneous Nonmajor
MPEC Special Debt Excess 413 Sales 2006-A Capital Perpetual Governmental
Fund Revenue Service Sales Tax Tax Projects Bond Fund Projects Care Funds
$ 737,902 $ 2,039,680 $ 225,252 $ 116,277 $ 2,114,790 $ 891,362 $ 3,253,472 $ 927,469 $ 13,009,548
- - 64,795 - - - - - 247,118
- 762,520 12,908 471,293 3,472,342
64,134 38,425 - - 122,749
65,881 - - 65,881
13,002 - - - 15,495
44,503 3,000 - - - - - 47,503
$ 925,422 $ 2,843,625 $ 302,955 $ 587,570 $ 2,114,790 $ 891,362 $ 3,253,472 $ 927,469 $ 16,980,636
$ 99,964 $ 86,836 $ - $ - $ 2,144 $ - $ 3,334 $ - $ 432,216
26,895 33,574 - - 69,817
- 1,031,633 1,299,509 2,874,218
7,211 2,302 - - - 83,172
321,748 309,805 36,906 - 661,896
- 37,236 75,502 - - 112,738
455,818 1,501,386 112,408 2,144 1,302,843 4,234,057
78,883 - - - - - 81,376
- - - - 927,469 927,469
190,547 587,570 - - - - 778,117
- - 2,112,646 891,362 1,950,629 4,954,637
- - - 4,207,741
59,409
- - 29,288
390,721 - 390,721
- 1,342,239 1,342,239
- - - - - (24,418)
469,604 1,342,239 190,547 587,570 2,112,646 891,362 1,950,629 927,469 12,746,579
$ 925,422 $ 2,843,625 $ 302,955 $ 587,570 $ 2,114,790 $ 891,362 $ 3,253,472 $ 927,469 $ 16,980,636
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2011
Special Revenue
Home
Community Investment Hotel/ Airport
Development Section 8 Partnership Motel Improvement Golf
Block Grant Housing Agreement Tax Grant Fund
Revenues:
Taxes $ - $ $ $ 1,545,407 $ $
Charges for services 12,435 - 457,478
Fines and forfeitures - - _
Intergovernmental revenue 1,531,250 3,788,473 552,275 1,101,248
Contributions - - - _ _
Miscellaneous revenue - 12,089 2,800 - 253,002
Total revenues 1,543,685 3,800,562 555,075 1,545,407 1,101,248 710,480
Expenditures:
Current:
Administrative services 161,687 85,523 888,412
Police - - _
Fire
Parks and recreation - -Community development 866,507 3,758,173 379,758
Public works 100,000 - -
Health - - _ _
Traffic and transportation 11,015 -
Multi-Purpose Events Center -
Capital outlay
Debt service:
Principal retirement
Interest and paying agent fees - - - - - _
Total expenditures 1,128,194 3,758,173 379,758 85,523 11,015 888,412
Excess of revenues over
(under)expenditures 415,491 42,389 175,317 1,459,884 1,090,233 (177,932)
Other financing sources(uses):
Transfers in - - - 326,766 177,933
Transfers out (640,484) (1,459,883) (1,412,644)
Total other financing sources(uses) (640,484) (1,459,883) (1,085,878) 177,933
Net change in fund balance (224,993) 42,389 175,317 1 4,355 1
Fundbalance-beginning 1,204,970 2,446,199 563,859 59,408 (28,773) 31,780
Fundbalance-ending $ 979,977 $ 2,488,588 $ 739,176 $ 59,409 $ (24,418) $ 31,781
65
EXHIBIT C-2
Permanent
Debt Service Capital Projects Fund
Total
Miscellaneous Miscellaneous Nonmajor
MPEC Special Debt Excess 4B Sales 2006-A Capital Perpetual Governmental
Fund Revenue Service Sales Tax Tax Projects Bond Fund Projects Care Funds
$ - $ - $ 591,560 $ 471,293 $ $ $ $ $ 2,608,260
174,788 144,796 - - 789,497
- 185,683 185,683
- 4,049,953 - 11,023,199
200,000 194,574 2,095,802 - 1,917,078 4,407,454
1,469,782 409,207 575 497 - 1,434 4,999 22,510 2,176,895
1,844,570 4,984,213 2,687,937 471,790 1,917,078 1,434 4,999 22,510 21,190,988
- 280,691 - - - - - - 1,416,313
341,040 - 7,373 - 348,413
61,264 - 131,981 - - 193,245
102,661 - 180,878 30,359 15,509 329,407
423,668 - - - - - 5,428,106
16,482 - 2,887 1,400 - 120,769
2,119,659 - - 131,291 2,250,950
- 194,469 - - 205,484
3,436,052 - - - 3,436,052
145,759 890,122 - 650,818 2,558,583 4,245,282
- - 2,115,000 - - 2,115,000
- 1,927,370 - - 7,565 1,934,935
3,581,811 4,430,056 4,042,370 - 973,937 1,400 2,727,798 15,509 22,023,956
(1,737,241) 554,157 (1,354,433) 471,790 943,141 34 (2,722,799) 7,001 (832,968)
1,501,794 155,747 1,231,541 - - - - 3,393,781
- (671,755) - (281,988) (366,235) (280,477) (18,493) (5,131,959)
1,501,794 (516,008) 1,231,541 (281,988) (366,235) (280,477) (18,493) (1,738,178)
(235,447) 38,149 (122,892) 189,802 576,906 (280,443) (2,741,292) 7,001 (2,571,146)
705,051 1,304,090 313,439 397,768 1,535,740 1,171,805 4,691,921 920,468 15,317,725
$ 469,604 $ 1,342,239 $ 190,547 $ 587,570 $ 2,112,646 $ 891,362 $ 1,950,629 $ 927,469 $ 12,746,579
EXHIBIT C-3
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE-COMMUNITY DEVELOPMENT BLOCK GRANT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Variance With
Final.Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ - $ - $ 12,435 $ 12,435
Intergovernmental revenue 1,931,250 1,931,250 1,531,250 (400,000)
Total revenues 1,931,250 1,931,250 1,543,685 (387,565)
Expenditures:
Administrative services 161,687 167,443 161,687 5,756
Community development 1,060,600 1,440,754 866,507 574,247
Public works 100,000 100,000 100,000 -
Capital outlay 608,963 1,108,963 - 1,108,963
Total expenditures 1,931,250 2,817,160 1,128,194 1,688,966
Excess of revenues over(under)expenditures - (885,910) 415,491 1,301,401
Other financing sources(uses):
Transfers out - (19,824) (640,484) (620,660)
Total other financing sources(uses) - (19,824) (640,484) (620,660)
Excess of revenues and other sources
over(under)expenditures and other uses - (905,734) (224,993) 680,741
Fund balance-beginning 1,204,970 1,204,970 1,204,970 -
Fund balance-ending $ 1,204,970 $ 299,236 $ 979,977 $ 680,741
66
EXHIBIT C-4
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -SECTION 8 HOUSING FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 3,782,622 $ 3,782,622 $ 3,788,473 $ 5,851
Miscellaneous revenue - - 12,089 12,089
Total revenues 3,782,622 3,782,622 3,800,562 17,940
Expenditures:
Community development 3,781,422 3,781,422 3,758,173 23,249
Capital outlay 1,200 1,200 - 1,200
Total expenditures 3,782,622 3,782,622 3,758,173 24,449
Excess of revenues over expenditures - - 42,389 42,389
Fund balance-beginning 2,446,200 2,446,200 2,446,199 (1)
Fund balance-ending $ 2,446,200 $ 2,446,200 $ 2,488,588 $ 42,388
67 _
EXHIBIT C-5
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -HOME INVESTMENT PARTNERSHIP AGREEMENT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 552,275 $ 552,275 $ 552,275 $ -
Miscellaneous revenue - - 2,800 2,800
Total revenues 552,275 552,275 555,075 2,800
Expenditures:
Community development 552,275 994,567 379,758 614,809
Total expenditures 552,275 994,567 379,758 614,809
Excess of revenues over(under)expenditures - (442,292) 175,317 617,609
Fund balance-beginning 563,859 563,859 563,859 -
Fund balance-ending $ 563,859 $ 121,567 $ 739,176 $ 617,609
68
EXHIBIT C-6
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -HOTEL/MOTEL TAX FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 1,455,000 $ 1,545,406 $ 1,545,407 $ 1
Total revenues 1,455,000 1,545,406 1,545,407 1
Expenditures:
Administrative services 85,525 85,525 85,523 2
Total expenditures 85,525 85,525 85,523 2
Excess of revenues over expenditures 1,369,475 1,459,881 1,459,884 3
Other financing sources(uses):
Transfers out (1,369,475) (1,459,881) (1,459,883) (2)
Total other financing sources(uses) (1,369,475) (1,459,881) (1,459,883) (2)
Excess of revenues and other sources
over(under)expenditures and other uses - - 1 1
Fund balance-beginning 59,408 59,408 59,408 -
Fund balance-ending $ 59,408 $ 59,408 $ 59,409 $ 1
69
EXHIBIT C-7
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -GOLF FUND
FOR THE YEAR ENDED SEPTEMBER 30,2011
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ 750,000 $ 750,000 $ 457,478 $ (292,522)
Miscellaneous revenue - - 253,002 253,002
Total revenues 750,000 750,000 710,480 (39,520)
Expenditures:
Administrative services 937,000 937,000 888,412 48,588
Total expenditures 937,000 937,000 888,412 48,588
Excess of revenues over(under)expenditures (187,000) (187,000) (177,932) 9,068
Other financing sources(uses):
Transfers in 187,000 187,000 177,933. (9,067)
Total other financing sources(uses) 187,000 187,000 177,933 (9,067)
Excess of revenues and other sources
over(under)expenditures and other uses - - 1 1
Fund balance-beginning 31,780 31,780 31,780 -
Fund balance-ending $ 31,780 $ 31,780 $ 31,781 $ 1
70
EXHIBIT C-8
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -MPEC FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ 199,367 $ 190,667 $ 174,788 $ (15,879)
Contributions - 200,000 200,000 -
Miscellaneous revenue 1,722,663 1,451,976 1,469,782 17,806
Total revenues 1,922,030 1,842,643 1,844,570 1,927
Expenditures:
MPEC 3,281,293 3,937,737 3,436,052 501,685
Capital outlay - 145,762 145,759 3
Total expenditures 3,281,293 4,083,499 3,581,811 501,688
Excess of revenues over(under)expenditures (1,359,263) (2,240,856) (1,737,241) 503,615
Other financing sources(uses):
Transfers in 1,359,263 1,503,722 1,501,794 (1,928)
Total other financing sources(uses) 1,359,263 1,503,722 1,501,794 (1,928)
Excess of revenues and other sources
over(under)expenditures and other uses - (737,134) (235,447) 501,687
Fund balance-beginning 705,051 705,051 705,051 -
Fund balance-ending $ 705,051 $ (32,083) $ 469,604 $ 501,687
71
EXHIBIT C-9
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 590,228 $ 590,228 $ 591,560 $ 1,332
Contributions 3,327,345 3,327,345 2,095,802 (1,231,543)
Miscellaneous revenue - - 575 575
Total revenues 3,917,573 3,917,573 2,687,937 (1,229,636)
Expenditures:
Debtservice-principal 2,115,000 2,115,000 2,115,000 -
Debt service-interest and paying agent fees 1,927,573 1,927,573 1,927,370 203
Total expenditures 4,042,573 4,042,573 4,042,370 203
Excess of revenues over(under)expenditures (125,000) (125,000) (1,354,433) (1,229,433)
Other financing sources(uses):
Transfers in - - 1,231,541 1,231,541
Total other financing sources(uses) - - 1,231,541 1,231,541
Excess of revenues and other sources
over(under)expenditures and other uses (125,000) (125,000) (122,892) 2,108
Fund balance-beginning 313,439 313,439 313,439 -
Fund balance-ending $ 188,439 $ 188,439 $ 190,547 $ 2,108
72
Nonmajor Enterprise Funds
Nonmajor 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.
Municipal Airport Fund
The Municipal Airport Fund was established to account for the operating revenues and
expenses of the Wichita Falls Municipal Airport. The airport is operated on land leased from
the Department of Defense. Commercial and private aviation share airport facilities and
runways owned by Sheppard Air Force Base.
Kickapoo Airport Fund
During the year ended September 30, 2000, the City acquired Kickapoo Downtown Airport, a
private airport. The Kickapoo Airport Fund was established to account for the operating
revenues and expenses of the airport.
Transit Fund
The Transit Fund accounts for the operation of the Wichita Falls transit system. This system
is supported from passenger fees, subsidies from the General Fund and subsidies from the
Federal Transit Administration.
Stormwater Drainage Fund
The Stormwater Drainage Fund was established to account for operating revenues and
expenses associated with the Storm Water Drainage Utility System (System). The System
was established effective May 1, 2001 and provides a funding mechanism for drainage
improvements in the City.
Waterpark Fund
The Waterpark Fund was established to account for the operating revenues and expenses of
the Castaway Cove Waterpark. The waterpark was purchased on February 4, 2010.
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2011
Municipal Kickapoo
Airport Airport
ASSETS
Current assets:
Cash and cash equivalents $ 467,663 $ 151,590
Restricted cash and cash equivalents 268,617 -
Receivables(net of allowance for
uncollectible accounts):
Customer and trade - -
Government agencies - -
Other 17,574 61,241
Inventory - 52,667
Prepaid items 1,373 4,061
Total current assets 755,227 269,559
Capital assets, net of accumulated depreciation 6,864,888 9,712,986
Total assets 7,620,115 9,982,545
LIABILITIES
Current liabilities payable from current assets:
Accounts payable-trade 137,935 50,812
Accrued payroll 3,144 6,248
Accrued vacation and sick leave 2,564 8,135
Payable to other City funds - -
Payable to government agencies 14,084 92
Other liabilities 21,317 507
Total current liabilities payable
from current assets 179,044 65,794
Net assets:
Invested in capital assets 6,864,888 9,712,986
Unrestricted 576,183 203,765
Total net assets $ 7,441,071 $ 9,916,751
73
EXHIBIT D-1
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Waterpark Funds
$ - $ 3,441,340 $ 642,655- $ 4,703,248
- - 268,617
- 272,082 - 272,082
240,287 - - 240,287
- - 78,815
- - 52,667
- - - 5,434
240,287 3,713,422 642,655 5,621,150
719,494 14,727,749 3,572,742 35,597,859
959,781 18,441,171 4,215,397 41,219,009
2,915 110,753 - 302,415
19,124 2,195 1,381 32,092
16,878 4,530 3,559 35,666
71,314 - - 71,314
- - 4,347 18,523
261 52,794 - 74,879
110,492 170,272 9,287 534,889
719,494 14,727,749 3,572,742 35,597,859
129,795 3,543,150 633,368 5,086,261
$ 849,289 $ 18,270,899 $ 4,206,110 $ 40,684,120
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Municipal Kickapoo
Airport Airport
Operating revenues:
Charges for services $ - $ -
Rents, concessions and other 681,639 988,457
Total operating revenues 681,639 988,457
Operating expenses:
Personnel services 115,331 194,557
Supplies and materials 6,062 613,565
Maintenance and repairs 35,305 17,160
Utilities and other services 66,694 89,585
Insurance and contract support 7,799 8,927
Other expenses 92,329 37,164
Depreciation and amortization 164,002 322,535
Total operating expenses 487,522 1,283,493
Operating income (loss) 194,117 (295,036)
Nonoperating revenues (expenses):
Interest income 1,112 165
Loss on sale of capital assets - -
Intergovernmental operating grants - -
Total nonoperating revenues (expenses) 1,112 165
Income(loss) before contributions and transfers 195,229 (294,871)
Capital contributions - -
Transfers in 765,034 1,050,263
Transfers out (326,766) -
Net transfers 438,268 1,050,263
Net income (loss) 633,497 755,392
Net assets- beginning 6,807,574 9,161,359
Net assets-ending $ 7,441,071 $ 9,916,751
74
EXHIBIT D-2
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Waterpark Funds
$ 367,374 $ 2,485,346 $ 1,207,101 $ 4,059,821
- - 426,054 2,096,150
367,374 2,485,346 1,633,155 6,155,971
882,748 122,674 453,655 1,768,965
370,254 4,433 223,948 1,218,262
192,605 39,182 40,506 324,758
256,782 191,617 421,113 1,025,791
4,794 100 48,455 70,075
60,469 13,233 25,481 228,676
25,607 162,054 185,065 859,263
1,793,259 533,293 1,398,223 5,495,790
(1,425,885) 1,952,053 234,932 660,181
- 3,862 84 5,223
- (112,594) - (112,594)
1,323,581 - - 1,323,581
1,323,581 (108,732) 84 1,216,210
(102,304) 1,843,321 235,016 1,876,391
111,224 - - 111,224
286,728 420,780 66,460 2,589,265
- (449,553) - (776,319)
397,952 (28,773) 66,460 1,924,170
295,648 1,814,548 301,476 3,800,561
553,641 16,456,351 3,904,634 36,883,559
$ 849,289 $ 18,270,899 $ 4,206,110 $ 40,684,120
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Municipal Kickapoo
Airport Airport
Cash flows from operating activities:
Receipts from customers and users $ 687,872 $ 953,242
Payments to suppliers (113,518) (795,593)
Payments to employees (88,770) (141,403)
Net cash provided (used) by operating activities 485,584 16,246
Cash flows from noncapital financing activities:
Intergovernmental operating grants - -
Interfund loan repaid - -
Transfers out to other funds (326,766) -
Transfers from other funds 765,034 1,050,263
Net cash provided by noncapital financing activities 438,268 1,050,263
Cash flows from capital and related
financing activities:
Capital contributions - -
Acquisition and construction of capital assets (1,003,615) (1,050,263)
Net cash used for capital and related
financing activities (1,003,615) (1,050,263)
Cash flows from investing activities:
Interest on investments 1,112 165
Net cash provided by investing activities 1,112 165
Net Increase(Decrease) in Cash and Cash Equivalents (78,651) 16,411
Cash and Cash Equivalents-Beginning 814,931 135,179
Cash and Cash Equivalents-Ending $ 736,280 $ 151,590
75
EXHIBIT D-3
(Page 1 of 2)
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Waterpark Funds
$ 367,374 $ 2,348,146 $ 1,633,155 $ 5,989,789
(1,102,557) (340,766) (835,468) (3,187,902)
(699,671) (96,636) (395,964) (1,422,444)
(1,434,854) 1,910,744 401,723 1,379,443
1,399,999 - - 1,399,999
(192,864) - - (192,864)
- (449,553) - (776,319)
286,728 420,780 66,460 2,589,265
1,493,863 (28,773) 66,460 3,020,081
111,224 - - 111,224
(170,233) (1,318,135) (66,460) (3,608,706)
(59,009) (1,318,135) (66,460) (3,497,482)
- 3,862 84 5,223
- 3,862 84 5,223
- 567,698 401,807 907,265
- 2,873,642 240,848 4,064,600
$ - $ 3,441,340 $ 642,655 $ 4,971,865
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS (CONT-D.)
NONMAJOR ENTERPRISE FUNDS -
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Municipal Kickapoo
Airport Airport
Cash flows from operating activities:
Operating income(loss) $ 194,117 $ (295,036)
Adjustments to reconcile operating income (loss)
to net cash provided by(used in)operating
activities:
Depreciation and amortization 164,002 322,535
(Increase) decrease in current assets:
Receivables:
Customer and trade - -
Other 6,233 (35,215)
Inventory - (17,522)
Prepaid items 2,462 (1,504)_
Increase (decrease) in current liabilities:
Accounts payable-trade 98,664 46,535
Accrued payroll (2,565) (2,925)
Accrued vacation and sick leave 1,280 (662)
Payable to government agencies 74 40
Other liabilities 21,317 -
Total adjustments 291,467 311,282
Net cash provided by(used in)
operating activities $ 485,584 $ 16,246
76
EXHIBIT D-3
(Page 2 of 2)
Stormwater
Transit Drainage Waterpark Totals
$(1,425,885) $ 1,952,053 $ 234,932 $ 660,181
25,607 162,054 185,065 859,263
(137,200) - (137,200)
- - - (28,982)
- - (17,522)
- 958
(11,691) (92,752) - 40,756
(22,526) (3,775) (4,893) (36,684)
2,549 1,225 4,392
- - 1,842 1,956
(359) 27,815 (16,448) 32,325
(8,969) (41,309) 166,791 719,262
$(1,434,854) $ 1,910,744 $ 401,723 $ 1,379,443
Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the City on a cost-reimbursement
basis.
Fleet Maintenance Fund
The Fleet Maintenance Fund accounts for the costs associated with the operation,
maintenance and replacement of the City's vehicle and equipment fleet. City departments
which use the vehicles and equipment are charged a monthly rental fee based upon actual
operating costs associated with each class of vehicle or equipment.
Duplicating Services Fund
The Duplicating Services Fund accounts for the costs associated with the operation and
maintenance of the City's duplicating equipment. City departments which use the duplicating
services are charged a fee based upon actual usage.
Employee Benefit Trust Fund
The Employee Benefit Trust Fund is used to account for and administer group health
insurance, which is self-insured by the City, and life insurance for employees and covered
dependents.
Information Technology Fund
The Information Technology Fund accounts for the costs associated with the operation and
maintenance of the City's Information Technology assets. City departments which use
information technology are charged a fee based on usage.
EXHIBIT E-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30,2011
Employee Information
Fleet Duplicating Benefit Technology
Maintenance Services Trust Fund Totals
ASSETS
Current assets:
Cash and cash equivalents $ 746,246 $ - $ 1,922,107 $ 195,000 $ 2,863,353
Restricted cash and cash equivalents - - 1,048,370 - 1,048,370
Receivables:
Other 27,302 - 13,207 - 40,509
Inventory 761,664 11,209 - - 772,873
Prepaid items - 652 - - 652
Total current assets 1,535,212 11,861 2,983,684 195,000 4,725,757
Capital assets, net of accumulated depreciation 19,552,198 4,750 - - 19,556,948
Total assets 21,087,410 16,611 2,983,684 195,000 24,282,705
LIABILITIES
Current liabilities:
Accounts payable-trade 179,247 3,616 85,000 - 267,863
Accrued payroll 33,169 670 1,627 - 35,466
Accrued vacation and sick leave 82,027 1,732 - - 83,759
Payable to other City funds - 46,409 - - 46,409
Estimated health claims payable - - 744,982 - 744,982
Other liabilities 5,703 - - - 5,703
Capital leases-current maturities 183,156 - - - 183,156
Total current liabilities 483,302 52,427 831,609 - 1,367,338
Long-term liabilities:
Capital leases, less current maturities 188,540 - - - 188,540
Total liabilities 671,842 52,427 831,609 - 1,555,878
NET ASSETS
Invested in capital assets 19,180,502 4,750 - - 19,185,252
Unrestricted 1,235,066 (40,566) 2,152,075 195,000 3,541,575
Total net assets $ 20,415,568 $ (35,816) $ 2,152,075 $ 195,000 $ 22,726,827
77
EXHIBIT E-2
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Employee Information
Fleet Duplicating Benefit Technology
Maintenance Services Trust Fund Totals
Operating revenues:
Charges for services $ 8,958,909 $ 152,786 $ 15,057 $ - $ 9,126,752
Rents,concessions and other 23,696 - 498,096 - 521,792
Contributions - - 9,676,625 - 9,676,625
Total operating revenues 8,982,605 152,786 10,189,778 - 19,325,169
Operating expenses:
Personnel services 1,789,305 80,570 96,899 - 1,966,774
Supplies and materials 3,892,816 14,418 8,844 - 3,916,078
Maintenance and repairs 1,647,320 37 2,689 - 1,650,046
Utilities and other services 96,232 1,575 62,857 - 160,664
Insurance and contract support 58,385 - 9,515,585 - 9,573,970
Other expenses 193,955 133,805 841,175 - 1,168,935
Depreciation and amortization 3,976,381 6,142 69 - 3,982,592
Total operating expenses 11,654,394 236,547 10,528,118 - 22,419,059
Operating income(loss) (2,671,789) (83,761) (338,340) - (3,093,890)
Nonoperating revenues(expenses):
Interest expense (16,159) - (34,015) - (50,174)
Gain on sale of capital assets 105,146 (35,861) (414) - 68,871
Total nonoperating revenues
(expenses) 88,987 (35,861) (34,429) - 18,697
Income(loss)before transfers (2,582,802) (119,622) (372,769) - (3,075,193)
Transfers:
Transfers in 1,534,014 - - 195,000 1,729,014
Transfers out (312,000) - - - (312,000)
Total transfers 1,222,014 - - 195,000 1,417,014
Net income(loss) (1,360,788) (119,622) (372,769) 195,000 (1,658,179)
Net assets-beginning 21,776,356 83,806 2,524,844 - 24,385,006
Net assets-ending $ 20,415,568 $ (35,816) $ 2,152,075 $ 195,000 $ 22,726,827
78
EXHIBIT E-3
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2011
Employee Information
Fleet Duplicating Benefit Technology
Maintenance Services Trust Fund Totals
Cash flows from operating activities:
Received from customers and users $ 9,012,205 $ 152,786 $ 10,197,732 $ $ 19,362,723
Payments to suppliers (6,401,993) (167,989) (10,239,416) (16,809,398)
Payments to employees (1,365,870) (61,363) (74,164) (1,501,397)
Net cash provided(used)by operating activities 1,244,342 (76,566) (115,848) - 1,051,928
Cash flows from noncapital financing activities:
Interfund loans received - 46,409 - 46,409
Transfers in from other funds 1,534,014 - - 195,000 1,729,014
Transfers out to other funds (312,000) - - - (312,000)
Net cash provided(used)by noncapital financing activities 1,222,014 46,409 - 995,000 1,463,423
Cash flows from capital and related
financing activities:
Acquisition of capital assets (2,496,351) - - - (2,496,351)
Proceeds from sale of capital assets 137,546 - - 137,546
Principal paid on long-term debt (177,925) - - - (177,925)
Interest and fees paid on long-term debt (16,159) - (34,015) - (50,174)
Net cash used for capital and
related financing activities (2,552,889) - (34,015) - (2,586,904)
Net Increase(Decrease)in Cash and Cash Equivalents (86,533) (30,157) (149,863) 195,000 (71,553)
Cash and Cash Equivalents-Beginning 832,779 30,157 3,120,340 - 3,983,276
Cash and Cash Equivalents-Ending $ 746,246 $ - $ 2,970,477 $ 195,000 $ 3,911,723
Cash flows from operating activities:
Operating income(loss) $ (2,671,789) $ (83,761) $ (338,340) $ - $ (3,093,890)
Adjustments to reconcile operating income to net
cash provided(used)by operating activities:
Depreciation and amortization 3,976,381 6,142 69 3,982,592
Other 28,663 - 7,954 36,617
Inventory (54,441) 2,582 - (51,859)
Prepaid items - 4,696 - - 4,696
Increase(decrease)in current liabilities:
Accounts payable-trade 11,047 (2,051) (6,459) - 2,537
Accrued payroll (56,176) (3,194) (3,257) - (62,627)
Accrued vacation and sick leave 9,720 (980) - - 8,740
Estimated health claims payable - - 224,185 - 224,185
Other liabilities 937 - - - 937
Total adjustments 3,916,131 7,195 222,492 - 4,145,818
Net cash provided(used)by
operating activities $ 1,244,342 $ (76,566) $ (115,848) $ - $ 1,051,928
79
Agency Fund
Escheatment Fund - The agency fund is used to account for assets held by the City of Wichita
Falls in a custodial capacity. The assets in this fund have been abandoned or remain unclaimed
pending escheatment to the State of Texas.
EXHIBIT F-1
CITY OF WICHITA FALLS, TEXAS
AGENCYFUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Balance Balance
10/1/2010 Additions Deductions 9/30/2011
ESCHEATMENT FUND
Assets
Cash and cash equivalents $ 300,715 $ 41,027 $ 214,912 $ 126,830
Liabilities
Other liabilities $ 300,715 $ 41,027 $ 214,912 $ 126,830
80
Component Units
Discretely Presented Component Units of the City of Wichita Falls are legally separate entities;
however, the City is considered to be financially accountable for their operations. The four
discretely presented component units are as follows:
Wichita Falls Economic Development Corporation
The Wichita Falls Economic Development Corporation is a nonprofit corporation formed in
May 1997 for the purpose of increasing employment opportunities, primarily through assisting
qualified enterprises with funds provided by a portion of the local sales tax. The Corporation
operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A.
Wichita Falls 4B Sales Tax Corporation
The Wichita Falls 4B Sales Tax.Corporation is a nonprofit corporation formed in May 1997 for
the purpose of increasing employment opportunities and for public improvement projects such
as parks, auditoriums, learning centers, open space improvements, athletic and exhibition
facilities and the related maintenance and operating costs of such projects. These projects
are funded by a portion of the local sales tax. The Corporation operates under the authority of
Vernon's Civil Statutes, Article 5190.6, Section 4B.
Wichita Falls Reinvestment Zone#2
The Wichita Falls Reinvestment Zone #2 was created in August 2005 by the City, with the
advice and consent of the Wichita Falls Independent School District and Wichita County. The
purpose of the Wichita Falls Reinvestment Zone#2 is to capture increments of growth in real
property values in the designated zone area from base values established in January 2004
and use the ad valorem taxes derived from the increments to contribute to the zoned area.
Tax funds derived from the increment can only be spent for public improvements in the zoned
area or for payment of debt service on bonds issued to provide funds for public
improvements.
Wichita Falls Reinvestment Zone#3
The Wichita Falls Reinvestment Zone#3 was created in September 2009 by the City, with the
advice and consent of the Wichita Falls Independent School District and Wichita County. The
purpose of the Wichita Falls Reinvestment.Zone#3 is to capture increments of growth in real
property values in the designated zone area from base values established in January 2009
and use the ad valorem taxes derived from the increments to contribute to the zoned area.
Tax funds derived from the increment can only be spent for public improvements in the zoned
area or for payment of debt service on bonds issued to provide funds for public
improvements.
EXHIBIT G-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
COMPONENT UNITS
SEPTEMBER 30,2011
Wichita Falls
Economic Wichita Falls Wichita Falls Wichita Falls
Development 413 Sales Tax Reinvestment Reinvestment
Corporation Corporation Zone#2 Zone#3 Totals
Assets
Cash and cash equivalents $13,869,755 $ 1,433,208 $ - $ 66,978 $15,369,941
Receivables:
Government agencies 619,114 619,114 - 6,255 1,244,483
Prepaid items - 54,423 - - 54,423
Capital assets,net of accumulated depreciation 2,321,697 - - - 2,321,697
Total assets 16,810,566 2,106,745 - 73,233 18,990,544
Liabilities
Accounts payable-trade 581,005 20,249 - - 601,254
Total liabilities 581,005 20,249 - - 601,254
Net assets
Investment in capital assets, net of related debt 2,321,697 - - - 2,321,697
Unrestricted 13,907,864 2,086,496 - 73,233 16,067,593
Total net assets $16,229,561 $ 2,086,496 $ - $ 73,233 $18,389,290
81
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30,2011
Program Revenue
Operating
Charges for Grants and
Expenses Services Contributions
Community development
Wichita Falls Economic Development Corporation $ 5,495,089 $ 106,800 $ -
Wichita Falls 413 Sales Tax Corporation 4,969,746 - 319,650
Wichita Falls Reinvestment Zone#2 319,650 - -
Wichita Falls Reinvestment Zone#3 - - -
Total component units $ 10,784,485 $ 106,800 $ 319,650
General revenues:
Taxes:
Property tax
Sales tax
Investment earnings
Miscellaneous
Total general revenues
Change in net assets
Net assets-beginning
Net assets-ending
82
EXHIBIT G-2
Net(Expense) Revenue and
Changes in Net Assets
Wichita Falls
Economic Wichita Falls Wichita Falls Wichita Falls
Development 413 Sales Tax Reinvestment Reinvestment
Corporation Corporation Zone#2 Zone#3 Totals
$ (5,388,289) $ - $ - $ - $ (5,388,289)
(4,650,096) - - (4,650,096)
(319,650) - (319,650)
(5,388,289) (4,650,096) (319,650) - (10,358,035)
- - 319,612 37,647 357,259
3,513,832 3,513,832 - - 7,027,664
18,393 4,896 38 46 23,373
29,880 - - - 29,880
3,562,105 3,518,728 319,650 37,693 7,438,176
(1,826,184) (1,131,368) - 37,693 (2,919,859)
18,055,745 3,217,864 - 35,540 21,309,149
$ 16,229,561 $ 2,086,496 $ - $ 73,233 $ 18,389,290
Supporting Schedules
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES
SEPTEMBER 30,2011
Fiscal Year General Obligation Bonds Combination Tax and Revenue Bonds
Ending Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds
September 30, Maturities on Bonds and Interest Maturities(1) on Bonds and Interest
2012 $ 355,000 $ 227,113 $ 582,113 $ 6,064,359 $ 2,259,045 $ 8,323,404
2013 370,000 210,694 580,694 4,961,732 2,046,508 7,008,240
2014 385,000 193,581 578,581 5,017,477 1,874,260 6,891,737
2015 405,000 175,775 580,775 5,191,817 1,696,068 6,887,885
2016 425,000 154,512 579,512 5,378,922 1,505,992 6,884,914
2017 450,000 132,200 582,200 5,693,748 1,303,911 6,997,659
2018 475,000 108,013 583,013 5,864,985 1,115,826 6,980,811
2019 500,000 82,481 582,481 1,919,725 918,086 2,837,811
2020 530,000 55,606 585,606 2,002,410 835,234 2,837,644
2021 555,000 28,444 583,444 2,089,945 746,359 2,836,304
2022 - - - 2,187,350 652,881 2,840,231
2023 - 2,294,222 546,622 2,840,844
2024 - 2,400,925 434,027 2,834,952
2025 - 2,522,469 314,681 2,837,150
2026 - 2,248,832 199,442 2,448,274
2027 - 710,000 88,856 798,856
2028 - 745,000 54,744 799,744
2029 - - - 780,000 18,525 798,525
$ 4,450,000 $ 1,368,419 $ 5,818,419 $ 58,073,918 $ 16,611,067 $ 74,684,985
(1)Includes amortization of bond premium of$1,313,918.
(2)Includes amortization of bond premium of$1,112,778.
83
EXHIBIT H-1
Water and Sewer Priority Lien Revenue Bonds Totals-All Bonded Debt
Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds
Maturities(2) on Bonds and Interest Maturities on Bonds and Interest
$ 1,982,897 $ 4,502,178 $ 6,485,075 $ 8,402,256 $ 6,988,336 $ 15,390,592
3,431,663 4,412,262 7,843,925 8,763,395 6,669,464 15,432,859
3,563,431 4,282,494 7,845,925 8,965,908 6,350,335 15,316,243
3,709,980 4,138,895 7,848,875 9,306,797 6,010,738 15,317,535
3,861,351 3,989,099 7,850,450 9,665,273 5,649,603 15,314,876
4,007,536 3,832,902 7,840,438 10,151,284 5,269,013 15,420,297
4,178,541 3,670,509 7,849,050 10,518,526 4,894,348 15,412,874
8,224,396 3,511,054 11,735,450 10,644,121 4,511,621 15,155,742
8,575,823 3,163,502 11,739,325 11,108,233 4,054,342 15,162,575
8,951,741 2,790,084 11,741,825 11,596,686 3,564,887 15,161,573
9,337,675 2,399,324 11,736,999 11,525,025 3,052,205 14,577,230
9,748,174 1,991,226 11,739,400 12,042,396 2,537,848 14,580,244
10,177,748 1,565,152 11,742,900 12,578,673 1,999,179 14,577,852
10,621,792 1,119,808 11,741,600 13,144,261 1,434,489 14,578,750
11,085,785 654,040 11,739,825 13,334,617 853,482 14,188,099
3,819,245 167,430 3,986,675 4,529,245 256,286 4,785,531
- - - 745,000 54,744 799,744
- - - 780,000 18,525 798,525
$ 105,277,778 $ 46,189,959 $ 151,467,737 $ 167,801,696 $ 64,169,445 $ 231,971,141
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30,2011
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
General Obligation and Construction 3.75,3.85,4.00,4.125 03/01/01 09/01/21 175,000 (2002)
Refunding Bonds,Series 2001 4.25,4.375,4.625,5.00 415,000 (2003)
5.125,5.25,5.375 435,000 (2004)
(311,911) 445,000 (2005)
465,000 (2006)
880,000 (2007)
910,000 (2008)
945,000 (2009)
745,000 (2010)
340,000 (Ml1)
355,000 (2012)
370,000 (2013)
385,000 (2014)
405,000 (2015)
425,000 (2016)
450,000 (2017)
475,000 (2018)
500,000 (2019)
530,000 (2020)
555,000 (2021)
Total General Obligation Bonds
Combination Tax and Revenue Bonds:
Combination Tax and Revenue 3.00,3.10,3.30,3.40 11/15/03 09/01/18 740,000 (2004)
Certificates of Obligation, 3.55,3.65,3.75,3.90, 715,000 (2005)
Series 2003 4.00 735,000 (2006)
(3/1,9/1) 755,000 (2007)
775,000 (2008)
380,000 (2009)
390,000 (2010)
405,000 (2011)
420,000 (2012)
435,000 (2013)
335,000 (2014)
345,000 (2015)
360,000 (2016)
375,000 (2017)
385,000 (2018)
84
EXHIBIT H-2
(Page 1 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
$ 10,205,000 $ 10,205,000 $ 5,755,000 $ 4,450,000
10,205,000 10,205,000 5,755,000 4,450,000
7,550,000 7,550,000 4,895,000 2,655,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT-D.)
SEPTEMBER 30, 2011
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Combination Tax and Revenue 2.00,2.25,2.75,3.50, 09/01/04 08/01/12 685,000 (2005)
Refunding Bonds, 4.00,5.00 640,000 (2006)
Series 2004 (2/1,8/1) 650,000 (2007)
3,115,000 (2008)
3,230,000 (2009)
3,375,000 (2010)
3,500,000 (2011)
3,645,000 (2012)
Combination Tax and
Revenue Refunding
Bonds,Series 2004-Premium
Combination Tax and Revenue 4.90,5.00 09/01/05 08/01/16 115,000 (2005)
Refunding Bonds, (2/1,8/1) 2,055,000 (2006)
Series 2005 2,150,000 (2007)
2,210,000 (2013)
2,350,000 (2014)
2,490,000 (2015)
2,650,000 (2016)
Combination Tax and
Revenue Refunding
Bonds,Series 2005-Premium
Combination Tax and Revenue 3.55,3.60,3.90,4.00 11/15/06 09/01/26 705,000(2007)
Certificates of Obligation, 4.10,4.20,4.25,5.00 580,000(2008)
Series 2006A (3/1,9/1) 605,000(2009)
625,000(2010)
650,000(2011)
680,000(2012)
705,000(2013)
735,000(2014)
760,000(2015)
795,000(2016)
825,000(2017)
855,000(2018)
890,000(2019)
930,000(2020)
965,000(2021)
1,010,000(2022)
1,060,000(2023)
1,110,000(2024)
1,165,000(2025)
1,225,000(2026)
Combination Tax and
Revenue Certificates of
Obligation,Series 2006A-Premium
85
EXHIBIT H-2
(Page 2 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
18,840,000 18,840,000 15,195,000 3,645,000
- 1,060,889 1,017,179 43,710
14,020,000 14,020,000 4,320,000 9,700,000
- 1,050,891 692,962 357,929
16,875,000 16,875,000 3,165,000 13,710,000
448,769 165,441 283,328
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT-D.)
SEPTEMBER 30,2011
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Combination Tax and Revenue 5.20,5.30,6.00,6.25 11/15/06 09/01/26 170,000(2007)
Certificates of Obligation, (3/1,9/1) 130,000(2008)
Series 2006E 135,000(2009)
140,000(2010)
150,000(2011)
155,000(2012)
165,000(2013)
175,000(2014)
185,000(2015)
190,000(2016)
205,000(2017)
215,000(2018)
230,000(2019)
240,000(2020)
255,000(2021)
270,000(2022)
290,000(2023)
305,000(2024)
325,000(2025)
345,000(2026)
Combination Tax and
Revenue Certificates of
Obligation,Series 2006E-Premium
Combination Tax and Revenue 2.25,2.50,2.75,3.00, 01/15/09 10/01/28 340,000(2010)
Certificates of Obligation, 3.25,3.50,4.00,4.125, 405,000(2011)
Series 2009 4.25,4.50,4.625,4.75 415,000(2012)
(4/1, 10/1) 425,000(2013)
435,000(2014)
450,000(2015)
460,000(2016)
475,000(2017)
490,000(2018)
505,000(2019)
525,000(2020)
550,000(2021)
570,000(2022)
595,000(2023)
620,000(2024)
650,000(2025)
675,000(2026)
710,000(2027)
745,000(2028)
780,000(2029)
86
EXHIBIT H-2
(Page 3 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
4,275,000 4,275,000 725,000 3,550,000
- 103,279 37,445 65,834
10,820,000 10,820,000 745,000 10,075,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT-D.)
SEPTEMBER 30,2011
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Combination Tax and Revenue 5.60(2/1,8/1) 01/01/10 02/01/25 165,000(2011)
Certificates of Obligation, 185,000(2012)
Series 2010 195,000(2013)
205,000(2014)
215,000(2015)
230,000(2016)
240,000(2017)
255,000(2018)
270,000(2019)
285,000(2020)
300,000(2021)
320,000(2022)
335,000(2023)
355,000(2024)
375,000(2025)
Combination Tax and Revenue 2.00,3.00,3.50,4.00 05/01/10 08/01/18 170,000(2010)
Refunding Bonds,Series 2010 (2/1,8/1) 285,000(2012)
595,000(2013)
580,000(2014)
575,000(2015)
555,000(2016)
3,470,000(2017)
3,600,000(2018)
Combination Tax and Revenue
Refunding Bonds,Series 2010-
Premium
Total Combination Tax and Revenue Bonds
Water and Sewer System 3.75,4.00,4.375,4.50 09/01/01 08/01/12 1,665,000 (2002)
Priority Lien Revenue 5.00,5.10,5.375 1,220,000 (2003)
Bonds,Series 2001 (2/1,8/1) 1,265,000 (2004)
1,320,000 (2005)
1,365,000 (2006)
1,430,000 (2007)
1,360,000 (2008)
1,419,000 (2009)
1,490,000 (2010)
1,545,000 (2011)
1,615,000 (2012)
Water and Sewer System
Priority Lien Revenue
Bonds,Series 2001 -Premium
87
EXHIBIT H-2
(Page 4 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
3,930,000 3,930,000 165,000 3,765,000
9,830,000 9,830,000 170,000 9,660,000
- 685,333 122,215 563,118
86,140,000 89,489,161 31,415,242 58,073,919
118,770,000 118,770,000 117,155,000 1,615,000
- 1,634,193 826,799 807,394
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT-D.)
SEPTEMBER 30,2011
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Water and Sewer System 4.00,4.25,4.375,4.50 02/01/07 08/01/27 225,000 (2008)
Priority Lien Refunding Revenue (2/1,8/1) 230,000 (2009)
Bonds,Series 2007 240,000 (2010)
250,000 (2011)
260,000 (2012)
3,325,000 (2013)
3,460,000 (2014)
3,610,000 (2015)
3,765,000 (2016)
3,915,000 (2017)
4,090,000 (2018)
8,140,000 (2019)
8,500,000 (2020)
8,885,000 (2021)
9,280,000 (2022)
9,700,000 (2023)
10,140,000 (2024)
10,595,000 (2025)
11,070,000 (2026)
3,815,000 (2027)
Water and Sewer System
Priority Lien Refunding Revenue
Bonds,Series 2007-Premium
Total Priority Lien Revenue Bonds
Total All Bonds
88
EXHIBIT H-2
(Page 5 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
103,495,000 103,495,000 945,000 102,550,000
- 437,938 132,555 305,383
222,265,000 224,337,131 119,059,354 105,277,777
$ 318,610,000 $ 324,031,292 $ 156,229,596 $ 167,801,696
EXHIBIT H-3
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE COVERAGE-REVENUE BONDS
SEPTEMBER 30,2011
Water and Sewer Revenue Bonds:
Change in net assets(Exhibit A-8) $ 6,887,266
Add:
Depreciation and amortization $ 5,508,066
Interest expense and paying agent fees 5,789,281
Transfers out 1,347,214 12,644,561
Subtract:
West Texas Utilities water revenues 595,273
Gain (loss)on sale/abandonment of capital assets (33,869)
Capital contributions from developers 81,396
Transfers in 1,183,948 (1,826,748)
Net earnings for determining debt service coverage $17,705,079
Priority Subordinate
Lien Bonds Lien Bonds
Net earnings for determining debt service coverage $17,705,079
Principal and interest requirements to maturity $ 151,467,737 $ -
Number of years remaining to pay bonds 16 N/A
Average annual principal and interest requirement 9,466,734 N/A
Minimum bond covenant debt service coverage 1.25 1.10
Minimum debt service coverage requirement $ 11,833,417 $ - 11,833,417
Excess over debt service coverage requirements $ 5,871,662
89
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
SEPTEMBER 30,2011
Buildings Machinery
Land and and and
Betterments Improvements Equipment
Administrative services:
Mayor and City Council $ $ - $ -
City Manager 265,898 2,019
Personnel/Risk Management - 7,584
Martin Luther King Center - 786,763 6,206
Library 477,942 4,522,939 440,252
General Public Information - - 285,195
Building Maintenance - 1,076,622 39,072
Nondepartmental 44,080 380,755 70,439
Municipal Court 230,000 316,527 202,396
Legal - - 1,869
City Clerk - 1,411
Homeland security - 802,766
Training Center - - 536,255
Golf course 3,808,375 531,686 45,151
Total administrative services 4,560,397 7,881,190 2,440,615
Police 1,131,749 10,231,506 15,461,438
Fire 194,065 7,079,019 250,214
Parks and recreation:
Recreation 683,155 1,714,368 193,192
Park maintenance 12,085,368 908,781 30,204
Cemetery 131,619 - 9,423
Total parks and recreation 12,900,142 2,623,149 232,819
Accounting/finance:
Accounting/finance - - 1,192
Information Systems 2,093,928
Total accounting/finance 2,095,120
Community development:
Planning 28,465
Inspection - - 7,447
Property management 2,760,061 420,892 29,590
Weed and Seed program - - 7,504
Hazard Mitigation grant 170,800 - -
Total community development 2,930,861 420,892 73,006
Public works:
Engineering 125,806 29,665 124,900
Street maintenance 10,147 100,108 27,915
Infrastructure 1,295,547 - -
Total public works 1,431,500 129,773 152,815
Health:
Administration 34,820 2,878,545 360,926
General City nursing 76,411 1,123 30,958
Environmental health - 8,956 11,042
Lab water pollution - - 31,044
Animal reclaim center 150,737 3,321,311 9,643
Total health 261,968 6,209,935 443,613
Traffic and transportation - 31,045 152,859
Multi-Purpose Events Center 9,560,212 34,068,238 507,719
Wichita Falls Business Park 1,099,507 - -
Total capital assets used in the operation of governmental funds $ 34,070,401 $ 68,674,747 $ 21,810,218
90
EXHIBIT H-4
Motor
Furniture Vehicles
and and Construction
Fixtures Equipment Infrastructure in Progress Totals
$ 5,218 $ $ $ - $ 5,218
13,644 - 281,561
4,660 - 12,244
9,120 - 802,089
89,052 - 5,530,185
3,184 - 288,379
- - 1,115,694
- - 495,274
1,435 - 750,358
- - 1,869
- 1,411
- 802,766
- 536,255
- - 4,385,212
126,313 - 15,008,515
8,760 - 375,700 27,209,153
- - 7,523,298
11,727 - 2,602,442
- - 13,024,353
- - 141,042
11,727 - 15,767,837
- - 1,192
- 2,093,928
- 2,095,120
- 28,465
- 7,447
- 3,210,543
- 7,504
- - 170,800
- 3,424,759
- 280,371
- - 138,170
149,341,779 - 150,637,326
- 149,341,779 - 151,055,867
14,573 - - 3,288,864
- - 108,492
- 19,998
- 31,044
- - 3,481,691
14,573 - - 6,930,089
- 8,976,828 - 9,160,732
28,288 - 57,662 44,222,119
- - - 1,099,507
$ 189,661 $ $ 158,318,607 $ 433,362 $ 283,496,996
EXHIBIT H-5
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED SEPTEMBER 30,2011
Beginning Ending
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Administrative services:
Mayor and City Council $ 5,218 $ $ - $ 5,218
City Manager 281,561 - 281,561
Personnel/Risk Management 12,244 - 12,244
Martin Luther King Center 802,089 - - 802,089
Library 5,574,096 7,102 51,013 5,530,185
General Public Information 288,379 - - 288,379
Building Maintenance 1,115,830 1,017 1,153 1,115,694
Nondepartmental 482,782 105,289 92,797 495,274
Municipal Court 740,883 21,913 12,438 750,358
Legal 1,869 - - 1,869
City Clerk 1,411 - - 1,411
Homeland security 700,971 101,795 - 802,766
Training center 392,220 144,035 - 536,255
Golf course 4,385,212 - - 4,385,212
Total administrative services 14,784,765 381,151 157,401 15,008,515
Police 27,213,728 30,942 35,517 27,209,153
Fire 7,523,298 - - 7,523,298
Parks and recreation:
Recreation 2,566,520 37,150 1,228 2,602,442
Park maintenance 12,981,347 43,006 - 13,024,353
Cemetery 141,042 - 141,042
Total parks and recreation 15,688,909 80,156 1,228 15,767,837
Accounting/finance:
Accounting/finance 1,192 - - 1,192
Information Systems 2,031,145 71,151 8,368 2,093,928
Total accounting/finance 2,032,337 71,151 8,368 2,095,120
Community development:
Planning 28,465 - - 28,465
Inspection 7,447 7,447
Property management 3,210,543 3,210,543
Weed and Seed program 7,504 7,504
Hazard Mitigation Grant 170,800 170,800
Total community development 3,424,759 3,424,759
Public works:
Engineering 280,371 280,371
Street maintenance 136,136 2,034 - 138,170
Infrastructure 147,141,123 4,892,266 1,396,063 150,637,326
Total public works 147,557,630 4,894,300 1,396,063 151,055,867
Health:
Administration 3,266,791 27,811 5,738 3,288,864
General city nursing 111,235 - 2,743 108,492
Environmental health 19,998 - - 19,998
Lab water pollution 21,734 9,310 31,044
Animal reclaim center 2,248,324 1,233,367 - 3,481,691
Total health 5,668,082 1,270,488 8,481 6,930,089
Traffic and transportation 8,432,948 865,453 137,669 9,160,732
Multi-Purpose Events Center 44,076,360 145,759 - 44,222,119
Wichita Falls Business Park 1,099,507 - - 1,099,507
Total capital assets $ 277,502,323 $ 7,739,400 $ 1,744,727 $ 283,496,996
91
EXHIBIT H-6
CITY OF WICHITA FALLS, TEXAS
MUNICIPAL AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Land and betterments $2,239,667 $ 4,989,951 $ - $7,229,618
Buildings and improvements 1,698,058 - - 1,698,058
Machinery and equipment 34,871 - - 34,871
Furniture and fixtures 36,705 - - 36,705
Construction in progress 4,690,417 704,081 4,690,416 704,082
Total capital assets 8,699,718 5,694,032 4,690,416 9,703,334
Accumulated Depreciation:
Land and betterments 1,536,833 131,119 - 1,667,952
Buildings and improvements 1,077,812 28,908 - 1,106,720
Machinery and equipment 24,893 2,222 - 27,115
Furniture and fixtures 34,906 1,753 - 36,659
Total accumulated depreciation 2,674,444 164,002 - 2,838,446
Net capital assets $6,025,274 $ 5,530,030 $4,690,416 $6,864,888
92
EXHIBIT H-7
CITY OF WICHITA FALLS, TEXAS
KICKAPOO AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Land and betterments $6,501,607 $ 25,275 $ - $ 6,526,882
Buildings and improvements 3,259,730 - - 3,259,730
Machinery and equipment 610,925 - - 610,925
Construction in progress 7,192 1,024,988 - 1,032,180
Total capital assets 10,379,454 1,050,263 - 11,429,717
Accumulated Depreciation:
Land and betterments 884,918 183,110 - 1,068,028
Buildings and improvements 338,115 107,336 - 445,451
Machinery and equipment 171,164 32,089 - 203,253
Total accumulated depreciation 1,394,197 322,535 - 1,716,732
Net capital assets $8,985,257 $ 727,728 $ - $ 9,712,985
93
EXHIBIT H-8
CITY OF WICHITA FALLS, TEXAS
TRANSIT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30,2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Land and betterments $ 61,925 $ 98,000 $ - $ 159,925
Buildings and improvements 680,718 - - 680,718
Machinery and equipment 193,985 72,233 3,879 262,339
Total capital assets 936,628 170,233 3,879 1,102,982
Accumulated Depreciation:
Buildings and improvements 216,042 10,456 - 226,498
Machinery and equipment 145,720 15,150 3,879 156,991
Total accumulated depreciation 361,762 25,606 3,879 383,489
Net capital assets $ 574,866 $144,627 $ - $ 719,493
94
EXHIBIT H-9
CITY OF WICHITA FALLS, TEXAS
STORMWATER DRAINAGE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Drainage $ 8,813,665 $ 5,645,973 $ 83,128 $14,376,510
Land betterments 2,300 22,500 - 24,800
Machinery and equipment 73,376 - - 73,376
Construction in progress 5,159,580 706,655 5,089,328 776,907
Total capital assets 14,048,921 6,375,128 5,172,456 15,251,593
Accumulated Depreciation:
Drainage 54,850 7,338 - 62,188
Land betterments 287 115 - 402
Machinery and equipment 309,523 154,601 2,869 461,255
Total accumulated depreciation 364,660 162,054 2,869 523,845
Net capital assets $ 13,684,261 $ 6,213,074 $ 5,169,587 $14,727,748
95
EXHIBIT H-10
CITY OF WICHITA FALLS, TEXAS
SANITATION FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Land and betterments $5,409,789 $ 392,681 $ 6,212 $5,796,258
Buildings and improvements 2,310,283 - 22,422 2,287,861
Machinery and equipment 284,786 99,887 44,216 340,457
Construction in progress 187,061 347,695 187,061 347,695
Total capital assets 8,191,919 840,263 259,911 8,772,271
Accumulated Depreciation:
Land and betterments 351,695 107,009 6,039 452,665
Buildings and improvements 1,325,159 45,979 22,247 1,348,891
Machinery and equipment 127,839 20,910 44,089 104,660
Total accumulated depreciation 1,804,693 173,898 72,375 1,906,216
Net capital assets $6,387,226 $ 666,365 $ 187,536 $6,866,055
96
EXHIBIT H-11
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Land and betterments $ 24,345,465 $ - $ - $ 24,345,465
Buildings, systems and
improvements 249,863,240 3,434,166 109,000 253,188,406
Machinery and equipment 4,779,373 62,591 - 4,841,964
Furniture and fixtures 1,164 - - 1,164
Motor vehicles 1,235 - - 1,235
Construction in progress 26,771,518 17,636,019 768,170 43,639,367
Total capital assets 305,761,995 21,132,776 877,170 326,017,601
Accumulated Depreciation:
Land and betterments 9,579,087 243,632 - 9,822,719
Buildings, systems and
improvements 78,848,520 4,906,156 109,000 83,645,676
Machinery and equipment 3,576,326 169,740 - 3,746,066
Furniture and fixtures 1,164 - - 1,164
Motor vehicles 1,235 - - 1,235
Total accumulated depreciation 92,006,332 5,319,528 109,000 97,216,860
Net capital assets $213,755,663 $ 15,813,248 $ 768,170 $228,800,741
97
EXHIBIT H-12
CITY OF WICHITA FALLS, TEXAS
WATERPARK FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Land and betterments $ 389,894 $ - $ - $ 389,894
Buildings and improvements 3,306,149 56,460 - 3,362,609
Machinery and equipment 178,457 10,000 - 188,457
Total capital assets 3,874,500 66,460 - 3,940,960
Accumulated Depreciation:
Buildings and improvements 165,307 166,719 - 332,026
Machinery and equipment 17,846 18,346 - 36,192
Total accumulated depreciation 183,153 185,065 - 368,218
Net capital assets $ 3,691,347 $ (118,605) $ - $ 3,572,742
98
EXHIBIT H-13
CITY OF WICHITA FALLS, TEXAS
FLEET MAINTENANCE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Land and betterments $ 436,269 $ - $ - $ 436,269
Buildings and improvements 4,136,368 3,659 - 4,140,027
Machinery and equipment 835,374 156,218 - 991,592
Furniture and fixtures 2,950 - - 2,950
Motor vehicles 46,812,853 2,333,216 1,032,433 48,113,636
Construction in progress 6,706 - - 6,706
Total capital assets 52,230,520 2,493,093 1,032,433 53,691,180
Accumulated Depreciation:
Land and betterments-other 914 261 - 1,175
Buildings and improvements 1,988,794 86,584 - 2,075,378
Machinery and equipment 523,095 60,969 - 584,064
Furniture and fixtures 2,950 - - 2,950
Motor vehicles and equipment 28,650,139 3,828,199 1,002,923 31,475,415
Total accumulated depreciation 31,165,892 3,976,013 1,002,923 34,138,982
Net capital assets $21,064,628 $ (1,482,920) $ 29,510 $ 19,552,198
99
EXHIBIT H-14
CITY OF WICHITA FALLS, TEXAS
DUPLICATING SERVICES FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Machinery and equipment $ 114,995 $ - $ 90,070 $ 24,925
Accumulated Depreciation:
Machinery and equipment 68,242 6,142 54,209 20,175
Net capital assets $ 46,753 $ (6,142) $ 35,861 $ 4,750
100
EXHIBIT H-15
CITY OF WICHITA FALLS, TEXAS
EMPLOYEE BENEFIT TRUST FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30,2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Machinery and equipment $ 1,379 $ - $ 1,379 $ -
Accumulated Depreciation:
Machinery and equipment 896 69 965 -
Net capital assets $ 483 $ (69) $ 414 $ -
101
EXHIBIT H-16
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Balance Balance
10/1/2010 Additions Deletions 9/30/2011
Capital Assets:
Land and betterments $ 1,469,797 $ - $ - $ 1,469,797
Buildings and improvements 957,191 - - 957,191
Total capital assets 2,426,988 - - 2,426,988
Accumulated Depreciation:
Buildings and improvements 86,147 19,144 - 105,291
Net capital assets $ 2,340,841 $ (19,144) $ - $ 2,321,697
102
Statistical Section (Unaudited)
This part of the City of Wichita Falls, Texas' comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
government's overall financial health.
Contents Page
Financial Trends 103
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity 109
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax.
Debt Capacity 113
These schedules present information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's ability to
issue additional debt in the future.
Demographic and Economic Information 118
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities take
place.
Operating Information 120
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates to the
services the government provides and the activities it performs.
CITY OF WICHITA FALLS, TEXAS
NET ASSETS BY COMPONENT
LAST NINE FISCAL YEARS(UNAUDITED)
2002-2003 2003-2004 2004-2005
Governmental activities
Invested in capital assets, net of related debt $ 64,632,911 $ 90,045,882 $ 127,366,654
Restricted 597,966 626,256 1,200,845
Unrestricted 16,561,287 25,286,103 20,500,308
Total governmental activities net assets $ 81,792,164 $ 115,958,241 $ 149,067,807
Business-type activities
Invested in capital assets, net of related debt $ 89,683,262 $ 99,419,642 $ 112,568,870
Restricted 15,483,121 15,436,872 15,679,474
Unrestricted 14,109,004 10,631,269 7,698,134
Total business-type activities net assets $ 119,275,387 $ 125,487,783 $ 135,946,478
Primary government
Invested in capital assets, net of related debt $ 154,316,173 $ 189,465,524 $ 239,935,524
Restricted 16,081,087 16,063,128 16,880,319
Unrestricted 30,670,291 35,917,372 28,198,442
Total primary government net assets $ 201,067,551 $ 241,446,024 $ 285,014,285
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
103
EXHIBIT 1-1
Fiscal Year
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
$ 132,958,014 $ 133,737,880 $ 139,868,969 $ 138,550,295 $ 135,957,279 $ 138,876,124
1,373,786 1,541,859 1,631,963 1,186,730 5,006,079 6,048,238
20,689,055 27,487,733 21,189,932 14,880,792 9,263,524 7,189,782
$ 155,020,855 $ 162,767,472 $ 162,690,864 $ 154,617,817 $ 150,226,882 $ 152,114,144
$ 120,263,391 $ 132,852,246 $ 143,023,239 $ 156,170,924 $ 172,590,416 $ 172,634,321
16,234,804 12,681,053 12,945,497 12,958,909 12,942,163 11,734,924
11,962,104 12,513,454 12,810,854 10,712,005 10,734,533 23,006,940
$ 148,460,299 $ 158,046,753 $ 168,779,590 $ 179,841,838 $ 196,267,112 $ 207,376,185
$ 253,221,405 $ 266,590,126 $ 282,892,208 $ 294,721,219 $ 308,547,695 $ 311,510,445
17,608,590 14,222,912 14,577,460 14,145,639 17,948,242 17,783,162
32,651,159 40,001,187 34,000,786 25,592,797 19,998,057 30,196,722
$ 303,481,154 $ 320,814,225 $ 331,470,454 $ 334,459,655 $ 346,493,994 $ 359,490,329
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET ASSETS
LAST NINE FISCAL YEARS (UNAUDITED)
2002-2003 2003-2004 2004-2005
Expenses
Governmental activities:
Administrative services $ 9,816,232 $ 9,524,291 $ 9,174,786
Police 16,082,473 16,283,542 17,107,502
Fire 9,742,147 10,058,363 10,337,851
Parks and recreation 4,112,071 4,164,247 4,220,079
Accounting/finance 1,721,239 1,851,988 1,841,475
Community development 7,536,269 7,897,167 7,181,397
Public works 5,627,020 6,404,132 6,742,355
Health 4,632,486 4,523,907 4,435,702
Traffic and transportation 2,138,240 1,983,322 2,181,799
Multi-Purpose Events Center 622,406 1,589,670 2,015,329
Interest and fees on long-term debt 905,959 921,705 843,358
Total governmental activities expenses 62,936,542 65,202,334 66,081,633
Business-type activities:
Golf 747,356 760,705 779,151
Municipal Airport 220,970 250,807 243,414
Kickapoo Airport 295,987 338,957 377,299
Transit 1,101,145 1,028,491 1,240,131
Sanitation 7,087,574 7,418,146 7,715,572
Water and Sewer 25,076,194 24,721,561 25,604,413
Stormwater drainage 10,633 112,082 125,989
Waterpark - - -
Total business-type activities expenses 34,539,859 34,630,749 36,085,969
Total primary government expenses $ 97,476,401 $ 99,833,083 $ 102,167,602
Program Revenues
Governmental activities:
Charges for services:
Administrative services $ 3,259,315 $ 3,631,020 $ 3,640,715
Police 401,168 372,510 361,201
Fire 2,062 3,233 1,458
Parks and recreation 513,109 479,204 455,861
Accounting/finance - - -
Community development 771,418 1,265,897 1,078,293
Public works - - -
Health 590,441 668,491 711,399
Traffic and transportation 202,392 214,266 195,585
Multi-Purpose Events Center - - -
Operating grants and contributions 9,469,723 11,968,460 14,734,689
Capital grants and contributions 2,608,168 6,970,138 1,176,107
Total governmental activities program revenues 17,817,796 25,573,219 22,355,308
104
EXHIBIT 1-2
(Page 1 of 2)
Fiscal Year
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
$ 10,648,044 $ 10,363,134 $ 11,662,086 $ 12,026,311 $ 10,043,369 $ 10,881,691
17,733,480 18,587,210 20,527,967 21,008,696 21,133,526 21,822,371
10,825,964 11,295,623 12,492,842 13,028,146 13,065,768 13,291,048
4,210,463 4,478,311 5,107,579 5,757,363 5,687,527 5,405,955
1,843,810 1,893,389 2,231,952 2,473,024 2,428,055 2,534,141
6,293,156 . 6,573,917 6,921,352 7,584,142 7,243,744 7,084,165
7,706,209 8,616,348 8,314,596 8,282,184 8,035,626 7,613,089
4,409,374 4,736,162 4,873,643 4,995,764 4,931,859 4,911,165
2,527,270 2,590,309 2,679,026 2,499,869 2,525,097 2,451,154
2,166,331 4,291,434 4,335,968 4,027,612 4,181,379 4,295,871
721,762 1,308,748 1,405,383 1,620,854 1,781,245 1,765,406
69,085,863 74,734,585 80,552,394 83,303,965 81,057,195 82,056,056
901,454 - - - - -
281,117 276,368 310,980 289,195 337,946 435,774
574,929 966,961 1,245,021 1,354,624 1,108,515 1,262,976
1,280,540 1,373,283 1,793,369 1,616,322 1,602,362 1,847,362
8,059,991 8,638,374 9,199,341 8,509,153 9,152,130 8,959,973
26,380,183 26,764,879 28,126,920 30,165,844 30,250,390 32,969,719
328,833 355,697 407,035 477,415 785,543 533,715
- - - - 1,253,557 1,399,255
37,807,047 38,375,562 41,082,666 42,412,553 44,490,443 47,408,774
$ 106,892,910 $ 113,110,147 $ 121,635,060 $ 125,716,518 $ 125,547,638 $ 129,464,830
$ 3,691,411 $ 3,327,519 $ 3,211,546 $ 4,267,891 $ 4,414,667 $ 4,499,281
402,583 700,216 600,020 470,020 495,459 527,007
5,195 5,434 2,612 4,369 2,042 11,400
473,121 443,827 517,707 513,682 515,008 513,746
- - - - - 65,000
1,195,203 1,138,671 1,124,534 891,803 1,042,574 1,017,718
48,871 7,286 100,000 165,363 2,600 2,740
807,002 803,115 864,874 888,890 908,415 965,741
292,234 212,911 154,941 164,350 201,961 184,138
- 2,215,411 2,141,584 1,789,269 1,767,398 1,644,569
11,109,618 12,298,595 11,468,654 10,891,021 14,606,807 13,268,583
2,667,389 3,218,003 3,097,319 1,631,109 6,145,852 2,315,245
20,692,627 24,370,988 23,283,791 21,677,767 30,102,783 25,015,168
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET ASSETS(CONT-D.)
LAST NINE FISCAL YEARS (UNAUDITED)
2002-2003 2003-2004 2004-2005
Business-type activities:
Charges for services:
Golf 687,153 677,498 622,434
Municipal Airport 359,006 416,573 446,388
Kickapoo Airport 348,512 385,871 270,194
Transit 160,749 194,388 162,018
Sanitation 8,783,064 8,920,801 9,133,955
Water and Sewer 28,488,384 27,857,286 30,208,286
Stormwater drainage 1,035,683 1,036,450 1,042,278
Waterpark - - -
Operating grants and contributions 817,451 937,025 926,088
Capital grants and contributions 879,222 376,437 862,398
Total business-type activities program revenues 41,559,224 40,802,329 43,674,039
Total primary government program revenues $ 59,377,020 $ 66,375,548 $ 66,029,347
Net(Expense)/Revenue
Governmental activities $ (45,118,746) $ (39,629,115) $ (43,726,325)
Business-type activities 7,019,365 6,171,580 7,588,070
Total primary government net expense $ (38,099,381) $ (33,457,535) $ (36,138,255)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property tax $ 20,890,964 $ 21,404,857 $ 22,578,788
Sales tax 16,598,733 17,192,703 17,845,505
Franchise fees 5,286,038 5,218,860 5,191,741
Hotel occupancy tax 1,221,620 1,278,102 1,262,518
Beverage tax 196,663 202,841 204,727
Bingo tax 230,280 209,825 164,128
Investment earnings 404,146 379,150 754,935
Gain (loss)on sale of capital assets 3,045 (24,061) -
Miscellaneous 309,168 482,908 166,648
Transfers 5,748,106 2,241,628 473,644
Total governmental activities 50,888,763 48,586,813 48,642,634
Business-type activities:
Investment earnings 2,238,809 1,764,311 3,417,875
Miscellaneous 1,167,155 518,133 (73,611)
Transfers (3,698,431) (2,241,628) (473,644)
Total business-type activities (292,467) 40,816 2,870,620
Total primary government $ 50,596,296 $ 48,627,629 $ 51,513,254
Change in Net Assets
Governmental activities $ 5,770,017 $ 8,957,698 $ 4,916,309
Business-type activities 6,726,898 6,212,396 10,458,690
Total primary government $ 12,496,915 $ 15,170,094 $ 15,374,999
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
105
EXHIBIT 1-2
(Page 2 of 2)
Fiscal Year
2005-2006 2006-2007 2007-2008 2008-2009 2009-10 2010-11
.828,055 - - - - -
448,384 441,471 430,561 544,332 624,298 681,639
347,761 789,522 1,025,300 745,444 798,034 988,457
214,771 206,109 224,856 229,483 274,577 367,374
9,517,673 9,917,386 10,939,617 12,025,478 11,826,882 11,911,026
33,436,585 30,031,969 33,042,845 33,888,553 33,264,688 40,679,751
1,209,196 1,267,533 1,318,340 1,252,544 1,272,430 2,485,346
- - - - 1,283,919 1,633,155
1,251,770 1,026,685 1,389,202 1,142,191 2,312,062 1,323,581
455,217 580,729 1,021,644 456,743 108,471 192,620
47,709,412 44,261,404 49,392,365 50,284,768 51,765,361 60,262,949
$ 68,402,039 $ 68,632,392 $ 72,676,156 $ 71,962,535 $ 81,868,144 $ 85,278,117
$ (48,393,236) $ (50,363,597) $ (57,268,603) $ (61,626,198) $ (50,954,412) $ (57,040,888)
9,902,365 5,885,842 8,309,699 7,872,215 7,274,918 12,854,175
$ (38,490,871) $ (44,477,755) $ (48,958,904) $ (53,753,983) $ (43,679,494) $ (44,186,713)
$ 23,522,746 $ 24,975,158 $ 26,160,116 $ 27,869,849 $ 27,570,092 $ 28,556,762
19,272,204 20,068,529 21,353,896 20,451,906 20,033,820 21,082,993
5,740,202 5,780,311 5,598,406 5,570,399 5,593,573 5,593,781
1,333,747 1,417,397 1,560,353 1,506,423 1,553,674 1,572,105
234,075 236,367 251,386 249,121 246,541 248,350
178,666 166,223 168,864 109,739 77,883 70,747
1,409,188 2,684,388 1,727,671 415,156 129,653 49,239
- - (397,404) - - -
172,500 712,358 242,811 134,983 160,949 -
2,482,958 1,972,819 525,898 (2,439,625) (8,802,705) 1,754,171
54,346,286 58,013,550 57,191,997 53,867,951 46,563,480 58,928,148
5,094,418 5,575,703 2,949,036 602,872 194,428 50,858
- 199,174 - 147,536 153,223 (41,792)
(2,482,958) (1,972,819) (525,898) 2,439,625 8,802,705 (1,754,171)
2,611,460 3,802,058 2,423,138 3,190,033 9,150,356 (1,745,105)
$ 56,957,746 $ 61,815,608 $ 59,615,135 $ 57,057,984 $ 55,713,836 $ 57,183,043
$ 5,953,050 $ 7,649,953 $ (76,606) $ (7,758,247) $ (4,390,932) $ 1,887,260
12,513,825 9,687,900 10,732,837 11,062,248 16,425,274 11,109,070
$ 18,466,875 $ 17,337,853 $ 10,656,231 $ 3,304,001 $ 12,034,342 $ 12,996,330
CITY OF WICHITA FALLS, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS-
LAST TEN FISCAL YEARS (UNAUDITED)
2001-2002 2002-2003 2003-2004 2004-2005
General Fund
Reserved $ 685,011 $ 1,914,615 $ 1,516,079 $ 2,439,595
Unreserved 8,367,731 8,368,357 9,507,595 10,608,472
Nonspendable - - - -
Assigned - - -
Unassigned -
Total general fund $ 9,052,742 $ 10,282,972 $ 11,023,674 $ 13,048,067
All other Governmental Funds
Reserved $ 1,937,961 $ 3,240,727 $ 11,092,483 $ 5,102,543
Unreserved, reported in:
Special revenue funds 5,769,119 4,163,834 4,673,755 4,299,100
Capital projects funds 7,064,161 3,205,633 3,394,688 3,738,484
Nonspendable - - -
Restricted - - -
Committed - - -
Unassigned -
Total all other governmental funds $ 14,771,241 $ 10,610,194 $ 19,160,926 $ 13,140,127
106
EXHIBIT 1-3
Fiscal Year
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
$ 2,393,129 $ 3,161,776 $ 2,686,432 $ 1,499,613 $ 1,392,329 $ -
11,503,795 15,569,840 14,500,836 13,042,044 14,294,519 -
- - - - - 478,617
- - - - 579,022
- - - 16,002,361
$ 13,896,924 $ 18,731,616 $ 17,187,268 $ 14,541,657 $ 15,686,848 $ 17,060,000
$ 3,179,513 $ 2,371,514 $ 2,888,944 $ 6,254,620 $ 11,753,749 $ -
4,746,615 7,089,584 6,180,559 4,808,127 1,713,168 -
4,857,539 23,458,510 15,033,333 10,963,970 1,850,806 -
- - - - - 81,376
- - 10,927,373
- - - - - 1,762,248
- - - - (24,418)
$ 12,783,667 $ 32,919,608 $ 24,102,836 $ 22,026,717 $ 15,317,723 $ 12,746,579
CITY OF WICHITA FALLS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS-
LAST TEN FISCAL YEARS(UNAUDITED)
2001-2002 2002-2003 2003-2004 2004-2005
Revenues
Taxes $ 41,798,664 $ 44,425,106 $ 45,512,949 $ 47,236,518
Charges for services 2,153,223 2,338,678 2,452,353 2,480,148
Licenses and permits 1,918,690 2,001,117 2,292,695 2,218,119
Fines and forfeitures 1,797,795 1,773,449 2,189,001 2,161,782
Intergovernmental revenue 9,000,057 9,469,723 11,444,840 13,003,816
Contributions 837,213 2,698,930 7,493,758 2,906,980
Miscellaneous revenue 1,833,247 1,539,063 2,007,303 1,985,383
Total revenues 59,338,889 64,246,066 73,392,899 71,992,746
Expenditures
Administrative services 8,491,188 9,169,430 9,330,631 8,701,521
Police 14,716,145 15,586,666 15,996,964 16,731,373
Fire 9,084,534 9,456,869 9,851,203 10,196,605
Parks and recreation 3,821,791 3,920,357 4,016,394 4,106,476
Accounting/finance 1,702,554 1,604,484 1,757,006 1,754,186
Community development 5,970,759 7,569,296 8,137,672 7,282,012
Public works 6,204,297 5,311,740 4,488,704 4,653,539
Health 4,146,598 4,513,769 4,452,507 4,391,270
Traffic and transportation 2,261,335 1,923,176 1,768,336 1,937,424
Multi-Purpose Events Center - 57,848 783,244 1,205,153
Capital outlay 13,910,949 10,333,520 8,235,652 10,171,128
Debt service-principal 1,805,000 2,120,000 2,970,000 3,050,000
Debt service-interest 1,181,524 924,557 900,526 852,624
Total expenditures 73,296,674 72,491,712 72,688,839 75,033,311
Excess of revenues over(under)
expenditures (13,957,785) (8,245,646) 704,060 (3,040,565)
Other Financing Sources(Uses)
Transfers in 3,450,446 6,805,264 7,142,007 6,922,585
Transfer out (1,436,580) (2,437,133) (6,393,643) (7,878,421)
Proceeds from general obligation bonds - 2,450,000 7,549,000 -
Payment to refunded bonds escrow agent - (2,450,000) - -
Total other financing sources(uses) 2,013,866 4,368,131 8,297,364 (955,836)
Net change in fund balances $(11,943,919) $ (3,877,515) $ 9,001,424 $ (3,996,401)
Debt service as a percentage of
noncapital expenditures 5.03% 4.90% 6.01% 6.02%
107
EXHIBIT 1-4
Fiscal Year
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
$ 50,228,509 $ 52,637,318 $ 55,155,574 $ 55,752,982 $ 55,006,901 $ 57,122,006
2,597,044 3,202,699 3,270,930 3,689,717 3,715,832 3,886,160
2,206,023 2,215,813 2,116,140 1,887,434 1,990,328 2,064,972
2,481,816 2,127,062 1,964,391 1,970,612 2,214,884 2,209,026
9,682,237 11,136,433 8,428,310 9,287,371 14,783,860 11,041,679
4,094,770 4,366,961 6,137,663 3,234,759 5,711,904 4,542,149
2,816,865 6,664,315 5,369,689 3,804,438 3,597,927 3,216,734
74,107,264 82,350,601 82,442,697 79,627,313 87,021,636 84,082,726
10,103,642 9,965,494 10,873,576 11,315,351 9,694,632 10,235,720
17,228,066 18,068,168 19,524,824 20,182,150 20,182,168 20,235,012
10,739,651 11,238,422 12,206,774 12,833,183 12,671,757 12,897,810
4,110,013 4,373,460 4,841,597 5,457,410 5,359,692 4,966,060
1,765,350 1,811,690 2,087,572 2,327,608 2,279,241 2,367,814
6,355,136 6,652,162 6,925,581 7,433,617 7,315,631 7,124,851
5,128,384 6,038,790 5,606,784 5,452,172 5,355,585 5,170,624
4,407,758 4,728,414 4,775,418 4,950,213 4,896,841 4,796,934
2,309,854 2,355,249 2,459,070 2,292,890 2,245,038 2,233,311
1,355,846 3,498,189 3,506,091 3,208,713 3,358,470 3,436,052
7,244,115 7,093,636 15,219,394 12,088,928 8,758,421 7,600,491
3,190,000 2,510,000 2,395,000 2,065,000 2,240,000 2,115,000
731,921 1,271,106 1,456,540 1,364,831 1,781,176 1,934,935
74,669,736 79,604,780 91,878,221 90,972,066 86,138,652 85,114,614
(562,472) 2,745,821 (9,435,524) (11,344,753) 882,984 (1,031,888)
3,282,459 5,922,091 7,268,938 5,530,309 3,930,000 -
(2,227,586) (5,401,565) (8,194,534) (9,433,265) 5,676,896 6,239,483
21,702,048 - 10,840,779 (16,053,685) (6,405,589)
1,054,873 22,222,574 (925,596) 6,937,823 (6,446,789) (166,106)
$ 492,401 $ 24,968,395 $(10,361,120) $ (4,406,930) $ (5,5639805) $ (1,197,994)
5.82% 5.21% 5.02% 4.35% 5.20% 5.22%
EXHIBIT 1-5
CITY OF WICHITA FALLS, TEXAS
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
Fiscal Hotel
Year Property Sales Franchise Occupancy Beverage Bingo Total
2001-2002 $19,055,248 $16,222,571 $ 4,933,338 $1,201,114 $ 188,517 $ 197,875 $41,798,663
2002-2003 20,891,772 16,598,733 5,286,038 1,221,620 196,663 230,280 44,425,106
2003-2004 21,410,615 17,192,706 5,218,860 1,278,102 202,841 209,825 45,512,949
2004-2005 22,567,902 17,845,502 5,191,741 1,262,518 204,727 164,128 47,236,518
2005-2006 23,469,615 19,272,204 5,740,202 1,333,747 234,075 178,666 50,228,509
2006-2007 24,968,481 20,068,529 5,780,311 1,417,397 236,367 166,233 52,637,318
2007-2008 26,217,499 21,353,896 5,598,406 1,565,523 251,386 168,864 55,155,574
2008-2009 27,865,394 20,451,906 5,570,399 1,506,423 249,121 109,739 55,752,982
2009-2010 27,501,412 20,033,820 5,593,573 1,513,484 246,541 77,883 54,966,713
2010-2011 28,554,029 21,082,994 5,593,781 1,572,105 248,350 70,747 57,122,006
108
EXHIBIT 1-6
CITY OF WICHITA FALLS, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY-
LAST TEN FISCAL YEARS(UNAUDITED)
Personal Ratio of Total
Real Property Property Total Total Assessed to
Fiscal Assessed Assessed Assessed Direct Estimated Total Estimated
Year Value Value Value Tax Rate Actual Value Actual Value
2001-2002 $2,671,429,859 $ 667,334,298 $3,338,764,157 $0.55194 $3,338,764,157 100.00%
2002-2003 2,775,175,780 652,625,915 3,427,801,695 0.55194 3,427,801,695 100.00%
2003-2004 2,901,708,013 629,284,576 3,530,992,589 0.59246 3,530,992,589 100.00%
2004-2005 3,047,463,928 632,056,253 3,679,520,181 0.59246 3,679,520,181 100.00%
2005-2006 2,992,717,987 726,512,178 3,719,230,165 0.59246 3,719,230,165 100.00%
2006-2007 3,208,236,037 744,353,082 3,952,589,119 0.59246 3,952,589,119 100.00%
2007-2008 3,389,094,572 802,449,151 4,191,543,723 0.59246 4,191,543,723 100.00%
2008-2009 3,553,825,553 877,030,381 4,430,855,934 0.59526 4,430,855,934 100.00%
2009-2010 3,622,501,148 803,697,677 4,426,198,825 0.60526 4,426,198,825 100.00%
2010-2011 3,693,399,778 728,642,824 4,422,042,602 0.62526 4,422,042,602 100.00%
109
EXHIBIT 1-7
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES-
LAST TEN FISCAL YEARS(UNAUDITED)
Tax Rates Per$100 Valuation
Fiscal City of Wichita Falls Wichita County Burkburnett ISD(1)
Year M&O I&S Total M&O I&S Total M&O I&S Total
2001-2002 $ 0.49 $ 0.06 $ 0.55 $ 0.37 $ 0.02 $ 0.39 $ 1.48 $ 0.13 $ 1.61
2002-2003 0.53 0.06 0.59 0.40 0.02 0.42 1.49 0.14 1.63
2003-2004 0.53 0.06 0.59 0.43 0.02 0.45 1.50 0.14 1.64
2004-2005 0.54 0.05 0.59 0.44 0.02 0.46 1.50 0.14 1.64
2005-2006 0.55 0.04 0.59 0.44 0.02 0.46 1.50 0.13 1.63
2006-2007 0.57 0.02 0.59 0.43 0.02 0.45 1.37 0.13 1.50
2007-2008 0.57 0.02 0.59 0.43 0.01 0.44 1.17 0.11 1.28
2008-2009 0.58 0.02 0.60 0.43 - 0.43 1.17 0.14 1.31
2009-2010 0.59 0.02 0.61 0.48 - 0.48 1.17 0.14 1.31
2010-2011 0.61 0.01 0.62 0.52 - 0.52 1.17 0.14 1.31
City View ISD(2) Iowa Park CISD(3) Wichita Falls ISD(4) Grand
M&O I&S Total M&O I&S Total M&O I&S Total Total
2001-2002 $ 1.50 $ 0.19 $ 1.69 $ 1.32 $ 0.08 $ 1.40 $ 1.50 $ 0.04 $ 1.54 $ 7.18
2002-2003 1.50 0.19 1.69 1.50 0.11 1.61 1.50 0.06 1.56 7.50
2003-2004 1.50 0.19 1.69 1.50 0.08 1.58 1.50 0.06 1.56 7.51
2004-2005 1.50 0.23 1.73 1.49 0.09 1.58 1.50 0.06 1.56 7.56
2005-2006 1.50 0.25 1.75 1.49 0.09 1.58 1.50 0.06 1.56 7.57
2006-2007 1.50 0.23 1.73 1.36 0.09 1.45 1.33 0.06 1.39 7.11
2007-2008 1.37 0.23 1.60 1.04 0.08 1.12 1.04 0.15 1.19 6.22
2008-2009 1.04 0.22 1.26 1.04 0.08 1.12 1.04 0.16 1.20 5.92
2009-2010 1.17 0.23 1.40 1.04 0.11 1.15 1.04 0.16 1.20 6.15
2010-2011 1.17 0.25 1.42 1.04 0.10 1.14 1.04 0.16 1.20 6.21
Notes:
(1) Burkburnett Independent School District-25%in Wichita Falls city limits
(2) City View Independent School District-90%in Wichita Falls city limits
(3) Iowa Park Consolidated Independent School District-2%in Wichita Falls city limits
(4) Wichita Falls Independent School District-99%in Wichita Falls city limits
110
EXHIBIT 1-8
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
SEPTEMBER 30, 2011
2010-11 2001-2002
Percentage Percentage
Taxable of Total Taxable of Total
Assessed Assessed. Assessed Assessed
Taxpayer Value Rank Valuation Value Rank Valuation
GGP-Sikes Senter LLC $ 50,522,779 1 1.14% $ 42,045,000 3 1.26%
Oncor Electric Delivery Co 37,300,850 2 0.84% 43,420,140 2 1.30%
Wal-Mart Stores Texas LP 24,172,866 3 0.55% 34,277,549 4 1.03%
Southwestern Bell 21,789,249 4 0.49% 46,005,162 1 1.38%
Wal-Mart Stores East Inc 18,974,411 5 0.43% - N/A 0.00%
Quail Creek Crossing Ltd 14,421,000 6 0.33% - N/A 0.00%
Kell West Regional Hospital 13,143,306 7 0.30% 10,403,611 9 0.31%
Saint-Gobain Vetrotex America Inc. 13,003,240 8 0.29% - N/A 0.00%
Lowe's Home Centers, Inc. 12,087,569 9 0.27% 14,348,834 6 0.43%
North American Pipe Corp 13,969,307 10 0.32% - N/A 0.00%
Clinics of North Texas - N/A 0.00% 14,613,806 5 0.44%
SBC Asset Management, Inc. - N/A 0.00% 13,689,391 7 0.41%
Time Warner - N/A 0.00% 13,196,703 8 0.40%
Winn Dixie - N/A 0.00% 9,871,185 10 0.30%
Totals $ 219,384,577 4.96% $ 241,871,381 7.26%
111
EXHIBIT 1-9
CITY OF WICHITA FALLS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS-
LAST TEN FISCAL YEARS (UNAUDITED)
Collected within the
Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date
Fiscal for the Percentage in Subsequent Percentage
Year Fiscal Year Amount of Levy Years Amount of Levy
2001-2002 $ 17,635,425 $ 17,210,516 97.59% $ 369,293 $ 17,579,809 99.68%
2002-2003 19,439,511 18,962,880 97.55% 408,409 19,371,289 99.65%
2003-2004 20,039,039 19,646,529 98.04% 311,678 19,958,207 99.60%
2004-2005 20,919,473 20,494,272 97.97% 306,509 20,800,781 99.43%
2005-2006 22,034,951 21,612,888 98.08% 290,997 21,903,885 99.41%
2006-2007 23,421,270 23,043,185 98.39% 261,287 23,304,472 99.50%
2007-2008 24,833,219 24,408,683 98.29% 244,414 24,653,097 99.27%
2008-2009 26,375,113 25,905,854 98.22% 267,118 26,172,972 99.23%
2009-2010 26,752,242 26,166,043 97.81% 212,103 26,378,146 98.60%
2010-2011 27,649,264 27,179,642 98.30% - 27,179,642 98.30%
112
CITY OF WICHITA FALLS, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE -
LAST TEN FISCAL YEARS(UNAUDITED)
Governmental Activities
General Combination Utility
Fiscal Obligation Tax and Note System
Year Bonds Revenue Bonds Payable Revenue Bonds
2001-2002 $ 17,410,000 $ - $ - $ 172,349,440
2002-2003 15,290,000 - 54,561 168,368,339
2003-2004 13,060,000 6,810,000 234,186 144,747,898
2004-2005 10,725,000 6,095,000 178,149 126,538,189
2005-2006 8,270,000 5,360,000 120,443 124,824,242
2006-2007 7,390,000 25,396,016 61,093 123,869,328
2007-2008 6,480,000 23,867,228 - 121,887,613
2008-2009 5,535,000 33,524,726 - 119,841,741
2009-2010 4,790,000 35,918,687 - 107,501,744
2010-2011 4,450,000 34,104,162 - 105,277,778
113
EXHIBIT 1-10
Business-type Activities
Combination Capital Total Percentage
Tax and Note Lease Primary of Personal Per
Revenue Bonds Payable Payable Government Income Capita
$ - $ 832,565 $ - $ 190,592,005 4.95% $ 1,823.08
- 807,674 - 184,520,574 4.70% 1,762.17
19,900,889 781,974 - 185,534,947 4.56% 1,769.98
33,975,588 755,438 - 178,267,364 4.16% 1,667.98
30,961,933 728,039 - 170,264,657 3.81% 1,581.87
27,864,844 699,748 - 185,281,029 4.01% 1,721.38
24,479,232 670,537 - 177,384,610 3.71% 1,644.78
21,004,768 640,377 722,464 181,269,076 7.34% 1,711.13
27,744,748 609,234 549,621 177,114,034 8.03% 1,694.01
23,969,757 577,079 371,696 168,750,472 6.10% 1,614.02
EXHIBIT 1-11
CITY OF WICHITA FALLS, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING -
LAST TEN FISCAL YEARS(UNAUDITED)
Governmental Activities Percentage of
General Combination Actual Taxable
Fiscal Obligation Tax and Value of Per
Year Bonds Revenue Bonds Total Property Capita
2001-2002 $ 17,410,000 $ - $ 17,410,000 0.52% $ 166.53
2002-2003 15,290,000 - 15,290,000 0.45% 146.02
2003-2004 13,060,000 6,810,000 19,870,000 0.56% 189.56
2004-2005 10,725,000 6,095,000 16,820,000 0.46% 157.38
2005-2006 8,270,000 5,360,000 13,630,000 0.37% 126.63
2006-2007 7,390,000 25,396,016 32,786,016 0.83% 304.60
2007-2008 6,480,000 23,867,228 30,347,228 0.72% 281.39
2008-2009 5,535,000 33,524,726 39,059,726 0.88% 368.71
2009-2010 4,790,000 35,918,687 40,708,687 0.92% 389.36
2010-2011 4,450,000 34,104,162 38,554,162 0.87% 368.75
114
EXHIBIT 1-12
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT(UNAUDITED)
SEPTEMBER 30, 2011
Percentage Amount
Gross Applicable Applicable
General Bonded to City of to City of
Debt(1) Wichita Falls (2) Wichita Falls
Direct:
City of Wichita Falls $ 38,554,162 100% $ 38,554,162
Overlapping:
Wichita County 1,370,000 100% 1,370,000
Burkburnett Independent School District 9,591,019 25% 2,397,755
City View Independent School District 8,436,125 90% 7,592,513
Iowa Park Consolidated Independent
School District 3,953,522 2% 79,070
Wichita Falls Independent School District 64,190,793 99% 63,548,885
Total overlapping 87,541,459 74,988,223
Total direct and overlapping bonded debt $ 126,095,621 $113,542,385
Sources:
(1) Listed taxing jurisdictions
(2) City of Wichita Falls Planning Department
115
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN-
LAST TEN FISCAL YEARS(UNAUDITED)
Total assessed property value per 2010 tax roll $ 4,422,042,602
Maximum tax rate" $ 2.25/$100
Current tax rate for 2007 tax year .62526/$100
Maximum tax rate in excess of 2007 tax rate 1.62474/$100
Total legal debt margin $ 71,846,695
2001-2002 2002-2003 2003-2004 2004-2005
Assessed value $ 3,338,764,157 $ 3,427,801,695 $ 3,530,992,589 $ 3,679,520,181
Maximum tax rate $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100
Current tax rate .55194/$100 .59246/$100 .59246/$100 .59246/$100
Maximum tax rate in excess of current rate 1.69806/$100 1.65754/$100 1.65754/$100 1.65754/$100
Total legal debt margin $ 56,694,219 $ 56,817,184 $ 58,527,615 $ 60,989,519
There is no debt limit established by law. The limit is,therefore,governed by the City's ability to
levy and collect taxes to service the outstanding indebtedness. The City's maximum legal tax rate
established under its Charter is$2.25 per$100 assessed valuation. The 2010 tax rate is$.62526
per$100 assessed valuation.
Maximum tax levy established by City Charter
116
EXHIBIT 1-13
Fiscal Year
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
$ 3,719,230,165 $ 3,952,589,119 $ 4,191,543,723 $ 4,430,855,934 $ 4,426,198,825 $ 4,422,042,602
$ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100
.59246/$100 .59246/$100 .59246/$100 .59526/$100 .60526/$100 .62526/$100
1.65754/$100 1.65754/$100 1.65754/$100 1.65474/$100 1.64754/$100 1.62754/$100
$ 61,647,728 $ 65,515,746 $ 69,476,514 $ 73,319,145 $ 72,799,463 $ 71,846,695
CITY OF WICHITA FALLS, TEXAS
PLEDGED REVENUE COVERAGE -WATER AND SEWER REVENUE BONDS -
LAST TEN FISCAL YEARS (UNAUDITED)
Net Revenue
Fiscal Gross Operating Available For
Year Revenues(l) Expenses (2) Debt Service
2001-2002 $ 29,768,543 $ 13,569,831 $ 16,198,712
2002-2003 30,052,619 14,105,694 15,946,925
2003-2004 29,021,062 14,100,412 14,920,650
2004-2005 29,680,713 15,693,788 13,986,925
2005-2006 32,976,347 16,986,210 15,990,137
2006-2007 29,598,709 17,273,862 12,324,847
2007-2008 33,514,257 17,896,263 15,617,994
2008-2009 33,662,220 19,546,745 14,115,475
2009-2010 33,264,688 19,924,687 13,340,001
2010-2011 40,679,751 22,422,525 18,257,226
Notes:
(1) Includes operating revenues exclusive of water sales to West Texas Utilities and
capital contributions from developers of the Water and Sewer Fund (see Exhibit H-3).
(2) Includes operating expenses of the Water and Sewer Fund exclusive of depreciation
and amortization (see Exhibit H-3).
(3) Excludes bond premium amortization.
117
EXHIBIT 1-14
Debt Service Requirement
Principal (3) Interest Total Coverage
$4,220,000 $ 8,087,504 $12,307,504 1.32
3,895,000 8,412,955 12,307,955 1.30
4,070,000 8,403,349 12,473,349 1.20
4,385,000 8,078,748 12,463,748 1.12
4,505,000 7,600,831 12,105,831 1.32
4,985,000 6,608,627 11,593,627 1.06
5,165,000 6,424,544 11,589,544 1.35
5,410,000 6,185,216 11,595,216 1.22
5,615,000 5,879,680 11,494,680 1.16
5,805,000 5,646,250 11,451,250 1.59
EXHIBIT 1-15
CITY OF WICHITA FALLS, TEXAS
DEMOGRAPHIC STATISTICS-
LAST TEN FISCAL YEARS(UNAUDITED)
Per
Capita
Fiscal Estimated Personal Personal Median Education School Unemployment
Year Population(1) Income Income(2) Age Level(3) Enrollment(3) Rate(4)
2001-2002 104,544 $ 3,849,710,474 $ 36,824 35.4 13.1 14,059 6.3%
2002-2003 104,712 3,929,158,919 37,523 35.4 13.1 13,765 5.5%
2003-2004 104,823 4,067,057,042 38,799 35.4 13.1 13,857 3.6%
2004-2005 106,876 4,287,700,173 40,118 35.4 13.1 13,755 4.8%
2005-2006 107,635 4,464,967,184 41,482 35.4 13.1 13,743 4.2%
2006-2007 107,635 4,616,776,069 42,893, 34.9 13.1 14,707 4.1%
2007-2008 107,847 4,783,148,919 44,351 34.9 13.3 14,533 5.5%
2008-2009 105,935 2,470,050,408 23,317 33.2 13.5 15,473 8.2%
2009-2010 104,553 2,205,022,770 21,090 32.3 13.3 16,217 7.3%
2010-2011 104,553 2,766,263,274 26,458 32.8 13.2 15,539 6.6%
Sources:
(1) City of Wichita Falls Planning Department for all years,except for 2009-10 and 2010-11 from US Bureau of Census.
(2) C.A.C.I. Marketing Services
(3) Wichita Falls I.S.D.-Educational level is grade equivalent of graduating senior
(4) Texas Workforce Commission
118
EXHIBIT 1-16
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO(UNAUDITED)
SEPTEMBER 30,2011
2010-2011 2001-2002
Percentage Percentage
of Total of Total
City City
Employer Employees Rank Employment Employees Rank Employment
Sheppard Air Force Base 12,272 1 17.16% 13,088 1 N/A
Wichita Falls ISD 2,059 2 2.88% 1,700 3 N/A
North Texas State Hospital 1,974 3 2.76% 1,055 5 N/A
United Regional Health Care System 1,778 4 2.49% 1,700 2 N/A
City of Wichita Falls 1,477 5 2.07% 1,477 4 N/A
Midwestern State University 1,284 6 1.80% - N/A -
James B.Allred Prison Unit 971 7 1.36% 930 7 N/A
Cryovac Division-Sealed Air Corp 732 8 1.02% 738 9 N/A
Work Services Corporation 730 9 1.02% - 9 -
Howmet Corporation 704 10 0.98% 903 8 N/A
Vetrotex America - N/A - 1,000 6 N/A
Stanley Works, Mechanics Division - N/A - 550 10 N/A
Totals 23,981 33.54% 23,141 0.00%
Sources:
2001-2002 data is from Texas Workforce Commission. 2010-2011 data is from Wichita Falls Chamber of Commerce.
119
CITY OF WICHITA FALLS, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
2001-2002 2002-2003 2003-2004 2004-2005
Administrative services 87.5 91.6 92.3 95.5
Police 268.5 278.5 285.5 286.5
Fire 156.0 156.0 156.0 156.0
Parks and recreation 75.0 74.7 75.8 75.8
Accounting/finance 22.6 22.6 22.4 22.4
Community development 36.4 39.4 38.7 38.7
Public works 79.3 79.6 80.0 80.2
Health 81.8 80.0 84.1 76.9
Traffic and transportation 51.4 51.4 51.3 51.5
Multi-Purpose Events Center - - - -
Water and sewer 166.9 166.9 169.2 172.0
Sanitation 81.0 81.0 81.0 81.0
Golf 20.3 20.3 19.8 19.7
Municipal Airport 1.0 1.0 1.0 1.0
Kickapoo Airport 6.5 6.5 4.8 5.0
Transit 18.0 17.0 19.3 19.3
Stormwater Drainage - - 0.3 1.3
120
EXHIBIT 1-17
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
99.9 103.0 105.1 104.6 102.0 97.0
286.5 294.0 293.0 294.0 295.0 296.5
156.0 162.0 164.0 164.0 164.0 162.0
75.8 75.8 82.9 82.9 84.8 88.7
22.4 24.5 25.5 26.0 26.0 25.0
38.7 40.7 40.5 41.0 40.1 40.0
80.2 80.2 80.2 80.8 80.8 79.2
77.1 74.9 72.5 69.0 68.4 71.5
51.5 52.6 52.6 50.6 51.7 52.6
- 22.4 22.8 23.0 23.0 22.8
177.5 179.5 179.5 179.9 180.1 179.6
81.0 81.0 82.0 82.5 82.5 82.5
19.2 19.4 - - - -
1.0 1.6 1.6 1.6 1.6 1.6
5.0 4.4 4.4 4.4 5.4 5.4
19.3 19.2 19.6 22.1 21.6 21.6
1.3 1.3 1.3 1.3 1.3 1.3
CITY OF WICHITA FALLS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
2001-2002 2002-2003 2003-2004 2004-2005
General government
Building permits issued 9,177 10,270 10,159 8,904
Building inspections conducted 10,076 12,276 12,600 13,092
Police
Physical arrests 7,992 7,927 7,847 8,284
Parking violations 1,024 558 1,284 1,615
Traffic violations 18,978 19,946 23,385 21,075
Fire
Emergency responses 7,542 7,040 7,535 7,677
Fires extinguished 663 775 668 757
Inspections 850 850 850 850
Refuse collection
Refuse collected (tons) 73,435 74,426 82,973 79,555
Recyclables collected - - 1,926 2,328
Library
Volumes in collection 150,686 157,641 210,976 225,941
Total volumes borrowed - 292,359 304,644 295,088
Water
New connections 292 327 335 312
Water main breaks 795 737 691 573
Average daily consumption 21,700 21,900 20,400 22,100
(thousands of gallons)
Wastewater
Average daily sewage treatment 12,560 12,348 11,026 12,404
(thousands of gallons)
Transit
Total route miles 424,115 407,121 - 450,938
Passengers 196,217 245,908 - 247,303
Notes:
Data was not available for all items for all years. The City will provide more data as it becomes available.
121
EXHIBIT 1-18
Fiscal Year
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
7,553 7,813 7,420 6,769 6,802 8,130
12,591 12,048 11,425 9,565 11,038 13,321
8,571 7,279 6,752 7,186 6,235 5,845
327 383 197 - 109 125
24,126 17,904 16,236 23,253 25,558 23,780
8,234 8,634 8,684 8,687 8,693 9,139
792 554 1,340 718 654 703
850 900 2,647 3,250 3,281 3,114
78,165 182,855 168,681 161,243 156,630 141,251
2,018 19,034 21,624 22,010 16,923 16,780
172,391 179,728 184,231 185,009 185,009 193,064
293,884 302,565 352,408 368,685 368,685 344,107
325 310 212 146 48 64
881 741 898 872 724 1,250
23,680 19,936 22,511 19,200 19,851 25,798
11,097 13,930 11,410 7,670 12,435 10,080
435,446 476,758 488,842 530,771 536,181 552,238
229,601 294,670 324,666 327,463 340,181 374,277
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS(UNAUDITED)
2001-2002 2002-2003 2003-2004 2004-2005
Police
Stations 1 1 1 1
Patrol units - - - -
Fire stations 8 8 8 8
Refuse collection
Collection trucks - - -
Other public works
Streets(miles) 542 542 542 585
Streetlights 7,457 7,600 7,738 7,825
Traffic signals - 109 111 111
Parks and recreation
Acreage 1,200 1,200 1,100 1,200
Playgrounds 41 43 45 47
Golf courses 1 1 1 1
Water
Water mains(miles) 635 720 714 566
Fire hydrants - - - -
Storage capacity(thousands of gallons) - - - -
Wastewater
Sanitary sewers(miles) 516 506 508 529
Storm sewers(miles) 41 41 41 96
Treatment capacity(thousands of gallons) - - - -
Transit
Buses 12 12 12 12
Notes:
Data was not available for all items for all years. The City will provide more data as it becomes available.
122
EXHIBIT 1-19
Fiscal Year
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
1 1 1 1 1 1
114 114 103 105 115 114
8 8 8 8 8 8
34 34 36 36 36 36
585 587 515 529 514 514
7,926 7,922 7,976 8,203 7,958 8,084
102 98 102 104 104 104
1,200 1,200 1,200 1,200 1,200 1,200
47 47 47 40 39 39
1 1 1 1 1 1
830 846 720 720 572 572
6,000 6,019 2,264 2,264 2,545 2,547
14,000 21,500 21,000 22,500 37,000 37,000
529 531 538 550 543 543
96 96 117 117 97 97
56,600 21,410 21,410 22,800 21,410 24,410
12 12 12 12 14 14
Graphics
EXHIBIT J-1
CITY OF WICHITA FALLS , TEXAS
CASH AND INVESTMENTS
160
140
120 �
0 O 100
E
80
L
60
i O
40
20
0 ---- -
2007 -
2008
2009 -" ....
September 30, 2010 2011
(UNAUDITED)
123
EXHIBIT J-2
CITY OF WICHITA FALLS , TEXAS
TOTAL BONDS PAYABLE
----------------------
-------
200 ---------- -----
c
0
L
O
r)
150
2007 _
2008
2009
2010
2011
September 30,
(UNAUDITED)
124
EXHIBIT J-3
CITY OF WICHITA FALLS , TEXAS
GENERAL OBLIGATION BONDS PAYABLE
25
20
U)
c
O
15
C
U)
10
O -------------
Q
5
2007
2008 --- _
2009 - -
2010
September 30, 2011
(UNAUDITED)
125
EXHIBIT J-4
CITY OF WICHITA FALLS , TEXAS
REVENUE BONDS PAYABLE
200 -- --- --- -------- -- --- --------------
175
150
cn -
O 125 -- - -
--
100 ---------- --
-
c
75
O
50
i
25
0 �- ---
2007 -- /
2008 -- - ---- -
2009 - ---__
2010
September 30, 2011
(UNAUDITED)
126
P?Ioo
EXHIBIT J-6
CITY OF WICHITA FALLS , TEXAS
COMPARISON OF TAX LEVY AND COLLECTIONS
30
25
20
�O -
i �
15 i
U)
ca
10
0
5
t
0 -
2003 2004
2005 2006 - Tax Levy
2007
2008 Tax...
2009
Years Ended September 30, 2010 2011
aTax Collections aTax Levy -
(UNAUDITED)
128
EXHIBIT J-7
CITY OF WICHITA FALLS, TEXAS
REVENUES BY SOURCE — FYE 9/30/11
Fines and forfeitures
1%
4K.4K.4K. Charges for services
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N, Licenses andpermits
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(UNAUDITED)
129
EXHIBIT J-8
CITY OF WICHITA FALLS, TEXAS
EXPENDITURES BY FUNCTION - FYE 9/30/11
Administrative Services Police
14% 13%
Debt Service
6%
Fire
Capital Outlay 8%
5°/Q Parks and Recreation
4%
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11% 140,
Health Public Works
3%
27%
(UNAUDITED)
130
EXHIBIT J-9
CITY OF WICH ITA FALLS , TEXAS
GENERAL GOVERNMENTAL REVENUES (GENERAL FUND ONLY)
65
60
55
50 -----
u 45
O 40
E 35
�- 30
25
20
15
10
5
0 --
2002
2003 2004 -
2005
2006 2007 ~
2008
2009
Years Ended September 30, 2010 2011
(UNAUDITED)
131
I
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