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2025 ACFR Wichita Falls 03-17-26 CITY OF WICHITA FALLS, TX RECEIVED ANNUAL By Marie Balthrop at 4:48 pm, Mar 17, 2026 • PREI-IENSIVE REPORT 1 Elst.:{ FINANCIAL , . /__ M�- gyp .. .. m. W r� 1 u , 1.0.4t._2_,,,,;;;;;.;' —4*. " If II 111111 t[ ti- 1-1- fkE i kE [[ Et �. • , _ "``ems �,�,� .,. _.: , r ,, , , 7 . n:� `��� gym �f u ■ .10 ■ ,.n m ti A n1 Y 41.- 2 "mti 1 tin. _ rmm�wrmaa _ .---- u-,Gar. WWW.WICH ITAFALLSTX. GOV FY 2025 CITY OF WICHITA FALLS, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2025 TABLE OF CONTENTS Exhibit Page INTRODUCTORY SECTION Letter of Transmittal i-xi GFOA Certificate of Achievement xii Organizational Chart xiii City Council&List of Principal Officials xiv-xv 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, 2025 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, 2025 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 9/30/25 1-7 144 Expenditures by Function—FYE 9/30/25 1-8 145 General Governmental Revenues(General Fund Only) 1-9 146 General Governmental Expenditures(General Fund Only) 1-10 147 INTRODUCTORY SECTION FINANCE C EPARTMENT gisP ,4a T E X A S Nme-37tw.4miteo Orp rtunrf March 17, 2026 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, 2025, 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, 2025. 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 102,372 according to the 2024 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) includes a robust manufacturing sector, with several firms employing more than 100 workers.The MSA covers three North Texas counties of Archer, Clay, and Wichita. The largest employment sectors within the MSA include healthcare and social assistance, manufacturing, and government services. The total population of the MSA is 149,689. Wichita Falls' strategic location along major regional transportation corridors and its competitive cost of living continue to support business attraction and workforce retention. The unemployment rate for the Wichita Falls MSA was 3.5% in December 2025.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 benefits from several institutions of higher learning, a strong international presence through Sheppard Air Force Base, and an eager workforce, all supported by a community spirit centered on family and quality of life. 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 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. Wichita Falls is also positioning itself to benefit from emerging investment in digital infrastructure, including data center development. On February 18'2026 Forward Wichita Falls announced that Skybox Data Centers will develop the first large-scale data center campus in Wichita Falls, which they will call Power Campus.The region's reliable electric power supply,available industrial land,and access to regional fiber networks provide favorable conditions for data center operators seeking locations outside of major metropolitan markets. In addition, the community's proximity to major transmission corridors and relatively stable climate conditions make the area attractive for large-scale computing and cloud infrastructure. While these projects typically require significant capital investment but employ relatively smaller permanent workforces,they represent meaningful additions to the local tax base and contribute to the continued diversification of the Wichita Falls economy. ii 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. 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. iii 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, 20245 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, 2025,the current ratio of general bonded debt outstanding to the assessed value of all taxable property is .30%. 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, Sanitation Fund, and the Stormwater Fund. Of the five 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 0=und Type General Fund General Fund General Fund Debt Service Fund Governmental Debt Service Hotel/Motel fund Governmental Special Revenue Venue Tax Fun Governmental Special Revenue Water&Sewer Capital Fund Governmental Capital Fund IV licrofiltration and Reverse Osmosis Fund Governmental Capital Fund Lake Ringgold Fund Governmental Capital Fund Community Development Block Grant Fund Governmental Special Revenue Section 8 Housing Fund Governmental Special Revenue HOME Fund Governmental Special Revenue Transportation Planning Grant Fund Governmental Special Revenue State Routine Airport Maintenance Fund Governmental Special Revenue Community&Rural Health Fund Governmental Special Revenue Community Clinical Linkage Grant Governmental Special Revenue Epidemiology Grant Governmental Special Revenue HIV Control&Prevention (TX Healthy Communities) Governmental Special Revenue HHSC—Alzheimer's Governmental Special Revenue Health Promo Disease Prevention Grant rund Governmental Special Revenue Tuberculosis Gran# Governmental Special Revenue Immunization Grant Program Fund Governmental Special Revenue Women, Infants and Children(WIC)Fund Governmental Special Revenue Water&Sewer Fund Proprietary Enterprise Sanitation Fund Proprietary Enterprise Regional Airport Fund Proprietary Enterprise Kickapoo Airport Fund Proprietary Enterprise Transit Fund Proprietary Enterprise Storm Water Fund Proprietary Enterprise Castaway Cove Waterpark Fund Proprietary Enterprise Champions Golf Course Fund Proprietary Enterprise Fleet Maintenance Fund Proprietary Internal Service Fund Information Technology Fund Proprietary Internal Service Fund 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 years.The City's property tax rate during the 2025 fiscal year was 0.6848 cents per$100 of assessed value. v Property Tax Rate Fiscal Year M&O I&S Total Rate $Change %Change 2021 0.722736 0.040587 0.763323 0.000 0.00% 2022 0.726565 0.034363 0.760928 -0.002 -0.31% 2023 0.661579 0.032742 0.694321 -0.067 -8.75% 2024 0.649853 0.030147 0.680000 -0.014 -2.06% 2025 0.658533 0.026267 0.684800 0.0048 0.71% 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 2025, the property tax rate generated approximately $51.1 million in revenues, of this amount $49.2 million was received into the City's General Fund for general city operation. The property tax base for FY 2026 is $7.957 billion, which is a 3.74%increase from the$7.671 billion tax base in FY 2025. 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 $7,958 $7.220 $6.596 $5.456 $5.808 FY 2021 FY2022 FY 2023 FY2024 FY2025 FY2025 The City receives 2.0%of the sales tax collected within City limits. During fiscal year 2025,the City collected $31.6 million in sales taxes for general operations. The City ended the year with sales tax collections approximately 2.92% higher 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 $10,517,810 and is divided evenly between the two separate sales and economic development corporations for a total of$5,258,905 each.These corporations are discretely presented component units 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. vi 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, 2025, the ARPA funds have generated$2,573,393.20 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 2025 The fiscal year 2026 budget reflects the City Council's continued commitment to maintaining essential services and investing in the community despite ongoing economic pressures. While property values continued to increase,the budget includes an adjustment to the City's property tax rate to ensure the City can sustain service levels, address rising operational costs, and support long-term infrastructure needs. The budget increased the property tax rate by 4.8 cents or 0.71% from 0.6800 to 0.6848. The budget increased employee wages by 11% for Firefighters and 5%for everyone else. The budget also invested over$31.4 million for infrastructure replacement and capital improvement projects. The budget also set aside $4 million in excess General Fund Reserves for future capital projects. STRATEGIC PLANNING In December 2025,the City Council and City staff participated in a strategic workshop to begin developing an updated Strategic Plan to guide the City's priorities and initiatives.The updated plan is currently being finalized and will be released soon. The previous Strategic Plan, adopted by the City Council on April 2, 2024, identified four key focus areas: (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 plan included 32 strategic objectives designed to guide departmental initiatives and improve service delivery to the community. Additional details on the prior strategic plan can be found on the City's website. FY 2026 BUDGET HIGHLIGHTS Adopted Operating Budget The City's Operating Budget for the fiscal year ending September 30, 2026 (FY 2026) was adopted by the City Council on September 2, 2025. Total revenues and expenditures across all funds were budgeted at $264,507,106, representing an increase of $22,482,342, or 9.29%, from the prior year's budget. This increase is primarily attributable to the use of Water and Sewer Bond Fund reserves to make the final payments on Water System Improvement Bonds originally issued in 2001, as well as the use of previously set aside reserves for public safety facilities. The budget also reflects increased personnel compensation and higher capital expenditures to support infrastructure and operational needs. vii Revenues Two of the primary sources of general revenue in the City's budget are property taxes and sales taxes, which help fund many essential City services, including Police, Fire, and Public Health. Property tax revenue is budgeted at$55,971,852 for FY 2026, representing a 4.17%increase over the prior year. The increase is primarily attributable to higher property market values and new property added to the tax base, partially offset by a slight decrease in the tax rate. For FY 2026, the City decreased the property tax rate by 0.33%,from $0.6848 to $0.6825. Sales tax revenue is budgeted at$30,903,921,which remains consistent with the previous year's budget. The Water&Sewer,Sanitation,and Stormwater Funds receive the majority of their revenues from service charges included on monthly utility bills. The FY 2026 budget includes a 2.0% increase in water, sewer, and sanitation rates to support rising infrastructure costs and to maintain competitive salaries for utility personnel. FY 2024 FY 2025 FY 2026 FY 2023 FY 2024 FY 2025 VS FY REVENUE SOURCE ADOPTED ADOPTED ADOPTED ACTUAL ACTUAL 2026 IN VAR) BUDGET BUD( ET BUDGET PROPERTY TAXES 46,541,725 50,055,987 50,338,015 53,729,970 55,971,852 4.17% SALES&USE TAXES 34,377,912 34,088,423 35,341,500 34,391,403 34,398,789 0.02% FRANCHISE&UTILITY 6,152,096 5,804,751 5,908,934 6,362,10,5 6,356,375 -0.09% W/S REVENUE 48,857,518 51,548,554 50,872,500 52,431,700 53,007,885 1.10% SANITATION REVENUE 15,934,585 18,273,031 17,385,558 18,295,000 18,570,499 1.50% STORM WATER REVENUE 3,755,577 3,767,887 3,700,000 3,700,000 3,700,OM 0.00% GRANTS&CONTRIBUTIONS 17,145,769 14,228,158 14,359,355 15,687,542 15,814,722 0.81% FINES 3,168,072 3,561,755 3,140,745 3,368,150 3,58,9,085 5.56% FACILITY USE REVENUE 3,939,301 3,860,560 3,221,950 3,705,885 3,832,485 3.42% PER MITS,LICENSES,FEES 2,057,635 1,373,504 1,967,800 2,222,918 2,051,107 -7.28% PROGRAM REVENUE 4,352,340 3,966,946 3,615,085 4,065,410 4,075,617 0.25% INTEREST REVENUE 5,417,252 5,719,602 4,493,877 5,444,000 5,128,548 -5.79% MISC.REVENUES 7,994,731 5,977,805 4,450,865 4,312,532 4,431,499 2.75% OPERATING REVENUES $200,694,755 $203,927,077 $198,496,285 $207,717,616 5210,938,464 1.55% TRANSFERS IN 24,148,834 13,372,489 7,942,567 5,443,345 6,131,227 12.54% INTERNAL SERVICE REV 18,323,921 20,158,513 20,150,858 19,305,510 21,071,138 5.86% OTHER FIN.SOURCES - - 6,362,545 8,958,193 25,366,277 194.33% TOTAL REVENUES 5243,167,509 5237,458,079 5232,952,356 $242,024,764 $264,507,106 Budget Expenditures Personnel expenses make up the largest category of spending at 43% of total expenditures and are budgeted at $114,857,989 for FY 2026, an increase of 3.98% from the prior year. This growth reflects adjustments to maintain competitive compensation and support the City's workforce needs. viii FY 2024 FY 2025 FY 2026 FY 2023 FY 2024 FY 2025 VS FY EXPENDITURES ADOPTED ADOPTED ADOPTED ACTUAL ACTUAL 2026(%VAR) BUDGET BUDGET BUDGET PERSONNEL SERVICES 96,307,116 103,411,357 104,741,917 110,465,233 114,857,989 3.98% SUPPLIES 14,726,381 13,358,250 15,838,944 16,133,920 16,993,048 5.32% MAINTENANCE&REPAIR 10,296,703 10,578,728 10,378,043 10,534,680 10,954,563 3.99% PURCHASED SERVICES 21,141,124 17,264,946 17,561,618 18,370,350 17,266,775 -6.01% DEBT EXPENDITURES 7,637,889 18,191,764 21,442,183 21,411,219 22,084,720 3.15% OTHER EXPENDITURES 6,756,625 7,531,200 7,781,682 8,626,719 9,179,026 6.40% CAPITAL EXPENDITURES 28,875,932 24,945,856 30,041,703 31,410,348 45,872,571 46.04% INTERNAL CHARGES 18,204,943 20,039,973 20,122,665 19,704,847 21,082,187 6.99% TRANS=ERS OUT 7,342,291 4,328,979 5,043,602 5,367,447 6,216,227 15.81% TOTAL EXPENDITURES $211,289,003 $219,651,053 $232,952,356 5 242,024,764 $264,507,106 9.29% The City also invests in Capital Improvements, which include projects and assets that cost more than $25,000 and have a useful life of more than one year. Capital Expenditures in FY 2026 total $45,872,571, representing a 46.04% increase from the FY 2025 adopted budget, primarily reflecting planned investments in major infrastructure and capital projects scheduled for the upcoming fiscal year. Category Amount Water and Sewer Projects $ 14,474,880 Building and Facilities 14,194,000 Vehicles and Wheeled Equipment 9,336,488 Roadways 4,500,000 Other Equipment 2,731,203 Other Improvements 636,000 Total $ 45,872,571 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 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. ix 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, 2024. This was the 30th 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 third 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, 2024. 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 2024 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. -06 6D' Gr) COA IAFR 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. /00.107r,„,„,* /0000,„... * 01illh- TRANSPARENCY TRANSPARENCY TRANSPARENCY STAR/ STAR STAR./ �.. . / Texas Comptroller Texas Comptroller Texas Comptroller TRADITIONAL FINANCES DEBT OBLIGATIONS PUBLIC PENS6ONS 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, /ifi://L '111--------- Stephen Calvert, CPA, CPFO Chief Financial Officer xi GD Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Wichita Falls Texas For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2024 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, 2024. This was the 30th 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. E' O N O GJ U ad N .1 C oq O F _U? b ^ . o o w y ^ U b , z Cil o m x U x U w ° °J v 2 ,, w A P. U � " w V] A U y aa,__, T 1 1 z ., c..„) „..) ,, .__.. ,._. +, 0 0 p t-con Wm1 • 55 w P 'WG > an C w YY • oa o __ __ __ __I I V U Ft C .� ii .J .2 o .1 F a U U U Ad U ¢ a 4 u j -1- T ,, - . 0 .E.;( t U oa a. a O u c4+1 75 °' U o A � °J I 1 ] 1w LI_H i. 1 . P. g �, ^ IC. 0 U .i ti F� o gu . k.� - U w a3 �� o� g 4 Ltord WICHITA FALLS CITY COUNCIL „., • „ ,..---....--!. _, , ,_ ,...„... ,i TIM SHORT MAYOR AUSTIN COBB WHITNEY FLACK ROBERT BROOKS AT LARGE DISTRICT 1 DISTRICT 2 ', III! �. .'t mta" _ , . -,d R if JEFF BROWNING MIKE BATTAGLINO TOM TAYLOR DISTRICT 3 DISTRICT 4 DISTRICT 5 2°4'1.. , t .. , ,,,: • JEFFERY JENKINS CITY MANAGER CITY OF WICHITA FALLS LIST OF PRINCIPAL OFFICIALS MARCH 31, 2026 TITLE NAME Mayor Tim Short Councilor At Large Austin Cobb District 1 Councilor Whitney Flack District 2 Councilor Robert Brooks District 3 Councilor Jeff Browning District 4 Councilor and Mayor Pro Tem Mike Battaglino District 5 Councilor Tom Taylor City Manager Jeffrey Jenkins City Attorney Kinley Hegglund Municipal Court Judge Diane Dockery City Clerk Marie Balthrop Deputy City Manager James McKechnie 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 Interim Police Chief Scott Vaughn Fire Chief Cody Melton Director of Communications, Marketing, and MPEC Lindsay Lewis Director of Public Works Russell Schreiber Director of Engineering Tyson Traw Director of Development Services Fabian Medellin FINANCIAL SECTION de EDGIN,UBLIC PARKMAN, FLEMING & FLEMING, PC CERTIFIED P ACCOUNTANTS MICHAEL D. EDGIN,CPA 1401 HOLLIDAY ST.,SUITE 216 • P.O.Box 750 DAVID L. PARKMAN,CPA II WICHITA FALLS,TEXAS 76307-0750 A. PAUL FLEMING,CPA 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, 2025, 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, 2025, 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 11, 2026, 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, • edlil%IrPa4.144a.,,--4g1;4mt Edgin, Parkman, Fleming & Fleming, PC March 11, 2026 3 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2025 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, 2025. 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, 2025 was $560,529,545. 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 $27,284,129 over the prior year. This increase is a result of an increase in net position of$17,580,637 from the current fiscal year business-type activities and an increase in net position of $9,703,492 from the current fiscal year governmental activities. The unrestricted net position for Governmental Activities was ($74,388,150), while the Business-type Activities had an unrestricted net position of $60,371,368, for an overall unrestricted net position of ($14,016,782). Governmental activities report a negative unrestricted net position primarily because long-term liabilities, including pension, OPEB, and bonded debt obligations, are reported in the government-wide statements while the capital assets associated with those obligations are reported in net investment in capital assets category. Unrestricted net position for Governmental Activities decreased by $6,044,546 from the prior year, while unrestricted net position for Business-type Activities increased by$801,321 from the prior year. At September 30, 2025, the City's governmental funds reported combined ending fund balances of $70,911,623. Of this amount, $47,966,772, or 68%, 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 $48,392,932 or 44% of total General Fund expenditures of $109,592,676. Property tax and sales tax revenues continue to represent the City's largest governmental revenue sources. Sales tax collections remained stable during the fiscal year, reflecting steady economic activity within the City. Property tax revenues increased due to growth in assessed property values. During Fiscal Year 2025, the City's outstanding debt decreased by $17,317,501, reflecting scheduled principal repayments and the City's continued focus on reducing long-term obligations.The City had taken steps to refinance debt in previous years as lower interest rates offered the opportunity to lower overall debt payments. The City continues to maintain strong credit ratings, reflecting stable financial management and adequate reserves. 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. 4 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2025 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 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 5 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2025 of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Some funds are required to be established by state law or bond covenants. However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities. All of the funds of the City can be divided into three categories:governmental funds, proprietary funds, and fiduciary funds. Governmental Funds—These funds are used to account for the majority of the City's activities, which are essentially the same functions reported as governmental funds in the government-wide statements. However, unlike the government-wide financial statements, governmental fund financial statements are reported using an accounting method identified as the modified accrual basis of accounting, which measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements focus on near-term inflows and outflows of expendable resources, as well as expendable resources available at the end of the fiscal year for future spending. Such information may be useful in evaluating a government's near-term financing requirements. The focus of the governmental 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 6 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2025 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 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 $560,529,545 as of September 30, 2025, and increase of $27,284,129 or 4.9%from the prior year. The largest portion of the City's net position $545,978,627, or 97.4% 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 capital 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, $28,567,700 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, 2025 Net Position (in thousands) Governmental Business-type Activities Activities Total 2025 2024 2025 2024 2025 2024 Current and Other Assets $ 89,326 $100,697 $103,804 $100,718 $193,130 $201,415 Capital Assets 216,866 204,985 415,123 412,285 631,989 617,270 Total Assets 306,191 305,683 518,927 513,003 825,118 818,686 Deferred Outflows of Resources 20,594 48,100 4,727 10,495 25,321 58,596 Long Term Liabilities 150,904 167,224 88,880 103,877 239,784 271,101 Other Liabilities 16,547 26,377 6,530 5,793 23,077 32,169 Total Liabilities 167,451 193,601 95,410 109,669 262,861 303,270 Deferred Inflows of Resources 25,149 19,390 1,900 1,470 27,049 20,860 Net Position: Net Investment in Capital Assets 193,428 178,715 352,551 336,375 545,979 515,090 Restricted 15,146 14,111 13,421 12,818 28,568 26,929 Unrestricted (74,388) (68,344) 60,371 59,570 (14,017) (8,774) Total Net Position $134,186 $124,482 $426,344 $408,763 $560,530 $533,245 8 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2025 CHANGES IN NET POSITION (in thousands) Governmental Business-type Total 2024 2023 2024 2023 2024 2023 Revenues: Program Revenues: Charges for Services S12,500 5 11,675 5 81,294 5 80,461 5 93,794 S 92,136 Operating Grants and Contributions 20,064 18,749 3,434 2,347 23,498 21,096 Capital Grants and Contributions 9,325 3,689 1,178 1,107 10,503 4,797 General Revenues: Property Taxes 53,736 50,166 53,736 50,166 Sales Taxes 31,553 30,657 31,553 30,657 Other Taxes/Fees 8,770 8,919 8,770 8,919 Investment Earnings 4,678 6,103 1,789 2,047 6,467 8,150 Miscellaneous 919 841 28 1 947 842 Total Revenue 141,545 130,800 87,724 85,963 229,269 216,763 Expenses: Administrative Services 21,532 20,264 21,532 20,264 Police 36,027 31,203 36,027 31,203 Fire 27,003 25,483 27,003 25,483 Parks and Recreation 8,678 7,415 8,678 7,415 Accounting/Finance 2,460 1,109 2,460 1,109 Community Development 9,080 8,402 9,080 8,402 Public Works 10,765 10,628 10,765 10,628 Health 8,000 7,551 8,000 7,551 Traffic and Transportation 3,790 4,195 3,790 4,195 MPEC 5,952 5,177 5,952 5,177 Interest and Fees on Long-term Debt 1,102 1,215 1,102 1,215 Regional Airport 3,161 3,056 3,161 3,056 Kickapoo Airport 1,631 1,582 1,631 1,582 Transit 3,389 3,432 3,389 3,432 Sanitation 13,644 13,787 13,644 13,787 Water and Sewer 40,086 39,814 40,086 39,814 Stormwater Drainage 1,187 1,037 1,187 1,037 Waterpark 2.126 1.939 2.126 1939 Total Expenses 134.390 122.644 65.225 64.646 199.615 187.290 Increase in Net Position Before Transfers 7,155 8,156 22,499 21,317 29,654 29,473 Transfers 3.822 5.251 (3.822) (5.2511 Increase in Net Position 10,977 13,407 18.677 16,066 29,654 29,473 Net Position-Beginning,original 124,489 111,464 408,751 392,697 533,239 504,161 Restatement (1,279) (383) (1,084) (12) (2,363) (395) Net Position-End of Year,Restated 134,186 5 124,489 5426,344 5 408,751 5 560,530 5533,239 9 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2025 Governmental Activities—Governmental Activities increased the City's net position by$10,976,725. The increase in net position in the Governmental Activities is due to debt payments which lowered long-term liabilities, and new capital investments including the construction in progress for the City Hall Renovation. Business-Type Activities— Business-type Activities increased the City's net position by $18,676,847. This increase is primarily due to debt payments which lowered long-term liabilities. 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, 2025, the City's governmental funds reported combined fund balances of$70,911,623, which is a decrease of $1,260,857. 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 $48,392,932 a decrease of $2,039,761 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 44% of total General Fund expenditures, while the total fund balance represents 45% of total General Fund expenditures. The decrease in net position in the Governmental Funds is due to the one time use of excess fund balance for capital improvement projects including turf at the Sports Complex. The City received a total of$29.1 million in American Rescue Plan Act funds.These funds were 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. Renovations are anticipated completed in 2026. As of September 30, 2025,the ARPA funds have generated $2,573,393 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, 2025,the net position for the City's internal service funds was$59,087,057, an increase of$5,728,648. This change is due to transfers into the Fleet Maintenance fund for new heavy machinery. 10 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2025 General Fund Budgetary Highlights The final amended expenditure budget for the General Fund, including transfers out, was increased by $7,892,491 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 2025 were $105,984,634, which was $1,252,223 less than final budgeted revenues. Budgeted revenues anticipated the one-time use of fund balance for capital projects including the replacement of Sports Complex turf. 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, 2025 was$631,988,594(net of accumulated depreciation). This investment in capital assets includes land, buildings, equipment, infrastructure, and construction in progress. Major capital investments during the fiscal year focused on maintaining and improving critical infrastructure and facilities used to provide services to residents. • Water and Sewer Line Replacements • Quail Creek Drainage Improvements • Street Rehab and Improvements • Memorial Auditorium Renovations from ARPA Funds • Motor Vehicle Fleet Replacements 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. Capital Assets,Net of Accumulated Depreciation (in thousands) Governmental Activities Business-type Activities Total 2025 2024 2025 2024 2025 2024 Land $ 11,915 $ 11,903 $ 11,072 $ 11,072 $ 22,987 $ 22,976 Land Betterments 21,871 19,172 30,445 31,849 52,317 51,020 Buildings,Systems&Improvements 43,894 45,352 320,987 319,687 364,881 365,039 Infrastructure 110,296 112,582 1,212 1,230 111,509 113,811 Machinery and Equipment 8,530 9,244 4,255 2,712 12,785 11,957 Subscription assets 362 558 - - 362 558 Motor Vehicles - - 37,424 32,716 37,424 32,716 Right-to-use leased assets 934 - 2,050 2,112 2,983 2,112 Construction in Progress 19,063 6,175 7,678 10,906 26,741 17,081 Totals $216,866 $ 204,985 $415,123 $ 412,285 $631,989 $617,270 Long Term Debt- As of September 30, 2025, the City had total bonded debt, notes, and capital leases outstanding of$98,543,580. During the fiscal year,the City's total debt decreased by$17,317,501. As of 11 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2025 September 30, 2025, 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 :3Jsiness-type Total 2025 2024 2025 2024 2025 2024 General Obligation Bonds $ 18,331 $21,238 $ 4,744 $ 5,102 $23,075 $ 26,340 Combination Tax&Revenue Bonds 9,455 10,485 24,565 26,220 34,020 36,705 Venue Tax Revenue Bonds 2,425 2,480 - - 2,425 2,480 Utility System Revenue Bonds - - 12,140 21,415 12,140 21,415 Premiums on Bonds 789 961 425 1,031 1,214 1,992 Notes Payable 2,084 2,251 19,550 21,295 21,634 23,546 Subscription Liabilities 389 563 - - 389 563 Right-To-Use Leases 857 - 2,788 2,819 3,645 2,819 $ 34,330 $37,978 $64,213 $77,882 $98,543 $115,860 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, 2025,was $.6848 per$100 which means that the City has a tax margin of$1.57 per$100, and could generate up to $119,732,595 additional tax revenue a year from the present assessed valuation of$7,649,667,455 before the limit is reached. The current ratio of general bonded debt outstanding to the assessed value of all taxable property is .30%.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 fiscal year 2026 budget decreased the property tax rate by 0.3%from .6848 to .6825. The total Adopted Operating Budget for Fiscal Year 2026 is $264,507,106 which is an increase of$22,482,342 or 9.29%from the Fiscal Year 2025 Budget of $242,024,764. This increase is primarily due to the use of excess general fund reserves for capital projects. It committed over $45 million to infrastructure replacement and capital improvement projects. The 2026 budget also included significant increases in personnel costs to help maintain competitive compensation levels. A collective bargaining agreement with the Fire Department included a 10% pay increase for civil service fire personnel for FY 2026 and a meet and confer agreement with the Police 12 CITY OF WICHITA FALLS,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2025 Department included an 8% increase for civil service police personnel for FY 2026. A cost-of-living adjustment for all other qualified city employees was 6%. The entire budget may be found on the City's website at www.wichitafallstx.gov. Moving forward into the FY 2026 budget year, the City continues to monitor forecasts of key economic indicators. Sales tax revenue have increased by 2.8%for the 12-month period through February. Property values are anticipated to increase by 4% in the coming year and interest rates are expected to decline as the Federal Reserve projects that it will continue to reduce interest rates. The City anticipates economic development including the development of data centers to have a positive impact on sales tax and property taxes in the coming 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 EXHIBIT A-1 CITY OF WICHITA FALLS, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30,2025 Primary Government Governmental Business-type Component Activities Activities Total Units Assets Cash and cash equivalents $ 64,149,026 $ 57,750,616 $ 121,899,642 $ 40,820,815 Investments 7,101,624 - 7,101,624 - Receivables(net): Taxes and assessments 1,542,831 - 1,542,831 - Customer and trade - 9,354,584 9,354,584 Government agencies 12,340,914 618,800 12,959,714 1,871,331 Other 2,513,460 589,096 3,102,556 1,205,229 Internal balances (15,196,597) 15,196,597 - - Inventory 945,773 2,625,108 3,570,881 - Prepaid items 713,741 508,077 1,221,818 - Other assets 31,191 340,398 371,589 - Restricted assets: Cash and cash equivalents 15,183,894 16,820,663 32,004,557 - Capital assets not being depreciated 30,978,217 18,750,161 49,728,378 2,517,331 Capital assets net of accumulated depreciation 185,887,362 396,372,854 582,260,216 26,173,441 Total assets 306,191,436 518,926,954 825,118,390 72,588,147 Deferred Outflows of Resources Pension-related 18,410,580 2,967,642 21,378,222 - OPEB-related 2,146,127 774,568 2,920,695 - Deferred losses on bond refundings 37,444 984,930 1,022,374 - Total deferred outflows of resources 20,594,151 4,727,140 25,321,291 - Liabilities Accounts payable-trade 2,409,152 1,641,702 4,050,854 63,750 Accrued payroll 2,532,456 682,451 3,214,907 - Accrued interest payable 139,495 148,972 288,467 - Payable to government agencies 686,114 121,989 808,103 - Estimated health claims payable 1,106,819 - 1,106,819 - Other liabilities 4,556,466 508,604 5,065,070 1,894 Unearned revenue 5,116,403 - 5,116,403 - Customer deposits 3,426,722 3,426,722 - Long-term liabilities: Portion due or payable within one year 7,761,119 13,945,051 21,706,170 680,000 Portion due or payable after one year 41,630,584 60,027,759 101,658,343 25,563,810 Net pension liability(payable after one year) 92,506,536 11,656,859 104,163,395 - Net OPEB liability(payable after one year) 9,005,791 3,250,321 12,256,112 Total liabilities 167,450,935 95,410,430 262,861,365 26,309,454 Deferred Inflows of Resources Pension-related 23,011,173 1,128,646 24,139,819 - OPEB-related 2,137,498 771,454 2,908,952 - Total deferred inflows of resources 25,148,671 1,900,100 27,048,771 - Net Position Net investment in capital assets 193,427,811 352,550,816 545,978,627 2,343,617 Restricted for: Perpetual care(nonexpendable) 2,401,616 • 2,401,616 - Debt service(expendable) 1,885,240 13,421,380 15,306,620 - Federal grant programs(expendable) 8,893,595 - 8,893,595 -. Tourism(expendable) 1,965,869 - 1,965,869 - Unrestricted (74,388,150) 60,371,368 (14,016,782) 43,935,076 Total net position $ 134,185,981 $ 426,343,564 $ 560,529,545 $ 46,278,693 See accompanying notes to the basic financial statements. 14 CITY OF WICHITA FALLS, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30,2025 Program Revenues Operating Charges for Grants and Functions/Programs Expenses Services Contributions Primary government: Governmental activities: Administrative services $ 21,531,912 $ 2,540,887 $ 2,385,824 Police 36,027,347 321,378 417,976 Fire 27,002,868 114,372 1,131,768 Parks and recreation 8,678,216 526,398 325,282 Accounting/finance 2,460,135 3,360,452 - Development services 9,080,011 2,163,757 6,689,736 Public works 10,765,228 3,853 866,058 Health 8,000,124 1,148,117 3,180,022 Traffic and transportation 3,790,321 143,909 3,360,539 Multi-Purpose Events Center 5,951,703 2,176,851 124,852 Interest and fees on long-term debt 1,102,345 - 1,581,843 Total governmental activities 134,390,210 12,499,974 20,063,900 Business-type activities: Regional Airport 3,160,887 1,963,306 - Kickapoo Airport 1,631,043 1,139,913 - Transit 3,388,581 555,407 3,434,358 Sanitation 13,644,374 19,505,325 Water and sewer 40,086,491 52,568,389 - Stormwater drainage 1,187,465 3,791,664 - Waterpark 2,126,250 1,770,189 Total business-type activities 65,225,091 81,294,193 3,434,353 Total primary government $ 199,615,301 $ 93,794,167 23,i98,258 Component units: Community development $ 17,578,660 $ - $ 719,047 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 Error correction Change in accounting principle 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 $ 9,324,931 $ (7,280,270) $ - $ (7,280,270) $ - (35,287,993) (35,287,993) - (25,756,728) - (25,756,728) - (7,826,536) • (7,826,536) - 900,317 - 900,317 - (226,518) - (226,518) (9,895,317) • (9,895,317) - (3,671,985) (3,671,985)- (285,873) - (285,873)- (3,650,000) (3,650,000)- 479,498 479,498 - 9,324,931 (92,501,405) (92,501,405) - - - (1,197,581) (1,197,581) - (491,130) (491,130)- - 601,184 601,184- 5,860,951 5,860,951 - 1,178,123 13,660,021 13,660,021 - - 2,604,199 2,604,199- - (356,061) (356,061) - 1,178,123 20,681,583 20,681,583 $ 10,503,054 (92,501,405) 20,681,583 (71,819,822) $ - (16,859,613) 53,736,357 - 53,736,357 1,421,186 31,552,997 - 31,552,997 10,517,810 5,601,741 5,601,741 - 2,804,065 2,804,065 364,368 364,368 - 4,677,595 1,789,073 6,466,668 2,228,553 919,192 28,006 947,198 1,791,691 3,821,815 (3,821,815) - - 103,478,130 (2,004,736) 101,473,394 15,959,240 10,976,725 18,676,847 29,653,572 (900,373) 124,488,525 408,750,842 533,239,367 47,179,066 (154,954) - (154,954) - (1,124,315) (1,084,125) (2,208,440) - 123,209,256 407,666,717 530,875,973 47,179,066 $ 134,185,981 $ 426,343,564 $ 560,529,545 $ 46,278,693 EXHIBIT A-3 CITY OF WICHITA FALLS, TEXAS BALANCE SHEET-GOVERNMENTAL FUNDS SEPTEMBER 30, 2025 Nonmajor Total General ARPA Governmental Governmental Fund Fund Funds Funds Assets Cash and cash equivalents $ 34,752,031 $ 8,632,161 $ 17,204,317 $ 60,588,509 Investments 7,101,624 - - 7,101,624 Receivables(net): Taxes and assessments 1,281,485 261,346 1,542,831 Other City funds 7,213,321 - 7,213,321 Government agencies 5,941,466 6,399,448 12,340,914 Other 2,244,342 - 258,216 2,502,558 Inventory 910,265 35,181 945,446 Prepaid items 14,492 - 698,804 713,296 Other assets 1,000 - 30,191 31,191 Total assets $ 59,460,026 $ 8,632,161 $ 24,887,503 $ 92,979,690 Liabilities Accounts payable $ 850,237 $ 879,653 $ 598,563 $ 2,328,453 Accrued payroll 2,304,376 - 173,992 2,478,368 Payable to other City funds • - 3,918,151 3,918,151 Payable to government agencies 597,043 89,071 686,114 Other liabilities 3,459,401 618,355 460,484 4,538,240 Claims and judgments payable 11,922 - - 11,922 Unearned revenue 5,038,358 78,045 5,116,403 Total liabilities 7,222,979 6,536,366 5,318,306 19,077,651 Deferred inflows of resources Unavailable revenues 2,919,358 - 71,058 2,990,416 Fund balances Nonspendable: Inventory and prepaid items 924,757 - 729,778 1,654,535 Permanent Fund principal - - 2,401,616 2,401,616 Restricted for: Debt service - 1,814,182 1,814,182 Capital projects - - 2,148,869 2,148,869 Federal and state grant programs - 2,095,795 6,797,800 8,893,595 Tourism - - 1,965,869 1,965,869 Committed for: Local projects - 4,066,185 4,066,185 Unassigned 48,392,932 - (426,160) 47,966,772 Total fund balances 49,317,689 2,095,795 19,498,139 70,911,623 Total liabilities,deferred inflows of resources and fund balances $ 59,460,026 $ 8,632,161 $ 24,887,503 $ 92,979,690 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 30,2025 Total fund balances-governmental funds(Exhibit A-3) $ 70,911,624 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 not reported in the funds.Capital assets at year-end consist of: Gross capital assets $ 404,962,247 Related accumulated depreciation 194,292,447 210,669,800 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. 2,990,416 Long-term liabilities are not due and payable in the current period and therefore not reported as liabilities in the funds.Long-term liabilities at year-end consist of: Bonds payable 30,210,584 Premiums on bonds payable 788,855 Notes payable 2,084,079 Right-to-use lease payable 857,278 Subscription liabilities 154,313 Accrued vacation and sick leave 14,155,491 Claims and judgments payable 710,917 Accrued interest 139,495 (49,101,012) In the governmental funds financial statements,refunding losses are expended when incurred,whereas in the government-wide financial statements the losses are capitalized and amortized. 37,444 The City's net pension liability and related deferred outflows and inflows related to its 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 funds financial statements.These items consist of: Net pension liabilities 91,723,556 Deferred outflows-pension related items (18,211,247) Deferred inflows-pension related items 22,935,363 (96,447,672) The City's net OPEB liability and related deferred outflows and inflows related to the City 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 8,869,748 Deferred outflows-OPEB related items (2,113,708) Deferred inflows-OPEB related items 2,105,209 (8,861,249) Internal service funds are used by management to charge the costs of duplicating services, information technology and health insurance claims to the individual funds.The assets and liabilities of these internal service funds are included with the governmental activities. 22,212,108 Internal service funds are used by management to charge the costs of central garage services to the individual funds.The assets and liabilities of this fund are included with the business-type activities. This amount represents the governmental activity portion of the central garage activity. (18,225,478) Total net position-governmental activities(Exhibit A-1) $ 134,185,981 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 30,2025 Nonmajor Total General ARPA Governmental Governmental Fund Fund Funds Funds Revenues Taxes $ 89,279,117 $ - $ 4,701,132 $ 93,980,249 Charges for services 3,364,511 666,415 4,030,926 Licenses and permits 1,896,041 - 1,896,041 Fines and forfeitures 3,338,437 290,272 3,628,709 Intergovernmental revenue - 10,524,112 12,897,187 23,421,299 Contributions 2,419,531 - 3,548,001 5,967,532 Miscellaneous revenue 5,686,997 477,598 4,191,489 10,356,084 Total revenues 105,984,634 11,001,710 26,294,496 143,280,840 Expenditures Current: Administrative services 17,462,015 10,354,038 2,384,445 30,200,498 Police 35,131,158 - 250,827 35,381,985 Fire 23,782,573 862,375 24,644,948 Parks and recreation 11,550,440 - 401,478 11,951,918 Accounting/finance 2,440,324 - - 2,440,324 Development services 2,700,080 6,384,594 9,084,674 Public works 9,693,911 - 12,166 9,706,077 Health 4,485,027 21,150 3,479,831 7,986,008 Traffic and transportation 2,347,148 536,670 905,990 3,789,808 Multi-Purpose Events Center 89,852 4,619,391 4,709,243 Capital outlay 1,433,457 1,433,457 Debt service: Principal retirement - 3,992,544 3,992,544 Interest and paying agent fees 1,277,302 1,277,302 Total expenditures 109,592,676 11,001,710 26,004,400 146,598,786 Excess of revenues over(under)expenditures (3,608,042) - 290,096 (3,317,946) Other Financing Sources(Uses) Transfers in 3,336,691 - 2,243,283 5,579,974 Transfers out (1,265,714) - (2,251,134) (3,516,848) Total other financing sources(uses) 2,070,977 (7,851) 2,063,126 Net change in fund balance (1,537,065) 282,245 (1,254,820) Fund balance-beginning 50,854,754 2,095,795 19,215,894 72,166,443 Fund balances-ending $ 49,317,689 $ 2,095,795 $ 19,498,139 7 70,911,623 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 30,2025 Net change in fund balances-total governmental funds(Exhibit A-5) $ (1,254,820) 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 $ 20,973,333 Depreciation expense for the year 9,024,934 11,948,399 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 141,977 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 2024-2025 were: 4,685,550 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 func financial statements,but are included in the government-wide financial statements.The changes in these long-term obligations were: Accrued vacation and sick leave (1,087,004) Claims and judgments payable 39,818 (1,047,186) 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 30,2024 162,596 Accrued interest at September 30,2025 139,495 23,101 Amortization of deferred losses on refundings is only reported in the government-wide financial statements.Current year amortization was: (50,285) 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. (1,417,705) 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. (663,322) 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 30,2025 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. (985,804) 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. (403,180) Change in net position of governmental activities(Exhibit A-2) $ 10,976,725 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 30,2025 Enterprise Funds Stormwater Nonmajor Water and Sanitation Drainage Enterprise Internal Sewer Fund Fund Fund Funds Total Service Funds Assets Current assets: Cash and cash equivalents $ 24,183,826 $ 14,700,450 $ 11,318,173 $ 535,084 $ 50,737,533 $ 10,573,600 Restricted cash and cash equivalents 14,216,141 - - 2,604,521 16,820,662 15,183,894 Receivables(net): Customer and trade 6,796,818 2,161,338 396,428 9,354,584 - Government agencies 71,859 - 546,941 618,800 - Other 509,246 19,978 - 59,281 588,505 11,493 Inventory 1,798,024 - . 178,753 1,976,777 648,331 Prepaid items - - - 29,827 29,827 479,022 Other assets - - 340,398 340,398 Total current assets 47,575,914 16,881,766 11,714,601 4,294,805 80,467,086 26,896,340 Long-term assets: Capital assets,net of accumulated depreciation 257,588,669 10,836,878 35,347,540 72,033,629 375,806,716 45,512,078 Total long-term assets 257,588,669 10,836,878 35,347,540 72,033,629 375,806,716 45,512,078 Total assets 305,164,583 27,718,644 47,062,141 76,328,434 456,273,802 72,408,418 Deferred Outflows of Resources Pension-related 1,631,208 682,512 54,320 320,222 2,688,262 478,713 OPEB-related 457,965 172,613 11,391 59,582 701,551 105,436 Deferred losses on bond refundings 984,930 - - - 984,930 - Total deferred outflows of resources 3,074,103 855,125 65,711 379,804 4,374,743 584,149 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 30,2025 Enterprise Funds Stormwater Nonmajor Water and Sanitation Drainage Enterprise Internal Sewer Fund Fund Fund Funds Total Service Funds Liabilities Current liabilities: Accounts payable-trade 522,469 18,737 415,953 147,183 1,104,342 618,059 Accrued payroll 366,090 156,479 12,705 87,081 622,355 114,184 Accrued vacation and sick leave 1,105,843 469,674 46,067 270,393 1,891,977 369,911 Payable to other City funds - - - 2,832,887 2,832,887 462,283 Payable to government agencies 4 121,972 - 13 121,989 - Estimated health claims payable - - - - 1,106,819 Other liabilities 13,907 69,853 266,681 158,163 508,604 18,227 Right-to-use leases-current maturities - - 33,400 33,400 - Notes payable-current maturities 906,820 - - - 906,820 865,777 Bonds payable-current maturities 11,464,054 - - - 11,464,054 - Subscription liabilities-current maturities - - - 119,200 Accrued interest-revenue bonds 148,972 - - - 148,972 - Total current liabilities 14,528,159 836,715 741,406 3,529,120 19,635,400 3,674,460 Long-term liabilities: Right-to-use leases,less current maturities - - - 2,754,765 2,754,765 - Notes payable,less current maturities 10,271,674 - - - 10,271,674 7,505,693 Bonds payable,less current maturities 30,410,632 - • - 30,410,632 - Subscription liabilities,less current maturities - - - - - 115,457 Estimated liability for landfill closure and post-closure care costs - 7,681,714 - - 7,681,714 - Customer deposits 3,426,722 - - - 3,426,722 - Net pension liability 6,407,365 2,680,897 213,368 1,257,829 10,559,459 1,880,378 Net OPEB liability 1,921,758 724,336 47,799 250,025 2,943,918 442,446 Total long-term liabilities 52,438,151 11,086,947 261,167 4,262,619 68,048,884 9,943,974 Total liabilities 66,966,310 11,923,662 1,002,573 7,791,739 87,684,284 13,618,434 Deferred Inflows of Resources Pension-related 620,377 259,571 20,659 121,786 1,022,393 182,063 OPEB-related 456,124 171,919 11,345 59,342 698,730 105,013 Total deferred inflows of resources 1,076,501 431,490 32,004 181,128 1,721,123 287,076 Net Position Net investment in capital assets 206,176,105 10,836,878 35,347,540 69,245,464 321,605,987 36,905,951 Restricted for debt service 13,421,380 - - - 13,421,380 - Unrestricted 20,598,390 5,381,739 10,745,735 (510,093) 36,215,771 22,181,106 Total net position $ 240,195,875 $ 16,218,617 $ 46,093,275 $ 68,735,371 371,243,138 $ 59,087,057 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 55,100,426 Net position of business-type activities $ 426,343,564 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 30,2025 Enterprise Funds Stormwater Nonmajor Water and Sanitation Drainage Enterprise Internal Sewer Fund Fund Fund Funds Total Service Funds Operating revenues: Charges for services $ 52,404,938 $ 19,476,108 $ 3,791,664 $ 1,671,235 $ 77,343,945 $ 18,153,218 Rents,concessions and other 163,451 29,217 - 3,757,580 3,950,248 1,282,228 Contributions - - - - 14,618,537 Total operating revenues 52,568,389 19,505,325 3,791,664 5,428,815 81,294,193 34,053,983 Operating expenses: Personnel services 13,540,259 5,666,299 478,717 3,549,656 23,234,931 3,844,561 Supplies and materials 4,152,405 389,657 1,147 1,736,342 6,279,551 3,534,238 Maintenance and repairs 2,952,791 115,860 23,029 358,162 3,449,842 4,707,983 Utilities and other services 5,864,893 6,372,529 197,055 1,135,979 13,570,456 720,411 Insurance and contract support 862,404 121,680 512 237,500 1,222,096 16,494,009 Other expenses 2,106,989 606,325 30,128 477,698 3,221,140 1,229,104 Depreciation and amortization 9,650,032 500,816 443,739 2,997,119 13,591,706 7,303,188 Total operating expenses 39,129,773 13,773,166 1,174,327 10,492,456 64,569,722 37,833,494 Operating income(loss) 13,438,616 5,732,159 2,617,337 (5,063,641) 16,724,471 (3,779,511) Nonoperating revenues(expenses): Investment earnings(loss) 971,449 358,159 298,458 161,007 1,789,073 1,658,452 Gain/(loss)on sale/abandonment of capital assets 22,515 - - 5,489 28,004 253,620 Interest expense and paying agent fees (1,728,362) - - (27,230) (1,755,592) (180,012) Intergovernmental operating grants - - - 3,434,358 3,434,358 - Total nonoperating revenues(expenses) (734,398) 358,159 298,458 3,573,624 3,495,843 1,732,060 Income(loss)before contributions and transfers 12,704,218 6,090,318 2,915,795 (1,490,017) 20,220,314 (2,047,451) Capital contributions 1,178,123 - - - 1,178,123 - Transfers in - - - 367,318 367,318 8,088,099 Transfers out (2,910,670) (5,348,094) (757,509) (1,190,270) (10,206,543) (312,000) Change in net position 10,971,671 742,224 2,158,286 (2,312,969) 11,559,212 5,728,648 Net position-beginning,as previously reported 229,769,340 15,738,146 - 115,170,841 53,803,142 Adjustment-change from nonmajor fund to major fund - - 43,959,193 (43,959,193) - Error correction - - - (249,484) Change in accounting principle (545,136) (261,753) (24,204) (163,308) (195,248) Net position-beginning,as restated 229,224,204 15,476,393 43,934,989 71,048,340 53,358,410 Net position-ending $ 240,195,875 $ 16,218,617 $46,093,275 $ 68,735,371 $ 59,087,058 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 7,117,633 Change in net position of business-type activities $ 18,676,845 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 30,2025 Enterprise Funds Stormwater Nonmajor Water and Sanitation Drainage Enterprise Internal Sewer Fund Fund Fund Funds Total Service Funds Cash flows from operating activities: Received from customers and users $ 53,039,203 $ 19,310,886 $ 3,796,371 $ 5,454,052 $ 81,600,512 $ 3,726,234 Received from interfund charges - - - - 29,502,569 Other operating receipts - - - - - 822,130 Payments to suppliers (16,774,655) (2,663,786) (61,001) (3,831,550) (23,330,992) (26,927,566) Payments for interfund services (4,342,505) (6,234,280) (234,193) (894,487) (11,705,465) (705,601) Payments to employees (9,710,861) (4,082,592) (323,665) (2,790,932) (16,908,050) (2,880,076) Net cash provided(used)by operating activities 22,211,182 6,330,228 3,177,512 (2,062,917) 29,656,005 3,537,690 Cash flows from noncapital financing activities: Intergovernmental operating grants - - - 4,317,935 4,317,935 - Interfund loans received(repaid) - - (858,276) (858,276) - Transfers in from other funds - - 367,318 367,318 8,088,099 Transfers out to other funds (2,910,670) (5,348,094) (757,509) (1,190,270) (10,206,543) (312,000) Net cash provided(used)by noncapital financing activities (2,910,670) (5,348,094) (757,509) 2,636,707 (6,379,566) 7,776,099 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (5,208,062) (586,922) (3,066,061) (1,358,419) (10,219,464) (11,180,208) Proceeds from sale of capital assets 22,515 - - 5,489 28,004 462,240 Principal paid on long-term debt (12,181,761) - - (31,302) (12,213,063) (962,232) Interest and fees paid on long-term debt (2,007,973) - - (27,230) (2,035,203) (180,012) Net cash provided(used)for capital and related financing activities (19,375,281) (586,922) (3,066,061) (1,411,462) (24,439,726) (11,860,212) Cash flows from investing activities: Investment earnings 971,449 358,159 298,458 161,007 1,789,073 1,658,452 Net cash provided(used)by investing activities 971,449 358,159 298,458 161,007 1,789,073 1,658,452 Net Increase(Decrease)in Cash and Cash Equivalents 896,680 753,371 (347,600} (676,665) 625,786 1,112,029 Cash and Cash Equivalents-Beginning 37,503,287 13,947,079 11,665.773 3,816,270 66,932,409 24,645,465 Cash and Cash Equivalents-Ending $ 38,399,967 $ 14,700,450 $ 11,318,173 $ 3,139,605 S 67,558,195 $ 25,757,494 Reconciliation of cash and cash equivalents on the balance sheet to the statement of cash flows: Cash and cash equivalents $ 24,183,826 $ 14,700,450 5 11,318,173 $ 535,084 5 50,737,533 $ 10,573,600 Restricted assets-cash and cash equivalents 14,216,141 - - 2,604,521 16,820,662 15,183,894 Total cash and cash equivalents at end of year $ 38,399,967 $ 14,700,450 $ 11,318,173 $ 3,139,605 $ 67,558,195 $ 25,757,494 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 30,2025 Enterprise Funds Stormwater Nonmajor Water and Sanitation Drainage Enterprise Internal Sewer Fund Fund Fund Funds Total Service Funds Reconciliation of Operating Income(Loss)to Net Cash Provided(Used)by Operating Activities: Operating income(loss) $ 13,438,616 $ 5,732,159 $ 2,617,337 $ (5,063,641) $ 16,724,471 $ (3,779,511) Adjustments to reconcile operating income(loss) to net cash provided(used)by operating activities: Depreciation and amortization 9,650,032 500,816 443,739 2,997,119 13,591,706 7,303,188 Customer deposits received(refunded) 387,439 - - 387,439 - (Increase)decrease in assets and deferred outflows: Receivables: Customer and trade 73,727 (194,439) 4,707 - (116,005) Other 9,648 25,237 34,885 (1,305) Inventory (568,117) - - (660) (568,777) 15,400 Prepaid items (29,738) (6,605) (36,343) (445) Other current assets - - - (79,912) (79,912) Deferred outflows-pension-related 1,140,189 448,955 19,534 215,622 1,824,300 321,579 Deferred outflows-OPEB-related (155,408) (60,845) (3,940) (20,170) (240,363) (35,238) Increase(decrease)in liabilities and deferred inflows: Accounts payable-trade (124,170) (52,368) 75,880 76,845 (23,813) 173,850 Accrued payroll 92,343 37,381 4,260 20,260 154,244 31,806 Accrued vacation and sick leave (13,536) 1,470 4,528 22,011 14,473 (36,927) Estimated health claims payable - - - - (81,295) Payable to government agencies - 51,285 - 787 52,072 - Other liabilities (369,870) (20,737) - 6,436 (384,171) (1,745) Estimated liability for landfill closure 349,546 - - 349,546 - Net pension liability (1,945,209) (729,174) (9,217) (357,124) (3,040,724) (531,582) Net OPEB liability 397,710 161,337 10,266 51,494 620,807 88,843 Deferred inflows-pension-related 285,083 122,682 11,724 56,957 476,446 85,241 Deferred inflows-OPEB-related (57,557) (17,840) (1,306) (7,573) (84,276) (14,169) Total adjustments 8,772,566 598,069 560,175 3,000,724 12,931,534 7,317,201 Net cash provided(used)by operating activities $ 22,211,182 $ 6,330,228 $ 3,177,512 $ (2,062,917) $ 29,656,005 $ 3,537,690 Noncash capital and financing activities: Capital assets received from developers $ 1,178,121 $ - $ - $ - $ 1,178,121 $ See accompanying notes to the basic financial statements. 25 EXHIBIT A-10 CITY OF WICHITA FALLS, TEXAS STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2025 Pension Trust Custodial Fund Fund Assets Cash and cash equivalents $ 200 $ 222,230 Receivables 41,222 Investments 59,633,559 - Total assets 59,674,981 222,230 Liabilities Accrued expenses 23,600 - Other liabilities 222,230 Total liabilities 23,600 222,230 Net position $ 59,651,381 $ - 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, 2025 Pension Trust Custodial Fund Fund Additions Contributions: Employer $ 3,313,807 $ - Plan members 1,823,000 Escheatment additions 26,783 Total contributions 5,136,807 26,783 Investment earnings(net): Interest and dividend income 1,946,474 Net appreciation (depreciation) in fair value of investments 4,498,171 - Less investment expenses (436,234) - Total investment earnings(net) 6,008,411 Total additions 11,145,218 26,783 Deductions Benefits paid to participants 6,043,249 - Refunds and drop payments 594,056 - Administrative expenses 111,753 - Escheatment deductions - 26,783 Total deductions 6,749,058 26,783 Net increase(decrease) in fiduciary net position 4,396,160 - Net position-beginning 55,255,221 Net position-ending $ 59,651,381 $ - See accompanying notes to the basic financial statements. 27 CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2025 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 30,2025 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTD.) 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, 2025 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 30,2025 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,the Sanitation Fund, and the Stormwater Drainage 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 30,2025 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. 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. 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 30,2025 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, 2025 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, 2025 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 ($1,304,190) and municipal court fines receivable ($1,686,226) 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, 2025 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, 2025 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 30,2025 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, 2025 is based on management's estimate of probable losses in the amount of $722,839. 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, 2023 to September 30, 2025: Health Workers' Care Compensation Liability balance, October 1, 2023 $ 1,047,682 $ 784,839 Incurred claims/adjustments 14,808,476 571,942 Claim payments ( 14,668,044) ( 594,124) Liability balance,September 30, 2024 1,188,114 762,657 Incurred claims/adjustments 15,702,270 616,724 Claim payments ( 15,783,565) ( 656,542) Liability balance, September 30, 2025 S 1,106,819 $ 722,839 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, 2025. 38 CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2025 Note 2 - COMPLIANCE AND ACCOUNTABILITY(CONT'D.) Deficit Fund Balances—Individual Funds The Airport Improvement Grant Fund, a special revenue funds, had a deficit fund balance of$426,160 as of September 30,2025.The City plans for this deficit 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, 2025, the total amount of the City's demand and time deposits per the general ledger was $6,043,278, and the total amount per the City's September 30, 2025 bank statements was $6,829,469. 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, 2025. The investments of the City and its discretely presented component units at September 30, 2025 are as follows: Average Fair Value/ Credit Weighted Average Carrying Quality/ Days to ]pes of Investments Amount Cost Ratings Maturity Primary Government: TexPool $ 85,717,177 $ 85,717,177 Not rated 31 LOGIC 41,443,258 41,443,258 Not rated 44 U.S.Treasury Notes 7,006,230 6,988,463 N/A 295 Money market accounts 26,398,866 26,398,866 Not rated 1 Total primary government investments 160,565,531 160,547,764 Component Units: TexPool 35,267,304 35,267,304 Not rated 31 Total component unit investments 35,267,304 35,267,304 Total investments 5195,832,835 5195.815.068 39 CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2025 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 30,2025 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, 2025 was $.6848 per $100 which means that the City has a tax margin of$1.5652 per $100, and could raise up to $120,070,622 additional tax revenue a year from the present assessed valuation of$7,671,263,859 before the limit is reached. 41 CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2025 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 $13,421,380 For Capital Improvements: Cash and cash equivalents 794,761 Total S14.216.141 Nonmajor Enterprise Funds restricted assets are comprised of the following: For Passenger Facility Charges: Cash and cash equivalents $1,143,375 For Customer Facility Charges: Cash and cash equivalents 1,461,146 Total $2,604,521 Internal Service Fund restricted assets are comprised of the following: For Employee Insurance: Cash and cash equivalents S15.183,984 42 t in 0 ri in In in r oo a) O 00 mmm0 co W 0 to O > C '—^ Y Vl Ol m .H n lD Ol N U N T. ❑ C coN VD N o N N O 1.,, H aa)) W N V N . d' m I•D N N C cc VI .-i ci V in, U a) aj CL c .HC) 0 0 v v C m N lD 1 (C C Cn N v1 in >- p + +-' u E oo CN� 0 o u 0 +-, I.--I m CO 0) C U -in in I- 0 >.0 et aa)i 0�1 m m n L�(1 00 00 0 a) fa0 N C I D in rvl on 0 N M >^L +-•, C V ,1 N 0011 0� (7) N r^-I CO ++ H a > N in N .N-I r) O l0 m C O O in- V1 L i C7 4-, (o co a) m m m •E 0, Cr, , 01 U C C) .4 a V' aJ N a) . .-i r-i L-i — .u, N U C O O t- a) .-I •.--1 N N +' O t C o i V oo N . 7 n Ol N N 0_ f 41 (p CI E (C o lD O_ N Ci~ C � LD N L Z W H V) Z o Q O C X V ) v N N a0i to cu LJJ H ro ro C 1 o Ni N > O Z E '� m Ns a on a ro W Ln 0 0 ID ID N m C J 2 N N i/) in lJ O Q Q O C In oo m n (D L 6L N M 0 m ID m m + X ' N N Ol ri D ,- (p CA J LJJ -' VV1 .-i L0 N 0000 C ++ CA I U m C(N f17 (Y1 N T vi t V Q H X 0J 0 N 01 lD N 01 m + 0. (0 O Z O. u,+ 00 Cr N CO ONi T. a L. LL N ro a`) LL 0 = 00 Q1 N O L N1 ^ 0 r1 L11 .N-I m Q N C j N O ri n O 7 0 'i 'i a c H 0 V N N CO D lD (D O C O) W '�aJ N Cr N CO00 000 O 0 0 O L C ^0 7 O 0�1 i co n1 on f�/1 Cr CO Z �. O (7U m mN m O Z lD lD lD 0J +-' C 01 (n Q CO C 0- I I -CL11 c + I:) Q u_ in. IA- 0) N O i-r i/T N IDD . N IUD 01 O L ro N m a m CO N (D In +, O vi ni,- .4 v o 0) >r C l�0 N 01 N Ln CO00 l0 O COCU C7 N n Vl N N lD O E in. in U O O O1 0) O y N VI L 0 O_ C Q1 C +-, Cr In E C 7 N 0.) t/} +� in fO a) ° o c >. ro '^ • -o 00 a Cl) u co O UL! v1 .n -O C rO _J O1 .1 C 7 4- ro C 0) a) C CO CO - '^ co� (0 � c > 3J� a, E aJ `) L 0 C u C a) N Oro 0) .O 74 CZv >ro fv o v v v .1 Q o 0 L i- CC r � � Oc70 J H CO >.-� lO CU 0 Z CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2025 Note 7 - CAPITAL ASSETS Capital asset activity for the year ended September 30, 2025 was as follows: Restated Balance Balance Governmental activities: October 1, September 30, 2024 _Increases Decreases 2025 Capital assets not being depreciated: Land $ 11,903,307 $ 11,748 $ - $ 11,915,055 Construction in progress 6,174,523 15,404,156 2,515,517 19,063,162 Total capital assets not being depreciated 18,077,830 15,415,904 2,515,517 30,978,217 Capital assets being depreciated: Land betterments 30,028,867 3,695,895 - 33,724,762 Buildings,systems and improvements 83,872,094 548,856 - 84,420,950 Infrastructure 228,665,436 2,537,155 - 231,202,593 Machinery and equipment 35,791,190 1,601,681 - 37,392,871 Furniture and fixtures 130,848 6,836 - 137,684 Right-to-use leased assets 1,430,641 - - 1,430,641 Subscription assets 1,206 - - 1,206,228 Total capital assets being depreciated 381,125,304 8,390,423 _389,515,729 Less accumulated depreciation for: Land betterments 10,857,160 996,267 - 11,853,427 Buildings,systems and improvements 38,520,101 2,007,157 - 40,527,258 Infrastructure 116,083,640 4,822,468 - 120,906,108 Machinery and equipment 26,796,187 2,072,467 - 28,868,654 Furniture and fixtures 130,848 954 - 131,802 Right-to-use leased assets 217,324 279,697 497,021 Subscription assets 648.677 195,420 844,097 Total accumulated depreciation 193,253,937 _10,374,430 - 203,628,367 Total capital assets being depreciated, net 187,871,367 L 1,984,007) - 185,887,362 Governmental activities capital assets, net $205,949,197 $13,431,897 $2,515,517 $216.865.579 Depreciation expense was charged to functions as follows: Governmental activities: Administrative services $ 1,867,156 Police 899,576 Fire 268,123 Parks and recreation 736,965 Development services 12,584 Public works 4,212,309 Health 206,840 Traffic and transportation 755,501 Multi-Purpose Events Center 1,415,376 Total governmental depreciation $10,374,430 44 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2025 Note 7 - CAPITAL ASSETS(CONT'D.) Balance Balance Business-type activities: October 1, September 30, 2024 Increases Decreases 2025 Capital assets not being depreciated: Land $ 11,072,444 S - $ • $ 11,072,444 Construction in progress 10,906,400 3,923,713 7,152.396 7,677,717 Total capital assets not being depreciated 21,978,844 3,923,713 7,152,396 18,750,161 Capital assets being depreciated: Land betterments 61,036,411 253,826 61,290,237 Buildings,systems and improvements 522,552,947 12,278,897 - 534,831,844 Infrastructure 1,308,101 - - 1,308,101 Machinery and equipment 12,727,305 2,525,596 15,252,901 Furniture and fixtures 16,943 - - 16,943 Motor vehicles 91,348,967 10,762,336 3,844,104 98,267,199 Right-to-use leased assets 3,066,768 - - 3.066,768 Total capital assets being depreciated 692,057,442 25,820,655 3,844,104 714,033,993 Less accumulated depreciation for: Land betterments 29,187,724 1,657,187 30,844,911 Buildings,systems and improvements 202,865,509 10,979,290 - 213,844,799 Infrastructure 78,486 17,503 - 95,989 Machinery and equipment 10,015,271 982,841 - 10,998,112 Furniture and fixtures 16,943 - - 16,943 Motor vehicles 58,632,836 5,845,991 3,635,482 60,843,345 Right-to-use leased assets 954,453 62,587 - 1,017,040 Total accumulated depreciation 301,751,222 19,545,399 3,635,482 317,661,139 Total capital assets being depreciated, net 390,306,220 6,275,256 208,622 396,372,854 Business-type activities capital assets, net $412,285,064 510,198,969 $7,361,018 $415,123.015 Depreciation expense was charged to programs as follows: Business-type activities: Regional Airport $ 1,703,895 Kickapoo Airport 528,218 Transit 408,979 Sanitation 4,895,104 Water and sewer 10,979,665 Stormwater drainage 601,573 Waterpark 427,965 Total business-type depreciation $19.545,399 45 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2025 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, 2025. Detailed information for each plan follows. TMRS WFFRRF - Total Net pension liability $42,767,111 $61,396,284 $104,163,395 Deferred outflows of resources 10,887,794 10,490,428 21,378,222 Deferred inflows of resources 4,140,817 19,999,002 24,139,819 Pension expense 9,148,683 5,259,245 14,407,928 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, 2025 Note 8 - PENSION PLANS(CONT'D.) Employees Covered by Benefit Terms At the December 31, 2024 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 808 Inactive employees entitled to but not yet receiving benefits 626 Active employees 1,033 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 2024 and 2025, respectively. The City's contributions to TMRS for the year ended September 30, 2025, were $10,323,019, and were equal to the required contributions. Net Pension Liability The City's Net Pension Liability (NPL) was measured as of December 31, 2024, 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, 2024 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, 2025 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 2024 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 30,2025 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 31,2023 $340,922,526 $288,415,085 $52,507,441 Changes for the year: Service cost 8,374,451 - 8,374,451 Interest on total pension liability 22,626,038 - 22,626,038 Change of benefit terms - - - Difference between expected and actual experience 3,166,185 3,166,185 Change of assumptions - - - Contributions—employer - 9,996,812 ( 9,996,812) Contributions—employee 4,217,349 ( 4,217,349) Net investment income - 29,889,533 (29,889,533) Benefit payments, including refunds of employee contributions ( 19,818,368) ( 19,818,368) - Administrative expenses - ( 192,194) 192,194 Other changes - 4,496) 4,496 Balances as of December 31,2024 $355,270,832 $312,503,721 $42,767,111 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 $88,537,112 $42,767,111 $4,888,792 Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30, 2025,the City recognized pension expense of$9,148,683 related to its participation in TMRS. 49 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS (CONT'D.) SEPTEMBER 30,2025 Note 8 - PENSION PLANS(CONT'D.) At September 30, 2025, 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 $ 3,176,020 $Net difference in assumptions - 1,203,156 Net difference between projected and actual earnings - 2,937,661 Contributions made subsequent to measurement date 7,711,774 - Total $10,887,794 54.140,817 $7,711,774 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, 2025). 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: 2025 $1,197,317 2026 4,303,900 2027 ( 4,381,712) 2028 ( 2,084,302) Total ($ 964,797) 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 30,2025 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, 2025: Inactive employees or beneficiaries currently receiving benefits 148 Inactive employees entitled to but not yet receiving benefits 6 Active employees 154 Contributions The contribution rate for the firefighters is 13% and the City contributes 16.5%. 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, 2025, were $3,533,237, which exceeded required contributions by $1,000,000 as the City funded an additional contribution of$1,000,000 in December 2024. 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 30,2025 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 4, 2022. 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. 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, 2024 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% Private 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 32 years. These payments were discounted using a discount rate of 7.50%. Future benefit payments beyond 32 years were discounted using a high quality municipal bond rate of 4.28%. 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. The single equivalent discount rate was 6.38%. 52 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2025 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, 2023 $126,841,951 $55,255,221 $71,586,730 Changes for the year: Service cost 2,809,468 - 2,809,468 Interest on total pension liability 7,163,068 7,163,068 Change of benefit terms - - - Difference between expected and actual experience 919,073 919,073 Change of assumptions ( 10,048,590) ( 10,048,590) Contributions—employer - 3,313,807 ( 3,313,807) Contributions—employee - 1,823,000 ( 1,823,000) Net investment income - 6,008,411 ( 6,008,411) Benefit payments, including refunds of employee contributions ( 6,637,305) ( 6,637,305) - Administrative expenses - ( 111,753) 111,753 Other - - Balances as of December 31, 2024 S121,047,665 $59,651,381 $61,396,284 Sensitivity Analysis The following presents the net pension liability of the City, calculated using the discount rate of 6.38%, 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(5.38%) or 1 percentage point higher(7.38%)than the current rate. 1% Current 1% Decrease Discount Rate Increase 5.38% 6.38% 7.38% Net pension liability $75,935,078 $61,396,284 $49,205,464 Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30, 2025, the City recognized pension expense of$5,259,245 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, 2025 Note 8 - PENSION PLANS(CONT'D.) At September 30, 2025, 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 $ 2,296,447 $ 1,341,192 Difference due to changes in actuarial Assumptions 5,933,986 18,657,810 Net difference between projected and actual earnings 284,259 Contributions made subsequent to measurement date 1,975,736 Total $10,490,428 $19,999,002 $1,975,736 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the City's fiscal year ending September 30, 2025 (plan year ending December 31, 2025). Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Plan Year Ended December 31: 2025 ($ 298,222) 2026 ( 1,737,417) 2027 ( 5,364,808) 2028 ( 1,380,770) 2029 ( 1,309,454) Thereafter ( 1,393,639) Total ($11,484,310) Change in Assumptions The calculation of the Total Pension Liability as of December 31, 2024, measurement date reflects an increase in the discount rate from 5.67%to 6.38%. 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. 54 CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2025 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) Retiree Premiums Pre-Medicare: Retirees share in the cost of the Plan by paying premiums according to the following schedule: Medicare Under 65 Core CATA HIDD Supplement Retirees $ 673 $ 506 $ 464 $475 Retiree+Spouse $2,230 $1,753 $1,662 $950 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 dental and vision coverage. Employees Covered by Benefit Terms At the December 31, 2024 measurement date, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefits 786 Inactive plan members entitled to but not yet receiving benefits - Active plan members 1,188 55 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2025 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) 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. Actuarial Methods and Assumptions Valuation Date December 31, 2024 Actuarial Cost Method Entry age, level percent of salary Discount Rate 6.75%as of December 31, 2024 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, 2022 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 5.92% declining to ultimate rate of 4.14% in the year 2041 Discount Rate The discount rate and expected rate of return on plan assets were 6.75%. 56 CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2025 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) Changes in Net OPEB Liability Increase(Decrease) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) l�L) Balances as of December 31,2023 $24,456,777 $14,579,602 $ 9,877,175 Changes for the year: Service cost 758,684 - 758,684 Interest on total OPEB liability 1,652,092 - 1,652,092 Change of benefit terms - - Difference between expected and actual experience 2,015,235 - 2,015,235 Change of assumptions - - Contributions—employer 488,861 ( 488,861) Contributions—employee - -Net investment income - 1,558,213 ( 1,558,213) Benefit payments, including refunds of employee contributions ( 1,480,020) ( 1,480,020) - Administrative expenses - -Other changes - - - Balances as of December 31,2024 527,402,768 515,146,656 $12,256,112 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% 5_13,354,136 $12,256,111 $11,291,433 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 4.92% 5.92% 6.92% $11,386,540 512.256,111 $13,284,031 For Governmental Activities,the net OPEB liability is generally liquidated by the General Fund. 57 CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2025 Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(CONT'D.) OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30, 2025, the City recognized OPEB expense of$1,168,283 related to the City of Wichita Falls Retiree Health Care Plan. At September 30, 2025, 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 $1,777,438 $ - Difference due to changes in actuarial assumptions 33,244 139,508 Differences between expected and actual experience, assets 2,769,444 Contributions made subsequent to measurement date 1,110,015 - Total $2,920,697 $2,908,952 $1,110,015 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability for the City's fiscal year ending September 30, 2025 (plan year ending December 31, 2025). Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended September 30: 2025 ($ 415,252) 2026 ( 297,415) 2027 (- 738,043) 2028 263,815 2028 88,625 Total ($1,098,270) 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. 58 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2025 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 $7,596,138 as of September 30, 2025, which is based on 26% usage of the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of $21,551,832 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$85,576 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. Note 12 - LONG-TERM LIABILITIES Long-term liabilities transactions for the year ended September 30, 2025 are summarized as follows: Restated Balance at Balance at October 1, Retired and September 30, Due Within 2024 Issued Transferred 2025 One Year - Governmental Activities: General obligation bonds $21,238,128 $ - $2,907,544 $ 18,330,584 $2,950,946 Combination tax and revenue bonds 10,485,000 - 1,030,000 9,455,000 1,060,000 Venue tax revenue bonds 2,480,000 - 55,000 2,425,000 60,000 Premiums on bonds 990,996 • 202,141 788,855 Right-to-use lease liabilities 1,118,787 261,509 857,278 273,277 Subscription liabilities 562,787 173,818 388,969 186,546 Accrued vacation and sick leave* 13,174,008 1,165,090 - 14,339,098 3,000,000 Notes payable 2,251,238 - 167,159 2,084,079 181,570 Claims and judgments payable 762,657 616,724 656,542 722,839 48,780 Total governmental activities 53,063,601 1,781,814 5,453,713 49,391,702 7,761,119 Business-type Activities: General obligation bonds 5,101,872 357,456 4,744,416 69,054 Utility system revenue bonds, net of premium(discount) 21,415,000 - 9,275,000 12,140,000 9,705,000 Combination tax and revenue bonds 26,220,000 1,655,000 24,565,000 1,690,000 Premiums on bonds 1,030,714 605,444 425,270 Accrued vacation and sick leave * 2,105,664 - 27,383 2,078,281 675,000 Notes payable 21,294,880 - 1,744,916 19,549,964 1,772,597 Right-to-use lease liabilities 2,819,467 31,302 2,788,165 33,400 Landfill closure, post-closure costs 7,332,168 349,546 7,681,714 Total business-type activities 87,319,765 349,546 13,696,501 73,972,810 13,945,051 Total long-term liabilities $140,383,366 $2,131.360 519.150.214 S123,364,512 $21,706,170 * Increases or decreases in accrued vacation and sick leave represent the net change in the liability. 59 CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30,2025 Note 12 - LONG-TERM LIABILITIES(CONTD.) For governmental activities, claims and judgments payable are generally liquidated by the General Fund. Bonds Payable Bonds payable as of September 30, 2025 are comprised of the following individual issues: Range of Final Annual Bonds Interest Maturity Serial Bonds Outstanding Rates Date Payments Authorized At 9/30/25 General Obligation Bonds: General Obligation Refunding 2.00%- 9/01/26 $200,000 to $9,650,000 $ 1,105,000 Bonds,Series 2015A 5.00% $1,105,000 General Obligation Refunding 0.73%- 9/01/26 $110,000 to 2,885,000 310,000 Bonds,Series 2015E 3.48% $310,000 General Obligation Bonds, 2.00%- 9/01/38 $550,000 to 16,345,000 12,005,000 Series 2018A 5.00% $1,155,000 General Obligation Refunding 2.00%- 10/01/28 $80,000 to 6,170,000 2,735,000 Bonds,Series 2018B 4.00% $725,000 General Obligation Refunding 4.00% 9/01/31 $140,000 to 1,675,000 1,080,000 Bonds,Series 2021 $195,000 General Obligation Refunding 0.40%- 9/01/33 $85,000 to 7,595,000 5,840,000 Bonds,Taxable Series 2021 2.03% $865,000 Total General Obligation Bonds 23,075,000 Combination Tax and Revenue Bonds: Combination Tax and Revenue 2.00%- 9/01/33 $530,000 to 19,875,000 9,455,000 Certificates of Obligation, Series 2013 3.375% $1,315,000 Combination Tax and Revenue 2.00%- 9/01/33 $505,000 to 13,000,000 675,000 Certificates of Obligation, Series 4.625% $905,000 2013A Combination Tax and Revenue 0.00%- 3/01/45 $890,000 to 33,545,000 23,890,000 Certificates of Obligation, Series 2015 2.12% $1,425,000 _ Total Combination Tax and Revenue Bonds 34,020,000 Revenue Bonds: Water&Sewer System Revenue 2.00%- 8/01/27 $2,635,000 to 74,005,000 12,140,000 Refunding Bonds,Series 2016 5.00% $9,705,000 Venue Tax Revenue Bonds, 4.00% 9/01/50 $45,000 to 2,680,000 2,425,000 Series 2020 $150,000 Total Revenue Bonds 14,565,000 Total All Bonds S71.660.000 60 Nn t0 0011 N N 0011 0 0 00 N N O L,, N 0n1 01 LLAA .m-1 O CO00 On .5 al N O 01 n 00 0 D N 0 = N .i N an Q m r w m H n O O C O Q 00 0 r° E ao m rn .-1 N o N. 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N J W 0In v v m om0 01 m aN 6 '^ m LL < 0 < ro at {-1 (Yi C. ry N en 0 ID 0 In 01 J LLI ', Z n l°1n, a COrn .-1 a. 01 llj CO N CO Q CO ~ C IN. co` ono 100 V 001 0 I Q W C a `.4 , . . 0 00 O1 Z W .3 0 0 0 _ " " CO ) ON v 0 n O I 6 O N a c lD r 0 rLT _ 0 V as W _ 0 0 N 0 0 O O m Z C n Kt p O1 N N 1:11C ul .n-1 N 0 en 11n 00'1 100 .n-1 IIn N C N m m 00 0 .-I lO lO LA ' l0 lD O V n n l0 n x v c a N c 01 m 01 0 1+1D'1 n -, H c . 0 O — ri1-I.0 on k. o oi O a 7 0 0 0 0 O 0 8 O o 0 w 0 8 0 E u O O a 0 o Ln 0 a n-- 0 C re) 0 O O LD 00r1 CO C^ V W D. .-i 14 14 1 .-i Iri t0 t0 m 1,,,' N In 10 0 n O .-i m lD 0 Lc,n n nQ V LO Vl N 01 m • •J N 00 O N 10 N 00 CCO CO n lO Ln co G in. C W 1'• V . 00 N 00 0 /6 - O N 0000 0011 LO 1N0Dri V (0Z C 00 000 l0D 1DD 0Ov NI- ...I 0 1 N 0v 00 ti m 0 a O0 00 1n m a O O O O O 0 a, on 0 C E LD n o0 Cl 0 .--1 to .. to r1 to j0 W O N N N N (n m m a V lO 01 z coo 0 m v v r Oi CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2025 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, 2025, this fund had a fund balance of$2,068,295. 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 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. 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. 63 CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30, 2025 Note 12 - LONG-TERM LIABILITIES(CONT'D.) Right-to-Use Lease Liabilities Regional Airport—Land 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, 2025. An interest rate of 1% is imputed for this lease agreement. Axon—Body-worn Cameras The City entered into a right-to-use lease in 2024 for body-worn camera equipment. The agreement called for annual payments over the 5-year term of the agreement totaling $1,559,273. The total value of assets under this agreement was $1,430,641, with accumulated amortization of$559,393 as of September 30, 2025. An interest rate of 4.5% 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. Patagonia Health Inc. —Electronic Health Record Software The City entered into a SBITA in 2024 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 2024 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 2024 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 30,2025 Note 13 - INTERFUND BALANCES Transfers to and from other funds during the year ended September 30, 2025 were as follows: Transfers From Transfers To Amount Reason General Fund Nonmajor Governmental Funds $ 125,617 Supplement operating grants General Fund Nonmajor Governmental Funds 614,471 Supplement operating deficits General Fund Nonmajor Enterprise Funds 367,318 Supplement operating deficits General Fund Internal Service Funds 158,308 Purchase capital assets Nonmajor Governmental Funds Nonmajor Governmental Funds 941,644 Fund debt service payment Nonmajor Governmental Funds Internal Service Funds 1,309,490 Purchase capital assets Water and Sewer Fund General Fund 1,993,442 Administrative overhead Water and Sewer Fund Nonmajor Governmental Funds 154,500 Fund debt service payment Water and Sewer Fund Internal Service Funds 762,728 Purchase capital assets Sanitation Fund General Fund 1,031,249 Administrative overhead Sanitation Fund Internal Service Funds 4,316,845 Purchase capital assets Stormwater Drainage Fund Nonmajor Governmental Funds 407,050 Fund debt service payment Stormwater Drainage Fund Internal Service Funds 350,459 Purchase capital assets Nonmajor Enterprise Funds Internal Service Funds 1,190,270 Purchase capital assets Internal Service Funds General Fund 312,000 Administrative overhead Total $14.035.391 Balances due to and from other funds as of September 30, 2025 were as follows: Due To Fund Due From Fund Amount Purpose General Fund Nonmajor Governmental Funds $3,918,151 Short-term loan General Fund Nonmajor Enterprise Funds 2,832,887 Short-term loan General Fund Internal Service Funds 462,283 Short-term loan Total S7,213,321 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 30,2025 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, 2025 is as follows: Wichita Falls Wichita Falls Economic 4BSales 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 $21,736,144 $14,888,023 $3,759,070 $1,594,306 $1,919,832 $43,897,375 Capital assets,net of accumulated depreciation 12,357,834 16,332,938 - - 28,690,772 Total assets 34,093,978 31,220,961 3,759,070 1,594,306 1,919,832 72,588,147 Accounts payable and other current liabilities 35,000 28,750 1,894 - 65,644 Long-term liabilities 9,178,810 17,065,000 26,243,810 Total liabilities 9,213,810 17,093,750 1,894 26,309,454 Net position 524.880.168 514.127.211 $3,759,070 51.592.412 $1,919,832 546,278,693 Condensed statement of activities: Expenses: Community development $ 8,947,064 $ 7,455,012 $1,176,584 $ - $ - $17,578,660 Program revenues: Operating grants and contributions - 719,047 - - 719,047 Net program expense ( 8,947,064) ( 6,735,965) (1,176,584) (16,859,613) General revenues: Tax revenues 5,258,905 5,258,905 838,703 170,255 412,228 11,938,996 Non-tax general revenues 2,950,850 892,536 83,178 75,371 18,309 4,020,244 Total general revenues 8,209,755 6,151,441 921,881 245,626 430,537 15,959,240 Change in net position (737,309) (584,524) (254,703) 245,626 430,537 (900,373) Beginning net position 25,617,477 14,711,735 4,013,773 1,346,786 1,489,295 47,179,066 Ending net position $24,880,168 $14,127,211 $3,759.074 5i.,592.412 $1,919,832 $46,278,693 66 CITY OF WICHITA FALLS,TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONTD.) SEPTEMBER 30, 2025 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, 2025, the City abated property taxes totaling $1,821,442 under this program and received payments in lieu of taxes totaling$1,726,189. 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$0.23 per one thousand gallons, which is adjusted annually. The rate for the year ended September 30, 2025 was$.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 30,2025 Note 16 - COMMITMENTS AND CONTINGENCIES(CONT'D.) Contract Commitments At September 30, 2025, 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 $ 1,172,699 ARPA Fund 5,444,113 Nonmajor Governmental Funds 2,211,493 Water and Sewer Fund 2,889,896 Stormwater Drainage Fund 2,639,068 Total contract commitments City $14.357,269 Total contract commitments—Component Units $898,128 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, 2025, the City discovered an error in the amounts reported as of September 30, 2024. A right-to-use leased asset and the related liability was not included in Governmental Activities. The result of this error was a decrease to the beginning net position of Governmental Activities in the amount of $154,954. Additionally, an error was made in the capital assets of the Internal Service Funds that resulted in a decrease to the beginning net position in the amount of$249,484. 68 CITY OF WICHITA FALLS, TEXAS NOTES TO THE FINANCIAL STATEMENTS(CONT'D.) SEPTEMBER 30,2025 Note 18 - CHANGE IN ACCOUNTING PRINCIPLE During the year ended September 30, 2025, the City adopted GASB Statement No. 101, Compensated Absences. This adoption led to an adjustment to the liability recognized for vacation and sick leave that is estimated to be used by employees in the future. This change in accounting principle resulted in decreases in beginning net position of $1,124,315 and $1,084,125 in Governmental Activities and Business-type Activities, respectively. This change also decreased the beginning net position of the Water and Sewer Fund ($545,136), Sanitation Fund ($261,753), Stormwater Drainage Fund ($24,204), Nonmajor Enterprise Fund ($163,308) and Internal Service Funds ($195,248). Note 19 - SUBSEQUENT EVENTS On October 15, 2025, the Wichita Falls Economic Development Corporation (WFEDC) acquired the Sikes Senter Mall at 3111 Midwestern Parkway for$27,500,000. The acquisition is part of a strategic initiative for commercial redevelopment.The purchase was funded through $18,000,000 in external financing which consisted of a 2-year term loan at 6.15% interest. Additionally, an inter-fund loan of $3.5M from the 4B Sales Tax Corporation was utilized and subsequently repaid in full by November.The WFEDC has entered into a management agreement with Forward Wichita Falls to oversee operations through the transition and lead marketing efforts for the site's redevelopment. As of the date of these financial statements, the Corporation has not entered into any formal agreements for the sale or long-term lease of the property. On October 31, 2025, the Wichita Falls Economic Development Corporation (WFEDC) sold approximately 225 acres of land and the associated mineral rights of the property within the Wichita Falls Business Park to Texas Data Centers Campus LLC (an entity of Skybox Datacenters) for $14,891,275. Skybox intends to use the site to develop a new data center campus, with construction anticipated to commence in 2026. 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, 2025 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 88,888,727 $ 88,888,727 $ 89,279,117 $ 390,390 Charges for services 3,140,916 3,140,916 3,364,511 223,595 Licenses and permits 2,131,224 2,131,224 1,896,041 (235,183) Fines and forfeitures 3,087,200 3,087,200 3,338,437 251,237 Contributions 232,500 2,332,500 2,419,531 87,031 Miscellaneous revenue 7,656,290 7,656,290 5,686,997 (1,969,293) Total revenues 105,136,857 107,236,857 105,984,634 (1,252,223) Expenditures: Current: Administrative services 16,608,190 17,828,291 17,462,015 366,276 Police 35,122,374 35,125,149 35,131,158 (6,009) Fire 23,120,363 24,171,676 23,782,573 389,103 Parks and recreation 10,738,875 13,025,772 11,550,440 1,475,332 Accounting/finance 2,465,734 2,489,693 2,440,324 49,369 Community development 2,851,425 2,873,925 2,700,080 173,845 Public works 8,979,899 11,953,859 9,693,911 2,259,948 Health 4,645,517 4,767,093 4,485,027 282,066 Traffic and transportation 3,186,046 3,375,456 2,347,148 1,028,308 Total expenditures 107,718,423 115,610,914 109,592,676 6,018,238 Excess of revenues over(under) expenditures (2,581,566) (8,374,057) (3,608,042) 4,766,015 Other financing sources(uses): Transfers in 3,336,691 3,336,691 3,336,691 Transfers out (755,127) (755,127) (1,247,955) (492,828) Total other financing sources(uses) 2,581,564 2,581,564 2,088,736 (492,828) Excess of revenues and other sources over(under)expenditures and other uses (2) (5,792,493) (1,519,306) 4,273,187 Fund balance-beginning 50,854,754 50,854,754 50,854,754 Fund balance-ending $ 50,854,752 $ 45,062,261 $ 49,335,448 $ 4,273,187 70 CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS TEXAS MUNICIPAL RETIREMENT SYSTEM 2024 2023 2022 2021 Total Pension Liability Service cost $ 8,374,451 $ 7,724,088 $ 7,290,057 $ 6,571,147 Interest on total pension liability 22,626,038 22,017,837 21,000,865 20,199,933 Changes of benefit terms - - - Difference between expected and actual experience 3,166,185 1,137,336 4,338,549 937,276 Changes of assumptions - (3,012,418) - - Benefit payments/refunds of contributions (19,818,368) (18,544,887) (17,015,598) (15,388,693) Net change in total pension liability 14,348,306 9,321,956 15,613,873 12,319,663 Total pension liability, beginning 340,922,526 331,600,570 315,986,697 303,667,034 Total pension liability, ending (a) $355,270,832 $ 340,922,526 $331,600,570 $315,986,697 Fiduciary Net Position Contributions-employer $ 9,996,812 $ 9,040,321 $ 8,622,779 $ 7,844,017 Contributions-employee 4,217,349 3,909,517 3,673,895 3,311,593 Net investment income 29,889,533 30,462,384 (21,100,627) 33,864,112 Benefit payments/refunds of contributions (19,818,368) (18,544,887) (17,015,598) (15,388,693) Administrative expenses (192,194) (194,195) (182,885) (156,861) Other (4,496) (1,356) 218,235 1,072 Net change in fiduciary net position 24,088,636 24,671,784 (25,784,201) 29,475,240 Fiduciary net position, beginning 288,415,085 263,743,301 289,527,502 260,052,262 Fiduciary net position, ending(b) $ 312,503,721 $ 288,415,085 $263,743,301 $289,527,502 Net pension liability, ending= (a) - (b) $ 42,767,111 $ 52,507,441 $ 67,857,269 $ 26,459,195 Fiduciary net position as a %of total pension liability 87.96% 84.60% 79.54% 91.63% Covered payroll $ 60,247,849 $ 55,850,239 $ 52,484,212 $ 47,308,476 Net pension liability as a% of covered payroll 70.99% 94.01% 129.29% 55.93% 71 EXHIBIT B-2 2020 2019 2018 2017 2016 2015 $ 6,472,668 $ 6,447,967 $ 4,990,566 $ 4,917,413 $ 2,466,531 $ 4,697,339 19,539,894 18,913,918 17,400,438 16,873,140 16,126,720 16,093,246 12,613,317 - - - (1,175,031) (1,475,630) 540,881 (1,117,057) 3,641,511 203,406 - (26,378) - 1,340,184 (14,828,151) (14,368,878) (13,335,060) (12,461,447) (12,342,806) (12,073,025) 10,009,380 22,104,316 9,596,825 8,212,049 9,891,956 10,261,150 293,657,654 271,553,338 261,956,513 253,744,464 243,852,508 233,591,358 $303,667,034 $293,657,654 $ 271,553,338 $ 261,956,513 $ 253,744,464 $243,852,508 $ 7,598,124 $ 5,913,578 $ 5,783,625 $ 5,565,648 $ 5,339,437 $ 5,639,053 3,257,273 2,590,541 2,558,451 2,470,741 2,494,525 2,497,984 18,618,015 33,663,780 (6,883,878) 28,538,620 13,331,438 296,795 (14,828,151) (14,368,878) (13,335,060) (12,461,447) (12,342,806) (12,073,025) (120,598) (190,372) (133,122) (147,954) (150,608) (180,789) (4,705) (5,719) (6,955) (7,498) (8,114) (8,931) 14,519,958 27,602,930 (12,016,939) 23,958,110 8,663,872 (3,828,913) 245,532,304 217,929,374 229,946,313 205,988,203 197,324,331 201,153,244 $ 260,052,262 $ 245,532,304 $217,929,374 $ 229,946,313 $205,988,203 $ 197,324,331 $ 43,614,772 $ 48,125,350 $ 53,623,964 5 32,010,200 5 47,756,261 $ 46,528,177 85.64% 83.61% 80.25% 87.78% 81.18% 80.92% $ 46,532,477 $ 46,321,599 $ 45,081,895 5 44,380,980 $ 44,793,885 $ 45,036,746 93.73% 103.89% 118.95% 72.13% 106.61% 103.31% CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS TEXAS MUNICIPAL RETIREMENT SYSTEM 2025 2024 2023 2022 Actuarial determined contribution $ 10,323,019 $ 9,713,387 $ 8,844,724 $ 8,805,755 Contributions in relation to the actuarially determined contribution (10,323,019) (9,713,387) (8,844,724) (8,805,755) Contribution deficiency Covered payroll $ 63,869,937 $ 59,147,881 $ 54,472,026 $ 53,500,680 Contributions as a percentage of covered payroll 16.16% 16.42% 16.24% 16.46% 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 21 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 2021 2020 2019 2018 2017 2016 $ 7,624,424 $ 7,185,753 $ 5,877,907 $ 5,675,065 $ 5,521,772 $ 5,427,145 (7,624,424) (7,185,753) (5,877,907) (5,675,065) (5,521,772) (5,427,145) $ $ $ $ $ $ $ 46,206,994 $ 46,894,603 $ 45,968,759 $ 44,522,000 $ 44,687,123 $ 44,674,967 16.50% 15.32% 12.79% 12.75% 12.36% 12.15% 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 2024 2023 2022 2021 Total Pension Liability Service cost $ 2,809,468 $ 2,928,522 $ 2,640,087 $ 3,462,346 Interest on total pension liability 7,163,068 6,880,704 6,792,673 6,175,999 Changes of benefit terms - - - - Difference between expected and actual experience 919,073 1,286,962 - (2,700,656) Changes of assumptions (10,048,590) (1,036,875) 2,195,408 (20,894,841) Benefit payments/refunds of contributions (6,637,305) (6,317,093) (6,006,806) (6,535,299) Net change in total pension liability (5,794,286) 3,742,220 5,621,362 (20,492,451) Total pension liability, beginning 126,841,951 123,099,731 117,478,369 137,970,820 Total pension liability, ending(a) $ 121,047,665 $ 126,841,951 $ 123,099,731 $ 117,478,369 Fiduciary Net Position Contributions-employer $ 3,313,807 $ 2,109,816 $ 1,646,524 $ 1,615,588 Contributions-employee 1,823,000 1,695,157 1,615,459 1,583,797 Net investment income 6,008,411 6,795,399 (8,438,527) 8,128,492 Benefit payments/refunds of contributions (6,637,305) (6,317,093) (6,006,806) (6,535,299) Administrative expenses (111,753) (97,104) (144,781) (266,037) Other - 28,430 10,060 3,386 Net change in fiduciary net position 4,396,160 4,214,605 (11,318,071) 4,529,927 Fiduciary net position, beginning 55,255,221 51,040,616 62,358,687 57,828,760 Fiduciary net position, ending (b) $ 59,651,381 $ 55,255,221 $ 51,040,616 $ 0,358,687 Net pension liability, ending= (a)-(b) $ 61,396,284 $ 71,586,730 $ 72,059,115 $ 55,119,682 Fiduciary net position as a % of total pension liability 49.28% 43.56% 41.46% 53.08% Covered payroll $ 14,023,008 5 13,039,659 $ 12,426,596 $ 12,183,054 Net pension liability(asset) as a % of covered payroll 437.83% 548.99% 579.88% 452.43% 73 EXHIBIT B-4 2020 2019 2018 2017 2016 2015 $ 3,066,397 $ 2,916,767 $ 3,073,858 $ 2,859,969 $ 1,560,472 $ 1,493,672 6,287,518 6,110,936 5,899,445 5,728,347 5,827,804 5,298,361 (5,007,726) - 7,781 (399,085) 5,304,698 (2,151,748) (1,542,023) 8,631,596 3,933,059 (1,453,521) 14,862,872 24,107,651 (5,901,298) (5,759,722) (5,292,918) (5,250,040) (4,543,166) (3,950,906) 12,084,213 6,801,955 (2,780,862) 23,505,846 24,801,013 1,306,885 125,886,607 119,084,652 121,865,514 98,359,668 73,558,655 72,251,770 $137,970,820 $ 125,886,607 $119,084,652 $121,865,514 $ 98,359,668 $ 73,558,655 $ 1,551,830 $ 1,442,485 $ 1,455,950 $ 1,411,351 $ 1,283,410 $ 1,273,913 1,551,830 1,468,465 1,475,242 1,463,122 1,350,904 1,221,926 7,864,359 9,142,584 (2,225,595) 6,581,299 2,577,572 421,270 (5,901,298) (5,759,722) (5,292,918) (5,250,040) (4,543,166) (3,950,906) (115,915) (111,432) (96,102) (124,267) (115,843) (87,245) 347,490 250 - 4,950,806 6,182,380 (4,683,423) 4,428,955 553,127 (1,121,042) 52,877,954 46,695,574 51,378,997 46,950,042 46,396,915 47,517,957 $ 57,828,760 $ 52,877,954 $ 46,695,574 $ 51,378,997 $ 46,950,042 $ 46,396,915 $ 80,142,060 $ 73,008,653 $ 72,389,078 $ 70,486,517 $ 51,409,626 $ 27,161,740 41.91% 42.00% 39.21% 42.16% 47.73% 63.07% $ 11,937,154 $ 11,295,885 $ 11,348,015 $ 11,254,785 5 10,391,569 $ 10,182,717 671.37% 646.33% 637.90% 626.28% 494.72% 266.74% CITY OF WICHITA FALLS, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND 2025 2024 2023 2022 Actuarial determined contribution $ 2,533,237 $ 2,245,965 $ 2,004,905 $ 1,633,202 Contributions in relation to the actuarially determined contribution (3,533,237) (2,245,965) (2,004,905) (1,633,202) Contribution deficiency(excess) $ (1,000,000) $ $ $ Covered payroll $ 14,668,749 $ 13,670,605 $ 12,917,098 $ 12,326,052 Contributions as a percentage of covered payroll 24.09% 16.43% 15.52% 13.25% 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 2022. 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 2022. Disability Rates Based upon member age, in conjunction with an actuarial experience study dated October 2022. Interest Rate: 7.50%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 2022. 74 EXHIBIT B-5 2021 2020 2019 2018 2017 2016 $ 1,587,003 $ 1,508,426 $ 1,455,581 $ 1,411,351 $ 1,283,410 $ 1,273,913 (1,587,003) (1,508,426) (1,455,581) (1,411,351) (1,283,410) (1,273,913) $ $ $ $ $ $ $ 12,039,888 $ 11,834,931 $ 11,500,098 $ 11,214,407 $ 10,929,570 $ 11,088,538 13.18% 12.75% 12.66% 12.59% 11.74% 11.49% Payroll Growth 3.00%per year for amortization of the Unfunded Actuarial Accrued Liability.The assumed payroll growth was approved in conjunction with an actuarial study dated October 2022. 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-16.50%(as of January 1,2024) 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 2024 2023 Total OPEB Liability Service cost $ 758,684 $ 649,071 Interest on total OPEB liability 1,652,092 1,606,708 Changes of benefit terms - - Difference between expected and actual experience 2,015,235 - Changes of assumptions - - Benefit payments/refunds of contributions (1,480,020) (1,906,024) Net change in total OPEB liability 2,945,991 349,7S5 Total OPEB liability, beginning 24,456,777 24,107,022 Total OPEB liability, ending(a) $ 27,402,768 $ 24,456,777 Fiduciary Net Position Contributions-employer $ 488,861 $ 2,221,786 Contributions -employee Net investment income 1,558,214 5,588,971 Benefit payments/refunds of contributions (1,480,020) (1,906,024) Administrative expenses - - Other Net change in fiduciary net position 567,055 5,904,733 Fiduciary net position, beginning _ 14,579,602 8,674,869 Fiduciary net position, ending (b) $ 15,146,657 $ 14,579,602 Net OPEB liability/(asset), ending= (a) - (b) $ 12,256,111 $ 9,877,175 Fiduciary net position as a % of total OPEB liability 55.27% 59.61% Covered payroll $ 69,872,334 $ 64,344,926 Net OPEB liability (asset) as a % of covered payroll 17.54% 15.35% 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 2022 2021 2020 2019 2018 2017 $ 628,392 $ 667,554 $ 557,600 $ 523,568 $ 518,007 $ 505,385 980,948 1,593,949 1,471,238 1,432,914 1,480,271 1,456,410 266,525 - 678,603 • (705,047) (318,362) - 733,999 281,546 765,976 - (2,158,526) (1,667,492) (1,689,454) (1,685,098) (1,679,932) (1,584,144) (601,023) 594,011 1,751,986 552,930 379,275 377,651 24,708,045 24,114,034 22,362,048 21,809,118 21,429,843 21,052,192 $ 24,107,022 $ 24,708,045 $ 24,114,034 $ 22,362,048 $ 21,809,118 $21,429,843 $ 2,580,498 $ 2,059,484 $ 2,051,116 $ 2,214,088 $ 2,260,421 $ 2,029,653 (1,558,642) 1,459,619 1,022,243 1,204,836 (374,667) 737,181 (2,158,526) (1,667,492) (1,689,454) (1,685,098) (1,679,932) (1,584,144) - - (1,202) (4,171) - - (344,259) - - (1,136,670) 1,851,611 1,383,905 1,389,567 204,620 1,178,519 9,811,539 7,959,928 6,576,023 5,186,456 4,981,836 3,803,317 $ 8,674,869 $ 9,811,539 $ 7,959,928 $ 6,576,023 5 5,186,456 $ 4,981,836 $ 15,432,153 $ 14,896,506 5 16,154,106 $ 15,786,025 $ 16,622,662 $ 16,448,007 35.98% 39.71% 33.01% 29.41% 23.78% 23.25% 5 62,111,131 5 63,620,585 5 59,760,545 $ 58,259,148 5 57,044,011 5 55,647,372 24.85% 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 2025 2024 2023 Actuarial determined contribution $ 2,411,070 $ 3,011,353 $ 2,765,123 Contributions in relation to the actuarially determined contribution (488,861) (2,221,786) (2,580,498) Contribution deficiency (excess) $ 1,922,209 $ 789,567 $ 184,625 Covered payroll $ 69,872,334 $ 64,344,926 $ 62,111,131 Contributions as a percentage of covered payroll 0.70% 3.45% 4.15% Valuation Date: December 31, 2024 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry age, level percentage of salary Amortization Method Level dollar Remaining Amortization Period Closed; 8 years as of FYE 2025 Asset Valuation Market Value of Assets 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 2022 2021 2020 2019 2018 $ 2,196,691 $ 2,125,861 $ 2,198,413 $ 2,134,381 $ 2,072,215 (2,292,372) (1,966,977) (2,153,169) (2,453,913) (2,072,215) $ (95,681) $ 158,884 $ 45,244 $ (319,532) $ - $ 59,568,372 $ 54,420,074 $ 55,361,994 $ 58,359,009 $ 55,042,215 3.85% 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 5.92%declining to ultimate rates of 4.14% in Trend Rates the year 2041 Other Information: There were no benefit changes during the year. CITY OF WICHITA FALLS, TEXAS NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2025 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$5,792,491 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, 2025 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/Hole!/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 Projctl, 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 30,2025 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 $ 220,212 $ 3,160,724 $ 122,749 $ 1,382,009 $ 1,653,792 $ - Receivables: Taxes and assessments - - - 151,918 53,456 - Government agencies 1,432,148 (24,943) 2,436,568 - - 1,941,644 Other 8,455 - - 282,146 - - Inventory - - - 35,181 - - Prepaid items - - - 420 - - Other assets - - - 17,320 - - Total assets $ 1,660,815 5 3,135,781 S 2,559,317 $ 1,868,994 5 1,707,248 5 1,941,644 LIABILITIES AND FUND BALANCE Liabilities Accounts payable-trade $ 56,629 $ 1,320 $ 6,702 $ 72,678 $ - $ 17,996 Accrued payroll 8,015 12,741 1,289 67,502 - - Payable to other City funds 381,343 - - 1,192,612 - 2,344,196 Payable to government agencies - 72,460 20,000 (3,484) - - Other liabilities 2,725 (29,855) 24,744 205,075 - 5,612 Unearned revenue - - - 40,809 • - Total liabilities 448,712 56,666 52,735 1,575,192 - 2,367,804 Deferred inflows of resources Unavailable revenues - - - - - - Fund balance: Nonspendable: Inventory and prepaid items - - • 35,181 - Permanent fund principal - - - - - - Restricted for: Debt service - - - - - - Capital projects - - - - - Federal and state grant programs 1,212,103 3,079,115 2,506,582 • - - Tourism - - - 258,621 1,707,248 - Committed for: Local projects - - - - - Unassigned - - (426,160) Total fund balance 1,212,103 3,079,115 2,506,582 293,802 1,707,248 (426,160) Total liabilities,deferred inflows of resources and fund balances 5 1,660,815 5 3,135,781 5 2,559,317 5 1,868,994 $ 1,707,248 $ 1,941,644 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 $ 160,210 $ 3,772,781 $ 1,370,151 $ 435,587 $ 1,615,670 $ 207,682 $ 701,134 $ 2,401,616 $ 17,204,317 - - 55,972 - - - - - 261,346 590,501 23,530 - - - - - 6,399,448 (58,190) 25,805 - - - - - - 258,216 _ - - - - 35,181 3,787 4,897 689,700 - - - - 698,804 9,871 3,000 - - - - - - 30,191 5 115,678 $ 4,396,984 5 2,139,353 $ 435,587 5 1,615,670 $ 207,682 5 701,134 5 2,401,616 5 24,887,503 $ 114,996 $ 74,436 $ - $ - $ 253,806 $ - $ - $ - $ 598,563 84,445 - - - - - 173,992 - - - - - - - - 3,918,151 95 - - - - - 89,071 682 129,690 - - 63,149 - 58,662 - 460,484 37,236 - - - - - - 78,045 115,678 325,902 - - ^' 316,955 - 58,662 - 5,318,306 - 71,058 - - - - • 71,058 - 4,897 689,700 - - - - - 729,778 - - - - - - - 2,401,616 2,401,616 - 1,378,595 435,587 - - - 1,814,182 1,298,715 207,682 642,472 - 2,148,869 - - - - - • 6,797,800 - - - - - 1,965,869 4,066,185 - - - - 4,066,185 - - - - - - - - (426,160) - 4,071,082 2,068,295 435,587 1,298,715 207,682 642,472 2,401,616 19,498,139 $ 115,678 $ 4,396,984 $ 2,139,353 $ 435,587 $ 1,615,670 5 207,682 $ 701,134 5 2,401,616 5 24,887,503 CITY OF WICHITA FALLS,TEXAS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2025 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 $ • $ - $ - $ 2,099,841 $ 665,594 $ - Charges for services 3,071 - - 1,850 - - Fines and forfeitures - - - - - - Intergovernmental revenue 1,202,286 5,336,161 349,481 - - 1,942,600 Contributions - 35,000 - 209,979 Miscellaneous revenue 200 213,932 - 2,175,546 - - Total revenues 1,205,557 5,550,093 349,481 4,312,237 665,594 2,152,579 Expenditures: Current: Administrative services 126,239 - - 83,333 282,479 - Police - - - - - - Fire - - Parks and recreation 71,953 - - - - Accounting/finance - - - - Development services 1,070,872 5,179,008 134,714 - • - Public works - - - - Health - - - - Traffic and transportation - - - - 320,521 Multi-Purpose Events Center - - - 4,619,391 - Capital outlay - - V - Debt service: Principal retirement - - - 55,000 - Interest and paying agent fees - 99,200 - Total expenditures 1,269,064 5,179,008 134,714 4,702,724 436,679 320,521 Excess of revenues over (under)expenditures (63,507) 371,085 214,767 (390,487) 228,915 1,832,058 Other financing sources(uses): Transfers in - - - 406,635 - - Transfers out - - - (16,149) (56,079) (2,034,989) Total other financing sources(uses) - - 390,486 (56,079) (2,034,989) Net change in fund balance (63,507) 371,085 214,767 (1) 172,836 (202,931) Fund balance-beginning 1,275,610 2,708,030 2,291,815 293,803 1,534,412 (223,229) Fund balance-ending $ 1,212,103 $ 3,079,115 $ 2,506,582 $ 293,802 $ 1,707,248 $ (426,160) 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 $ - $ - $ 1,935,697 $ - $ - $ - $ - $ - $ 4,701,132 637,904 23,590 • - - - - 666,415 290,272 - - - - - - 290,272 - 4,066,659 - - - - - - 12,897,187 - 1,721,180 1,581,842 - - - - - 3,548,001 601,260 495,579 209,037 6 141,624 73,972 42,013 238,320 4,191,489 1,239,164 6,597,280 3,726,576 6 141,624 73,972 42,013 238,320 26,294,496 1,436,773 455,621 - - - - - • 2,384,445 250,827 - - - - - - 250,827 - 862,375 - - - - 862,375 - 329,293 - - - - 232 • 401,478 • • - - • - - - 6,384,594 - 12,166 - - - - - 12,166 - 3,479,831 - - - - - 3,479,831 - 585,469 - - - - - - 905,990 - - - - - - - - 4,619,391 - - - - 1,296,624 9,120 127,713 - 1,433,457 - 3,937,544 - - - - - 3,992,544 - 1,178,102 - • - - - 1,277,302 1,436,773 5,975,582 5,115,646 - 1,296,624 9,120 127,945 - 26,004,400 (197,609) 621,698 (1,389,070) 6 (1,155,000) 64,852 (85,932) 238,320 290,096 207,836 125,618 1,503,194 - - - - - 2,243,283 (143,917) - - - - - - (2,251,134) 207,836 (18,299) 1,503,194 - - - - - (7,851) 10,227 603,399 114,124 6 (1,155,000) 64,852 (85,932) 238,320 282,245 (10,227) 3,467,683 1,954,171 435,581 2,453,715 142,830 728,404 2,163,296 19,215,894 $ - $ 4,071,082 $ 2,068,295 435,587 $ 1,298,715 $ 207,682 $ 642,472 2,401,616 $ 19,498,139 EXHIBIT C-3 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE - COMMUNITY DEVELOPMENT BLOCK GRANT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2025 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Charges for services $ $ - $ 3,071 $ 3,071 Intergovernmental revenue 1,402,286 1,402,286 1,202,286 (200,000) Miscellaneous revenue 200 200 Total revenues 1,402,286 1,402,286 1,205,557 (196,729) Expenditures: Administrative services 316,239 249,239 126,239 123,000 Parks and recreation 100,000 207,355 71,953 135,402 Development services 986,047 1,153,047 1,070,872 82,175 Total expenditures 1,402,286 1,609,641 1,269,064 340,577 Excess of revenues over(under) expenditures (207,355) (63,507) 143,848 Fund balance-beginning 1,275,610 1,275,610 1,275,610 - Fund balance-ending $ 1,275,610 $ 1,068,255 $ 1,212,103 $ 143,848 81 EXHIBIT C-4 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-SECTION 8 HOUSING FUND FOR THE YEAR ENDED SEPTEMBER 30, 2025 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental revenue $ 4,954,686 $ 4,954,686 $ 5,336,161 $ 381,475 Miscellaneous revenue 206,000 206,000 213,932 7,932 Total revenues 5,160,686 5,160,686 5,550,093 389,407 Expenditures: Development services 5,160,686 5,160,686 5,179,008 (18,322) Total expenditures 5,160,686 5,160,686 5,179,008 (18,322) Excess of revenues over(under)expenditures - 371,085 371,085 Fund balance-beginning 2,708,030 2,708,030 2,708,030 - Fund balance-ending $ 2,708,030 $ 2,708,030 $ 3,079,115 $ 371,085 82 EXHIBIT C-5 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE- HOME INVESTMENT PARTNERSHIP AGREEMENT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2025 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Intergovernmental revenue $ 349,481 $ 349,481 $ 349,481 $ Total revenues 349,481 349,481 349,481 Expenditures: Development services 349,481 349,481 134,714 214,767 Total expenditures 349,481 349,481 134,714 214,767 Excess of revenues over(under)expenditures 214,767 214,767 Fund balance-beginning 2,291,815 2,291,815 2,291,815 Fund balance-ending $ 2,291,815 $ 2,291,815 $ 2,506,582 $ 214,767 83 EXHIBIT C-6 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-MPEC/HOTEL/MOTEL TAX FUND FOR THE YEAR ENDED SEPTEMBER 30, 2025 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 2,441,882 $ 2,441,882 $ 2,099,841 $ (342,041) Charges for services 400 400 1,850 1,450 Contributions 35,000 35,000 35,000 Miscellaneous revenue 2,079,291 2,079,291 2,175,546 96,255 Total revenues 4,556,573 4,556,573 4,312,237 (244,336) Expenditures: Administrative services 86,000 86,000 83,333 2,667 Multi-Purpose Events Center 4,900,573 4,900,573 4,619,391 281,182 Total expenditures 4,986,573 4,986,573 4,702,724 283,849 Excess of revenues over(under)expenditures (430,000) (430,000) (390,487) 39,513 Other financing sources (uses): Transfers in 430,000 430,000 406,635 (23,365) Transfers out - - (16,149) (16,149) Total other financing sources(uses) 430,000 430,000 390,486 (39,514) Excess of revenues and other sources over(under) expenditures and other uses - (1) (1) Fund balance-beginning 293,802 293,802 293,803 1 Fund balance-ending $ 293,802 $ 293,802 $ 293,802 $ - 84 EXHIBIT C-7 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-HOTEL/MOTEL VENUE TAX FUND FOR THE YEAR ENDED SEPTEMBER 30,2025 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 650,000 $ 650,000 $ 665,594 $ 15,594 Total revenues 650,000 650,000 665,594 15,594 Expenditures: Administrative services 1,583,000 1,583,000 282,479 1,300,521 Debt service: Principal retirement - 55,000 (55,000) Interest and paying agent fees - 99,200 (99,200) Total expenditures 1,583,000 1,583,000 436,679 1,146,321 Excess of revenues over(under) expenditures (933,000) (933,000) 228,915 1,161,915 Other financing sources(uses): Transfers in 933,000 933,000 (933,000) Transfers out - (56,079) (56,079) Total other financing sources(uses) (56,079) (56,079) Excess of revenues and other sources over(under)expenditures and other uses (933,000) (933,000) 172,836 1,105,836 Fund balance-beginning 992,624 992,624 1,534,412 541,788 Fund balance-ending $ 59,624 $ 59,624 $ 1,707,248 $ 1,647,624 85 EXHIBIT C-8 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-GOLF FUND FOR THE YEAR ENDED SEPTEMBER 30, 2025 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Charges for services $ 1,108,172 $ 1,108,172 $ 637,904 $ (470,268) Miscellaneous revenue - 601,260 601,260 Total revenues 1,108,172 1,108,172 1,239,164 130,992 Expenditures: Administrative services 1,048,172 1,048,172 1,436,773 (388,601) Total expenditures 1,048,172 1,108,172 1,436,773 (328,601) Excess of revenues over(under)expenditures 60,000 - (197,609) (197,609) Other financing sources(uses) Transfers in - - 207,836 207,836 Excess of revenues and other sources over(under)expenditures and other uses 60,000 - 10,227 10,227 Fund balance- beginning (10,227) (10,227) (10,2271 Fund balance-ending $ 49,773 $ (10,227) $ $ 10,227 86 EXHIBIT C-9 CITY OF WICHITA FALLS, TEXAS BUDGETARY COMPARISON SCHEDULE-DEBT SERVICE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2025 Variance With Final Budget- Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 2,119,970 $ 2,119,970 $ 1,935,697 $ (184,273) Contributions 1,887,352 1,887,352 1,581,842 (305,510) Miscellaneous revenue 204,000 204,000 209,037 5,037 Total revenues 4,211,322 4,211,322 3,726,576 (484,746) Expenditures: Debt service-principal 4,350,000 4,350,000 3,937,544 412,456 Debt service-interest and paying agent fees 1,364,816 1,364,816 1,178,102 186,714 Total expenditures 5,714,816 5,714,816 5,115,646 599,170 Excess of revenues over(under)expenditures (1,503,494) (1,503,494) (1,389,070) 114,424 Other financing sources(uses) Transfers in 1,503,494 1,503,494 1,503,194 (300) Excess of revenues and other sources over(under)expenditures and other uses - 114,124 114,124 Fund balance-beginning 1,954,171 1,954,171 1,954,171 - Fund balance-ending $ 1,954,171 $ 1,954,171 $ 2,068,295 $ 114,124 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 Fair ort 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. 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 30,2025 Regional Kickapoo Airport Airport Assets Current assets: Cash and cash equivalents $ 464,329 $ 63,610 Restricted cash and cash equivalents 2,604,521 - Receivables(net of allowance for uncollectible accounts): Government agencies • - Other 45,481 13,800 Inventory 79,552 27,666 Prepaid items 14,343 15,484 Other current assets - - Total current assets 3,208,226 120,560 Capital assets,net of accumulated depreciation 41,406,078 10,276,277 Total assets 44,614,304 10,396,837 Deferred outflows of resources Pension-related 51,024 41,201 OPEB-related 8,762 7,010 Total deferred outflows of resources 59,786 48,211 Liabilities Current liabilities payable from current assets: Accounts payable-trade 142,173 3,939 Accrued payroll 13,507 11,843 Accrued vacation and sick leave 27,305 35,086 Payable to other City funds 141,832 22,022 Payable to government agencies - 13 Other liabilities 109,537 20,057 Right-to-use leases,current maturities 33,400 • Total current liabilities payable from current assets 467,754 92,960 Long-term liabilities: Right-to-use leases,less current maturities 2,754,765 Net pension liability 200,423 161,839 Net OPEB liability 36,768 29,415 Total long-term liabilities 2,991,956 191,254 Total liabilities 3,459,710 284,214 Deferred inflows of resources Pension-related 19,405 15,670 OPEB-related 8,727 6,981 Total deferred inflows of resources 28,132 22,651 Net position Net investment in capital assets 38,617,913 10,276,277 Unrestricted 2,568,335 (138,094) Total net position $ 41,186,248 $ 10,138,183 88 EXHIBIT D-1 Total Nonmajor Enterprise Transit Waterpark Funds $ $ 7,145 $ 535,084 2,604,521 546,941 - 546,941 59,281 71,535 - 178,753 29,827 340,398 340,398 618,476 347,543 4,294,805 16,987,150 3,364,124 72,033,629 17,605,626 3,711,667 76,328,434 227,997 - 320,222 43,810 - 59,582 271,807 - 379,804 1,071 147,183 61,731 - 87,081 208,002 - 270,393 2,669,033 - 2,832,887 13 28,569 - 158,163 33,400 2,968,406 3,529,120 2,754,765 895,567 - 1,257,829 183,842 - 250,025 1,079,409 - 4,262,619 4,047,815 - 7,791,739 86,711 - 121,786 43,634 - 59,342 130,345 - 181,128 16,987,150 3,364,124 69,245,464 (3,287,877) 347,543 (510,093) 13,699,273 $ 3,711,667 $ 68,735,371 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 Regional Kickapoo Airport Airport Operating revenues: Charges for services $ 52,517 $ - Rents, concessions and other 1,910,789 1,139,913 Total operating revenues 1,963,306 1,139,913 Operating expenses: Personnel services 596,297 356,943 Supplies and materials 322,468 573,758 Maintenance and repairs 66,087 5,419 Utilities and other services 309,059 107,947 Insurance and contract support 82,191 54,328 Other expenses 204,639 39,267 Depreciation and amortization 1,655,310 504,865 Total operating expenses 3,236,051 1,642,527 Operating income(loss) (1,272,745) (502,614) Nonoperating revenues(expenses): Investment earnings 104,037 3,235 Gain on sale of capital assets Interest expense and paying agent fees (27,230) Intergovernmental operating grants - - Total nonoperating revenues (expenses) 76,807 3,235 Income (loss) before capital contributions and transfers (1,195,938) (499,379) Transfers in - - Transfers out - Change in net position (1,195,938) (499,379) Net position - beginning, as previously reported 42,392,234 10,657,850 Adjustment- change from nonmajor to major fund - - Change in accounting principle (10,048) (20,288) Net position - beginning, as restated 42,382,186 10,637,562 Net position -ending $ 41,186,248 $ 10,138,183 89 EXHIBIT D-2 Total (now Major) Nonmajor Stormwater Enterprise Transit Waterpark Drainage Funds $ 508,965 $ 1,109,753 $ $ 1,671,235 46,442 660,436 - 3,757,580 555,407 1,770,189 - 5,428,815 1,973,463 622,953 - 3,549,656 523,481 316,635 - 1,736,342 179,745 106,911 358,162 225,845 493,128 - 1,135,979 49,473 51,508 - 237,500 126,642 107,150 - 477,698 408,979 427,965 - 2,997,119 3,487,628 2,126,250 - 10,492,456 (2,932,221) (356,061) - (5,063,641) 53,735 - 161,007 5,489 - - 5,489 - - (27,230) 3,434,358 - 3,434,358 3,439,847 53,735 - 3,573,624 507,626 (302,326) - (1,490,017) 367,318 - - 367,318 (1,190,270) - - (1,190,270) (315,326) (302,326) - (2,312,969) 14,147,571 4,013,993 43,959,193 115,170,841 (43,959,193) (43,959,193) (132,972) - - (163,308) 14,014,599 4,013,993 - 71,048,340 $ 13,699,273 $ 3,711,667 $ - $ 68,735,371 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 Regional Kickapoo Airport Airport Cash flows from operating activities: Receipts from customers and users $ 1,978,787 $ 1,165,433 Payments to suppliers (796,563) (754,926) Payments for interfund services (216,928) (90,552) Payments to employees (455,948) (259,580) Net cash provided (used) by operating activities 509,348 60,375 Cash flows from noncapital financing activities: Intergovernmental operating grants - - Interfund loan received (repaid) - Transfers out to other funds - Transfers from other funds -Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities: Acquisition and construction of capital assets (129,715) Proceeds from sale of capital assets - Principal paid on long-term debt (31,302) - Interest and fees paid on long-term debt (27,230)Net cash provided (used)for capital and related financing activities (188,247) - Cash flows from investing activities: Interest on investments 104,037 3,235 Net cash provided by investing activities 104,037 3,235 Net Increase (Decrease) in Cash and Cash Equivalents 425,138 63,610 Cash and Cash Equivalents- Beginning 2,643,712 - Cash and Cash Equivalents- Ending $ 3,068,850 $ 63,610 90 EXHIBIT D-3 (Page 1 of 2) Total Nonmajor Enterprise Transit Waterpark Funds $ 551,269 $ 1,758,563 $ 5,454,052 (1,067,000) (1,213,061) (3,831,550) (587,007) - (894,487) (1,510,268) (565,136) (2,790,932) (2,613,006) (19,634) (2,062,917) 4,317,935 - 4,317,935 (858,276) (858,276) (1,190,270) (1,190,270) 367,318 367,318 2,636,707 - 2,636,707 (29,190) (1,199,514) (1,358,419) 5,489 - 5,489 (31,302) (27,230) (23,701) (1,199,514) (1,411,462) 53,735 161,007 53,735 161,007 (1,165,413) (676,665) 1,172,558 3,816,270 $ $ 7,145 $ 3,139,605 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF CASH FLOWS(CONT'D.) NON MAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 Regional Kickapoo Airport Airport Cash flows from operating activities: Operating income (loss) $ (1,272,745) $ (502,614) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization 1,655,310 504,865 (Increase) decrease in assets and deferred outflows of resources: Receivables: Other 15,481 25,520 Inventory (39,817) 28,115 Prepaid items (3,482) (3,123) Other current assets - - Deferred outflows-pension-related 28,350 25,203 Deferred outflows-OPEB-related (3,076) (2,304) Increase (decrease) in liabilities and deferred inflows of resources: Accounts payable-trade 135,865 2,804 Accrued payroll 1,186 3,073 Accrued vacation and sick leave 14,393 4,848 Payable to government agencies 781 6 Other liabilities (1,100) (62) Net pension liability (38,797) (38,293) Net OPEB liability 8,124 5,710 Deferred inflows- pension-related 9,802 7,636 Deferred inflows -OPEB-related (927) (1,009) Total adjustments 1,782,093 562,989 Net cash provided (used) by operating activities $ 509,348 $ 60,375 91 EXHIBIT D-3 (Page 2 of 2) Total Nonmajor Enterprise Transit Waterpark Funds $ (2,932,221) $ (356,061) $ (5,063,641) 408,979 427,965 2,997,119 (4,138) (11,626) 25,237 11,042 - (660) (6,605) (79,912) (79,912) 162,069 - 215,622 (14,790) - (20,170) (61,824) - 76,845 16,001 - 20,260 2,770 - 22,011 787 7,598 - 6,436 (280,034) - (357,124) 37,660 - 51,494 39,519 - 56,957 (5,637) - (7,573) 319,215 336,427 3,000,724 $ (2,613,006) $ (19,634) $ (2,062,917) 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 30,2025 Fleet Duplicating Employee Information Maintenance Services Benefit Technology Fund Fund Trust Fund Fund Totals Assets Current assets: Cash and cash equivalents $ 7,013,084 $ 139,446 $ 1,128,111 $ 2,292,959 $ 10,573,600 Restricted cash and cash equivalents - - 15,183,894 - 15,183,894 Receivables: Other 591 10,902 - 11,493 Inventory 648,331 - - 648,331 Prepaid items 478,250 327 - 445 479,022 Total current assets 8,140,256 139,773 16,322,907 2,293,404 26,896,340 Capital assets,net of accumulated depreciation 39,316,299 - 6,195,779 45,512,078 Total assets 47,456,555 139,773 16,322,907 8,489,183 72,408,418 Deferred outflows of resources Pension-related 279,380 - 8,011 191,322 478,713 OPEB-related 73,017 - - 32,419 105,436 Total deferred outflows of resources 352,397 - 8,011 223,741 584,149 Liabilities Current liabilities: Accounts payable-trade 537,360 - - 80,699 618,059 Accrued payroll 60,096 - 2,055 52,033 114,184 Accrued vacation and sick leave 186,304 •- 183,607 369,911 Payable to other City funds - 462,283 - 462,283 Estimated health claims payable - 1,106,819 - 1,106,819 Other liabilities - - 18,227 - 18,227 Notes payable-current maturities 865,777 - - 865,777 Subscription liabilities-current maturities - - 119,200 119,200 Total current liabilities 1,649,537 - 1,589,384 435,539 3,674,460 Long-term liabilities: Notes payable,less current maturities 7,505,693 - - - 7,505,693 Subscription liabilities,less current maturities - - 115,457 115,457 Net pension liability 1,097,400 - 31,466 751,512 1,880,378 Net OPEB liability 306,403 - - 136,043 442,446 Total long-term liabilities 8,909,496 - 31,466 1,003,012 9,943,974 Total liabilities 10,559,033 - 1,620,850 1,438,551 13,618,434 Deferred inflows of resources Pension-related 106,253 - 3,047 72,763 182,063 OPEB-related 72,724 - - 32,289 105,013 Total deferred inflows of resources 178,977 - 3,047 105,052 287,076 Net position Net investment in capital assets 30,944,829 - - 5,961,122 36,905,951 Unrestricted 6,126,113 139,773 14,707,021 1,208,199 22,181,106 Total net position $ 37,070,942 $ 139,773 $ 14,707,021 $ 7,169,321 $ 59,087,057 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 30,2025 Fleet Duplicating Employee Information Maintenance Services Benefit Technology Fund Fund Trust Fund Fund Totals Operating revenues: Charges for services $ 13,806,008 $ - $ - $ 4,347,210 $ 18,153,218 Rents,concessions and other 18,000 8,665 1,234,874 20,689 1,282,228 Contributions - 14,618,537 - 14,618,537 Total operating revenues 13,824,008 8,665 15,853,411 4,367,899 34,053,983 Operating expenses: Personnel services 2,219,771 - 52,529 1,572,261 3,844,561 Supplies and materials 3,256,116 - 19,035 259,087 3,534,238 Maintenance and repairs 3,104,678 - - 1,603,305 4,707,983 Utilities and other services 135,376 - 109,541 475,494 720,411 Insurance and contract support 21,371 - 16,470,748 1,890 16,494,009 Other expenses 81,609 - 1,130,185 17,310 1,229,104 Depreciation and amortization 5,953,693 - 1,349,495 7,303,188 Total operating expenses 14,772,614 - 17,782,038 5,278,842 37,833,494 Operating income(loss) (948,606) 8,665 (1,928,627) (910,943) (3,779,511) Nonoperating revenues(expenses): Investment earnings - 1,658,452 1,658,452 Gain(loss)on sale of capital assets 253,620 - - • 253,620 Interest expense (164,430) - (15,582) (180,012) Total nonoperating revenues (expenses) 89,190 - 1,658,452 (15,582) 1,732,060 Income(loss)before transfers (859,416) 8,665 (270,175) (926,525) (2,047,451) Transfers in 8,081,862 - - 6,237 8,088,099 Transfers out (312,000) - - - (312,000) Change in net position 6,910,446 8,665 (270,175) (920,288) 5,728,648 Net position-beginning,as originally stated 30,250,223 131,108 14,977,196 8,444,614 53,803,141 Error correction - - - (249,484) (249,484) Change in accounting principle (89,727) - - (105,521) (195,248) Net position-beginning,as restated 30,160,496 131,108 14,977,196 8,089,609 53,358,409 Net position-ending $ 37,070,942 $ 139,773 $ 14,707,021 $ 7,169,321 $ 59,087,057 93 EXHIBIT E-3 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2025 Fleet Duplicating Employee Information Maintenance Services Benefit Technology Fund Fund Trust Fund Fund Totals Cash flows from operating activities: Received from customers and users $ 300,593 $ - $ 3,425,641 $ • $ 3,726,234 Received from interfund charges 13,523,416 8,665 11,602,589 4,367,899 29,502,569 Other operating receipts - - 822,130 - 822,130 Payments to suppliers (6,414,740) 5,041 (17,933,406) (2,584,461) (26,927,566) Payments for interfund services (570,214) (7,910) - (127,477) (705,601) Payments to employees (1,653,540) (10,636) (47,425) (1,168,475) (2,880,076) Net cash provided by operating activities 5,185,515 (4,840) (2,130,471) 487,486 3,537,690 Cash flows from noncapital financing activities: Transfers in from other funds 8,081,862 - - 6,237 8,088,099 Transfers out to other funds (312,000) - - - (312,000) Net cash provided(used)by noncapital financing activities 7,769,862 - - 6,237 7,776,099 Cash flows from capital and related financing activities: Acquisition of capital assets (10,862,731) - - (317,477) (11,180,208) Proceeds from sale of capital assets 462,240 - - 462,240 Principal paid on long-term debt (850,611) - - (111,621) (962,232) Interest and fees paid on long-term debt (164,430) - - (15,582) (180,012) Net cash used for capital and related financing activities (11,415,532) - (444,680) (11,860,212) Cash flows from investing activities: Income(loss)on investments - - 1,658,452 - 1,658,452 Net cash provided by investing activities - - 1,658,452 - 1,658,452 Net Increase(Decrease)in Cash and Cash Equivalents 1,539,845 (4,840) (472,019) 49,043 1,112,029 Cash and Cash Equivalents-Beginning 5,473,239 144,286 16,784,024 2,243,916 24,645,465 Cash and Cash Equivalents-Ending $ 7,013,084 $ 139,446 $ 16,312,005 $ 2,292,959 5 25,757,494 Cash flows from operating activities: Operating income(loss) $ (948,606) $ 8,665 $ (1,928,627) $ (910,943) $ (3,779,511) Adjustments to reconcile operating income(loss)to net cash provided(used)by operating activities: Depreciation and amortization 5,953,693 - - 1,349,495 7,303,188 (Increase)decrease in assets and deferred outflows: Receivables: Other 1 - (1,306) - (1,305) Inventory 15,400 - - - 15,400 Prepaid items - - - (445) (445) Deferred outflows-pension-related 209,894 3,005 7,779 100,901 321,579 Deferred outflows-OPEB-related (24,780) 392 - (10,850) (35,238) Increase(decrease)in liabilities and deferred inflows: Accounts payable-trade 287,522 (4,500) (110,730) 1,558 173,850 Accrued payroll 10,135 (340) 438 21,573 31,806 Accrued vacation and sick leave (41,856) - - 4,929 (36,927) Estimated health claims payable - - (81,295) - (81,295) Other liabilities - - (1,745) - (1,745) Net pension liability (377,199) (9,057) (16,122) (129,204) (531,582) Net OPEB liability 63,424 (1,975) - 27,394 88,843 Deferred inflows-pension-related 47,059 (364) 1,137 37,409 85,241 Deferred inflows-OPEB-related (9,172) (666) - (4,331) (14,169) Total adjustments 6,134,121 13,505) (201,844) 1,398,429 7,317,201 Net cash provided(used)by operating activities $ 5,185,515 $ (4,840) $ (2,130,471) $ 487,486 5 3,537.690- Noncash capital and financing activities: Capital assets acquired through issuance of notes payable $ - $ - $ - $ $ - 1 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: .tvichita 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 30,2025 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 $ 19,613,692 $ 13,933,915 $ 3,759,070 $ 1,594,306 $ 1,919,832 $ 40,820,815 Receivables: Government agencies 946,431 924,900 - 1,871,331 Other 1,176,021 29,208 - - 1,205,229 Prepaid items - - - - Capital assets,net of accumulated depreciation 12,357,834 16,332,938 - - - 28,690,772 Total assets 34,093,978 31,220,961 3,759,070 1,594,306 1,919,832 72,588,147 Liabilities Accounts payable-trade 35,000 28,750 - - - 63,750 Other liabilities - - - 1,894 - 1,894 Long-term liabilities: Portion due or payable within one year 195,000 485,000 - - 680,000 Portion due or payable after one year 8,983,810 16,580,000 - - 25,563,810 Total liabilities 9,213,810 17,093,750 - 1,894 • 26,309,454 Net position Net investment in capital assets 2,036,858 306,759 - - - 2,343,617 Unrestricted 22,843,310 13,820,452 3,759,070 1,592,412 1,919,832 43,935,076 Total net position $ 24,880,168 $ 14,127,211 $ 3,759,070 $ 1,592,412 $ 1,919,832 $ 46,278,693 95 CITY OF WICHITA FALLS, TEXAS COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS FOR THE YEAR ENDED SEPTEMBER 30,2025 Program Revenues Operating Grants and Expenses Contributions Community development Wichita Falls Economic Development Corporation $ 8,947,064 $ - Wichita Falls 4B Sales Tax Corporation 7,455,012 719,047 Wichita Falls Reinvestment Zone#2 1,176,584 - Wichita Falls Reinvestment Zone#3 - - Wichita Falls Reinvestment Zone#4 - - Total component units $ 17,578,660 $ 719,047 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 $ (8,947,064) $ - $ - $ - $ - $ (8,947,064) - (6,735,965) - - (6,735,965) - - (1,176,584) - (1,176,584) (8,947,064) (6,735,965) (1,176,584) - - (16,859,613) 838,703 170,255 412,228 1,421,186 5,258,905 5,258,905 - 10,517,810 1,159,159 892,536 83,178 75,371 18,309 2,228,553 1,791,691 - - - - 1,791,691 8,209,755 6,151,441 921,881 245,626 430,537 15,959,240 (737,309) (584,524) (254,703) 245,626 430,537 (900,373) 25,617,477 14,711,735 4,013,773 1,346,786 1,489,295 47,179,066 $ 24,880,168 $ 14,127,211 $ 3,759,070 $ 1,592,412 $ 1,919,832 $ 46,278,693 SUPPORTING SCHEDULES CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES SEPTEMBER 30,2025 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 2026 $ 3,020,000 $ 797,927 $ 3,817,927 $ 2,750,000 $ 767,059 $ 3,517,059 2027 2,380,000 669,347 3,049,347 2,120,000 695,271 2,815,271 2028 2,450,000 594,991 3,044,991 2,165,000 647,044 2,812,044 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 - - - - S 23,075,000 $ 4,755,956 $ 27,830,956 $ 34,020,000 $ 6,506,205 $ 40,526,205 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 $ 9,765,000 $ 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 1,580,968 8,575,968 65,000 92,200 157,200 4,680,000 1,334,235 6,014,235 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 13 5,000 17,200 15 2,200 13 5,000 17,200 15 2,200 145,000 11,800 15 6,800 145,000 11,800 15 6,800 150,000 6,000 156,000 150,000 6,000 156,000 $ 14,565,000 $ 2,180,750 $ 16,745,750 $ 71,660,000 $ 13,442,911 $ 85,102,911 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE SEPTEMBER 30,2025 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 $ 8,545,000 $ 1,105,000 2,885,000 2,885,000 2,575,000 310,000 16,345,000 16,345,000 4,340,000 12,005,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONTD.) SEPTEMBER 30,2025 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 2018E (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 3,435,000 2,735,000 7,595,000 7,595,000 1,755,000 5,840,000 1,675,000 1,675,000 595,000 1,080,000 44,320,000 44,320,000 21,245,000 23,075,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2025 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 10,420,000 9,455,000 13,000,000 13,000,000 12,325,000 675,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2025 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 9,655,000 23,890,000 66,420,000 66,420,000 32,400,000 34,020,000 74,005,000 74,005,000 61,865,000 12,140,000 CITY OF WICHITA FALLS, TEXAS COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.) SEPTEMBER 30,2025 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 2,680,000 255,000 2,425,000 76,685,000 76,685,000 62,120,000 14,565,000 $ 187,425,000 $ 187,425,000 $ 115,765,000 $ 71,660,000 EXHIBIT G-3 CITY OF WICHITA FALLS, TEXAS DEBT SERVICE COVERAGE - REVENUE BONDS SEPTEMBER 30, 2025 Water and Sewer Revenue Bonds: Change in net position (Exhibit A-8) $ 10,971,671 Add: Depreciation and amortization $ 9,650,032 Interest expense and paying agent fees 1,728,362 Transfers out 2,910,670 14,289,064 Subtract: West Texas Utilities water revenues 500,000 Gain (loss)on sale/abandonment of capital assets 22,515 Capital contributions from developers 1,178,123 Transfers in - (1,700,638) Net earnings for determining debt service coverage $ 23,560,097 Priority Subordinate Lien Bonds Lien Bonds Net earnings for determining debt service coverage $ 23,560,097 Principal and interest requirements to maturity $ 12,868,750 $ - Number of years remaining to pay bonds 2 N/A Average annual principal and interest requirement 6,434,375 N/A Minimum bond covenant debt service coverage 1.25 1.10 Minimum debt service coverage requirement $ 8,042,969 $ - 8,042,969 Excess over debt service coverage requirements $ 15,517,128 103 CITY OF WICHITA FALLS, TEXAS CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY SEPTEMBER 30,2025 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 4,980,955 844,329 General Public Information - 693,348 229,892 Building Maintenance - 2,770,246 136,877 Nondepa rtmental 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 11,357,040 2,059,716 Police 1,131,749 10,231,507 16,199,535 Fire 190,565 7,051,522 1,383,002 Parks and recreation: Recreation 7,776,101 1,880,631 235,519 Park maintenance 4,719,322 731,505 149,328 Trails - - - Cemetery 141,685 - 6,448 Lake Wichita Revitalization-Boardwalk 3,504,892 - - Lynwood Community Center - 214,895 - Total parks and recreation 16,142,000 2,827,031 391,295 Accounting/finance: Information Systems - - 15,384,679 Total accounting/finance - 15,384,679 Development services: Planning - - 20,438 Inspection - 1,360 Property management 10,739,072 420,891 9,275 Section 8 housing - - 47,274 Hazard Mitigation grant 170,800 - Total community development 10,909,872 420,891 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 3,066,352 342,842 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 7,182,325 494,553 Traffic and transportation - 31,045 149,062 Multi-Purpose Events Center 9,560,210 45,157,533 1,038,847 Wichita Falls Business Park 1,099,507 - - Total capital assets used in the operation of governmental funds $ 45,639,817 $ 84,420,950 $ 37,392,871 104 EXHIBIT G-4 Furniture and Right-to-Use Subscription Construction Fixtures Leased Assets Assets Infrastructure in Progress Totals $ 5,218 $ - $ - $ - $ - $ 5,218 13,644 - - - - 281,562 4,660 - - - - 7,623 - - - - 749,447 73,266 - - • - 6,376,492 3,184 - - - 926,424 - 2,907,123 24,500 537,098 - 616,770 • - 1,518 - 584,968 - 2,271 - 5,107,378 - - - 13,401,572 13,401,572 99,972 - - 13,426,072 31,505,464 8,759 1,430,641 67,040 25,889 29,095,120 - - - - 8,625,089 - - - - 9,892,251 - - - - 5,600,155 - - - 127,713 127,713 - - - - - 148,133 - - - - - 3,504,892 - - - - - 214,895 - - - - 127,713 19,488,039 - - 827,994 - - 16,212,673 - - 827,994 - - 16,212,673 - - - • - 20,438 - - - - 1,360 • 437,800 11,607,038 - - 47,274 - - - 170,800 - - - • 437,800 11,846,910 - 245,177 - - - - 546,364 - - • 214,444,552 4,903,081 220,713,265 - - 214,444,552 4,903,081 221,504,806 - - 237,789 - 119,356 3,801,159 87,642 - - - - 69,596 - - - - 45,235 - - - - 4,292,359 - 237,789 • 119,356 8,295,991 - - 16,758,041 - 16,938,148 28,953 - 73,405 • 23,251 55,882,199 - - - • - 1,099,507 $ 137,684 $ 1,430,641 $ 1,206,228 $ 231,202,593 $ 19,063,162 $420,493,946 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 30,2025 Beginning Ending Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Administrative services: Mayor and City Council 5 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 5,911,439 465,053 - 6,376,492 General Public Information 926,424 - - 926,424 Building Maintenance 2,907,123 - - 2,907,123 Nondepartmental 512,598 24,500 - 537,098 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 8,732,366 - 13,401,572 Total administrative services 22,283,545 9,221,919 - 31,505,464 Police 28,731,085 364,035 - 29,095,120 Fire 8,625,089 - - 8,625,089 Parks and recreation: Recreation 5,992,906 3,899,345 - 9,892,251 Park maintenance 5,383,970 216,185 5,600,155 Trails 127,713 - 127,713 Cemetery 148,133 - 148,133 Lake Wichita Revitalization 3,504,892 3,504,892 Lynwood Community Center 214,895 • - 214,895 Total parks and recreation 15,244,796 4,243,243 - 1-9,488,039 Accounting/finance: Information Systems 15,895,201 317,472 16,212,673 Total accounting/finance 15,895,201 317,472 16,212,673 Development services: Planning 20,438 20,438 Inspection 1,360 - 1,360 Property management 11,157,490 449,548 11,607,038 Section 8 Housing 47,274 - 47,274 Hazard Mitigation Grant 170,800 - 170,800 Total community development 11,397,362 449,548 - 11,846,910 Public works: Engineering 245,177 245,177 Street maintenance 546,364 - 546,364 Infrastructure 214,474,559 6,238,706 - 220,713,265 Total public works 215,266,100 6,238,706 - 221,504,806 Health: Administration 3,784,931 16,228 - 3,801,159 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 8,279,763 16,228 - 8,295,991 Traffic and transportation 16,891,614 46,534 16,938,148 Multi-Purpose Events Center 55,489,074 393,125 55,882,199 Wichita Falls Business Park 1,099,507 - 1,099,507 Total capital assets $ 399,203,136 $ 21,290,810 $ $ 420,493,946 105 EXHIBIT G-6 CITY OF WICHITA FALLS, TEXAS REGIONAL AIRPORT FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Land and betterments $ 20,491,656 $ - $ - $ 20,491,656 Buildings and improvements 34,322,705 - - 34,322,705 Machinery and equipment 247,609 129,715 - 377,324 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 59,449,668 129,715 - 59,579,383 Accumulated Depreciation: Land and betterments 8,510,571 841,394 - 9,351,965 Buildings and improvements 6,795,909 695,235 7,491,144 Machinery and equipment 165,746 38,591 - 204,337 Furniture and fixtures 12,830 - - 12,830 Right-to-use leased assets 954,453 62,587 - 1,017,040 Infrastructure 78,486 17,503 95,989 Total accumulated depreciation 16,517,995 1,655,310 - 18,173,305 Net capital assets $ 42,931,673 $ (1,525,595) $ - $41,406,078 106 EXHIBIT G-7 CITY OF WICHITA FALLS, TEXAS KICKAPOO AIRPORT FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30,2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 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 5,093,920 356,411 5,450,331 Buildings and improvements 1,868,122 136,623 - 2,004,745 Machinery and equipment 571,264 11,831 583,095 Total accumulated depreciation 7,533,306 504,865 - 8,038,171 Net capital assets $ 10,781,142 $ (504,865) $ - $ 10,276,277 107 EXHIBIT G-8 CITY OF WICHITA FALLS, TEXAS TRANSIT FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Land and betterments $ 2,001,247 $ - $ - $ 2,001,247 Buildings and improvements 17,604,543 - - 17,604,543 Machinery and equipment 564,205 29,190 - 593,395 Total capital assets 20,169,995 29,190 - 20,199,185 Accumulated Depreciation: Land and betterments 121,316 10,748 - 132,064 Buildings and improvements 2,168,221 384,957 - 2,553,178 Machinery and equipment 513,519 13,274 - 526,793 Total accumulated depreciation 2,803,056 408,979 - 3,212,035 Net capital assets $ 17,366,939 $ (379,789) $ - $ 16,987,150 108 EXHIBIT G-9 CITY OF WICHITA FALLS, TEXAS STORMWATER DRAINAGE FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Drainage $ 33,022,416 $ - $ - $ 33,022,416 Land and betterments 686,528 - - 686,528 Systems and improvements - 149,933 - 149,933 Machinery and equipment 60,395 - - 60,395 Construction in progress 3,257,119 3,249,011 - 6,506,130 Total capital assets 37,026,458 3,398,944 - 40,425,402 Accumulated Depreciation: Drainage 4,518,018 437,172 - 4,955,190 Land betterments 65,309 6,567 - 71,876 Machinery and equipment 50,796 - - 50,796 Total accumulated depreciation 4,634,123 443,739 - 5,077,862 Net capital assets $ 32,392,335 $ 2,955,205 $ - $ 35,347,540 109 EXHIBIT G-10 CITY OF WICHITA FALLS, TEXAS SANITATION FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Land and betterments $ 10,109,948 $ 253,826 $ - $ 10,363,774 Buildings and improvements 4,689,760 196,875 - 4,886,635 Machinery and equipment 1,046,767 448,669 - 1,495,436 Construction in progress 312,448 312,448 - Total capital assets 16,158,923 899,370 312,448 16,745,845 Accumulated Depreciation: Land and betterments 2,440,109 194,842 - 2,634,951 Buildings and improvements 2,320,674 229,104 - 2,549,778 Machinery and equipment 647,367 76,871 - 724,238 Total accumulated depreciation 5,408,150 500,817 - 5,908,967 Net capital assets $ 10,750,773 $ 398,553 $ 312,448 $ 10,836,878 110 EXHIBIT G-11 CITY OF WICHITA FALLS, TEXAS WATER AND SEWER FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30,2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Land and betterments $ 24,349,958 $ - $ $ 24,349,958 Buildings, systems and improvements 419,363,826 11,890,562 431,254,388 Machinery and equipment 7,560,831 659,637 - 8,220,468 Furniture and fixtures 1,164 - 1,164 Construction in progress 7,238,977 674,702 6,839,948 1,073,731 Total capital assets 458,514,756 13,224,901 6,839,948 464,899,709 Accumulated Deprcx:iation: Land and betterments 12,953,888 247,225 13,201,113 Buildings, systems and improvements 178,586,645 8,776,786 • 187,363,431 Machinery and equipment 6,119,311 626,021 - 6,745,332 Furniture and fixtures 1,164 - 1,164 Total accumulated depreciation 197,661,008 9,650,032 207,311,040 Net capital assets S 260,853,748 5 3,574,869 S 6,839,948 5 257,588,669 111 EXHIBIT G-12 CITY OF WICHITA FALLS, TEXAS WATERPARK FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30,2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Land and betterments $ 389,894 $ - $ $ 389,894 Buildings and improvements 4,641,246 - 4,641,246 Machinery and equipment 993,497 1,199,514 - 2,193,011 Total capital assets 6,024,637 1,199,514 - 7,224,151 Accumulated Depreciation: Buildings and improvements 3,115,364 227,059 - 3,342,423 Machinery and equipment 316,698 200,906 • 517,604 Total accumulated depreciation 3,432,062 427,965 • 3,860,027 Net capital assets $ 2,592,575 5 771,549 $ - $ 3,364,124 112 EXHIBIT G-13 CITY OF WICHITA FALLS, TEXAS FLEET MAINTENANCE FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Land and betterments $ 436,269 $ - $ - $ 436,269 Buildings and improvements 4,855,820 41,524 4,897,344 Machinery and equipment 1,670,786 58,871 - 1,729,657 Furniture and fixtures 2,950 - 2,950 Motor vehicles 91,348,966 10,762,336 3,844,103 98,267,199 Construction in progress 62,609 - - 62,609 Total capital assets 98,377,400 10,862,731 3,844,103 105,396,028 Accumulated Depreciation: Land and betterments 2,611 - - 2,611 Buildings and improvements 3,492,551 92,355 - 3,584,906 Machinery and equipment 1,630,570 15,347 1,645,917 Furniture and fixtures 2,950 - - 2,950 Motor vehicles 58,632,836 5,845,991 3,635,482 60,843,345 Total accumulated depreciation 63,761,518 5,953,693 3,635,482 66,079,729 Net capital assets $ 34,615,882 $ 4,909,038 $ 208,621 $ 39,316,299 113 EXHIBIT G-14 CITY OF WICHITA FALLS, TEXAS DUPLICATING SERVICES FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Machinery and equipment $ 9,117 $ - $ - $ 9,117 Accumulated Depreciation: Machinery and equipment 9,117 - - 9,117 Net capital assets S - S - S - 5 - 114 EXHIBIT G-15 CITY OF WICHITA FALLS, TEXAS INFORMATION TECHNOLOGY FUND CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Machinery and equipment $ 14,377,112 $ 317,477 $ - $ 14,694,589 Subscription assets 827,994 - - 827,994 Total capital assets 15,205,106 317,477 - 15,522,583 Accumulated Depreciation: Machinery and equipment 7,449,542 1,244,258 - 8,693,800 Subscription assets 527,767 105,237 - 633,004 Total accumulated depreciation 7,977,309 1,349,495 - 9,326,804 Net capital assets $ 7,227,797 $ (1,032,018) $ - $ 6,195,779 115 EXHIBIT G-16 CITY OF WICHITA FALLS, TEXAS WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Land and betterments $ 1,177,156 $ $ 149,927 $ 1,027,229 Buildings and improvements 6,028,915 - - 6,028,915 Construction in progress 2,871,193 2,799,155 - 5,670,348 Total capital assets 10,077,264 2,799,155 149,927 12,726,492 Accumulated Depreciation: Buildings and improvements 214,945 153,713 - 368,658 Net capital assets $ 9,862,319 $ 2,645,442 $ 149,927 $ 12,357,834 116 EXHIBIT G-17 CITY OF WICHITA FALLS, TEXAS WICHITA FALLS 4B SALES TAX CORPORATION CAPITAL ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED SEPTEMBER 30, 2025 Balance Balance 10/1/2024 Additions Deletions 9/30/2025 Capital Assets: Buildings and improvements $ 17,311,310 $ $ - $ 17,311,310 Machinery and equipment 216,851 - - 216,851 Total capital assets 17,528,161 - 17,528,161 Accumulated Depreciation: Buildings and improvements 577,044 603,531 - 1,180,575 Machinery and equipment 7,228 7,420 - 14,648 Total accumulated depreciation 584,272 610,951 - 1,195,223 Net capital assets $ 16,943,889 $ (610,951) $ $ 16,332,938 117 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) 2015-2016 2016-2017 2017-2018 2018-2019 Governmental activities Net investment in capital assets $ 148,206,829 $ 150,776,165 $ 150,833,699 $ 152,824,700 Restricted 4,468,638 5,497,793 5,626,033 5,974,408 Unrestricted (64,279,354) (68,466,161) (81,755,666) (85,423,347) Total governmental activities net position $ 88,396,113 $ 87,807,797 $ 74,704,066 $ 73,375,761 Business-type activities Net investment in capital assets $ 236,074,244 $ 250,154,417 $ 254,487,928 $ 264,868,493 Restricted 11,082,332 11,046,973 11,571,092 11,780,255 Unrestricted 31,265,371 27,573,458 35,237,418 37,715,916 Total business-type activities net position S 278,421.9,19 $ 288,774,848 $ 301,296,438 $ 314,364,664 Primary government Net investment in capital assets $ 384,281,073 $ 400,930,582 $ 405,321,627 $ 417,693,193 Restricted 15,550,970 16,544,766 17,197,125 17,754,663 Unrestricted (33,013,981) (40,892,703) (46,518,248) (47,707,431) Total primary government net position $ 366,818,062 $ 376,582,645 $ 376,000,504 $ 387,740,425 118 EXHIBIT H-1 Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 $ 155,903,407 $ 160,441,794 $ 160,339,899 $ 170,463,853 $ 178,714,840 $ 193,427,811 6,632,804 7,260,262 9,812,139 11,201,687 14,111,253 15,146,320 (94,509,218) (85,096,370) (70,492,162) (70,135,236) (68,343,604) (74,388,150) $ 68,026,993 $ 82,605,686 $ 99,659,876 $ 111,530,304 $ 124,482,489 $ 134,185,981 $ 270,540,608 $ 293,604,354 $ 309,284,549 $ 323,219,696 $ 336,375,288 $ 352,550,816 12,008,946 11,836,811 11,840,406 12,395,127 12,817,592 13,421,380 47,578,892 45,447,623 53,612,672 57,082,234 59,570,047 60,371,368 $ 330,128,446 $ 350,888,788 $ 374,737,627 $ 392,697,057 $ 408,762,927 $ 426,343,564 $ 426,444,015 $ 454,046,148 $ 469,624,448 $ 493,683,549 $ 515,090,128 $ 545,978,627 18,641,750 19,097,073 21,652,545 23,596,814 26,928,845 28,567,700 (46,930,326) (39,648,747) (16,879,490) (13,053,002) (8,773,557) (14,016,782) $ 398,155,439 $ 433,494,474 $ 474,397,503 $ 504,227,361 $ 533,245,416 $ 560,529,545 CITY OF WICHITA FALLS, TEXAS CHANGES IN NET POSITION LAST TEN FISCAL YEARS (UNAUDITED) 2015-2016 2016-2017 2017-2018 2018-2019 Expenses Governmental activities: Administrative services $ 14,235,870 $ 15,198,841 $ 16,029,050 $ 15,853,414 Police 25,633,843 25,513,220 25,046,425 27,736,316 Fire 17,476,759 21,107,882 24,205,615 21,059,239 Parks and recreation 5,637,654 5,655,633 5,484,893 5,995,353 Accounting/finance 787,945 760,506 663,516 785,465 Community development 6,681,803 6,902,628 6,579,677 7,253,122 Public works 8,334,993 8,551,971 8,563,442 8,533,518 Health 5,707,386 5,814,947 5,798,759 5,964,161 Traffic and transportation 2,667,418 2,579,284 2,383,760 2,951,269 Multi-Purpose Events Center 4,544,817 4,021,413 3,250,928 3,126,421 Interest and fees on long-term debt 1,631,355 1,443,552 1,556,402 1,780,418 Total governmental activities expenses 93,339,843 97,549,877 99,562,467 101,038,696 Business-type activities: Municipal Airport 1,881,055 1,827,618 1,907,909 2,014,903 Kickapoo Airport 1,252,359 1,198,823 1,259,413 1,451,976 Transit 2,673,176 2,540,427 2,377,201 2,622,657 Sanitation 9,841,683 10,216,686 10,300,771 11,407,943 Water and Sewer 32,120,018 33,288,819 33,426,850 33,564,147 Stormwater drainage 828,537 816,334 796,597 785,974 Waterpark 1,598,720 1,538,193 1,591,560 1,599,828 Total business-type activities expenses 50,195,548 51,426,900 51,660,301 53,447,428 Total primary government expenses $ 143,535,391 $ 148,976,777 $ 151,222,768 $ 154,486,124 Program Revenues Governmental activities: Charges for services: Administrative services $ 4,270,749 $ 4,735,471 $ 4,501,100 $ 4,657,529 Police 335,112 420,289 338,223 288,280 Fire 1,749 36,937 39,598 85,627 Parks and recreation 429,207 441,751 393,227 355,005 Accounting/finance - - - Development services 1,101,085 1,209,021 1,233,431 1,419,097 Public works 11,824 14,223 10,869 7,511 Health 1,051,834 1,081,910 1,110,658 1,126,273 Traffic and transportation 72,965 126,334 122,384 121,251 Multi-Purpose Events Center 1,561,783 892,049 10,872 Operating grants and contributions 14,803,477 14,934,929 12,437,104 12,908,026 Capital grants and contributions 3,942,929 1,032,502 4,296,164 60,000 Total governmental activities program revenues 27,582,714 24,925,416 24,493,630 21,028,599 119 EXHIBIT H-2 (Page 1 of 2) Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 $ 15,623,435 $ 16,023,333 $ 16,701,365 $ 19,214,246 $ 20,263,581 $ 21,531,912 34,225,996 26,119,364 25,454,226 30,331,586 31,202,927 36,027,347 26,796,338 26,145,244 22,599,594 25,908,574 25,483,398 27,002,868 6,057,586 5,134,632 5,810,019 6,554,341 7,415,430 8,678,216 1,004,472 759,671 722,292 1,061,629 1,109,393 2,460,135 7,586,750 6,955,276 7,498,256 10,261,349 8,402,052 9,080,011 8,708,349 7,894,812 8,620,682 9,329,189 10,628,459 10,765,228 6,630,232 6,229,228 7,065,470 7,585,313 7,550,956 8,000,124 3,255,742 2,412,555 3,076,440 3,265,753 4,195,482 3,790,321 2,791,731 2,848,607 5,134,193 6,049,052 5,177,255 5,951,703 1,607,429 1,695,662 1,455,563 1,306,918 1,214,911 1,102,345 114,288,060 102,218,384 104,138,100 120,867,950 122,643,844 134,390,210 2,097,484 2,753,360 2,929,361 3,041,535 3,055,752 3,160,887 1,282,322 1,185,924 1,642,866 1,549,000 1,581,879 1,631,043 2,552,634 2,254,674 3,123,714 3,377,663 3,431,762 3,388,581 11,727,774 10,138,273 10,857,203 11,688,957 13,787,413 13,644,374 34,893,459 33,126,472 33,728,464 39,661,150 39,813,704 40,086,491 864,517 1,137,854 1,147,940 1,118,252 1,037,049 1,187,465 1,494,829 1,605,187 1,681,431 1,880,642 1,938,552 2,126,250 54,913,019 52,201,744 55,110,979 62,317,199 64,646,111 65,225,091 $ 169,201,079 $ 154,420,128 $ 159,249,079 $ 183,185,149 $ 187,289,955 $ 199,615,301 $ 4,325,538 $ 6,858,710 $ 5,556,508 $ 5,679,417 $ 5,542,717 $ 2,540,887 311,390 263,904 393,772 815,908 321,523 321,378 43,306 106 60,360 63,790 90,273 114,372 293,275 263,101 334,990 417,761 471,058 526,398 - - - 3,360,452 1,426,440 1,549,609 2,231,598 2,170,065 1,825,332 2,163,757 17,999 5,839 39,213 4,014 13,075 3,853 1,107,601 1,132,205 1,131,018 1,134,133 1,122,976 1,148,117 113,048 153,560 109,655 174,841 186,392 143,909 3,482 44,326 1,705,277 2,170,634 2,101,233 2,176,851 21,239,893 17,665,897 17,045,852 22,509,058 18,749,066 20,063,900 1,996,829 1,876,048 1,451,564 3,689,321 9,324,931 28,881,972 29,934,086 30,484,291 36,591,185 34,112,966 41,888,805 CITY OF WICHITA FALLS, TEXAS CHANGES IN NET POSITION (CONT'D.) LAST TEN FISCAL YEARS(UNAUDITED) 2015-2016 2016-2017 2017-2018 2018-2019 Business-type activities: Charges for services: Regional Airport 1,109,959 1,120,916 1,178,304 1,165,060 Kickapoo Airport 970,129 884,354 924,673 944,394 Transit 503,708 432,083 431,419 498,808 Sanitation 13,223,470 13,394,186 13,701,215 14,776,821 Water and Sewer 42,999,399 43,527,980 46,225,281 44,464,193 Stormwater drainage 3,703,803 3,738,019 3,728,335 3,730,485 Waterpark 1,437,615 1,321,622 1,501,475 1,425,913 Operating grants and contributions 2,282,163 1,701,652 3,938,011 4,857,917 Capital grants and contributions 209,110 396,830 876,211 89,890 Total business-type activities program revenues 66,439,356 66,517,642 72,504,924 71,953,481 Total primary government program revenues $ 94,022,070 $ 91,443,058 $ 96,998,554 $ 92,982,080 Net(Expense)/Revenue Governmental activities $ (65,757,129) $ (72,624,461) $ (75,068,837) $ (80,010,097) Business-type activities 16,243,808 15,090,742 20,844,623 18,506,053 Total primary government net expense $ (49,513,321) $ (57,533,719) $ (54,224,214) $ (61,504,044) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property tax $ 34,515,164 $ 35,120,896 $ 35,842,110 $ 37,898,136 Sales tax 22,373,768 22,413,397 23,861,013 24,894,930 Franchise fees 5,038,247 5,193,721 5,326,403 5,314,591 Hotel occupancy tax 1,910,468 1,878,061 1,952,011 2,075,905 Beverage tax 286,986 281,687 308,333 328,163 Investment earnings 129,886 303,325 625,368 1,375,504 Miscellaneous 474,093 1,660,889 499,060 341,079 Transfers 2,003,892 5,184,169 4,611,766 6,453,485_ Total governmental activities 66,732,504 72,036,145 73,026,064 78,681,793 Business-type activities: Investment earnings 175,860 415,837 748,434 1,005,000 Miscellaneous 60,331 22,028 89,332 10,654 Transfers (2,003,892) (5,184,169) (4,611,766) (6,453,485) Total business-type activities (1,767,701) (4,746,304) (3,774,000) (5,437,831) Total primary government $ 64,964,803 $ 67,289,841 $ 69,252,064 $ 73,243,962 Change in Net Position Governmental activities $ 975,375 $ (588,316) $ (2,042,773) $ (1,328,304) Business-type activities 14,476,107 10,344,438 17,070,623 13,068,222 Total primary government $ 15,451,482 $ 9,756,122 $ 15,027,850 $ 11,739,918 120 EXHIBIT H-2 (Page 2 of 2) Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 868,429 1,511,517 1,921,572 1,919,173 1,761,288 1,963,306 765,536 757,246 1,127,421 1,080,143 1,110,856 1,139,913 405,969 611,213 538,637 486,204 663,889 555,407 15,192,130 16,154,115 16,901,006 17,208,729 18,578,954 19,505,325 46,673,593 45,810,693 50,122,232 50,034,772 52,793,725 52,568,389 3,787,383 3,706,349 3,751,220 3,755,677 3,767,887 3,791,664 1,271,508 1,779,308 1,677,399 1,904,398 1,784,687 1,770,189 5,738,059 8,223,555 4,311,198 4,605,539 2,346,732 3,434,358 727,961 874,423 3,047,912 2,274,480 1,107,267 1,178,123 75,430,568 79,428,419 83,398,597 83,269,115 83,915,285 85,906,674 $ 104,312,540 $ 109,362,505 $ 113,882,888 $ 119,860,300 $ 118,028,251 $ 127,795,479 $ (85,406,088) $ (72,284,298) $ (73,653,809) $ (84,276,765) $ (88,530,878) $ (92,501,405) 20,517,549 27,226,675 28,287,618 20,951,916 19,269,174 20,681,583 $ (64,888,539) $ (45,057,623) $ (45,366,191) $ (63,324,849) $ (69,261,704) $ (71,819,822) $ 41,399,096 $ 43,019,695 $ 45,229,447 $ 46,719,098 $ 50,166,104 $ 53,736,357 25,205,996 28,362,467 31,099,772 30,988,808 30,656,869 31,552,997 5,164,750 5,451,658 5,681,541 5,911,738 5,523,727 5,601,741 1,878,957 2,660,388 2,873,908 2,956,265 3,025,700 2,804,065 255,816 309,857 359,797 376,230 369,980 364,368 581,802 47,531 679,311 5,295,711 6,103,382 4,677,595 525,007 521,187 566,004 942,581 841,076 919,192 5,045,896 6,490,207 4,045,947 3,008,234 5,251,416 3,821,815 80,057,320 86,862,990 90,535,727 96,198,665 101,938,254 103,478,130 371,124 23,871 236,378 1,652,400 2,046,798 1,789,073 (1,858) - 2,099 29,101 1,310 28,006 (5,045,896) (6,490,207) (4,045,947) (3,008,234) (5,251,416) (3,821,815) (4,676,630) (6,466,336) (3,807,470) (1,326,733) (3,203,308) (2,004,736) $ 75,380,690 $ 80,396,654 $ 86,728,257 $ 94,871,932 $ 98,734,946 $ 101,473,394 $ (5,348,768) $ 14,578,692 $ 16,881,918 $ 11,921,900 $ 13,407,376 $ 10,976,725 15,840,919 20,760,339 24,480,148 19,625,183 16,065,866 18,676,847 $ 10,492,151 $ 35,339,031 $ 41,362,066 $ 31,547,083 $ 29,473,242 $ 29,653,572 CITY OF WICHITA FALLS, TEXAS FUND BALANCES,GOVERNMENTAL FUNDS- LAST TEN FISCAL YEARS(UNAUDITED) 2015-2016 2016-2017 2017-2018 2018-2019 General Fund Nonspendable $ 157,494 $ 131,311 $ 309,042 $ 359,446 Assigned 878,314 1,059,850 964,114 - Unassigned 13,161,690 13,138,307 14,133,369 18,310,378 Total general fund $ 14,197,498 $ 14,329,468 $ 15,406,525 $ 18,669,824 All other Governmental Funds Nonspendable $ 84,013 $ - $ - $ 1,822 Restricted 5,729,434 5,617,402 23,075,586 21,903,321 Committed 2,694,718 2,670,133 2,208,977 2,865,289 Unassigned (773,238) (1,224,316) (904,338) (994,338) Total all other governmental funds $ 7,734,927 $ 7,063,219 $ 24,380,225 $ 23,776,094 121 EXHIBIT H-3 Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 $ 383,596 $ 251,665 $ 328,907 $ 649,684 $ 422,061 $ 924,757 26,955,178 37,181,391 45,732,320 48,015,435 50,432,693 48,410,691 $ 27,338,774 $ 37,433,056 $ 46,061,227 $ 48,665,119 $ 50,854,754 $ 49,335,448 $ - $ 1,470,561 $ 1,639,863 $ 2,597,356 $ 2,874,619 $ 3,131,394 16,435,498 16,582,041 13,764,738 12,212,135 15,203,776 14,822,515 2,495,627 2,380,635 3,210,175 3,184,286 3,472,787 4,066,185 (994,338) (779,966) (86,381) (151,813) (233,456) (443,918) $ 17,936,787 $ 19,653,271 $ 18,528,395 $ 17,841,964 $ 21,317,726 $ 21,576,176 CITY OF WICHITA FALLS, TEXAS CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS- LAST TEN FISCAL YEARS(UNAUDITED) 2015-2016 2016-2017 2017-2018 2018-2019 Revenues Taxes $ 64,201,677 $ 64,886,137 $ 67,254,892 $ 70,389,292 Charges for services 3,370,573 3,340,750 3,339,743 3,426,222 Licenses and permits 1,971,212 1,905,507 1,963,353 2,080,203 Fines and forfeitures 2,561,817 2,795,215 2,757,216 2,833,785 Intergovernmental revenue 13,537,869 10,833,921 9,112,281 8,738,383 Contributions 5,208,537 5,133,510 4,324,823 4,169,643 Miscellaneous revenue 3,120,633 4,239,955 2,499,916 3,274,916 Total revenues 93,972,318 93,134,995 91,252,224 94,912,444 Expenditures Administrative services 14,805,672 14,870,206 14,778,947 15,235,739 Police 23,580,992 23,883,109 24,205,161 25,064,950 Fire 16,077,272 16,536,044 16,896,863 16,891,819 Parks and recreation 5,204,296 5,277,544 5,287,117 5,423,148 Accounting/finance 702,883 719,865 701,643 753,748 Community development 6,678,753 6,931,301 6,685,328 7,119,550 Public works 5,555,929 5,732,327 5,511,044 5,302,692 Health 5,483,135 5,649,913 5,793,866 5,645,601 Traffic and transportation 2,224,511 2,117,966 2,113,558 2,362,089 Multi-Purpose Events Center 3,718,058 3,231,913 2,415,875 2,286,621 Capital outlay* 6,343,551 6,206,493 5,628,992 7,888,964 Debt service-principal 3,745,000 3,525,000 3,610,000 4,000,000 Debt service-interest 1,764,412 1,591,022 1,597,143 1,912,443 Debt service-bond issuance costs - - - Total expenditures 95,884,464 96,272,703 95,225,537 99,887,364 Excess of revenues over(under) expenditures (1,912,146) (3,137,708) (3,973,313) (4,974,920) Other Financing Sources(Uses) Proceeds from bonds 13,482,256 - 24,171,317 - Issuance of notes payable (13,295,568) - 3,310,009 - Issuance of subscription liabilities - - - Payment to refunded bonds escrow agent - (6,546,898) - Transfers in 7,574,334 8,965,770 8,722,620 8,033,886 Transfer out (6,961,378) (6,367,674) (4,393,890) (3,295,594) Total other financing sources(uses) 799,644 2,598,096 25,263,158 4,738,292 Net change in fund balances $ (1,112,502) $ (539,612) $ 21,289,845 $ (236,628) Debt service as a percentage of noncapital expenditures 6.15% 5.68% 5.81% 6.43% * Some miscellaneous costs (labor, etc)from other departments are also included as capital additions. 122 EXHIBIT H-4 Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 $ 73,868,498 $ 79,855,276 $ 85,201,256 $ 86,776,370 $ 89,661,409 $ 93,980,249 3,399,064 3,701,539 3,628,485 3,875,847 4,054,112 4,030,926 1,737,778 1,631,602 2,303,431 2,016,267 1,861,123 1,896,041 1,798,401 2,435,469 2,667,978 3,728,902 3,562,866 3,628,709 17,514,038 14,647,769 13,991,338 19,323,854 19,096,646 23,421,299 3,725,855 3,022,874 3,054,514 2,796,604 2,893,986 5,967,532 3,093,988 4,420,330 5,918,640 10,959,685 11,027,752 10,356,084 105,137,622 109,714,859 116,765,642 129,477,529 132,157,894 143,280,840 14,394,187 16,644,153 16,735,288 17,978,073 18,387,773 30,200,498 27,416,198 27,380,379 28,178,657 29,904,433 31,929,167 35,381,985 17,740,642 18,402,915 19,216,297 20,972,473 22,046,971 24,644,948 5,314,741 5,081,829 5,775,749 6,442,448 7,192,658 11,951,918 845,894 853,221 849,276 1,057,534 1,191,878 2,440,324 7,081,495 7,262,275 7,949,102 10,304,073 8,737,674 9,084,674 5,411,047 4,796,841 5,412,349 5,793,264 6,433,371 9,706,077 5,685,128 6,499,796 7,523,335 7,397,026 7,845,457 7,986,008 2,573,962 2,226,382 2,673,643 2,798,352 3,399,346 3,789,808 1,940,870 2,064,199 4,295,907 5,327,942 4,462,383 4,709,243 11,290,435 7,417,749 8,267,619 16,051,010 10,901,063 1,433,457 4,045,000 4,215,000 3,613,482 3,721,606 3,866,606 3,992,544 1,877,363 1,821,451 1,651,608 1,533,392 1,405,349 1,277,302 103,139 83,463 - - 105,616,962 104,769,329 112,225,775 129,281,626 127,799,696 146,598,786 (479,340) 4,945,530 4,539,867 195,903 4,358,198 (3,317,946) - 2,685,339 3,375,027 - - - - 304,829 73,405 - - (3,292,314) - - - 8,404,493 5,822,104 6,002,411 8,708,035 5,374,608 5,562,215 (5,095,512) (1,642,211) (3,522,108) (7,299,247) (3,685,623) (3,499,089) 3,308,981 6,865,232 2,563,016 1,713,617 1,762,390 2,063,126 $ 2,829,641 $ 11,810,762 $ 7,102,883 $ 1,909,520 $ 6,120,588 $ (1,254,820) 6.28% 6.20% 5.06% 4.64% 4.51% 3.63% 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 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 2024-2025 53,657,078 31,552,997 5,601,741 2,804,065 364,368 93,980,249 123 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 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% 2024-2025 6,643,218,327 1,028,045,532 7,671,263,859 0.68480 7,671,263,859 100.00% 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 I&S Total M&O l&S Total 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 2024-2025 0.65 0.03 0.68 0.49 0.04 0.53 0.77 0.35 1.12 City View ISD(2) Iowa Park CISD (3) Wichita Falls ISD(4) Grand M&O l&S Total M&O I&S Total M&O l&S Total Total 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 2024-2025 0.75 0.32 1.07 0.76 0.31 1.07 0.70 0.41 1.11 5.58 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 30,2025 2024-2025 2015-2016 Percentage Percentage Taxable of Total Taxable of Total Assessed Assessed Assessed Assessed Taxpayer Value Rank Valuation Value Rank Valuation Oncor Electric Delivery Co $ 71,081,510 1 0.93% $ 40,413,930 2 0.85% Atmos Energy/Mid-Tex Division 54,332,310 2 0.71% 15,951,920 6 0.33% North American Pipe Corp 25,845,357 3 0.34% 14,985,050 8 0.31% Arbor Creek Apartments LLC 24,902,900 4 0.32% N/A 0.00% Warren Power 24,115,892 5 0.31% - N/A 0.00% Wal-Mart Stores East Inc 22,576,100 6 0.29% 20,645,100 4 0.43% Wal-Mart Stores Texas LP 20,830,427 7 0.27% 23,724,836 3 0.50% Sikes Senter Mall Realty Holding LLC 20,599,204 8 0.27% 58,000,000 1 1.22% United Supermarkets LLC 18,785,851 9 0.24% N/A 0.00% Winfield Solutions LLC 18,422,709 10 0.24% N/A 0.00% Quail Creek Crossing Ltd - N/A 0.00% 17,186,000 5 0.36% Kell West Regional Hospital - N/A 0.00% 15,775,146 7 0.33% Cryovac Sealed Air Corporation N/A 0.00% 12,762,025 9 0.27% Alon USA LP N/A 0.00% 12,587,278 10 0.26% Totals $ 301,492,260 3.93% $ 232,031,285 4.86% 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 2015-2016 $ 33,644,264 $ 33,124,968 98.46% $ 403,130 $ 33,528,098 99.65% 2016-2017 34,228,872 33,694,059 98.44% 395,674 34,089,733 99.59% 2017-2018 34,887,074 34,298,367 98.31% 403,436 34,701,803 99.47% 2018-2019 37,037,918 36,347,721 98.14% 495,334 36,843,055 99.47% 2019-2020 40,280,490 39,531,671 98.14% 534,070 40,065,741 99.47% 2020-2021 41,645,982 41,044,294 98.56% 391,004 41,435,298 99.49% 2021-2022 44,194,571 43,425,840 98.26% 327,933 43,753,773 99.00% 2022-2023 45,798,161 44,884,913 98.01% 349,464 45,234,377 98.77% 2023-2024 49,054,634 48,015,584 97.88% 421,282 48,436,866 98.74% 2024-2025 52,461,191 51,387,595 97.95% . 51,387,595 97.95% 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 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 2024-2025 19,100,776 9,473,663 2,425,000 388,969 2,084,079 (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 $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 12,565,270 24,565,000 4,744,416 19,549,964 2,788,165 97,685,302 2.88% 952.27 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 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 2024-2025 23,845,192 9,473,663 2,425,000 35,743,855 0.47% 348.45 (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, 2025 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 $ 33,472,487 100% $ 33,472,487 Overlapping: Wichita County 59,938,498 100% 59,938,498 Burkburnett Independent School District 29,259,480 25% 7,314,870 City View Independent School District 12,589,292 90% 11,330,363 Iowa Park Consolidated Independent School District 29,211,059 2% 584,221 Wichita Falls Independent School District 310,006,106 99% 306,906,045 Total overlapping 441,004,435 386,073,997 Total direct and overlapping bonded debt $ 474,476,922 $ 419,546,484 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 2024 tax roll $ 7,671,263,859 Maximum tax rate* $ 2.25/$100 Current tax rate for 2023 tax year .6848/$100 Maximum tax rate in excess of 2023 tax rate 1.5652/$100 Total legal debt margin $ 120,070,622 2015-2016 2016-2017 2017-2018 2018-2019 Assessed value $ 4,765,611,306 $ 4,849,376,974 $ 4,941,651,841 $ 5,074,578,796 Maximum tax rate $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 Current tax rate .70598/$100 .70598/$100 .70598/$100 .72988/$100 Maximum tax rate in excess of current rate 1.54402/$100 1.54402/$100 1.54402/$100 1.52012/$100 Total legal debt margin $ 73,581,992 $ 74,875,350 $ 76,300,093 $ 77,139,687 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$100 assessed valuation. The 2024 tax rate was$.6848 per$100 assessed valuation. * Maximum tax levy established by City Charter 131 EXHIBIT H-13 Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 $ 5,276,594,133 $ 5,455,879,419 $ 5,807,983,335 $ 6,596,548,411 $ 7,219,792,277 $ 7,671,263,859 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 .763323/$100 .763323/$100 .760928/$100 .694321/$100 .68/$100 .6848/$100 1.486677/$100 1.486677/$100 1.489072/$100 1.555679/$100 1.57/$100 1.5652/$100 $ 78,445,911 $ 81,111,304 $ 86,485,054 $ 102,621,118 $ 113,350,739 $ 120,070,622 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 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 2024-2025 52,068,389 29,527,365 22,541,024 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 $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 9,705,000 607,000 10,312,000 2.19 EXHIBIT H-15 CITY OF WICHITA FALLS, TEXAS DEMOGRAPHIC STATISTICS- LAST TEN FISCAL YEARS (UNAUDITED) Per Capita Fiscal Estimated Personal Personal Median School Unemployment Year Population (1) Income Income(1) Age Enrollment(2) Rate(3) 2015-2016 104,710 $ 2,394,298,860 $ 22,866 32.5 15,181 4.8% 2016-2017 104,724 2,395,980,396 22,879 32.5 15,124 3.4% 2017-2018 104,747 2,597,725,600 24,800 32.8 15,150 3.1% 2018-2019 104,576 2,439,548,928 23,328 32.9 15,158 3.0% 2019-2020 104,568 2,558,445,480 24,467 32.9 15,133 7.0% 2020-2021 104,683 2,546,937,390 24,330 33.1 14,144 6.5% 2021-2022 102,498 2,709,432,132 26,434 32.4 14,623 2.3% 2022-2023 102,988 3,083,460,720 29,940 32.8 14,417 3.3% 2023-2024 102,691 3,284,777,017 31,987 33.0 12,868 3.9% 2024-2025 102,581 3,393,174,318 33,078 33.8 12,636 3.5% 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 30,2025 2024-2025 2015-2016 Percentage Percentage of Total of Total City City Employer Employees Rank Employment Employees Rank Employment Sheppard Air Force Base 6,750 1 10.07% 12,581 1 17.60% United Regional Health Care System 2,475 2 3.69% 2,021 3 2.83% Midwestern State University 1,893 3 2.45% 1,992 4 2.79% Wichita Falls ISD 1,709 4 2.55% 1,315 5 1.84% City of Wichita Falls 1,253 5 1.87% 1,238 6 1.73% North Texas State Hospital 1,073 6 1.60% 2,071 2 2.90% Howmet Corporation 1,070 7 1.60% 850 8 1.19% Wal-Mart-3 locations 1,050 8 1.57% 1,140 7 1.59% Vitro Architectural Glass 940 9 1.40% - N/A - Cryovac Division-Sealed Air Corp 810 10 1.21% - N/A - James V.Allred Prison Unit - N/A 0.00% 806 9 1.13% United Supermarkets-3 locations - N/A 0.00% 778 10 1.09% Totals 19,023 28.01% 24,792 34.69% 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) 2015-2016 2016-2017 2017-2018 2018-2019 Administrative services 94.1 86.0 85.7 85.9 Police 299.0 295.8 295.5 295.5 Fire 162.5 162.5 162.5 164.0 Parks and recreation 92.6 89.5 88.8 90.7 Accounting/finance 26.2 26.0 25.7 25.7 Community development 41.0 40.0 40.0 40.0 Public works 78.5 72.5 72.5 72.5 Health 78.7 78.8 76.3 75.4 Traffic and transportation 57.0 52.0 52.0 52.0 Multi-Purpose Events Center 22.8 22.8 4.6 4.0 Water and sewer 188.6 186.1 183.9 183.9 Sanitation 85.5 86.5 86.5 86.5 Regional Airport 1.6 1.6 1.6 1.6 Kickapoo Airport 4.4 4.4 4.4 4.4 Transit 26.7 25.2 25.2 24.2 Stormwater Drainage 1.8 4.8 4.8 4.8 Source: City of Wichita Falls Human Resources Department 135 EXHIBIT H-17 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 86.2 88.4 87.0 96.1 89.0 90.0 295.5 295.5 295.5 295.5 292.5 293.5 164.0 164.0 164.0 165.0 164.0 165.0 90.7 90.9 91.2 89.2 90.5 92.5 25.6 26.3 26.6 27.6 27.0 27.0 40.0 41.0 41.1 42.1 39.6 39.6 71.5 70.0 70.0 72.5 72.5 72.5 75.4 70.3 70.3 73.6 73.4 73.4 50.1 52.0 52.0 52.0 52.5 52.5 4.0 3.5 17.2 18.7 20.7 21.7 183.9 184.0 190.0 193.1 201.0 201.0 86.5 86.5 86.5 84.6 87.5 87.5 3.1 3.1 9.1 9.1 8.6 8.6 4.4 4.4 4.4 4.4 5.4 5.4 24.2 24.2 24.2 28.2 31.2 31.2 4.8 5.3 5.3 5.2 4.8 4.8 CITY OF WICHITA FALLS, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS(UNAUDITED) 2015-2016 2016-17 2017-2018 2018-2019 General government Building permits issued 7,413 7,874 6,590 5,866 Building inspections conducted 11,302 10,803 10,760 12,250 Police Physical arrests 5,214 5,845 4,869 4,963 Parking violations 110 175 27 113 Traffic violations 19,424 23,514 23,979 23,831 Fire Emergency responses 9,432 8,442 11,229 12,337 Fires extinguished 477 449 601 490 Inspections 4,133 3,175 3,248 3,295 Refuse collection Refuse collected (tons) 136,646 136,911 131,442 155,767 Recyclables collected 16,134 18,232 23,079 24,311 Library Volumes in collection 176,160 820,301 854,142 976,145 Total volumes borrowed 282,808 294,798 333,381 366,800 Water New connections (2,523) 3,144 160 182 Water main breaks 696 519 766 546 Average daily consumption 14,974 14,180 15,131 13,895 (thousands of gallons) Wastewater Average daily sewage treatment 7,900 9,877 8,974 8,927 (thousands of gallons) Transit Total route miles 591,417 586,565 591,538 606,501 Passengers 486,104 493,164 464,838 445,029 This information provided by applicable City of Wichita Falls department. 136 EXHIBIT H-18 Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 5,323 5,492 7,413 7,242 6,241 9,359 13,744 11,821 10,942 13,827 13,692 11,367 3,779 2,768 3,501 3,337 2,961 3,275 32 24 36 48 11 11 15,390 18,749 19,028 21,586 23,206 23,583 12,037 13,518 13,368 13,729 14,329 15,377 576 591 713 621 577 543 937 1,853 2,699 2,839 2,941 3,145 155,752 164,911 181,457 178,867 184,667 198,852 21,730 23,473 23,858 19,774 21,779 22,908 1,002,768 1,190,927 1,508,436 270,947 191,459 139,771 234,496 340,991 306,068 287,385 287,429 181,242 371 224 86 104 122 99 618 401 614 692 611 750 14,110 13,722 14,688 13,296 16,548 12,655 10,339 10,339 9,148 9,070 9,861 11,923 550,901 549,512 561,393 538,491 514,996 577,105 244,265 234,872 243,252 293,574 293,701 489,267 CITY OF WICHITA FALLS, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS(UNAUDITED) 2015-2016 2016-2017 2017-2018 2018-2019 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) 530 531 534 534 Streetlights 8,015 8,451 8,465 8,432 Traffic signals 104 104 102 102 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) 806 782 808 808 Fire hydrants 2,842 2,822 2,836 2,829 Storage capacity(thousands of gallons) 37,000 37,000 37,000 37,000 Wastewater Sanitary sewers(miles) 599 592 594 594 Storm sewers(miles) 98 98 99 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 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 1 1 1 1 1 1 107 117 110 110 127 126 8 8 8 8 8 8 36 36 36 36 36 36 534 570 528 530 615 615 8,453 8,463 8,475 8,478 8,483 8,483 104 104 104 104 104 104 1,200 1,200 1,200 1,200 1,200 1,200 39 39 39 39 39 38 1 1 1 1 1 1 785 781 763 763 763 753 2,883 2,917 2,898 2,873 2,873 3,044 37,000 37,000 37,000 37,000 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N- Z r o L LJ ti N 0 co co O co coN 0 0 o O O O O O O O O O o CV r O O CO N- CO 1.0 c") N r r r (suo!II W ui) saeiioa O I- m_ x w CO Ln C) N O O i--� r N J Z O N Q 0, O N Z N L.L 0 J N Lo co N Q I r O a CD C (NI W Z O W N N N X co co N H ,- in N --)f: _ E L rn O a) o � Q) ti (NI LU Z E V) Cti 1 M O CO Q .�i Z W _ C vi O L.L D J O a) ~ (NI I- t6 z U Q) m m mlap W >' cs cid a) 2 ca ti N Z co Ct > r co O — 6 L O Ur O N J a W cq) r Z ti N W 0 Co co r ti O N O O O O O O O O O O O O O N r O 6) CO N- CO Lfl d- CO N r r r r (suo!II!w ui) sawiloa Docusign Envelope ID:790B49C8-0BDD-4CCD-8062-F02B19F110C1 KEN PAXTON ATTORNEY GENERAL OF TEXAS Dear City/Municipality:Wichita Fa11• Please provide the following information: 1. Your city/municipality's most recent audited financial statement,including the auditor's opinion on the statement, required under Section 103.001 of the Local Government Code. If your city/municipality does not have audited financial statements,please use the text box below to explain why. The audited financial statement is attached. You may attach additional documentation here if necessary. 2. The date on which the audited financial statement was filed with the office of the municipal secretary or clerk pursuant to Section 103.003(a)of the Local Government Code. DATE: 03/17/2026 3. The last day of your city/municipality's fiscal year as referred to in Section 103.003(a)of the Local Government Code. DATE: 09/30/2025 4. The name and title of,and the email address for the person who the Office of the Attorney General can reach out to regarding this information and any potential determination. NAME: Stephen Calvert TITLE: CFO/Director of Finance EMAIL ADDRESS: stephen.calvert@wichitafallstx.gov PHONE NUMBER: 9 4 0-7 61—7 4 4 9 Post Office Box 12548, Austin, Texas 78711-2548 • (512) 463-2100 • www.texasattorneygeneral.gov Docusign Envelope ID:790B49C8-0BDD-4CCD-8062-F02B19F110C1 5. The email address for which your city/municipality designated to receive written requests for public information requests under Government Code Section 552.234(c),if applicable. EMAIL ADDRESS: info@wichitafallstx.gov Please do not submit any confidential information. Information received under this request is subject to release in the instance the OAG received a request for responses to this request. The Office of the Attorney General appreciates your assistance in this matter. 0 docusign Certificate Of Completion Envelope Id: 790B49C8-0BDD-4CCD-8062-F02B19F110C1 Status: Completed Subject: Public Information Act Request from the Office of Attorney General DSFSSourceObjectld: aBncs0000000tFnCAI Template ID: Source Envelope: Document Pages: 214 Signatures: 0 Envelope Originator Certificate Pages: 5 Initials:0 OAG Municipal Audit Review AutoNav: Enabled PO Box 12548 Envelopeld Stamping: Enabled Austin,TX 78711-2548 Time Zone: (UTC-06:00)Central Time(US&Canada) oagmunicipalauditreview@oag.texas.gov IP Address: 104.190.141.208 Record Tracking Status:Original Holder OAG Municipal Audit Review Location: DocuSign 4/8/2026 4:36:38 PM oagmunicipalauditreview@oag.texas.gov Signer Events Signature Timestamp Wichita Falls Completed Sent:4/8/2026 4:36:39 PM info@wichitafallstx.gov Viewed:4/15/2026 12:26:20 PM Security Level: Email,Account Authentication Signed:4/15/2026 1:48:13 PM (None) Using IP Address:64.57.225.219 Electronic Record and Signature Disclosure: Accepted:4/15/2026 12:26:20 PM ID:ebdfda69-76fc-4a19-9906-9ff30b733274 In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/8/2026 4:36:39 PM Certified Delivered Security Checked 4/15/2026 12:26:20 PM Signing Complete Security Checked 4/15/2026 1:48:13 PM Completed Security Checked 4/15/2026 1:48:13 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure Electronic Record and Signature Disclosure created on:4/1/2018 4:34:18 PM Parties agreed to:Wichita Falls CONSUMER DISCLOSURE From time to time, Office of the Attorney General (we, us or Company) may be required by law to provide to you certain written notices or disclosures. 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