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2023-2024 Annual Conprehensive Financial Report CITY OF WICHITA FALLS, TX ANNUAL . ., .., , - .... COMPREHENSIVE - , w r FINANCIAL y ' . A4 'e 11 ' ' 9 ■'N a IE ,, ,,,,,, , ..,,,,-,...,A REPORT ' 1 (.„,,, , ! FOR FISCAL YEAR ENDED -.4k . L.SEPTEMBER 30, 2024 � � '~ atig .► M •ww� gym, �a ,� ,� M 1, I 11A?► w' , e • +i. _ _, . . yx . filialaillialltr..anommomw * , MCP 1 a51(5 • . , ��r. TEXAS I ` /}�����/�S Qom' �,/♦,�/�/�, ���777�.�1 e�}�� Qom' / .... ' • �� MrL��� N. • ✓itie5A1v/•4eiden Opro tWWtfe/. J '-� a'^.*�,w',: rur I 1 1 ^��t e' 1 11 r' i 1 1 \ e <<t 1 1 1 k�`f t 1 , ® , Contact A., 'k 940-761-7462 www.wichitafallstx.gov CITY OF WICHITA FALLS, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS Exhibit Page INTRODUCTORY SECTION Letter of Transmittal i-xii GFOA Certificate of Achievement xiii Organizational Chart xiv City Council& List of Principal Officials xv-xvi FINANCIAL SECTION Independent Auditor's Report 1-3 Management's Discussion and Analysis(Required Supplementary Information) 4-13 BASIC FINANCIAL STATEMENTS: Statement of Net Position A-1 14 Statement of Activities A-2 15 Balance Sheet-Governmental Funds A-3 16 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position A-4 17 Statement of Revenues, Expenditures and Changes in Fund Balances- Governmental Funds 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 19-20 Statement of Net Position- Proprietary Funds A-7 21-22 Statement of Revenues, Expenses and Changes in Net Position- Proprietary Funds A-8 23 Statement of Cash Flows- Proprietary Funds A-9 24-25 Statement of Fiduciary Net Position A-10 26 Statement of Changes in Fiduciary Net Position A-11 27 Notes to the Financial Statements 28-69 REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule-General Fund B-1 70 Schedule of Changes in Net Pension Liability and Related Ratios— Texas Municipal Retirement System B-2 71 Schedule of Contributions—Texas Municipal Retirement System B-3 72 Schedule of Changes in Net Pension Liability and Related Ratios— Wichita Falls Firemen's Relief and Retirement Fund B-4 73 Schedule of Contributions—Wichita Falls Firemen's Relief and Retirement Fund B-5 74 Schedule of Changes in Net OPEB Liability and Related Ratios— City of Wichita Falls Retiree Health Care Plan B-6 75 Schedule of Contributions—City of Wichita Falls Retiree Health Care Plan B-7 76 Notes to the Required Supplementary Information 77-78 CITY OF WICHITA FALLS, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS(CONT'D.) Exhibit Page COMBINING FINANCIAL STATEMENTS: Nonmajor Governmental Funds: Combining Balance Sheet C-1 79 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 80 Budgetary Comparison Schedule—Community Development Block Grant Fund C-3 81 Budgetary Comparison Schedule—Section 8 Housing Fund C-4 82 Budgetary Comparison Schedule—Home Investment Partnership Agreement Fund C-5 83 Budgetary Comparison Schedule—MPEC/Hotel/Motel Tax Fund C-6 84 Budgetary Comparison Schedule—Hotel/Motel Venue Tax Fund C-7 85 Budgetary Comparison Schedule—Golf Fund C-8 86 Budgetary Comparison Schedule—Debt Service Fund C-9 87 Nonmajor Enterprise Funds: Combining Statement of Net Position D-1 88 Combining Statement of Revenues, Expenses and Changes in Fund Net Position D-2 89 Combining Statement of Cash Flows D-3 90-91 Internal Service Funds: Combining Statement of Net Position E-1 92 Combining Statement of Revenues, Expenses and Changes in Fund Net Position E-2 93 Combining Statement of Cash Flows E-3 94 Component Units: Combining Statement of Net Position F-1 95 Combining Statement of Activities F-2 96 SUPPORTING SCHEDULES: Combined Schedule of Bonded Debt and Interest Maturities G-1 97 Combined Schedule of Bonds Payable G-2 98-102 Debt Service Coverage—Revenue Bonds G-3 103 Capital Assets Used in the Operation of Governmental Funds- Schedule By Function and Activity G-4 104 Capital Assets Used in the Operation of Governmental Funds- Schedule of Changes By Function and Activity G-5 105 Regional Airport Fund—Capital Assets and Accumulated Depreciation G-6 106 Kickapoo Airport Fund—Capital Assets and Accumulated Depreciation G-7 107 Transit Fund—Capital Assets and Accumulated Depreciation G-8 108 Stormwater Drainage Fund-Capital Assets and Accumulated Depreciation G-9 109 Sanitation Fund—Capital Assets and Accumulated Depreciation G-10 110 CITY OF WICHITA FALLS, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS(CONT'D.) Exhibit Page Water and Sewer Fund—Capital Assets and Accumulated Depreciation G-11 111 Waterpark Fund—Capital Assets and Accumulated Depreciation G-12 112 Fleet Maintenance Fund—Capital Assets and Accumulated Depreciation G-13 113 Duplicating Services Fund—Capital Assets and Accumulated Depreciation G-14 114 Information Technology Fund—Capital Assets and Accumulated Depreciation G-15 115 Wichita Falls Economic Development Corporation—Capital Assets and Accumulated Depreciation G-16 116 Wichita Falls 4B Sales Tax Corporation—Capital Assets and Accumulated Depreciation G-17 117 STATISTICAL SECTION (UNAUDITED) Net Position By Component—Last Ten Fiscal Years H-1 118 Changes in Net Position—Last Ten Fiscal Years H-2 119-120 Fund Balances,Governmental Funds—Last Ten Fiscal Years H-3 121 Changes in Fund Balances,Governmental Funds—Last Ten Fiscal Years H-4 122 Tax Revenues By Source,Governmental Funds—Last Ten Fiscal Years H-5 123 Assessed and Estimated Actual Value of Taxable Property—Last Ten Fiscal Years H-6 124 Direct and Overlapping Property Tax Rates—Last Ten Fiscal Years H-7 125 Principal Property Taxpayers—Current Year and Nine Years Ago H-8 126 Property Tax Levies and Collections—Last Ten Fiscal Years H-9 127 Ratios of Outstanding Debt by Type—Last Ten Fiscal Years H-10 128 Ratios of General Bonded Debt Outstanding—Last Ten Fiscal Years H-11 129 Direct and Overlapping Governmental Activities Debt H-12 130 Computation of Legal Debt Margin—Last Ten Fiscal Years H-13 131 Pledged Revenue Coverage—Water and Sewer Revenue Bonds— Last Ten Fiscal Years H-14 132 Demographic Statistics—Last Ten Fiscal Years H-15 133 Principal Employers—Current Year and Ten Years Ago H-16 134 Full-Time Equivalent City Government Employees by Function/Program— Last Ten Fiscal Years H-17 135 Operating Indicators by Function/Program—Last Ten Fiscal Years H-18 136 Capital Asset Statistics by Function/Program—Last Ten Fiscal Years H-19 137 Graphics: Cash and Investments I-1 138 Total Bonds Payable 1-2 139 General Obligation Bonds Payable 1-3 140 Revenue Bonds Payable 1-4 141 General Fund Equity 1-5 142 Comparison of Tax Levy and Collections 1-6 143 Revenues by Source—FYE 9/30/24 1-7 144 Expenditures by Function—FYE 9/30/24 1-8 145 General Governmental Revenues(General Fund Only) 1-9 146 General Governmental Expenditures(General Fund Only) 1-10 147 INTRODUCTORY SECTION 11 -11-1 TEXAS FINANCE DEPARTMENT Rhte es4olaeen Orrortioaftw March 24, 2025 The Honorable Mayor, Members of the City Council, City Manager and Citizens of Wichita Falls, TX We are pleased to submit the Annual Comprehensive Financial Report of the City of Wichita Falls, TX for the fiscal year ended September 30, 2024, together with the opinion of our independent certified public accountants, Edgin, Parkman, Fleming & Fleming, PC, whose report is included. The Finance Department prepared this report to present the financial position of the City. The financial statements and supporting schedules have been prepared in accordance with generally accepted accounting principles and meet the requirements of the State of Texas and the City Charter. Management assumes full responsibility for the completeness, fairness, and reliability of the information contained in this report, based on a comprehensive framework of internal controls established for this purpose. We believe the data presented here is accurate in all material respects. It is presented to fairly set forth the financial position and results of operation of the City, as measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Edgin, Parkman, Fleming & Fleming, PC, issued an unmodified opinion on the City's financial statements for the year ended September 30, 2024. The Independent Auditor's Report may be found on page 1 of this document. Management's Discussion and Analysis (MD&A) immediately follows the Independent Auditor's Report in this document. The MD&A provides additional detail and a narrative overview and analysis of the financial statements. It should be read in conjunction with the Basic Financial Statements and the Notes to the Basic Financial Statements. CITY OF WICHITA FALLS PROFILE The City of Wichita Falls,the home of Sheppard Air Force Base, is located in north-central Texas. The City was incorporated in 1889 and now encompasses 70.1 square miles. Wichita Falls is linked to major southwestern, western, and mid-western cities by Interstate 44, U.S. Highways 82, 281, 277, 287, and Texas State Route 79.The city is approximately 130 miles northwest of the Dallas/Fort Worth Metroplex, 15 miles from the Red River that marks the Texas/Oklahoma border, and 125 miles south of Oklahoma City.The city is located in the crosstimbers area of the gently rolling north-central plains and is crossed by the Wichita River. Due to the city's geographic location, Wichita Falls serves as a regional economic hub for North Texas and South-Central Oklahoma. Wichita Falls is the county seat of Wichita County and a major population center in North Texas. The population of Wichita Falls is 102,691 according to the 2023 US Census Bureau estimate. ECONOMIC CONDITION AND ACTIVITY Wichita Falls has successfully diversified its economy to include new manufacturing,government, medical services, retail, and service-related commerce.This diversification is in addition to the more typical North Texas industries of agriculture and oil and gas production. The Wichita Falls Metropolitan Statistical Area (MSA) houses a robust manufacturing sector with many companies having employment in excess of 100 persons. The MSA covers three North Texas counties of Archer, Clay, and Wichita. The largest portion of the MSA production includes Health, Social Services, and Manufacturing.The total population of the MSA is 149,947. The Total Gross Domestic Product (GDP) of the Wichita Falls MSA totaled $8,256,094 in 2023 which was a 8.8%increase from 2022. The local economy has experienced significant growth in the last three years. Total Gross Domestic Product for Wichita Falls, TX (MSA) In Billions of Dollars Source:U.S.Bureau of Economic Analysis $8.3 $7.6 $6.5 $6.5 $6.9 ■ 2019 2020 2021 2022 2023 The unemployment rate for the Wichita Falls MSA was 3.5% in December 2024. This is down from a high of 10.2% in April of 2020. The area's largest employers include Sheppard Air Force Base, United Regional Health Care System, Wichita Falls ISD, Midwestern State University, and North Texas State Hospital. The economy is based on mineral production, retail trade, manufacturing, agribusiness, and government installations. Principal sources of agricultural income include cattle, cotton, and wheat. The City has several institutions of higher learning, a strong international presence through Sheppard Air Force Base, an eager workforce,all with a community spirit geared toward family,friends,and a desire to see that this thriving city continues to grow and prosper. The central business district is 5 miles from Sheppard Air Force Base. Sheppard Air Force Base was established in 1941 and is the most diverse training installation for the Air Force. The base is home to the Air Force's largest technical training wing and Euro-NATO Joint Jet Pilot Training program, which trains combat pilots for 14 NATO partners. According to an economic impact analysis produced by the Texas ii Comptroller, Sheppard Air Force Base contributed at least$3.2 billion to the Texas economy in 2023.The base employs approximately 17,801 active duty and civilian personnel. The City operates a Multi-Purpose Events Center (MPEC), which includes a coliseum, exhibit hall, and an agricultural arena/show barn. The City collaborated with a private investor to complete a hotel and convention center. This collaboration will include a privately-owned hotel with a private investment of over$48 million and a public conference center, supported with 4B Sales Tax funds.The grand opening of the facility was celebrated in October of 2023. CITY SERVICES AND ORGANIZATION OF THE GOVERNMENT The City of Wichita Falls is a Council-Manager form of government organized under the Constitution and Laws of the State of Texas. The City Council is comprised of five members elected from separate districts, one member at large, and an elected Mayor. 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 a full range of municipal services to the community.These services include public safety, fire protection, public works, health and welfare, parks and recreation, cemeteries, library, public improvement, engineering, planning and zoning, and general administrative services. As part of public works services, the City provides water, sewer, and sanitation for its citizens. The City also provides a full range of transportation options, including bus service, a regional and municipal airport, and a trolley. All funds included within the Financial Section of this report are considered to be financially accountable by the City and its elected and appointed officials. The financial statements of the City include all governmental activities, business-type activities, organizations, and functions as required by generally accepted accounting principles. The criteria considered in determining which activities are reported include: the organization's legal status, appointment of the organization's boards, the City's ability to impose its will on the organization, the ability to impose a financial benefit/burden on the City, and fiscal dependency by the organization on the City. The criteria used by the City for including activities in preparing its financial statements are in conformity with Governmental Accounting Standards Board (GASB) Statement 14, "The Financial Reporting Entity," as amended by Statement 61. The City promotes economic development efforts for the benefit of Wichita Falls. Under Chapter 312 of the Texas Tax Code, the City is authorized to enter into Tax Abatement Agreements for commercial- industrial and residential purposes. Three areas of the City are designated as Reinvestment Zones(#2,#3, and #4) which capture increments of growth in real property values which are then used for public improvements in the zoned area. The public improvements in these zones are expected to encourage new commercial investment and revitalization of the targeted areas. The City also promotes economic development through cooperation with the Wichita Falls Economic Development Corporation (4A) and the Wichita Falls 4B Sales Tax Corporation which operate under the authority of Vernon's Civil Statutes, Article 5190.6. The three reinvestment zones and the two economic development corporations are legally separate entities from the City; however, the City is considered to be financially accountable for their operations. These five entities are presented as Discretely Presented Component Units and more information related to their finances can be found on pages 95-96. iii FINANCIAL INFORMATION & FINANCIAL POLICY A further discussion of the City's Financial Policies may be found in the Notes to the Basic Financial Statements included in this document beginning on page 28.The City's financial direction begins with the City's Charter, which is the basis for all financial policies the City implements. The City maintains financial policies for general operations, which include policies for financial management and fund balances, budget compliance, debt issuance and management, accounts payable, water service, and purchasing, among others. Additional information about financial policies may be found in the City's Adopted Operating Budget in the Policy Statement section. In developing and evaluating the City's accounting system, the City Manager considers the adequacy of internal control as deemed appropriate. 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. 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 department, class, and fund level by the Finance Department through the use of an integrated enterprise resource planning solution. All legally required funds are budgeted annually. In instances when budgetary transfers are necessary, management control of the operating budget is maintained at the fund and department level.A summary overview of the City's budget process is presented in the graphic below. The process starts in March and concludes with Budget Adoption in September. The City's fiscal year runs from October 1 to September 30. Unencumbered appropriation balances lapse at year-end and are not carried forward to new budget periods. Open encumbrances are reported as reservations of fund balance at September 30, 2024, and related appropriations are carried forward to the new fiscal year through a supplemental budgetary allocation. The City has a fund balance policy in place for the General Fund, Water/Sewer Fund, and the Sanitation Fund. The policy requires the City to maintain at least 20%of expenditures in unassigned fund balance in each fund. If funds fall below these percentages, plans are created to replenish these funds. These financial statements reflect that the policy has been followed in all three funds. The City also 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, 2024,the current ratio of general bonded debt outstanding to the assessed value of all taxable property is .48%. The major governmental funds are the General Fund and the American Rescue Plan Act(ARPA) Fund. The major enterprise funds are the Water and Sewer Fund and the Sanitation Fund. Of the four major funds, ARPA is the only one that is not included in the annual budget appropriation. The following table lists each of the funds appropriated as part of the annual operating budget. iv Funds Appropriated in the Annual Operating Budget Fund Fund Class Fund Type General Fund Governmental General Fund Debt Service Fund Governmental Debt Service Community Development Block Grant Governmental Special Revenue Section 8 Housing Fund Governmental Special Revenue Home Investment Partnership Agreemei Governmental Special Revenue MPEC/Hotel/Motel Tax Governmental Special Revenue Hotel/Motel Venue Tax Governmental Special Revenue Airport Improvement Grant Governmental Special Revenue Golf Fund Governmental Special Revenue Miscellaneous Special Revenue Governmental Special Revenue Water&Sewer Fund Proprietary Enterprise Water&Sewer Capital Fund Proprietary Capital Microfiltration and Reverse Osmosis Proprietary Capital Lake Ringgold Fund Proprietary Capital Sanitation Fund Proprietary Enterprise Regional Airport Fund Proprietary Enterprise Kickapoo Airport Fund Proprietary Enterprise Transit Fund Proprietary Enterprise Storm Water Fund Proprietary Enterprise Waterpark Fund Proprietary Enterprise Fleet Fund Proprietary Internal Service Information Technology Fund Proprietary Internal Service Duplicating Services =und Proprietary Internal Service GENERAL GOVERNMENT FUNCTIONS The City's two largest revenue sources are property tax(ad valorem tax) and sales tax. The City Council is responsible for adopting a tax rate annually. All eligible property within the City is subject to assessment, levy, and collections of a continuing, direct ad valorem tax. The City Council works closely with City staff to analyze and adopt rates that assist the City, the tax payer and the community at large. The following discussion highlights the property and sales tax information for the next fiscal year. As a reminder, the City may levy taxes only in accordance with the budget. The tax rate consists of two components, the amount of taxes to pay maintenance and operation expenditures and the amount of taxes to pay debt service(interest and sinking).The table below shows the total of each over the past five v years. The City's property tax rate during the 2024 fiscal year was 0.680000 cents per $100 of assessed value. Property Tax Rate Fiscal Year M&O I&S Total Rate $Change %Change 2020 0.721571 0.041752 0.763323 -0.033 -4.6% 2021 0.722736 0.040587 0.763323 0.000 0.0% 2022 0.726565 0.034363 0.760928 -0.002 -0.3% 2023 0.661483 0.032838 0.694321 -0.067 -8.8% 2024 0.649853 0.030147 0.680000 -0.014 -2.1% The adopted total tax rate is applied to the total Certified Value of the City to generate the total tax levy. This year the City saw significant increases in the property values. For 2024, the property tax rate generated approximately $47.7 million in revenues, of this amount $45.8 million was received into the City's General Fund for general city operation. The property tax base for FY 2025 is$7.7 billion, which is a 6.25% increase from the $7.2 billion tax base in FY 2024. Over the past five years, the City has seen an average annual growth rate of 8% in property values. Property Tax Values (in Billions) $7.671 $7.220 $6.596 $5.456 $5.808 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 The City receives 2.0%of the sales tax collected within City limits. During fiscal year 2024,the City collected $30.7 million in sales taxes for general operations. The City ended the year with sales tax collections approximately 1% lower than the prior year. These collections do not include the sales tax, which is collected, and directed, to the City's discretely presented component units as those funds are voter- approved for a specific and dedicated purpose outside of general city use. In 1998, voters in Wichita Falls approved a %-cent economic development sales tax. The passage of the sales tax for economic development created two separate corporations, the Wichita Falls Economic Development Corporation (WFEDC), previously referred to as a 4A Corporation, and the 4B Sales Tax Corporation. The WFEDC was created to fund industrial development projects, manufacturing, research, and development. These funds may be used to fund military base realignment,job training classes, and public transportation. The 4B Corporation may fund all projects the 4A Corporation may fund, in addition to parks, museums, sports facilities, conference facilities and affordable housing opportunities. Sales tax collected in accordance with the voter-approved %-cent economic development sales tax totaled $10,219,548 and is divided evenly between the two separate sales and economic development corporations for a total of$5,109,774 each.These corporations are discretely presented component units vi of the City. A further discussion of component units may be found in the Notes to the Basic Financial Statements, beginning on page 28 of this document. ARPA FUNDS: The City of Wichita Falls received $29,091,650 in American Rescue Plan Act Funds. The funds were received in equal installments May of 2021 and in May of 2022. The City waited for final US Treasury Guidance on expenditure of the funds to make final decisions regarding use. Following 3 public meetings, the City Council approved a non-binding resolution as of June 14, 2022 which set forward their plan for expenditure of the funds.ARPA funds have been spent for community development including$1,500,000 to nonprofit organizations, $250,000 to the Wichita Falls Alliance for Arts and Culture, and $100,000 to the Helen Farabee Center. Expenditures also included $3,300,000 for Softball Complex Turf replacement to help generate economic development through sports tourism. As of September 30, 2024, the ARPA funds have generated $2,095,795 in interest income. On February 20, 2024, the City Council approved a contract for the renovation of Memorial Auditorium with a total project cost of $19,089,745. The full amount of funds received have been allocated to existing projects and the funds are on pace to be spent by December 31, 2026. MAJOR INITIATIVES FOR FISCAL YEAR 2024: The fiscal year 2024 budget provided an opportunity for the City Council to lower the City's property tax rate as the local economy continued to experience above average property appreciation. The budget continued current service levels despite continued inflation. The budget reduced the property tax rate by 1.4 cents or 2.1%from 0.6943 to 0.6800. The budget increased employee wages by 6.5%for civil service and 6% for non-civil service and increased the City's contribution to the Firefighter's Pension Fund. The budget also invested over $30 million for infrastructure replacement and capital improvement projects. The budget also set aside $10 million in excess General Fund Reserves for future capital projects. STRATEGIC PLANNING In January 2024,the City Council and City staff met to develop an updated strategic plan. The City Council identified areas of focus as(1)Accelerate Economic Growth, (2) Provide Quality Infrastructure, (3)Actively Engage and Inform the Public, and (4) Optimize Engagement with the City and City Services. The detailed plan included 32 objectives that can be found on the City's website.The new plan was adopted by the City Council on April 2, 2024. FY 2025 BUDGET HIGHLIGHTS Adopted Operating Budget The City's Operating Budget for the fiscal year ended September 30, 2025 (FY 2025) was adopted by the City Council on September 3, 2024. The revenue and expenditures across all funds were budgeted at $242,024,764 which was an increase of $9,072,408 or 3.89% from the previous year's budget. This increase was primarily due to increased compensation for personnel and increased capital expenditures. Revenues Two main sources of general revenue in the City's budget are Property Taxes and Sales Taxes which provide funding for many City services including Police, Fire, and Health. Property Tax revenue was vii budgeted at$52,125,970 for FY 2025 which was a 6.95%increase in anticipated revenues due to increased property market values, new property added to the tax base,and an increased tax rate. The City increased the property tax rate by 0.71%from .680000 to .684800. Sales Tax Revenue was budgeted at$30,903,921 which was a 2.59%decrease from the previous year's budget. Revenue from Service Charges was budgeted at $100,055,181 which was a 3.12% increase from the previous year's budget. The Water & Sewer, Sanitation, and Stormwater funds receive the majority of their revenues from service charges on each utility bill. The FY 2025 budget included a 2.5% increase in retail water, sewer, and sanitation rates to support the increased cost of infrastructure and maintain market competitive salaries. FY 24 FY 25 FY 23 Adopted Adopted Revenue Source Actual Budget Budget Difference %Diff. Property Taxes 44,719,973 48,739,569 52,125,970 3,386,401 6.95% Sales Tax 30,995,258 31,725,000 30,903,921 (821,079) -2.59% Franchise Fees 5,912,238 5,527,634 5,979,706 452,072 8.18% Payments in Lieu of Taxes 1,573,379 1,573,446 1,576,000 2,554 0.16% Other Tax Revenue 3,631,028 3,341,500 3,515,482 173,982 5.21% Service Charges 92,041,730 97,026,937 100,055,181 3,028,244 3.12% Licenses & Permits 1,994,008 2,049,700 2,114,105 64,405 3.14% Fines & Forfeitures 3,008,785 2,940,400 3,178,200 237,800 8.09% Intergovernment Rev. 13,646,995 12,378,000 13,532,690 1,154,690 9.33% Contributions 5,363,752 1,981,356 2,154,852 173,496 8.76% Interest Income 5,487,659 5,433,200 5,436,000 2,800 0.05% Misc. Revenues 9,221,699 5,930,401 7,051,119 1,120,718 18.90% Operating Revenues 217,596,504 218,647,143 227,623,226 8,976,083 4.11% Transfer In 18,583,998 7,942,567 5,443,345 (2,499,222) -31.47% Oth. Fin. Sources - 6,362,646 8,958,193 2,595,547 40.79% Consolidated Revenues 236,180,502 232,952,356 242,024,764 9,072,408 3.89% Budget Expenditures Personnel expenses make up the largest category of spending at 46%of total expenditures. Utilities and Other Services like professional fees and fleet maintenance costs are 11.9%of the total budget. viii FY 24 FY 25 FY 23 Adopted Adopted Expenditures Actual Budget Budget Difference %Diff. Personnel Services 95,645,696 104,741,917 110,598,663 5,856,746 5.59% Supplies 14,717,586 15,838,944 16,133,920 294,976 1.86% Maintenance & Repair 10,296,703 10,378,043 10,534,680 156,637 1.51% Utilities/Other Sery 28,776,487 28,573,613 28,702,379 128,766 0.45% Insur& Contr Supp. 27,957,999 3,395,056 3,513,449 118,393 3.49% Debt Expenditures 7,312,177 20,030,328 19,995,351 (34,977) -0.17% Other Expenditures 12,580,787 14,494,516 15,376,576 882,060 6.09% Non Cap Improvements 78,152 414,634 391,950 (22,684) -5.47% Capital Improvements 28,722,984 30,041,703 31,410,348 1,368,645 4.56% Transfers Out 7,342,291 5,043,602 5,367,447 323,845 6.42% Total Expenditures 233,430,862 232,952,356 242,024,764 9,072,408 3.89% The City also invests in Capital Improvements which are expenditures for items that cost more than $25,000 and last longer than one year. Funding for capital improvements increased from $30,041,703 to $31,410,348. Category Amount Lake Ringgold - Federal Permitting $ 5,000,000 Water and Sewer Line Replacements 3,500,000 Water System Infrastructure 2,825,800 Street Rehab and Improvement 3,545,360 Sanitation Trucks 2,213,979 Vehicles (Fleet) 2,192,297 Stormwater System Improvements 2,173,911 Turf at Sports Complex#2 2,100,000 Venue Projects (Memorial Auditorium and MPEC) 1,583,000 Composting Grinder(Landfill) 1,370,408 Buses (Public Transportation) 1,230,000 Facility Improvements 1,139,450 All Other 2,536,233 Total $31,410,438 The Operating Budget can be found on the City's website. 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 ix 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 Uniform Guidance 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 Annual Comprehensive Financial Report for the fiscal year ended September 30, 2023. This was the 29th consecutive year that the City of Wichita Falls has achieved this prestigious award. In order to be awarded this 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. This Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive 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. The City has also earned the Distinguished Budget Award from the Government Finance Officers Association of the United States and Canada for the past four years. As stated by GFOA, "This award represents a significant achievement by the entity. It reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In order to receive the budget award, the entity had to satisfy nationally recognized guidelines for effective budget presentation." For the second year in a row, the City earned the Award for Outstanding Achievement in Popular Annual Financial Reporting for its report for the fiscal year ended September 30, 2023. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. For the 2023 Fiscal Year,we have won all three GFOA awards (Distinguished Budget Presentation Award, Certificate of Achievement for Excellence in Financial Reporting, Popular Annual Financial Reporting Award). Organizations that win all three awards are recognized as GFOA Triple Crown Winners. G�9 G�9 G�9 Gr) COA PAFR BUDGET AWARD AWARD AWARD X The City of Wichita Falls is dedicated to increasing fiscal transparency. The City participates in the Texas State Comptrollers Transparency Star program. The program recognizes government entities for going above and beyond in their transparency efforts.The program has awarded the City of Wichita Falls 3 stars for opening our books and providing information related to traditional finances, public pensions,and debt obligations. We provide clear and meaningful financial information not only by posting financial documents, but also through summaries, visualizations, and downloadable data. In October of 2024,the Comptroller's office completed a review of the program and confirmed that we continue to meet the criteria for this prestigious recognition. lb- ,,,ve"--- fhb' ...#-- '' '' TRANSPARENCY TRANSPARENCY TRANSPARENCY STAR STAR STAR N / / Texas Comptroller Texas Comptroller Texas Comptroller TRADITIONAL FINANCES DEBT OBLIGATIONS PUBLIC PENSIONS ACKNOWLEDGEMENTS I am grateful to the Mayor, City Council, City Manager,City leaders and staff for their contributions to the sound financial management of the City of Wichita Falls. We all work together to be good stewards of the public funds that are in our care. I am especially grateful to the personnel of the Finance Department whose work makes this report possible. Respectfully submitted, /f#i,did' Stephen Calvert, CPA, CPFO Chief Financial Officer xi Government Finance Officers Association Certificate for Excellence in Financial Reporting GD Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Wichita Falls Texas For its Annual Comprehensive Fuiancial Report For the Fiscal Year Ended September 30,2023 P Executive Director CEO 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 annual comprehensive financial report for the fiscal year ended September 30, 2023. This was the 29th 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 annual comprehensive 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 annual comprehensive 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. 41;c4ik, l4 CITY OF WICHITA FALLS T E X A S 8/w5A.,,es 4c/Aar-0PPry'tuseies ( Citizens I 1 ( City Council I 1 1 (Municipal Court Judge City Attorney I ( City Manager I ( City Clerk I (Assistant City Manager) (Assistant City Manager (Parks&Recreation I (Information Technology I Parks Maintenance Library ( Building Maintenance Strategic Planning Development Services MLK Center Recreation Castaway Cove l Building Inspections Code Enforcement Cemetery ( Property Administration Plannin_ Housing Champions Course at Weeks Park (Economic Development ( Neighborhood Resources I Communications and Marketing Aviation,Traffic&Transportation ( Public Works I MPEC CVB ) Airports I1MIER= Street Maintenance (Ray Clymer Exhibit Half Public Information) (Traffic Engineering 1 1 Environmental Stormwater (Kay Yeager Coliseum , ( Transportation Planning I I ( Sanitation I (Public Utilities Operations 1 (JS Bridwell Ag Center) (Fleet Maintenance I I (Memorial Auditorium ( Public Transportation Refuse Collection ( Water Distribution 1 Transfer Station 1 ( Water Purification (Human Resources I Landfill I (Wastewater Treatment ( Employee BenefitsI I ( Personnel I ( Wastewater Collections ( Risk Management I ( Finance I (Health Department) Accountin_ Purchasin_ ' " ' ry Clinical Animal Services Utili Collections Munici.al Court Wellness WIC ( Fire Department I (Police Department I Fire Marshal Division Operations Division Communi 0.erations Public Safet Trainin_ WEESSEBEITE Safety&Training ( Technical Services Investigative Operations Division) WICHITA FALLS CITY COUNCIL AS F MARCH 31, 202 4111, TIM SHORT MAYOR OOPow- es, -� ate'' mot AUSTIN COBB WHITNEY FLACK ROBERT BROOKS AT LARGE DISTRICT 1 DISTRICT 2 • . 4 poke' '119140 . JEFF BROWNING MIKE BATTAGLINO TOM TAYLOR DISTRICT 3 DISTRICT 4 DISTRICT 5 } JAMES MCKECHNIE INTERIM CITY MANAGER CITY OF WICHITA FALLS LIST OF PRINCIPAL OFFICIALS MARCH 31, 2025 TITLE NAME Mayor Tim Short Councilor At Large Austin Cobb District 1 Councilor Whitney Flack District 2 Councilor Robert Brooks District 3 Councilor and Mayor Pro Tem Jeff Browning District 4 Councilor Mike Battaglino District 5 Councilor Tom Taylor Interim City Manager James McKechnie City Attorney Kinley Hegglund Municipal Court Judge Diane Dockery City Clerk Marie Balthrop Assistant City Manager Paul Menzies Assistant City Manager Blake Jurecek Director of Human Resources Christi Klyn Chief Financial Officer Stephen Calvert Director of Public Health Amy Fagan Police Chief Manuel Borrego Interim Fire Chief Cody Melton Director of Communications, Marketing, and MPEC Lindsay Lewis Director of Public Works and Public Utilities Russell Schreiber Director of Development Services Terry Floyd FINANCIAL SECTION fa v EDGIN, PARKMAN, FLEMING & FLEMING, PC CERTIFIED PUBLIC ACCOUNTANTS MICHAEL D. EDGIN, CPA 1401 HOLLIDAY ST.,SUITE 216 • P.O. Box 750 DAVID L. PARKMAN, CPA WICHITA FALLS,TEXAS 76307-0750 A. PAUL FLEMING, CPA 11 PH.(940)766-5550 • FAX(940)766-5778 JOSHUA R. HARMAN, CPA Independent Auditor's Report on Financial Statements The Honorable Mayor and Members of the City Council City of Wichita Falls, Texas Opinions 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 (the City) as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. 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 as of September 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Wichita Falls, Texas, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information 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. 2 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining 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 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining financial statements and supporting schedules are fairly stated in all material respects in relation to the basic financial statements 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued under separate cover our report dated March 26, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Respectfully submitted, ecii4N Taki4,4-1--4zut 7 WA Az-bi C)C- Edgin, Parkman, Fleming & Fleming, PC March 26, 2025 3 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2024 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, 2024. This narrative is presented in conjunction with additional information furnished in our letter of transmittal, which is in the Introductory Section of this Annual Comprehensive Financial Report. Financial Highlights The net position of the City of Wichita Falls on September 30, 2024 was $533,245,416. The net position represents the amount that assets and deferred outflows of the City of Wichita Falls exceeded its liabilities and deferred inflows. The net position for the City increased by $29,473,242 over the prior year. This increase is a result of an increase in net position of$16,065,866 from the current fiscal year business-type activities and an increase in net position of $13,407,376 from the current fiscal year governmental activities. The unrestricted net position for Governmental Activities was ($68,343,604), while the Business-type Activities had an unrestricted net position of $59,570,047, for an overall unrestricted net position of ($8,773,557). Unrestricted net position for Governmental Activities increased by $1,791,632 from the prior year, while unrestricted net position for Business-type Activities increased by$2,487,813 from the prior year. At September 30, 2024, the City's governmental funds reported combined ending fund balances of $72,172,480. Of this amount, $50,199,237, or 70%, is available for spending at the government's discretion (unassigned fund balance). At the end of the current fiscal year, the unassigned fund balance for the General Fund was$50,432,693 or 52%of total General Fund expenditures of$97,865,476. During Fiscal Year 2024, the City's debt decreased by$8,033,017. In FY 2024, the City entered into leases for fire department equipment of$9,920,692.The City had taken steps to refinance debt in previous years as lower interest rates offered the opportunity to lower overall debt payments.Additional information on the City's debt service may be found in the Notes to the Basic Financial Statements. 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 Position (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 4 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2024 will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but not used vacation leave). The Statement of Net Position 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 deferred outflows and liabilities and deferred inflows is reported as net position. Over time, the increases or decreases in net position 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 position changed during the most recent fiscal year. It focuses on both the gross and net costs of government services. This statement includes all current year revenues and expenses. The Statement of Net Position 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. Business-type 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, regional and municipal airports, transit system, stormwater drainage improvements, fleet maintenance services, and water park operations. Component Units — Five 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, Wichita Falls Reinvestment Zone#3, and the Wichita Falls Reinvestment Zone#4. 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. 5 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2024 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 fund's 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 governmentwide statements and the information presented in the governmental fund's financial statements. The City of Wichita Falls maintains 16 individual governmental funds. Information for the General Fund and the American Rescue Plan Act Fund are presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances because they are considered major funds 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 16-20 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, regional and municipal airports, transit operations, stormwater drainage improvements, 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, the Sanitation Fund, and the Regional Airport Fund since they are considered major funds of the City. The non-major proprietary funds are combined into a single, aggregated 6 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2024 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. Custodial 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 a custodial fund used to account for property that has been abandoned or unclaimed pending escheatment to the State of Texas. 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 28-69 of this report. Government-Wide Financial Analysis The City's combined net position was $533,245,416 as of September 30, 2024, and increase of $29,018,055 or 5.8%from the prior year. The largest portion of the City's net position $515,090,128, or 96.6% 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 position, $26,929,845 represents resources that are subject to external restrictions on how they can be used. 7 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2024 Net Position (in thousands) Governmental Business-type Activities Activities Total 2024 2023 2024 2023 2024 2023 Current and Other Assets $100,697 $ 99,721 $100,718 $ 98,598 $201,415 $198,320 Capital Assets 204,985 200,240 412,285 402,067 617,270 602,307 Total Assets 305,683 299,961 513,003 500,666 818,686 800,627 Deferred Outflows of Resources 31,791 48,100 6,899 10,495 38,690 58,596 Long Term Liabilities 167,224 186,626 103,877 112,491 271,101 299,117 Other Liabilities 26,377 31,103 5,793 6,951 32,169 38,054 Total Liabilities 193,601 217,729 109,669 119,442 303,270 337,171 Deferred Inflows of Resources 19,390 18,802 1,470 144 20,860 18,945 Net Position: Net Investment in Capital Assets 178,715 170,464 336,375 323,220 515,090 493,684 Restricted 14,111 11,202 12,818 12,395 26,929 23,597 Unrestricted (68,344) (70,135) 59,570 57,082 (8,774) (13,053) Total Net Position $124,482 $111,530 $408,763 $392,697 $533,245 $504,227 8 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2024 CHANGES IN NET POSITION (in thousands) Governmental Business-type Total 2024 2023 2024 2023 2024 2023 Revenues: Program Revenues: Charges for Services 511,675 S 12,631 5 80,461 $ 76,389 5 92,136 $ 89,020 Operating Grants and Contributioi 18,749 22,509 2,347 4,606 21,096 27,115 Capital Grants and Contributions 3,689 1,452 1,107 2,274 4,797 3,726 General Revenues: Property Taxes 50,166 46,719 50,166 46,719 Sales Taxes 30,657 30,989 30,657 30,989 Other Taxes/Fees 8,919 9,244 8,919 9,244 Investment Earnings 6,103 5,296 2,047 1,652 8,150 6,948 Miscellaneous 841 943 1 29 842 972 Total Revenue 130,800 129,782 85,963 84,951 216,763 214,732 Expenses: Administrative Services 20,264 19,214 20,264 19,214 Police 31,203 30,332 31,203 30,332 Fire 25,483 25,909 25,483 25,909 Parks and Recreation 7,415 6,554 7,415 6,554 Accounting/Finance 1,109 1,062 1,109 1,062 Community Development 8,402 10,261 8,402 10,261 Public Works 10,628 9,329 10,628 9,329 Health 7,551 7,585 7,551 7,585 Traffic and Transportation 4,195 3,266 4,195 3,266 MPEC 5,177 6,049 5,177 6,049 Interest and Fees on Long-term DI 1,215 1,307 1,215 1,307 Regional Airport - 3,056 3,042 3,056 3,042 Kickapoo Airport - 1,582 1,549 1,582 1,549 Transit - 3,432 3,378 3,432 3,378 Sanitation - 13,787 11,689 13,787 11,689 Water and Sewer - 39,814 39,661 39,814 39,661 Stormwater Drainage - 1,037 1,118 1,037 1,118 Waterpark - 1.939 1.881 1.939 1.881 Total Expenses 122.644 120.868 64.646 62.317 187.290 183.185 Increase in Net Position Before Tra 8,156 8,914 21,317 22,633 29,473 31,547 Transfers 5.251 3.008 (5.251) (3.008) - - Increase in Net Position 13,407 11,921.900 16,066 19,625 29,473 31,547 Net Position-Beginning,original 111,464 99,668 392,697 374,738 504,161 474,405 Restatement (389) (59) (1,666) (389) (1,725) Net Position-End of Year,Restatec 124,482 S 111,530 540,3,763 5 392,697 5 533,245 5504,227 9 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2024 Governmental Activities—Governmental Activities increased the City's net position by$13,407,376. The increase in net position in the Governmental Activities is primarily due to lower than anticipated personnel costs due to vacancies across departments and lower than anticipated supply costs due to reduced due to slower inflation. Business-Type Activities— Business-type Activities increased the City's net position by $11,921,900. This increase is primarily due to debt payments which lowered long-term liabilities by $8,614,488. This increase was helped by higher vacancies and lower supply costs. 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, 2024, the City's governmental funds reported combined fund balances of$72,172,480, which is an increase of $5,665,397. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $50,432,693 an increase of $2,417,258 from 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 51.53% of total General Fund expenditures, while the total fund balance represents 51.96% of total General Fund expenditures. The increase in net position in the Governmental Funds is primarily due to lower than anticipated personnel costs due to vacancies across departments and lower than anticipated supply costs. The City received a total of$29.1 million in American Rescue Plan Act funds. These funds are being used for a variety of projects that address health,safety,tourism and benefits to the non-profit community.On June 14, 2022 the City Council adopted a non-binding resolution showing their support for a variety of projects for which the funds will be used. ARPA funds have been spent for community development including $1,500,000 to nonprofit organizations, $250,000 to the Wichita Falls Alliance for Arts and Culture, and $100,000 to the Helen Farabee Center. Expenditures also included $3,300,000 for Softball Complex Turf replacement to help generate economic development through sports tourism. On February 20, 2024, the City Council approved a contract for the renovation of Memorial Auditorium with a total project cost of $19,089,745. As of September 30, 2024, the ARPA funds have generated $2,095,795 in interest income. 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 position and changes in net position of the enterprise funds in these financial statements are identical with the net position and changes in net position reflected in the business-type activities in the city-wide presentation. 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, 2024,the 10 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2024 net position for the City's internal service funds was$53,803,146, an increase of$4,082,078. This change is due primarily to investment earnings of the employee benefit trust. General Fund Budgetary Highlights The final amended expenditure budget for the General Fund, including transfers out, was increased by $4,743,015 from the original fiscal year 2024 adopted budget. This increase was primarily due to the carry-forward of capital expenditures from the prior year. Revenues in the General Fund for the Fiscal Year 2024 were$99,031,285, which was$973,092 more than final budgeted revenues. Higher than anticipated investment earnings were offset by lower than anticipated Sales Tax Revenue. Expenditures in the General Fund for the fiscal year were $97,865,476 which was $9,343,222 final budgeted expenditures. Capital expenditures were $5,572,082 due to the timing of expenditures for capital assets. Capital Assets and Debt Administration Capital Assets—The City's investment in capital assets for its governmental and business-type activities as of September 30, 2024 was$617,270,432(net of accumulated depreciation). This investment in capital assets includes land, buildings, equipment, infrastructure, and construction in progress. Major capital investments during this fiscal year included the following: • Business Park Infrastructure Improvements • Fire Apparatus Replacements Across All Stations • Water and Sewer Line Replacements • Quail Creek Drainage Improvements • Street Rehab and Improvements • Memorial Auditorium Renovations from ARPA Funds Additional information on the City's capital assets can be found in Note 7 in the Notes to the Financial Statements section of this report. 11 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2024 Capital Assets,Net of Accumulated Depreciation (in thousands) Governmental Activities Business-type Activities Total 2024 2023 2024 2023 2024 2023 Land $ 11,903 $ 11,541 $ 11,072 $ 11,072 $ 22,976 $ 22,613 Land Betterments 19,172 18,063 31,849 33,123 51,020 51,185 Buildings,Systems&Improvements 45,352 43,665 319,687 323,173 365,039 366,837 Infrastructure 112,582 111,968 1,230 1,247 113,811 113,215 Machinery and Equipment 9,244 7,880 2,712 1,979 11,957 9,859 Subscription assets 558 471 - - 558 471 Motor Vehicles - - 32,716 22,566 32,716 22,566 Right-to-use leased assets - - 2,112 2,175 2,112 2,175 Construction in Progress 6,175 6,654 10,906 6,732 17,081 13,386 Totals $204,985 $ 200,240 $412,285 $ 402,067 $617,270 $602,307 Long Term Debt- As of September 30, 2024, the City had total bonded debt, notes, and capital leases outstanding of$115,297,294. During the fiscal year, the City's total debt decreased by$8,033,017. As of September 30, 2024, Moody's Investor's Service had assigned a credit rating of Aa2 for the City's General Obligation Bonds and a rating of A3 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 A+for its Water and Sewer System Revenue Bonds. Outstanding Debt at Year-End (in thousands) Governmental Business-type Total 2024 2023 2024 2023 2024 2023 General Obligation Bonds $ 21,238 $24,050 $ 5,102 $ 5,455 $ 26,340 $ 29,505 Combination Tax&Revenue Bonds 10,485 11,485 26,220 27,840 36,705 39,325 Venue Tax Revenue Bonds 2,480 2,535 - - 2,480 2,535 Utility System Revenue Bonds - - 21,415 30,250 21,415 30,250 Premiums on Bonds 961 1,221 1,031 1,894 1,992 3,115 Notes Payable 2,251 2,817 21,295 12,935 23,546 15,752 Subscription Liabilities 563 460 - - 563 460 Right-To-Use Leases - - 2,819 2,849 2,819 2,849 $ 37,978 $42,567 $77,882 $81,223 $115,860 $123,791 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, 2024, was $.680000 per$100 which means that the City has a tax margin of$1.57 per$100, and could generate up to $120,438,843 additional tax revenue a year from the present assessed valuation of $7,671,263,859 before the limit is reached. The current ratio of general bonded debt outstanding to the assessed value 12 CITY OF WICHITA FALLS, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2024 of all taxable property is .48%. Additional information about the City's long-term debt can be found in Note 12 in the Notes to the Financial Statements section of this report. Economic Factors and Next Year's Budget and Rates The total operating budget for the City includes all expenditures, revenues, and transfers anticipated in the coming year. This includes expenditures for items funded outside of the City, like federal grants for large capital projects and funds for programs received from other sources. The budget also includes the adoption of payments for debt services. The total Adopted Operating Budget for Fiscal Year 2025 is $242,024,764 which is an increase of $9,072,408 or 3.89% from the Fiscal Year 2024 Budget of $232,952,356. This increase is primarily due to increased property tax revenues from increased property values, new properties added to the tax rolls, and an increased tax rate. The fiscal year 2025 budget increased the property tax rate by 0.7% from .6800 to .6848. It committed over $31 million to infrastructure replacement and capital improvement projects while setting aside $3 million in excess General Reserve Funds to designate funds for future capital needs. The 2025 budget also included significant increases in personnel costs to help maintain competitive compensation levels. The budget increased police pay by 11%and all other employees by 5%while adding fire certification pay. Medical and dental premiums were kept level and six benefit holidays were maintained as healthcare costs continued to be lower than anticipated. The entire budget may be found on the City's website at www.wichitafallstx.gov. Moving forward into the FY 2025 budget year, the City continues to monitor forecasts of key economic indicators. Sales tax revenue have increased by 1.8%for the 12-month period through March. Property values are levelling off after several years of above average increases, and interest rates are expected to decline as the Federal Reserve projects that it will start continue to reduce interest rates over the next couple of years. The City has strong reserves and an eye to the future as staff will work to pursue the vision laid out in Strategic Plan. Requests for Information This financial report is designed to provide a general overview of the finances of the City of Wichita Falls 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 EXH I BIT A-1 CITY OF WICHITA FALLS, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30,2024 Primary Government Governmental Business-type Component Activities Activities Total Units Assets Cash and cash equivalents $ 70,515,479 $ 56,562,664 $ 127,078,143 $ 45,744,672 Investments 14,133,065 - 14,133,065 - Receivables(net): Taxes and assessments 1,427,038 - 1,427,038 - Customer and trade - 9,238,579 9,238,579 - Government agencies 11,242,320 1,502,377 12,744,697 1,706,324 Other 2,796,597 623,982 3,420,579 Internal balances (14,143,207) 14,143,207 - - Inventory 389,735 2,071,731 2,461,466 - Prepaid items 747,616 471,734 1,219,350 - Other assets 31,191 260,486 291,677 - Restricted assets: Cash and cash equivalents 13,557,675 15,842,988 29,400,663 - Capital assets not being depreciated 18,077,830 21,978,844 40,056,674 2,517,331 Capital assets net of accumulated depreciation 186,907,535 390,306,223 577,213,758 24,288,877 Total assets 305,682,874 513,002,815 818,685,689 74,257,204 Deferred Outflows of Resources Pension-related 30,251,676 5,001,836 35,253,512 - OPEB-related 1,451,414 509,425 1,960,839 - Deferred losses on bond refundings 87,729 1,388,207 1,475,936 - Total deferred outflows of resources 31,790,819 6,899,468 38,690,287 - Liabilities Accounts payable-trade 2,594,708 1,207,561 3,802,269 423 Accrued payroll 1,800,987 518,072 2,319,059 - Accrued interest payable 162,596 227,644 390,240 - Payable to government agencies 646,572 69,917 716,489 - Estimated health claims payable 1,188,114 - 1,188,114 - Other liabilities 4,320,870 730,324 5,051,194 94,037 Unearned revenue 15,662,795 - 15,662,795 - Customer deposits - 3,039,283 3,039,283 - Long-term liabilities: Portion due or payable within one year 7,982,301 13,738,674 21,720,975 665,000 Portion due or payable after one year 42,911,355 72,496,966 115,408,321 26,318,679 Net pension liability(payable after one year) 109,019,389 15,074,782 124,094,171 Net OPEB liability(payable after one year) 7,311,085 2,566,090 9,877,175 Total liabilities 193,600,772 109,669,313 303,270,085 27,078,139 Deferred Inflows of Resources Pension-related 16,926,229 605,141 17,531,370 - OPEB-related 2,464,203 864,902 3,329,105 - Total deferred inflows of resources 19,390,432 1,470,043 20,860,475 - Net Position Net investment in capital assets 178,714,840 336,375,288 515,090,128 3,813,623 Restricted for: Perpetual care(nonexpendable) 2,163,297 - 2,163,297 - Debt service(expendable) 1,782,911 12,817,592 14,600,503 - Federal grant programs(expendable) 8,371,252 - 8,371,252 - Tourism(expendable) 1,793,793 - 1,793,793 - Unrestricted (68,343,604) 59,570,047 (8,773,557) 43,365,442 Total net position $ 124,482,489 $ 408,762,927 $ 533,245,416 $ 47,179,065 See accompanying notes to the basic financial statements. 14 CITY OF WICHITA FALLS, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2024 Program Revenues Operating Charges for Grants and Functions/Programs Expenses Services Contributions Primary government: Governmental activities: Administrative services $ 20,263,581 $ 5,542,717 $ 1,886,416 Police 31,202,927 321,523 528,562 Fire 25,483,398 90,273 674,099 Parks and recreation 7,415,430 471,058 235,744 Accounting/finance 1,109,393 - - Community development 8,402,052 1,825,332 6,968,974 Public works 10,628,459 13,075 861,929 Health 7,550,956 1,122,976 3,396,737 Traffic and transportation 4,195,482 186,392 2,580,592 Multi-Purpose Events Center 5,177,255 2,101,233 35,000 Interest and fees on long-term debt 1,214,911 - 1,581,013 Total governmental activities 122,643,844 11,674,579 18,749,066 Business-type activities: Regional Airport 3,055,752 1,761,288 - Kickapoo Airport 1,581,879 1,110,856 - Transit 3,431,762 663,889 2,346,732 Sanitation 13,787,413 18,578,954 - Water and sewer 39,813,704 52,793,725 - Stormwater drainage 1,037,049 3,767,887 - Waterpark 1,938,552 1,784,687 - Total business-type activities 64,646,111 80,461,286 2,346,732 Total primary government $ 187,289,955 $ 92,135,865 $ 21,095,798 Component units: Community development $ 10,574,823 General revenues and transfers: Taxes: Property tax Sales tax Franchise fees Hotel occupancy tax Beverage tax Investment earnings Miscellaneous Transfers Total general revenues and transfers Change in net position Net position-beginning,as originally stated Restatement for correction of an error Net position-beginning,as restated Net position-ending See accompanying notes to the basic financial statements. 15 EXHIBIT A-2 Net(Expense)Revenue and Changes in Net Position Capital Primary Government Grants and Governmental Business-type Component Contributions Activities Activities Total Units $ 3,241,567 $ (9,592,881) $ - $ (9,592,881) $ - - (30,352,842) - (30,352,842) - - (24,719,026) - (24,719,026) - - (6,708,628) - (6,708,628) - - (1,109,393) - (1,109,393) - 362,500 754,754 - 754,754 - - (9,753,455) - (9,753,455) - - (3,031,243) - (3,031,243) - - (1,428,498) - (1,428,498) - 85,254 (2,955,768) - (2,955,768) - - 366,102 - 366,102 - 3,689,321 (88,530,878) - (88,530,878) - - - (1,294,464) (1,294,464) - - - (471,023) (471,023) - - - (421,141) (421,141) - - - 4,791,541 4,791,541 - 1,107,267 - 14,087,288 14,087,288 - - - 2,730,838 2,730,838 - - - (153,865) (153,865) - 1,107,267 - 19,269,174 19,269,174 - $ 4,796,588 (88,530,878) 19,269,174 (69,261,704) - $ - - - - (10,574,823) 50,166,104 - 50,166,104 1,322,649 30,656,869 - 30,656,869 10,219,548 5,523,727 - 5,523,727 - 3,025,700 - 3,025,700 - 369,980 - 369,980 - 6,103,382 2,046,798 8,150,180 2,759,161 841,076 1,310 842,386 21,877 5,251,416 (5,251,416) - - 101,938,254 (3,203,308) 98,734,946 14,323,235 13,407,376 16,065,866 29,473,242 3,748,412 111,463,713 392,697,061 504,160,774 43,430,653 (388,600) - (388,600) - 111,075,113 392,697,061 503,772,174 43,430,653 $ 124,482,489 $ 408,762,927 $ 533,245,416 $ 47,179,065 EXHIBIT A-3 CITY OF WICHITA FALLS, TEXAS BALANCE SHEET-GOVERNMENTAL FUNDS SEPTEMBER 30, 2024 Nonmajor Total General ARPA Governmental Governmental Fund Fund Funds Funds Assets Cash and cash equivalents $ 27,760,282 $ 19,124,123 $ 18,016,523 $ 64,900,928 Investments 14,133,065 - - 14,133,065 Receivables(net): Taxes and assessments 1,146,985 - 280,053 1,427,038 Other City funds 9,736,568 - - 9,736,568 Government agencies 5,440,811 - 5,801,509 11,242,320 Other 2,274,822 - 512,179 2,787,001 Inventory 354,986 - 34,422 389,408 Prepaid items 67,075 - 680,541 747,616 Other assets 1,000 - 30,191 31,191 Total assets $ 60,915,594 $ 19,124,123 $ 25,355,418 $ 105,395,135 Liabilities Accounts payable $ 1,362,369 $ 784,171 $ 253,797 $ 2,400,337 Accrued payroll 1,636,789 - 131,781 1,768,570 Payable to other City funds - 494,048 5,089,074 5,583,122 Payable to government agencies 556,397 - 90,175 646,572 Other liabilities 3,714,983 187,638 398,277 4,300,898 Claims and judgments payable 11,922 - - 11,922 Unearned revenue - 15,562,470 100,325 15,662,795 Total liabilities 7,282,460 17,028,327 6,063,429 30,374,216 Deferred inflows of resources Unavailable revenues 2,778,380 - 70,059 2,848,439 Fund balances Nonspendable: Inventory and prepaid items 422,061 - 711,322 1,133,383 Permanent Fund principal - - 2,163,297 2,163,297 Restricted for: Debt service - - 1,712,852 1,712,852 Capital projects - - 3,325,879 3,325,879 Federal and state grant programs - 2,095,796 6,275,456 8,371,252 Tourism - - 1,793,793 1,793,793 Committed for: Local projects - - 3,472,787 3,472,787 Unassigned 50,432,693 - (233,456) 50,199,237 Total fund balances 50,854,754 2,095,796 19,221,930 72,172,480 Total liabilities,deferred inflows of resources and fund balances $ 60,915,594 $ 19,124,123 $ 25,355,418 $ 105,395,135 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 POSITION SEPTEMBER 30,2024 Total fund balances-governmental funds(Exhibit A-3) $ 72,172,480 Amounts reported for governmental activities in the Statement of Net Position(Exhibit A-1) are different because: Capital assets used in governmental activities are not financial resources and therefore no reported in the funds.Capital assets at year-end consist of Gross capital assets $ 382,558,272 Related accumulated depreciation 185,050,188 197,508,084 Property taxes receivable and municipal court fines are not available to pay for current period expenditures and therefore are reported as deferred inflows of resources in the funds 2,848,439 Long-term liabilities are not due and payable in the current period and therefor( not reported as liabilities in the funds.Long-term liabilities at year-end consist of Bonds payable 34,203,128 Premiums on bonds payable 990,996 Notes payable 2,251,238 Subscription liabilities 216,510 Accrued vacation and sick leave 12,049,693 Claims and judgments payable 750,735 Accrued interest 162,596 (50,624,896) In the governmental funds financial statements,refunding losses are expended when incurred,whereas in the government-wide financial statements the losses are capitalize( and amortized. 87,729 The City's net pension liability and related deferred outflows and inflows related to it: participation in the Texas Municipal Retirement System and the Wichita Falls Firemen's Relief and Retirement Fund do not meet criteria to be reported in the governmental fund: financial statements.These items consist of: Net pension liabilities 108,082,028 Deferred outflows-pension related items (29,940,659) Deferred inflows-pension related items 16,888,600 (95,029,969) The City's net OPEB liability and related deferred outflows and inflows related to the Cit) of Wichita Falls Retiree Health Care Plan do not meet the criteria to be reported in the governmental funds financial statements.These items consist of Net OPEB liabilities 7,200,461 Deferred outflows-OPEB related items (1,429,452) Deferred inflows-OPEB related items 2,426,918 (8,197,927) 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 an( liabilities of these internal service funds are included with the governmental activities 23,765,224 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 portior of the central garage activity. (18,046,675) Total net position-governmental activities(Exhibit A-1) $ 124,482,489 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, 2024 Nonmajor Total General ARPA Governmental Governmental Fund Fund Funds Funds Revenues Taxes $ 84,573,463 $ - $ 5,087,946 $ 89,661,409 Charges for services 3,248,734 - 805,378 4,054,112 Licenses and permits 1,861,123 - - 1,861,123 Fines and forfeitures 3,284,620 - 278,246 3,562,866 Intergovernmental revenue - 6,244,571 12,852,075 19,096,646 Contributions 295,378 - 2,598,608 2,893,986 Miscellaneous revenue 5,767,967 948,921 4,310,864 11,027,752 Total revenues 99,031,285 7,193,492 25,933,117 132,157,894 Expenditures Current: Administrative services 16,310,983 369,610 1,707,180 18,387,773 Police 31,376,078 - 553,089 31,929,167 Fire 21,460,539 - 586,432 22,046,971 Parks and recreation 7,170,632 - 22,026 7,192,658 Accounting/finance 1,165,466 - 26,412 1,191,878 Community development 2,602,408 - 6,135,266 8,737,674 Public works 6,420,334 - 13,037 6,433,371 Health 4,237,708 97,670 3,510,079 7,845,457 Traffic and transportation 2,043,032 36,179 1,320,135 3,399,346 Multi-Purpose Events Center - - 4,462,383 4,462,383 Capital outlay 5,078,296 5,741,112 81,655 10,901,063 Debt service: Principal retirement - - 3,866,606 3,866,606 Interest and paying agent fees - - 1,405,349 1,405,349 Total expenditures 97,865,476 6,244,571 23,689,649 127,799,696 Excess of revenues over(under)expenditures 1,165,809 948,921 2,243,468 4,358,198 Other Financing Sources(Uses) Issuance of subscription liabilities - - 73,405 73,405 Transfers in 3,288,409 - 2,086,199 5,374,608 Transfers out (2,264,583) - (1,421,040) (3,685,623) Total other financing sources(uses) 1,023,826 - 738,564 1,762,390 Net change in fund balance 2,189,635 948,921 2,982,032 6,120,588 Fund balance- beginning,as previously reported 48,665,119 1,146,875 16,628,498 66,440,492 Restatement for correction of an error - - (388,600) (388,600) Fund balance- beginning,as restated 48,665,119 1,146,875 16,239,898 66,051,892 Fund balances-ending $ 50,854,754 $ 2,095,796 $ 19,221,930 $ 72,172,480 See accompanying notes to the basic financial statements. 18 EXHIBIT A-6 (Page 1 of 2) 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 30,2024 Net change in fund balances-total governmental funds(Exhibit A-5) $ 6,120,588 Amounts reported for governmental 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 $ 10,612,856 Depreciation expense for the year 8,302,672 2,310,184 Donated capital assets are not recorded as revenues in the governmental funds.In the the Statement of Activities,the value of the assets are added to capital assets and the contribution is recorded as a capital contribution. 447,754 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 inflows increased by this amount this year. 93,893 The issuance of long-term debt provides current financial resources to governmental funds.However, the issuance increases long-term liabilities in the Statement of Net Position.The City issued subscription liabilities during 2023-2024. (73,405) 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 Position.Principal payments in 2023-2024 were: 4,744,866 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 funs financial statements,but are included in the government-wide financial statements.The changes in these long-term obligations were: Accrued vacation and sick leave (1,332,861) Claims and judgments payable 34,104 (1,298,757) 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 30,2023 176,960 Accrued interest at September 30,2024 162,596 14,364 Amortization of deferred losses on refundings is only reported in the government-wide financial statements.Current year amortization was: (53,728) The City participates in two defined benefit pension plans.Contributions to the plans are expenditure_ at the fund level when payments are due.At the government-wide level,pension expenses are recognized on an actuarial basis.Payments were more than the actuarial expense in the current year. (1,413,214) The City sponsors an OPEB plan for retiree health care.Contributions to the plan are expenditures at the fund level when payments are due.At the government-wide level,pension expenses are recognized on an actuarial basis.Payments were more than the actuarial expense in the current year. 568,171 See accompanying notes to the basic financial statements. 19 EXHIBIT A-6 (Page 2 of 2) 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 30,2024 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. 2,557,013 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. (610,353) Change in net position of governmental activities(Exhibit A-2) $ 13,407,376 See accompanying notes to the basic financial statements. 20 EXHIBIT A-7 (Page 1 of 2) CITY OF WICHITA FALLS, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30,2024 Enterprise Funds Non major Water and Sanitation Enterprise Internal Sewer Fund Fund Funds Total Service Funds Assets Current assets: Cash and cash equivalents $ 23,768,577 $ 13,947,079 $ 13,373,766 $ 51,089,422 $ 11,087,793 Restricted cash and cash equivalents 13,734,708 - 2,108,280 15,842,988 13,557,675 Receivables(net): Customer and trade 6,870,545 1,966,899 401,135 9,238,579 - Government agencies 71,859 - 1,430,518 1,502,377 - Other 518,894 19,978 84,518 623,390 10,188 Inventory 1,229,907 - 178,093 1,408,000 663,731 Prepaid items (29,738) - 23,222 (6,516) 478,577 Other assets - - 260,486 260,486 - Total current assets 46,164,752 15,933,956 17,860,018 79,958,726 25,797,964 Long-term assets: Capital assets,net of accumulated depreciation 260,853,748 10,750,773 106,064,664 377,669,185 42,093,163 Total long-term assets 260,853,748 10,750,773 106,064,664 377,669,185 42,093,163 Total assets 307,018,500 26,684,729 123,924,682 457,627,911 67,891,127 Deferred Outflows of Resources Pension-related 2,771,397 1,131,467 609,698 4,512,562 800,292 OPEB-related 302,557 111,768 46,863 461,188 70,198 Deferred losses on bond refundings 1,388,207 - - 1,388,207 - Total deferred outflows of resources 4,462,161 1,243,235 656,561 6,361,957 870,490 See accompanying notes to the basic financial statements. 21 EXHIBIT A-7 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30,2024 Enterprise Funds Non major Water and Sanitation Enterprise Internal Sewer Fund Fund Funds Total Service Funds Liabilities Current liabilities: Accounts payable-trade 646,639 71,105 239,979 957,723 444,209 Accrued payroll 273,747 119,098 75,266 468,111 82,378 Accrued vacation and sick leave 574,243 206,451 102,412 883,106 211,590 Payable to other City funds - - 3,691,163 3,691,163 462,283 Payable to government agencies 4 70,687 (774) 69,917 - Estimated health claims payable - - - - 1,188,114 Other liabilities 383,777 90,590 255,957 730,324 19,972 Payable to U.S.Government-current maturity 50,303 - - 50,303 - Right-to-use leases-current maturities - - 31,302 31,302 - Notes payable-current maturities 894,305 - - 894,305 850,611 Bonds payable-current maturities 11,287,456 - - 11,287,456 - Subscriptionliabilities-current maturities - - - - 111,621 Accrued interest-revenue bonds 227,644 - - 227,644 - Total current liabilities 14,338,118 557,931 4,395,305 19,291,354 3,370,778 Long-term liabilities: Right-to-use leases,less current maturities - - 2,788,165 2,788,165 - Notes payable,less current maturities 11,128,191 - - 11,128,191 8,371,470 Bonds payable,less current maturities 42,480,130 - - 42,480,130 - Subscription liabilities,less current maturities - - - - 234,656 Estimated liability for landfill closure and post-closure care costs - 7,332,168 - 7,332,168 - Customer deposits 3,039,283 - - 3,039,283 Net pension liability 8,352,574 3,410,071 1,837,538 13,600,183 2,411,960 Net OPEB liability 1,524,048 562,999 236,064 2,323,111 353,603 Total long-term liabilities 66,524,226 11,305,238 4,861,767 82,691,231 11,371,689 Total liabilities 80,862,344 11,863,169 9,257,072 101,982,585 14,742,467 Deferred Inflows of Resources Pension-related 335,294 136,889 73,764 545,947 96,822 OPEB-related 513,681 189,759 79,566 783,006 119,182 Total deferred inflows of resources 848,975 326,648 153,330 1,328,953 216,004 Net Position Net investment in capital assets 196,985,517 10,750,773 103,245,197 310,981,487 32,524,805 Restricted for debt service 12,817,592 - - 12,817,592 - Unrestricted 19,966,233 4,987,374 11,925,644 36,879,251 21,278,341 Total net position $ 229,769,342 $ 15,738,147 $ 115,170,841 360,678,330 $ 53,803,146 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 48,084,597 Net position of business-type activities $ 408,762,927 See accompanying notes to the basic financial statements. 22 EXHIBIT A-8 CITY OF WICHITA FALLS, TEXAS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2024 Enterprise Funds (Formerly Major) Nonmajor Water and Sanitation Regional Enterprise Internal Sewer Fund Fund Airport Fund Funds Total Service Funds Operating revenues: Charges for services $ 52,613,662 $ 18,531,747 $ - $ 5,461,937 $ 76,607,346 $ 18,607,437 Rents,concessions and other 180,063 47,207 - 3,626,670 3,853,940 1,395,229 Contributions - - - - - 14,900,446 Total operating revenues 52,793,725 18,578,954 - 9,088,607 80,461,286 34,903,112 Operating expenses: Personnel services 13,454,373 5,348,031 - 3,559,882 22,362,286 3,541,693 Supplies and materials 4,437,253 340,812 - 1,856,074 6,634,139 3,743,810 Maintenance and repairs 2,814,038 143,025 - 549,065 3,506,128 4,810,916 Utilities and other services 6,208,183 6,784,928 - 1,383,683 14,376,794 636,907 Insurance and contract support 883,890 135,668 - 193,810 1,213,368 15,459,250 Other expenses 1,984,889 630,154 - 524,881 3,139,924 2,264,964 Depreciation and amortization 9,108,951 468,807 - 3,257,815 12,835,573 7,343,290 Total operating expenses 38,891,577 13,851,425 - 11,325,210 64,068,212 37,800,830 Operating income(loss) 13,902,148 4,727,529 - (2,236,603) 16,393,074 (2,897,718) Nonoperating revenues(expenses): Investment earnings(loss) 1,109,911 410,345 - 526,542 2,046,798 3,017,582 Gain/(loss)on sale/abandonment of capital assets 1,310 - - - 1,310 981 Interest expense and paying agent fees (1,959,955) - - (27,595) (1,987,550) (326,963) Intergovernmental operating grants - - - 2,346,732 2,346,732 - Total nonoperating revenues(expenses) (848,734) 410,345 - 2,845,679 2,407,290 2,691,600 Income(loss)before contributions and transfers 13,053,414 5,137,874 - 609,076 18,800,364 (206,118) Capital contributions 1,107,267 - - - 1,107,267 - Transfers in - - - 195,116 195,116 4,621,070 Transfers out (2,143,194) (3,621,335) - (407,763) (6,172,292) (332,879) Change in net position 12,017,487 1,516,539 - 396,429 13,930,455 4,082,073 Net position-beginning,as previously reported 217,751,855 14,221,608 43,730,953 71,043,460 49,721,073 Adjustment-change from major fund to nonmajor fund - - (43,730,953) 43,730,952 Net position-beginning,as restated 217,751,855 14,221,608 - 114,774,412 49,721,073 Net position-ending $ 229,769,342 $ 15,738,147 $ - $ 115,170,841 $ 53,803,146 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 2,135,411 Change in net position of business-type activities $ 16,065,866 See accompanying notes to the basic financial statements. 23 EXHIBIT A-9 (Page 1 of 2) CITY OF WICHITA FALLS, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2024 Enterprise Funds Nonmajor Water and Sanitation Enterprise Internal Sewer Fund Fund Funds Total Service Funds Cash flows from operating activities: Received from customers and users $ 51,832,682 $ 18,520,173 $ 9,080,549 $ 79,433,404 $ 3,770,479 Received from interfund charges - - - - 30,093,152 Other operating receipts - - - - 1,078,837 Payments to suppliers (16,500,664) (2,824,109) (4,130,575) (23,455,348) (27,554,068) Payments for interfund services (4,225,684) (6,743,689) (1,147,209) (12,116,582) (695,525) Payments to employees (9,479,745) (3,871,772) (2,768,646) (16,120,163) (2,745,782) Net cash provided(used)by operating activities 21,626,589 5,080,603 1,034,119 27,741,311 3,947,093 Cash flows from noncapital financing activities: Intergovernmental operating grants - - 2,570,504 2,570,504 - Interfund loans received(repaid) - - (264,432) (264,432) - Transfers in from other funds - - 195,116 195,116 4,621,070 Transfers out to other funds (2,143,194) (3,621,335) (407,763) (6,172,292) (332,879) Net cash provided(used)by noncapital financing activities (2,143,194) (3,621,335) 2,093,425 (3,671,104) 4,288,191 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (7,890,389) (1,251,817) (2,741,046) (11,883,252) (9,646,978) Proceeds from sale of capital assets 1,310 - - 1,310 - Principal paid on long-term debt (11,670,750) - (28,518) (11,699,268) (770,799) Interest and fees paid on long-term debt (2,521,087) - (27,595) (2,548,682) (326,963) Net cash provided(used)for capital and related financing activities (22,080,916) (1,251,817) (2,797,159) (26,129,892) (10,744,740) Cash flows from investing activities: Investment earnings 1,109,911 410,345 526,542 2,046,798 3,017,582 Net cash provided(used)by investing activities 1,109,911 410,345 526,542 2,046,798 3,017,582 Net Increase(Decrease)in Cash and Cash Equivalents (1,487,610) 617,796 856,927 (12,887) 508,126 Cash and Cash Equivalents-Beginning 38,990,895 13,329,283 14,625,119 66,945,297 24,137,342 Cash and Cash Equivalents-Ending $ 37,503,285 $ 13,947,079 $ 15,482,046 $ 66,932,410 $ 24,645,468 Reconciliation of cash and cash equivalents on the balance sheet to the statement of cash flows: Cash and cash equivalents $ 23,768,577 $ 13,947,079 $ 13,373,766 $ 51,089,422 $ 11,087,793 Restricted assets-cash and cash equivalents 13,734,708 - 2,108,280 15,842,988 13,557,675 Total cash and cash equivalents at end of year $ 37,503,285 $ 13,947,079 $ 15,482,046 $ 66,932,410 $ 24,645,468 See accompanying notes to the basic financial statements. 24 EXHIBIT A-9 (Page 2 of 2) CITY OF WICHITA FALLS, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2024 Enterprise Funds Nonmajor Water and Sanitation Enterprise Internal Sewer Fund Fund Funds Total Service Funds Reconciliation of Operating Income(Loss)to Net Cash Provided(Used)by Operating Activities: Operating income(loss) $ 13,902,148 $ 4,727,529 $ (2,236,603) $ 16,393,074 $ (2,897,718) Adjustments to reconcile operating income(loss) to net cash provided(used)by operating activities: Depreciation and amortization 9,108,951 468,807 3,257,815 12,835,573 7,343,290 Customer deposits received(refunded) (530,756) - - (530,756) - (Increase)decrease in assets and deferred outflows: Receivables: Customer and trade (430,287) (58,781) 14,412 (474,656) - Other - - (22,470) (22,470) 36,602 Inventory (181,476) - 55,139 (126,337) 42,688 Prepaid items 30,678 - (23,216) 7,462 - Other current assets - - (99,450) (99,450) - Deferred outflows-pension-related 1,435,285 637,702 338,582 2,411,569 602,022 Deferred outflows-OPEB-related 258,198 100,242 43,258 401,698 62,048 Increase(decrease)in liabilities and deferred inflows: Accounts payable-trade (528,249) (356,015) 118,381 (765,883) (434,937) Accrued payroll 56,369 21,519 20,312 98,200 17,034 Accrued vacation and sick leave 86,922 24,625 (3,635) 107,912 27,897 Estimated health claims payable - - - - 140,432 Payable to government agencies - 5,837 (379) 5,458 - Other liabilities 371,328 11,256 37,266 419,850 2,754 Estimated liability for landfill closure - 421,306 - 421,306 Net pension liability (1,737,286) (833,337) (436,938) (3,007,561) (951,537) Net OPEB liability (982,134) (384,535) (166,715) (1,533,384) (237,449) Deferred inflows-pension-related 307,810 125,330 67,568 500,708 87,661 Deferred inflows-OPEB-related 459,088 169,118 70,792 698,998 106,306 Total adjustments 7,724,441 353,074 3,270,722 11,348,237 6,844,811 Net cash provided(used)by operating activities $ 21,626,589 $ 5,080,603 $ 1,034,119 $ 27,741,311 $ 3,947,093 Noncash capital and financing activities: Capital assets received from developers $ 1,107,267 $ - $ - $ 1,107,267 $ - See accompanying notes to the basic financial statements. 25 EXHIBIT A-10 CITY OF WICHITA FALLS, TEXAS STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2024 Pension Trust Custodial Fund Fund Assets Cash and cash equivalents $ 200 $ 196,238 Receivables 55,959 - Investments 55,220,779 - Total assets 55,276,938 196,238 Liabilities Accrued expenses 21,717 - Other liabilities - 196,238 Total liabilities 21,717 196,238 Net position $ 55,255,221 $ - See accompanying notes to the basic financial statements. 26 EXHIBIT A-11 CITY OF WICHITA FALLS, TEXAS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Pension Trust Custodial Fund Fund Additions Contributions: Employer $ 2,109,816 $ - Plan members 1,695,157 - Escheatment additions - 27,459 Total contributions 3,804,973 27,459 Investment earnings(net): Interest and dividend income 2,019,604 - Net appreciation (depreciation) in fair value of investments 5,238,544 - Less investment expenses (434,319) - Total investment earnings(net) 6,823,829 - Total additions 10,628,802 27,459 Deductions Benefits paid to participants 5,970,034 - Refunds and drop payments 347,059 - Administrative expenses 97,104 - Escheatment deductions - 27,459 Total deductions 6,414,197 27,459 Net increase (decrease) in fiduciary net position 4,214,605 - Net position-beginning 51,040,616 - Net position-ending $ 55,255,221 $ - See accompanying notes to the basic financial statements. 27 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30,2024 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 various Governmental Accounting Standards Board (GASB) statements, 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. 28 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) The Wichita Falls 48 Sales Tax Corporation. The Wichita Falls 4B Sales Tax Corporation is a non- profit corporation formed in May 1997 for the purpose of increasing employment opportunities and for public improvement projects such as parks, auditoriums, learning centers, open space improvements, athletic and exhibition facilities, and the related maintenance and operating costs of such projects. The Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4B. Since the City Council appoints its Board of Directors, approves its budgets, and exercises final authority over its 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. 29 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) Wichita Falls Reinvestment Zone#4. On March 17, 2015,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 #4 (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 246 acres and includes a significant portion of the downtown area. 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, 2015, 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, 2035. 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 #4 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. 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 Director of Finance/CFO at 1300 7th Street,Wichita Falls,Texas. Fiduciary Component Unit 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. The seven-member Board of Trustees, composed of the Mayor, the Director of Finance from the City's Finance Department, three firefighters elected by a majority vote of the firefighters and two citizens, who are not employees or officers of the City and are chosen by the unanimous vote of the first five Trustees, are subject to the administrative supervision of and report to the State Firemen's Pension Board. The City is legally obligated to make contributions to the plan. As such, the Fund is considered a fiduciary component unit of the City. The Fund operates on a fiscal year ending on December 31 of each year. 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 position 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 supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. 30 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) 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. 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 (combined with deferred outflows of resources), liabilities (combined with deferred inflows of resources), revenues or expenditures/expenses of either fund category for governmental and enterprise) for the determination of major funds. The major governmental funds are the General Fund and the American Rescue Plan Act (ARPA) Fund. The major enterprise funds are the Water and Sewer Fund and the Sanitation Fund. Nonmajor funds are combined in a column in the fund financial statements. Nonmajor 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 and fiduciary 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. 31 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) 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 are generally 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. The City reports the following major governmental funds: 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. The ARPA Fund is used to account for Coronavirus State and Local Fiscal Recovery Funds received through the American Rescue Plan Act of 2021. Nonmajor governmental funds are a summarization of all the nonmajor governmental funds. The City reports the following major proprietary funds: The Water and Sewer Fund accounts for the water and sewer utility services provided 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. Nonmajor enterprise funds are a summarization of all of the nonmajor 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, employee health and life insurance, and information technology. 32 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) A custodial 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. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses 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 and expenses 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 governments 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. 33 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) 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 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 position or fund balances 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 capital 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 via the purchases method. 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 acquisition value at the time received. Capital assets are depreciated using the straight-line method over the following useful lives: 34 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) Assets Years Buildings,systems and improvements 20-59 years Infrastructure 8-100 years Machinery,vehicles and other equipment 3-25 years Furniture and equipment 3- 10 years Right-to-use leased assets 50 years Subscription assets 2- 10 years 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. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. Certain amounts related to the City's participation in pension plans (See Note 8) and OPEB plan (See Note 9) are reported in this category, along with deferred losses on bond refunding. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only two types of items that qualify for reporting in this category. Property taxes receivable ($1,224,911) and municipal court fines receivable ($1,623,528) are unavailable and therefore cannot be recognized as revenue in the governmental funds until they are received. There are also certain items related to the City's participation in pension plans (See Note 8) and OPEB plan (See Note 9) that are reported in this category. 5. Long-Term Obligations Long-term debt and other obligations for general government purposes are recorded in the government-wide statement of net position. 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. 35 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) 6. 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. Committed Fund Balance— represents amounts that can only be used for a specific purpose by adoption of an ordinance by the City Council. Committed amounts cannot be used for any other purpose unless the governing board removes those constraints through the adoption of another ordinance. 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, but rather from inside the City. 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. The City Council has by resolution authorized the Director of Finance/CFO to assign fund balance. 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. Unlike commitments, assignments only exist temporarily. Therefore, additional action does not normally have to be taken for the removal of an assignment. 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. 7. 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. 36 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) 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. 8. 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. 9. Vacation and Sick Leave All full-time employees accumulate vacation benefits based on length of service up to 20 days per year. The maximum allowable accumulation is 35 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. 10. 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. 37 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.) 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, 2024 is based on management's estimate of probable losses in the amount of $750,735. 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. The following represents changes in the amount of claims liabilities for the City from October 1, 2022 to September 30, 2024: Health Workers' Care Compensation Liability balance,October 1,2022 $ 891,315 $ 862,473 Incurred claims/adjustments 12,993,555 563,535 Claim payments ( 12,837,188) ( 641,169) Liability balance,September 30, 2023 1,047,682 784,839 Incurred claims/adjustments 14,808,476 571,942 Claim payments ( 14,668,044) ( 606,046) Liability balance,September 30,2024 $ 1,188,114 $ 750,735 F. Pension Plan For purposes of measuring the net pension liability, deferred outflows of resources, and deferred inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS) and the Wichita Falls Firemen's Relief and Retirement Fund (WFFRRF) and additions to/deductions from Fiduciary Net Position have been determined on the same basis as they are reported to TMRS and WFFRRF. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. G. Other Post-Employment Benefits The fiduciary net position of the City of Wichita Falls Retiree Health Care Plan has been determined using the flow of economic resources measurement focus and full accrual basis of accounting. This includes for purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to other post-employment benefits, OPEB expense, and information about assets, liabilities and additions to/deductions from the Plan's fiduciary net position. Benefit payments are recognized when due and payable in accordance with the benefit terms. Note 2 - COMPLIANCE AND ACCOUNTABILITY Finance-Related Legal and Contractual Provisions The City had no violations of finance-related legal and contractual provisions for the year ended September 30,2024. 38 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 2 - COMPLIANCE AND ACCOUNTABILITY(CONT'D.) Deficit Fund Balances—Individual Funds The Airport Improvement Grant Fund and the Golf Fund, both special revenue funds, had deficit fund balances of $223,229 and $10,227, respectively, as of September 30, 2024. The City plans for these deficits to be alleviated within a year. 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, 2024, the total amount of the City's demand and time deposits per the general ledger was $3,101,764, and the total amount per the City's September 30, 2024 bank statements was $5,486,144. The entire amount of the year-end bank statement balances was covered by federal depository insurance or by collateral held by the City's agent in the City's name. Investments The investment policies of the City and its discretely presented component units are governed by the Public Funds Investment Act (PFIA). 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 City was in compliance with PFIA during the year ended September 30, 2024. The investments of the City and its discretely presented component units at September 30, 2024 are as follows: Average Fair Value/ Credit Weighted Average Carrying Quality/ Days to Types of Investments Amount Cost Ratings Maturity Primary Government: TexPool $ 87,409,287 $ 87,409,287 Not rated 31 LOGIC 39,608,534 39,608,534 Not rated 47 Federal Home Loan Bank 5,056,151 5,026,707 N/A 165 U.S.Treasury Notes 9,076,914 8,973,073 N/A 646 Money market accounts 24,174,595 24,174,595 Not rated 1 Total primary government investments 165,325,481 165,192,196 Component Units: TexPool 46,941,826 46,941,826 Not rated 31 Total component unit investments 46,941,826 46,941,826 Total investments $212,267,307 $212,134,022 39 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 3 - DEPOSITS AND INVESTMENTS(CONT'D.) TexPool is a local government investment pool organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and operates under the Public Funds Investment Act, Chapter 2256 of the Texas Government Code. The State Comptroller of Public Accounts is the sole officer, director, and shareholder of the Texas Treasury Safekeeping Trust Company, which is authorized to operate TexPool. Pursuant to the TexPool Participation Agreement, administrative and investment services to TexPool are provided by Federated Investors, Inc., under an agreement with the Comptroller, acting on behalf of the Trust Company. As required by the Public Funds Investment Act, the Advisory Board is composed equally of participants in TexPool and other persons who do not have a business relationship with TexPool who are qualified to advise TexPool. TexPool is comprised of two investment alternatives: TexPool (which the City is invested in) and TexPool Prime. Both funds seek to maintain a net asset value of$1.00 per unit and are rated AAAm by Standard and Poor's. Local Government Investment Cooperative (LOGIC) was organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment Act, Chapter 2256 of the Texas Government Code, and operates as a public funds investment pool under the Public Funds Investment Act. LOGIC is organized and existing as a business trust under the laws of the State of Texas with all Participant funds and all investment assets held and managed in trust by a Board of Trustees for the benefit of the Participants.The Board of Trustees is LOGIC's governing body and is comprised of employees, officers or elected officials of Participant Government Entities or individuals who do not have a business relationship with the Pool and are qualified to advise it. A maximum of two advisory board members represent the Co-Administrators of the Pool. LOGIC seeks to maintain a net asset value of$1.00 per unit and are rated AAAm by Standard and Poor's. The City categorizes its fair value measurements with the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy below. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The City's assessment of the significance of particular inputs to these fair value measurements requires judgement and considers factors specific to each asset or liability. The City values its United States Treasury Bills and Notes using Level 1 inputs, which are quoted prices in active markets. The City values its money market accounts using Level 2 inputs, which are values provided by the City's depositories.TexPool and LOGIC are valued at net asset value per unit/share. 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. 40 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 3 - DEPOSITS AND INVESTMENTS(CONT'D.) 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. Note 4 - 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 $100 of assessed valuation for general governmental services including the payment of principal and interest on long- term debt. The combined tax rate to finance general governmental services for the year ended September 30, 2024 was$.68 per$100 which means that the City has a tax margin of$1.57 per$100, and could raise up to $113,350,739 additional tax revenue a year from the present assessed valuation of$7,219,792,277 before the limit is reached. 41 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2024 Note 5 - RESTRICTED ASSETS Restricted assets in the Water and Sewer Fund, Nonmajor Enterprise Funds, 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 $12,939,947 For Capital Improvements: Cash and cash equivalents 794,761 Total $13,734,708 Nonmajor Enterprise Funds restricted assets are comprised of the following: For Passenger Facility Charges: Cash and cash equivalents $ 710,272 For Customer Facility Charges: Cash and cash equivalents 1.398.008 Total $2,108,280 Internal Service Fund restricted assets are comprised of the following: For Employee Insurance: Cash and cash equivalents $13,557,675 42 4, V V = O O O N L _ O O- lfl Ol CO d- lfl c-I N d �' 13.0 C Co N ffl CO1 Ul COO W N Cr CO 4-4 - •cri i •a?, lfl al' lO CV' lO O cc. si O Q c CO lO N Ol d- 0 N CO Q' U H a w N C Ol m' Co l0 N d- co v a) cc an. an. — V U 4-4 a) i i . N i N ' N -C = C• ,n CO CO CO H O c E D NN N •N N CO CO o s4 s4 ri 0 t an. 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L 0 _cN N COW +, in- c) — . co 1 N �i N 0 a) rtsN lfl CO CO d" N S O N lO O O Ol • a••' a) Ol I� N CO L -a 0 a) C7 Ol lfl N Ol ciT-1 CO — an to > 0 _0 an. U 0 a) Y V +, c a) c LJ O cl C ) {c O O a) a /} a) .n w V _0 C 4-4 In CO vOi 'O C co tO N 0 > O >. W cn V. c D a-, MS c a) v C +O, J 1/1 CO cp `- c > c0 _0 V CO > a) 3 v a) E W o a) O a) Y a) a) a) n O VI a) X In L > _c V. V Y L L L cc cc co U O (7 O (.9 _ z H c6 CL T v 0 z CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 7 - CAPITAL ASSETS Capital asset activity for the year ended September 30, 2024 was as follows: Balance Balance Governmental activities: October 1, September 30, 2023 Increases Decreases 2024 Capital assets not being depreciated: Land $ 11,540,807 $ 362,500 $ - $ 11,903,307 Construction in progress 6,653,524 6,800,461 7,279,462 6,174,523 Total capital assets not being depreciated 18,194,331 7,162,961 7,279,462 18,077,830 Capital assets being depreciated: Land betterments 28,262,068 1,766,799 - 30,028,867 Buildings,systems and improvements 80,236,682 3,635,412 - 83,872,094 Infrastructure 223,203,595 5,461,841 - 228,665,436 Machinery and equipment 32,526,434 3,576,612 - 36,103,046 Furniture and fixtures 130,848 - - 130,848 Subscription assets 908,443 297,785 - 1,206,228 Total capital assets being depreciated 365,268,070 14,738,449 - 380,006,519 Less accumulated depreciation for: Land betterments 10,199,356 657,804 - 10,857,160 Buildings,systems and improvements 36,572,008 1,948,093 - 38,520,101 Infrastructure 111,235,732 4,847,908 - 116,083,640 Machinery and equipment 24,646,645 2,211,913 - 26,858,558 Furniture and fixtures 130,848 - - 130,848 Subscription assets 437,893 210,784 - 648,677 Total accumulated depreciation 183,222,482 9,876,502 - 193,098,984 Total capital assets being depreciated,net 182,045,588 4,861,947 - 186,907,535 Governmental activities capital assets, net $200,239,919 $12,024,908 $7,279,462 $204,985,365 Depreciation expense was charged to functions as follows: Governmental activities: Administrative services $2,040,322 Police 816,345 Fire 234,851 Parks and recreation 379,417 Community development 8,075 Public works 4,296,752 Health 197,260 Traffic and transportation 720,244 Multi-Purpose Events Center 1,183,236 Total governmental depreciation $9,876,502 44 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 7 - CAPITAL ASSETS(CONT'D.) Balance Balance Business-type activities: October 1, September 30, 2023 Increases Decreases 2024 Capital assets not being depreciated: Land $ 11,072,444 $ - $ - $ 11,072,444 Construction in progress 6,732,088 9,181,142 5,006,827 10,906,400 Total capital assets not being depreciated 17,804,532 9,181,142 5,006,827 21,978,844 Capital assets being depreciated: Land betterments 60,670,836 365,575 - 61,036,411 Buildings,systems and improvements 515,432,712 7,120,235 - 522,552,947 Infrastructure 1,308,101 - - 1,308,101 Machinery and equipment 11,346,493 1,380,812 - 12,727,305 Furniture and fixtures 16,943 - - 16,943 Motor vehicles 75,586,580 15,781,790 19,403 91,348,967 Right-to-use leased assets 3,066,768 - - 3,066,768 Total capital assets being depreciated 667,428,433 24,648,412 19,403 692,057,442 Less accumulated depreciation for: Land betterments 27,548,281 1,639,443 - 29,187,724 Buildings,systems and improvements 192,260,202 10,605,304 - 202,865,506 Infrastructure 61,044 17,442 - 78,486 Machinery and equipment 9,367,083 648,188 - 10,015,271 Furniture and fixtures 16,943 - - 16,943 Motor vehicles 53,020,172 5,632,067 19,403 58,632,836 Right-to-use leased assets 891,866 62,587 - 954,453 Total accumulated depreciation 283,165,591 18,605,031 19,403 301,751,219 Total capital assets being depreciated,net 384,262,842 6,043,381 - 390,306,223 Business-type activities capital assets, net $402,067,374 $15,224,523 $5,006,827 $412,285,067 Depreciation expense was charged to programs as follows: Business-type activities: Regional Airport $ 1,646,261 Kickapoo Airport 551,401 Transit 400,394 Sanitation 4,860,894 Water and sewer 10,260,785 Stormwater drainage 594,865 Waterpark 290,431 Total business-type depreciation $18,605,031 45 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 8 - PENSION PLANS Eligible City employees participate in one of two pension plans. Eligible firefighters participate in the Wichita Falls Firemen's Relief and Retirement Fund (WFFRRF). All other eligible employees participate in the Texas Municipal Retirement System (TMRS). The table below summarizes the amounts reported by the City for each plan as of September 30, 2024. Detailed information for each plan follows. TMRS WFFRRF Total Net pension liability $52,507,441 $71,586,730 $124,094,171 Deferred outflows of resources 17,422,048 17,831,464 35,253,512 Deferred inflows of resources 2,107,787 15,423,583 17,531,370 Pension expense 7,155,865 5,859,799 13,015,664 Texas Municipal Retirement System Plan Description The City participates as one of more than 900 plans in the nontraditional, joint contributory, hybrid defined benefit plan administered by the TMRS.TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees.Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a tax-qualified plan under Section 401(a) of the Internal Revenue Code. TMRS issues a publicly available Annual Comprehensive Financial Report (ACFR) that can be obtained at www.tmrs.com. All eligible employees of the City are required to participate in TMRS. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the City Council, within the options available in the governing state statutes of TMRS. At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the City-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payment options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member's deposits and interest. 46 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 8 - PENSION PLANS(CONT'D.) Employees Covered by Benefit Terms At the December 31, 2023 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 787 Inactive employees entitled to but not yet receiving benefits 620 Active employees 998 Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the participating city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the participating city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees of the City are required to contribute 7% of their annual gross earnings. The contribution rates for the City were 16.18% and 16.5% in calendar years 2023 and 2024, respectively. The City's contributions to TMRS for the year ended September 30, 2024, were $9,713,387, and were equal to the required contributions. Net Pension Liability The City's Net Pension Liability (NPL) was measured as of December 31, 2023, and the Total Pension Liability used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial Assumptions The Total Pension Liability in the December 31, 2023 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5%per year Overall payroll growth 2.75%per year Investment rate of return 6.75%, net of pension plan investment expense, including inflation Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2020 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on the fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants,the same mortality tables for healthy retirees is used with a 4-year set-forward for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and females respectively,to reflect the impairment for younger members who become disabled.The rates are 47 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 8 - PENSION PLANS(CONT'D.) projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS as of December 31, 2022. They were adopted in 2023 and first used in the December 31, 2023 actuarial valuation. The post-retirement mortality assumption for Annuity Purchase Rate (APRs) is based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. The long-term expected rate of return on pension plan investments is 6.75%. The pension plan's policy in regard to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, TMRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target allocation and best estimates of arithmetic real rates of return for each major asset class in fiscal year 2023 are summarized in the following table: Long-Term Expected Real Asset Class Target Allocation Rate of Return (Arithmetic) Global Equities 35% 7.70% Core Fixed Income 6% 4.90% Non-Core Fixed Income 20% 8.70% Other Public and Private Markets 12% 8.10% Real Estate 12% 5.80% Absolute Return 5% 6.90% Private Equity 10% 11.80% Total 100% Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. 48 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 8 - PENSION PLANS(CONT'D.) Changes in Net Pension Liability Increase (Decrease) Total Pension Fiduciary Net Net Pension Liability Position Liability (a) (b) (a)—(b) Balances as of December 31, 2022 $331,600,570 $263,743,301 $67,857,269 Changes for the year: Service cost 7,724,088 - 7,724,088 Interest on total pension liability 22,017,837 - 22,017,837 Change of benefit terms - - - Difference between expected and actual experience 1,137,336 - 1,137,336 Change of assumptions ( 3,012,418) - ( 3,012,418) Contributions—employer - 9,040,321 ( 9,040,321) Contributions—employee - 3,909,517 ( 3,909,517) Net investment income - 30,462,384 ( 30,462,384) Benefit payments,including refunds of employee contributions ( 18,544,887) ( 18,544,887) - Administrative expenses - ( 194,195) 194,195 Other changes - ( 1,356) 1,356 Balances as of December 31, 2023 $340,922,526 $288,415,085 $52,507,441 Sensitivity Analysis The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well as what the City's net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage point lower (5.75%) or 1 percentage point higher(7.75%)than the current rate. 1% Current 1% Decrease Discount Rate Increase 5.75% 6.75% 7.75% Net pension liability $96,164,636 $52,507,441 $16,344,191 Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30, 2024,the City recognized pension expense of$7,155,865 related to its participation in TMRS. 49 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 8 - PENSION PLANS(CONT'D.) At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to TMRS from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 2,709,871 $Net difference in assumptions - 2,107,787 Net difference between projected and actual earnings 7,325,321 - Contributions made subsequent to measurement date 7.386.856 - Total $17,422,048 $2,107,787 $7,386,856 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the City's fiscal year ending September 30, 2025 (plan year ending December 31, 2024). Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Plan Year Ended December 31: 2024 $2,743,957 2025 2,304,403 2026 5,410,985 2027 ( 2,531,940) Total $7,927,405 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 operates under an act passed in 1937 by the Texas State Legislature and adopted by the City's firefighters. The stand-alone financial report for the Firemen's Relief and Retirement Fund can be obtained from the City's Director of Finance/CFO at 1300 7th Street,Wichita Falls,Texas. Benefits Provided 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 2.55% (2.50% for those hired after April 20, 2016) of the firefighter's average salary, multiplied by the member's years of credited service. Benefits are calculated based upon a member's average salary for the 78 consecutive biweekly pay periods which produce the highest average. 50 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 8 - PENSION PLANS(CONT'D.) Members hired prior to April 21, 2016 can receive a service retirement at ages 50 and above with 20 or more years of service. Members hired after April 20, 2016 can receive a service retirement at ages 55 and above with 20 or more years of service. Members are eligible for actuarially reduced early retirement benefits before the applicable retirement age, 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. The valuations used for this plan are based on a valuation performed as of January 1,2024. Employees Covered by Benefit Terms Plan membership as of January 1,2024: Inactive employees or beneficiaries currently receiving benefits 147 Inactive employees entitled to but not yet receiving benefits 4 Active employees 157 Contributions The contribution rate for the firefighters is 13% and the City contributes 13.25%. 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 individual entry age normal cost method,the plan's normal cost is determined as a percentage of payroll. The City's contributions to the Plan for the year ended September 30, 2024,were$2,245,965, and were equal to the required contributions. Net Pension Liability The City's Net Pension Liability (NPL) was measured as of January 1, 2024, and the Total Pension Liability used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. The NPL related to Governmental Activities is generally liquidated by the General Fund through annual contributions. Actuarial Assumptions The Total Pension Liability in the January 1, 2024, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5%per year Salary increases Service-based Discount Rate 5.67%per year Investment rate of return 7.75%, net of pension plan investment expense, including inflation 51 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 8 - PENSION PLANS(CONT'D.) Mortality rates for employee and healthy annuitant combined rates were taken from the PubS- 2010 Mortality Tables. The mortality assumptions for all participants are sex distinct with mortality improvement projected 5 years beyond the valuation date using scale MP-2020 and a base year of 2010. Actuarial assumptions used in the valuation were based on the results of actuarial experience studies.The experience study was last performed October 6, 2017. The long-term expected rate of return on pension plan investments was determined using a method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. For 2021 the inflation rate assumption of the investment advisor was 2.50%. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of geometric real rates of return for each major class included in the Plan's target asset allocation as of December 31,2023 are summarized in the following table: Long-Term Expected Real Asset Class Target Allocation Rate of Return (Arithmetic) Domestic Equity 45.00% 7.50% International Equity 15.00% 8.50% Domestic Fixed Income 20.00% 2.50% Global Fixed Income 5.00% 3.50% Real Estate 10.00% 4.50% GTAA 5.00% 3.50% Total 100.00% Discount Rate The projection of cash flows used to determine the discount rate assumed that current plan member and sponsor contributions will be made at the current contribution rate. Future member's contributions in excess of their normal cost were also included. Based on these assumptions, the pension plan's Fiduciary Net Position was projected to provide future benefit payments for 26 years. These payments were discounted using a discount rate of 7.75%. Future benefit payments beyond 26 years were discounted using a high quality municipal bond rate of 3.26%.The high quality municipal bond rate was based on the week closest to, but not later than, the measurement date of the S&P Municipal Bond 20 Year High Grade Rate Index as published by the S&P Dow Jones.The single equivalent discount rate was 4.99%. 52 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 8 - PENSION PLANS(CONT'D.) Changes in Net Pension Liability Increase(Decrease) Total Pension Fiduciary Net Net Pension Liability Position Liability (a) (b) (a)—(b) Balances as of December 31,2022 $123,099,731 $51,040,616 $72,059,115 Changes for the year: Service cost 2,928,522 - 2,928,522 Interest on total pension liability 6,880,704 - 6,880,704 Change of benefit terms - - - Difference between expected and actual experience 1,286,962 - 1,286,962 Change of assumptions ( 1,036,875) - ( 1,036,875) Contributions—employer - 2,109,816 ( 2,109,816) Contributions—employee - 1,695,157 ( 1,695,157) Net investment income - 6,795,399 ( 6,795,399) Benefit payments, including refunds of employee contributions ( 6,317,093) ( 6,317,093) - Administrative expenses - ( 97,104) 97,104 Other - 28,430 ( 28,430) Balances as of December 31,2023 $126,841,951 $55,255,221 $71,586,730 Sensitivity Analysis The following presents the net pension liability of the City, calculated using the discount rate of 5.67%, as well as what the City's net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage point lower (4.67%)or 1 percentage point higher (6.67%)than the current rate. 1% Current 1% Decrease Discount Rate Increase 4.67% 5.67% 6.67% Net pension liability $87,760,640 $71,586,730 $58,117,757 Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30, 2024,the City recognized pension expense of$7,159,611 related to the Wichita Falls Firemen's Relief and Retirement Fund. Pension Plan Fiduciary Net Position Detailed information about the pension Plan's Fiduciary Net Position is available in the separately issued Plan financial report. 53 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 8 - PENSION PLANS(CONT'D.) At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the WFFRRF from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 2,281,934 $ 2,040,741 Difference due to changes in actuarial assumptions 12,372,625 13,382,842 Net difference between projected and actual earnings 1,420,598 - Contributions made subsequent to measurement date 1,756,307 - Total $17,831,464 $15,423,583 $1,756,307 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the City's fiscal year ending September 30, 2025 (plan year ending December 31, 2024). Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Plan Year Ended December 31: 2024 $2,770,798 2025 1,390,941 2026 ( 48,254) 2027 ( 3,675,645) 2028 308,393 Thereafter ( 94,659) Total $ 651,574 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 Premiums Pre-Medicare: Retirees share in the cost of the Plan by paying premiums according to the following schedule: 54 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) Medicare Under 65 Core CAT HIDD Supplement Retirees $ 545 $ 409 $ 371 $516 Spouses $1,413 $1,131 $1,086 $516 Post-Medicare: Eligible retirees and spouses on Medicare are eligible to participate in a Medicare supplement health care plan. Effective January 1, 2011, the following changes were implemented to Medicare eligible retirees: For retirees and spouses who were 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. For retirees and spouses 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. For members who retire on or after January 1, 2009, the City will provide no premium assistance once Medicare-eligible. Life Insurance Coverage General employees and Firefighters receive $7,500 of employer-paid life insurance which is included in the liabilities of the Plan. No life insurance coverage is provided for spouses of retirees. Retirees may purchase an additional $2,500 of life insurance for$2 per month. Other Benefits Retiree dental and vision coverages are available. Retirees pay 100%of vision coverage. Employees Covered by Benefit Terms At the December 31, 2023 measurement date, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefits 764 Inactive plan members entitled to but not yet receiving benefits - Active plan members 1,039 Actuarial Assumptions The demographic assumptions are based on the assumptions that were developed for the defined benefit plans in which the City participates (TMRS and the Firemen's Pension Plan). The TMRS assumptions are based on the experience study covering the four-year period ending December 31, 2018 as conducted for TMRS.The firefighter assumptions are based on the January 1, 2020 Valuation for the Wichita Falls Firemen's Relief and Retirement Fund. 55 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) Actuarial Methods and Assumptions: Valuation Date December 31,2023 Actuarial Cost Method Entry age, level percent of salary Discount Rate 6.75%as of December 31, 2023 Inflation 2.25% Salary Increases 2.75%per annum Demographic Assumptions TMRS: Based on the experience study covering the four-year period ending December 31, 2018 as conducted for TMRS. Based on the January 1, 2020 valuation for the Wichita Falls Firemen's Relief and Retirement Fund. Mortality Non-annuitants: Sex distinct headcount weighed PUB-2010 general and safety employees mortality tables recently published by the Society of Actuaries in conjunction with the mortality improvement scale MP-2021. Annuitants: Sex distinct headcount weighed PUB-2010 general retirees mortality tables recently published by the Society of Actuaries in conjunction with the mortality improvement scale MP-2021. Participation Rates 45% of participants are assumed to elect coverage if they retire at age of 49 or later. Healthcare Cost Trend Rates Initial rate of 6.51% declining to ultimate rate of 4.14% in the year 2043 Discount Rate The discount rate and expected rate of return on plan assets were 6.75%. Changes in Net OPEB Liability Increase(Decrease) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (a)—(b) Balances as of December 31,2022 $24,107,022 $8,674,869 $15,432,153 Changes for the year: Service cost 649,071 - 649,071 Interest on total OPEB liability 1,606,708 - 1,606,708 Change of benefit terms - - - Difference between expected and actual experience - - - Change of assumptions - - - Contributions—employer - 2,221,786 ( 2,221,786) Contributions—employee - -Net investment income - 5,588,971 ( 5,588,971) Benefit payments, including refunds of employee contributions ( 1,906,024) ( 1,906,024) - Administrative expenses - -Other changes - - - Balances as of December 31,2023 $24,456,777 $14,579,602 $ 9,877,175 56 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) Discount Rate Sensitivity Analysis The following schedule shows the impact of the net OPEB liability if the discount rate used was 1% less than and 1% greater than the discount rate that was used (6.75%) in measuring the net OPEB liability. Current 1% Discount 1% Decrease Rate Increase 5.75% 6.75% 7.75% $12,079,633 $9,877,175 $7,938,782 The following schedule presents the net OPEB liability of the plan using the assumed healthcare cost trend rate as well as what the net OPEB liability would be if it were calculated using a trend ratio that is 1%less than and 1%greater than the assumed healthcare cost trend rate: Current Healthcare 1% Cost Trend 1% Decrease Rate Increase 5.21% 6.21% 7.21% $7,930,041 $9,877,175 $12,154,787 For Governmental Activities, the net OPEB liability is generally liquidated by the General Fund. OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30, 2024, the City recognized OPEB expense of$1,388,204 related to the City of Wichita Falls Retiree Health Care Plan. At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the City of Wichita Falls Retiree Health Care Plan from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience,liability $ 327,010 $ - Difference due to changes in actuarial assumptions 204,311 199,126 Differences between expected and actual experience,assets - 3,129,979 Contributions made subsequent to measurement date 1,429,518 - Total $1,960,839 $3,329,105 57 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) $1,429,518 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability for the City's fiscal year ending September 30, 2025 (plan year ending December 31, 2024). Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended September 30: 2025 ($ 555,635) 2026 ( 679,065) 2027 ( 561,228) 2028 ( 1,001,856) Total ($2,797,784) 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 - 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 $7,245,589 as of September 30, 2024, which is based on 25% usage of the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of $21,219,225 as the remaining estimated capacity is filled. The landfill is expected to be filled to capacity in 2153. Additionally, the City has recorded a liability of$86,579 for closure and postclosure care costs related to the City's transfer station. Actual costs may be higher due to inflation, change in technology, or changes in regulations. 58 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 12 - LONG-TERM LIABILITIES Long-term liabilities transactions for the year ended September 30,2024 are summarized as follows: Balance at Balance at October 1, Retired and September 30, Due Within 2023 Issued Transferred 2024 One Year Governmental Activities: General obligation bonds $ 24,049,734 $ - $2,811,606 $ 21,238,128 $2,907,544 Combination tax and revenue bonds 11,485,000 - 1,000,000 10,485,000 1,030,000 Venue tax revenue bonds 2,535,000 - 55,000 2,480,000 55,000 Premiums on bonds 1,220,798 - 229,802 990,996 - Subscription liabilities 460,214 257,785 155,212 562,787 173,818 Accrued vacation and sick leave payable 10,768,014 3,643,221 2,288,385 12,122,850 3,600,000 Notes payable 2,816,672 - 565,434 2,251,238 167,159 Claims and judgments payable 796,761 571,942 606,046 762,657 48,780 Total governmental activities 54,132,193 4,472,948 7,711,485 50,893,656 7,982,301 Business-type Activities: General obligation bonds 5,455,266 - 353,394 5,101,872 357,456 Utility system revenue bonds, net of premium(discount) 30,250,000 - 8,835,000 21,415,000 9,275,000 Combination tax and revenue bonds 27,840,000 - 1,620,000 26,220,000 1,655,000 Premiums on bonds 1,893,944 - 863,231 1,030,713 - Accrued vacation and sick leave payable 907,705 906,637 792,803 1,021,539 675,000 Notes payable 12,935,154 9,920,692 1,560,966 21,294,880 1,744,916 Right-to-use lease liabilities 2,848,743 - 29,276 2,819,467 31,302 Landfill closure, post-closure costs 6,910,862 421,306 - 7,332,168 - Total business-type activities 89,041,674 11,248,635 14,054,670 86,235,639 13,738,674 Total long-term liabilities $143,173,867 $15,721,583 $21,766,155 $137,129,295 $21,720,975 For governmental activities, claims and judgments payable and compensated absences are generally liquidated by the General Fund. 59 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 12 - LONG-TERM LIABILITIES(CONT'D.) Bonds Payable Bonds payable as of September 30, 2024 are comprised of the following individual issues: Range of Final Annual Bonds Interest Maturity Serial Bonds Outstanding Rates Date Payments Authorized At 9/30/24 General Obligation Bonds: General Obligation Refunding 2.00%- 9/01/26 $200,000 to $9,650,000 $ 2,160,000 Bonds,Series 2015A 5.00% $1,105,000 General Obligation Refunding 0.73%- 9/01/26 $110,000 to 2,885,000 615,000 Bonds,Series 2015E 3.48% $310,000 General Obligation Bonds, 2.00%- 9/01/38 $550,000 to 16,345,000 12,700,000 Series 2018A 5.00% $1,155,000 General Obligation Refunding 2.00%- 10/01/28 $80,000 to 6,170,000 3,345,000 Bonds,Series 2018E 4.00% $725,000 General Obligation Refunding 4.00% 9/01/31 $140,000 to 1,675,000 1,240,000 Bonds,Series 2021 $195,000 General Obligation Refunding 0.40%- 9/01/33 $435,000 to 7,595,000 6,280,000 Bonds,Taxable Series 2021 2.03% $865,000 Total General Obligation Bonds 26,340,000 Combination Tax and Revenue Bonds: Combination Tax and Revenue 2.00%- 9/01/33 $530,000 to 19,875,000 10,485,000 Certificates of Obligation,Series 2013 3.375% $1,315,000 Combination Tax and Revenue 2.00%- 9/01/33 $505,000 to 13,000,000 1,325,000 Certificates of Obligation,Series 4.625% $905,000 2013A Combination Tax and Revenue 0.00%- 3/01/45 $890,000 to 33,545,000 24,895,000 Certificates of Obligation,Series 2015 2.12% $1,425,000 Total Combination Tax and Revenue Bonds 36,705,000 Revenue Bonds: Water&Sewer System Revenue 2.00%- 8/01/27 $2,635,000 to 74,005,000 21,415,000 Refunding Bonds,Series 2016 5.00% $9,705,000 Venue Tax Revenue Bonds, 4.00% 9/01/50 $45,000 to 2,680,000 2,480,000 Series 2020 $150,000 Total Revenue Bonds 23,895,000 Total All Bonds $86,940,000 60 c-I to M 7 I� 00 O O O O 0 Ln N N 7 7 I, O O O 0 l0 V1 c-I M Ln c-I 00 N O O O I� O O I� O N c-I 0 0 c-I N c-I l0 '> ) M N O 0 n 7 00 N c-I al U C c-I c-I c-I N 00 ro _ f0 c-I c-I00 i M O al O O O O M {n c — LV o M V1 N V1 O O O O V1 C p V O M n n O O O O c-I M M 00 01 V1 O V1 O Ln O I-I 0 > C• M M l0 CO L0 V1 c-IV V1 V1 0 _ > C M c-I N M N CO00 V1 l0 c-I O O O M N. tH V' D_ c-I in CO 0 L Lit 7 01 01 00 V1 CO " N O O co 0 co N M Ln c-I Ln 00 N Y Ln I� al V1 c-I 01 O C C V} a N g v a + U 7 00 Ln c-I c-I N I. 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E z zLn O O O O Ln Ln O Ln o `' O c Ln al M 7 LO Ln LO O N N V ._ to to O O O Ln O n 7 N- W a ri c-i c-i c-i c-i Ln l6 LO ri to ✓ v} m c N l0 M LO O Ln 7 . l0 Q p CO 7 LO Ln N m O J CO a) 7 -1 O N rn l0 01 = 00 CO co N- LO M c-I O Ln v an- CC l0 7 7 00 N o0 N O a Ln Ln M Ln 00 00N I^ — 7 O I- 00 01 I- 00 V N 'U c-1 o N = Ln LO M 7 Ln M O M l0 l0 l0 n c-1 O v N Ln J (J +/} v} 1 ci N mr-i to M M 7 7 Ln Ln C N O O O O O O v N N N N N N i*`' c E Ln LO I., 00 al O Ln O Ln O Ln co O W N N N N N N M M 7 7 n Ln L �i O O O O O O O O O O O O C 1p p, N N N N N N N N N N N I— } {n CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 12 - LONG-TERM LIABILITIES(CONT'D.) All of the General Obligation Bonds were issued on the full faith and credit of the City and are secured by ad valorem taxes levied against all taxable property. These bonds are serviced by the Debt Service Fund with an apportionment of the ad valorem tax levy. At September 30, 2024, this fund had a fund balance of$1,954,172. 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 2010 and 2011 Certificates will be serviced by the Debt Service Fund by contributions from the Wichita Falls 4B Economic Development Corporation. The Series 2016 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. A portion of the Series 2013 General Obligation Refunding Bonds will also be serviced by these net revenues. The Venue Tax Revenue Bonds were issued for the purpose of improving the City's MPEC and Memorial Auditorium facilities and are serviced by an additional hotel/motel tax designated for these purposes. 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 United States Government—Lake Kemp 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. Banc of America Public Capital Corp.— Water Meters The City entered into a financing agreement in 2016 to finance the replacement of all of the City's water meters. The total amount financed was $16,506,103. These assets are listed under "Buildings, systems and improvements" in Business-type Activities. The agreement carries an interest rate of 3.23%and is for a period of 20 years, with final payment due in fiscal year 2036. Signature Public Funding Corp.—Fire Equipment The City issued a financing agreement in 2024 for the purchase of fire department equipment in the amount of $9,920,692. These assets are listed under "Motor vehicles" in Business-type Activities. This agreement carries an interest rate of 1.78% and is for a period of 11 years with final payment due in fiscal year 2034. 63 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 12 - LONG-TERM LIABILITIES(CONT'D.) AMERESCO Inc.—Street Lights The City entered into a financing agreement in 2018 to finance the conversion of the City's street lights to more energy-efficient LED lights. These assets are listed under "Infrastructure" in Governmental Activities. This agreement carries an interest rate of 3.45% and is for a period of 15 years, with final payment due in fiscal year 2034. Right-to-Use Lease The Regional 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 lease payment increases by 3% per year with a final lease payment of$157,805 in 2058.The total value of assets under this agreement was$3,066,768, with accumulated amortization of$954,453 as of September 30, 2024.An interest rate of 1%is imputed for this lease agreement. Subscription Liabilities The City has multiple subscription-based information technology agreements (SBITAs). An interest rate of 4.50% has been used in calculating the total present value of the agreements at inception, as well as annual interest expense on each agreement. Aqua-Metric Sales Co.—Automated Meter Reading System The City entered into a SBITA in 2016 for software related to an automated water meter reading system. The agreement called for annual payments over the 10-year term of the agreement totaling $771,061. Rock Group, Inc.—Police Software The City entered into a SBITA in 2023 for software for use by the City's Police Department. This agreement calls for two annual payments of$31,000 in addition to implementation costs of$6,375, for total payments of$68,375. Patagonia Health Inc.—Electronic Health Record Software The City entered into a SBITA in 2023 for electronic health record software for use by the Health Department.This agreement includes 58 monthly payments of$3,870 in addition to implementation costs of$41,325,for total payments of$265,785. UB Holdings, LLC—VenueOps Software for MPEC The City entered into a SBITA in 2023 for software for use by the MPEC. This agreement includes 3 annual payments totaling$76,850. Hedgerow Software US, Inc.—Environmental Software for Health Department The City entered into a SBITA in 2023 for software for use by the Health Department.This agreement includes 5 annual payments each of$42,000 in addition to implementation costs of$40,000, for total payments of$250,000. 64 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 13 - INTERFUND BALANCES Transfers to and from other funds during the year ended September 30,2024 were as follows: Transfers From Transfers To Amount Reason General Fund Nonmajor Governmental Funds $ 286,071 Supplement operating grants General Fund Nonmajor Governmental Funds 126,455 Supplement capital projects General Fund Nonmajor Governmental Funds 25,165 Supplement operating deficits General Fund Nonmajor Enterprise Funds 195,116 Supplement capital projects General Fund Internal Service Funds 1,631,776 Purchase capital assets Nonmajor Governmental Funds Nonmajor Governmental Funds 1,081,645 Fund debt service payment Nonmajor Governmental Funds Internal Service Funds 339,395 Purchase capital assets Water and Sewer Fund General Fund 1,962,663 Administrative overhead Water and Sewer Fund Nonmajor Governmental Funds 159,100 Fund debt service payment Water and Sewer Fund Internal Service Funds 21,431 Purchase capital assets Sanitation Fund General Fund 1,013,746 Administrative overhead Sanitation Fund Internal Service Funds 2,607,589 Purchase capital assets Nonmajor Enterprise Funds Nonmajor Governmental Funds 407,763 Fund debt service payment Internal Service Funds General Fund 312,000 Administrative overhead Internal Service Funds Internal Service Funds 20,879 Purchase capital assets Total $10,190,794 Balances due to and from other funds as of September 30, 2024 were as follows: Due To Fund Due From Fund Amount Purpose General Fund ARPA Fund $ 494,048 Short-term loan General Fund Nonmajor Governmental Funds 5,089,074 Short-term loan General Fund Nonmajor Enterprise Funds 3,691,163 Short-term loan General Fund Internal Service Funds 462,283 Short-term loan Total $9,736,568 All amounts due are scheduled to be repaid within one year. 65 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 14 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED COMPONENT UNITS The City has five component units that are discretely presented in the City's basic financial statements.Condensed financial information for the year ended September 30, 2024 is as follows: Wichita Falls Wichita Falls Economic 4B Sales Development Tax Wichita Falls Reinvestment Corporation Corporation Zone#2 Zone#3 Zone#4 Totals Condensed statement of net position: Cash,investments and other current assets $25,317,149 $15,283,994 $4,013,773 $1,346,785 $1,489,295 $47,450,996 Capital assets,net of accumulated depreciation 9,862,319 16,943,889 - - - 26,806,208 Total assets 35,179,468 32,227,883 4,013,773 1,346,785 1,489,295 74,257,204 Accounts payable and other current liabilities 123,312 ( 28,852) - - - 94,460 Long-term liabilities 9,438,679 17,545,000 - - - 26,983,679 Total liabilities 9,561,991 17,516,148 - - - 27,078,139 Net position $25,617,477 $14,711,735 $4,013,773 $1,346,785 $1,489,295 $47,179,065 Condensed statement of activities: Expenses: Community development S 3,807,447 S 6,396,259 S 371,117 S - S - S10,574,823 Program revenues: Operating grants and contributions - - - - - - Net program expense ( 3,807,447) ( 6,396,259) ( 371,117) - - (10,574,823) General revenues: Tax revenues 5,109,774 5,109,774 794,363 160,228 368,058 11,542,197 Non-tax general revenues 1.397.302 1,188,772 91,693 83,087 20,184 2,781,038 Total general revenues 6,507,076 6,298,546 886,056 243,315 388,242 14,323,235 Change in net position 2,699,629 (97,713) 514,939 243,315 388,242 3,748,412 Beginning net position 22,917,848 14,809,448 3,498,834 1,103,470 1,101,053 43,430,653 Ending net position $25,617,477 $14,711,735 $4,013,773 $1,346,785 $1,489,295 $47,179,065 66 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 15 - TAX ABATEMENT AGREEMENTS The City has approved value limitation agreements with companies for a limitation on the appraised value of properties within the City pursuant to Chapter 312 of the Texas Tax Code, as amended, i.e., the Property Tax Abatement Act. Under these agreements, the City has agreed to abate varying amounts of property taxes levied on qualified improvements during the abatement period. These abatements may be granted to businesses that construct improvements within certain areas designated by the Mayor and City Council. For the fiscal year ended September 30, 2024, the City abated property taxes totaling $1,731,738 under this program and received payments in lieu of taxes totaling$1,517,516. Note 16 - COMMITMENTS AND CONTINGENCIES Litigation The City is a defendant in various 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. Contract Commitment with West Texas Utilities Company In 1977,the City and Wichita County Water Improvement District Number 2 entered into a sixty-year contract with the West Texas Utilities Company(Company) and agreed to provide an adequate water supply for the Company's use in generating power upon completion of the Company's construction of a power plant adjacent to the Lake Kemp-Lake Diversion System. 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, 2024 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. In December 2021,this contract was assumed by Oklaunion Industrial Park, LLC. 67 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 16 - COMMITMENTS AND CONTINGENCIES(CONT'D.) Contract Commitments At September 30, 2024, 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 $ 5,873,392 ARPA Fund 14,665,317 Nonmajor Governmental Funds 747,742 Water and Sewer Fund 3,301,830 Sanitation Fund 185,908 Nonmajor Enterprise Funds 5,735,112 Total contract commitments-City $30,509,301 Total contract commitments—Component Units $854,161 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 - ERROR CORRECTION During the year ended September 30, 2024, the City discovered an error in the amounts reported as of September 30, 2023. Revenue in the amount of$388,600 for a component unit was recorded in the Debt Service Fund. Beginning fund balance of Nonmajor Governmental Funds as well as the beginning net position of Governmental Activities was decreased by $388,600 as a result of this correction. No correction was necessary in the component unit as a receivable had been recorded in that fund. 68 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2024 Note 18 - NEW ACCOUNTING PRONOUNCEMENT GASB Statement No. 101, Compensated Absences, is effective for fiscal years beginning after December 15, 2023. The objective of GASB Statement No. 101 is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences.That objective will be achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Though GASB Statement No. 101 will be effective for the fiscal year 2024-2025, the financial impact is not known at this time. 69 REQUIRED SUPPLEMENTARY INFORMATION EXHIBIT B-1 CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE-GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 85,852,149 $ 85,852,149 $ 84,573,463 $ (1,278,686) Charges for services 3,215,258 3,215,258 3,248,734 33,476 Licenses and permits 2,071,200 2,071,200 1,861,123 (210,077) Fines and forfeitures 2,940,400 2,940,400 3,284,620 344,220 Contributions 232,500 232,500 295,378 62,878 Miscellaneous revenue 3,746,686 3,746,686 5,767,967 2,021,281 Total revenues 98,058,193 98,058,193 99,031,285 973,092 Expenditures: Current: Administrative services 16,769,581 17,096,826 16,310,983 785,843 Police 32,682,147 32,682,147 31,376,078 1,306,069 Fire 21,559,718 21,565,568 21,460,539 105,029 Parks and recreation 7,896,334 7,902,719 7,170,632 732,087 Accounting/finance 1,254,743 1,306,794 1,165,466 141,328 Community development 2,831,697 2,832,696 2,602,408 230,288 Public works 6,552,117 6,567,417 6,420,334 147,083 Health 4,374,422 4,376,452 4,237,708 138,744 Traffic and transportation 2,227,701 2,227,701 2,043,032 184,669 Capital outlay 6,317,223 10,650,378 5,078,296 5,572,082 Total expenditures 102,465,683 107,208,698 97,865,476 9,343,222 Excess of revenues over(under)expenditures (4,407,490) (9,150,505) 1,165,809 10,316,314 Other financing sources(uses): Transfers in 5,380,216 5,380,216 3,288,409 (2,091,807) Transfers out (972,726) (972,726) (2,264,583) (1,291,857) Total other financing sources(uses) 4,407,490 4,407,490 1,023,826 (3,383,664) Excess of revenues and other sources over(under)expenditures and other uses - (4,743,015) 2,189,635 6,932,650 Fund balance-beginning 48,665,119 48,665,119 48,665,119 - Fund balance-ending $ 48,665,119 $ 43,922,104 $ 50,854,754 $ 6,932,650 70 CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS TEXAS MUNICIPAL RETIREMENT SYSTEM 2023 2022 2021 2020 Total Pension Liability Service cost $ 7,724,088 $ 7,290,057 $ 6,571,147 $ 6,472,668 Interest on total pension liability 22,017,837 21,000,865 20,199,933 19,539,894 Changes of benefit terms - - - - Difference between expected and actual experience 1,137,336 4,338,549 937,276 (1,175,031) Changes of assumptions (3,012,418) - - - Benefit payments/refunds of contributions (18,544,887) (17,015,598) (15,388,693) (14,828,151) Net change in total pension liability 9,321,956 15,613,873 12,319,663 10,009,380 Total pension liability, beginning 331,600,570 315,986,697 303,667,034 293,657,654 Total pension liability, ending (a) $340,922,526 $ 331,600,570 $315,986,697 $303,667,034 Fiduciary Net Position Contributions-employer $ 9,040,321 $ 8,622,779 $ 7,844,017 $ 7,598,124 Contributions-employee 3,909,517 3,673,895 3,311,593 3,257,273 Net investment income 30,462,384 (21,100,627) 33,864,112 18,618,015 Benefit payments/refunds of contributions (18,544,887) (17,015,598) (15,388,693) (14,828,151) Administrative expenses (194,195) (182,885) (156,861) (120,598) Other (1,356) 218,235 1,072 (4,705) Net change in fiduciary net position 24,671,784 (25,784,201) 29,475,240 14,519,958 Fiduciary net position, beginning 263,743,301 289,527,502 260,052,262 245,532,304 Fiduciary net position, ending (b) $288,415,085 $ 263,743,301 $289,527,502 $260,052,262 Net pension liability, ending= (a) -(b) $ 52,507,441 $ 67,857,269 $ 26,459,195 $ 43,614,772 Fiduciary net position as a%of total pension liability 84.60% 79.54% 91.63% 85.64% Covered payroll $ 55,850,239 $ 52,484,212 $ 47,308,476 $ 46,532,477 Net pension liability as a%of covered payroll 94.01% 129.29% 55.93% 93.73% 71 EXHIBIT B-2 2019 2018 2017 2016 2015 2014 $ 6,447,967 $ 4,990,566 $ 4,917,413 $ 2,466,531 $ 4,697,339 $ 4,098,031 18,913,918 17,400,438 16,873,140 16,126,720 16,093,246 15,665,423 12,613,317 - - - - - (1,475,630) 540,881 (1,117,057) 3,641,511 203,406 (2,042,671) (26,378) - - - 1,340,184 - (14,368,878) (13,335,060) (12,461,447) (12,342,806) (12,073,025) (11,744,340) 22,104,316 9,596,825 8,212,049 9,891,956 10,261,150 5,976,443 271,553,338 261,956,513 253,744,464 243,852,508 233,591,358 227,614,915 $293,657,654 $271,553,338 $261,956,513 $ 253,744,464 $243,852,508 $233,591,358 $ 5,913,578 $ 5,783,625 $ 5,565,648 $ 5,339,437 $ 5,639,053 $ 5,379,333 2,590,541 2,558,451 2,470,741 2,494,525 2,497,984 2,303,770 33,663,780 (6,883,878) 28,538,620 13,331,438 296,795 11,109,980 (14,368,878) (13,335,060) (12,461,447) (12,342,806) (12,073,025) (11,744,340) (190,372) (133,122) (147,954) (150,608) (180,789) (116,005) (5,719) (6,955) (7,498) (8,114) (8,931) (9,538) 27,602,930 (12,016,939) 23,958,110 8,663,872 (3,828,913) 6,923,200 217,929,374 229,946,313 205,988,203 197,324,331 201,153,244 194,230,044 $245,532,304 $217,929,374 $229,946,313 $ 205,988,203 $197,324,331 $201,153,244 $ 48,125,350 $ 53,623,964 $ 32,010,200 $ 47,756,261 $ 46,528,177 $ 32,438,114 83.61% 80.25% 87.78% 81.18% 80.92% 86.11% $ 46,321,599 $ 45,081,895 $ 44,380,980 $ 44,793,885 $ 45,036,746 $ 41,538,672 103.89% 118.95% 72.13% 106.61% 103.31% 78.09% CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS TEXAS MUNICIPAL RETIREMENT SYSTEM 2024 2023 2022 2021 Actuarial determined contribution $ 9,713,387 $ 8,844,724 $ 8,805,755 $ 7,624,424 Contributions in relation to the actuarially determined contribution (9,713,387) (8,844,724) (8,805,755) (7,624,424) Contribution deficiency Covered payroll $ 59,147,881 $ 54,472,026 $ 53,500,680 $ 46,206,994 Contributions as a percentage of covered payroll 16.42% 16.24% 16.46% 16.50% Valuation Date: Actuarially determined contribution rates are calculated as of December 31 and become effective 13 months later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll,Closed Remaining Amortization Period 22 years(longest amortization ladder) Asset Valuation Method 10 Year smoothed market; 12%soft corridor Inflation 2.5% Salary Increases 3.60%to 11.85%including inflation Investment Rate of Return 6.75% Retirement Age Experience-based table of rates that vary by ages. Last updated for the 2023 valuation pursuant to an experience study of the period ending 2022. Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. Male rates are multiplied by 103% and female rates are multiplied by 105%. The rates are projected on a fully generational basis with scale MP-2021(with immediate convergence). Pre-retirement: PUB(10) mortality tables, with 110% the Public Safety table used for males and 100%of the General Employee table used for females. The rates are projected on a fully generational basis with scale MP-2021(with immediate convergence). Other Information: There were no benefit changes during the year. 72 EXHIBIT B-3 2020 2019 2018 2017 2016 2015 $ 7,185,753 $ 5,877,907 $ 5,675,065 $ 5,521,772 $ 5,427,145 $ 5,422,031 (7,185,753) (5,877,907) (5,675,065) (5,521,772) (5,427,145) (5,422,031) $ $ $ - $ - $ - $ - $ 46,894,603 $ 45,968,759 $ 44,522,000 $ 44,687,123 $ 44,674,967 $ 42,951,296 15.32% 12.79% 12.75% 12.36% 12.15% 12.62% CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND 2023 2022 2021 2020 Total Pension Liability Service cost $ 2,928,522 $ 2,640,087 $ 3,462,346 $ 3,066,397 Interest on total pension liability 6,880,704 6,792,673 6,175,999 6,287,518 Changes of benefit terms - - - - Difference between expected and actual experience 1,286,962 - (2,700,656) - Changes of assumptions (1,036,875) 2,195,408 (20,894,841) 8,631,596 Benefit payments/refunds of contributions (6,317,093) (6,006,806) (6,535,299) (5,901,298) Net change in total pension liability 3,742,220 5,621,362 (20,492,451) 12,084,213 Total pension liability, beginning 123,099,731 117,478,369 137,970,820 125,886,607 Total pension liability, ending (a) $126,841,951 $ 123,099,731 $117,478,369 $ 137,970,820 Fiduciary Net Position Contributions-employer $ 2,109,816 $ 1,646,524 $ 1,615,588 $ 1,551,830 Contributions-employee 1,695,157 1,615,459 1,583,797 1,551,830 Net investment income 6,795,399 (8,438,527) 8,128,492 7,864,359 Benefit payments/refunds of contributions (6,317,093) (6,006,806) (6,535,299) (5,901,298) Administrative expenses (97,104) (144,781) (266,037) (115,915) Other 28,430 10,060 3,386 Net change in fiduciary net position 4,214,605 (11,318,071) 4,529,927 4,950,806 Fiduciary net position, beginning 51,040,616 62,358,687 57,828,760 52,877,954 Fiduciary net position, ending (b) $ 55,255,221 $ 51,040,616 $ 62,358,687 $ 57,828,760 Net pension liability, ending= (a)-(b) $ 71,586,730 $ 72,059,115 $ 55,119,682 $ 80,142,060 Fiduciary net position as a%of total pension liability 43.56% 41.46% 53.08% 41.91% Covered payroll $ 13,039,659 $ 12,426,596 $ 12,183,054 $ 11,937,154 Net pension liability(asset) as a%of covered payroll 548.99% 579.88% 452.43% 671.37% 73 EXHIBIT B-4 2019 2018 2017 2016 2015 2014 $ 2,916,767 $ 3,073,858 $ 2,859,969 $ 1,560,472 $ 1,493,672 $ 1,447,068 6,110,936 5,899,445 5,728,347 5,827,804 5,298,361 5,537,931 - (5,007,726) - - 7,781 - (399,085) - 5,304,698 (2,151,748) (1,542,023) (320,862) 3,933,059 (1,453,521) 14,862,872 24,107,651 - (423,984) (5,759,722) (5,292,918) (5,250,040) (4,543,166) (3,950,906) (3,616,549) 6,801,955 (2,780,862) 23,505,846 24,801,013 1,306,885 2,623,604 119,084,652 121,865,514 98,359,668 73,558,655 72,251,770 69,628,166 $125,886,607 $ 119,084,652 $121,865,514 $ 98,359,668 $ 73,558,655 $ 72,251,770 $ 1,442,485 $ 1,455,950 $ 1,411,351 $ 1,283,410 $ 1,273,913 $ 1,232,957 1,468,465 1,475,242 1,463,122 1,350,904 1,221,926 1,144,644 9,142,584 (2,225,595) 6,581,299 2,577,572 421,270 3,284,243 (5,759,722) (5,292,918) (5,250,040) (4,543,166) (3,950,906) (3,616,549) (111,432) (96,102) (124,267) (115,843) (87,245) (85,636) - - 347,490 250 - - 6,182,380 (4,683,423) 4,428,955 553,127 (1,121,042) 1,959,659 46,695,574 51,378,997 46,950,042 46,396,915 47,517,957 45,558,298 $ 52,877,954 $ 46,695,574 $ 51,378,997 $ 46,950,042 $ 46,396,915 $ 47,517,957 $ 73,008,653 $ 72,389,078 $ 70,486,517 $ 51,409,626 $ 27,161,740 $ 24,733,813 42.00% 39.21% 42.16% 47.73% 63.07% 65.77% $ 11,295,885 $ 11,348,015 $ 11,254,785 $ 10,391,569 $ 10,182,717 $ 9,520,903 646.33% 637.90% 626.28% 494.72% 266.74% 259.78% CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND 2024 2023 2022 2021 Actuarial determined contribution $ 2,245,965 $ 2,004,905 $ 1,633,202 $ 1,587,003 Contributions in relation to the actuarially determined contribution (2,245,965) (2,004,905) (1,633,202) (1,587,003) Contribution deficiency Covered payroll $ 13,670,605 $ 12,917,098 $ 12,326,052 $ 12,039,888 Contributions as a percentage of covered payroll 16.43% 15.52% 13.25% 13.18% Valuation Date: January 1,2024 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Compensation Remaining Amortization Period 43.3 years(as of 1/1/2020 valuation) Mortality PubS-2010(amount-weighted)tables Retirement Age Based upon tables dependent upon hire date, in conjunction with an actuarial study dated October 2017. Retirement Election Members eligible for the DROP are assumed to elect either straight service retirement benefits or the DROP,whichever is more valuable. Other members are assumed to receive straight service retirement benefits. Termination Rates Based upon service table, in conjunction with an actuarial experience study dated October 2017. Disability Rates Based upon member age, in conjunction with an actuarial experience study dated October 2017. Interest Rate: 7.75%per year,compounded annually, net of expenses.This is supported by the asset allocation of the trust and the long-term expected return by asset class. Salary Increases Based upon service table, in conjunction with an actuarial experience study dated October 2017. 74 EXHIBIT B-5 2020 2019 2018 2017 2016 2015 $ 1,508,426 $ 1,455,581 $ 1,411,351 $ 1,283,410 $ 1,273,913 $ 1,232,957 (1,508,426) (1,455,581) (1,411,351) (1,283,410) (1,273,913) (1,232,957) $ - $ - $ - $ - $ - $ $ 11,834,931 $ 11,500,098 $ 11,214,407 $ 10,929,570 $ 11,088,538 $ 10,179,831 12.75% 12.66% 12.59% 11.74% 11.49% 12.11% Payroll Growth 4.00%per year for amortization of the Unfunded Actuarial Accrued Liability.The assumed payroll growth was approved in conjunction with an actuarial study dated October 2017. Marital Status: 100%of actives are assumed to be married at time of benefit commence- ment. Males are assumed to be two years older than their spouses. Dependent Children: Each member is assumed to have two children.The first child is assumed to have been born when the member was 25.The second child is assumed to be two years younger. It is also assumed that benefits will be paid until each child reaches the age of 20. Contribution Rates: Members-13.00% City-13.25% Actuarial Asset Method: Fair Market Value CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS CITY OF WICHITA FALLS RETIREE HEALTH CARE PLAN 2023 2022 Total OPEB Liability Service cost $ 649,071 $ 628,392 Interest on total OPEB liability 1,606,708 980,948 Changes of benefit terms - - Difference between expected and actual experience - 266,525 Changes of assumptions - (318,362) Benefit payments/refunds of contributions (1,906,024) (2,158,526) Net change in total OPEB liability 349,755 (601,023) Total OPEB liability, beginning 24,107,022 24,708,045 Total OPEB liability, ending (a) $ 24,456,777 $ 24,107,022 Fiduciary Net Position Contributions-employer $ 2,221,786 $ 2,580,498 Contributions-employee -Net investment income 5,588,971 (1,558,642) Benefit payments/refunds of contributions (1,906,024) (2,158,526) Administrative expenses - - Other - - Net change in fiduciary net position 5,904,733 (1,136,670) Fiduciary net position, beginning 8,674,869 9,811,539 Fiduciary net position, ending (b) $ 14,579,602 $ 8,674,869 Net OPEB liability/(asset), ending =(a)-(b) $ 9,877,175 $ 15,432,153 Fiduciary net position as a%of total OPEB liability 59.61% 35.98% Covered payroll $ 64,344,926 $ 62,111,131 Net OPEB liability(asset) as a%of covered payroll 15.35% 24.85% This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with the standards of GASB 74/75, they should not be shown here. Therefore, we have shown only years for which the new GASB statements have been prepared. 75 EXHIBIT B-6 2021 2020 2019 2018 2017 $ 667,554 $ 557,600 $ 523,568 $ 518,007 $ 505,385 1,593,949 1,471,238 1,432,914 1,480,271 1,456,410 678,603 - (705,047) - 733,999 281,546 765,976 - (1,667,492) (1,689,454) (1,685,098) (1,679,932) (1,584,144) 594,011 1,751,986 552,930 379,275 377,651 24,114,034 22,362,048 21,809,118 21,429,843 21,052,192 $ 24,708,045 $ 24,114,034 $ 22,362,048 $ 21,809,118 $ 21,429,843 $ 2,059,484 $ 2,051,116 $ 2,214,088 $ 2,260,421 $ 2,029,653 1,459,619 1,022,243 1,204,836 (374,667) 737,181 (1,667,492) (1,689,454) (1,685,098) (1,679,932) (1,584,144) - - (1,202) (4,171) - (344,259) - - 1,851,611 1,383,905 1,389,567 204,620 1,178,519 7,959,928 6,576,023 5,186,456 4,981,836 3,803,317 $ 9,811,539 $ 7,959,928 $ 6,576,023 $ 5,186,456 $ 4,981,836 $ 14,896,506 $ 16,154,106 $ 15,786,025 $ 16,622,662 $ 16,448,007 39.71% 33.01% 29.41% 23.78% 23.25% $ 63,620,585 $ 59,760,545 $ 58,259,148 $ 57,044,011 $ 55,647,372 23.41% 27.03% 27.10% 29.14% 29.56% CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS CITY OF WICHITA FALLS RETIREE HEALTH CARE PLAN 2024 2023 2022 Actuarial determined contribution $ 3,011,353 $ 2,765,123 $ 2,196,691 Contributions in relation to the actuarially determined contribution (2,221,786) (2,580,498) (2,292,372) Contribution deficiency(excess) $ 789,567 $ 184,625 $ (95,681) Covered payroll $ 64,344,926 $ 62,111,131 $ 59,568,372 Contributions as a percentage of covered payroll 3.45% 4.15% 3.85% Valuation Date: December 31, 2022 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry age, level percentage of salary Amortization Method Level dollar Remaining Amortization Period 10 years; closed Asset Valuation Market Value Investment Rate of Return 6.75%, net of investment expenses, including inflation Inflation 2.25% Salary Increases 2.75% Payroll Growth 3.00% Demographic Assumptions TMRS: Based on the experience study covering the four-year period ending December 31, 2014 as conducted for the TMRS. Fire: Based on the January 1, 2018 valuation for the Wichita Falls Firemen's Relief and Retirement Fund. 76 EXHIBIT B-7 2021 2020 2019 2018 $ 2,125,861 $ 2,198,413 $ 2,134,381 $ 2,072,215 (1,966,977) (2,153,169) (2,453,913) (2,072,215) $ 158,884 $ 45,244 $ (319,532) $ - $ 54,420,074 $ 55,361,994 $ 58,359,009 $ 55,042,215 3.61% 3.89% 4.20% 3.76% Mortality The actuarial valuation used the PUB-2010 sex distinct headcount weighted mortality tables with generational mortality improvement scale MP-2021. Participation Rates 45% of participants are assumed to elect coverage if they retire at the age of 49 or older. Healthcare Cost Initial rate of 6.51%declining to ultimate rates of 4.14% in Trend Rates the year 2043 Other Information: There were no benefit changes during the year. CITY OF WICHITA FALLS, TEXAS NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2024 Budgetary Information General Fund 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 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$4,743,015 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. ARPA Fund A budget is not legally required for the ARPA Fund; therefore, a budgetary comparison schedule is not presented for that fund. Texas Municipal Retirement System Changes of benefit terms: For measurement date 12/31/2019, amounts reported as changes of benefit terms resulted from the City adopting a 7%employee contribution rate for all employees. 77 CITY OF WICHITA FALLS, TEXAS NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION (CONT'D.) SEPTEMBER 30, 2024 Wichita Falls Firemen's Relief and Retirement Fund Changes of benefit terms: For measurement date 12/31/2018, amounts reported as changes of benefit terms resulted from the following benefit amendments that were implemented into the Fund for all active participants: - A maximum accrued benefit cap of$100,000 per year - The average final compensation period was increased from 3 years to 5 years - The normal form of annuity payments was amended from a 66-2/3%Joint & Survivor Annuity to a Life Annuity Effective April 20,2016,there have been multiple changes in benefits, as follows: - The member contribution rate was increased from 12%to 13%of salary for all members. - All future new entrants will accrue benefits under a "Tier 2" benefit structure. Changes of assumptions: For purposes of determining the GASB discount rate at the 12/31/2019 measurement date, a depletion date projection as of that date was performed. The results of this projection showed a single discount rate of 4.99%.The discount rate was decreased from 5.13%to 4.99%. For purposes of determining the GASB discount rate at the 12/31/2018 measurement date, a depletion date projection as of that date was performed. The results of this projection showed a single discount rate of 5.13%.The discount rate was increased from 5.03%to 5.13%. For purposes of determining the GASB discount rate at the 12/31/2017 measurement date, a depletion date projection as of that date was performed. The results of this projection showed a single discount rate of 5.03%.The discount rate was decreased from 5.81%to 5.03%. As a result of an actuarial experience study dated October 6, 2017, the following assumption changes were approved by the Board of Trustees: - The investment return assumption was lowered from 8.00% to 7.75% per year, net of all expenses. - The assumed rates of salary increases were amended. - The assumed rates of retirement were amended. - The assumed rates of withdrawal were amended. - The assumed rates of disablement were amended. For purposes of determining the GASB discount rate at the 12/31/2016 measurement date, a depletion date projection as of that date was performed. The results of this projection showed a single discount rate of 5.81%.The discount rate was decreased from 8.00%to 5.81%. 78 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 either legally restricted to be expended for specified purposes or have revenue sources committed for specific 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. MPEC/Hotel/Motel Tax Fund The MPEC/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. These funds are used to support the City's Multi-Purpose Events Center. Hotel/Motel Venue Tax Fund The Hotel/Motel Venue Tax Fund accounts for revenues derived from an additional occupancy tax which is expended on projects classified as a venue such as an arena, coliseum, stadium, or other facilities. Airport Improvement Grant Fund The Airport Improvement Grant Fund is used to account for improvements made to the City's Regional Airport that are funded by state and federal grants. Golf Fund The Golf Fund accounts for the activities at the Weeks Park Golf Course. 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. 2018-A Bond Projects This fund was established to account for the proceeds of the Series 2018-A General Obligation Bonds that were issued for the purpose of street improvements within the City. Venue Tax Bond Projects This fund was established to account for projects financed by the Venue Tax Revenue Bonds, Series 2021. These funds are to be used to make renovations to the Multi-Purpose Events Center and Memorial Auditorium. 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 30,2024 Special Revenue Home MPEC/ Community Investment Hotel/ Hotel/ Airport Development Section 8 Partnership Motel Motel Improvement Block Grant Housing Agreement Tax Venue Tax Grant ASSETS Cash and cash equivalents $ 324,993 $ 2,784,821 $ 172,258 $ 1,136,489 $ 1,484,069 $ 322,700 Receivables: Taxes and assessments - - - 176,190 50,344 - Government agencies 1,350,818 (24,943) 2,164,894 - - 1,262,174 Other 8,455 - - 543,567 - - Inventory - - - 34,422 - - Prepaid items - - - - -Other assets - - - 17,320 - - Total assets $ 1,684,266 $ 2,759,878 $ 2,337,152 $ 1,907,988 $ 1,534,413 $ 1,584,874 LIABILITIES AND FUND BALANCE Liabilities Accounts payable-trade $ 18,132 $ 353 $ - $ 78,518 $ - $ 34,727 Accrued payroll 6,455 8,889 594 44,743 - - Payable to other City funds 381,343 - - 1,192,612 - 1,767,763 Payable to government agencies - 72,460 20,000 (4,587) - - Other liabilities 2,725 (29,855) 24,744 239,811 - 5,613 Unearned revenue - - - 63,089 -Total liabilities 408,655 51,847 45,338 1,614,186 - 1,808,103 Deferred inflows of resources Unavailable revenues - - - - - - Fund balance: Nonspendable: Inventory and prepaid items - - - 34,422 - - Permanent fund principal - - - - - - Restricted for: Debt service - - - - - - Capital projects - - - - - - Federal and state grant programs 1,275,611 2,708,031 2,291,814 - - - Tourism - - - 259,380 1,534,413 - Committed for: Local projects - - - - - - Unassigned - - - - - (223,229) Total fund balance 1,275,611 2,708,031 2,291,814 293,802 1,534,413 (223,229) Total liabilities,deferred inflows of resources and fund balances $ 1,684,266 $ 2,759,878 $ 2,337,152 $ 1,907,988 $ 1,534,413 $ 1,584,874 79 EXHIBIT C-1 Permanent Debt Service Capital Projects Fund Total Miscellaneous 2018-A Venue Tax Miscellaneous Nonmajor Golf Special Debt Excess Bond Bond Capital Perpetual Governmental Fund Revenue Service Sales Tax Projects Projects Projects Care Funds $ 146,876 $ 4,424,860 $ 1,270,282 $ 435,580 $ 2,422,097 $ 142,830 $ 785,371 $ 2,163,297 $ 18,016,523 53,519 - - - - - 280,053 1,025,036 23,530 - - - - - 5,801,509 (70,652) 30,809 - - - - - - 512,179 34,422 3,641 - 676,900 - - - - - 680,541 9,871 3,000 - - - - - - 30,191 $ 89,736 $ 5,483,705 $ 2,024,231 $ 435,580 $ 2,422,097 $ 142,830 $ 785,371 $ 2,163,297 $ 25,355,418 $ 99,281 $ 52,321 $ - $ - $ (29,535) $ - $ - $ - $ 253,797 71,100 - - - - - - 131,781 1,749,981 - - - - (2,625) - 5,089,074 2,302 - - - - - - 90,175 682 97,978 - - (2,083) - 58,662 - 398,277 37,236 - - - - - - 100,325 99,963 2,010,918 - - (31,618) - 56,037 - 6,063,429 70,059 - - - - - 70,059 676,900 - - - - - 711,322 2,163,297 2,163,297 1,277,272 435,580 - - - - 1,712,852 2,453,715 142,830 729,334 - 3,325,879 6,275,456 1,793,793 3,472,787 - - - - - - 3,472,787 (10,227) - - - - - - - (233,456) (10,227) 3,472,787 1,954,172 435,580 2,453,715 142,830 729,334 2,163,297 19,221,930 $ 89,736 $ 5,483,705 $ 2,024,231 $ 435,580 $ 2,422,097 $ 142,830 $ 785,371 $ 2,163,297 $ 25,355,418 CITY OF WICHITA FALLS,TEXAS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2024 Special Revenue Home MPEC/ Community Investment Hotel/ Hotel/ Airport Development Section 8 Partnership Motel Motel Improvement Block Grant Housing Agreement Tax Venue Tax Grant Revenues: Taxes $ - $ - $ - $ 2,321,697 $ 690,534 $ - Charges for services 15,518 - - 952 7,655 - Fines and forfeitures - - - - - - Intergovernmental revenue 1,220,974 5,490,179 459,482 - - 1,470,179 Contributions - - - 35,000 - - Miscellaneous revenue 15,877 235,413 1,100 2,101,053 - - Total revenues 1,252,369 5,725,592 460,582 4,458,702 698,189 1,470,179 Expenditures: Current: Administrative services 185,327 - - 53,763 - - Police - - - - - - Fire - - - - - - Parks and recreation 335 - - - - - Accounting/finance - - - - - - Community development 791,208 5,228,037 115,657 - - - Public works - - - - - - Health - - - - - - Traffic and transportation 16,000 - - - - 470,179 Multi-Purpose Events Center - - - 4,462,383 - - Capital outlay - - - 81,655 - - Debt service: Principal retirement - - - - 55,000 - Interest and paying agent fees - - - - 101,400 - Total expenditures 992,870 5,228,037 115,657 4,597,801 156,400 470,179 Excess of revenues over (under)expenditures 259,499 497,555 344,925 (139,099) 541,789 1,000,000 Other financing sources(uses): Issuance of subscription liabilities - - - 73,405 - - Transfers in - - - 126,455 - - Transfers out - - - (60,761) - (1,081,644) Total other financing sources(uses) - - - 139,099 - (1,081,644) Net change in fund balance 259,499 497,555 344,925 - 541,789 (81,644) Fund balance-beginning,as previously reported 1,016,112 2,210,476 1,946,889 293,802 992,624 (141,585) Restatement for correction of an error - - - - - - Fund balance-beginning,as restated 1,016,112 2,210,476 1,946,889 293,802 992,624 (141,585) Fund balance-ending $ 1,275,611 $ 2,708,031 $ 2,291,814 $ 293,802 $ 1,534,413 $ (223,229) 80 EXHIBIT C-2 Permanent Debt Service Capital Projects Fund Total Miscellaneous 2018-A Venue Tax Miscellaneous Nonmajor Golf Special Debt Excess Bond Bond Capital Perpetual Governmental Fund Revenue Service Sales Tax Projects Projects Projects Care Funds $ - $ - $ 2,075,715 $ - $ - $ - $ - $ - $ 5,087,946 700,818 80,435 - - - - - - 805,378 278,246 - - - - - - 278,246 4,211,261 - - - - - - 12,852,075 982,596 1,581,012 - - - - - 2,598,608 535,495 539,970 230,437 16 188,701 142,830 46,314 273,658 4,310,864 1,236,313 6,092,508 3,887,164 16 188,701 142,830 46,314 273,658 25,933,117 1,261,477 206,613 - - - - - - 1,707,180 553,089 - - - - - - 553,089 586,432 - - - - - - 586,432 21,691 - - - - - - 22,026 20,412 6,000 - - - - - 26,412 364 - - - - - - 6,135,266 13,037 - - - - - - 13,037 3,510,079 - - - - - - 3,510,079 833,956 - - - - - - 1,320,135 4,462,383 81,655 3,811,606 - - - - - 3,866,606 1,303,949 - - - - - 1,405,349 1,261,477 5,745,673 5,121,555 - - - - - 23,689,649 (25,164) 346,835 (1,234,391) 16 188,701 142,830 46,314 273,658 2,243,468 73,405 25,165 286,072 1,648,507 - - - - - 2,086,199 (278,635) - - - - - - (1,421,040) 25,165 7,437 1,648,507 - - - - - 738,564 1 354,272 414,116 16 188,701 142,830 46,314 273,658 2,982,032 (10,228) 3,118,515 1,928,656 435,564 2,265,014 - 683,020 1,889,639 16,628,498 (388,600) - - - - - (388,600) (10,228) 3,118,515 1,540,056 435,564 2,265,014 - 683,020 1,889,639 16,239,898 $ (10,227) $ 3,472,787 $ 1,954,172 $ 435,580 $ 2,453,715 $ 142,830 $ 729,334 $ 2,163,297 $ 19,221,930 EXHIBIT C-3 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE- COMMUNITY DEVELOPMENT BLOCK GRANT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Charges for services $ - $ - $ 15,518 $ 15,518 Intergovernmental revenue 1,438,808 1,438,808 1,220,974 (217,834) Miscellaneous revenue - - 15,877 15,877 Total revenues 1,438,808 1,438,808 1,252,369 (186,439) Expenditures: Administrative services 128,202 193,202 185,327 7,875 Parks and recreation 237,634 237,634 335 237,299 Community development 1,056,972 1,056,972 791,208 265,764 Traffic and transportation 16,000 16,000 16,000 - Capital outlay - - - - Total expenditures 1,438,808 1,503,808 992,870 510,938 Excess of revenues over(under) expenditures - (65,000) 259,499 324,499 Fund balance-beginning 1,016,112 1,016,112 1,016,112 - Fund balance-ending $ 1,016,112 $ 951,112 $ 1,275,611 $ 324,499 81 EXHIBIT C-4 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-SECTION 8 HOUSING FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental revenue $ 4,110,448 $ 4,110,448 $ 5,490,179 $ 1,379,731 Miscellaneous revenue 190,356 190,356 235,413 45,057 Total revenues 4,300,804 4,300,804 5,725,592 1,424,788 Expenditures: Community development 4,300,804 4,300,804 5,228,037 (927,233) Total expenditures 4,300,804 4,300,804 5,228,037 (927,233) Excess of revenues over(under) expenditures - - 497,555 497,555 Fund balance-beginning 2,210,476 2,210,476 2,210,476 - Fund balance-ending $ 2,210,476 $ 2,210,476 $ 2,708,031 $ 497,555 82 EXHIBIT C-5 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE- HOME INVESTMENT PARTNERSHIP AGREEMENT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental revenue $ 461,557 $ 461,557 $ 459,482 $ (2,075) Miscellaneous revenue - - 1,100 1,100 Total revenues 461,557 461,557 460,582 (975) Expenditures: Community development 461,557 461,557 115,657 345,900 Total expenditures 461,557 461,557 115,657 345,900 Excess of revenues over(under) expenditures - - 344,925 344,925 Fund balance-beginning 1,946,889 1,946,889 1,946,889 - Fund balance-ending $ 1,946,889 $ 1,946,889 $ 2,291,814 $ 344,925 83 EXHIBIT C-6 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE- MPEC/HOTEL/MOTEL TAX FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 2,305,000 $ 2,305,000 $ 2,321,697 $ 16,697 Charges for services - - 952 952 Contributions 35,000 35,000 35,000 - Miscellaneous revenue 1,896,000 1,896,000 2,101,053 205,053 Total revenues 4,236,000 4,236,000 4,458,702 222,702 Expenditures: Administrative services 56,000 56,000 53,763 2,237 Multi-Purpose Events Center 4,680,000 4,680,000 4,462,383 217,617 Capital outlay - 121,596 81,655 39,941 Total expenditures 4,736,000 4,857,596 4,597,801 259,795 Excess of revenues over(under) expenditures (500,000) (621,596) (139,099) 482,497 Other financing sources(uses): Issuance of subscription liabilities - - 73,405 73,405 Transfers in 500,000 500,000 126,455 (373,545) Transfers out - - (60,761) (60,761) Total other financing sources(uses) 500,000 500,000 139,099 (360,901) Excess of revenues and other sources over(under)expenditures and other uses - (121,596) - 121,596 Fund balance-beginning 293,802 293,802 293,802 - Fund balance-ending $ 293,802 $ 172,206 $ 293,802 $ 121,596 84 EXHIBIT C-7 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE- HOTEL/MOTEL VENUE TAX FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 600,000 $ 600,000 $ 690,534 $ 90,534 Charges for services - - 7,655 7,655 Total revenues 600,000 600,000 698,189 98,189 Expenditures: Capital outlay 600,000 600,000 - 600,000 Debt service: Principal retirement - - 55,000 (55,000) Interest and paying agent fees - - 101,400 (101,400) Total expenditures 600,000 600,000 156,400 443,600 Excess of revenues over(under) expenditures - - 541,789 541,789 Fund balance-beginning 992,624 992,624 992,624 - Fund balance-ending $ 992,624 $ 992,624 $ 1,534,413 $ 541,789 85 EXHIBIT C-8 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-GOLF FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Charges for services $ 583,000 $ 583,000 $ 700,818 $ 117,818 Miscellaneous revenue 371,391 371,391 535,495 164,104 Total revenues 954,391 954,391 1,236,313 281,922 Expenditures: Administrative services 954,391 1,167,296 1,261,477 (94,181) Total expenditures 954,391 1,167,296 1,261,477 (94,181) Excess of revenues over(under) expenditures - (212,905) (25,164) 187,741 Other financing sources(uses): Transfers in - 212,905 25,165 (187,740) Excess of revenues and other sources over(under)expenditures and other uses - - 1 1 Fund balance-beginning (10,228) (10,228) (10,228) - Fund balance-ending $ (10,228) $ (10,228) $ (10,227) $ 1 86 EXHIBIT C-9 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE- DEBT SERVICE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 2,150,000 $ 2,150,000 $ 2,075,715 $ (74,285) Contributions 1,713,856 1,713,856 1,581,012 (132,844) Miscellaneous revenue 187,049 187,049 230,437 43,388 Total revenues 4,050,905 4,050,905 3,887,164 (163,741) Expenditures: Accounting/finance - - 6,000 (6,000) Debt service-principal 4,220,000 4,220,000 3,811,606 408,394 Debt service-interest and paying agent fees 1,492,812 1,492,812 1,303,949 188,863 Total expenditures 5,712,812 5,712,812 5,121,555 591,257 Excess of revenues over(under)expenditures (1,661,907) (1,661,907) (1,234,391) 427,516 Other financing sources(uses): Transfers in 1,661,907 1,661,907 1,648,507 (13,400) Excess of revenues and other sources over(under)expenditures and other uses - - 414,116 414,116 Fund balance-beginning, as previously reported 1,928,656 1,928,656 1,928,656 - Restatement for correction of error - - (388,600) (388,600) Fund balance-beginning, as restated 1,928,656 1,928,656 1,540,056 (388,600) Fund balance-ending $ 1,928,656 $ 1,928,656 $ 1,954,172 $ 25,516 87 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. Regional Airport Fund The Regional Airport Fund accounts for the operations of the Wichita Falls Regional Airport. Operational activities, including administration, operations and maintenance, of the airport are accounted for in this fund. 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 POSITION NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30,2024 Regional Kickapoo Airport Airport Assets Current assets: Cash and cash equivalents $ 535,432 $ - Restricted cash and cash equivalents 2,108,280 - Receivables(net of allowance for uncollectible accounts): Customer and trade - - Government agencies - - Other 60,962 39,320 Inventory 39,735 55,781 Prepaid items 10,861 12,361 Other current assets - - Total current assets 2,755,270 107,462 Capital assets,net of accumulated depreciation 42,931,673 10,781,142 Total assets 45,686,943 10,888,604 Deferred outflows of resources Pension-related 79,374 66,404 OPEB-related 5,686 4,706 Total deferred outflows of resources 85,060 71,110 Liabilities Current liabilities payable from current assets: Accounts payable-trade 6,308 1,135 Accrued payroll 12,321 8,770 Accrued vacation and sick leave 2,864 9,952 Payable to other City funds 141,832 22,022 Payable to government agencies (781) 7 Other liabilities 110,637 20,119 Right-to-use leases,current maturities 31,302 - Total current liabilities payable from current assets 304,483 62,005 Long-term liabilities: Right-to-use leases,less current maturities 2,788,165 Net pension liability 239,220 200,132 Net OPEB liability 28,644 23,705 Total long-term liabilities 3,056,029 223,837 Total liabilities 3,360,512 285,842 Deferred inflows of resources Pension-related 9,603 8,034 OPEB-related 9,654 7,990 Total deferred inflows of resources 19,257 16,024 Net position Net investment in capital assets 40,112,206 10,781,142 Unrestricted 2,280,028 (123,294) Total net position $ 42,392,234 $ 10,657,848 88 EXHIBIT D-1 Total Non major Stormwater Enterprise Transit Drainage Waterpark Funds $ $ 11,665,776 $ 1,172,558 $ 13,373,766 2,108,280 401,135 - 401,135 1,430,518 - - 1,430,518 (4,138) - (11,626) 84,518 82,577 - - 178,093 23,222 260,486 260,486 1,508,957 12,066,911 1,421,418 17,860,018 17,366,939 32,392,335 2,592,575 106,064,664 18,875,896 44,459,246 4,013,993 123,924,682 390,066 73,854 - 609,698 29,020 7,451 - 46,863 419,086 81,305 - 656,561 62,895 169,641 - 239,979 45,730 8,445 - 75,266 72,258 17,338 - 102,412 3,527,309 - - 3,691,163 (774) 20,971 104,230 - 255,957 31,302 3,729,163 299,654 - 4,395,305 2,788,165 1,175,601 222,585 - 1,837,538 146,182 37,533 - 236,064 1,321,783 260,118 - 4,861,767 5,050,946 559,772 - 9,257,072 47,192 8,935 - 73,764 49,271 12,651 - 79,566 96,463 21,586 - 153,330 17,366,939 32,392,335 2,592,575 103,245,197 (3,219,366) 11,566,858 1,421,418 11,925,644 $ 14,147,573 $ 43,959,193 $ 4,013,993 $ 115,170,841 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2024 Regional Kickapoo Airport Airport Operating revenues: Charges for services $ 45,596 $ - Rents,concessions and other 1,715,692 1,110,856 Total operating revenues 1,761,288 1,110,856 Operating expenses: Personnel services 425,673 333,243 Supplies and materials 518,879 477,498 Maintenance and repairs 64,136 72,987 Utilities and other services 265,400 104,464 Insurance and contract support 62,992 43,838 Other expenses 235,159 44,927 Depreciation and amortization 1,609,408 527,141 Total operating expenses 3,181,647 1,604,098 Operating income(loss) (1,420,359) (493,242) Nonoperating revenues (expenses): Investment earnings 109,236 3,567 Interest expense and paying agent fees (27,595) - Intergovernmental operating grants - - Total nonoperating revenues (expenses) 81,641 3,567 Income (loss) before capital contributions and transfers (1,338,718) (489,675) Transfers in - - Transfers out - - Change in net position (1,338,718) (489,675) Net position-beginning, as previously reported - 11,147,523 Adjustment-change from major fund to nonmajor fund 43,730,952 Net position-beginning, as restated 43,730,952 11,147,523 Net position-ending $ 42,392,234 $ 10,657,848 89 EXHIBIT D-2 Total Nonmajor Stormwater Enterprise Transit Drainage Waterpark Funds $ 475,331 $ 3,767,887 $ 1,173,123 $ 5,461,937 188,558 - 611,564 3,626,670 663,889 3,767,887 1,784,687 9,088,607 1,914,808 324,335 561,823 3,559,882 535,664 9,623 314,410 1,856,074 299,035 24,228 88,679 549,065 242,147 219,799 551,873 1,383,683 28,835 103 58,042 193,810 156,499 15,002 73,294 524,881 400,394 430,441 290,431 3,257,815 3,577,382 1,023,531 1,938,552 11,325,210 (2,913,493) 2,744,356 (153,865) (2,236,603) - 341,945 71,794 526,542 - - - (27,595) 2,346,732 - - 2,346,732 2,346,732 341,945 71,794 2,845,679 (566,761) 3,086,301 (82,071) 609,076 195,116 - - 195,116 - (407,763) - (407,763) (371,645) 2,678,538 (82,071) 396,429 14,519,218 41,280,655 4,096,064 71,043,460 - - - 43,730,952 14,519,218 41,280,655 4,096,064 114,774,412 $ 14,147,573 $ 43,959,193 $ 4,013,993 $ 115,170,841 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2024 Regional Kickapoo Airport Airport Cash flows from operating activities: Receipts from customers and users $ 1,752,082 $1,085,612 Payments to suppliers (973,827) (732,002) Payments for interfund services (252,149) (100,710) Payments to employees (345,484) (258,997) Net cash provided (used) by operating activities 180,622 (6,097) Cash flows from noncapital financing activities: Intergovernmental operating grants - - Interfund loan received (repaid) - 22,028 Transfers out to other funds - - Transfers from other funds - - Net cash provided (used) by noncapital financing activities - 22,028 Cash flows from capital and related financing activities: Acquisition and construction of capital assets - - Principal paid on long-term debt (28,518) - Interest and fees paid on long-term debt (27,595) - Net cash provided (used)for capital and related financing activities (56,113) - Cash flows from investing activities: Interest on investments 109,236 3,567 Net cash provided by investing activities 109,236 3,567 Net Increase(Decrease) in Cash and Cash Equivalents 233,745 19,498 Cash and Cash Equivalents- Beginning 2,409,967 (19,498) Cash and Cash Equivalents- Ending $ 2,643,712 $ - 90 EXHIBIT D-3 (Page 1 of 2) Total Nonmajor Stormwater Enterprise Transit Drainage Waterpark Funds $ 675,869 $ 3,782,299 $ 1,784,687 $ 9,080,549 (1,200,504) (32,368) (1,191,874) (4,130,575) (531,936) (262,414) - (1,147,209) (1,410,082) (250,190) (503,893) (2,768,646) (2,466,653) 3,237,327 88,920 1,034,119 2,570,504 - - 2,570,504 (286,460) - - (264,432) - (407,763) - (407,763) 195,116 - - 195,116 2,479,160 (407,763) - 2,093,425 (17,465) (2,211,685) (511,896) (2,741,046) - - - (28,518) - - - (27,595) (17,465) (2,211,685) (511,896) (2,797,159) - 341,945 71,794 526,542 - 341,945 71,794 526,542 (4,958) 959,824 (351,182) 856,927 4,958 10,705,952 1,523,740 14,625,119 $ - $ 11,665,776 $ 1,172,558 $ 15,482,046 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF CASH FLOWS(CONT'D.) NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2024 Regional Kickapoo Airport Airport Cash flows from operating activities: Operating income(loss) $ (1,420,359) $ (493,242) Adjustments to reconcile operating income(loss) to net cash provided (used) by operating activities: Depreciation and amortization 1,609,408 527,141 (Increase) decrease in assets and deferred outflows of resources: Receivables: Customer and trade - - Other (9,206) (25,244) Inventory 42,842 12,034 Prepaid items (10,861) (12,355) Other current assets - - Deferred outflows-pension-related 46,516 48,381 Deferred outflows-OPEB-related 7,090 473 Increase (decrease) in liabilities and deferred inflows of resources: Accounts payable-trade (487) 577 Accrued payroll 3,851 1,191 Accrued vacation and sick leave (10,167) (1,926) Payable to government agencies (379) - Other liabilities (3,632) (3,272) Net pension liability (62,730) (75,182) Net OPEB liability (28,455) 557 Deferred inflows- pension-related 8,781 7,284 Deferred inflows-OPEB-related 8,410 7,486 Total adjustments 1,600,981 487,145 Net cash provided (used) by operating activities $ 180,622 $ (6,097) 91 EXHIBIT D-3 (Page 2 of 2) Total Nonmajor Stormwater Enterprise Transit Drainage Waterpark Funds $ (2,913,493) $ 2,744,356 $ (153,865) $ (2,236,603) 400,394 430,441 290,431 3,257,815 - 14,412 - 14,412 11,980 - - (22,470) 263 - - 55,139 - - - (23,216) - - (99,450) (99,450) 187,969 55,716 - 338,582 27,953 7,742 - 43,258 38,626 80,011 (346) 118,381 12,581 2,689 - 20,312 7,198 1,260 - (3,635) - - - (379) (7,980) - 52,150 37,266 (210,834) (88,192) - (436,938) (108,449) (30,368) - (166,715) 43,415 8,088 - 67,568 43,724 11,172 - 70,792 446,840 492,971 242,785 3,270,722 $ (2,466,653) $ 3,237,327 $ 88,920 $ 1,034,119 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 POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30,2024 Fleet Duplicating Employee Information Maintenance Services Benefit Technology Fund Fund Trust Fund Fund Totals Assets Current assets: Cash and cash equivalents $ 5,473,242 $ 144,286 $ 3,226,348 $ 2,243,917 $ 11,087,793 Restricted cash and cash equivalents - - 13,557,675 - 13,557,675 Receivables: Other 592 - 9,596 - 10,188 Inventory 663,731 - - - 663,731 Prepaid items 478,250 327 - - 478,577 Total current assets 6,615,815 144,613 16,793,619 2,243,917 25,797,964 Capital assets,net of accumulated depreciation 34,615,882 - - 7,477,281 42,093,163 Total assets 41,231,697 144,613 16,793,619 9,721,198 67,891,127 Deferred outflows of resources Pension-related 489,274 3,005 15,790 292,223 800,292 OPEB-related 48,237 392 - 21,569 70,198 Total deferred outflows of resources 537,511 3,397 15,790 313,792 870,490 Liabilities Current liabilities: Accounts payable-trade 249,838 4,500 110,730 79,141 444,209 Accrued payroll 49,961 340 1,617 30,460 82,378 Accrued vacation and sick leave 138,433 - - 73,157 211,590 Payable to other City funds - - 462,283 - 462,283 Estimated health claims payable - - 1,188,114 - 1,188,114 Other liabilities - - 19,972 - 19,972 Notes payable-current maturities 850,611 - - - 850,611 Subscription liabilities-current maturities - - - 111,621 111,621 Total current liabilities 1,288,843 4,840 1,782,716 294,379 3,370,778 Long-term liabilities: Notes payable,less current maturities 8,371,470 - - - 8,371,470 Subscription liabilities,less current maturities - - - 234,656 234,656 Net pension liability 1,474,599 9,057 47,588 880,716 2,411,960 Net OPEB liability 242,979 1,975 - 108,649 353,603 Total long-term liabilities 10,089,048 11,032 47,588 1,224,021 11,371,689 Total liabilities 11,377,891 15,872 1,830,304 1,518,400 14,742,467 Deferred inflows of resources Pension-related 59,194 364 1,910 35,354 96,822 OPEB-related 81,896 666 - 36,620 119,182 Total deferred inflows of resources 141,090 1,030 1,910 71,974 216,004 Net position Net investment in capital assets 25,393,801 - - 7,131,004 32,524,805 Unrestricted 4,856,426 131,108 14,977,195 1,313,612 21,278,341 Total net position $ 30,250,227 $ 131,108 $ 14,977,195 $ 8,444,616 $ 53,803,146 92 EXHIBIT E-2 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2024 Fleet Duplicating Employee Information Maintenance Services Benefit Technology Fund Fund Trust Fund Fund Totals Operating revenues: Charges for services $ 14,364,957 $ 127,655 $ - $ 4,114,825 $ 18,607,437 Rents,concessions and other 18,039 - 1,377,190 - 1,395,229 Contributions - - 14,900,446 - 14,900,446 Total operating revenues 14,382,996 127,655 16,277,636 4,114,825 34,903,112 Operating expenses: Personnel services 2,220,270 7,333 64,081 1,250,009 3,541,693 Supplies and materials 3,561,033 876 - 181,901 3,743,810 Maintenance and repairs 3,206,382 350 - 1,604,184 4,810,916 Utilities and other services 205,554 988 113,001 317,364 636,907 Insurance and contract support 13,495 - 15,445,258 497 15,459,250 Other expenses 435,607 92,329 1,726,062 10,966 2,264,964 Depreciation and amortization 5,769,459 - - 1,573,831 7,343,290 Total operating expenses 15,411,800 101,876 17,348,402 4,938,752 37,800,830 Operating income(loss) (1,028,804) 25,779 (1,070,766) (823,927) (2,897,718) Nonoperating revenues(expenses): Investment earnings - - 3,017,582 - 3,017,582 Gain(loss)on sale of capital assets 981 - - - 981 Interest expense (316,429) - - (10,534) (326,963) Total nonoperating revenues (expenses) (315,448) - 3,017,582 (10,534) 2,691,600 Income(loss)before transfers (1,344,252) 25,779 1,946,816 (834,461) (206,118) Transfers in 2,804,141 - - 1,816,929 4,621,070 Transfers out (332,879) - - - (332,879) Change in net position 1,127,010 25,779 1,946,816 982,468 4,082,073 Net position-beginning 29,123,217 105,329 13,030,379 7,462,148 49,721,073 Net position-ending $ 30,250,227 $ 131,108 $ 14,977,195 $ 8,444,616 $ 53,803,146 93 EXHIBIT E-3 CITY OF WICHITA FALLS,TEXAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2024 Fleet Duplicating Employee Information Maintenance Services Benefit Technology Fund Fund Trust Fund Fund Totals Cash flows from operating activities: Received from customers and users $ 357,766 $ - $ 3,412,713 $ - $ 3,770,479 Received from interfund charges 14,058,052 127,655 11,792,620 4,114,825 30,093,152 Other operating receipts - - 1,078,837 - 1,078,837 Payments to suppliers (7,342,933) (90,622) (17,041,892) (3,078,621) (27,554,068) Payments for interfund services (560,138) (7,910) - (127,477) (695,525) Payments to employees (1,680,632) (10,198) (53,682) (1,001,270) (2,745,782) Net cash provided by operating activities 4,832,115 18,925 (811,404) (92,543) 3,947,093 Cash flows from noncapital financing activities: Transfers in from other funds 2,804,141 - - 1,816,929 4,621,070 Transfers out to other funds (332,879) - - - (332,879) Net cash provided(used)by noncapital financing activities 2,471,262 - - 1,816,929 4,288,191 Cash flows from capital and related financing activities: Acquisition of capital assets (6,270,019) - - (3,376,959) (9,646,978) Principal paid on long-term debt (698,611) - - (72,188) (770,799) Interest and fees paid on long-term debt (316,429) - - (10,534) (326,963) Net cash used for capital and related financing activities (7,285,059) - - (3,459,681) (10,744,740) Cash flows from investing activities: Income(loss)on investments - - 3,017,582 - 3,017,582 Net cash provided by investing activities - - 3,017,582 - 3,017,582 Net Increase(Decrease)in Cash and Cash Equivalents 18,318 18,925 2,206,178 (1,735,295) 508,126 Cash and Cash Equivalents-Beginning 5,454,924 125,361 14,577,845 3,979,212 24,137,342 Cash and Cash Equivalents-Ending $ 5,473,242 $ 144,286 $ 16,784,023 $ 2,243,917 $ 24,645,468 Cash flows from operating activities: Operating income(loss) $ (1,028,804) $ 25,779 $ (1,070,766) $ (823,927) $ (2,897,718) Adjustments to reconcile operating income(loss)to net cash provided(used)by operating activities: Depreciation and amortization 5,769,459 - - 1,573,831 7,343,290 (Increase)decrease in assets and deferred outflows: Receivables: Other 37,016 - (414) - 36,602 Inventory 42,688 - - - 42,688 Deferred outflows-pension-related 335,438 6,547 10,251 249,786 602,022 Deferred outflows-OPEB-related 43,956 644 - 17,448 62,048 Increase(decrease)in liabilities and deferred inflows: Accounts payable-trade 165,878 1,500 114,880 (717,195) (434,937) Accrued payroll 10,589 98 397 5,950 17,034 Accrued vacation and sick leave 5,922 - - 21,975 27,897 Estimated health claims payable - - 140,432 - 140,432 Other liabilities (4,194) - 6,948 - 2,754 Net pension liability (503,499) (13,855) (14,872) (419,311) (951,537) Net OPEB liability (169,060) (2,655) - (65,734) (237,449) Deferred inflows-pension-related 53,806 302 1,740 31,813 87,661 Deferred inflows-OPEB-related 72,920 565 - 32,821 106,306 Total adjustments 5,860,919 (6,854) 259,362 731,384 6,844,811 Net cash provided(used)by operating activities $ 4,832,115 $ 18,925 $ (811,404) $ (92,543) $ 3,947,093 Noncash capital and financing activities: Capital assets acquired through issuance of notes payable $ 9,442,442 $ - $ - $ - $ 9,442,442 94 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 five 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. Wichita Falls Reinvestment Zone#4 The Wichita Falls Reinvestment Zone#4 was created in March 2015 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#4 is to capture increments of growth in real property values in the designated zone area from base values established in January 2015 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 F-1 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF NET POSITION COMPONENT UNITS SEPTEMBER 30, 2024 Wichita Falls Economic Wichita Falls Wichita Falls Wichita Falls Wichita Falls Development 4B Sales Tax Reinvestment Reinvestment Reinvestment Corporation Corporation Zone#2 Zone#3 Zone#4 Totals Assets Cash and cash equivalents $ 24,452,275 $ 14,440,650 $ 4,013,773 $ 1,348,679 $ 1,489,295 $ 45,744,672 Receivables: Government agencies 864,874 843,344 - (1,894) - 1,706,324 Capital assets,net of accumulated depreciation 9,862,319 16,943,889 - - - 26,806,208 Total assets 35,179,468 32,227,883 4,013,773 1,346,785 1,489,295 74,257,204 Liabilities Accounts payable-trade 67 356 - - - 423 Other liabilities 123,245 (29,208) - - - 94,037 Long-term liabilities: Portion due or payable within one year 185,000 480,000 - - - 665,000 Portion due or payable after one year 9,253,679 17,065,000 - - - 26,318,679 Total liabilities 9,561,991 17,516,148 - - - 27,078,139 Net position Net investment in capital assets 3,813,623 - - - - 3,813,623 Unrestricted 21,803,854 14,711,735 4,013,773 1,346,785 1,489,295 43,365,442 Total net position $ 25,617,477 $ 14,711,735 $ 4,013,773 $ 1,346,785 $ 1,489,295 $ 47,179,065 95 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS FOR THE YEAR ENDED SEPTEMBER 30, 2024 Program Revenues Operating Grants and Expenses Contributions Community development Wichita Falls Economic Development Corporation $ 3,807,447 $ - Wichita Falls 4B Sales Tax Corporation 6,396,259 - Wichita Falls Reinvestment Zone#2 371,117 - Wichita Falls Reinvestment Zone#3 - Wichita Falls Reinvestment Zone#4 - Total component units $ 10,574,823 $ - General revenues: Taxes: Property tax Sales tax Investment earnings Miscellaneous Total general revenues Change in net position Net position-beginning Net position-ending 96 EXHIBIT F-2 Net(Expense) Revenue and Changes in Net Position Wichita Falls Economic Wichita Falls Wichita Falls Wichita Falls Wichita Falls Development 4B Sales Tax Reinvestment Reinvestment Reinvestment Corporation Corporation Zone#2 Zone#3 Zone#4 Totals $ (3,807,447) $ - $ - $ - $ - $ (3,807,447) - (6,396,259) - - - (6,396,259) - - (371,117) - - (371,117) (3,807,447) (6,396,259) (371,117) - - (10,574,823) - - 794,363 160,228 368,058 1,322,649 5,109,774 5,109,774 - - - 10,219,548 1,376,925 1,187,272 91,693 83,087 20,184 2,759,161 20,377 1,500 - - - 21,877 6,507,076 6,298,546 886,056 243,315 388,242 14,323,235 2,699,629 (97,713) 514,939 243,315 388,242 3,748,412 22,917,848 14,809,448 3,498,834 1,103,470 1,101,053 43,430,653 $ 25,617,477 $ 14,711,735 $ 4,013,773 $ 1,346,785 $ 1,489,295 $ 47,179,065 SUPPORTING SCHEDULES CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES SEPTEMBER 30,2024 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 on Bonds and Interest 2025 $ 3,265,000 $ 923,971 $ 4,188,971 $ 2,685,000 $ 835,108 $ 3,520,108 2026 3,020,000 797,928 3,817,928 2,750,000 767,058 3,517,058 2027 2,380,000 669,347 3,049,347 2,120,000 695,270 2,815,270 2028 2,450,000 594,991 3,044,991 2,165,000 647,043 2,812,043 2029 2,525,000 516,915 3,041,915 2,220,000 596,910 2,816,910 2030 1,855,000 449,952 2,304,952 2,275,000 541,927 2,816,927 2031 1,910,000 393,522 2,303,522 2,325,000 485,023 2,810,023 2032 1,765,000 335,216 2,100,216 2,385,000 426,018 2,811,018 2033 1,815,000 281,336 2,096,336 2,445,000 364,810 2,809,810 2034 990,000 225,750 1,215,750 1,145,000 299,781 1,444,781 2035 1,030,000 186,150 1,216,150 1,170,000 278,191 1,448,191 2036 1,070,000 144,950 1,214,950 1,185,000 255,699 1,440,699 2037 1,110,000 102,150 1,212,150 1,215,000 232,357 1,447,357 2038 1,155,000 57,750 1,212,750 1,235,000 208,162 1,443,162 2039 - - - 1,260,000 183,148 1,443,148 2040 - - - 1,285,000 157,250 1,442,250 2041 - - - 1,310,000 130,455 1,440,455 2042 - - - 1,340,000 102,761 1,442,761 2043 - - - 1,370,000 74,237 1,444,237 2044 - - - 1,395,000 44,997 1,439,997 2045 - - - 1,425,000 15,105 1,440,105 2046 - - - - - - 2047 - - - - - - 2048 - - - - - - 2049 - - - - - - 2050 - - - - - - $ 26,340,000 $ 5,679,928 $ 32,019,928 $ 36,705,000 $ 7,341,310 $ 44,046,310 97 EXHIBIT G-1 Revenue Bonds Totals-All Bonded Debt Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds Maturities on Bonds and Interest Maturities on Bonds and Interest $ 9,330,000 $ 1,136,700 $ 10,466,700 $ 15,280,000 $ 2,895,779 $ 18,175,779 9,765,000 704,000 10,469,000 15,535,000 2,268,986 17,803,986 2,495,000 216,350 2,711,350 6,995,000 1,580,967 8,575,967 65,000 92,200 157,200 4,680,000 1,334,234 6,014,234 65,000 89,600 154,600 4,810,000 1,203,425 6,013,425 70,000 87,000 157,000 4,200,000 1,078,879 5,278,879 70,000 84,200 154,200 4,305,000 962,745 5,267,745 75,000 81,400 156,400 4,225,000 842,634 5,067,634 75,000 78,400 153,400 4,335,000 724,546 5,059,546 80,000 75,400 155,400 2,215,000 600,931 2,815,931 85,000 72,200 157,200 2,285,000 536,541 2,821,541 85,000 68,800 153,800 2,340,000 469,449 2,809,449 90,000 65,400 155,400 2,415,000 399,907 2,814,907 95,000 61,800 156,800 2,485,000 327,712 2,812,712 95,000 58,000 153,000 1,355,000 241,148 1,596,148 100,000 54,200 154,200 1,385,000 211,450 1,596,450 105,000 50,200 155,200 1,415,000 180,655 1,595,655 110,000 46,000 156,000 1,450,000 148,761 1,598,761 115,000 41,600 156,600 1,485,000 115,837 1,600,837 120,000 37,000 157,000 1,515,000 81,997 1,596,997 120,000 32,200 152,200 1,545,000 47,305 1,592,305 125,000 27,400 152,400 125,000 27,400 152,400 130,000 22,400 152,400 130,000 22,400 152,400 135,000 17,200 15 2,200 135,000 17,200 15 2,200 145,000 11,800 156,800 145,000 11,800 156,800 150,000 6,000 156,000 150,000 6,000 156,000 $ 23,895,000 $ 3,317,450 $ 27,212,450 $ 86,940,000 $ 16,338,688 $ 103,278,688 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE SEPTEMBER 30, 2024 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments General Obligation Bonds: General Obligation Refunding Bonds, 2.00,2.25,2.625,2.75, 11/15/15 09/01/26 $ 200,000 (2016) Series 2015A 3.00,4.00,5.00 810,000 (2017) (3/1,9/1) 830,000 (2018) 870,000 (2019) 890,000 (2020) 915,000 (2021) 955,000 (2022) 990,000 (2023) 1,030,000 (2024) 1,055,000 (2025) 1,105,000 (2026) General Obligation Refunding Bonds, 0.73,1.19,1.62,1.99, 11/15/15 09/01/26 110,000 (2016) Series 2015B 2.29,2.62,2.83,2.91, 255,000 (2017) 3.11,3.27,3.48 255,000 (2018) (3/1,9/1) 260,000 (2019) 265,000 (2020) 270,000 (2021) 275,000 (2022) 285,000 (2023) 295,000 (2024) 305,000 (2025) 310,000 (2026) General Obligation Bonds, 2.00,3.00,4.00,5.00 08/01/18 09/01/38 550,000(2019) Series 2018A (3/1,9/1) 575,000(2020) 595,000(2021) 615,000(2022) 640,000(2023) 670,000(2024) 695,000(2025) 720,000(2026) 750,000(2027) 780,000(2028) 810,000(2029) 845,000(2030) 880,000(2031) 915,000(2032) 950,000(2033) 990,000(2034) 1,030,000(2035) 1,070,000(2036) 1,110,000(2037) 1,155,000(2038) 98 EXHIBIT G-2 (Page 1 of 5) Bonds Retired or Authorized Issued Refunded Outstanding $ 9,650,000 $ 9,650,000 $ 7,490,000 $ 2,160,000 2,885,000 2,885,000 2,270,000 615,000 16,345,000 16,345,000 3,645,000 12,700,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30, 2024 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments General Obligation Refunding Bonds, 2.00,3.00,4.00 08/01/18 10/01/28 80,000(2019) Series 2018B (4/1,10/1) 515,000(2020) 530,000(2021) 545,000(2022) 565,000(2023) 590,000(2024) 610,000(2025) 635,000(2026) 675,000(2027) 700,000(2028) 725,000(2029) General Obligation Refunding Bonds, 0.398,0.686,0.959, 10/01/21 09/01/33 445,000(2022) Taxable Series 2021 1.109,1.281,1.431, 435,000(2023) 1.573,1.833,2.033 435,000(2024) (3/1,9/1) 440,000(2025) 85,000(2026) 785,000(2027) 795,000(2028) 805,000(2029) 820,000(2030) 835,000(2031) 850,000(2032) 865,000(2033) General Obligation Refunding Bonds, 4.00 10/01/21 09/01/31 150,000(2022) Series 2021 (3/1,9/1) 140,000(2023) 145,000(2024) 160,000(2025) 165,000(2026) 170,000(2027) 175,000(2028) 185,000(2029) 190,000(2030) 195,000(2031) Total General Obligation Bonds 99 EXHIBIT G-2 (Page 2 of 5) Bonds Retired or Authorized Issued Refunded Outstanding 6,170,000 6,170,000 2,825,000 3,345,000 7,595,000 7,595,000 1,315,000 6,280,000 1,675,000 1,675,000 435,000 1,240,000 44,320,000 44,320,000 17,980,000 26,340,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30, 2024 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments Combination Tax and Revenue Bonds: Combination Tax and Revenue 2.00,3.00,3.25,3.375 03/01/13 09/01/33 530,000 (2014) Certificates of Obligation, (3/1,9/1) 795,000 (2015) Series 2013 815,000 (2016) 830,000 (2017) 845,000 (2018) 860,000 (2019) 890,000 (2020) 915,000 (2021) 940,000 (2022) 970,000 (2023) 1,000,000 (2024) 1,030,000 (2025) 1,060,000 (2026) 1,090,000 (2027) 1,125,000 (2028) 1,160,000 (2029) 1,195,000 (2030) 1,235,000 (2031) 1,275,000 (2032) 1,315,000 (2033) Combination Tax and Revenue 2.00,3.00,3.125,3.25, 08/15/13 09/01/33 505,000 (2014) Certificates of Obligation, 3.625,3.75,4.00,4.25, 500,000 (2015) Series 2013A 4.375,4.50,4.625 510,000 (2016) (3/1,9/1) 520,000 (2017) 530,000 (2018) 545,000 (2019) 560,000 (2020) 580,000 (2021) 595,000 (2022) 615,000 (2023) 630,000 (2024) 650,000 (2025) 675,000 (2026) 700,000 (2027)* 730,000 (2028)* 760,000 (2029)* 795,000 (2030)* 830,000 (2031)* 865,000 (2032)* 905,000 (2033)* *Refunded 100 EXHIBIT G-2 (Page 3 of 5) Bonds Retired or Authorized Issued Refunded Outstanding 19,875,000 19,875,000 9,390,000 10,485,000 13,000,000 13,000,000 11,675,000 1,325,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30, 2024 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments Combination Tax and Revenue 0.00,0.09,0.40,0.68, 01/02/15 03/01/45 890,000 (2016) Certificates of Obligation, 0.89,1.05,1.16,1.29, 960,000 (2017) Series 2015 1.40,1.47,1.53,1.59 960,000 (2018) 1.64,1.69,1.74,1.79 960,000 (2019) 1.84,1.89,1.93,1.96 965,000 (2020) 1.99,2.02,2.05,2.08 970,000 (2021) 2.10,2.11,2.12 975,000 (2022) (3/1,9/1) 980,000 (2023) 990,000 (2024) 1,005,000 (2025) 1,015,000 (2026) 1,030,000 (2027) 1,040,000 (2028) 1,060,000 (2029) 1,080,000 (2030) 1,090,000 (2031) 1,110,000 (2032) 1,130,000 (2033) 1,145,000 (2034) 1,170,000 (2035) 1,185,000 (2036) 1,215,000 (2037) 1,235,000 (2038) 1,260,000 (2039) 1,285,000 (2040) 1,310,000 (2041) 1,340,000 (2042) 1,370,000 (2043) 1,395,000 (2044) 1,425,000 (2045) Total Combination Tax and Revenue Bonds Revenue Bonds: Water and Sewer System 2.00,4.00,5.00 06/01/16 08/01/27 2,635,000 (2017) Revenue Refunding Bonds, (2/1,8/1) 2,885,000 (2018) Series 2016 6,915,000 (2019) 7,265,000 (2020) 7,635,000 (2021) 8,010,000 (2022) 8,410,000 (2023) 8,835,000 (2024) 9,275,000 (2025) 9,705,000 (2026) 2,435,000 (2027) 101 EXHIBIT G-2 (Page 4 of 5) Bonds Retired or Authorized Issued Refunded Outstanding 33,545,000 33,545,000 8,650,000 24,895,000 66,420,000 66,420,000 29,715,000 36,705,000 74,005,000 74,005,000 52,590,000 21,415,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30, 2024 Final Interest Rates Issue Maturity Annual and(Dates) Date Date Serial Payments Venue Tax Revenue Bonds, 4.00 12/01/20 09/01/50 45,000(2021) Series 2020 (3/1,9/1) 50,000(2022) 50,000(2023) 55,000(2024) 55,000(2025) 60,000(2026) 60,000(2027) 65,000(2028) 65,000(2029) 70,000(2030) 70,000(2031) 75,000(2032) 75,000(2033) 80,000(2034) 85,000(2035) 85,000(2036) 90,000(2037) 95,000(2038) 95,000(2039) 100,000(2040) 105,000(2041) 110,000(2042) 115,000(2043) 120,000(2044) 120,000(2045) 125,000(2046) 130,000(2047) 135,000(2048) 145,000(2049) 150,000(2050) Total Revenue Bonds Total All Bonds 102 EXHIBIT G-2 (Page 5 of 5) Bonds Retired or Authorized Issued Refunded Outstanding 2,680,000 2,680,000 200,000 2,480,000 76,685,000 76,685,000 52,790,000 23,895,000 $ 187,425,000 $ 187,425,000 $ 100,485,000 $ 86,940,000 EXHIBIT G-3 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE COVERAGE- REVENUE BONDS SEPTEMBER 30, 2024 Water and Sewer Revenue Bonds: Change in net position (Exhibit A-8) $ 12,017,487 Add: Depreciation and amortization $ 9,108,951 Interest expense and paying agent fees 1,959,955 Transfers out 2,143,194 13,212,100 Subtract: West Texas Utilities water revenues 500,000 Gain (loss)on sale/abandonment of capital assets 1,310 Capital contributions from developers 1,107,267 Transfers in - (1,608,577) Net earnings for determining debt service coverage $ 23,621,010 Priority Subordinate Lien Bonds Lien Bonds Net earnings for determining debt service coverage $ 23,621,010 Principal and interest requirements to maturity $ 23,181,250 $ - Number of years remaining to pay bonds 3 N/A Average annual principal and interest requirement 7,727,083 N/A Minimum bond covenant debt service coverage 1.25 1.10 Minimum debt service coverage requirement $ 9,658,854 $ - 9,658,854 Excess over debt service coverage requirements $ 13,962,156 103 CITY OF WICHITA FALLS, TEXAS CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY SEPTEMBER 30,2024 Buildings Machinery Land and and and Betterments Improvements Equipment Administrative services: Mayor and City Council - City Manager - 265,898 2,020 Personnel/Risk Management - - 2,963 Martin Luther King Center - 749,447 - Library 477,942 4,787,602 572,629 General Public Information - 693,348 229,892 Building Maintenance - 2,770,246 136,877 Nondepartmental 46,347 380,754 85,497 Municipal Court 230,000 310,819 75,951 Legal - - 1,518 Homeland security - - 584,968 Training Center - - 2,271 Golf course 3,808,375 1,205,573 93,430 Memorial Auditorium renovation - - - Total administrative services 4,562,664 11,163,687 1,788,016 Police 1,131,749 10,231,507 15,655,689 Fire 190,565 7,051,522 1,380,891 Parks and recreation: Recreation 4,080,206 1,702,037 210,663 Park maintenance 4,719,322 554,597 110,051 Cemetery 141,685 - 6,448 Lake Wichita Revitalization-Boardwalk 3,504,892 - - Lynwood Community Center - 214,895 - Total parks and recreation 12,446,105 2,471,529 327,162 Accounting/finance: Information Systems - - 15,379,061 Total accounting/finance - - 15,379,061 Community development: Planning - - 20,438 Inspection - - 1,360 Property management 10,727,324 420,891 9,275 Section 8 housing - - 47,274 Hazard Mitigation grant 170,800 - - Total community development 10,898,124 420,891 78,347 Public works: Engineering - 61,948 183,229 Street maintenance 415,650 100,108 30,606 Infrastructure 1,365,632 - - Total public works 1,781,282 162,056 213,835 Health: Administration 34,820 3,066,351 342,842 General City nursing 76,411 1,123 10,108 Environmental health - - 69,596 Lab water pollution - - 45,235 Animal reclaim center 150,737 4,114,850 26,772 Total health 261,968 7,182,324 494,553 Traffic and transportation - 31,045 109,683 Multi-Purpose Events Center 9,560,210 45,157,533 675,809 Wichita Falls Business Park 1,099,507 - - Total capital assets used in the operation of governmental funds $ 41,932,174 $ 83,872,094 $ 36,103,046 104 EXHIBIT G-4 Furniture and Subscription Construction Fixtures Assets Infrastructure in Progress Totals $ 5,218 $ - $ - $ - $ 5,218 13,644 - - - 281,562 4,660 - - - 7,623 749,447 73,266 - - - 5,911,439 3,184 - - - 926,424 2,907,123 512,598 616,770 1,518 584,968 2,271 5,107,378 4,669,206 4,669,206 99,972 - - 4,669,206 22,283,545 8,759 67,040 - 205,700 27,300,444 2,111 8,625,089 5,992,906 5,383,970 148,133 3,504,892 214,895 15,244,796 827,994 - - 16,207,055 827,994 - - 16,207,055 20,438 1,360 11,157,490 47,274 170,800 11,397,362 245,177 546,364 211,914,550 1,194,377 214,474,559 211,914,550 1,194,377 215,266,100 237,789 - 103,129 3,784,931 87,642 69,596 45,235 4,292,359 237,789 - 103,129 8,279,763 16,750,886 - 16,891,614 22,117 73,405 - - 55,489,074 1,099,507 $ 130,848 $ 1,206,228 $ 228,665,436 $ 6,174,523 $ 398,084,349 EXHIBIT G-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 30,2024 Beginning Ending Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Administrative services: Mayor and City Council $ 5,218 $ - $ - $ 5,218 City Manager 281,562 - - 281,562 Personnel/Risk Management 7,623 - - 7,623 Martin Luther King Center 749,447 - - 749,447 Library 5,619,263 292,176 - 5,911,439 General Public Information 926,424 - - 926,424 Building Maintenance 2,907,123 - - 2,907,123 Nondepartmental 512,598 - - 512,598 Municipal Court 616,770 - - 616,770 Legal 1,518 - - 1,518 Homeland security 584,968 - - 584,968 Training center 2,271 - - 2,271 Golf course 5,107,378 - - 5,107,378 Memorial Auditorium renovation - 4,669,206 - 4,669,206 Total administrative services 17,322,163 4,961,382 - 22,283,545 Police 27,076,912 223,532 - 27,300,444 Fire 8,625,089 - - 8,625,089 Parks and recreation: Recreation 5,992,906 - - 5,992,906 Park maintenance 5,383,970 - - 5,383,970 Cemetery 148,133 - - 148,133 Lake Wichita Revitalization 2,653,267 851,625 - 3,504,892 Lynwood Community Center 214,895 - - 214,895 Total parks and recreation 14,393,171 851,625 - 15,244,796 Accounting/finance: Information Systems 12,645,716 3,561,339 - 16,207,055 Total accounting/finance 12,645,716 3,561,339 - 16,207,055 Community development: Planning 20,438 - - 20,438 Inspection 1,360 - - 1,360 Property management 10,794,990 362,500 - 11,157,490 Section 8 Housing 47,274 - - 47,274 Hazard Mitigation Grant 170,800 - - 170,800 Total community development 11,034,862 362,500 - 11,397,362 Public works: Engineering 245,177 - - 245,177 Street maintenance 546,364 - - 546,364 Infrastructure 210,786,216 3,688,343 - 214,474,559 Total public works 211,577,757 3,688,343 - 215,266,100 Health: Administration 3,768,810 16,121 - 3,784,931 General city nursing 87,642 - - 87,642 Environmental health 69,596 - - 69,596 Lab water pollution 45,235 - - 45,235 Animal reclaim center 4,292,359 - - 4,292,359 Total health 8,263,642 16,121 - 8,279,763 Traffic and transportation 16,093,167 798,447 - 16,891,614 Multi-Purpose Events Center 55,330,415 158,659 - 55,489,074 Wichita Falls Business Park 1,099,507 - - 1,099,507 Total capital assets $ 383,462,401 $ 14,621,948 $ - $ 398,084,349 105 EXHIBIT G-6 CITY OF WICHITA FALLS, TEXAS REGIONAL AIRPORT FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Land and betterments $ 20,491,656 $ - $ - $ 20,491,656 Buildings and improvements 34,322,705 - - 34,322,705 Machinery and equipment 247,609 - - 247,609 Furniture and fixtures 12,829 - - 12,829 Infrastructure 1,308,101 - - 1,308,101 Right-to-use leased assets 3,066,768 - - 3,066,768 Total capital assets 59,449,668 - - 59,449,668 Accumulated Depreciation: Land and betterments 7,685,905 824,666 - 8,510,571 Buildings and improvements 6,111,987 683,922 - 6,795,909 Machinery and equipment 144,955 20,791 - 165,746 Furniture and fixtures 12,830 - - 12,830 Right-to-use leased assets 891,866 62,587 - 954,453 Infrastructure 61,044 17,442 - 78,486 Total accumulated depreciation 14,908,587 1,609,408 - 16,517,995 Net capital assets $ 44,541,081 $ (1,609,408) $ - $ 42,931,673 106 EXHIBIT G-7 CITY OF WICHITA FALLS, TEXAS KICKAPOO AIRPORT FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Land and betterments $ 13,643,355 $ - $ - $ 13,643,355 Buildings and improvements 4,052,631 - - 4,052,631 Machinery and equipment 583,215 - - 583,215 Construction in progress 35,247 - - 35,247 Total capital assets 18,314,448 - - 18,314,448 Accumulated Depreciation: Land and betterments 4,711,006 382,914 - 5,093,920 Buildings and improvements 1,747,558 120,564 - 1,868,122 Machinery and equipment 547,600 23,664 - 571,264 Total accumulated depreciation 7,006,164 527,142 - 7,533,306 Net capital assets $ 11,308,284 $ (527,142) $ - $ 10,781,142 107 EXHIBIT G-8 CITY OF WICHITA FALLS, TEXAS TRANSIT FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Land and betterments $ 2,001,247 $ - $ - $ 2,001,247 Buildings and improvements 17,604,543 - - 17,604,543 Machinery and equipment 546,740 17,465 - 564,205 Total capital assets 20,152,530 17,465 - 20,169,995 Accumulated Depreciation: Land and betterments 110,766 10,550 - 121,316 Buildings and improvements 1,788,970 379,251 - 2,168,221 Machinery and equipment 502,926 10,593 - 513,519 Total accumulated depreciation 2,402,662 400,394 - 2,803,056 Net capital assets $ 17,749,868 $ (382,929) $ - $ 17,366,939 108 EXHIBIT G-9 CITY OF WICHITA FALLS, TEXAS STORMWATER DRAINAGE FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Drainage $ 33,022,416 $ - $ - $ 33,022,416 Land and betterments 686,528 - - 686,528 Machinery and equipment 60,395 - - 60,395 Construction in progress 933,578 2,323,541 - 3,257,119 Total capital assets 34,702,917 2,323,541 - 37,026,458 Accumulated Depreciation: Drainage 4,095,531 422,487 - 4,518,018 Land betterments 58,955 6,354 - 65,309 Machinery and equipment 49,196 1,600 - 50,796 Total accumulated depreciation 4,203,682 430,441 - 4,634,123 Net capital assets $ 30,499,235 $ 1,893,100 $ - $ 32,392,335 109 EXHIBIT G-10 CITY OF WICHITA FALLS, TEXAS SANITATION FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Land and betterments $ 9,744,373 $ 365,575 $ - $ 10,109,948 Buildings and improvements 3,571,328 1,118,432 - 4,689,760 Machinery and equipment 685,008 361,759 - 1,046,767 Construction in progress 906,397 890,058 1,484,007 312,448 Total capital assets 14,907,106 2,735,824 1,484,007 16,158,923 Accumulated Depreciation: Land and betterments 2,254,762 185,347 - 2,440,109 Buildings and improvements 2,114,146 206,528 - 2,320,674 Machinery and equipment 570,435 76,932 - 647,367 Total accumulated depreciation 4,939,343 468,807 - 5,408,150 Net capital assets $ 9,967,763 $ 2,267,017 $1,484,007 $ 10,750,773 110 EXHIBIT G-11 CITY OF WICHITA FALLS, TEXAS WATER AND SEWER FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30,2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Land and betterments $ 24,349,958 $ - $ - $ 24,349,958 Buildings,systems and improvements 413,362,023 6,001,803 - 419,363,826 Machinery and equipment 7,071,139 489,692 - 7,560,831 Furniture and fixtures 1,164 - - 1,164 Construction in progress 4,725,909 5,840,527 3,327,459 7,238,977 Total capital assets 449,510,193 12,332,022 3,327,459 458,514,756 Accumulated Depreciation: Land and betterments 12,724,275 229,613 - 12,953,888 Buildings,systems and improvements 170,151,617 8,435,028 - 178,586,645 Machinery and equipment 5,675,002 444,309 - 6,119,311 Furniture and fixtures 1,164 - - 1,164 Total accumulated depreciation 188,552,058 9,108,950 - 197,661,008 Net capital assets $ 260,958,135 $ 3,223,072 $ 3,327,459 $ 260,853,748 111 EXHIBIT G-12 CITY OF WICHITA FALLS, TEXAS WATERPARK FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30,2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Land and betterments $ 389,894 $ - $ - $ 389,894 Buildings and improvements 4,641,246 - - 4,641,246 Machinery and equipment 481,601 511,896 - 993,497 Total capital assets 5,512,741 511,896 - 6,024,637 Accumulated Depreciation: Buildings and improvements 2,882,152 233,212 - 3,115,364 Machinery and equipment 259,479 57,219 - 316,698 Total accumulated depreciation 3,141,631 290,431 - 3,432,062 Net capital assets $ 2,371,110 $ 221,465 $ - $ 2,592,575 112 EXHIBIT G-13 CITY OF WICHITA FALLS, TEXAS FLEET MAINTENANCE FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Land and betterments $ 436,269 $ - $ - $ 436,269 Buildings and improvements 4,855,820 - - 4,855,820 Machinery and equipment 1,670,786 - - 1,670,786 Furniture and fixtures 2,950 - - 2,950 Motor vehicles 75,586,580 15,781,789 19,403 91,348,966 Construction in progress 130,954 127,016 195,361 62,609 Total capital assets 82,683,359 15,908,805 214,764 98,377,400 Accumulated Depreciation: Land and betterments 2,611 - - 2,611 Buildings and improvements 3,368,239 124,312 - 3,492,551 Machinery and equipment 1,617,490 13,080 - 1,630,570 Furniture and fixtures 2,950 - - 2,950 Motor vehicles 53,020,171 5,632,068 19,403 58,632,836 Total accumulated depreciation 58,011,461 5,769,460 19,403 63,761,518 Net capital assets $ 24,671,898 $ 10,139,345 $ 195,361 $ 34,615,882 113 EXHIBIT G-14 CITY OF WICHITA FALLS, TEXAS DUPLICATING SERVICES FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Machinery and equipment $ 9,117 $ - $ - $ 9,117 Accumulated Depreciation: Machinery and equipment 9,117 - - 9,117 Net capital assets $ - $ - $ - $ - 114 EXHIBIT G-15 CITY OF WICHITA FALLS, TEXAS INFORMATION TECHNOLOGY FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Machinery and equipment $ 11,352,008 $ 3,336,959 $ - $ 14,688,967 Subscription assets 603,614 224,380 - 827,994 Total capital assets 11,955,622 3,561,339 - 15,516,961 Accumulated Depreciation: Machinery and equipment 6,043,319 1,468,594 - 7,511,913 Subscription assets 422,530 105,237 - 527,767 Total accumulated depreciation 6,465,849 1,573,831 - 8,039,680 Net capital assets $ 5,489,773 $ 1,987,508 $ - $ 7,477,281 115 EXHIBIT G-16 CITY OF WICHITA FALLS, TEXAS WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Land and betterments $ 1,177,156 $ - $ - $ 1,177,156 Buildings and improvements 6,028,915 - - 6,028,915 Construction in progress 1,030,896 1,840,297 - 2,871,193 Total capital assets 8,236,967 1,840,297 - 10,077,264 Accumulated Depreciation: Buildings and improvements 123,528 91,417 - 214,945 Net capital assets $ 8,113,439 $ 1,748,880 $ - $ 9,862,319 116 EXHIBIT G-17 CITY OF WICHITA FALLS, TEXAS WICHITA FALLS 46 SALES TAX CORPORATION CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 Balance Balance 10/1/2023 Additions Deletions 9/30/2024 Capital Assets: Buildings and improvements $ - $ 17,311,310 $ - $ 17,311,310 Machinery and equipment - 216,851 - 216,851 Construction in progress 17,528,161 - 17,528,161 - Total capital assets 17,528,161 17,528,161 17,528,161 17,528,161 Accumulated Depreciation: Buildings and improvements - 577,044 - 577,044 Machinery and equipment - 7,228 - 7,228 Total accumulated depreciation - 584,272 - 584,272 Net capital assets $ 17,528,161 $ 16,943,889 $17,528,161 $ 16,943,889 117 STATISTICAL SECTION (UNAUDITED) This part of the City of Wichita Falls, Texas' Annual Comprehensive 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 118 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 123 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 128 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 133 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 135 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 POSITION BY COMPONENT LAST TEN FISCAL YEARS(UNAUDITED) 2014-2015 2015-2016 2016-2017 2017-2018 Governmental activities Net investment in capital assets $ 143,014,752 $ 148,206,829 $ 150,776,165 $ 150,833,699 Restricted 3,715,125 4,468,638 5,497,793 5,626,033 Unrestricted (59,103,807) (64,279,354) (68,466,161) (81,755,666) Total governmental activities net position $ 87,626,070 $ 88,396,113 $ 87,807,797 $ 74,704,066 Business-type activities Net investment in capital assets $ 238,249,137 $ 236,074,244 $ 250,154,417 $ 254,487,928 Restricted 11,800,667 11,082,332 11,046,973 11,571,092 Unrestricted 13,941,283 31,265,373 27,573,458 35,237,418 Total business-type activities net position $ 263,991,087 $ 278,421,949 $ 288,774,848 $ 301,296,438 Primary government Net investment in capital assets $ 381,263,889 $ 384,281,073 $ 400,930,582 $ 405,321,627 Restricted 15,515,792 15,550,970 16,544,766 17,197,125 Unrestricted (45,162,524) (33,013,981) (40,892,703) (46,518,248) Total primary government net position $ 351,617,157 $ 366,818,062 $ 376,582,645 $ 376,000,504 118 EXHIBIT H-1 Fiscal Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 $ 152,824,700 $ 155,903,407 $ 160,441,794 $ 160,339,899 $ 170,463,853 $ 178,714,840 5,974,408 6,632,804 7,260,262 9,812,139 11,201,687 14,111,253 (85,423,347) (94,509,218) (85,096,370) (70,492,162) (70,135,236) (68,343,604) $ 73,375,761 $ 68,026,993 $ 82,605,686 $ 99,659,876 $ 111,530,304 $ 124,482,489 $ 264,868,493 $ 270,540,608 $ 293,604,354 $ 309,284,549 $ 323,219,696 $ 336,375,288 11,780,255 12,008,946 11,836,811 11,840,406 12,395,127 12,817,592 37,715,916 47,578,892 45,447,623 53,612,672 57,082,234 59,570,047 $ 314,364,664 $ 330,128,446 $ 350,888,788 $ 374,737,627 $ 392,697,057 $ 408,762,927 $ 417,693,193 $ 426,444,015 $ 454,046,148 $ 469,624,448 $ 493,683,549 $ 515,090,128 17,754,663 18,641,750 19,097,073 21,652,545 23,596,814 26,928,845 (47,707,431) (46,930,326) (39,648,747) (16,879,490) (13,053,002) (8,773,557) $ 387,740,425 $ 398,155,439 $ 433,494,474 $ 474,397,503 $ 504,227,361 $ 533,245,416 CITY OF WICHITA FALLS, TEXAS CHANGES IN NET POSITION LAST TEN FISCAL YEARS(UNAUDITED) 2014-2015 2015-2016 2016-2017 2017-2018 Expenses Governmental activities: Administrative services $ 14,837,668 $ 14,235,870 $ 15,198,841 $ 16,029,050 Police 23,705,432 25,633,843 25,513,220 25,046,425 Fire 16,455,087 17,476,759 21,107,882 24,205,615 Parks and recreation 5,492,124 5,637,654 5,655,633 5,484,893 Accounting/finance 876,069 787,945 760,506 663,516 Community development 6,400,781 6,681,803 6,902,628 6,579,677 Public works 8,117,413 8,334,993 8,551,971 8,563,442 Health 5,398,191 5,707,386 5,814,947 5,798,759 Traffic and transportation 2,555,837 2,667,418 2,579,284 2,383,760 Multi-Purpose Events Center 4,553,654 4,544,817 4,021,413 3,250,928 Interest and fees on long-term debt 1,910,975 1,631,355 1,443,552 1,556,402 Total governmental activities expenses 90,303,231 93,339,843 97,549,877 99,562,467 Business-type activities: Municipal Airport 2,532,243 1,881,055 1,827,618 1,907,909 Kickapoo Airport 1,412,211 1,252,359 1,198,823 1,259,413 Transit 2,524,244 2,673,176 2,540,427 2,377,201 Sanitation 9,489,348 9,841,683 10,216,686 10,300,771 Water and Sewer 33,554,406 32,120,018 33,288,819 33,426,850 Stormwater drainage 674,839 828,537 816,334 796,597 Waterpa rk 1,557,158 1,598,720 1,538,193 1,591,560 Total business-type activities expenses 51,744,449 50,195,548 51,426,900 51,660,301 Total primary government expenses $ 142,047,680 $ 143,535,391 $ 148,976,777 $ 151,222,768 Program Revenues Governmental activities: Charges for services: Administrative services $ 4,030,674 $ 4,270,749 $ 4,735,471 $ 4,501,100 Police 396,228 335,112 420,289 338,223 Fire 6,866 1,749 36,937 39,598 Parks and recreation 447,990 429,207 441,751 393,227 Community development 1,006,966 1,101,085 1,209,021 1,233,431 Public works 9,510 11,824 14,223 10,869 Health 995,634 1,051,834 1,081,910 1,110,658 Traffic and transportation 162,184 72,965 126,334 122,384 Multi-Purpose Events Center 1,604,828 1,561,783 892,049 10,872 Operating grants and contributions 11,019,845 14,803,477 14,934,929 12,437,104 Capital grants and contributions 5,349,242 3,942,929 1,032,502 4,296,164 Total governmental activities program revenues 25,029,967 27,582,714 24,925,416 24,493,630 119 EXHIBIT H-2 (Page 1 of 2) Fiscal Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 $ 15,853,414 $ 15,623,435 $ 16,023,333 $ 16,701,365 $ 19,214,246 $ 20,263,581 27,736,316 34,225,996 26,119,364 25,454,226 30,331,586 31,202,927 21,059,239 26,796,338 26,145,244 22,599,594 25,908,574 25,483,398 5,995,353 6,057,586 5,134,632 5,810,019 6,554,341 7,415,430 785,465 1,004,472 759,671 722,292 1,061,629 1,109,393 7,253,122 7,586,750 6,955,276 7,498,256 10,261,349 8,402,052 8,533,518 8,708,349 7,894,812 8,620,682 9,329,189 10,628,459 5,964,161 6,630,232 6,229,228 7,065,470 7,585,313 7,550,956 2,951,269 3,255,742 2,412,555 3,076,440 3,265,753 4,195,482 3,126,421 2,791,731 2,848,607 5,134,193 6,049,052 5,177,255 1,780,418 1,607,429 1,695,662 1,455,563 1,306,918 1,214,911 101,038,696 114,288,060 102,218,384 104,138,100 120,867,950 122,643,844 2,014,903 2,097,484 2,753,360 2,929,361 3,041,535 3,055,752 1,451,976 1,282,322 1,185,924 1,642,866 1,549,000 1,581,879 2,622,657 2,552,634 2,254,674 3,123,714 3,377,663 3,431,762 11,407,943 11,727,774 10,138,273 10,857,203 11,688,957 13,787,413 33,564,147 34,893,459 33,126,472 33,728,464 39,661,150 39,813,704 785,974 864,517 1,137,854 1,147,940 1,118,252 1,037,049 1,599,828 1,494,829 1,605,187 1,681,431 1,880,642 1,938,552 53,447,428 54,913,019 52,201,744 55,110,979 62,317,199 64,646,111 $ 154,486,124 $ 169,201,079 $ 154,420,128 $ 159,249,079 $ 183,185,149 $ 187,289,955 $ 4,657,529 $ 4,325,538 $ 6,858,710 $ 5,556,508 $ 5,679,417 $ 5,542,717 288,280 311,390 263,904 393,772 815,908 321,523 85,627 43,306 106 60,360 63,790 90,273 355,005 293,275 263,101 334,990 417,761 471,058 1,419,097 1,426,440 1,549,609 2,231,598 2,170,065 1,825,332 7,511 17,999 5,839 39,213 4,014 13,075 1,126,273 1,107,601 1,132,205 1,131,018 1,134,133 1,122,976 121,251 113,048 153,560 109,655 174,841 186,392 - 3,482 44,326 1,705,277 2,170,634 2,101,233 12,908,026 21,239,893 17,665,897 17,045,852 22,509,058 18,749,066 60,000 - 1,996,829 1,876,048 1,451,564 3,689,321 21,028,599 28,881,972 29,934,086 30,484,291 36,591,185 34,112,966 CITY OF WICHITA FALLS, TEXAS CHANGES IN NET POSITION (CONT'D.) LAST TEN FISCAL YEARS(UNAUDITED) 2014-2015 2015-2016 2016-2017 2017-2018 Business-type activities: Charges for services: Regional Airport 864,505 1,109,959 1,120,916 1,178,304 Kickapoo Airport 1,090,276 970,129 884,354 924,673 Transit 541,389 503,708 432,083 431,419 Sanitation 12,790,072 13,223,470 13,394,186 13,701,215 Water and Sewer 38,855,845 42,999,399 43,527,980 46,225,281 Stormwater drainage 2,763,120 3,703,803 3,738,019 3,728,335 Waterpa rk 1,492,787 1,437,615 1,321,622 1,501,475 Operating grants and contributions 1,826,749 2,282,163 1,701,652 3,938,011 Capital grants and contributions 1,558,589 209,110 396,830 876,211 Total business-type activities program revenues 61,783,332 66,439,356 66,517,642 72,504,924 Total primary government program revenues $ 86,813,299 $ 94,022,070 $ 91,443,058 $ 96,998,554 Net(Expense)/Revenue Governmental activities $ (65,273,264) $ (65,757,129) $ (72,624,461) $ (75,068,837) Business-type activities 10,038,883 16,243,808 15,090,742 20,844,623 Total primary government net expense $ (55,234,381) $ (49,513,321) $ (57,533,719) $ (54,224,214) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property tax $ 31,072,640 $ 34,515,164 $ 35,120,896 $ 35,842,110 Sales tax 22,403,406 22,373,768 22,413,397 23,861,013 Franchise fees 5,414,414 5,038,247 5,193,721 5,326,403 Hotel occupancy tax 1,775,372 1,910,468 1,878,061 1,952,011 Beverage tax 291,091 286,986 281,687 308,333 Investment earnings 20,732 129,886 303,325 625,368 Miscellaneous 562,290 474,093 1,660,889 499,060 Transfers (2,072,770) 2,003,892 5,184,169 4,611,766 Total governmental activities 59,467,175 66,732,504 72,036,145 73,026,064 Business-type activities: Investment earnings 14,884 175,860 415,837 748,434 Miscellaneous 87,079 60,331 22,028 89,332 Transfers 2,072,770 (2,003,892) (5,184,169) (4,611,766) Total business-type activities 2,174,733 (1,767,701) (4,746,304) (3,774,000) Total primary government $ 61,641,908 $ 64,964,803 $ 67,289,841 $ 69,252,064 Change in Net Position Governmental activities $ (5,806,089) $ 975,375 $ (588,316) $ (2,042,773) Business-type activities 12,213,616 14,476,107 10,344,438 17,070,623 Total primary government $ 6,407,527 $ 15,451,482 $ 9,756,122 $ 15,027,850 120 EXHIBIT H-2 (Page 2 of 2) Fiscal Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 1,165,060 868,429 1,511,517 1,921,572 1,919,173 1,761,288 944,394 765,536 757,246 1,127,421 1,080,143 1,110,856 498,808 405,969 611,213 538,637 486,204 663,889 14,776,821 15,192,130 16,154,115 16,901,006 17,208,729 18,578,954 44,464,193 46,673,593 45,810,693 50,122,232 50,034,772 52,793,725 3,730,485 3,787,383 3,706,349 3,751,220 3,755,677 3,767,887 1,425,913 1,271,508 1,779,308 1,677,399 1,904,398 1,784,687 4,857,917 5,738,059 8,223,555 4,311,198 4,605,539 2,346,732 89,890 727,961 874,423 3,047,912 2,274,480 1,107,267 71,953,481 75,430,568 79,428,419 83,398,597 83,269,115 83,915,285 $ 92,982,080 $ 104,312,540 $ 109,362,505 $ 113,882,888 $ 119,860,300 $ 118,028,251 $ (80,010,097) $ (85,406,088) $ (72,284,298) $ (73,653,809) $ (84,276,765) $ (88,530,878) 18,506,053 20,517,549 27,226,675 28,287,618 20,951,916 19,269,174 $ (61,504,044) $ (64,888,539) $ (45,057,623) $ (45,366,191) $ (63,324,849) $ (69,261,704) $ 37,898,136 $ 41,399,096 $ 43,019,695 $ 45,229,447 $ 46,719,098 $ 50,166,104 24,894,930 25,205,996 28,362,467 31,099,772 30,988,808 30,656,869 5,314,591 5,164,750 5,451,658 5,681,541 5,911,738 5,523,727 2,075,905 1,878,957 2,660,388 2,873,908 2,956,265 3,025,700 328,163 255,816 309,857 359,797 376,230 369,980 1,375,504 581,802 47,531 679,311 5,295,711 6,103,382 341,079 525,007 521,187 566,004 942,581 841,076 6,453,485 5,045,896 6,490,207 4,045,947 3,008,234 5,251,416 78,681,793 80,057,320 86,862,990 90,535,727 96,198,665 101,938,254 1,005,000 371,124 23,871 236,378 1,652,400 2,046,798 10,654 (1,858) - 2,099 29,101 1,310 (6,453,485) (5,045,896) (6,490,207) (4,045,947) (3,008,234) (5,251,416) (5,437,831) (4,676,630) (6,466,336) (3,807,470) (1,326,733) (3,203,308) $ 73,243,962 $ 75,380,690 $ 80,396,654 $ 86,728,257 $ 94,871,932 $ 98,734,946 $ (1,328,304) $ (5,348,768) $ 14,578,692 $ 16,881,918 $ 11,921,900 $ 13,407,376 13,068,222 15,840,919 20,760,339 24,480,148 19,625,183 16,065,866 $ 11,739,918 $ 10,492,151 $ 35,339,031 $ 41,362,066 $ 31,547,083 $ 29,473,242 CITY OF WICHITA FALLS, TEXAS FUND BALANCES,GOVERNMENTAL FUNDS- LAST TEN FISCAL YEARS(UNAUDITED) 2014-2015 2015-2016 2016-2017 2017-2018 General Fund Nonspendable $ 210,069 $ 157,494 $ 131,311 $ 309,042 Assigned 1,102,026 878,314 1,059,850 964,114 Unassigned 13,682,061 13,161,690 13,138,307 14,133,369 Total general fund $ 14,994,156 $ 14,197,498 $ 14,329,468 $ 15,406,525 All other Governmental Funds Nonspendable $ 95,283 $ 84,013 $ - $ - Restricted 5,977,567 5,729,434 5,617,402 23,075,586 Committed 2,734,119 2,694,718 2,670,133 2,208,977 Unassigned (550,863) (773,238) (1,224,316) (904,338) Total all other governmental funds $ 8,256,106 $ 7,734,927 $ 7,063,219 $ 24,380,225 121 EXHIBIT H-3 Fiscal Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 $ 359,446 $ 383,596 $ 251,665 $ 328,907 $ 649,684 $ 422,061 18,310,378 26,955,178 37,181,391 45,732,320 48,015,435 50,432,693 $ 18,669,824 $ 27,338,774 $ 37,433,056 $ 46,061,227 $ 48,665,119 $ 50,854,754 $ 1,822 $ - $ 1,470,561 $ 1,639,863 $ 2,597,356 $ 2,874,619 21,903,321 16,435,498 16,582,041 13,764,738 12,212,135 15,203,776 2,865,289 2,495,627 2,380,635 3,210,175 3,184,286 3,472,787 (994,338) (994,338) (779,966) (86,381) (151,813) (233,456) $ 23,776,094 $ 17,936,787 $ 19,653,271 $ 18,528,395 $ 17,841,964 $ 21,317,726 CITY OF WICHITA FALLS, TEXAS CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS- LAST TEN FISCAL YEARS(UNAUDITED) 2014-2015 2015-2016 2016-2017 2017-2018 Revenues Taxes $ 61,007,519 $ 64,201,677 $ 64,886,137 $ 67,254,892 Charges for services 3,362,172 3,370,573 3,340,750 3,339,743 Licenses and permits 1,941,205 1,971,212 1,905,507 1,963,353 Fines and forfeitures 2,262,781 2,561,817 2,795,215 2,757,216 Intergovernmental revenue 12,401,075 13,537,869 10,833,921 9,112,281 Contributions 4,011,809 5,208,537 5,133,510 4,324,823 Miscellaneous revenue 3,118,424 3,120,633 4,239,955 2,499,916 Total revenues 88,104,985 93,972,318 93,134,995 91,252,224 Expenditures Administrative services 14,413,640 14,805,672 14,870,206 14,778,947 Police 21,997,801 23,580,992 23,883,109 24,205,161 Fire 14,719,074 16,077,272 16,536,044 16,896,863 Parks and recreation 5,065,222 5,204,296 5,277,544 5,287,117 Accounting/finance 747,341 702,883 719,865 701,643 Community development 6,440,963 6,678,753 6,931,301 6,685,328 Public works 5,449,860 5,555,929 5,732,327 5,511,044 Health 5,217,970 5,483,135 5,649,913 5,793,866 Traffic and transportation 2,395,837 2,224,511 2,117,966 2,113,558 Multi-Purpose Events Center 3,747,189 3,718,058 3,231,913 2,415,875 Capital outlay* 5,368,119 6,343,551 6,206,493 5,628,992 Debt service- principal 3,350,000 3,745,000 3,525,000 3,610,000 Debt service- interest 1,998,760 1,764,412 1,591,022 1,597,143 Debt service- bond issuance costs - - - - Total expenditures 90,911,776 95,884,464 96,272,703 95,225,537 Excess of revenues over(under) expenditures (2,806,791) (1,912,146) (3,137,708) (3,973,313) Other Financing Sources(Uses) Proceeds from bonds - 13,482,256 - 24,171,317 Issuance of notes payable 47,848 (13,295,568) - 3,310,009 Issuance of subscription liabilities - - - - Payment to refunded bonds escrow agent - - - (6,546,898) Transfers in 17,594,910 7,574,334 8,965,770 8,722,620 Transfer out (23,335,238) (6,961,378) (6,367,674) (4,393,890) Total other financing sources(uses) (5,692,480) 799,644 2,598,096 25,263,158 Net change in fund balances $ (8,499,271) $ (1,112,502) $ (539,612) $ 21,289,845 Debt service as a percentage of noncapital expenditures 6.25% 6.15% 5.68% 5.81% * Some miscellaneous costs(labor,etc)from other departments are also included as capital additions. 122 EXHIBIT H-4 Fiscal Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 $ 70,389,292 $ 73,868,498 $ 79,855,276 $ 85,201,256 $ 86,776,370 $ 89,661,409 3,426,222 3,399,064 3,701,539 3,628,485 3,875,847 4,054,112 2,080,203 1,737,778 1,631,602 2,303,431 2,016,267 1,861,123 2,833,785 1,798,401 2,435,469 2,667,978 3,728,902 3,562,866 8,738,383 17,514,038 14,647,769 13,991,338 19,323,854 19,096,646 4,169,643 3,725,855 3,022,874 3,054,514 2,796,604 2,893,986 3,274,916 3,093,988 4,420,330 5,918,640 10,959,685 11,027,752 94,912,444 105,137,622 109,714,859 116,765,642 129,477,529 132,157,894 15,235,739 14,394,187 16,644,153 16,735,288 17,978,073 18,387,773 25,064,950 27,416,198 27,380,379 28,178,657 29,904,433 31,929,167 16,891,819 17,740,642 18,402,915 19,216,297 20,972,473 22,046,971 5,423,148 5,314,741 5,081,829 5,775,749 6,442,448 7,192,658 753,748 845,894 853,221 849,276 1,057,534 1,191,878 7,119,550 7,081,495 7,262,275 7,949,102 10,304,073 8,737,674 5,302,692 5,411,047 4,796,841 5,412,349 5,793,264 6,433,371 5,645,601 5,685,128 6,499,796 7,523,335 7,397,026 7,845,457 2,362,089 2,573,962 2,226,382 2,673,643 2,798,352 3,399,346 2,286,621 1,940,870 2,064,199 4,295,907 5,327,942 4,462,383 7,888,964 11,290,435 7,417,749 8,267,619 16,051,010 10,901,063 4,000,000 4,045,000 4,215,000 3,613,482 3,721,606 3,866,606 1,912,443 1,877,363 1,821,451 1,651,608 1,533,392 1,405,349 - - 103,139 83,463 - - 99,887,364 105,616,962 104,769,329 112,225,775 129,281,626 127,799,696 (4,974,920) (479,340) 4,945,530 4,539,867 195,903 4,358,198 - - 2,685,339 3,375,027 - - - - - - 304,829 73,405 - - - (3,292,314) - - 8,033,886 8,404,493 5,822,104 6,002,411 8,708,035 5,374,608 (3,295,594) (5,095,512) (1,642,211) (3,522,108) (7,299,247) (3,685,623) 4,738,292 3,308,981 6,865,232 2,563,016 1,713,617 1,762,390 $ (236,628) $ 2,829,641 $ 11,810,762 $ 7,102,883 $ 1,909,520 $ 6,120,588 6.43% 6.28% 6.20% 5.06% 4.64% 4.51% EXHIBIT H-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 2014-2015 $ 31,090,472 $ 22,403,406 $ 5,414,414 $ 1,775,372 $ 291,091 $ 32,764 $ 61,007,519 2015-2016 34,567,763 22,373,768 5,035,947 1,910,477 286,986 26,736 64,201,677 2016-2017 35,110,173 22,413,397 5,193,721 1,878,061 281,687 9,098 64,886,137 2017-2018 35,804,507 23,861,013 5,326,402 1,952,011 308,333 2,626 67,254,892 2018-2019 37,775,703 24,894,930 5,314,591 2,075,905 328,163 - 70,389,292 2019-2020 41,362,767 25,205,996 5,164,962 1,878,957 255,816 1,211 73,869,709 2020-2021 43,069,773 28,362,467 5,451,658 2,660,388 309,857 1,132 79,855,275 2021-2022 45,183,405 31,099,772 5,682,741 2,873,908 359,797 1,633 85,201,256 2022-2023 46,541,726 30,988,808 5,911,738 2,956,265 376,230 1,602 86,776,369 2023-2024 50,055,987 30,656,869 5,524,654 3,053,421 369,980 498 89,661,409 123 EXHIBIT H-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 2014-2015 $ 3,859,560,337 $ 765,251,406 $4,624,811,743 $0.65526 $ 4,624,811,743 100.00% 2015-2016 3,944,783,610 820,827,696 4,765,611,306 0.70598 4,765,611,306 100.00% 2016-2017 4,031,689,962 817,687,012 4,849,376,974 0.70598 4,849,376,974 100.00% 2017-2018 4,123,022,727 818,629,114 4,941,651,841 0.70598 4,941,651,841 100.00% 2018-2019 4,230,948,499 843,630,297 5,074,578,796 0.72988 5,074,578,796 100.00% 2019-2020 4,387,106,524 889,487,609 5,276,594,133 0.76332 5,276,594,133 100.00% 2020-2021 4,582,918,683 872,960,736 5,455,879,419 0.76332 5,455,879,419 100.00% 2021-2022 4,952,234,074 855,749,261 5,807,983,335 0.76093 5,807,983,335 100.00% 2022-2023 5,662,747,875 933,800,536 6,596,548,411 0.69432 6,596,548,411 100.00% 2023-2024 6,231,204,455 988,587,822 7,219,792,277 0.68000 7,219,792,277 100.00% 124 EXHIBIT H-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 l&S Total M&O l&S Total M&O l&S Total 2014-2015 $ 0.64 $ 0.02 $ 0.66 $ 0.51 $ - $ 0.51 $ 1.17 $ 0.14 $ 1.31 2015-2016 0.69 0.02 0.71 0.55 - 0.55 1.17 0.14 1.31 2016-2017 0.69 0.02 0.71 0.58 0.03 0.61 1.17 0.37 1.54 2017-2018 0.69 0.02 0.71 0.58 0.08 0.66 1.17 0.37 1.54 2018-2019 0.69 0.04 0.73 0.59 0.07 0.66 1.17 0.37 1.54 2019-2020 0.72 0.04 0.76 0.60 0.07 0.67 1.07 0.37 1.44 2020-2021 0.72 0.04 0.76 0.57 0.07 0.64 1.05 0.38 1.43 2021-2022 0.73 0.03 0.76 0.54 0.07 0.61 1.05 0.37 1.42 2022-2023 0.66 0.03 0.69 0.50 0.06 0.56 1.00 0.34 1.34 2023-2024 0.65 0.03 0.68 0.49 0.05 0.54 0.82 0.35 1.17 City View ISD(2) Iowa Park CISD(3) Wichita Falls ISD(4) Grand M&O l&S Total M&O l&S Total M&O l&S Total Total 2014-2015 $ 1.17 $ 0.25 $ 1.42 $ 1.04 $ 0.23 $ 1.27 $ 1.04 $ 0.10 $ 1.14 $ 6.31 2015-2016 1.17 0.25 1.42 1.17 0.16 1.33 1.04 0.19 1.23 6.55 2016-2017 1.17 0.25 1.42 1.17 0.16 1.33 1.04 0.19 1.23 6.84 2017-2018 1.17 0.25 1.42 1.17 0.16 1.33 1.04 0.19 1.23 6.89 2018-2019 1.17 0.25 1.42 1.17 0.16 1.33 1.04 0.18 1.22 6.90 2019-2020 1.07 0.32 1.39 1.07 0.36 1.43 0.97 0.18 1.15 6.84 2020-2021 1.05 0.32 1.37 1.05 0.38 1.43 0.97 0.18 1.15 6.78 2021-2022 1.04 0.32 1.36 1.03 0.38 1.41 0.94 0.43 1.37 6.93 2022-2023 0.96 0.32 1.28 0.94 0.30 1.24 0.87 0.43 1.30 6.41 2023-2024 0.75 0.32 1.07 0.77 0.31 1.08 0.72 0.42 1.14 5.69 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 125 EXHIBIT H-8 CITY OF WICHITA FALLS, TEXAS PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO SEPTEMBER 30,2024 2023-2024 2014-2015 Percentage Percentage Taxable of Total Taxable of Total Assessed Assessed Assessed Assessed Taxpayer Value Rank Valuation Value Rank Valuation Oncor Electric Delivery Co $ 67,504,390 1 0.93% $ 39,946,434 2 0.86% Atmos Energy/Mid-Tex Division 46,905,180 2 0.65% 14,899,486 8 0.32% North American Pipe Corp 27,846,101 3 0.39% 17,654,203 6 0.38% Arbor Creek Apartments LLC 24,536,900 4 0.34% - N/A 0.00% Wal-Mart Stores Texas LP 23,437,962 5 0.32% 23,673,540 3 0.51% Sikes Senter Mall Realty Holding LLC 22,715,040 6 0.31% 58,000,000 1 1.25% Wal-Mart Stores East Inc 22,252,100 7 0.31% 20,645,100 4 0.45% Dilts Construction Inc. 18,889,417 8 0.26% - N/A 0.00% Kell West Regional Hospital LLC 17,593,707 9 0.24% 13,951,556 9 0.30% Burlington Northern&Santa Fe Railroad 16,580,457 10 0.23% - N/A 0.00% Quail Creek Crossing Ltd - N/A 0.00% 18,581,000 5 0.40% Southwestern Bell - N/A 0.00% 14,928,053 7 0.32% Alon USA LP - N/A 0.00% 12,651,296 10 0.27% Totals $ 288,261,254 3.99% $ 234,930,668 5.06% Source: Wichita Appraisal District 126 EXHIBIT H-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 2014-2015 $ 30,270,748 $ 29,809,308 98.48% $ 328,268 $ 30,137,576 99.56% 2015-2016 33,644,264 33,124,968 98.46% 398,592 33,523,560 99.64% 2016-2017 34,228,872 33,694,059 98.44% 390,293 34,084,352 99.58% 2017-2018 34,887,074 34,298,367 98.31% 397,199 34,695,566 99.45% 2018-2019 37,037,918 36,347,721 98.14% 488,050 36,835,771 99.45% 2019-2020 40,280,490 39,531,671 98.14% 523,263 40,054,934 99.44% 2020-2021 41,645,982 41,044,294 98.56% 372,035 41,416,329 99.45% 2021-2022 44,194,571 43,425,840 98.26% 301,513 43,727,353 98.94% 2022-2023 45,798,161 44,884,913 98.01% 269,757 45,154,670 98.59% 2023-2024 49,054,634 48,015,584 97.88% - 48,015,584 97.88% 127 CITY OF WICHITA FALLS, TEXAS RATIOS OF OUTSTANDING DEBT BY TYPE- LAST TEN FISCAL YEARS(UNAUDITED) Governmental Activities General Combination Fiscal Obligation Tax and Revenue Subscription Notes Year Bonds Revenue Bonds Bonds Liabilities Payable 2014-2015 $ 3,850,706 $ 46,710,294 $ - $ - $ 3,230,595 2015-2016 16,129,132 31,138,675 - - 2,857,166 2016-2017 14,132,973 29,435,100 - - 2,466,589 2017-2018 36,285,854 21,261,971 - - 5,468,665 2018-2019 33,792,967 19,464,301 - - 5,068,463 2019-2020 30,787,806 18,122,209 - - 4,555,678 2020-2021 27,728,646 16,735,708 2,635,000 - 4,010,237 2021-2022 28,178,294 12,487,817 2,585,000 - 3,430,974 2022-2023 25,242,817 11,512,715 2,535,000 460,214 2,816,672 2023-2024 22,206,131 10,507,993 2,480,000 562,787 2,251,238 (1)Amounts include bond premiums,where applicable. 128 EXHIBIT H-10 Business-type Activities Utility Combination General Right-to-Use Total Percentage System Tax and Obligation Notes Leases Primary of Personal Per Revenue Bonds Revenue Bonds Bonds Payable Payable Government Income Capita $92,086,092 $54,125,933 $1,930,000 $ 1,160,389 $ - $203,094,009 8.47% $1,932.13 87,938,263 51,322,900 - 17,357,438 - 206,743,574 8.63% 1,974.44 83,098,973 46,298,092 - 19,503,566 - 194,935,293 8.14% 1,861.42 78,150,943 41,170,000 - 18,530,644 - 200,868,077 7.73% 1,917.65 69,257,091 39,665,000 - 17,568,069 - 184,815,891 7.58% 1,767.29 60,215,005 38,140,000 - 16,542,952 - 168,363,650 6.58% 1,610.09 51,014,896 36,590,000 - 15,407,763 - 154,122,250 6.05% 1,472.28 41,662,562 29,435,000 5,808,660 14,208,165 2,876,063 140,672,535 5.19% 1,372.44 32,143,944 27,840,000 5,455,266 12,935,154 2,848,743 123,790,525 4.01% 1,201.99 22,445,713 26,220,000 5,101,872 21,294,880 2,819,467 115,890,081 3.53% 1,128.53 EXHIBIT H-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 Venue Tax Value of Per Year Bonds (1) Revenue Bonds Revenue Bonds Total Property Capita 2014-2015 $ 3,850,706 $ 46,710,294 $ - $ 50,561,000 1.09% $ 481.01 2015-2016 16,129,132 31,138,675 - 47,267,807 0.99% 451.42 2016-2017 14,132,973 29,435,100 - 43,568,073 0.90% 416.03 2017-2018 36,285,854 21,261,971 - 57,547,825 1.16% 549.40 2018-2019 33,792,967 19,464,301 - 53,257,268 1.05% 509.27 2019-2020 30,787,806 18,122,209 - 48,910,015 0.93% 467.73 2020-2021 27,728,646 16,735,708 2,635,000 47,099,354 0.86% 449.92 2021-2022 33,986,954 12,487,817 2,585,000 49,059,771 0.84% 478.64 2022-2023 30,698,083 11,512,715 2,535,000 44,745,798 0.68% 434.48 2023-2024 27,308,003 10,507,993 2,480,000 40,295,996 0.56% 392.40 (1)Amount also includes general obligation bonds payable by Business-type Activities. 129 EXHIBIT H-12 CITY OF WICHITA FALLS, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT(UNAUDITED; SEPTEMBER 30, 2024 Gross Percentage Amount Governmental Applicable Applicable Activities to City of to City of Debt (1) Wichita Falls(2) Wichita Falls Direct: City of Wichita Falls $ 38,008,149 100% $ 38,008,149 Overlapping: Wichita County 62,524,523 100% 62,524,523 Burkburnett Independent School District 35,164,807 25% 8,791,202 City View Independent School District 13,187,546 90% 11,868,791 Iowa Park Consolidated Independent School District 31,063,350 2% 621,267 Wichita Falls Independent School District 323,531,106 99% 320,295,795 Total overlapping 465,471,332 404,101,578 Total direct and overlapping bonded debt $ 503,479,481 $ 442,109,727 Sources: (1) Listed taxing jurisdictions (2) City of Wichita Falls Planning Department calculated based on percentage of taxing entity within the City of Wichita Falls city limits. 130 CITY OF WICHITA FALLS, TEXAS COMPUTATION OF LEGAL DEBT MARGIN- LAST TEN FISCAL YEARS(UNAUDITED) Total assessed property value per 2022 tax roll $ 7,219,792,277 Maximum tax rate* $ 2.25/$100 Current tax rate for 2023 tax year .68/$100 Maximum tax rate in excess of 2023 tax rate 1.57/$100 Total legal debt margin $ 113,350,739 2014-2015 2015-2016 2016-2017 2017-2018 Assessed value $ 4,624,811,743 $ 4,765,611,306 $ 4,849,376,974 $ 4,941,651,841 Maximum tax rate $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 Current tax rate .65526/$100 .70598/$100 .70598/$100 .70598/$100 Maximum tax rate in excess of current rate 1.59474/$100 1.54402/$100 1.54402/$100 1.54402/$100 Total legal debt margin $ 73,753,723 $ 73,581,992 $ 74,875,350 $ 76,300,093 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$100 assessed valuation. The 2022 tax rate was$.694321 per$100 assessed valuation. * Maximum tax levy established by City Charter 131 EXHIBIT H-13 Fiscal Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 $ 5,074,578,796 $ 5,276,594,133 $ 5,455,879,419 $ 5,807,983,335 $ 6,596,548,411 $ 7,219,792,277 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 .72988/$100 .763323/$100 .763323/$100 .760928/$100 .694321/$100 .68/$100 1.52012/$100 1.486677/$100 1.486677/$100 1.489072/$100 1.555679/$100 1.57/$100 $ 77,139,687 $ 78,445,911 $ 81,111,304 $ 86,485,054 $ 102,621,118 $ 113,350,739 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(1) Expenses(2) Debt Service 2014-2015 $ 38,456,107 $ 20,477,673 $ 17,978,434 2015-2016 42,499,482 20,415,375 22,084,107 2016-2017 43,054,453 21,643,920 21,410,533 2017-2018 46,159,318 20,861,265 25,298,053 2018-2019 44,671,282 21,755,354 22,915,928 2019-2020 46,388,403 23,627,160 22,761,243 2020-2021 45,310,693 22,937,053 22,373,640 2021-2022 49,376,771 23,246,418 26,130,353 2022-2023 49,534,772 29,880,384 19,654,388 2023-2024 52,293,725 29,782,626 22,511,099 Notes: (1) Includes all operating revenues with the exception of water sales to West Texas Utilities (see Exhibit G-3). (2) Includes all operating expenses of the Water and Sewer Fund with the exception of depreciation and amortization (see Exhibit G-3). (3) Excludes bond premium amortization. 132 EXHIBIT H-14 Debt Service Requirement Principal (3) Interest Total Coverage $3,610,000 $ 4,238,875 $ 7,848,875 2.29 4,625,000 3,356,255 7,981,255 2.77 2,635,000 3,777,314 6,412,314 3.34 2,885,000 3,535,250 6,420,250 3.94 6,915,000 3,391,000 10,306,000 2.22 7,635,000 2,682,000 10,317,000 2.21 8,010,000 2,300,250 10,310,250 2.17 8,410,000 1,899,750 10,309,750 2.53 8,835,000 1,479,250 10,314,250 1.91 9,275,000 1,037,500 10,312,500 2.18 EXHIBIT H-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(1) Age Level Enrollment(2) Rate(3) 2014-2015 105,114 $ 2,397,229,884 $ 22,806 32.5 13.2 15,155 4.4% 2015-2016 104,710 2,394,298,860 22,866 32.5 13.2 15,181 4.8% 2016-2017 104,724 2,395,980,396 22,879 32.5 13.2 15,124 3.4% 2017-2018 104,747 2,597,725,600 24,800 32.8 13.2 15,150 3.1% 2018-2019 104,576 2,439,548,928 23,328 32.9 13.2 15,158 3.0% 2019-2020 104,568 2,558,445,480 24,467 32.9 13.2 15,133 7.0% 2020-2021 104,683 2,546,937,390 24,330 33.1 13.2 14,144 6.5% 2021-2022 102,498 2,709,432,132 26,434 32.4 13.2 14,623 2.3% 2022-2023 102,988 3,083,460,720 29,940 32.8 13.2 14,417 3.3% 2023-2024 102,691 3,284,777,017 31,987 33.0 13.2 12,868 3.9% Sources: (1) U.S.Census Bureau (2) Texas Education Agency (3) Bureau of Labor Statistics 133 EXHIBIT H-16 CITY OF WICHITA FALLS, TEXAS PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO(UNAUDITED) SEPTEMBER 30,2024 2023-2024 2014-2015 Percentage Percentage of Total of Total City City Employer Employees Rank Employment Employees Rank Employment Sheppard Air Force Base 7,222 1 10.78% 10,015 1 14.01% United Regional Health Care System 2,475 2 3.69% 1,739 4 2.43% Midwestern State University 1,709 3 2.55% 1,297 5 1.81% Wichita Falls ISD 1,640 4 2.45% 1,925 3 2.69% City of Wichita Falls 1,253 5 1.87% 1,175 6 1.64% Howmet Corporation 1,072 6 1.60% 1,090 7 1.52% North Texas State Hospital 1,000 7 1.49% 2,071 2 2.90% Vitro Architectural Glass 934 8 1.39% - N/A - Wal-Mart-3 locations 900 9 1.34% 1,026 8 1.43% James V.Allred Prison Unit 687 10 1.03% 869 10 1.22% Cryovac Division-Sealed Air Corp. - N/A 0.00% 896 9 1.25% Totals 18,892 28.19% 22,103 30.90% Sources: All data is from Wichita Falls Chamber of Commerce. 134 CITY OF WICHITA FALLS, TEXAS FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS(UNAUDITED) 2014-2015 2015-2016 2016-2017 2017-2018 Administrative services 95.1 94.1 86.0 85.7 Police 299.0 299.0 295.8 295.5 Fire 162.5 162.5 162.5 162.5 Parks and recreation 92.6 92.6 89.5 88.8 Accounting/finance 26.4 26.2 26.0 25.7 Community development 41.0 41.0 40.0 40.0 Public works 78.5 78.5 72.5 72.5 Health 77.5 78.7 78.8 76.3 Traffic and transportation 56.1 57.0 52.0 52.0 Multi-Purpose Events Center 22.8 22.8 22.8 4.6 Water and sewer 187.7 188.6 186.1 183.9 Sanitation 83.5 85.5 86.5 86.5 Regional Airport 3.0 1.6 1.6 1.6 Kickapoo Airport 3.4 4.4 4.4 4.4 Transit 26.7 26.7 25.2 25.2 Stormwater Drainage 1.8 1.8 4.8 4.8 Source:City of Wichita Falls Human Resources Department 135 EXHIBIT H-17 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 85.9 86.2 88.4 87.0 96.1 89.0 295.5 295.5 295.5 295.5 295.5 292.5 164.0 164.0 164.0 164.0 165.0 164.0 90.7 90.7 90.9 91.2 89.2 90.5 25.7 25.6 26.3 26.6 27.6 27.0 40.0 40.0 41.0 41.1 42.1 39.6 72.5 71.5 70.0 70.0 72.5 72.5 75.4 75.4 70.3 70.3 73.6 73.4 52.0 50.1 52.0 52.0 52.0 52.5 4.0 4.0 3.5 17.2 18.7 20.7 183.9 183.9 184.0 190.0 193.1 201.0 86.5 86.5 86.5 86.5 84.6 87.5 1.6 3.1 3.1 9.1 9.1 8.6 4.4 4.4 4.4 4.4 4.4 5.4 24.2 24.2 24.2 24.2 28.2 31.2 4.8 4.8 5.3 5.3 5.2 4.8 CITY OF WICHITA FALLS, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS(UNAUDITED) 2014-2015 2015-2016 2016-17 2017-2018 General government Building permits issued 7,399 7,413 7,874 6,590 Building inspections conducted 12,852 11,302 10,803 10,760 Police Physical arrests 5,036 5,214 5,845 4,869 Parking violations 90 110 175 27 Traffic violations 18,792 19,424 23,514 23,979 Fire Emergency responses 9,392 9,432 8,442 11,229 Fires extinguished 432 477 449 601 Inspections 2,931 4,133 3,175 3,248 Refuse collection Refuse collected (tons) 76,145 136,646 136,911 131,442 Recyclables collected 1,384 16,134 18,232 23,079 Library Volumes in collection 194,715 176,160 820,301 854,142 Total volumes borrowed 293,364 282,808 294,798 333,381 Water New connections 74 (2,523) 3,144 160 Water main breaks 863 696 519 766 Average daily consumption 12,051 14,974 14,180 15,131 (thousands of gallons) Wastewater Average daily sewage treatment 8,440 7,900 9,877 8,974 (thousands of gallons) Transit Total route miles 575,004 591,417 586,565 591,538 Passengers 462,853 486,104 493,164 464,838 This information provided by applicable City of Wichita Falls department. 136 EXHIBIT H-18 Fiscal Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 5,866 5,323 5,492 7,413 7,242 6,241 12,250 13,744 11,821 10,942 13,827 13,692 4,963 3,779 2,768 3,501 3,337 2,961 113 32 24 36 48 11 23,831 15,390 18,749 19,028 21,586 23,206 12,337 12,037 13,518 13,368 13,729 14,329 490 576 591 713 621 577 3,295 937 1,853 2,699 2,839 2,941 155,767 155,752 164,911 181,457 178,867 184,667 24,311 21,730 23,473 23,858 19,774 21,779 976,145 1,002,768 1,190,927 1,508,436 270,947 191,459 366,800 234,496 340,991 306,068 287,385 287,429 182 371 224 86 104 122 546 618 401 614 692 611 13,895 14,110 13,722 14,688 13,296 16,548 8,927 10,339 10,339 9,148 9,070 9,861 606,501 550,901 549,512 561,393 538,491 514,996 445,029 244,265 234,872 243,252 293,574 293,701 CITY OF WICHITA FALLS, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS(UNAUDITED) 2014-2015 2015-2016 2016-2017 2017-2018 Police Stations 1 1 1 1 Patrol units 113 113 113 113 Fire stations 8 8 8 8 Refuse collection Collection trucks 36 36 36 36 Other public works Streets(miles) 515 530 531 534 Streetlights 7,996 8,015 8,451 8,465 Traffic signals 104 104 104 102 Parks and recreation Acreage 1,200 1,200 1,200 1,200 Playgrounds 39 39 39 39 Golf courses 1 1 1 1 Water Water mains(miles) 580 806 782 808 Fire hydrants 2,593 2,842 2,822 2,836 Storage capacity(thousands of gallons) 37,000 37,000 37,000 37,000 Wastewater Sanitary sewers(miles) 548 599 592 594 Storm sewers(miles) 98 98 98 99 Treatment capacity(thousands of gallons) 21,410 21,410 21,410 21,410 Transit Buses 13 13 13 13 This information maintained by the City of Wichita Falls Finance Department,with assistance from various departments. 137 EXHIBIT H-19 Fiscal Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 1 1 1 1 1 1 113 107 117 110 110 127 8 8 8 8 8 8 36 36 36 36 36 36 534 534 570 528 530 615 8,432 8,453 8,463 8,475 8,478 8,483 102 104 104 104 104 104 1,200 1,200 1,200 1,200 1,200 1,200 39 39 39 39 39 39 1 1 1 1 1 1 808 785 781 763 763 763 2,829 2,883 2,917 2,898 2,873 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