2009 Comprehensive Annual Financial Report Comprehensive
Annual
Financial Report
City of
Wichita Falls,
Texas
''cy Tn ea��s
For Year Ended
September 30, 2009
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2009
ISSUED BY:
DEPARTMENT OF FINANCE
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CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal i-vii
GFOA Certificate of Achievement viii
Organizational Chart ix
List of Principal Officials x
FINANCIAL SECTION
Independent Auditor's Report 1-2
Management's Discussion and Analysis 3-12
BASIC FINANCIAL STATEMENTS:
Statement of Net Assets A-1 13
Statement of Activities A-2 14
Balance Sheet-Governmental Funds A-3 15
Reconciliation of the Governmental Funds Balance Sheet to the Statement
of Net Assets A-4 16
Statement of Revenues, Expenditures and Changes in Fund Balances-
Governmental Funds A-5 17
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of the Governmental Funds to the Statement of Activities A-6 18
Statement of Fund Net Assets-Proprietary Funds A-7 19-20
Statement of Revenues, Expenses and Changes in Fund Net Assets-
Proprietary Funds A-8 21
Statement of Cash Flows- Proprietary Funds A-9 22-23
Statement of Fiduciary Assets and Liabilities A-10 24
Notes to the Financial Statements 25-58
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule-General Fund B-1 59
Notes to the Required Supplementary Information 60
Texas Municipal Retirement System -Analysis of Funding Progress-
Last Ten Plan Years B-2 61
Wichita Falls Firemen's Relief and Retirement Fund-Analysis of Funding Progress B-3 62
Wichita Falls Retiree Health Care Plan-Analysis of Funding Progress B-4 63
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS (CONT'D.)
Exhibit Page
COMBINING FINANCIAL STATEMENTS:
Nonmajor Governmental Funds:
Combining Balance Sheet C-1 64
Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 65
Budgetary Comparison Schedule—Community Development Block Grant C-3 66
Budgetary Comparison Schedule—Section 8 Housing Fund C-4 67
Budgetary Comparison Schedule— Home Investment Partnership Agreement Fund C-5 68
Budgetary Comparison Schedule— Hotel/Motel Tax Fund C-6 69
Budgetary Comparison Schedule—Golf Fund C-7 70
Budgetary Comparison Schedule—MPEC Fund C-8 71
Budgetary Comparison Schedule—Debt Service Fund C-9 72
Nonmajor Enterprise Funds:
Combining Statement of Net Assets D-1 73
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets D-2 74
Combining Statement of Cash Flows D-3 75-76
Internal Service Funds:
Combining Statement of Net Assets E-1 77
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets E-2 78
Combining Statement of Cash Flows E-3 79
Agency Fund:
Statement of Changes in Assets and Liabilities F-1 80
Component Units:
Combining Statement of Net Assets G-1 81
Combining Statement of Activities G-2 82
SUPPORTING SCHEDULES:
Combined Schedule of Bonded Debt and Interest Maturities H-1 83
Combined Schedule of Bonds Payable H-2 84-88
Debt Service Coverage— Revenue Bonds H-3 89
Capital Assets Used in the Operation of Governmental Funds-
Schedule By Function and Activity H-4 90
Capital Assets Used in the Operation of Governmental Funds-
Schedule of Changes By Function and Activity H-5 91
Municipal Airport Fund—Capital Assets and Accumulated Depreciation H-6 92
Kickapoo Airport Fund—Capital Assets and Accumulated Depreciation H-7 93
Transit Fund—Capital Assets and Accumulated Depreciation H-8 94
Stormwater Drainage Fund - Capital Assets and Accumulated Depreciation H-9 95
Sanitation Fund—Capital Assets and Accumulated Depreciation H-10 96
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2009
TABLE OF CONTENTS (CONT'D.)
Exhibit Page
Water and Sewer Fund—Capital Assets and Accumulated Depreciation H-11 97
Fleet Maintenance Fund—Capital Assets and Accumulated Depreciation H-12 98
Duplicating Services Fund—Capital Assets and Accumulated Depreciation H-13 99
Employee Benefit Trust Fund—Capital Assets and Accumulated Depreciation H-14 100
Wichita Falls Economic Development Corporation—Capital Assets and
Accumulated Depreciation H-15 101
STATISTICAL SECTION (UNAUDITED)
Net Assets By Component—Last Seven Fiscal Years I-1 102
Changes in Net Assets—Last Seven Fiscal Years 1-2 103-104
Fund Balances, Governmental Funds—Last Ten Fiscal Years 1-3 105
Changes in Fund Balances, Governmental Funds—Last Ten Fiscal Years 1-4 106
Tax Revenues By Source, Governmental Funds—Last Ten Fiscal Years 1-5 107
Assessed and Estimated Actual Value of Taxable Property—Last Ten Fiscal Years 1-6 108
Direct and Overlapping Property Tax Rates—Last Ten Fiscal Years 1-7 109
Principal Property Taxpayers—Current Year and Nine Years Ago 1-8 110
Property Tax Levies and Collections—Last Ten Fiscal Years 1-9 111
Ratios of Outstanding Debt by Type—Last Ten Fiscal Years 1-10 112
Ratios of General Bonded Debt Outstanding—Last Ten Fiscal Years I-11 113
Direct and Overlapping Governmental Activities Debt 1-12 114
Computation of Legal Debt Margin—Last Ten Fiscal Years 1-13 115
Pledged Revenue Coverage—Water and Sewer Revenue Bonds—
Last Ten Fiscal Years 1-14 116
Demographic Statistics—Last Ten Fiscal Years 1-15 117
Principal Employers—Current Year and Ten Years Ago 1-16 118
Full-Time Equivalent City Government Employees by Function/Program—
Last Ten Fiscal Years 1-17 119
Operating Indicators by Function/Program—Last Ten Fiscal Years 1-18 120
Capital Asset Statistics by Function/Program—Last Ten Fiscal Years 1-19 121
Graphics:
Cash and Investments J-1 122
Total Bonds Payable J-2 123
General Obligation Bonds Payable J-3 124
Revenue Bonds Payable J-4 125
General Fund Equity J-5 126
Comparison of Tax Levy and Collections J-6 127
Revenues by Source—FYE 9/30/09 J-7 128
Expenditures by Function—FYE 9/30/09 J-8 129
General Governmental Revenues (General Fund Only) J-9 130
General Governmental Expenditures(General Fund Only) J-10 131
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Introductory Section
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OFFICE OF THE CITY
TEXAS
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March 24,2010
The Honorable Mayor,
Members of the City Council,
City Manager and Citizens of Wichita Falls,Texas
I am pleased to submit herewith, the Comprehensive Annual Financial Report (CAFR) of the City of Wichita
Falls, Texas for the fiscal year ended September 30, 2009. The purpose of this report is to provide the City
Council, City Manager, citizens and other interested parties with detailed information concerning the financial
condition of the City of Wichita Falls. In addition,this report provides assurance that the City presents fairly its
financial position as verified by independent auditors.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
The CAFR of the City of Wichita Falls, Texas, for the year ended September 30, 2009, was prepared in
accordance with accounting principles as promulgated by the Governmental Accounting Standards Board
(GASB). The financial statements and related notes have been audited by the independent audit firm of Edgin,
Parkman,Fleming &Fleming,PC,whose report is included herein.
Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation,
including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material
aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operation
of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable
the reader to gain understanding of the City's financial activities have been included.
The CAFR continues to present financial data using the reporting model promulgated by GASB Statement No.
34. This reporting model changed governmental fmancial reporting by incorporating government-wide financial
statements. The Finance Department believes that this presentation provides better information to users of the
report, and it requires management to provide a narrative introduction, overview and analysis to accompany the
basic financial statements in the form of a Management's Discussion and Analysis(MD&A). The MD&A can be
found immediately following the independent auditors' report and is designed to complement this transmittal
letter and should be read in conjunction with it.
GENERAL INFORMATION-CITY OF WICHITA FALLS,TEXAS
The City of Wichita Falls is located 15 miles south of the Red River/Oklahoma border at the intersection of
Interstate 44 and U.S. Highway 287. The city is approximately 130 miles northwest of Dallas and 125 miles
south of Oklahoma City. Wichita Falls is the county seat of Wichita County and the major population center in
North Texas, serving a trade area which extends into southern Oklahoma. Wichita Falls has a strong
international presence, unique for a city of its size and location. Sheppard Air Force Base maintains the Euro-
NATO jet pilot training program;there is considerable international investment in the area's manufacturing base;
and Midwestern State University has significant foreign student representation. Principal employers within the
area manufacture glass, engine components, flexible packaging, laundry equipment, and pipe. North Texas State
Hospital-Wichita Falls Branch,Midwestern State University,James V.Allred Prison and Sheppard Air Force
CITY OF WICHITA FALLS
1300 7th Street•P.O.Box 1431•Wichita Falls,Texas 76307• t: (940) 761-7404•f: (940) 761-8833
www.wichitafallstx.gov
Base are also large employers located within the city. The City operates a Multi-Purpose Events Center, which
includes a coliseum, exhibit hall,and an agricultural arena/show barn. The 2008 population for Wichita Falls,as
estimated by the City's Community Planning and Development Department, is 105,935, an increase of 1.67%
over the 2000 Census estimates,and an increase of 9.78%over the 1990 population.
CITY SERVICES AND ORGANIZATION OF THE GOVERNMENT
The City of Wichita Falls utilizes a Council-Manager form of government and is organized under the
Constitution and Laws of the State of Texas. The City Council is comprised of five members elected from
separate districts, and a Mayor and one member elected by the citizens at-large. The City Council appoints the
City Manager, City Attorney, Municipal Court Judge and City Clerk. All other staff members work under the
direction of the City Manager.
The City provides on a continuing basis a full range of basic municipal services including: public safety(police,
fire and building inspection); highways, streets and engineering; health and welfare services; parks, recreation
and cemeteries; library services;public improvements; planning and zoning; and general administrative services.
In addition,the City provides water,sewer,sanitation and transportation services for its citizens.
ECONOMIC CONDITION AND ACTIVITY
Wichita Falls has successfully diversified its economy to include manufacturing, government, medical services,
and education in addition to the more typical North Texas industries of agriculture, and oil and gas production.
Manufacturing plays a vital role in the area economy. Wichita Falls has over 257 manufacturing outlets with
$254 million in annual payroll, representing approximately 13% of total employment within the city. Large
durable goods manufacturing represents a major portion of the area's employment base including metal
fabrication, industrial and commercial machines and equipment, and assorted plastic and glass products. The
remaining manufacturing jobs are in the processing of non-durable goods such as food, printing materials and
garments. Six of the local manufacturers are operated by Fortune 500 companies or their subsidiaries. Three
area manufacturing facilities are foreign-owned,representing France, Sweden, and Switzerland. The community
has benefited in recent years through several major industrial expansions that have contributed in excess of$1 80
million in new manufacturing investments.
Overall,the local economy did not perform extremely well during the 2008-09 fiscal year. In March of 2009,the
Avis/Budget Call Center closed its operations, displacing 220 workers. In September 2009, Washex also closed,
displacing 50 workers. Also in September 2009,ABB Control announced it would close its operation by the end
of March 2010,ultimately affecting 170 employees.
However,there has been some positive economic news as well. Airwell Oil&Gas,an Australian-based oil field
servicing company, has established an operation in Wichita Falls, and plans to create 23 jobs over the next few
years. This company offers innovative, high tech products for stripper wells using compressed gases and
monitoring devices.
Pratt&Whitney is expanding by adding a water jet stripping system and related building improvements worth$1
million. This new device will allow Pratt to bid on more work and will create 30 new jobs over the next two
years. The City's 4A Economic Development Corporation provided a $400,000 cash incentive for this
investment.
Carter Aviation Technologies (CAT) is working with a major defense contractor interested in the company's
rotor craft. CAT will develop two prototype rotorcraft for this defense contractor, which will turn them into
unmanned, aerial vehicles for military applications. If these prototypes are successful, CAT could receive much
larger contracts,necessitating a new production facility. The 4A Economic Development Corporation approved
an incentive based loan up to$4 million dollars to help with this$12 million investment. That loan is contingent
on the creation of 300 new,manufacturing jobs in the community.
ii
Natura World, Incorporated has recently announced that Wichita Falls has been chosen for its new U.S
headquarters to manufacture, warehouse, and distribute mattresses. This Montreal, Canada-based company has
purchased the former Delphi building,and will invest$35.95 million into the operation.A total of$9.3 million in
4A Economic Development funds have been allocated to the project in the form of grants, loans and secured
loans for the creation of up to 400 new jobs.
WDSGIobal, a service provider to the wireless telephone industry, announced early in 2010 it will lease the
former Avis/Budget facility to create 750 jobs by the end of 2010. A total of$3.675 million dollars of 4A
Economic Development Funds were pledged to entice the company to locate in Wichita Falls. WDSGlobal is a
world-wide operation.
Tryer Process Equipment located a manufacturing operation in the former Piping Engineering building in 2008
and pledged to create 16 new jobs with the assistance of$112,000 of 4A funds. The company continues to grow
and in December of 2009, an additional $112,000 of 4A funds were committed toward the creation of another 16
well-paying jobs.
A group of local businessmen have purchased the former ABB Building and has plans to reestablish a business
there under the name of Armor Controls. A total of 70 new jobs are expected to be created. The total project
cost is estimated at $3 million, of which, $600,000 of 4A Economic Development funds have been pledged
towards the project.
In addition to providing cash incentives for the creation of primary jobs, 4A Economic Development Sales Tax
Funds continue to be used to improve economic development marketing efforts and workforce development. One
piece of the marketing initiative includes the Cities of Wichita Falls,Burkburnett,Iowa Park and Wichita County
and is designed to develop a regional advertising campaign and a national networking alliance. Industries
targeted in this initiative are Aerospace, Wind Energy, Tele-service,and General Manufacturing. Approximately
$108,000 in sales tax funds were allocated to this effort in each of the last two fiscal years. Additionally,the 4A
Economic Development Corporation has pledged $250,000 in each of the next three years to match private
contributions to conduct a community wide marketing campaign. This campaign will develop a coordinated
marketing effort between the City of Wichita Falls, Chamber of Commerce and Industry, Midwestern State
University and the Downtown Development Corporation to improve the overall image of the community.
4A Economic Development Sales tax funds have also been used to assist with activities of the Military Affairs
Committee, a regional organization established a few years ago to work directly with Sheppard Air Force Base
(SAFB), Air Education and Training Command, the Chief of Staff for the Air Force, and our Congressional,
State and Local elected officials. This Committee was formed to increase the value of SAFB, strengthen
community development and build a stronger economy.
Another key indicator of the local economy is the value of residential and commercial construction permits. In
2008-09, residential permits totaled $45,839,933, which is an increase of$9,728,202, or 27% from the prior
year. Commercial construction permits totaled $80,645,569, which is also an increase of 27% above the prior
fiscal year. It should be noted, however, that many of these commercial construction permits were issued to
governmental entities which are not charged a permit fee and are exempt from local property tax. Nevertheless,
several commercial construction permits issued were above $1 million in value which directly impacts local
construction contractors. Those permits include:
• Lamar School Addition—a total of 7,150 sq. ft.addition,with an estimated value of $1,800,000.
• Ben Franklin School Addition—a total of 5,530 sq.ft. addition,with an estimated value$1,256,000.
• Crocket Elementary School Addition — a total of 5,889 sq. ft. addition, with an estimated value of
$1,232,000.
• Sam Houston School Addition—a total of 6,212 sq. ft.addition,with an estimated value of$1,300,000.
• Heritage Assembly of God Addition — a total of 11,368 sq. ft. addition, with an estimated value of
$1,200,000.
111
• County Jail Addition—a total of 4,200 sq. ft.addition,with an estimated value of$3,000,000.
• Christ Academy School — a total of 57,341 sq. ft. new construction, with an estimated value of
$9,000,000.
• Lake Wellington Convention Center—a total of 9,288 sq. ft. new construction,with an estimated value
of$1,650,000.
• Sonic—a total of 1,632 sq.ft.new construction,with an estimated value of$1,500,000.
• Kell West Regional Hospital—a total of 3,200 sq. ft.addition,with an estimated value of $1,944,000.
Another indicator of local economic performance is the retail sales tax. Like elsewhere in the nation,retail sales
taxes in Wichita Falls declined fairly significantly from the prior fiscal year. In 2008-09, the City generated
$27,269,208 in retail sales taxes,which was$1,726,288,or 5.95%,less than in the prior fiscal year. Fortunately,
the price of unleaded and diesel fuel declined significantly to help offset the negative impact to the City's
2008-09 budget.
MAJOR INITIATIVES
For The Year. The City Council continues to identify programs to meet citizens' requests for services and to
safeguard the environment. Work continues on the City's major water system improvement projects. In 2001,
the City embarked on a$118 million improvement program designed primarily to expand the City's water supply
and treatment capabilities and to meet regulatory treatment requirements of the EPA and TCEQ. Specific
projects that are complete, or nearing completion, are the addition of Lake Kemp Reservoir, Pump Station and
Pipeline; a state-of-the-art 10 mgd Reverse Osmosis Facility; Distribution and Elevated Storage Improvements,
Conventional Water Treatment Plant Modifications and Improvements;High Service Pump Station and Storage,
and new Water Plant Administration and Maintenance Facilities. Two water system improvement projects that
remain to be completed include a 10 mgd Conventional Water Treatment Expansion and a Secondary Reservoir
Pumping Station. The contract to construct the Conventional Water Treatment Plant Expansion was awarded in
August 2009 in the amount of$42.7 million. Construction of this project is expected to be finished by the end of
2011. The Secondary Reservoir Pumping Station, that is needed to service this plant expansion, is estimated to
cost$2.5 million.
A major project is nearing completion that will significantly improve communications and reporting efforts in the
police and fire departments. In December 2007, contracts in the amount of$5.6 million were approved for the
installation of a city-wide wireless network, software installation and training, and mobile data workstations.
This system will interface with the Computer Aided Dispatch and Records Management Systems that have been
recently upgraded, allowing for field communications in public safety vehicles. This project has been funded
exclusively with cash reserves of the 4B Sales Tax Corporation.
In January 2009, the City issued $10.8 million in 20 Year Combination Tax and Revenue Bonds for several
capital improvement projects. These projects include construction of a new Police Firing Range,extension of the
City's Hike and Bike Trail, Park Land Acquisition, and construction of a new Animal Services Center. The
annual debt service for the Police and Parks projects is being funded with 4B Sales Tax Funds, and the Animal
Services Center is supported with General Debt Service Funds. All of this debt service can be funded without an
adverse impact to the 4B Fund or the General Fund due to retirement of other outstanding debt that was
previously being funded with these revenue sources.
In May 2009, a contract the amount of $4.2 million was approved for Phase II and III of the Faith Village
Drainage Improvement Project. This project is generally described as the widening of McGrath Creek's open
iv
channel downstream of Kemp Boulevard, installing box culverts along Kemp Boulevard, replacing the existing
system of box culverts and open concrete channel in the median, repaving Kemp Boulevard, and widening the
existing open channel upstream of Kemp Boulevard to Southwestern Parkway. The project will improve the
drainage system in this area and provide better flood protection to the residents and businesses in the area. Funds
that remained from prior bond issues for flood control projects and the City's Storm Water Utility Funds are
being used to finance this project.
The City has responded to GASB statements 43 and 45 which require the City to report its unfunded liability for
post employment benefits other than retirement benefits. The City hired an actuarial firm to determine the City
liability associated with retiree health care and to determine the amount of annual contributions that would be
required if retiree health care programs remained the same. The results of that study indicated that there was a
significant unfunded liability for retiree health care benefits, and much of that liability was due to a relatively
"rich"health care retirement benefit for employees receiving Medicare supplemental coverage. In addition,the
study determined that over$2.3 million in additional City contributions would be required on an annual basis to
address this liability. As a result, the City's Retiree Health Care Program was amended in January 2009 in an
effort to significantly reduce this additional annual contribution requirement. In general, the changes allow
retirees already on Medicare to receive$250 of"level"premium assistance for the City's Medicare supplemental
coverage, allow existing retirees that were not already on Medicare to receive $100 of "level" premium
assistance for the City's Medicare supplemental coverage when they become eligible for Medicare, and
eliminated all City premium assistance for Medicare supplemental coverage for future retirees. The City also
established an irrevocable trust fund to pre-fund its future liability for post employment health care benefits.
For The Future. In the past several years, FAA Primary Entitlement Funding has been expended at the
Kickapoo Downtown General Aviation Airport for a multitude of capital improvement projects. These funds
were targeted at Kickapoo Airport for two reasons: (1)the improvements were high priorities; and(2)the long
term land use lease with the United States Department of the Air Force for the Municipal Airport was nearing the
end of the initial fifty year lease term. In May of 2009, the City Council approved a new 50 year facility lease
with the United States Department of the Air Force,which covers the use of the airfield and the method of paying
the military for services provided by Sheppard Air Force Base. This long term lease gives the City the ability to
apply future FAA Improvement Funds to needed projects identified for the Municipal Airport. The City has
begun using 2009 FAA Entitlement Funds for engineering/design services for the rehabilitation on the runway
17/35 and to develop a Master Plan for the Airport.
In January 2010, the City Council authorized the issuance of$3,930,000 in 15 Year Combination Tax and
Revenue Certificates of Obligation to purchase the Castaway Cove Water Park. This water park was initially
opened for business in June 2004 by a Texas Limited Partnership consisting of 27 local investors. Financial
records indicate that the initial capital investment in the park was$6,188,000,not including the value of 49 acres
of undeveloped land surrounding the park. Additionally, $600,000 of capital investment was made for a new
water slide attraction two years ago. The water park, although a successful recreational venue for citizens and
visitors of the community,was in jeopardy of closing because the operating income of the park was not sufficient
to pay the annual debt service costs. After much deliberation,the City purchased the park and adjacent land and
will be operating it as a City facility in the Spring of 2010. The debt service on the park will be paid for with 4B
Sales Tax Funds. All other operating and capital replacement costs are expected to be supported with proceeds
from park admissions and other retail sales at the park. The City Council also approved a one year agreement
with a water park management firm to oversee the day-to-day operations.
In recent months,the City Council conducted several work sessions on the City's Five Year Capital Improvement
Program in an effort to prioritize capital improvement needs and to discuss potential funding sources for those
needs. Through that effort, it was determined that public infrastructure such as streets, drainage, water and
sewer line repairs were all in need of additional funding to adequately maintain the City's aging infrastructure.
The City already has an engineering study completed on water line improvements and has comprehensive
in-house data on needed sewer line improvements. Additionally, the City Council authorized funding to hire
outside consulting firms to conduct needs assessments for street improvements and drainage projects. Once
these plans are finished,the City will be in a position to address all of these infrastructure projects as funding is
available.
V
The major challenge for the City over the next one or two fiscal years will be to evaluate methods for reducing
the operating expenses in the General Fund due to declining revenues. During the 2009-10 fiscal year,the City
was forced to make mid year expenditure reductions due to a shortfall in revenues. The City has also
implemented a Voluntary Retirement Incentive Program, which is intended to reduce staffing levels. Also, as
positions become vacant,every effort is made to restructure the organization to save costs.
FINANCIAL INFORMATION
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal
control as deemed appropriate by the City Manager. Internal control is designed to provide reasonable, but not
absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition;
and (2) the reliability of financial records for preparing financial statements and maintaining accountability for
assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits
likely to be derived and the evaluation of costs and benefits requires estimates and judgments by the City
Manager.
All internal control evaluations occur within the above framework. The City believes that its internal control
adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions.
The Annual Operating Budget is proposed by the City Manager and approved by the City Council following
public discussion. Budgetary control is maintained at the class level by the Finance Department within each
division by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors.
Purchase orders which result in an overrun of class level balances are not released until additional appropriations
are made available. In instances when budgetary transfers are necessary, management control of the operating
budget is maintained at the fund and department level. Transfers within a department of the same fund must be
approved by the City Manager. Transfers across departments or funds must be approved by the City Council.
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, 2009, and related
appropriations are carried forward to the new fiscal year through a supplemental budgetary allocation.
The City's informal policy is to maintain approximately 20% of unreserved fund balances in the General Fund
for emergencies and other unanticipated needs. These fmancial statements reflect that this policy has been
followed. Additionally,the City maintains an informal policy to limit tax supported debt to no more than 5%of
total assessed property value or$1,500 per capita. As of September 30,2009,the City's tax supported debt was
approximately$39 million,which is 0.88%of the taxable value of property and$369 per capita.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the books of account, fmancial 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 fmancial statements and combining fund statements and schedules is included in the
fmancial section of this report. In addition to meeting the requirements set forth in the City Charter, the audit
also was designed to meet the requirements of the federal Single Audit Act Amendments of 1996 and related
OMB Circular A-133,and the State Single Audit Act. These reports are issued under separate cover.
Awards
The Government Finance Officers Association of the United States and Canada(GFOA)awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Wichita Falls for its CAFR for the fiscal year
ended September 30, 2008. The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of a state and local government financial report. In order
to be awarded a Certificate of Achievement,a government must publish an easily readable and efficiently
vi
organized comprehensive annual financial report, whose contents conform to program standards. The CAFR
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 our current report continues to conform to the
Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility
for another certificate.
Acknowledgments
My appreciation is extended to the various elected officials, city manager, department heads and employees
responsible for the fair presentation of the CAFR and for contributing to the sound financial position of the City
of Wichita Falls. The City of Wichita Falls has been blessed with a group of persons who appreciate and respect
principles of fiscal restraint and propriety. In particular, I would like to acknowledge the special efforts of the
Department of Finance employees who contributed directly to the development of this report. The continuing
support of City Council and City Manager,who remain committed to fiscal integrity and financial leadership, is
likewise appreciated.
Respectfully submitted,
6).24.e;i1/1,44.7
Jim Dockery
Assistant City Manager/CFO
vi'
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Wichita Falls
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
it •.,,i k qt -
es
" e
toms President
*Cr,Aftri
Executive Director
viii
CITY OF WICHITA FALLS
ORGANIZATIONAL CHART
WICHITA FALLS
CITIZENS
C1CITIZE
COMMISSIONS - CITY COUNCILr - BOARDS
11
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CITY OF WICHITA FALLS, TEXAS
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2009
Title Name
Mayor Lanham Lyne
Mayor Pro-Tern Charles Elmore
City Council Member Glenn Barham
City Council Member Michael Smith
City Council Member Rick Hatcher
City Council Member Dorothy Roberts-Burns
City Council Member Jim Ginnings
City Manager Darron Leiker
City Attorney Miles Risley
Municipal Court Judge Larry Gillen
City Clerk Lydia Ozuna
Assistant City Manager Kevin Hugman
Director of Aviation, Traffic and Transportation John Burrus
Assistant City Manager/Chief Financial Officer Jim Dockery
Director of Community Development David Clark
Director of Public Health Lou Franklin
Police Chief Dennis Bachman
Fire Chief Earl Foster
Director of Parks and Recreation Jack Murphy
Director of Public Works and Public Utilities Russell Schreiber
Director of Multi-Purpose Events Center Bob Sullivan
x
Financial Section
Independent Auditor's Report
11111 ' EDGIN, PARKMAN, FLEMING & FLEMING, PC
CERTIFIED PUBLIC ACCOUNTANTS
MICHAEL D.EDGIN,CPA
4501 NORTHWEST FWY. • P.O.Box 750 DAVID L.PARKMAN,CPA
WICHITA FALLS,TEXAS 76307-0750 A.PAUL FLEMING,CPA
PH.(940)766-5550 • FAx(940)766-5778 J.MARK FLEMING,CPA
Independent Auditor's Report
The Honorable Mayor and Members of the City Council
City of Wichita Falls, Texas
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of the City of Wichita Falls, Texas, as of and for
the year ended September 30, 2009, which collectively comprise the City's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of
the City's management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Wichita Falls, Texas, as of September 30, 2009, 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.
In accordance with Government Auditing Standards, we have also issued under separate cover
our report dated March 24, 2010 on our consideration of the City of Wichita Falls, Texas'
internal control over financial reporting and our tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements, and other matters. The purpose of that report
is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on 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 and should be considered in assessing the results of our
audit.
1
The Management's Discussion and Analysis, the schedules on the Texas Municipal Retirement
System, the Wichita Falls Firemen's Relief and Retirement Fund, the Wichita Falls Retiree Health
Care Plan, and the budgetary comparison information identified as Required Supplementary
Information in the table of contents are not a required part of the basic financial statements, but
are supplementary information required by accounting principles generally accepted in the United
States of America. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion on
it.
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 have been subjected to auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a whole. The introductory
section and statistical section have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we express no opinion on them.
EDGIN, PARKMAN, FLEMING & FLEMING, PC
Wichita Falls, Texas
March 24, 2010
2
Management Discussion and Analysis
i1k44 f6
TEXAS
B/w5Xtes 4oldeoOpportwnitias
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2009
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, 2009.
It is offered here by the management of the City to the readers of its financial statements. Readers should
use the information presented here in conjunction with additional information furnished in our letter of
transmittal, which can be found in the Introductory Section of this Comprehensive Annual Financial
Report.
Financial Highlights
The assets of the City of Wichita Falls exceeded its liabilities at September 30,2009,by$334,459,655 (net
assets). Of this amount, $25,592,797 (unrestricted net assets) may be used to meet the government's
ongoing obligations to citizens and creditors.
The City's total net assets increased by$2,989,199. This increase can be attributed primarily to a reduction
in long term liabilities (outstanding debt) in the water and sewer fund and grants from the 4B Sales Tax
Corporation for debt service payments and capital improvements. However, net assets would have
increased more substantially over the prior fiscal year had revenues from sales taxes, interest earnings,and
water sales met budgeted expectations.
At September 30, 2009, the City's governmental funds reported combined ending fund balances of
$36,568,374. Of this amount, $28,814,141, or 78.80%, is available for spending at the government's
discretion,(unreserved fund balance).
At the end of the current fiscal year, unreserved fund balance for the General Fund was $13,042,044 or
20.14%of total General Fund expenditures.
The City's total debt increased by $3,884,466 during the current fiscal year. The primary reason for this
increase is because the City issued $10,820,000 in additional combination tax and revenue bonds during
this fiscal year, but continued to retire outstanding General Obligation Bonds, Water and Sewer System
Revenue Bonds, and Combination Tax and Revenue Bonds. The City also issued a five year capital lease
in March 2009 for the purchase of a fire ladder truck in the amount of$916,548.
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.
3
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2009
(continued)
Government-wide Financial Statements
The government-wide financial statements, which can be found on pages 13-14 of this report, include the
Statement of Net Assets (Exhibit A-1)and the Statement of Activities (Exhibit A-2). These statements are
designed to provide readers with a broad overview of the City's finances in a manner similar to a private-
sector business. Both are prepared using the economic resources focus and the accrual basis of accounting;
meaning that all current year's revenues and expenses are included regardless of when cash is received or
paid. Thus, revenues and expenses are reported in these statements for some items that will result in cash
flows in future fiscal periods(e.g.uncollected taxes and earned but not used vacation leave).
The Statement of Net Assets presents information on all of the City's assets and liabilities, including capital
assets and long-term obligations. The difference between the City's assets and liabilities is reported as net
assets. Over time, the increases or decreases in net assets may serve as a useful indicator of whether the
financial position of the City is improving or deteriorating. Other indicators of the City's financial position
should be taken into consideration, such as the change in the City's property tax base and condition of the
City's infrastructure (e.g., roads, traffic signals, water and sewer lines, etc.), in order to more accurately
assess the overall financial condition of the City.
The Statement of Activities presents information showing how the City's net assets changed during the most
recent fiscal year. It focuses on both the gross and net costs of the government services. This statement
includes all current year revenues and expenses.
The Statement of Net Assets and the Statement of Activities divide the City's activities into three types:
Governmental activities—Most of the City's basic services are reported here, including police, fire, parks
and recreation, public works, health, traffic and transportation, community development and planning, and
general administration and finance. The Multi-Purpose Events Center is also reported as a governmental
activity. 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, municipal
airports,transit system,storm water drainage improvements, and fleet maintenance services.
Component Units—Four legally separate organizations, for which the City is fmancially 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#1,and the Wichita Falls Reinvestment Zone#2.
Fund Financial Statements
The City of Wichita Falls, like other state and local governments, uses fund accounting to provide more
detailed information about the City's most significant funds,not the City as a whole. A fund is a grouping
of related accounts that is used to maintain control over resources that have been segregated for specific
activities or objectives. Some funds are required to be established by state law or bond covenants.
However,the City Council establishes many other funds to help it control and manage money for particular
purposes or to show that it is meeting legal responsibilities. All of the funds of the City can be divided into
three categories: governmental funds,proprietary funds and fiduciary funds.
4
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2009
(continued)
Governmental Funds—These funds are used to account for the majority of the City's activities,which are
essentially the same functions reported as governmental funds in the government-wide statements.
However, unlike the government-wide financial statements, governmental fund financial statements are
reported using an accounting method identified as the modified accrual basis of accounting, which
measures cash and all other financial assets that can be readily converted to cash. The governmental fund
statements focus on near-term inflows and outflows of expendable resources, as well as expendable
resources available at the end of the fiscal year for future spending. Such information may be useful in
evaluating a government's near-term financing requirements.
The focus of the governmental funds financial statements is narrower than that of the government-wide
financial statements. Therefore, it is useful to compare the information presented for governmental funds
with similar information presented for governmental activities in the government-wide statements. By
doing so, readers may better understand the long-term impact of the government's short term financing
decisions. Both the Governmental Fund Balance Sheet and the Governmental Fund Statement of
Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this
comparison. The reconciliation explains the differences between the government's activities reported in
the government-wide statements and the information presented in the governmental funds financial
statements.
The City of Wichita Falls maintains 15 individual governmental funds. Information for the General Fund is
presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of
Revenues and Changes in Fund Balances because it is considered a major fund of the City. Data for the
other governmental funds are combined into a single, aggregated presentation. Individual fund data for
each of the non-major governmental funds are provided in the Combining Financial Statement Section of
this report.
The Basic Governmental Funds Financial Statements can be found on pages 15-18 of this report.
Proprietary Funds — When the City charges customers for services it provides, whether to outside
customers or to other units within the City, the activities are generally reported in proprietary funds. The
City of Wichita Falls maintains two different types of proprietary funds: enterprise funds and internal
service funds.
• Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to
account for its water and sewer operations, sanitation collection and disposal services,
municipal airports,transit operations,and storm water utility district.
• 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, and employee benefit trust. Because these services benefit both governmental
and business-type functions, they have been allocated between governmental and
business-type activities in the government-wide fmancial statements.
Proprietary fund financial statements provide the same type of information as the business-type activities
shown in the government-wide financial statements, only in more detail and include some of the internal
service fund-type activities. The proprietary fund financial statements provide separate information for the
Water and Sewer Fund and the Sanitation Fund since they are considered to be major funds of the City.
The non-major proprietary funds are combined into a single, aggregated presentation in the proprietary
fund financial statements. Individual fund data for each of the non-major proprietary funds are provided in
the Combining Financial Statement Section of this report.
5
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30, 2009
(continued)
Fiduciary Funds-Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statements because the
resources of those funds are not available to support the City's own programs. The accounting method
used for fiduciary funds is much like that used for proprietary funds. Agency funds are a component of
fiduciary funds and are used to account for situations where the City's role is purely custodial, such as
receipt, temporary investment and remittance of fiduciary funds to individuals, private organizations or
other governments. The Citymaintains one fiduciaryfund. This fund is an agency fund used to account
g Y
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 25-58 of this report.
Government-Wide Financial Analysis
The City's combined net assets were$334,459,655 as of September 30,2009, an increase of$2,989,199,or
.90% from the prior year. Using the Tables below, an analysis of the net assets of the City can be made.
The largest portion of the City's net assets,$294,721,219,or 88.12%, is reflected in capital assets(land and
improvements, buildings, infrastructure, machinery and equipment), less any related debt used to acquire
those assets that is still outstanding. The City uses these assets to provide services to its citizens;
consequently,these assets are not available for future spending. Although the City reports its capital assets
net of related debt, the resources needed to repay this debt must be provided from other sources since the
capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net assets, $14,145,639, or 4.23%,represents resources that are subject
to external restrictions on how they may be used. The remaining balance of net assets, $25,592,797, or
7.65%,may be used to meet the government's ongoing obligations to citizens and creditors.
Net Assets
(in thousands)
Governmental Business-type
Activities Activities Total
2009 2008 2009 2008 2009 2008
Current and Other Assets $ 46,699 $ 52,710 $ 97,170 $ 106,409 $ 143,869 $ 159,119
Capital Assets 164,629 158,358 238,025 220,714 402,654 379,072
Total Assets 211,328 211,068 335,195 327,123 546,523 538,191
Long Term Liabilities 46,621 37,582 146,996 151,642 193,617 189,224
Other Liabilities 10,089 10,795 8,357 6,701 18,446 17,496
Total Liabilities 56,710 48,377 155,353 158,343 212,063 206,720
Net Assets:
Invested in Capital Assets,
Net of Related Debt 138,550 139,869 156,171 143,023 294,721 282,892
Restricted 1,187 1,632 12,959 12,946 14,146 14,578
Unrestricted 14,881 21,190 10,712 12,811 25,593 34,001
Total Net Assets $ 154.618 $ 162.691 $ 179.842 $ 168.780 $ 334.460 $ 331.471
6
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30, 2009
(continued)
CHANGES IN NET ASSETS
(in thousands)
Governmental Business-type
Activities Activities Total
2009 2008 2009 2008 2009 2008
Revenues:
Program Revenues:
Charges For Services $ 9,155 $ 8,718 $ 48,686 $ 46,981 $ 57,841 $ 55,699
Operating Grants and
Contributions 10,891 11,469 1,142 1,389 12,033 12,858
Capital Grants and Contributions 1,631 3,097 456 1,022 2,087 4,119
General Revenues:
Property Taxes 27,870 26,160 - - 27,870 26,160
Sales Taxes 20,452 21,354 _ - - 20,452 21,354
Other Taxes/Fees 7,436 7,579 - - 7,436 7,579
Investment Earnings 415 1,728 603 2,949 1,018 4,677
Miscellaneous 135 (155) 147 - 282 (155)
Total Revenue 77,985 79,950 51,034 52,341 129,019 132,291
Expenses:
Administrative Services 12,026 11,662 - - 12,026 11,662
Police 21,009 20,528 - - 21,009 20,528
Fire 13,028 12,493 - - 13,028 12,493
Parks and Recreation 5,757 5,107 - - 5,757 5,107
Accounting/Finance 2,473 2,232 - - 2,473 2,232
Community Development 7,584 6,921 - - 7,584 6,921
Public Works 8,282 8,315 - - 8,282 8,315
Health 4,996 4,874 - - 4,996 4,874
Traffic and Transportation 2,500 2,679 - - 2,500 2,679
MPEC 4,028 4,336 - - 4,028 4,336
Interest and Fees on Long-term
Debt 1,621 1,405 - - 1,621 1,405
Golf - - - - - -
Municipal Airport - - 289 311 289 311
Kickapoo Airport - - 1,354 1,245 1,354 1,245
Transit - - 1.616 1,794 1,616 1,794
Sanitation - - 8,509 9,199 8,509 9,199
Water and Sewer - - 30,166 28,127 30,166 28,127
Stormwater Drainage - - 477 407 477 407
Total Expenses 83,304 80,552 42,411 41,083 125,715 121,635
Increase(Decrease)in Net Assets
Before Transfers (5,319) (602) 8,623 11,258 3,304 10,656
Transfers (2,439) 525 2,439 (525) - -
Increase(Decrease)in Net Assets (7,758) (77) 11,062 10,733 3,304 10,656
Net Assets-Beginning of Year 162,691 162,768 168,780 158,047 331,471 320,815
Prior Period Adjustment (315) - - - (315) -
Net Assets-End of Year $154.618 $162.691 $179.842 $168.780 $334.460 $331.471
7
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2009
(continued)
Governmental Activities — Governmental Activities decreased the City's net assets by $7,758,247.
However,nearly$4 million of that reduction is due to the reclassification of assets for storm water drainage
improvements from capital project funds to the Storm Water Enterprise Fund. The governmental funds
also experienced a reduction of approximately $900,000 in sales taxes and$1.3 million less revenues from
earnings on investments of idle funds principally due to falling interest rates. The General Fund also
transferred approximately $520,000 in cash to the Sanitation Fund to purchase a new grinder for the
landfill. This cash transfer is anticipated to be repaid to the General Fund over the next three fiscal years.
Business-Type Activities - Net assets for the City's Business-type Activities increased by $11,062,248,
accounting for 370%of the total growth in the City's net assets. The City continues to reduce liabilities in
its Water and Sewer Fund as debt service payments are made on outstanding revenue bonds. Business-type
Activities also benefited from the reclassification of nearly $4 million in assets from Governmental Funds
to the Storm Water Enterprise Fund.
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, unreserved 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, 2009, the City's governmental funds reported combined fund balances of
$36,568,374,which is a reduction of$4,721,730 from the prior year. Much of this reduction was planned
as the City spent funds in the Section 8 Housing Program, HOME Program, and other Miscellaneous
Special Revenues that had accumulated balances in prior years. The City also planned to draw down
General Fund balances for several projects and equipment purchases that were approved in the budget.
However, some of this reduction can be attributed to lower interest earnings on the investment of idle
funds, lower sales tax collections, and higher than anticipated General Fund subsidy for the Champions
Golf Course.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unreserved
fund balance of the General Fund was $13,042,044. As a measure of the General Fund's liquidity, it may
be useful to compare both the unreserved fund balance and total fund balance to total fund expenditures.
Unreserved fund balance represents 20.14% of total General Fund expenditures, while the total fund
balance represents 22.46%of total General Fund expenditures.
Proprietary Funds—The financial statements of the proprietary funds provide information for two types of
funds: the business type (enterprise) funds and the internal service funds. The accounting principles
applied to proprietary funds are similar to that of the private sector. Consequently, with the exception of
the allocation of internal service fund net income or loss, the net assets and changes in net assets of the
enterprise funds in these financial statements are identical with the net assets and changes in net assets
reflected in the business type activities in the city-wide presentation.
The City's internal service funds include the Fleet Maintenance Fund, Employee Benefit Trust Fund and
the Duplicating Services Fund. At the close of September 30, 2009, the net assets for the City's internal
service funds were$21,945,453, an increase of$3,075,095. Much of this increase is due to fleet purchases
such as sanitation collection and disposal equipment, a pothole truck, a command vehicle for emergency
management and meter reader vehicles that were made with other funds and donated to the Fleet
8
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30,2009
(continued)
Maintenance Fund. Also, the Employee Benefit Trust Fund ended the fiscal year with a net income of
$304,020 due to lower than expected costs for employee health claims. It should be noted that of the net
assets for the City's internal service funds, $18,659,772 is invested in capital assets and $2,191,856 is
reserved for employee life and health benefits. The remainder of net assets of the internal service funds
are generally used to replace capital assets. The purpose of the internal service funds is to provide services
within the organization on a break-even basis. The net income or loss from these internal service funds has
been allocated back to the using departments or funds for the City-wide financial statements.
General Fund Budgetary Highlights
The final amended expenditure budget for the General Fund, including transfers out, was increased by
$3,014,007 from the original adopted budget. The primary reasons for this increase in appropriations can
be briefly summarized as follows:
• Approximately $2,264,000 of prior year encumbrances were carried forward to the 2008-09
amended budget, the majority of which was for the Street Overlay Program, the City's General
Fund cost associated with a joint construction project with the Wichita Falls Independent School
for two gymnasiums, a professional service agreement for Lake Wichita survey work, a backup
generator for the Memorial Auditorium,and some traffic signal equipment.
• Approximately$655,000 was appropriated to purchase a grinder for the City's landfill.
• An additional$94,500 was budgeted for a legal settlement.
Actual revenues in the General Fund for the 2008-09 fiscal year were $61,198,281, which was $1,174,836
below final budgeted figures. Much of this shortfall was due to declining sales tax collections, lower
building permit activity, and overly optimistic projections for municipal court fines. In addition, interest
earnings were lower than expected in the budget due to falling interest rates.
Actual expenditures in the General Fund for the 2008-09 fiscal year were$64,742,711 compared to a fmal
budget of$67,458,552. Much of this variance is due principally to a delay in a significant street overlay
program until the ensuing fiscal year. There was also a considerable savings in the expenditure budget for
unleaded gasoline and diesel fuel as prices dropped during the year. In addition,salary savings that accrued
to the General Fund from vacancies in authorized positions accounted for the majority of the remaining
amount.
Capital Asset and Debt Administration
Capital Assets—The City's investment in capital assets for its governmental and business-type activities as
of September 30, 2009, amounts to $402,653,806 (net of accumulated depreciation). This investment in
capital assets includes land,buildings,equipment,infrastructure and construction in progress.
9
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2009
(continued)
Major capital asset events during this fiscal year included the following:
• Continued improvements to the water system, principally at Cypress and Jasper Water Treatment
Plants.
• Continued installation of a wireless communications network and related equipment for the Public
Safety Mobile Data Terminal Project.
• Construction of a new police firing range.
• Improvements at Municipal and Kickapoo Airports.
• Improvements to Gregg/Langford Road.
• Improvements to Colonial Park Drainage.
• Extension of Maplewood Avenue and Quail Creek Drainage Improvements.
Capital Assets,net of Accumulated Depreciation
(in thousands)
Governmental Business-type
Activities Activities Total
2009 2008 2009 2008 2009 2008
Land $ 9,143 $ 8,802 $ 8,466 $ 8,466 $ 17,609 $ 17,268
Land Betterments 20,079 20,012 16,493 15,567 36,572 35,579
Buildings, Systems
and Improvements 47,154 45,936 187,632 165,413 234,786 211,349
Infrastructure 71,751 64,836 - - 71,751 64,836
Machinery and Equip 9,890 10,471 2,070 2,418 11,960 12,889
Furniture and Fixtures 13 14 5 9 18 23
Motor Vehicles - - 15,612 13,082 15,612 13,082
Construction in
Progress 6,599 8,287 7,747 15,759 14,346 24,046
Totals $ 164.629 $ 158.358 $238.025 $220,714 $ 402,654 $ 379.072
Additional information on the City's capital assets can be found in Note 7 on pages 39-41 of this report.
Long Term Debt-At the end of the current fiscal year, the City of Wichita Falls had a total bonded debt,
notes and capital leases outstanding of$181,269,075. The City issued $10,820,000 in Combination Tax
and Revenue Bonds during the 2008-09 fiscal year to finance the construction of a police firing range,
animal services center,park land acquisition,and park trail extensions.
Moody's Investor's Service has assigned a credit rating of Al for the City's General Obligation Bonds and
a rating of A2 for the City's Water and Sewer System Revenue Bonds. As of September 30, 2009,
Standard& Poors had assigned a credit rating of AA for the City's General Obligation Bonds and a rating
of AA-for its Water and Sewer System Revenue Bonds.
10
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2009
(continued)
• Outstanding Debt at Year-End
(in thousands)
Governmental Business-type
Activities Activities Total
2009 2008 2009 2008 2009 2008
General Obligation Bonds $ 5,535 $ 6,480 $ - $ - $ 5,535 $ 6,480
Combination Tax and
Revenue Bonds 33,525 23,867 21,005 24,479 54,530 48,346
Utility System Revenue -
Bonds - 119,842 121,888 119,842 121,888
Capital Lease Payable - - 722 - 722 Notes Payable _ 640 671 640 671
Total S 39.060 .$ 30.347 $ 142.209 $ 147.038 $ 181.269 $ 177.385
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 fmance general governmental services for the year ended September 30, 2009, was
$.59526 per$100,which means that the City has a tax margin of$1.65474 per$100, and could raise up to
$73,319,145 additional tax revenue a year from the present assessed valuation of$4,430,855,934 before the
limit is reached. The current ratio of general bonded debt outstanding to the assessed value of all taxable
property is 0.88%.
Additional information about the City's long-term debt can be found in Note 13 on pages 49-54 of this
report.
Economic Factors and Next Year's Budgets and Rates
Total 2009-10 operating revenues are budgeted at $141,022,131, which is a reduction of$3,401,128, or
2.35%from the 2008-09 adopted budget.
Like elsewhere in the nation, consumer spending and business activity has been declining, which directly
affects sales tax revenues. In the 2009-10 budget, sales taxes are projected to generate $20,673,347, a
decrease of$487,525, or 2.30%from the prior year adopted budget. It should be noted that this projection
was based upon an estimate of 2008-09 actual receipts and a growth rate of-1.00%.
Another fairly significant source of revenue for the City is the interest earnings on idle funds. Interest rates
have fallen significantly over the past year, and are now only yielding approximately 0.50%. As a result,
the 2009-10 budget shows a reduction of over$823,000 from this source.
Residential and commercial building activity has slowed over the last 18 months, resulting in less revenue
to the City from building,electrical and plumbing permits. In addition, a significant portion of the building
activity that is occurring is the government sector which does not pay for permits. The budget anticipates
that development will continue at its present pace. Under this assumption, the City will receive $151,000
less revenue than the prior budget.
11
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2009
(continued)
The Property Tax is the largest source of revenue in the City's budget and one that is relied heavily upon to
provide general City services. The property tax base,as certified by the Wichita County Appraisal District,
was $4.426 billion, a reduction of$4.7 million from the prior year. To help recover some of the lost
revenue in sales taxes, interest earnings and building permits,the City Council approved an increase to the
property tax rate of 1 cent per$100 in taxable assessed value.
Retail Water and Sewer rates were maintained at the same rate as the prior year. However,wholesale water
rates were increased on average by 10 to cover the City's operational costs to service our wholesale
customers and to provide a return on the City's investment made to the water plants.
Fortunately, most of the expected loss in revenues should be alleviated by significantly lower costs for
unleaded gasoline and diesel fuel. As a result, the budget does not include any major expenditure
reductions in personnel or employee benefits. However,the budget did not include step/merit increases or
cost of living pay adjustments. Personnel expenses represent an increase of only$105,831,or 0.16%above
the 2008-09 adopted budget.
Requests for Information
This financial report is designed to provide a general overview of the City of Wichita Falls' finances for all
those with an interest in the government's finances. Questions concerning any of the information provided
in this report, or request for additional fmancial information, should be addressed to the City Finance
Department, 1300 Seventh Street,Wichita Falls,Texas 76301.
12
Basic Financial Statements
EXHIBIT A-1
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2009
Primary Government
Governmental Business-type Component
Activities Activities Total Units
Assets
Cash and cash equivalents $ 39,764,082 $ 7,422,923 $ 47,187,005 $28,214,778
Receivables(net):
Taxes and assessments 1,053,429 - 1,053,429 -
Customer and trade - 5,407,995 5,407,995 -
Government agencies 6,612,549 133,769 6,746,318 1,152,234
1 Other 1,376,270 132,425 1,508,695 -
Internal balances (3,574,883) 3,574,883 - -
Inventory 364,708 1,792,390 2,157,098 -
Prepaid items 821,692 925,210 1,746,902 96,377
Other assets 47,503 - 47,503 -
Deferred charges - 5,889,842 5,889,842 -
Restricted assets:
Cash and cash equivalents 233,983 71,890,911 72,124,894 -
Capital assets not being depreciated 15,742,812 16,212,956 31,955,768 1,469,797
Capital assets net of accumulated depreciation 148,886,239 221,811,799 370,698,038 890,188
Total assets 211,328,384 335,195,103 546,523,487 31,823,374
Liabilities
Accounts payable-trade 3,002,629 3,804,094 6,806,723 6,347
Accrued payroll 2,388,370 648,311 3,036,681 -
Payable to government agencies 375,418 78,252 453,670 -
Estimated health claims payable 426,734 - 426,734 -
Other liabilities 3,853,610 1,147,359 5,000,969 -
Unearned revenue 42,619 - 42,619 -
Customer deposits - 2,679,389 2,679,389 -
Long-term liabilities:
Portion due or payable within one year 4,671,420 7,476,206 12,147,626 -
Portion due or payable after one year 41,949,767 139,519,654 181,469,421 -
Total liabilities 56,710,567 155,353,265 212,063,832 6,347
Net Assets
Invested in capital assets,net of related debt 138,550,295 156,170,924 294,721,219 2,359,985
Restricted for debt service 1,186,730 12,958,909 14,145,639 -
Unrestricted 14,880,792 10,712,005 25,592,797 29,457,042
Total net assets $ 154,617,817 $ 179,841,838 $334,459,655 $31,817,027
See accompanying notes to the basic financial statements.
13
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
Administrative services $ 12,026,311 $ 4,267,891 $ 667,422 -
Police 21,008,696 470,020 1,931,580 -
Fire 13,028,146 4,369 63,400 -
Parks and recreation 5,757,363 513,682 130,712 -
Accounting/finance 2,473,024 - -Community development 7,584,142 891,803 5,236,271 -
Public works 8,282,184 165,363 - -
Health 4,995,764 888,890 1,749,518 -
Traffic and transportation 2,499,869 164,350 - 1,631,109
Multi-Purpose Events Center 4,027,612 1,789,269 - -
Interest and fees on long-term debt 1,620,854 - 1,112,118 -
Total governmental activities 83,303,965 9,155,637 10,891,021 1,631,109
Business-type activities:
Municipal Airport 289,195 544,332 - -
Kickapoo Airport 1,354,624 745,444 - -
Transit 1,616,322 229,483 1,142,191 267,629
Sanitation 8,509,153 12,025,478 - -
Water and sewer 30,165,844 33,888,553 - 189,114
Stormwater drainage 477,415 1,252,544 - -
Total business-type activities 42,412,553 48,685,834 1,142,191 456,743
Total primary government $ 125,716,518 $ 57,841,471 $ 12,033,212 $ 2,087,852
Component units:
Community development $ 5,808,624 $ 106,800 $ 241,072 $ -
General revenues and transfers:
Taxes:
Property tax
Sales tax
Franchise fees
Hotel occupancy tax
Beverage tax
Bingo tax
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets-beginning
Prior period adjustment
Net assets-ending
See accompanying notes to the basic financial statements.
14
EXHIBIT A-2
Net(Expense)Revenue and
Changes in Net Assets
Primary Government
Governmental Business-type Component
Activities Activities Total Units
$ (7,090,998) $ - $ (7,090,998) $ -
(18,607,096) - (18,607,096) -
(12,960,377) - (12,960,377) -
(5,112,969) - (5,112,969) -
(2,473,024) - (2,473,024) -
(1,456,068) - (1,456,068) -
(8,116,821) - (8,116,821) -
(2,357,356) - (2,357,356) -
(704,410) - (704,410) -
(2,238,343) - (2,238,343) -
(508,736) - (508,736) -
(61,626,198) - (61,626,198) -
- 255,137 255,137 -
- (609,180) (609,180) -
- 22,981 22,981 -
- 3,516,325 3,516,325 -
- 3,911,823 3,911,823 -
- 775,129 775,129 -
- 7,872,215 7,872,215 -
(61,626,198) 7,872,215 (53,753,983) -
- - - (5,460,752)
27,869,849 - 27,869,849 229,939
20,451,906 - 20,451,906 6,817,302
5,570,399 - 5,570,399 -
1,506,423 - 1,506,423 -
249,121 - 249,121 -
109,739 - 109,739 -
415,156 602,872 1,018,028 237,040
134,983 147,536 282,519 10,669
(2,439,625) 2,439,625 - -
53,867,951 3,190,033 57,057,984 7,294,950
(7,758,247) 11,062,248 3,304,001 1,834,198
162,690,866 168,779,590 331,470,456 29,982,829
(314,802) - (314,802) -
$ 154,617,817 $ 179,841,838 $ 334,459,655 $ 31,817,027
EXHIBIT A-3
CITY OF WICHITA FALLS, TEXAS
BALANCE SHEET-GOVERNMENTAL FUNDS
SEPTEMBER 30, 2009
Total
Nonmajor Governmental
General Governmental Funds
Assets
Cash and cash equivalents $ 15,561,199 $ 21,647,996 $ 37,209,195
Receivables(net):
Taxes and assessments 865,692 187,737 1,053,429
Other City funds 1,745,327 - 1,745,327
Government agencies 3,749,451 2,863,098 6,612,549
Other 1,215,161 137,054 1,352,215
Inventory 274,910 76,007 350,917
Prepaid items 160,764 657,345 818,109
Other assets - 47,503 47,503
Total assets $ 23,572,504 $ 25,616,740 $ 49,189,244
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 1,853,830 $ 1,001,653 $ 2,855,483
Accrued payroll 2,208,017 172,204 2,380,221
Payable to other City funds - 1,630,658 1,630,658
Payable to government agencies 282,221 93,197 375,418
Other liabilities 3,280,460 573,152 3,853,612
Deferred revenue 1,327,916 119,159 1,447,075
Claims and judgments payable 78,403 - 78,403
Total liabilities 9,030,847 3,590,023 12,620,870
Fund balances:
Reserved for encumbrances 1,063,879 4,148,055 5,211,934
Reserved for inventory and prepaid items 435,734 - 435,734
Reserved for debt service - 1,223,854 1,223,854
Reserved for perpetual care - 882,711 882,711
Unreserved, designated for subsequent
years expenditures reported in:
General Fund 3,000,000 - 3,000,000
Special Revenue Funds - 4,807,151 4,807,151
Capital Projects Funds - 10,963,970 10,963,970
Unreserved, undesignated reported in:
General Fund 10,042,044 - 10,042,044
Special Revenue Fund - 976 976
Total fund balances 14,541,657 22,026,717 36,568,374
Total liabilities and fund balances $ 23,572,504 $ 25,616,740 $ 49,189,244
See accompanying notes to the basic financial statements.
15
EXHIBIT A-4
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2009
Total fund balances - governmental funds (Exhibit A-3) $ 36,568,374
Amounts reported for governmental activities in the Statement of Net Assets (Exhibit A-1)
are different because:
Capital assets used in governmental activities are not financial resources and therefore not
reported in the funds. Capital assets at year-end consist of:
Gross capital assets $269,775,609
Related accumulated depreciation 105,200,289 164,575,320
Property taxes receivable and municipal court fines are not available to pay for current
period expenditures and therefore are deferred in the funds. 1,404,456
Long-term liabilities are not due and payable in the current period and therefore
not reported as liabilities in the funds. Long-term liabilities at year-end consist of:
General obligation bonds payable 39,059,726
Accrued vacation and sick leave 6,948,720
Claims and judgments payable 122,360
Accrued interest 411,978 (46,542,784)
Internal service funds are used by management to charge the costs of duplicating services
and health insurance claims to the individual funds. The assets and liabilities of these
internal service funds are included with the governmental activities. 2,235,293
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. (3,622,842)
Total net assets -governmental activities (Exhibit A-1) $ 154,617,817
See accompanying notes to the basic financial statements.
16
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, 2009
Total
Nonmajor Governmental
General Governmental Funds
Revenues
Taxes $ 53,371,597 $ 2,381,385 $ 55,752,982
Charges for services 2,806,223 883,494 3,689,717
Licenses and permits 1,887,434 - 1,887,434
Fines and forfeitures 1,800,057 170,555 1,970,612
Intergovernmental revenue 54,409 9,232,962 9,287,371
Contributions 230,964 3,003,795 3,234,759
Miscellaneous revenue 1,047,597 2,756,841 3,804,438
Total revenues 61,198,281 18,429,032 79,627,313
Expenditures
Administrative services 9,647,055 1,668,296 11,315,351
Police 19,693,683 488,467 20,182,150
Fire 12,801,912 31,271 12,833,183
Parks and recreation 5,073,828 383,582 5,457,410
Accounting/finance 2,327,608 - 2,327,608
Community development 1,798,241 5,635,376 7,433,617
Public works 5,200,391 251,781 5,452,172
Health 2,992,015 1,958,198 4,950,213
Traffic and transportation 2,156,060 136,830 2,292,890
Multi-Purpose Events Center - 3,208,713 3,208,713
Capital outlay 3,051,918 9,037,010 12,088,928
Debt service-principal - 2,065,000 2,065,000
Debt service- interest and paying agent fees - 1,364,831 1,364,831
Total expenditures 64,742,711 26,229,355 90,972,066
Excess of revenues over(under) expenditures (3,544,430) (7,800,323) (11,344,753)
Other Financing Sources (Uses)
Bond proceeds - 10,840,779 10,840,779
Transfers in 2,254,477 3,275,832 5,530,309
Transfers out (1,355,660) (8,077,605) (9,433,265)
Total other financing sources (uses) 898,817 6,039,006 6,937,823
Net change in fund balance (2,645,613) (1,761,317) (4,406,930)
Fund balances - beginning 17,187,270 24,102,836 41,290,106
Prior period adjustment - (314,802) (314,802)
Fund balances-ending $ 14,541,657 $ 22,026,717 $ 36,568,374
See accompanying notes to the basic financial statements.
17
EXHIBIT A-6
CITY OF WICHITA FALLS, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30,2009
Net change in fund balances-total governmental funds(Exhibit A-5) $ (4,406,930)
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 $ 12,553,392
Depreciation expense for the year 5,564,509 6,988,883
Proceeds from the sale of capital assets are recorded as revenues when received in the
governmental funds. In the Statement of Activities, the difference between the proceeds
and the book value of the capital asset is reported as a gain (loss)from sale. (711,362)
Because property tax receivables and municipal court receivables will not be collected for
several months after the City's fiscal year ends, they are not considered'available'revenues and
are deferred in the governmental funds. Deferred revenues decreased by this amount this year. (127,333)
The issuance of long-term debt provides current financial resources to governmental funds.
However, the issuance increases long-term liabilities in the Statement of Net Assets. Long-
term debt issued in 2008-2009 was: (10,820,000)
Repayment of long-term debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the Statement of Net Assets. Bond principal
payments in 2008-09 were: 2,107,502
Included in long-term debt are obligations for accrued vacation and sick leave, and claims
and judgments payable. The changes in these obligations are not included in the
governmental fund financial statements, but are included in the government-wide
financial statements. The changes in these long-term obligations were:
Accrued vacation and sick leave (150,110)
Claims and judgments payable 17,836 (132,274)
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 increase in accrued interest is as follows:
Accrued interest at September 30,2008 113,453
Accrued interest at September 30,2009 411,978 (298,525)
Internal service funds are used by management to charge the costs of duplicating services
and health insurance claims to the individual funds.The net revenues of these
internal service funds are included with the governmental activities. 205,196
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. (563,404)
Change in net assets of governmental activities(Exhibit A-2) $ (7,758,247)
See accompanying notes to the basic financial statements.
18
EXHIBIT A-7
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30,2009
Enterprise Funds
Non major
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
' Assets
Current assets:
Cash and cash equivalents $ 484,456 $ 2,086,729 $ 4,462,446 $ 7,033,631 $ 2,944,178
Restricted cash and cash equivalents 71,738,443 - 152,468 71,890,911 233,983
Receivables(net):
Customer and trade 4,018,320 1,265,961 123,714 5,407,995 -
Government agencies 51,419 - 82,350 133,769 -
Other 53,200 - 52,648 105,848 50,634
Inventory 1,001,765 - 44,118 1,045,883 760,298
Prepaid items 601 116 7,271 7,988 920,805
Total current assets 77,348,204 3,352,806 4,925,015 85,626,025 4,909,898
Long-term assets:
Deferred charges 5,889,842 - - 5,889,842 -
Capital assets, net of accumulated
depreciation 192,707,951 5,979,281 20,731,482 219,418,714 18,659,772
Total long-term assets 198,597,793 5,979,281 20,731,482 225,308,556 18,659,772
Total assets 275,945,997 9,332,087 25,656,497 310,934,581 23,569,670
See accompanying notes to the basic financial statements.
19
CITY OF WICHITA FALLS, TEXAS EXHIBIT A-7
(Page 2 of 2)
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30,2009
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Liabilities
Current liabilities:
Accounts payable-trade 3,209,578 380,484 74,687 3,664,749 286,491
Accrued payroll 362,138 142,445 53,828 558,411 98,049
Accrued vacation and sick leave 297,300 117,222 34,236 448,758 75,415
Payable to other City funds 102,605 - - 102,605 12,064
Payable to government agencies - 64,055 14,197 78,252 -
Estimated health claims payable - - - - 426,734
Other liabilities 1,100,727 32,306 11,326 1,144,359 3,000
Capital leases-current maturities - - - - 172,843
Revenue bonds-current maturities 5,725,728 - - 5,725,728 -
Accrued interest-revenue bonds 1,046,493 - - 1,046,493 -
Total current liabilities 11,844,569 736,512 188,274 12,769,355 1,074,596
Long-term liabilities:
Payable to U.S. Government 640,376 - - 640,376 -
Capital leases, less current maturities - - - - 549,621
Revenue bonds, less current maturities 135,120,782 - - 135,120,782 -
Estimated liability for landfill closure and
post-closure care costs - 3,218,379 - 3,218,379 -
Customer deposits 2,679,389 - - 2,679,389 -
Total long-term liabilities 138,440,547 3,218,379 - 141,658,926 549,621
Total liabilities 150,285,116 3,954,891 188,274 154,428,281 1,624,217
Net Assets
Invested in capital assets, net of
related debt 110,854,120 5,979,281 20,731,482 137,564,883 18,659,772
Restricted for debt service 12,958,909 - - 12,958,909 -
Unrestricted 1,847,852 (602,085) 4,736,741 5,982,508 3,285,681
Total net assets $125,660,881 $ 5,377,196 $ 25,468,223 156,506,300 $21,945,453
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 23,335,538
Net assets of business type activities $179,841,838
See accompanying notes to the basic financial statements.
20
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EXHIBIT A-8
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Operating revenues:
Charges for services $ 33,780,980 $12,014,863 $ 1,475,450 $47,271,293 $ 8,653,867
Rents,concessions and other 107,573 10,613 1,296,353 1,414,539 258,784
Contributions - - - - 8,766,056
Total operating revenues 33,888,553 12,025,476 2,771,803 48,685,832 17,678,707
Operating expenses:
Personnel services 8,174,973 3,416,845 1,266,632 12,858,450 1,993,968
Supplies and materials 2,402,376 265,868 621,766 3,290,010 2,934,463
Maintenance and repairs 1,999,917 419,279 438,665 2,857,861 1,522,513
Utilities and other services 5,138,515 3,495,963 367,882 9,002,360 128,922
Insurance and contract support 443,322 45,437 77,988 566,747 7,708,641
Other expenses 1,387,642 524,158 490,474 2,402,274 1,294,467
Depreciation and amortization 5,096,664 128,670 478,509 5,703,843 3,184,781
Total operating expenses 24,643,409 8,296,220 3,741,916 36,681,545 18,767,755
Operating income(loss) 9,245,144 3,729,256 (970,113) 12,004,287 (1,089,048)
Nonoperating revenues(expenses):
Interest income 556,991 13,654 32,225 602,870 45,146
Gain/(loss)on sale/abandonment of capital assets (111,479) (20,415) (49,376) (181,270) 147,537
Interest expense and paying agent fees (6,327,372) - - (6,327,372) -
Intergovernmental operating grants - - 1,142,191 1,142,191 -
Total nonoperating revenues(expenses) (5,881,860) (6,761) 1,125,040 (4,763,581) 192,683
Income(loss)before contributions and transfers 3,363,284 3,722,495 154,927 7,240,706 (896,365)
Capital contributions 189,114 - 267,829 456,943 -
Transfers in 169,823 520,554 5,859,827 6,550,204 4,283,460
Transfers out (1,469,942) (4,583,264) (565,503) (6,618,709) (312,000)
Change in net assets 2,252,279 (340,215) 5,717,080 7,629,144 3,075,095
Net assets-beginning 123,408,602 5,717,411 19,751,343 18,870,358
Net assets-ending $125,660,881 $ 5,377,196 $25,468,423 $ 21,945,453
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 3,433,304
Change in net assets of business type activities $ 11,062,448
See accompanying notes to the basic financial statements.
21
EXHIBIT A-9
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Cash flows from operating activities:
Received from customers and users $ 33,543,707 $ 11,784,604 $ 3,004,194 $ 48,332,505 $ 18,446,825
Payments to suppliers (11,618,863) (5,157,282) (2,234,238) (19,010,383) (15,579,480)
Payments to employees (5,994,959) (2,500,959) (984,779) (9,480,697) (1,491,818)
Net cash provided by(used in)operating activities 15,929,885 4,126,363 (214,823) 19,841,425 1,375,527
Cash flows from noncapital financing activities:
Intergovernmental operating grants - - 1,142,191 1,142,191 -
Interfund loan - - (192,684) (192,684) 12,064
Transfers in from other funds 169,823 520,554 5,859,827 6,550,204 4,283,460
Transfers out to other funds (1,469,942) (4,583,264) (565,503) (6,618,709) (312,000)
Net cash provided(used)by noncapital financing activities (1,300,119) (4,062,710) 6,243,831 881,002 3,983,524
Cash flows from capital and related financing activities:
Capital contributions - - 267,829 267,829 -
Acquisition and construction of capital assets (14,019,670) (840,714) (5,354,188) (20,214,572) (5,890,593)
Proceeds from sale of capital assets 4,863 - - 4,863 166,680
Principal paid on long-term debt (5,195,161) - - (5,195,161) -
Interest and fees paid on long-term debt (6,367,996) - - (6,367,996) -
Net cash provided by(used for)capital and related
financing activities (25,577,964) (840,714) (5,086,359) (31,505,037) (5,723,913)
Cash flows from investing activities:
Interest on investments 556,991 13,655 32,225 602,871 45,146
Net cash provided by(used for)investing activities 556,991 13,655 32,225 602,871 45,146
Net Increase(Decrease)in Cash and Cash Equivalents (10,391,207) (763,406) 974,874 (10,179,739) (319,716)
Cash and Cash Equivalents-Beginning 82,614,106 2,850,135 3,640,040 89,104,281 3,497,877
Cash and Cash Equivalents-Ending $ 72,222,899 $ 2,086,729 $ 4,614,914 $ 78,924,542 $ 3,178,161
Reconciliation of cash and cash equivalents on the balance
sheet to the statement of cash flows:
Cash and cash equivalents $ 484,456 $ 2,086,729 $ 4,462,446 $ 7,033,631 $ 2,944,178
Restricted assets-cash and cash equivalents 71,738,443 - 152,468 71,890,911 233,983
Total cash and cash equivalents at end of year $ 72,222,899 $ 2,086,729 $ 4,614,914 $ 78,924,542 $ 3,178,161
See accompanying notes to the basic financial statements.
22
EXHIBIT A-9
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2009
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Reconciliation of Operating Income(Loss)to Net Cash
Provided by(Used in)Operating Activities:
Operating income(loss) $ 9,245,144 $ 3,729,256 $ (970,113) $ 12,004,287 $ (1,089,048)
Adjustments to reconcile operating income(loss)
to net cash provided by(used in)operating
activities:
Depreciation and amortization 5,096,664 128,670 478,509 5,703,843 3,184,781
Customer deposits received 52,368 - - 52,368 -
(Increase)decrease in current assets:
Receivables:
Customer and trade (402,916) (240,872) 3,068 (640,720) -
Government agencies - - 230,898 230,898 -
Other 5,702 - (1,375) 4,327 45,654
Inventory 33,442 - 18,016 51,458 78,011
Prepaid items 28,652 2,500 (2,268) 28,884 (906,361)
Other assets - - 2,000 2,000 -
Increase(decrease)in current liabilities:
Accounts payable-trade 1,956,548 297,851 16,599 2,270,998 (589,737)
Accrued payroll 46,763 6,026 (295) 52,494 17,346
Accrued vacation and sick leave 15,754 3,639 (3,543) 15,850 13,881
Payable to other City funds 86,568 - - 86,568 -
Estimated health claims payable - - - - (101,464)
Payable to government agencies - 2,521 13,881 16,402 -
Other liabilities (234,804) 3,491 - (231,313) 722,464
Estimated liability for landfill closure - 193,281 - 193,281 -
Total adjustments 6,684,741 397,107 755,490 7,837,338 2,464,575
Net cash provided by(used in)
operating activities $ 15,929,885 $ 4,126,363 $ (214,623) $ 19,841,625 $ 1,375,527
Noncash capital and financing activities:
Capital assets received from developers $ 189,114 $ - $ - $ 189,114 $ -
See accompanying notes to the basic financial statements.
23
EXHIBIT A-10
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
SEPTEMBER 30, 2009
Agency
Fund
Assets
Cash and cash equivalents $ 308,461
Liabilities
Other liabilities $ 308,461
See accompanying notes to the basic financial statements.
24
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the City of Wichita Falls, Texas (City) conform to
accounting principles generally accepted in the United States of America (GAAP) applicable to
state and local governments. GAAP for local governments includes those principles prescribed by
the Governmental Accounting Standards Board (GASB), which includes all statements and
interpretations of the National Council on Governmental Accounting (NCGA) unless modified by
the GASB, and those principles prescribed by the American Institute of Certified Public
Accountants in the publication entitled Audits of State and Local Governmental Units. The
following is a summary of the more significant policies and practices used by the City.
A. Reporting Entity
The City is a municipal corporation governed by an elected Mayor and six-member City Council.
As required by Governmental Accounting Standards Board (GASB) Statement No. 39, these
financial statements present the City and its component units, entities for which the City is
considered to be financially accountable. Blended component units, although legally separate
entities, are in substance, part of the City's operations and data from these units are combined with
data presented by the City. A discretely presented component unit, on the other hand, is reported
in a separate column in the basic financial statements to emphasize it is legally separate from the
City. Each blended and discretely presented component unit has a September 30th year end.
Blended Component Unit
Employee Benefit Trust Fund. On October 1, 1983, an "Agreement and Declaration of Trust"
was made and entered into between the City and the Employee Benefit Trust Committee,
acting as Trustee to administer the Employee Benefit Trust (Trust). The Trust Committee
consists of four Trustees selected by the City, who may, but need not be, beneficiaries of the
health and welfare program funded by the Trust, and/or officers or employees of the City. The
purpose of the Trust is to provide health and welfare benefits, which may include life,
accidental death and dismemberment, disability, medical and dental insurance, and any other
benefits as determined by the Trustee Committee. The Trust is funded through contributions
by the City and employees who choose to participate. It may be terminated in writing, at any
time, by either party. The Employee Benefit Trust Fund is presented in the accompanying
financial statements as an internal service fund.
Discretely Presented Component Units
The Wichita Falls Economic Development Corporation. The Wichita Falls Economic
Development Corporation is a non-profit corporation formed in May 1997 for the purpose of
increasing employment opportunities, primarily through assisting qualifying enterprises with
funds provided by a portion of the local sales tax. Assistance may be in the form of incentive
grants, loans or leases which call for discounted rates or rebates for job development. The
Corporation operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A.
Since the City Council appoints its Board of Directors, approves its budgets, and exercises final
authority over its operations, the Wichita Falls Economic Development Corporation is
considered to be part of the City's reporting entity and presented in the accompanying basic
financial statements as a discretely presented component unit. The Wichita Falls Economic
Development Corporation utilizes full accrual accounting.
25
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2009
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
The Wichita Falls 48 Sales Tax Corporation. The Wichita Falls 4B Sales Tax Corporation is a
non-profit corporation formed in May 1997 for the purpose of increasing employment
opportunities and for public improvement projects such as parks, auditoriums, learning centers,
open space improvements, athletic and exhibition facilities, and the related maintenance and
operating costs of such projects. The Corporation operates under the authorityof Vernon's
P 9 P P
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#1. On March 18, 1986, 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 #1 (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 650 acres and includes the central business district 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, 1986, 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 terminated on
December 31, 2008. 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 #1 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 #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.
26
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
No separate audited financial statements are available for the City's blended and discretely
presented component units. Complete financial statements for the individual component units
may be obtained from the City's Assistant City Manager/CFO at 1300 7th Street, Wichita Falls,
Texas.
Excluded From the Reporting Entity
Wichita Falls Firemen's Relief and Retirement Fund. The Wichita Falls Firemen's Relief and
Retirement Fund was established and is controlled through various State of Texas legislative
enactments. This Fund is administered locally by a seven-member board, independent of the
City Council. City management and the City Council do not influence or control the
administrative and financial affairs of the Fund, and the assets of the Fund are not the
property of the City. The seven-member Board of Trustees, composed of the Mayor, the
Senior Accountant from the City's Finance Department, three firefighters elected by a majority
vote of the firefighters and two citizens, who are not employees or officers of the City and are
chosen by the unanimous vote of the first five Trustees, are subject to the administrative
supervision of and report to the State Firemen's Pension Board. The activities of the
Firemen's Relief and Retirement Fund, in the City's judgment, are not a part of the City and
thus are excluded from the accompanying financial statements.
B. Basis of Presentation
Government-wide financial statements
The basic financial statements include both government-wide (based on the City as a whole) and
fund financial statements. The government-wide financial statements (i.e., the statement of net
assets and the statement of activities) report information on all non-fiduciary activities of the
primary government and its component units. For the most part, the effect of interfund activity has
been removed from these statements. However, interfund services provided and used are not
eliminated in the process of consolidation. Governmental activities, which normally are 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.
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.
27
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
Fund financial statements
Separate fund-based financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major enterprise funds are reported as
separate columns in the fund financial statements. GASB Statement No. 34 sets forth minimum
criteria (percentage of assets, liabilities, revenues or expenditures/expenses of either fund category
for governmental and enterprise) for the determination of major funds. The major governmental
fund is the General Fund. The major enterprise funds are the Water and Sewer Fund and the
Sanitation Fund. Non-major funds are combined in a column in the fund financial statements.
Non-major funds are detailed in the combining section of the statements.
Internal service funds, which traditionally provide services primarily to other funds of the
government, are presented in the summary form as part of the proprietary fund financial
statements. Because the principal users of internal services are the City's governmental and
business-type activities, financial statements of internal service funds are allocated (based on the
percentage of goods or services provided) between the governmental and business-type activities
when presented at the government-wide level.
The government-wide focus is more on the sustainability of the City as an entity and the change in
aggregate financial position resulting from the activities of the fiscal period. The focus of the fund
financial statements is on the major individual funds of the governmental and business-type
categories. Each presentation provides valuable information that can be analyzed and compared
to enhance the usefulness of the information.
C. Measurement focus, basis of accounting and financial statement presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary funds. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year in which they
are levied. Grants and similar items are recognized as soon as all eligibility requirements imposed
by the provider have been met.
Government fund-level financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as
well as expenditures related to compensated absences and claims and judgments, are recorded
only when payment is due.
Property tax, franchise fees, and sales tax associated with the current fiscal period are all
susceptible to accrual and have been recognized as revenues of the current fiscal period. All of the
revenue items are considered to be measurable and available only when cash is received.
28
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
The City reports the following major governmental fund:
The General Fund is the City's primary operating fund. All general tax revenues and other
receipts that are not allocated by law or contractual agreement to some other fund are
accounted for in this fund. From the fund are paid general operating costs, fixed charges, and
capital improvement costs that are not paid through other funds.
Other governmental funds are a summarization of all the non-major governmental funds.
The City reports the following major proprietary funds:
The Water and Sewer Fund accounts for water and sewer utility services to residents of the
City. Activities necessary to provide such services are accounted for in the fund, including, but
not limited to, administration, operations, maintenance, finance and related debt service.
The Sanitation Fund accounts for refuse collection services to the residents of the City as well
as the operations of the City's landfill. Activities necessary to provide such services are
accounted for in the fund, including, but not limited to, administration, operations and
maintenance.
Other enterprise funds are a summarization of all of the non-major proprietary funds.
The City additionally reports the following fund types:
Internal service funds are used to account for the financing of materials and services provided
by one department of the City to other departments of the City on a cost-reimbursement basis.
The City uses internal service funds to report the activities of fleet maintenance, duplicating
services, and employee health and life insurance.
An agency fund is used to account for any unclaimed vendor or payroll checks that will be
escheated to the State if they remain unclaimed. These funds are held on a purely custodial
basis.
GASB Statement No. 34 eliminates the presentation of account groups but provides for these
records to be maintained and incorporates the information into the Governmental Activities column
in the government-wide Statement of Net Assets.
Private-sector standards of accounting and financial reporting (as issued by the Financial
Accounting Standards Board) issued prior to December 1, 1989, generally are followed in both the
government-wide and proprietary fund financial statements to the extent that those standards do
not conflict with or contradict guidance of the Governmental Accounting Standards Board.
Governments also have the option of following subsequent private-sector guidance for their
business-type activities and enterprise funds, subject to this same limitation. The City has elected
not to follow subsequent private-sector guidance.
29
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2009
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expense generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The principal
operating revenues of the City's water and sewer, sanitation, transit, and airport funds are charges
to customers for services. Operating expenses for the enterprise funds and internal service funds
include the cost of sales and services, administrative expenses and depreciation on capital assets.
All revenues not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy
to use restricted resources first, then unrestricted resources as they are needed.
Capital improvement assessments are recorded as revenues in the fiscal period when the
assessment becomes both measurable and available to finance expenditures of the fiscal period.
Assessment revenues are considered measurable and available when collected by the City and
recognized as revenue at that time. Payments for capital improvement assessments received in
advance of the levy are reflected as deferred revenue.
D. Nonexchange Transactions
In a nonexchange transaction, a government gives (or receives) value without directly receiving (or
giving) equal value in return. The statement defines when the City should recognize revenue or
expense for nonexchange transactions involving financial or capital resources and how to account
for timing and purpose restrictions. The timing of recognition depends on whether a nonexchange
transaction is (a) a derived tax revenue (b) an imposed nonexchange revenue transaction or (c) a
government-mandated or voluntary nonexchange transaction. Under this standard, revenue
transactions with purpose restrictions are recorded as restricted resources until the purpose
restrictions are met.
Nonexchange transactions include the following classifications:
• Derived tax revenues result from assessments imposed by government on exchange
transactions.
• Imposed nonexchange revenues result from assessments by governments on
nongovernmental entities, other than assessments on exchange transactions.
• Government-mandated nonexchange transactions occur when a government at one level
provides resources to a government at another level and require that government to use
them for a specific purpose or purposes established in the provider's enabling legislation.
• Voluntary nonexchange transactions result from legislative or contractual agreements, other
than exchanges, entered into willingly by two or more parties. Examples of the City's
voluntary nonexchange transactions include capital grants, state shared revenue and private
donations.
30
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2009
Note 1 - SUMMARY OF SIGNIFICANT ACCO
UNTING 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 assets or equity
1. Cash, cash equivalents and investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits
and short-term investments with original maturities of three months or less from the date of
acquisition.
Investments are carried at fair value. Fair value is determined as the price at which two
willing parties would complete an exchange. Interest earned on investments is recorded in
the funds in which the investments are recorded.
2. Inventory and Prepaid Items
Inventories of the general and proprietary funds consist of supplies and various materials
used for the maintenance of fixed assets. The consumption method is used to account for
these inventories. Under this method, inventory acquisitions are recorded in inventory
accounts initially and charged as expenditures when used. Inventories are stated at
average cost.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government-wide and fund financial statements.
3. Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g.
roads, bridges, sidewalks and similar items), are reported in the applicable governmental
or business-like activities columns in the government-wide financial statements. The City
defines capital assets as assets with an initial, individual cost of more than $1,000 and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded
at estimated fair market value at the time received.
Capital assets are depreciated using the straight line method over the following useful
lives:
31
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2009
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
Assets Years
Buildings, systems and improvement 20-59 years
Infrastructure 8-100 years
Machinery, vehicles and other equipment 3 -25 years
Furniture and equipment 3 - 10 years
For business-like activities' capital assets, interest is capitalized on construction costs
incurred during the year at an average interest rate on borrowed funds (revenue bonds) in
accordance with generally accepted accounting principles.
For the fiscal year ended September 30, 2009, the City's business-like activities incurred a
total of $6,333,230 of interest costs. Of this amount, $5,858 was capitalized on
construction projects and $6,327,372 was charged to expense.
Contributions of funds from federal, state, or local grants restricted for the purpose of
purchasing plant and equipment are recorded as 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. Lona-Term Obligations
Long-term debt and other obligations for general government purposes are recorded in the
government-wide statement of net assets. Long-term debt and other obligations financed by
proprietary funds are reported as liabilities in the appropriate funds.
For thegovernment-wide financial statements and proprietary fund p p ry types, bond premiums
and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the straight-line method in the government-wide financial statements. Bonds
payable are reported net of the applicable bond premium or discount. Issuance costs are
reported as deferred bond issue costs and amortized over the term of the related debt. In
addition, gains or losses on proprietary fund bond refunding are amortized over the term of
the lesser of the new bonds or the refunded bonds' life using the effective interest method. In
the governmental fund financials, bond proceeds are reported as another financing source.
Bond premiums and discounts in governmental funds are also recognized currently as other
financing sources or uses. Issuance costs, even if withheld from the actual net proceeds
received, are reported as debt service expenditures.
5. Federal and State Grants
Grants and shared revenues are generally accounted for within the appropriate fund of the
City to be financed by such grants or shared revenues. Federal grants include Community
Development Block Grant, Section 8 Housing Assistance, Home Investment Partnership
Agreement Program, and numerous health-related grants.
Each Federal grant is accounted for in a separate special revenue fund. State grant
revenues received for purposes normally financed through the general government are
accounted for within the General Fund.
32
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
6. Reserves and Designations
Portions of fund equity are segregated for future use, and are therefore not available for
future appropriation or expenditure. Amounts reserved for revenue bond debt service and
retirement represent portions of fund equity which are required to be segregated in
accordance with the City's bond ordinances. Amounts reserved for inventory and prepaid
items have already been expended and represent a portion of the fund balance that is not
available for future expenditures. Amounts reserved for encumbrances are commitments
for materials and services on purchase orders and contracts which are unperformed.
Designations of unreserved fund balances in governmental funds indicate City
management's tentative plans for use of financial resources in a future period.
7. Transactions Between Funds
Outstanding balances between funds are reported as "due to/from other City funds." Any
residual balances between governmental activities and business-type activities are reported
in the government-wide statements as "internal balances." Nonrecurring or non-routine
transfers of equity between funds are accounted for as transfers.
8. Vacation and Sick Leave
All full-time employees accumulate vacation benefits based on length of service up to 15
days per year. The maximum allowable accumulation is 30 days. Upon leaving the
employment of the City, employees will be paid for unused vacation days which they have
accrued.
Sick leave is earned at the rate of 4.62 hours per pay period up to a maximum of ninety
days. Additionally, police officers and firefighters may accumulate an unlimited number of
sick leave days while employed with the City. Upon termination, police officers and
firefighters are compensated for up to 720 hours and 1,080 hours, respectively.
9. Risk Management
The government is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters for which the
government carries commercial insurance. For insured programs, there have been no
significant reductions in insurance coverage. Settlement amounts have not exceeded
insurance coverage for the current year or the three prior years.
The City maintains a group health insurance plan for employees and dependents which is
partially self-insured by the City. A group life insurance plan is maintained through an
insurance company. Contributions to the plans are provided for by both the City and
participating employees. These contributions are recognized as revenues in the internal
service fund used to account for these plans. The contributions made by the City are
recorded as expenditures or expenses of the various funds as appropriate.
33
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
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 $150,000. 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.
The City is also self-insured up to $250,000 for workers' compensation claims. Such
claims are processed by the City's risk management department. The City's estimated
liability for workers' compensation claims payable at September 30, 2009 is based on
management's estimate of probable losses in the amount of $200,763. 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. $78,403 is believed by City
management to be currently payable from available resources and is recorded in the
General Fund.
The following represents changes in the amount of claims liabilities for the City from
October 1, 2007 to September 30, 2009:
Health Workers'
Care Compensation
Liability balance, October 1, 2007 $ 476,004 $ 381,101
Incurred claims/adjustments 7,444,216 856,585
Claim payments ( 7,392.023) ( 914.909)
Liability balance, September 30, 2008 528,197 322,777
Incurred claims/adjustments 7,109,801 1,105,129
Claim payments ( 7,211,264) ( 1,227,143)
Liability balance, September 30, 2009 $ 426.734 $ 200.763
Note 2 - COMPLIANCE AND ACCOUNTABILITY
Finance-Related Legal and Contractual Provisions
In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures",
violations of finance-related legal and contractual provisions are reported below, along with actions
taken to address such violations.
Violation Action Taken
None
34
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
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, 2009, the total amount of the City's
demand and time deposits per the general ledger was $1,559,279, and the total amount per the
City's September 30, 2009 bank statements was $2,076,569. 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
State statutes. Authorized investments include obligations of the U.S. Treasury, agencies and
instrumentalities, obligations of the State of Texas and related agencies, obligations of states,
agencies, counties, cities and political subdivisions of any state rated A or above by a nationally
recognized investment rating firm, repurchase agreements, public funds investment pools, and
commercial paper.
The investments of the City and its discretely presented component units at September 30, 2009
are as follows:
Fair Value/ Average Weighted Average
Carrying Credit Quality/ Months to
Tvoes of Investments Amount Cost Ratings Maturity
Primary Government:
TexPool $ 58,481,988 $ 58,481,988 Not rated 1.00
LOGIC 46,838,832 46,838,832 Not rated 1.00
Money market account 11,026,373 11.026.373 Not rated 1.00
Total primary government
investments 116,347,193 116,347,193
Component Units:
TexPool 29.920.633 29.920.633 Not rated 1.00
Total component unit
investments 29,920.633 29,920,633
Total investments $146.267.826 $146.267.826
TexPool is a public funds investment pool administered by the Treasurer of the State of Texas
pursuant to the Interlocal Cooperation Act passed in 1989 by the 71st Texas Legislature. This Act
authorized the City to delegate to TexPool the authority to make investment purchases and to hold
legal title as custodian of the investment securities. All TexPool investments are in the possession
of the Texas Treasury Safekeeping Trust Company and held in its book-entry safekeeping account
at the Federal Reserve Bank of Dallas. The Texas Treasury Safekeeping Trust Company was
created in 1986 by the 69th Texas Legislature to enable the Treasurer of the State of Texas to
manage, safekeep, and invest public funds of state agencies and political subdivisions more
efficiently and economically. The fair value of the City's position in TexPool is the same as the
value of the pool shares.
35
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 3 - DEPOSITS AND INVESTMENTS (CONT'D.)
LOGIC was also established pursuant to the Interlocal Cooperation Act passed by the State of
Texas and is administered by Southwest Securities Group, Inc. LOGIC's governing body is a five-
member board of directors comprised of three government officials and two other persons with
expertise in public finance. LOGIC's investments are only those authorized by the Texas Public
Funds Investment Act governing pools for local governments. LOGIC presently offers two
investment pools, each of which is separately managed and has a different investment objective.
Each participating government owns an undivided beneficial interest in the assets of the pool
represented by units. Participants may terminate their participation in LOGIC at any time by
redeeming their units. The fair value of the City's position in LOGIC is the same as the value of the
pool shares.
GASB Statement No. 40 requires a determination as to whether the City was exposed to the
following specific investment risks at year end and if so, the reporting of certain related disclosures:
a. Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The ratings of securities by nationally recognized rating agencies are designed
to give an indication of credit risk. At year end, the City was not exposed to credit risk.
b. Custodial Credit Risk
Deposits are exposed to custodial credit risk if they are not covered by depository insurance
and the deposits are uncollateralized, collateralized with securities held by the pledging
financial institution, or collateralized with securities held by the pledging financial institution's
trust department or agent but not in the City's name.
Investment securities are exposed to custodial risk if the securities are uninsured, are not
registered in the name of the government, and are held by either the counterparty or the
counterparty's trust department or agent but not in the City's name.
At year end, the City was not exposed to custodial credit risk.
c. Concentration of Credit Risk
This risk is the risk of loss attributed to the magnitude of a government's investment in a
single issuer. At year end, the City was not exposed to concentration of credit risk.
d. Interest Rate Risk
This is the risk that changes in interest rates will adversely affect the fair value of an
investment. In accordance with its investment policy, the City manages its exposure to
interest rate risk by allowing no more than 20% of the City's portfolio to be invested for a
period greater than one year.
e. Foreign Currency Risk
This is the risk that exchange rates will adversely affect the fair value of an investment. At
year end, the City was not exposed to foreign currency risk.
36
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2009
Note 4- RECEIVABLES
Receivables at September 30, 2009 consist of the following:
Nonmajor Nonmajor Totals Totals
Governmental Water and Enterprise Internal Primary Component Reporting
General Funds Sewer Sanitation Funds Service Government Units Entity
Receivables:
Taxes and assessments $1,519,086 $ 245,743 $ - $ - $ - $ - $ 1,764,829 $ - $ 1,764,829
Customer and trade - - 5,005,767 1,598,491 169,788 - 6,774,046 - 6,774,046
Other City funds 1,745,327 - - - - - 1,745,327 - 1,745,327
Government agencies 3,749,451 2,863,098 51,419 - 82,350 - 6,746,318 1,152,234 7,898,552
Other 1.215.161 137.054 53.200 - 52.648 50.634 1.508.697 - 1.508.697
v Gross receivables 8,229,025 3,245,895 5,110,386 1,598,491 304,786 50,634 18,539,217 1,152,234 19,691,451
Less: Allowance for
uncollectible accounts ( 653.3941 ( 58.006) ( 987.447) ( 332.5301 ( 46,074) - ( 2.077.451) - ( 2.077.451)
Net total receivables $7575 631 $3 1R7 8R4 $4 122 939 11265.961 $2511712 $50 634 R16 461 766 $1 152 234 $17 614 000
There are no receivables, other than delinquent property taxes, that the City does not expect to collect within a year. The City expects to collect
approximately$300,000 of the$1,651,057 total delinquent property taxes. This amount is similar to the amounts collected in previous years.
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2009
Note 5 - PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of the prior January 1. Taxes are levied
on October 1, and become delinquent after January 31, unless the half-payment option is elected,
in which case one-half of the tax is due November 30, and the balance the following June 30.
The City is permitted by its Home Rule Charter to levy taxes up to $2.25 per $100 of assessed
valuation for general governmental services including the payment of principal and interest on long-
term debt. The combined tax rate to finance general governmental services for the year ended
September 30, 2009 was $.59246 per $100 which means that the City has a tax margin of
$1.65754 per $100, and could raise up to $73,443,209 additional tax revenue a year from the
present assessed valuation of$4,430,855,934 before the limit is reached.
Note 6 - RESTRICTED ASSETS
Restricted assets in the Water and Sewer Fund, Municipal Airport Fund, and Internal Service
Funds, are held for specific purposes in accordance with bond ordinances or other legal
restrictions.
Water and Sewer restricted assets are comprised of the following:
For Debt Service:
Cash and cash equivalents $12,958,909
For Capital Improvements:
Cash and cash equivalents 58,779,534
Total $71,738.443
Municipal Airport restricted assets are comprised of the following:
For Passenger Fare Charges:
Cash and cash equivalents $ 152.468
Internal Service Fund restricted assets are comprised of the following:
For Employee Insurance:
Cash and cash equivalents $ 233.983
38
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 7 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2009 was as follows:
Balance Balance
Governmental activities: October 1, September 30,
2008 Increases Decreases 2009
Capital assets not being depreciated:
Land $ 8,802,295 $ 340,857 $ - $ 9,143,152
Construction in progress 8.287.642 5,326,413 7,014,395 6.599.660
Total capital assets not being depreciated 17,089.937 5,667,270 7,014,395 15,742.812
Capital assets being depreciated:
Land betterments 22,836,942 719,132 192,485 23,363,589
Buildings, systems and improvements 59,091,454 2,494,029 307,406 61,278,077
Infrastructure 144,538,907 10,205,859 1.896,249 152,848,517
Machinery and equipment 16,885,831 481,499 914,034 16,453,296
Furniture and fixtures 213,647 - 7.955 205.692
Total capital assets being depreciated 243.566.781 13.900.519 3,318,129 254.149.171
Less accumulated depreciation for:
Land betterments 2,825,018 488,331 2R,740 3,284,609
Buildings, systems and improvements 13,155,752 1,248,163 279,819 14,124,096
Infrastructure 79,703,066 2,851,808 1,458,123 81,096,751
Machinery and equipment 6,414,627 979,948 832,129 6,562,446
Furniture and fixtures 200,016 2.968 7,954 195.030
Total accumulated depreciation 102.298.479 5,571,218 2,606,765 105,262.932
Total capital assets being depreciated, net 141.268.302 8,329,301 711.364 148,886,239
Governmental activities capital
assets, net $158.358.239 $13.996.571 $7,725,759 $164.629 051
39
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 7 - CAPITAL ASSETS(CONT'D.)
Balance Balance
Business-type activities: October 1, September 30,
2008 Increases Decreases 2009
Capital assets not being depreciated:
Land $ 8,465,722 $ - $ - $ 8,465,722
Construction in progress 15.759.168 10,254,054 18.265,988 7.747.234
Total capital assets not being depreciated 24.224.890 10,254,054 18.265.988 16.212.956
Capital assets being depreciated:
Land betterments 26,860,715 3,280,057 24,950 30,115,822
Buildings, systems and improvements 239,919,810 25,294,394 287,546 264,926,658
Machinery and equipment 6,725,105 431,747 409,487 6,747,365
Furniture and fixtures 44,227 - - 44,227
Motor vehicles 41.578,080 5,852,569 3.587.831 43,842.818
Total capital assets being depreciated 315.127.937 34.858.767 4.309.814 345.676.890
Less accumulated depreciation for:
Land betterments 11,294,068 506,782 4,011 11,796,839
Buildings, systems and improvements 74,506,460 4,785,823 171,730 79,120,553
Machinery and equipment 4,306,954 421,040 50,169 4,677,825
Furniture and fixtures 35,571 3,443 - 39,014
Motor vehicles 28,495.911 3.036.994 3.302.044 28.230.860
Total accumulated depreciation 118,638.964 8,754.082 3.527.954 123.865.091
Total capital assets being depreciated, net 196,488.973 26,104,685 781.860 221.811.799
Business-type activities capital
assets, net $220.713 863 $36.358.739 $19.047.848 $238.024.755
Depreciation expense was charged to functions as follows:
Governmental activities:
Administrative services $ 514,467
Police 689,010
Fire 140,521
Parks and recreation 224,077
Accounting/finance 148,852
Community development 15,809
Public works 2,658,130
Health 92,836
Traffic and transportation 270,540
Multi-Purpose Events Center 816.976
Total governmental depreciation $5,571,218
40
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 7 - CAPITAL ASSETS (CONT'D.)
Business-type activities:
Municipal Airport $ 67,818
Kickapoo Airport 312,322
Transit 303,083
Sanitation 2,323,112
Water and sewer 5,606,700
Stormwater drainage 80.923
Total business-type depreciation $8.693.958
Note 8 - PENSION PLANS
Texas Municipal Retirement System
Plan Description
The City provides pension benefits for all of its eligible employees, except firefighters, through
a nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal
Retirement System (TMRS), an agent multiple-employer public employee retirement system.
The plan provisions that have been adopted by the city are within the options available in the
governing state statutes of TMRS.
TMRS issues a publicly available comprehensive annual financial report that includes financial
statements and required supplementary information (RSI) for TMRS; the report also provides
detailed explanations of the contributions, benefits and actuarial methods and assumptions
used by the System. This report may be obtained by writing TMRS, P.O. Box 149153, Austin,
TX 78714-9153 or by calling 800-924-8677; in addition, the report is available on TMRS'
website at www.TMRS.org.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and
the City-financed monetary credits, with interest. At the date the plan began, the City granted
monetary credits for service rendered before the plan began of a theoretical amount equal to
two times what would have been contributed by the employee, with interest, prior to
establishment of the plan. Monetary credits for service since the plan began are a percent
(200%) of the employee's accumulated contributions. In addition, the City can grant, as often
as annually, another type of monetary credit referred to as an updated service credit which is a
theoretical amount which, when added to the employee's accumulated contributions and the
monetary credits for service since the plan began, would be the total monetary credits and
employee contributions accumulated with interest if the current employee contribution rate and
City matching percent had always been in existence and if the employee's salary had always
been the average of his salary in the last three years that are one year before the effective
date. At retirement, the benefit is calculated as if the sum of the employee's accumulated
contributions with interest were used to purchase an annuity.
Members can retire at ages 60 and above with 10 or more years of service or with 25 years of
service regardless of age. A member is vested after 10 years. The plan provisions are adopted
by the governing body of the City, within the options available in the state statutes governing
TMRS and within the actuarial constraints also in the statutes.
41
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 8 - PENSION PLANS (CONT'D.)
Contributions
The contribution rate for all employees is 5%, except police officers which is 7%, and the City
matching ratio is currently 2 to 1, both as adopted by the governing body of the City. Under the
state law governing TMRS, the actuary annually determines the City contribution rate. This rate
consists of the normal cost contribution rate and the prior service contribution rate, both of
which are calculated to be a level percent of payroll from year to year. The normal cost
contribution rate finances the currently accruing monetary credits due to the City matching
percent, which are the obligation of the City as of an employee's retirement date, not at the
time the employee's contributions are made. The normal cost contribution rate is the actuarially
determined percent of payroll necessary to satisfy the obligation of the City to each employee
at the time his/her retirement becomes effective. The prior service contribution rate amortizes
the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan's 25-year
amortization period. When the City periodically adopts updated service credits and increases in
annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-
year period. The unit credit actuarial cost method is used for determining the City contribution
rate. Both the employees and the City make contributions monthly. Since the City needs to
know its contribution rate in advance to budget for it, there is a one-year delay between the
actuarial valuation that is the basis for the rate and the calendar year when the rate goes into
effect(i.e. December 31, 2008 valuation is effective for rates beginning January 2010).
Wichita Falls Firemen's Relief and Retirement Fund
Plan Description
The City provides pension benefits for all of its firefighters through a single employer defined
benefit pension plan. The Wichita Falls Firemen's Relief and Retirement Fund (Fund) operates
under an act passed in 1937 by the Texas State Legislature and adopted by the City's
firefighters.
Benefits are determined on a "formula" or a "final salary" plan. A firefighter who qualifies for a
retirement benefit will receive monthlyretirement equal to2.28% °qua 2.10/° prior to August
( 5,
9
1998) of the firefighter's highest three year average salary calculated over the seventy-eight
consecutive pay periods during the firefighter's period of service covered by the Plan, which
produces the highest average, multiplied by 2.167.
Members can receive a service retirement at ages 50 and above with 20 or more years of
service. Members are eligible for actuariallyreduced earlyretirement benefits g e is before age 50,
provided the employee has accrued at least 20 years of service. The plan also provides death
and disability benefits. Members who terminate their service and are nonvested are entitled to
the excess of the member's contributions over any benefits previously received.
42
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2009
Note 8 - PENSION PLANS(CONT'D.)
Contributions
The contribution rate for the firefighters is 11% (increased from 9% effective August 5, 1998)
and the City contributes 10.46% (increased from 9% effective September 26, 2001). Both the
firefighters and City make contributions bi-weekly. Contribution requirements are not actuarially
determined, however, state law requires that each plan of benefits adopted by the Fund must
be approved by a qualified actuary. The actuary certifies that the contribution commitments by
the firefighters and the City provide an adequate financing arrangement. Using the entry age
actuarial cost method, the plan's normal cost is determined as a percentage of payroll. The
actuarial assumptions included (a) 8% investment rate of return (net of administrative
expenses, (b) projected salary increases due to inflation of 4.75% per year, compounded
annually, and (c) projected salary increases due to seniority/merit raises of 4.75% per year,
compounded annually. The actuarial value of assets was determined using techniques that
smooth the effects of short-term volatility in the market value of investments over a ten-year
period. The unfunded actuarial accrued liability is being amortized as a level percentage of
projected payroll on a closed basis. The remaining amortization period at December 31, 2008
was 24.8 years.
Schedule of Actuarial Liabilities and Funding Proaress
Texas
Municipal Firemen's
Retirement Relief and
System Retirement Total
Actuarial Valuation Date 12/31/08 12/31/08 *
Actuarial Value of Assets $ 68,910,226 $39,358,309 $108,268,535
Actuarial Accrued Liability(AAL) 122,001,202 41,639,485 163,640,687
Percentage Funded 56.5% 94.5% 63.2%
Unfunded Actuarial Accrued Liability(UAAL) 53,090,976 14,901,992 67,992,968
Annual Covered Payroll 38,272,312 8,915,419 47,187,731
UAAL as a Percentage of Covered Payroll 138.7% 167.1% 144.1%
Net Pension Obligation (NPO)at
the Beginning of the Period -0- -0- -0-
Annual Pension Cost:
Annual Required Contribution (ARC) $ 4,997,318 $ 973,378 $ 5,970,696
Interest on NPO -0- -0- -0-
Adjustment to the ARC -0- -0- -0-
Annual Pension Cost $ 4.997.318 $ 973.378 $ 5.970.696
43
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 8 - PENSION PLANS (CONT'D.)
Texas
Municipal Firemen's
Retirement Relief and
System Retirement Total
Percentage of Annual Pension Costs Contributed 100% 105% 102%
Contributions Made $ 4,997,318 $ 1,018,126 $ 6,015,444
Increase in NPO -0- -0- -0-
NPO At the End of the Period -0- -0- -0-
Two preceding years:
2007:
Annual Pension Cost $ 4,599,517 $ 1,014,374 $ 5,613,891
Percentage of Annual Pension Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
2006:
Annual Pension Cost $ 4,268,611 $ 836,038 $ 5,104,649
Percentage of Annual Pension Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
Actuarial Assumptions
Texas
Municipal Firemen's
Retirement Relief and
System Retirement
Actuarial Cost Method Projected Unit Credit Entry Age
Amortization Method Level Percent of Payroll Level Percent of Payroll
Remaining Amortization Period 29 Years 24.8 Years
Amortization Period Closed Closed
Asset Valuation Method Amortized Cost Smooth Market Value
Investment Rate of Return 7.5% 8%
Projected Salary Increases Varies by Age & Service 4.75%
Includes Inflation at 3.0% 4.75%
Cost-of-Living Adjustments 2.1% (3.0% CPI) None
Both of the stand-alone financial reports for the Texas Municipal Retirement System and
Firemen's Relief and Retirement Fund can be obtained from the City's Director of Finance at 1300
7th Street, Wichita Falls, Texas.
A schedule of funding progress is presented as required supplementary information for both the
Texas Municipal Retirement System and the Firemen's Relief and Retirement Fund. These
schedules provide multi-year trend information that shows whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
44
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Plan Description
The City administers the City of Wichita Falls Retiree Health Care Plan for all permanent
employees who retire after satisfying eligibility retirement requirements through a single-employer
defined benefit plan. All employees who retire and are actively in one of the City's health plans can
continue to receive health care benefits under the City's plan for themselves and any dependents
for as long as the retiree and/or dependents live. The plan does not issue a stand-alone financial
report.
Retiree Contributions Pre-Medicare Eligibility prior to 12/31/2008
Retirees share in the cost of the Plan by paying premiums according to the following schedule:
BC/BS BC/BS
Core Plan Enhanced Plan
Retiree Only(under 65) $160 $260
Retiree Only (over 65) N/A N/A
Retiree/Spouse (both < 65) $300 $460
Retiree/Spouse (both > 65) N/A N/A
Retiree/Spouse (1 >, 1 <65) $265 $425
Retiree/Child $275 $435
Retiree/Family $340 $540
Dental premiums are included in the under 65 premiums above.
Retiree Contributions Pre-Medicare Eliaibilitv After 1/1/2009
Retirees share in the cost of the Plan by paying premiums according to the following schedule:
BC/BS BC/BS
Core Plan Enhanced Plan
Retiree Only (under 65) $171 $278
Retiree Only (over 65) N/A N/A
Retiree/Spouse (both < 65) $321 $492
Retiree/Spouse (both > 65) N/A N/A
Retiree/Spouse (1 >, 1 < 65) $496 $603
Retiree/Child $294 $465
Retiree/Family $364 $578
Dental premiums are included in the under 65 premiums above.
45
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONT'D.)
Retiree Contributions for Medicare Eligible Retirees
Pre Post
12/31/2008 12/31/2008
Retiree Only $69 $75
Retiree and Spouse Both Medicare Eligible $140 $150
Retiree Only—Retired Prior to 12/31/2008
But Not Medicare Eligible as of 12/31/2008 N/A $225
Retiree and Spouse Retired Prior to 12/31/2008
But Neither Medicare Eligible Pre 12/31/2008 N/A $550
Retiree Only—Active Prior to 12/31/2008 But
Not Yet Medicare Eligible as of 12/31/2008 N/A $325
Retiree and Spouse Active Prior to 12/31/2008
But Neither Medicare Eligible Pre 12/31/2008 N/A $650
Benefits for Spouses of Retired Employees
Spouses of retirees are eligible to participate in a retiree health care program. Spouses are
eligible to continue with same coverage after the death of retiree.
Non-Medicare and Medicare-Eligible Provisions
Medicare-eligible retirees and spouses on Medicare are eligible to participate in a Medicare
supplement health care plan. Effective January 1, 2009, the following changes will be
implemented to Medicare eligible retirees:
For retirees already on Medicare as of January 1, 2009, the City will provide $250 in premium
assistance towards the full premium for a Medicare subsidy program. The $250 is expected to
be a fixed amount. Spouses currently covered in the health plan will also be eligible for the
$250 premium assistance.
For members retired as of January 1, 2009 but not yet Medicare-eligible, the City will provide
$100 in premium assistance towards the full premium for a Medicare subsidy program. The
$100 is expected to be a fixed amount. Spouses can participate in the Medicare subsidy
program, but will receive no premium assistance.
For members who retire on or after January 1, 2009, the City will provide no premium
assistance once Medicare-eligible.
Vision Coverage
There is no vision coverage provided.
Dental Coverage
Retirees and spouses prior to qualifying for Medicare are eligible to participate in the same dental
care program as active employees. There is no dental coverage for retiree or spouses on the
Medicare supplement.
46
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONT'D.)
Life Insurance Coveraoe
Life Insurance of $7,500 is provided to each retiree. There is no Life coverage for spouses of
retirees.
Funding Policy and Annual OPEB Cost
The City's annual other post-employment benefits (OPEB) cost is based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years. The City has established a
trust to fund the City's OPEB liability and intends on contributing quarterly installments to meet its
obligation.
The City has its first OPEB actuarial valuation performed for the fiscal year ending September 30,
2009 as required by GASB. The City's OPEB cost for the current year is as follows:
Annual Required Contribution $2,351,119
Interest on OPEB obligation -
Adjustment to ARC
Annual OPEB cost(expense) end of year 2,351,119
Net estimated employer contributions ( 2,282,238)
Increase (decrease) in net OPEB obligation 68,881
Net OPEB obligation— beginning of year Net OPEB obligation—end of year $ 68.881
Schedule of Actuarial Liabilities and Funding Status
Actuarial Valuation Date 12/31/08
Actuarial Value of Assets $ -
Actuarial Accrued Liabilities $32,143,378
Unfunded Actuarial Accrued Liability (UAAL) $32,143,378
Funded Ratio 0.00%
Annual Covered Payroll N/A
UAAL as a Percentage of Annual Covered Payroll N/A
Actuarial Methods and Assumptions
The Projected Unit Credit actuarial cost method is used to calculate the GASB ARC for the City's
retiree health care plan. Using the plan benefits, the present health premiums and a set of
actuarial assumptions, the anticipated future payments are projected. The projected unit credit
method then provides for a systematic funding for these anticipated payments. The yearly ARC is
computed to cover the cost of benefits being earned by covered members as well as to amortize a
portion of the accrued liability.
47
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2009
Note 9 - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (CONT'D.)
Projections of health benefits are based on the plan as understood by the City and include the
types of benefits in force at the valuation date and the pattern of sharing benefit costs between
Wichita Falls and its employees to that point. Actuarial calculations reflect a long-term perspective
and employ methods and assumptions that are designed to reduce short-term volatility in actuarial
accrued liabilities and the actuarial value of assets. Significant methods and assumptions were as
follows:
Investment Rate of Return 7.5%, net of expenses
Actuarial cost method Projected Unit Credit Cost Method
Amortization method Level as a percentage of salary
Salary growth 3.0% per annum
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the profitability of events in the future. Amounts determined regarding the funded status and the
annual required contributions of the City's retiree health care plan are subject to continual revision
as actual results are compared to past expectations and new estimates are made about the
future. The required schedule of funding progress presented as required supplementary
information provides multi-year trend information that shows whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Note 10 - DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a
portion of their salary until future years. The deferred compensation is not available to the
employees until termination, retirement, death, or an unforeseen emergency.
Note 11 - AIRPORT LEASE
The Municipal Airport facilities are located on land at Sheppard Air Force Base. The land is
leased from the Department of the Air Force at a cost of$1.00 per year for a period of fifty years,
beginning May 15, 2009 and expiring May 14, 2059. Additional rent is based on landing fees at
a rate of $1.8264 per scheduled landing. Landing fees collected and paid on this lease were
$11,528 for the fiscal year ended September 30, 2009.
Note 12 - DESCRIPTION OF LEASING ARRANGEMENTS
The majority of the City's operating leases contain an option for annual renewal at the end of the
initial lease term. In most cases, these leases will be canceled or replaced by other leases. The
City leases certain equipment under operating leases expiring at various times through the year
ending September 30, 2009.
The following is a schedule by years of future minimum rental payments required under
operating leases that have initial or remaining noncancellable lease terms in excess of one year
as of September 30, 2009:
48
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2009
Note 12 - DESCRIPTION OF LEASING ARRANGEMENTS (CONT'D.)
Year ending September 30:
2010 $238,412
2011 214,445
2012 171,025
2013 16,349
2014 1,966
Total minimum payments required $642.197
The total minimum payments do not include contingent rentals which may be paid under the
airport lease based on the number of scheduled landings.
The following schedule shows the composition of total rental expenses for all operating leases
for the year ended September 30, 2009:
Minimum rentals $264,978
Contingent rentals 11,528
Total rentals $276.506
Note 13 - LONG-TERM LIABILITIES
Long-term liabilities transactions for the year ended September 30, 2009 are summarized as
follows:
Balance at Balance at
October 1, Retired and September 30, Due Within
2008 Issued Transferred(1) 2009 One Year
Governmental Activities:
General obligation bonds $ 6,480,000 $ - $ 945,000 $ 5,535,000 $ 745,000
Combination tax and revenue bonds 23,867,228 10,820,000 1,162,502 33,524,726 1,536,038
Accrued vacation and sick
leave payable 6,797,882 2,000,257 1,849,419 6,948,720 1,900,000
Claims and judgments payable 322.777 1.105.129 1.227.143 200,763 78.403
Total governmental activities 37.467.887 13.925.386 5.184.064 46.209.209 4.259.441
Business-Noe Activities:
Utility system revenue bonds,
net of premium(discount) 121,887,612 - 2,045,871 119,841,741 2,144,997
Combination tax and revenue bonds 24,479,232 - 3,474,464 21,004,768 3,580,730
Accrued vacation and sick
leave payable 492,634 496,915 467,911 521,638 500,000
Note payable 670,537 - 30,161 640,376 31,142
Capital lease payable - 916,548 194,084 722,464 172,843
Landfill closure,post-closure costs 3.025.098 193.281 - 3,218,379 -
Total business-type activities 150.555.113 1.606.744 6.212.491 145.949.366 6.429.712
Total long-term liabilities $188.023 ono $15_532 13Q $11 396 555 $192 158.575 $10 689 153
(1) Includes bond premium amortization of $42,502 related to the combination tax and revenue
bonds (governmental activities), $111,871 related to revenue bonds, and $244,464 related to the
combination tax and revenue bonds(business-type activities).
49
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2009
Note 13 - LONG-TERM LIABILITIES(CONT'D.)
The portion of long-term liabilities due within one year as reflected on Exhibit A-1 includes
$411,978 and $1,046,493 of accrued interest in governmental activities and business-type
activities, respectively.
For governmental activities, claims and judgments payable and compensated absences are
generally liquidated by the General Fund.
Bonds Payable
Bonds payable at September 30, 2009, including net unamortized premium on the revenue bonds,
are comprised of the following individual issues:
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Payments Authorized at 9/30/09
General Obligation Bonds:
General Obligation Construction 3.75%- 9/01/21 $175,000 to $10,205,000 $ 5,535,000
and Refunding Bonds,Series 2001 5.375% $945,000
Total General Obligation Bonds 5.535.000
Combination Tax and Revenue Bonds:
Combination Tax and Revenue 3.00%- 9/01/18 $335,000 to 7,550,000 3,450,000
Certificates of Obligation,Series 2003 4.00% $775,000
Combination Tax and Revenue 2.00%- 8/01/12 $685,000 to 18,840,000 10,520,000
Refunding Bonds,Series 2004 5.00% $3,645,000
Plus bond premium 226,615
Combination Tax and Revenue 4.90%- 8/01/16 $115,000 to 14,020,000 9,700,000
Refunding Bonds,Series 2005 5.00% $2,650,000
Plus bond premium 558,154
Combination Tax and Revenue 3.55%- 9/01/26 $580,000 to 16,875,000 14,985,000
Certificates of Obligation,Series 2006A 5.00% $1,225,000
Plus bond premium 348,958
Combination Tax and Revenue 5.20%- 9/01/26 $130,000 to 4,275,000 3,840,000
Certificates of Obligation,Series 2006B 6.25% $345,000
Plus bond premium 80,768
Combination Tax and Revenue 2.25%- 10/01/28 $340,000 to 10,820,000
Certificates of Obligation,Series 2009 4.75% $780,000 10.820.000
Total Combination Tax and Revenue Bonds 54.529.495
50
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2009
Note 13 - LONG-TERM LIABILITIES(CONT'D.)
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Payments Authorized at 9/30/09
Revenue Bonds:
Water and Sewer Revenue Bonds:
Water&Sewer System Priority 4.05%- 8/01/18 $180,000 to 5,500,000 3,035,000
Lien Revenue Bonds,Series 1998B 4.65% $400,000
Water&Sewer System Priority 3.75%- 8/01/12 $1,220,000 to 118,770 000 4,650,000
Lien Revenue Bonds,Series 2001 5.375% $11,515,000
Plus bond premium 967,584
Water&Sewer Subordinate Lien 3.14%- 8/01/18 $25,000 to 8,060,000 7,785,000
Revenue Bonds,Series 1998 4.59% $3,320,000
Water&Sewer System Priority 4.00%- 8/01/27 $225,000 to 103,495,000 103,040,000
Lien Refunding Revenue Bonds, 4.50% $11,070,000
Series 2007
Plus bond premium 364.157
Total Revenue Bonds 119.841.741
Total All Bonds $179 906 716
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, 2009,
$435,599 was available in this fund to service these bonds.
The Combination Tax and Revenue Bonds are secured by ad valorem taxes levied against all
taxable property as well as a pledge of surplus net revenues of the City's combined waterworks and
sewer system. The Series 2003 Certificates will be serviced by the Debt Service Fund by
contributions from the Wichita Falls 4B Economic Development Corporation. The Series 2004 and
the Series 2005 Certificates will be serviced by the net revenues of the Water and Sewer Fund.
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.
51
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 13 - LONG-TERM LIABILITIES (CONT'D.)
Notes Payable
The City of Wichita Falls and Wichita County Water Improvement District Number 2, upon the
completion of the Lake Kemp reconstruction project in January 1976 by the U.S. Government, are
required to reimburse the U.S. Government 22.7% of its reported total cost of $8,774,705, or
$1,991,858. The City's share of this amount is 66.11%, or $1,316,817, payable in forty-nine annual
installments through January 2025 of$51,974, which includes interest at the rate of 3.253%.
The City's share of the total costs ($5,800,957) as well as the U.S. Government funded portion
($4,484,140) is reflected as capital assets in the Water and Sewer Enterprise Fund.
This contractual arrangement is strictly a cost-sharing agreement and is not considered a joint
venture as defined in Section J50 of the Codification of Governmental Accounting and Financial
Reporting Standards. The remaining debt payable to the U.S. Government at September 30, 2009
is classified as follows:
Long-term $609,234
Current portion 31,142
Total $640.376
Capital Lease Payable
The City issued a capital lease on March 30, 2009 for the purchase of a fire ladder truck in the
amount of $916,548 which is the total amount of the City's assets acquired under capital lease.
This asset is listed under "Motor Vehicles" in the business-type activities. The lease carries an
interest rate of 2.94% and is due in five annual installments of $194,084, with final payment due
on March 30, 2013. The capital lease is recorded in the Fleet Maintenance Internal Service Fund
and is included in the business-type activities of the government-wide statements.
52
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2009
Note 13 - LONG-TERM LIABILITIES (CONT'D.)
Aggregate maturities of the long-term debt(principal and interest) for the years subsequent to September 30, 2009 are as follows:
Combination Tax and
Year Ending General Obligation Bonds Revenue Bonds Revenue Bonds Notes Payable Capital Lease Payable Total
September 30. Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2010 $ 745,000 $ 273,650 $ 5,116,768 $ 2,180,833 $ 2,144,997 $ 5,259,841 $ 31,142 $ 20,831 $172,843 $21,240 $ 8,210,750 $ 7,756,395
2011 340,000 241,988 5,326,926 1,946,018 2,223,966 5,170,244 32,155 19,818 177,925 16,159 8,100,972 7,394,227
2012 355,000 227,112 5,496,768 1,782,052 2,312,897 5,076,814 33,201 18,772 183,156 10,928 8,381,022 7,115,678
2013 370,000 210,694 4,076,402 1,586,444 4,076,664 4,970,994 34,281 17,692 188,540 5,543 8,745,887 6,791,367
2014 385,000 193,581 4,141,868 1,438,523 4,208,431 4,809,004 35,397 16,577 - - 8,770,696 6,457,685
2015-2019 2,255,000 652,981 14,359,610 5,033,984 32,556,804 20,867,747 195,022 64,846 - - 49,366,436 26,619,558
cn 2020-2024 1,085,000 84,050 9,379,853 2,877,024 46,791,161 12,195,450 228,875 30,994 - - 57,484,889 15,187,518
W 2025-2027 - - 6.631.300 665.748 25.526.821 1.988.100 50.303 1.636 - - 32.208.424 2.655.484
Totals $,535,000 61,884,056 $54,529,495 $17 51Q67Fz $119 841 741 $60 338 194 $640,376 $191,166 $722.464 $53.870 $181.269.076 $79 977 912
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 14 - DEFEASED DEBT
Prior Year
In prior years, the City defeased certain outstanding revenue bonds by placing the proceeds of
new bonds and additional cash in an irrevocable trust to provide for all future debt service
payments on the old bonds. Accordingly, the trust escrow accounts and the defeased bonds are
not included in the City's financial statements. At September 30, 2009, $98,390,000 of the 2001
Water and Sewer System Priority Lien Revenue Bonds are considered defeased.
Note 15 - LANDFILL AND TRANSFER STATION CLOSURE AND POSTCLOSURE CARE COSTS
State and federal laws and regulations require that the City place a final cover on its landfill when
closed, and perform certain maintenance and monitoring functions at the landfill site for thirty
years after closure. In accordance with the Texas Administrative Code, Title 30, Part 1, Chapter 7,
the City annually submits a financial assurance letter to the Texas Commission on Environmental
Quality (TCEQ). In addition to operating expenses related to current activities of the landfill, an
expense provision and related liability are being recognized based on the future closure and
postclosure care costs that will be incurred near or after the date the landfill no longer accepts
waste. The recognition of these landfill closure and postclosure care costs is based on the amount
of the landfill used during the year. The estimated liability for landfill closure and postclosure care
costs has a balance of $3,218,379 as of September 30, 2009, which is based on 15% usage of
the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of
$16,354,241 as the remaining estimated capacity is filled. The landfill is expected to be filled to
capacity in 2153. Actual costs may be higher due to inflation, change in technology, or changes in
regulations.
Note 16 - INTERFUND BALANCES
Balances due to and due from other funds at September 30, 2009 consisted of the following:
Due To Fund Due From Fund Amount Purpose
General Fund Nonmajor Governmental Funds $1,630,658 Short-term loan
General Fund Water and Sewer Fund 102,605 Short-term loan
General Fund Internal Service Funds 12.064 Short-term loan
Total $1.745.327
All amounts due are scheduled to be repaid within one year.
54
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2009
Note 16 - INTERFUND BALANCES(CONT'D.)
Transfers to and from other funds during the year ended September 30, 2009 were as follows:
Transfers From Transfers To Amount Reason
General Fund Nonmajor Governmental Funds $ 379,129 Supplement operating deficits
General Fund Nonmajor Enterprise Funds 185,041 Supplement operating grants
General Fund Nonmajor Governmental Funds 70,448 Supplement operating grants
General Fund Internal Service Fund 200,488 Purchase capital assets
General Fund Sanitation Fund 520,554 Supplement operating deficits
Nonmajor Governmental Funds Nonmajor Governmental Funds 364,711 Fund debt service payment
Nonmajor Governmental Funds Nonmajor Governmental Funds 1,388,427 Fund operating deficits
Nonmajor Governmental Funds Nonmajor Governmental Funds 7,614 Supplement other sources
Nonmajor Governmental Funds Nonmajor Enterprise Funds 1,772,974 Purchase capital assets
Nonmajor Governmental Funds Internal Service Funds 431,434 Purchase capital assets
Nonmajor Governmental Funds General Fund 40,809 Supplement other sources
Nonmajor Governmental Funds Water and Sewer Fund 169,823 Fund construction projects
Nonmajor Governmental Funds Nonmajor Enterprise Funds 3,901,812 Fund construction projects
Water and Sewer Fund General Fund 750,799 Administrative overhead
Water and Sewer Fund Nonmajor Governmental Funds 500,000 Fund debt service payment
Water and Sewer Fund Internal Service Funds 219,143 Purchase capital assets
Sanitation Fund General Fund 1,150,869 Administrative overhead
Sanitation Fund Internal Service Funds 3,432,395 Purchase capital assets
Nonmajor Enterprise Funds Nonmajor Governmental Funds 114,480 Supplement operating grant
Nonmajor Enterprise Funds Nonmajor Governmental Funds 451,023 Fund debt service payment
Internal Service Funds General Fund 312.000 Administrative overhead
Total $16.363.973
Note 17 - COMMITMENTS AND CONTINGENCIES
Litigation
The City is a defendant in numerous lawsuits. In the opinion of the City's management, any
liabilities resulting from such suits will not materially affect the financial position of the City.
Accrued Vacation and Sick Leave
The City's liability for accrued vacation and sick leave excluding the amount recorded in the
proprietary funds was$6,948,720 at September 30, 2009. This accrual is recorded as a long-term
liability in the Government-wide Statement of Net Assets.
55
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2009
Note 17 - COMMITMENTS AND CONTINGENCIES (CONT'D.)
Contract Commitment With West Texas Utilities Company
In 1977, the City and Wichita County Water Improvement District Number 2 entered into a sixty-
year contract with the West Texas Utilities Company (the Company) and agreed to provide an
adequate water supply for the Company's use in generating power upon completion of the
Company's construction of a power plant adjacent to the Lake Kemp-Lake Diversion System.
The significant terms of the contract provide for standby charges to be paid to the City and the
Wichita County Water Improvement District Number 2 in equal amounts. Minimum charges for
the calendar year 1997 and all years thereafter until the end of contract will be $500,000 per year.
For water actually consumed, the Company shall pay the City and Wichita County Water
Improvement DistrictNumber
umber 2 equally, at the base rate of$0.23per one thousandgallons,
p which
is adjusted annually. The rate for the year ended September 30, 2009 was $.404046 per one
thousand gallons.
This contract can be terminated at any time by the Company. If the contract is terminated, the
Company is required to make a maximum termination payment equal to the minimum charges
which would have become due and payable during the following twenty-four month period.
Contract Commitments
At September 30, 2009, 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 $ 794,429
Nonmajor Governmental Funds 8,017,171
Water and Sewer Fund 41,519,087
Sanitation Fund 371,545
Nonmajor Enterprise Funds 1,448.652
Total contract commitments $52.150.884
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.
56
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2009
Note 18 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED
COMPONENT UNITS
The City has four component units that are discretely presented in the City's basic financial
statements. Condensed financial information for the year ended September 30, 2009 is as follows:
Wichita Falls Wichita Falls
Economic 4B Sales Wichita Falls Wichita Falls
Development Tax Reinvestment Reinvestment
Corporation Corporation Zone#1 Zone#2 Totals
Condensed statement of net assets:
Cash,investments and other
current assets $24,074,665 $5,388,724 $ - $ - $29,463,389
Capital assets,net of accumulated
depreciation 2.359.985 - - - 2.359.985
Total assets 26.434.650 5.388.724 - - 31.823.374
Accounts payable and other
current liabilities 6.347 - - - 6.347
Total liabilities 6.347 - - - 6.347
Net assets $26.428.303 $5.388.724 $ - $ - $31 817 027
Condensed statement of activities:
Expenses:
Community development $ 1.727.444 $3.718.730 $121,378 $241,072 $ 5.808.624
Program revenues:
Charges for services 106,800 - - - 106,800
Operating grants and contributions - 241.072 - - 241.072
Total program revenues 106.800 241.072 - - 347.872
Net program expense ( 1.620.644) ( 3.477.658) ( 121,378) ( 241,072) ( 5.460.752)
General revenues:
Tax revenues 3,408,651 3,408,651 - 229,939 7,047,241
Non-tax general revenues 186.200 52.710 8.244 555 247.709
Total general revenues and
transfers 3.594.851 3.461.361 8.244 230.494 7.294.950
Change in net assets 1,974,207 ( 16,297) ( 113,134) ( 10,578) 1,834,198
Beginning net assets 24.454.096 5.405.021 113.134 10.578 29.982.829
Ending net assets $26.428.303 $5.388.724 $ _ $ - $31.817.027
57
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2009
Note 19 - SUBSEQUENT EVENTS
Purchase of Castaway Cove Water Park
In November 2009, the City approved an offer of $3,900,000 to purchase the Castaway Cove
Water Park and 49 acres of adjacent land. The City officially purchased the park on February 4,
2010 and subsequently entered into a contract with a third party to manage the park.
In January 2010, the City approved the issuance of Combination Tax and Revenue Certificates of
Obligation, Taxable Series 2010, in the amount of $3,930,000. The proceeds will be used to
acquire and make improvements to Castaway Cove Water Park and acquire approximately 49
acres of land adjacent to the park for public recreation purposes. The bonds are to be repaid over
15 years and carry an interest rate of 5.60%.
Worker's Compensation Proaram
In November 2009, the City approved a contract for third party administration of the City's
Worker's Compensation Program. This agreement begins December 1, 2009 and ends on
November 30, 2012.
Note 20 - PRIOR PERIOD ADJUSTMENT
During the year ended September 30, 2009, the City discovered an error in the amount of grant
receivable that had been recorded in the prior year related to the Airport Improvement Grant. The
correction of this error resulted in a $314,802 reduction in beginning net assets in Governmental
Activities in the government-wide statements and in the beginning fund balance of Other
Governmental Funds in the fund-level financial statements.
58
Required Supplemental Information
11
Ake
a 54
TEXAS
$1&e5Aw 4ilden Orporti netee
i
EXHIBIT B-1
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 54,202,955 $ 54,202,955 $ 53,371,597 $ (831,358)
Charges for services 2,812,165 2,812,165 2,806,223 (5,942)
Licenses and permits 2,155,305 2,155,305 1,887,434 (267,871)
Fines and forfeitures 2,008,406 2,008,406 1,800,057 (208,349)
Intergovernmental revenue 35,500 35,500 54,409 18,909
Contributions - - 230,964 230,964
Miscellaneous revenue 1,158,786 1,158,786 1,047,597 (111,189)
Total revenues 62,373,117 62,373,117 61,198,281 (1,174,836)
Expenditures:
Current:
Administrative services 10,165,835 9,979,375 9,647,055 332,320
Police 20,182,566 19,946,962 19,693,683 253,279
Fire 12,623,513 12,819,453 12,801,912 17,541
Parks and recreation 4,876,382 5,406,808 5,073,828 332,980
Accounting/finance 2,190,110 2,370,335 2,327,608 42,727
Community development 1,759,589 1,925,307 1,798,241 127,066
Public works 5,296,663 5,287,130 5,200,391 86,739
Health 3,147,008 3,145,308 2,992,015 153,293
Traffic and transportation 2,238,840 2,199,736 2,156,060 43,676
Capital outlay 2,813,993 4,378,138 3,051,918 1,326,220
Total expenditures 65,294,499 67,458,552 64,742,711 2,715,841
Excess of revenues over(under)expenditures (2,921,382) (5,085,435) (3,544,430) 1,541,005
Other financing sources(uses):
Transfers in 2,330,159 2,330,159 2,254,477 (75,682)
Transfers out (305,282) (1,155,236) (1,355,660) (200,424)
Total other financing sources(uses) 2,024,877 1,174,923 898,817 (276,106)
Excess of revenues and other sources
over(under)expenditures and other uses (896,505) (3,910,512) (2,645,613) 1,264,899
Fund balance-beginning 17,187,268 17,187,268 17,187,268 -
Fund balance-ending $ 16,290,763 $ 13,276,756 $ 14,541,655 $ 1,264,899
59
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2009
Demonstrating compliance with the adopted budget is an important component of a government's
accountability to the public. Many citizens participate in the process of establishing the annual operating
budgets of state and local governments, and have a keen interest in following the actual financial
progress of their governments over the course of the year. The City and many other governments revise
their original budgets over the course of the year for a variety of reasons. Under the new reporting model,
governments will continue to provide budgetary comparison information in their annual reports. An
important change, however, is a requirement to add the government's original budget to the current
comparison of final budget and actual results.
The City adheres to the following procedures in establishing the operating budget reflected in the basic
financial statements:
On or before August 15 of each year, the City Manager submits to the City Council a proposed budget for
the fiscal year beginning the following October 1. The operating budget includes proposed expenditures
and the means of financing them. Public hearings are conducted. The budget is legally enacted by the
City Council through passage of appropriation and tax levying ordinances prior to September 30 and is
published under a separate cover.
An annual budget, including debt service requirements, is legally adopted for the General Fund, the
Community Development Block Grant Fund, the Section 8 Housing Fund, the HOME Investment
Partnership Agreement Fund, the Hotel/Motel Tax Fund, the Golf Fund, the MPEC Fund and the Debt
Service Fund, on a basis which is consistent with generally accepted accounting principles.
The City Council must approve any transfer of appropriation balances or portions thereof from one
department to another. The City Manager has the authority, without City Council approval, to transfer
appropriation balances from one expenditure account to another within a single department of the City.
Supplemental appropriations of $2,164,053 were approved by the City Council. The reported budgetary
data includes amendments made during the year.
At the close of each fiscal year, any unencumbered appropriated balance lapses to the unreserved fund
balance. The unencumbered appropriation balances in the Capital Projects Funds do not lapse at year
end.
60
EXHIBIT B-2
CITY OF WICHITA FALLS, TEXAS
TEXAS MUNICIPAL RETIREMENT SYSTEM -ANALYSIS OF FUNDING PROGRESS -
LAST TEN PLAN YEARS (UNAUDITED)*
(1) (2) (3) (4) (5) (6)
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of
Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll
Date of Assets Liability(AAL) (1) _ (2) (2)-(1) Payroll (4) _ (5)
12/31/99 $ 58,074,582 $ 76,394,376 76.0% $ 18,319,794 $ 26,932,278 68.0%
12/31/00 62,462,023 82,680,887 75.5% 20,218,864 27,754,660 72.8%
12/31/01 66,919,614 88,721,318 75.4% 21,801,704 29,061,189 75.0%
12/31/02 69,770,838 93,176,395 74.9% 23,405,557 31,065,101 75.3%
12/31/03 72,469,506 98,017,025 73.9% 25,547,519 31,516,130 81.1%
12/31/04 70,462,244 98,405,860 71.6% 27,943,616 33,522,283 83.4%
12/31/05 71,393,893 101,093,789 70.6% 29,699,896 32,846,479 90.4%
12/31/06 69,201,457 100,991,795 68.5% 31,790,338 33,791,762 94.1%
12/31/07 (1) 70,561,545 120,374,701 58.6% 49,813,156 35,873,970 138.9%
12/31/08 68,910,226 122,001,202 56.5% 53,090,976 38,272,312 138.7%
Analysis of the dollar amounts of the actuarial value of assets, actuarial accrued liability, and unfunded actuarial
accrued liability in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the
actuarial accrued liability provides one indication of the City's funding status on a going-concern basis. Analysis
of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally,
the greater this percentage, the stronger the pension plan. Trends in unfunded actuarial accrued liability and
annual covered payroll are both affected by inflation. Expressing the unfunded actuarial accrued liability as a
percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the
City's progress made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this
percentage, the stronger the pension plan.
* This City retirement plan is substantially a defined contribution plan. These voluntary disclosures, similar to the
disclosures required for a defined benefit plan, are provided for additional analysis of the plan.
(1) TMRS made changes to both the actuarial funding method and actuarial assumptions for the 2007 valuation.
61
EXHIBIT B-3
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS FIREMEN'S RELIEF AND RETIREMENT FUND -
ANALYSIS OF FUNDING PROGRESS (UNAUDITED)
(1) (2) (3) (4) (5) (6)
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of
Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll
Date of Assets Liability(AAL) (1) + (2) (2) - (1) Payroll (4) + (5)
12/31/98(a) $ 19,916,831 $ 25,193,592 79.1% $ 5,276,761 $ 4,712,854 112.0%
12/31/99(a) - - - - - -
12/31/00 26,930,018 31,419,892 85.7% 4,489,874 5,858,962 76.6%
12/31/01 (a) - - - - - -
12/31/02(b) 27,439,565 37,003,896 74.2% 9,564,331 6,609,807 144.7%
12/31/03(a) - - - - - -
12/31/04(b) 32,240,524 42,178,490 76.4% 9,937,966 7,175,196 138.5%
12/31/05(a) - - - - - -
12/31/06(b) 35,584,639 47,582,190 74.8% 11,997,551 7,697,370 155.9%
12/31/07(a) - - - - _ -
12/31/08(b) 39,358,309 54,260,301 72.5% 14,901,992 8,915,419 167.1%
Analysis of the dollar amounts of the actuarial value of assets, actuarial accrued liability, and unfunded actuarial accrued liability
in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability provides
one indication of the City's funding status on a going-concern basis. Analysis of this percentage over time indicates whether the
system is becoming financially stronger or weaker. Generally,the greater this percentage,the stronger the pension plan. Trends
in unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial
accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of
the City's progress made in accumulating sufficient assets to pay benefits when due. Generally,the smaller the percentage, the
stronger the pension plan.
(a) Historical trend information is presented for as many years as such information about the plan is available. No actuarial
valuation or update was performed as of these dates. Texas state law does not require an actuarial valuation to be
completed annually.
(b) For the 2002,2004,2006 and 2008 valuations, retirement was assumed to occur once a member both attained age 57 and
completed 20 years of service. In prior years, retirement was assumed to occur at age 55 and 20 years of service. There
were no changes made in actuarial methods.
62
EXHIBIT B-4
CITY OF WICHITA
FALLS, TEXAS
WICHITA FALLS RETIREE HEALTH CARE PLAN -
ANALYSIS OF FUNDING PROGRESS (UNAUDITED)
(1) (2) (3) (4) (5) (6)
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percentage Actuarial Accrued Annual Percentage of
Valuation Value Accrued Funded Liability(UAAL) Covered Covered Payroll
Date of Assets Liability(AAL) (1) _ (2) (2) - (1) Payroll (4) _ (5)
12/31/06(a) $ - $ 29,656,852 0.0% $ 29,656,852 N/A N/A
12/31/07(b) - - - - - -
12/31/08 - 32,143,378 0.0% 32,143,378 N/A N/A
Analysis of the dollar amounts of the actuarial value of assets,actuarial accrued liability,and unfunded actuarial accrued liability
in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability provides
one indication of the City's funding status on a going-concern basis. Analysis of this percentage over time indicates whether the
system is becoming financially stronger or weaker. Generally,the greater this percentage,the stronger the plan. Trends in
unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial
accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of
the City's progress made in accumulating sufficient assets to pay benefits when due. Generally,the smaller the percentage,the
stronger the plan.
(a) The first actuarial valuation was performed as of December 31. 2006 as the City began to prepare for the implementation
of GASB 45.
(b) Historical trend information is presented for as many years as such information about the plan is available. No actuarial
valuation or update was performed as of these dates. Texas state law does not require an actuarial valuation to be
completed annually.
63
Combining Financial Statements
IMi4 a S
TEXAS
Nue5, es 4o/den Ofportwnt7ies
Nonmajor Governmental Funds
Special Revenue Funds
The special revenue funds are used to account for the proceeds from specific revenue sources
(other than for major capital projects or proprietary funds) that are legally restricted to be
expended for specified purposes.
Community Development Block Grant Fund
The Community Development Block Grant Fund accounts for federal block grant revenues
and related expenditures.
Section 8 Housing Fund
The Section 8 Housing Fund accounts for federal funds received to subsidize rents and
housing payments for lower income families within the City.
Home Investment Partnership Agreement Fund
The Home Investment Partnership Agreement Fund accounts for federal funds received to
provide home ownership opportunities to low income, first-time homebuyers through the
acquisition, rehabilitation and resale of single-family dwellings that are currently owned by
governmental agencies.
Hotel/Motel Tax Fund
The Hotel/Motel Tax Fund accounts for revenues derived from an occupancy tax which is
expended on programs promoting the growth of the City of Wichita Falls.
Airport Improvement Grant Fund
The Airport Improvement Fund accounts for federal funds received to make capital
improvements to the Kickapoo Downtown Airport.
Golf Fund
The Golf Fund accounts for the activities at the Weeks Park Golf Course.
MPEC Fund
The MPEC Fund is used to account for the operations of the City's Multi-Purpose Events
Center.
Miscellaneous Special Revenue Fund
The Miscellaneous Special Revenue Fund accounts for various revenues generated in the
form of contributions, fees, concessions, rents and other charges and their related
expenditures. This fund also includes revenues derived from various grants for health and
police programs. The revenues in this fund are expended to support the activity generating
the revenue or as designated by the contributor.
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.
Capital Projects Funds
The capital projects funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities, other than those financed by federal grants or
proprietary funds.
4B Sales Tax Proiects
This fund was established to account for projects financed by the Wichita Falls 4B Sales Tax
Corporation. Significant projects accounted for in this fund included the construction of three
fire stations and the renovation of the second floor of the Wichita Falls Public Library building
for recreational purposes.
2006-A Bond Fund
This fund was established to account for projects financed by the Combination Tax and
Revenue Certificates of Obligation, Series 2006A. These funds will be used for street and
drainage improvements, a police firing range, the construction of a new fire station, four
softball fields, and a skate park.
Miscellaneous Capital Projects Funds
This fund is an accumulation of several projects that have been undertaken over the years
including library renovations, street improvements and drainage improvements.
Permanent Fund
The permanent fund is used to account for principal trust amounts received and related interest
income. The interest earnings of this fund may be used for maintenance of the City's cemeteries.
CITY OF WICHITA FALLS, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30,2009
Special Revenue
Home
Community Investment Hotel/ Airport
Development Section 8 Partnership Motel Improvement Golf
Block Grant Housing Agreement Tax Grant Fund
ASSETS
Cash and cash equivalents $ 50 $ 2,343,390 $ 14,622 $ - $ - $ 37,664
Receivables:
Taxes and assessments - - - 113,773 - -
Government agencies 1,339,990 - 514,335 - 202,172 -
Other - 10,224 - - - -
Inventory - - - - - -
Prepaid items - - - - - 5,747
Other assets - - - - - -
Total assets $ 1,340,040 $ 2,353,614 $ 528,957 $ 113,773 $ 202,172 $ 43,411
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable-trade $ 31,835 $ 329 $ 27,882 $ - $ 46,765 $ 148,226
Accrued payroll 9,593 12,496 3,413 - - -
Payable to other City funds 246,667 - - 113,773 85,038 -
Payable to government agencies - 84,682 - - - -
Other liabilities - (164) 44,744 - 14,241 (136,596)
Deferred revenue - - - - - -
Total liabilities 288,095 97,343 76,039 113,773 146,044 11,630
Fund balance:
Reserved for encumbrances 38,891 - - - - -
Reserved for debt service - - - - - -
Reserved for perpetual care - - - - - -
Unreserved:
Designated for subsequent
years expenditures 1,013,054 2,256,271 452,918 - 56,128 31,781
Undesignated - - - - - -
Total fund balance 1,051,945 2,256,271 452,918 - 56,128 31,781
Total liabilities and fund balance $ 1,340,040 $ 2,353,614 $ 528,957 $ 113,773 $ 202,172 $ 43,411
64
EXHIBIT C-1
Permanent
Debt Service Capital Projects Fund
Total
Miscellaneous Miscellaneous Nonmajor
MPEC Special Debt Excess 4B Sales 2006-A Capital Perpetual Governmental
Fund Revenue Service Sales Tax Tax Projects Bond Fund Projects Care Funds
$ 94,374 $ 1,812,526 $ - $ 788,255 $ 1,357,674 $ 4,249,661 $ 10,067,069 $ 882,711 $ 21,647,996
-
- - 73,964 - - -
187,737
- 795,574 11,027 - - - - - 2,863,098
126,011 819 - - - - - - 137,054
76,007 - - - - 76,007
16,321 28 635,249 - - - - - 657,345
44,503 3,000 - - - - - - 47,503
$ 357,216 $ 2,611,947 $ 720,240 $ 788,255 $ 1,357,674 $ 4,249,661 $ 10,067,069 $ 882,711 $ 25,616,740
$ 132,923 $ 110,926 $ - $ - $ 14,563 $ 401,371 $ 86,833 $ - $ 1,001,653
72,027 74,675 - - - - - - 172,204
- 1,019,368 165,812 - - - - 1,630,658
5,761 2,754 - - - - - - 93,197
178,590 308,724 36,906 - - 93,850 32,857 - 573,152
- 37,236 81,923 - - - - - 119,159
389,301 1,553,683 284,641 - 14,563 495,221 119,690 - 3,590,023
28,204 - - - 2,850,276 1,230,684 - 4,148,055
-
435,599 788,255 - - - - 1,223,854
- - - - - - - 882,711 882,711
(32,085) 1,029,084 - - 1,343,111 904,164 8,716,695 - 15,771,121
976 - - - - - - 976
(32,085) 1,058,264 435,599 788,255 1,343,111 3,754,440 9,947,379 882,711 22,026,717
$ 357,216 $ 2,611,947 $ 720,240 $ 788,255 $ 1,357,674 $ 4,249,661 $ 10,067,069 $ 882,711 $ 25,616,740
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2009
Special Revenue
Home
Community Investment Hotel/ • Airport
Development Section 8 Partnership Motel Improvement Golf
Block Grant Housing Agreement Tax Grant Fund
Revenues:
Taxes $ - $ - $ - $ 1,467,473 $ - $ -
Charges for services 29,721 - - - - 505,064
Fines and forfeitures - - - - - -
Intergovernmental revenue 1,404,776 2,968,166 498,812 - 1,631,108 -
Contributions - - - - - -
Miscellaneous revenue - 32,043 26,000 - - 373,710
Total revenues 1,434,497 3,000,209 524,812 1,467,473 1,631,108 878,774
Expenditures:
Current:
Administrative services 150,375 - - 86,499 - 1,179,661
Police - - - - - _
Fire _ - - - - _
Parks and recreation 40,349 - - - - -
Community development 805,948 3,594,743 911,412 - - -
Public works 150,000 - - - - -
Health - - _ - _
Traffic and transportation - - 12,235 -
Multi-Purpose Events Center - - - - _ _
Capital outlay 225,861 - - - - 5,307
Debt service:
Principal retirement - - - _ - -
Interest and paying agent fees - - - - _ -
Total expenditures 1,372,533 3,594,743 911,412 86,499 12,235 1,184,968
Excess of revenues over
(under)expenditures 61,964 (594,534) (386,600) 1,380,974 1,618,873 (306,194)
Other financing sources(uses):
Bond proceeds - - - - -
Transfers in - - - - 114,058 306,194
Transfers out - - - (1,388,427) (1,772,552) -
Total other financing sources(uses) - - - (1,388,427) (1,658,494) 306,194
Net change in fund balance 61,964 (594,534) (386,600) (7,453) (39,621) -
Fund balance-beginning 989,981 2,850,805 839,518 7,453 410,551 31,781
Prior period adjustment - - - - (314,802) -
Fundbalance-ending $ 1,051,945 $2,256,271 $ 452,918 $ - $ 56,128 $ 31,781
65
EXHIBIT C-2
Permanent
Debt Service Capital Projects Fund
Total
Miscellaneous Miscellaneous Nonmajor
MPEC Special Debt Excess 4B Sales 2006-A Capital Perpetual Governmental
Fund Revenue Service Sales Tax Tax Projects Bond Fund Projects Care Funds
$ - $ - $ 913,912 $ - $ - $ - $ - $ - $ 2,381,385
182,600 166,109 - - - - - - 883,494
170,555 - - - - - - 170,555
2,730,100 - - - - - - 9,232,962
163,899 1,112,118 - 1,727,778 - - - 3,003,795
1,606,668 473,168 6,665 8,559 - 126,853 48,725 54,450 2,756,841
1,789,268 3,703,831 2,032,695 8,559 1,727,778 126,853 48,725 54,450 18,429,032
251,761 - - - - - - 1,668,296
176,990 - - 165,630 145,847 - - 488,467
27,498 - - - 3,773 - - 31,271
207,527 - - - - 26,338 109,368 383,582
323,273 - _
5,635,376
15,130 - - - 14,395 72,256 - 251,781
1,804,198 - - - - 154,000 - 1,958,198
124,595 - - - - - - 136,830
3,208,713 - - - - - - - 3,208,713
11,549 344,025 - - 1,681,633 4,781,122 1,987,513 - 9,037,010
- -
2,065,000 - - - - - 2,065,000
1,364,831 - - - - - 1,364,831
3,220,262 3,274,997 3,429,831 - 1,847,263 4,945,137 2,240,107 109,368 26,229,355
(1,430,994) 428,834 (1,397,136) 8,559 (119,485) (4,818,284) (2,191,382) (54,918) (7,800,323)
- - - - 10,840,779 - 10,840,779
1,430,994 108,852 1,315,734 - - - - - 3,275,832
(851,884) - (364,711) - (2,008,174) (1,691,857) - (8,077,605)
1,430,994 (743,032) 1,315,734 (364,711) - (2,008,174) 9,148,922 - 6,039,006
(314,198) (81,402) (356,152) (119,485) (6,826,458) 6,957,540 (54,918) (1,761,317)
(32,085) 1,372,462 517,001 1,144,407 1,462,596 10,580,898 2,989,839 937,629 24,102,836
- - - - - - - (314,802)
$ (32,085) $ 1,058,264 $ 435,599 $ 788,255 $ 1,343,111 $ 3,754,440 $ 9,947,379 $ 882,711 $ 22,026,717
EXHIBIT C-3
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -COMMUNITY DEVELOPMENT BLOCK GRANT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ - $ - $ 29,721 $ 29,721
Intergovernmental revenue 1,620,776 1,620,776 1,404,776 (216,000)
Total revenues 1,620,776 1,620,776 1,434,497 (186,279)
Expenditures:
Administrative services 150,000 366,066 150,375 215,691
Parks and recreation 57,821 73,963 40,349 33,614
Community development 1,262,295 1,480,137 805,948 674,189
Public works 150,660 150,000 150,000 -
Capital outlay - 310,170 225,861 84,309
Total expenditures 1,620,776 2,380,336 1,372,533 1,007,803
Excess of revenues over(under)expenditures - (759,560) 61,964 821,524
Fund balance-beginning 989,981 989,981 989,981 -
Fund balance-ending $ 989,981 $ 230,421 $ 1,051,945 $ 821,524
66
EXHIBIT C-4
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -SECTION 8 HOUSING FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 3,689,112 $ 3,689,112 $ 2,968,166 $ (720,946)
Miscellaneous revenue - - 32,043 32,043
Total revenues 3,689,112 3,689,112 3,000,209 (688,903)
Expenditures:
Community development 3,687,512 3,687,512 3,594,743 92,769
Capital outlay 1,600 1,600 - 1,600
Total expenditures 3,689,112 3,689,112 3,594,743 94,369
Excess of revenues over(under)expenditures - - (594,534) (594,534)
Fund balance- beginning 2,850,805 2,850,805 2,850,805 -
Fund balance-ending $ 2,850,805 $ 2,850,805 $ 2,256,271 $ (594,534)
67
EXHIBIT C-5
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - HOME INVESTMENT PARTNERSHIP AGREEMENT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 498,813 $ 498,813 $ 498,812 $ (1)
Miscellaneous revenue - - 26,000 26,000
Total revenues 498,813 498,813 524,812 25,999
Expenditures:
Community development 498,813 1,279,247 911,412 367,835
Total expenditures 498,813 1,279,247 911,412 367,835
Excess of revenues over(under)expenditures - (780,434) (386,600) 393,834
Fund balance- beginning
839 518 _
9 9 839,518 839,518
Fund balance-ending $ 839,518 $ 59,084 $ 452,918 $ 393,834
68
EXHIBIT C-6
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE- HOTEL/MOTEL TAX FUND
FOR THE YEAR ENDED SEPTEMBER 30,2009
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 1,550,000 $ 1,550,000 $ 1,467,473 $ (82,527)
Total revenues 1,550,000 1,550,000 1,467,473 (82,527)
Expenditures:
Administrative services 86,500 86,500 86,499 1
Total expenditures 86,500 86,500 86,499 1
Excess of revenues over(under)expenditures 1,463,500 1,463,500 1,380,974 (82,526)
Other financing sources(uses):
Transfers out (1,463,500) (1,463,500) (1,388,427) 75,073
Total other financing sources(uses) (1,463,500) (1,463,500) (1,388,427) 75,073
Excess of revenues and other sources
over(under)expenditures and other uses - - (7,453) (7,453)
Fund balance-beginning 7,453 7,453 7,453 -
Fund balance-ending $ 7,453 $ 7,453 $ - $ (7,453)
69
EXHIBIT C-7
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE -GOLF FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ 891,394 $ 891,394 $ 505,064 $ (386,330)
Miscellaneous revenue 240,179 240,179 373,710 133,531
Total revenues 1,131,573 1,131,573 878,774 (252,799)
Expenditures:
Administrative services 1,165,376 1,165,376 1,179,661 (14,285)
Capital outlay - - 5,307 (5,307)
Total expenditures 1,165,376 1,165,376 1,184,968 (19,592)
Excess of revenues over(under)expenditures (33,803) (33,803) (306,194) (272,391)
Other financing sources(uses):
Transfers in 33,803 33,803 306,194 272,391
Total other financing sources(uses) 33,803 33,803 306,194 272,391
Excess of revenues and other sources
over(under) expenditures and other uses - - -
Fund balance-beginning 31,781 31,781 31,781 -
Fund balance-ending $ 31,781 $ 31,781 $ 31,781 $ -
70
EXHIBIT C-8
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - MPEC FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services $ 233,752 $ 233,752 $ 182,600 $ (51,152)
Miscellaneous revenue 1,808,319 1,808,319 1,606,668 (201,651)
Total revenues 2,042,071 2,042,071 1,789,268 (252,803)
Expenditures:
MPEC 3,496,461 3,496,461 3,208,713 287,748
Capital outlay - - 11,549 (11,549)
Total expenditures 3,496,461 3,496,461 3,220,262 276,199
Excess of revenues over(under) expenditures (1,454,390) (1,454,390) (1,430,994) 23,396
Other financing sources (uses):
Transfers in 1,454,390 1,454,390 1,430,994 (23,396)
Total other financing sources (uses) 1,454,390 1,454,390 1,430,994 (23,396)
Excess of revenues and other sources
over(under) expenditures and other uses - - - -
Fund balance-beginning (32,085) (32,085) (32,085) -
Fund balance-ending $ (32,085) $ (32,085) $ (32,085) $ -
71
EXHIBIT C-9
CITY OF WICHITA FALLS, TEXAS
BUDGETARY COMPARISON SCHEDULE - DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 902,579 $ 902,579 $ 913,912 $ 11,333
Contributions 1,112,118 1,112,118 1,112,118 -
Miscellaneous revenue - - 6,665 6,665
Total revenues 2,014,697 2,014,697 2,032,695 17,998
Expenditures:
Debt service-principal 2,065,000 2,065,000 2,065,000 -
Debt service-interest and paying agent fees 1.365,431 1,365,431 1,364,831 600
Total expenditures 3,430,431 3,430,431 3,429,831 600
Excess of revenues over(under)expenditures (1,415,734) (1,415,734) (1,397,136) 18,598
Other financing sources(uses):
Transfers in 1,315,734 1,315,734 1,315,734 -
Total other financing sources(uses) 1,315,734 1,315,734 1,315,734 -
Excess of revenues and other sources
over(under)expenditures and other uses (100,000) (100,000) (81,402) 18,598
Fund balance-beginning 517,001 517,001 517,001 -
Fund balance-ending $ 417,001 $ 417,001 $ 435,599 $ 18,598
72
Nonmajor Enterprise Funds
Nonmajor enterprise funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises. The intent of the governing body is that the cost
of providing the service to the general public on a continuing basis be recovered primarily through
user charges.
Municipal Airport Fund
The Municipal Airport Fund was established to account for the operating revenues and
expenses of the Wichita Falls Municipal Airport. The airport is operated on land leased from
the Department of Defense. Commercial and private aviation share airport facilities and
runways owned by Sheppard Air Force Base.
Kickapoo Airport Fund
During the year ended September 30, 2000, the City acquired Kickapoo Downtown Airport, a
private airport. The Kickapoo Airport Fund was established to account for the operating
revenues and expenses of the airport.
Transit Fund
The Transit Fund accounts for the operation of the Wichita Falls transit system. This system
is supported from passenger fees, subsidies from the General Fund and subsidies from the
Federal Transit Administration.
Stormwater Drainage Fund
The Stormwater Drainage Fund was established to account for operating revenues and
expenses associated with the Storm Water Drainage Utility System (System). The System
was established effective May 1, 2001 and provides a funding mechanism for drainage
improvements in the City.
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2009
Municipal Kickapoo
Airport Airport
ASSETS
Current assets:
Cash and cash equivalents $ 549,756 $ 164,967
Restricted cash and cash equivalents 152,468 Receivables (net of allowance for
uncollectible accounts):
Customer and trade - -
Government agencies - -
Other 28,217 24,431
Inventory - 44,118
Prepaid items 4,809 2,462
Total current assets 735,250 235,978
Capital assets, net of accumulated depreciation 1,498,496 9,305,244
Total assets 2,233,746 9,541,222
LIABILITIES
Current liabilities payable from current assets:
Accounts payable - trade 10,872 22,513
Accrued payroll 3,814 9,317
Accrued vacation and sick leave 8,437 8,921
Payable to government agencies 14,138 59
Other liabilities - 57
Total current liabilities payable
from current assets 37,261 40,867
Net assets:
Invested in capital assets 1,498,496 9,305,244
Unrestricted 697,989 195,111
Total net assets $ 2,196,485 $ 9,500,355
73
EXHIBIT D-1
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 300,326 $ 3,447,397 $ 4,462,446
152,468
123,714 123,714
82,350 - 82,350
52,648
44,118
7,271
382,676 3,571,111 4,925,015
616,498 9,311,244 20,731,482
999,174 12,882,355 25,656,497
10,728 30,574 74,687
39,095 1,602 53,828
16,878 - 34,236
14,197
11,269 11,326
66,701 43,445 188,274
616,498 9,311,244 20,731,482
315,975 3,527,666 4,736,741
$ 932,473 $ 12,838,910 $ 25,468,223
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Municipal Kickapoo
Airport Airport
Operating revenues:
Charges for services $ - $ -
Rents, concessions and other 544,332 745,444
Total operating revenues 544,332 745,444
Operating expenses:
Personnel services 84,596 200,400
Supplies and materials 2,391 393,810
Maintenance and repairs 32,480 8,530
Utilities and other services 78,628 94,270
Insurance and contract support 6,612 4,635
Other expenses 58,492 386,329
Depreciation and amortization 66,382 296,726
Total operating expenses 329,581 1,384,700
Operating income (loss) 214,751 (639,256)
Nonoperating revenues (expenses):
interest income 5,381 1,128
Loss on sale of capital assets - -
Intergovernmental operating grants - -
Total nonoperating revenues (expenses) 5,381 1,128
Income (loss) before contributions and transfers 220,132 (638,128)
Capital contributions - -
Transfers in 227,770 1,545,204
Transfers out (114,480) -
Net transfers 113,290 1,545,204
Net income (loss) 333,422 907,076
Net assets - beginning 1,863,063 8,593,279
Net assets -ending $ 2,196,485 $ 9,500,355
74
EXHIBIT D-2
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 222,906 $ 1,252,544 $ 1,475,450
6,577 - 1,296,353
229,483 1,252,544 2,771,803
866,040 115,596 1,266,632
224,813 752 621,766
297,462 100,193 438,665
63,478 131,506 367,882
66,741 - 77,988
36,964 8,689 490,474
34,478 80,923 478,509
1,589,976 437,659 3,741,916
(1,360,493) 814,885 (970,113)
25,716 32,225
(9,320) (40,056) (49,376)
1,142,191 - 1,142,191
1,132,871 (14,340) 1,125,040
(227,622) 800,545 154,927
267,629 - 267,629
185,041 3,901,812 5,859,827
(451,023) (565,503)
452,670 3,450,789 5,561,953
225.048 4,251,334 5,716,880
707,425 8,587,576 19,751,343
$ 932,473 $ 12,838,910 $ 25,468,223
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Municipal Kickapoo
Airport Airport
Cash flows from operating activities:
Receipts from customers and users $ 541,126 $ 747,275
Payments to suppliers (182,159) (926,748)
Payments to employees (61,928) (147,410)
Net cash provided (used) by operating activities 297,039 (326,883)
Cash flows from noncapital financing activities:
Intergovernmental operating grants - -
Interfund loan repayment - -
Transfers out to other funds (114,480) -
Transfers from other funds 227,770 1,545,204
Net cash provided (used) by noncapital financing activities 113,290 1,545,204
Cash flows from capital and related
financing activities:
Capital contributions - -
Acquisition and construction of capital assets (248,161) (1,195,204)
Net cash provided by (used for) capital
and related financing activities (248,161) (1,195,204)
Cash flows from investing activities:
Interest on investments 5,381 1,128
Net cash provided by investing activities 5,381 1,128
Net Increase (Decrease) in Cash and Cash Equivalents 167,549 24,245
Cash and Cash Equivalents- Beginning 534,675 140,722
Cash and Cash Equivalents- Ending $ 702,224 $ 164,967
75
EXHIBIT D-3
(Page 1 of 2)
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 460,181 $ 1,255,612 $ 3,004,194
(885,653) (239,679) (2,234,239)
(675,358) (100,082) (984,778)
(1,100,830) 915,851 (214,823)
1,142,191 - 1,142,191
(192,684) - (192,684)
(451,023) (565,503)
185,041 3,901,812 5,859,827
1,134,548 3,450,789 6,243,831
267,829 - 267,829
(1,221) (3,909,602) (5,354,188)
266,608 (3,909,602) (5,086,359)
- 25,716 32,225
25,716 32,225
300,326 482,754 974,874
2,964,643 3,640,040
$ 300,326 $ 3,447,397 $ 4,614,914
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS (CONT'D.)
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Municipal Kickapoo
Airport Airport
Cash flows from operating activities:
Operating income (loss) $ 214,751 $ (639,256)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities:
Depreciation and amortization 66,382 296,726
(Increase) decrease in current assets:
Receivables:
Customer and trade
Government agencies - -
Other (3,206) 1,831
Inventory - 18,016
Prepaid items (1,779) (980)
Other assets 2,000 -
Increase (decrease) in current liabilities:
Accounts payable -trade 3,002 (5,779)
Accrued payroll 220 914
Accrued vacation and sick leave 1,794 1,639
Payable to government agencies 13,875 6
Total adjustments 82,288 312,373
Net cash provided by (used in)
operating activities $ 297,039 $ (326,883)
76
EXHIBIT D-3
(Page 2 of 2)
Stormwater
Transit Drainage Totals
$(1,360,493) $ 814,885 $ (970,113)
34,478 80,923 478,509
- 3,068 3,068
230,898 - 230,898
- - (1,375)
- - 18,016
491 - (2,268)
-
2,000
(8,333) 27,709 16,599
2,329 (3,758) (295)
(6,976) (3,543)
13,881
259,863 100,966 755,490
$(1,100,630) $ 915,851 $ (214,623)
TEXAS/11:411
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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.
Duolicatina 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.
EXHIBIT E-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2009
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
ASSETS
Current assets:
Cash and cash equivalents $ 389,291 $ 36,361 $ 2,518,526 $ 2,944,178
Restricted cash and cash equivalents - - 233,983 233,983
Receivables:
Other 26,579 - 24,055 50,634
Inventory 746,507 13,791 - 760,298
Prepaid items 917,222 3,467 116 920,805
Total current assets 2,079,599 53,619 2,776,680 4,909,898
Capital assets, net of accumulated depreciation 18,606,041 53,110 621 18,659,772
Total assets 20,685,640 106,729 2,777,301 23,569,670
LIABILITIES
Current liabilities:
Accounts payable-trade 139,345 5,700 141,446 286,491
Accrued payroll 89,900 3,569 4,580 98,049
Accrued vacation and sick leave 72,880 2,535 - 75,415
Payable to other city funds - - 12,064 12,064
Estimated health claims payable - - 426,734 426,734
Other liabilities 3,000 - - 3,000
Capital leases-current maturities 172,843 - - 172,843
Total current liabilities 477,968 11,804 584,824 1,074,596
Long-term liabilities:
Capital leases, less current maturities 549,621 - - 549,621
Total liabilities 1,027,589 11,804 584,824 1,624,217
NET ASSETS
Invested in capital assets 18,606,041 53,110 621 18,659,772
Unrestricted 1,052,010 41,815 2,191,856 3,285,681
Total net assets $ 19,658,051 $ 94,925 $ 2,192,477 $ 21,945,453
77
EXHIBIT E-2
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Operating revenues:
Charges for services $ 8,415,161 $ 214,123 $ 24,583 $ 8,653,867
Rents, concessions and other 41,062 - 217,722 258,784
Contributions - - 8,766,056 8,766,056
Total operating revenues 8,456,223 214,123 9,008,361 17,678,707
Operating expenses:
Personnel services 1,799,625 85,425 108,918 1,993,968
Supplies and materials 2,901,786 24,199 8,478 2,934,463
Maintenance and repairs 1,521,910 507 96 1,522,513
Utilities and other services 110,099 667 18,156 128,922
Insurance and contract support 99,426 73 7,609,142 7,708,641
Other expenses 149,048 140,860 1,004,559 1,294,467
Depreciation and amortization 3,178,072 6,571 138 3,184,781
Total operating expenses 9,759,966 258,302 8,749,487 18,767,755
Operating income (loss) (1,303,743) (44,179) 258,874 (1,089,048)
Nonoperating revenues (expenses):
Interest income - - 45,146 45,146
Gain on sale of capital assets 147,537 - - 147,537
Total nonoperating revenues
(expenses) 147,537 - 45,146 192,683
Income(loss) before transfers (1,156,206) (44,179) 304,020 (896,365)
Transfers:
Transfers in 4,283,460 - - 4,283,460
Transfers out (312,000) - - (312,000)
Total transfers 3,971,460 - - 3,971,460
Net income (loss) 2,815,254 (44,179) 304,020 3,075,095
Net assets- beginning 16,842,797 139,104 1,888,457 18,870,358
Net assets-ending $ 19,658,051 $ 94,925 $ 2,192,477 $ 21,945,453
78
EXHIBIT E-3
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Cash flows from operating activities:
Receipts from customers and users $ 9,228,387 $ 214,123 $ 9,004,315 $ 18,446,825
Payments to suppliers (6,556,672) (185,987) (8,836,821) (15,579,480)
Payments to employees (1,348,384) (61,728) (81,706) (1,491,818)
Net cash provided(used)by operating activities 1,323,331 (33,592) 85,788 1,375,527
Cash flows from noncapital financing activities:
Interfund loan - - 12,064 12,064
Transfers in from other funds 4,283,460 - - 4,283,460
Transfers out to other funds (312,000) - - (312,000)
Net cash provided by noncapital financing activities 3,971,460 - 12,064 3,983,524
Cash flows from capital and related
financing activities:
Acquisition of capital assets (5,890,593) - - (5,890,593)
Proceeds from sale of capital assets 166,680 - - 166,680
Net cash used for capital and
related financing activities (5,723,913) - - (5,723,913)
Cash flows from investing activities:
Interest on investments - - 45,146 45,146
Net Increase(Decrease)in Cash and Cash Equivalents (429,122) (33,592) 142,998 (319,716)
Cash and Cash Equivalents-Beginning 818,413 69,953 2,609,511 3,497,877
Cash and Cash Equivalents-Ending $ 389,291 $ 36,361 $ 2,752,509 $ 3,178,161
Cash flows from operating activities:
Operating income(loss) $ (1,303,743) $ (44,179) $ 258,874 $ (1,089,048)
Adjustments to reconcile operating income to net
cash provided(used)by operating activities:
Depreciation and amortization 3,178,072 6,571 138 3,184,781
(Increase)decrease in current assets:
Receivables:
Other 49,700 - (4,046) 45,654
Inventory 81,703 (3,692) - 78,011
Prepaid items (913,708) 7,329 18 (906,361)
Increase(decrease)in current liabilities:
Accounts payable-trade (521,660) (608) (67,469) (589,737)
Accrued payroll 17,349 260 (263) 17,346
Accrued vacation and sick leave 13,154 727 - 13,881
Estimated health claims payable - - (101,464) (101,464)
Other liabilities 722,464 - - 722,464
Total adjustments 2,627,074 10,587 (173,086) 2,464,575
Net cash provided(used)by
operating activities $ 1,323,331 $ (33,592) $ 85,788 $ 1,375,527
79
Agency Fund
Escheatment Fund - The agency fund is used to account for assets held by the City of Wichita
Falls in a custodial capacity. The assets in this fund have been abandoned or remain unclaimed
pending escheatment to the State of Texas.
\ MC. 4 Ara 76
T E XAS
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EXHIBIT F-1
CITY OF WICHITA FALLS, TEXAS
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
10/1/2008 Additions Deductions 9/30/2009
ESCHEATMENT FUND
Assets
Cash and cash equivalents $ 99,907 $ 221,007 $ 12,453 $ 308,461
Liabilities
Other liabilities $ 99,907 $ 221,007 $ 12,453 $ 308,461
80
Component Units
Discretely Presented Component Units of the City of Wichita Falls are legally separate entities;
however, the City is considered to be financially accountable for their operations. The four
discretely presented component units are as follows:
Wichita Falls Economic Development Corporation
The Wichita Falls Economic Development Corporation is a nonprofit corporation formed in
May 1997 for the purpose of increasing employment opportunities, primarily through assisting
qualified enterprises with funds provided by a portion of the local sales tax. The Corporation
operates under the authority of Vernon's Civil Statutes, Article 5190.6, Section 4A.
Wichita Falls 4B Sales Tax Corporation
The Wichita Falls 4B Sales Tax Corporation is a nonprofit corporation formed in May 1997 for
the purpose of increasing employment opportunities and for public improvement projects such
as parks, auditoriums, learning centers, open space improvements, athletic and exhibition
facilities and the related maintenance and operating costs of such projects. These projects
are funded by a portion of the local sales tax. The Corporation operates under the authority of
Vernon's Civil Statutes, Article 5190.6, Section 4B.
Wichita Falls Reinvestment Zone#1
The Wichita Falls Reinvestment Zone #1 was created in March 1986 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 #1 is to capture increments of growth in real
property values in the designated zone area from base values established in January 1986
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#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.
EXHIBIT G-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
COMPONENT UNITS
SEPTEMBER 30, 2009
Wichita Falls
Economic Wichita Falls Wichita Falls Wichita Falls
Development 4B Sales Tax Reinvestment Reinvestment
Corporation Corporation Zone#1 Zone#2 Totals
Assets
Cash and cash equivalents $23,498,548 $ 4,716,230 $ - $ - $28,214,778
Receivables:
1 Government agencies 576,117 576,117 - - 1,152,234
Prepaid items - 96,377 - - 96,377
Capital assets, net of accumulated depreciation 2,359,985 - - - 2,359,985
Total assets 26,434,650 5,388,724 - - 31,823,374
Liabilities
Accounts payable-trade 6,347 - - - 6,347
Total liabilities 6,347 - - - 6,347
Net assets
Investment in capital assets, net of related debt 2,359,985 - - - 2,359,985
Unrestricted 24,068,318 5,388,724 - - 29,457,042
Total net assets $26,428,303 $ 5,388,724 $ - $ - $31,817,027
81
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Program Revenue
Operating
Charges for Grants and
Expenses Services Contributions
Community development
Wichita Falls Economic Development Corporation $ 1,727,444 $ 106,800 $ -
Wichita Falls 4B Sales Tax Corporation 3,718,730 - 241,072
Wichita Falls Reinvestment Zone#1 121,378 - -
Wichita Falls Reinvestment Zone#2 241,072 - -
Total component units $ 5,808,624 $ 106,800 $ 241,072
General revenues:
Taxes:
Property tax
Sales tax
Investment earnings
Miscellaneous
Total general revenues
Change in net assets
Net assets- beginning
Net assets-ending
82
EXHIBIT G-2
Net(Expense) Revenue and
Changes in Net Assets
Wichita Falls
Economic Wichita Falls Wichita Falls Wichita Falls
Development 4B Sales Tax Reinvestment Reinvestment
Corporation Corporation Zone#1 Zone#2 Totals
$ (1,620,644) $ - $ - $ - $ (1,620,644)
- (3,477,658) - - (3,477,658)
- - (121,378) - (121,378)
- - - (241,072) (241,072)
(1,620,644) (3,477,658) (121,378) (241,072) (5,460,752)
- - - 229,939 229,939
3,408,651 3,408,651 - - 6,817,302
183,132 52,710 643 555 237,040
3,068 - 7,601 - 10,669
3,594,851 3,461,361 8,244 230,494 7,294,950
1,974,207 (16,297) (113,134) (10,578) 1,834,198
24,454,096 5,405,021 113,134 10,578 29,982,829
$ 26,428,303 $ 5,388,724 $ - $ - $ 31,817,027
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CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES
SEPTEMBER 30,2009
Fiscal Year General Obligation Bonds Combination Tax and Revenue Bonds Water and Sewer
Ending Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds Serial Bond
September 30, Maturities on Bonds and Interest Maturities(1) on Bonds and Interest Maturities(2)
2010 $ 745,000 $ 273,650 $ 1,018,650 $ 5,116,768 $ 2,180,833 $ 7,297,601 $ 2,119,997
2011 340,000 241,987 581,987 5,326,926 1,946,018 7,272,944 2,198,966
2012 355,000 227,113 582,113 5,496,767 1,782,052 7,278,819 2,287,897
2013 370,000 210,694 580,694 4,076,402 1,586,444 5,662,846 3,751,663
2014 385,000 193,581 578,581 4,141,868 1,438,523 5,580,391 3,898,431
2015 405,000 175,775 580,775 4,315,811 1,284,888 5,600,699 4,059,980
2016 425,000 154,512 579,512 4,513,240 1,122,074 5,635,314 4,226,351
2017 450,000 132,200 582,200 1,908,939 949,480 2,858,419 4,392,536
2018 475,000 108,013 583,013 1,971,894 877,336 2,849,230 4,578,541
2019 500,000 82,481 582,481 1,649,725 800,206 2,449,931 8,224,396
2020 530,000 55,606 585,606 1,717,410 732,894 2,450,304 8,575,823
2021 555,000 28,444 583,444 1,789,945 660,399 2,450,344 8,951,741
2022 - - - 1,867,351 584,281 2,451,632 9,337,675
2023 - - - 1,959,222 496,362 2,455,584 9,748,174
2024 - - 2,045,925 403,088 2,449,013 10,177,748
2025 - - - 2,147,469 304,181 2,451,650 10,621,792
2026 - - - 2,248,832 199,442 2,448,274 11,085,785
2027 - - - 710,000 88,856 798,856 3,819,245
2028 - - - 745,000 54,744 799,744 -
2029 - - - 780,000 18,525 798,525 -
$ 5,535,000 $ 1,884,056 $ 7,419,056 $ 54,529,494 $ 17,510,626 $ 70,441,851 $ 112,056,741
(1)Includes amortization of bond premium of$1,214,494.
(2)Includes amortization of bond premium of$1,331,741.
83
EXHIBIT H-1
Priority Lien Revenue Bonds Water and Sewer Subordinate Lien Revenue Bonds Totals-All Bonded Debt
Interest Total Bonds Serial Bond Interest Total Bonds Serial Bond Interest Total Bonds
on Bonds and Interest Maturities on Bonds and Interest Maturities on Bonds and Interest
-
-
$ 4,903,820 $ 7,023,817 $ 25,000 $ 356,021 $ 381,021 $ 8,006,765 $ 7,714,324 $ 15,721,089
4,815,270 7,014,236 25,000 354,974 379,974 7,890,892 7,358,249 15,249,141
4,722,912 7,010,809 25,000 353,902 378,902 8,164,664 7,085,979 15,250,643
4,618,190 8,369,853 325,000 352,804 677,804 8,523,065 6,768,132 15,291,197
4,470,630 8,369,061 310,000 338,374 648,374 8,735,299 6,441,108 15,176,407
4,308,338 8,368,318 300,000 324,455 624,455 9,080,791 6,093,456 15,174,247
4,138,637 8,364,988 275,000 310,835 585,835 9,439,591 5,726,058 15,165,649
3,961,744 8,354,280 3,180,000 298,350 3,478,350 9,931,475 5,341,774 15,273,249
3,777,550 8,356,091 3,320,000 152,388 3,472,388 10,345,435 4,915,287 15,260,722
3,595,450 11,819,846 10,374,121 4,478,137 14,852,258
3,239,325 11,815,148 10,823,233 4,027,825 14,851,058
2,856,825 11,808,566 11,296,686 3,545,668 14,842,354
2,457,000 11,794,675 11,205,026 3,041,281 14,246,307
2,039,400 11,787,574 11,707,396 2,535,762 14,243,158
1,602,900 11,780,648 12,223,673 2,005,988 14,229,661
1,146,600 11,768,392 12,769,261 1,450,781 14,220,042
669,825 11,755,610 13,334,617 869,267 14,203,884
171,675 3,990,920 4,529,245 260,531 4,789,776
-
745,000 54,744 799,744
-
780,000 18,525 798,525
$ 57,496,091 $ 169,552,832 $ 7,785,000 $ 2,842,103 $ 10,627,103 $ 179,906,235 $ 79,732,876 $ 259,639,111
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30,2009
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
General Obligation and Construction 3.75,3.85,4.00,4.125 03/01/01 09/01/21 175,000 (2002)
Refunding Bonds,Series 2001 4.25,4.375,4.625,5.00 415,000 (2003)
5.125,5.25,5.375 435,000 (2004)
(3/1,9/1) 445,000 (2005)
465,000 (2006)
880,000 (2007)
910,000 (2008)
945,000 (2009)
745,000 (2010)
340,000 (2011)
355,000 (2012)
370,000 (2013)
385,000 (2014)
405,000 (2015)
425,000 (2016)
450,000 (2017)
475,000 (2018)
500,000 (2019)
530,000 (2020)
555,000 (2021)
Total General Obligation Bonds
Combination Tax and Revenue Bonds:
Combination Tax and Revenue 3.00,3.10,3.30,3.40 11/15/03 09/01/18 740,000 (2004)
Certificates of Obligation, 3.55,3.65,3.75,3.90, 715,000 (2005)
Series 2003 4.00 735,000 (2006)
(3/1,9/1) 755,000 (2007)
775,000 (2008)
380,000 (2009)
390,000 (2010)
405,000 (2011)
420,000 (2012)
435,000 (2013)
335,000 (2014)
345,000 (2015)
360,000 (2016)
375,000 (2017)
385,000 (2018)
84
EXHIBIT H-2
(Page 1 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
$ 10,205,000 $ 10,205,000 $ 4,670,000 $ 5,535,000
10205.000 10,205,000 4,670,000 5,535,000
7.550.000 7,550,000 4,100,000 3,450,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONTD.)
SEPTEMBER 30,2009
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Combination Tax and Revenue 2.00,2.25,2.75,3.50, 09/01/04 08/01/12 685,000 (2005)
Refunding Bonds, 4.00,5.00 640,000 (2006)
Series 2004 (2/1,8/1) 650,000 (2007)
3,115,000 (2008)
3,230,000 (2009)
3,375,000 (2010)
3,500,000 (2011)
3,645,000 (2012)
Combination Tax and
Revenue Refunding
Bonds,Series 2004-Premium
Combination Tax and Revenue 4.90,5.00 09/01/05 08/01/16 115,000 (2005)
Refunding Bonds, (2/1,8/1) 2,055,000 (2006)
Series 2005 2,150,000 (2007)
2,210,000 (2013)
2,350,000 (2014)
2,490,000 (2015)
2,650,000 (2016)
Combination Tax and
Revenue Refunding
Bonds,Series 2005-Premium
Combination Tax and Revenue 3.55,3.60,3.90,4.00 11/15/06 09/01/26 705,000(2007)
Certificates of Obligation, 4.10,4.20,4.25,5.00 580,000(2008)
Series 2006A (3/1,9/1) 605,000(2009)
625,000(2010)
650,000(2011)
680,000(2012)
705,000(2013)
735,000(2014)
760,000(2015)
795,000(2016)
825,000(2017)
855,000(2018)
890,000(2019)
930,000(2020)
965,000(2021)
1,010,000(2022)
1,060,000(2023)
1,110,000(2024)
1,165,000(2025)
1,225,000(2026)
Combination Tax and
Revenue Certificates of
Obligation,Series 2006A-Premium
85
EXHIBIT H-2
(Page 2 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
18,840,000 18,840,000 8,320,000 10,520,000
-
1,060,889 834,274 226,615
14,020,000 14,020,000 4,320,000 9,700,000
-
1,050,891 492,738 558,153
16,875,000 16,875,000 1,890,000 14,985,000
- 448,769 99,811 348,958
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30, 2009
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Combination Tax and Revenue 5.20,5.30,6.00,6.25 11/15/06 09/01/26 170,000(2007)
Certificates of Obligation, (3/1,9/1) 130,000(2008)
Series 2006B 135,000(2009)
140,000(2010)
150,000(2011)
155,000(2012)
165,000(2013)
175,000(2014)
185,000(2015)
190,000(2016)
205,000(2017)
215,000(2018)
230,000(2019)
240,000(2020)
255,000(2021)
270,000(2022)
290,000(2023)
305,000(2024)
325,000(2025)
345,000(2026)
Combination Tax and
Revenue Certificates of
Obligation,Series 2006E-Premium
Combination Tax and Revenue 2.25,2.50,2.75,3.00, 01/15/09 10/01/28 340,000(2010)
Certificates of Obligation, 3.25,3.50,4.00,4.125, 405,000(2011)
Series 2009 4.25,4.50,4.625,4.75 415,000(2012)
(4/1, 10/1) 425,000(2013)
435,000(2014)
450,000(2015)
460,000(2016)
475,000(2017)
490,000(2018)
505,000(2019)
525,000(2020)
550,000(2021)
570,000(2022)
595,000(2023)
620,000(2024)
650,000(2025)
675,000(2026)
710,000(2027)
745,000(2028)
780,000(2029)
Total Combination Tax and Revenue Bonds
86
EXHIBIT H-2
(Page 3 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
4,275,000 4,275,000 435,000 3,840,000
103,279 22,511 80,768
10,820,000 10,820,000 - 10,820,000
72,380,000 74,491,780 20,392,012 54,529,494
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE (CONT'D.)
SEPTEMBER 30, 2009
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Revenue Bonds:
Priority Lien:
Water and Sewer System 4.05,4.10,4.25,4.35, 10/01/98 08/01/18 215,000 (1999)
Priority Lien Revenue Bonds, 4.45,4.55,4.625,4.65 180,000 (2000)
Series 1998B (2/1,8/1) 190,000 (2001)
200,000 (2002)
210,000 (2003)
220,000 (2004)
230,000 (2005)
240,000 (2006)
250,000 (2007)
260,000 (2008)
270,000 (2009)
280,000 (2010)
295,000 (2011)
305,000 (2012)
320,000 (2013)
335,000 (2014)
350,000 (2015)
365,000 (2016)
385,000 (2017)
400,000 (2018)
Water and Sewer System 3.75,4.00,4.375,4.50 09/01/01 08/01/12 1,665,000 (2002)
Priority Lien Revenue 5.00,5.10,5.375 1,220,000 (2003)
Bonds,Series 2001 (2/1,8/1) 1,265,000 (2004)
1,320,000 (2005)
1,365,000 (2006)
1,430,000 (2007)
1,360,000 (2008)
1,410,000 (2009)
1,490,000 (2010)
1,545,000 (2011)
1,615.000 (2012)
Water and Sewer System
Priority Lien Revenue
Bonds,Series 2001 -Premium
87
EXHIBIT H-2
(Page 4 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
5,500,000 5,500,000 2,465,000 3,035,000
118,770,000 118,770,000 114,120,000 4,650,000
- 1,634,193 666,609 967,584
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.)
SEPTEMBER 30, 2009
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
Water and Sewer System 4.00,4.25,4.375,4.50 02/01/07 08/01/27 225,000 (2008)
Priority Lien Refunding Revenue (2/1,8/1) 230,000 (2009)
Bonds,Series 2007 240,000 (2010)
250,1)00 (2011)
260,1)00 (2012)
3,325,000 (2013)
3,460,1)00 (2014)
3,610,1)00 (2015)
3,765,1)00 (2016)
3,915,000 (2017)
4,090,000 (2018)
8,140,000 (2019)
8,500,1)00 (2020)
8,885,000 (2021)
9,280,000 (2022)
9,700,1)00 (2023)
10,140,1)00 (2024)
10,595,000 (2025)
11,070,000 (2026)
3,815,000 (2027)
Water and Sewer System
Priority Lien Refunding Revenue
Bonds,Series 2007-Premium
Total Priority Lien Revenue Bonds
Water and Sewer System 3.14,3.39,3.49,3.59, 05/22/98 08/01/18 25,000 (1999)
Subordinate Lien Revenue 3.64,3.69,3.79,3.89, 25,000 (2000)
Bonds,Series 1998 3.94,3.99,4.09,4.19, 25,000 (2001)
4.29,4.39,4.44,4.49, 25,000 (2002)
4.54,4.59 25,000 (2003)
(2/1,8/1) 25,000 (2004)
25,000 (2005)
25,000 (2006)
25,000 (2007)
25,000 (2008)
25,000 (2009)
25,000 (2010)
25,000 (2011)
25,000 (2012)
325,000 (2013)
310,1)00 (2014)
300,000 (2015)
275,1)00 (2016)
3,180,000 (2017)
3,320,1)00 (2018)
Total Subordinate Lien Bonds
Total Revenue Bonds
Total All Bonds
88
EXHIBIT H-2
(Page 5 of 5)
Bonds
Retired or
Authorized Issued Refunded Outstanding
103,495,000 103,495,000 455,000 103,040,000
- 437,938 73,781 364,157
227,765,000 229,837,131 117,780,390 112,056,741
8,060,000 8,060,000 275,000 7,785,000
8,060,000 8,060,000 275,000 7,785,000
235,825,000 237,897,131 118,055,390 119,841,741
$ 318,410,000 $ 322,593,911 $ 143,117,402 $ 179,906,235
Ahc4,4a
TEXAS
Nue5 e5 4olden Orportuni7ies
EXHIBIT H-3
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE COVERAGE - REVENUE BONDS
SEPTEMBER 30, 2009
Water and Sewer Revenue Bonds:
Change in net assets (Exhibit A-8) $ 2,252,279
Add:
Depreciation and amortization $ 5,096,664
Interest expense and paying agent fees 6,327,372
Transfers out 1,469,942 12,893,978
Subtract:
West Texas Utilities water revenues 415,447
Gain (loss) on sale/abandonment of capital assets (111,479)
Capital contributions from developers 189,114
Transfers in 169,823 (662,905)
Net earnings for determining debt service coverage $14,483,352
Priority Subordinate
Lien Bonds Lien Bonds
Net earnings for determining debt service coverage $14,483,352
Principal and interest requirements to maturity $ 169,552,832 $10,627,103
Number of years remaining to pay bonds 18 9
Average annual principal and interest requirement 9,419,602 1,180,789
Minimum bond covenant debt service coverage 1.25 1.10
Minimum debt service coverage requirement $ 11,774,502 $ 1,298,868 13,073,370
Excess over debt service coverage requirements $ 1,409,982
89
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
SEPTEMBER 30,2009
Buildings Machinery
Land and and and
Betterments Improvements Equipment
Administrative services:
Mayor and City Council $ - $ - $ -
City Manager - 265,898 6,259
Personnel/Risk Management - - 7,584
Martin Luther King Center - 786,763 7,641
Library 477,942 4,523,930 474,468
General Public Information - - 311,564
Building Maintenance - 1,076,622 39,208
Nondepartmental - 276,814 161,888
Municipal Court 230,000 316,527 192,921
Legal - - 1,869
City Clerk - - 1,411
Homeland security - - 579,132
Training Center - - 306,928
Golf course 3,808,376 531,686 45,150
Total administrative services 4,516,318 7,778,240 2,136,023
Police 1,131,749 6,071,408 10,769,313
Fire 201,218 7,450,763 238,350
Parks and recreation:
Recreation 665,775 1,660,593 184,693
Park maintenance 12,042,362 908,781 28,705
Cemetery 131,619 - 9,423
Total parks and recreation 12,839,756 2,569,374 222,821
Accounting/finance:
Accounting/finance - - 1,192
Information Systems - - 1,979,634
Total accounting/finance - - 1,980,826
Community development:
Planning - - 45,795
Inspection - - 7,447
Property management 2,760,062 420,891 28,290
Weed and Seed program - - 7,504
Total community development 2,760,062 420,891 89,036
Public works:
Engineering 125,806 29,665 124,900
Street maintenance 10,147 98,073 23,823
Infrastructure - - -
Total public works 135,953 127,738 148,723
Health:
Administration 34,820 2,871,076 309,649
General City nursing 76,411 1,123 33,701
Environmental health - 8,956 11,042
Lab water pollution - - 17,861
Animal reclaim center 150,737 - -
Total health 261,968 2,881,155 372,253
Traffic and transportation - 31,045 162,069
Multi-Purpose Events Center 9,560,210 33,947,463 333,882
Wichita Falls Business Park 1,099,507 - -
Total capital assets used in the operation of governmental funds $ 32,506,741 $ 61,278,077 $ 16,453,296
90
EXHIBIT H-4
Motor
Furniture Vehicles
and and Construction
Fixtures Equipment Infrastructure in Progress Totals
$ 5,218 $ - $ - $ - $ 5,218
15,050 - - - 287,207
4,660 - - - 12,244
11,416 - - - 805,820
90,579 - - - 5,566,919
3,184 - - - 314,748
- - - - 1,115,830
- - - - 438,702
1,435 - - - 740,883
- - - - 1,869
- - - - 1,411
- - - - 579,132
- - - - 306,928
- - - - 4,385,212
131,542 - - - 14,562,123
8,760 - - 5,672,878 23,654,108
- - - - 7,890,331
11,727 - - - 2,522,788
- - - 485,348 13,465,196
- - - - 141,042
11,727 - - 485,348 16,129,026
- - - - 1,192
- - - - 1,979,634
- - - - 1,980,826
- - - - 45,795
- - - - 7,447
- - - - 3,209,243
- - - - 7,504
- - - - 3,269,989
- - - - 280,371
1,393 - - - 133,436
- - 144,761,072 365,809 145,126,881
1,393 - 144,761,072 365,809 145,540,688
21,835 - - - 3,237,380
2,147 - - - 113,382
- - - - 19,998
- - - - 17,861
- - - 75,625 226,362
23,982 - - 75,625 3,614,983
- - 8,087,444 - 8,280,558
28,288 - - - 43,869,843
- - - - 1,099,507
$ 205,692 $ - $ 152,848,516 $ 6,599,660 $ 269,891,982
EXHIBIT H-5
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED SEPTEMBER 30,2009
Beginning Ending
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Administrative services:
Mayor and City Council $ 10,391 $ - $ 5,173 $ 5,218
City Manager 1,463,157 - 1,175,950 287,207
Personnel/Risk Management 10,549 1,695 - 12,244
Martin Luther King Center 579,959 225,861 - 805,820
Library 5,679,543 22,242 134,866 5,566,919
General Public Information 274,305 44,537 4,094 314,748
Building Maintenance 1,113,513 2,317 - 1,115,830
Nondepartmental 612,354 36,417 210,069 438,702
Municipal Court 744,415 - 3,532 740,883
Legal 3,219 - 1,350 1,869
City Clerk 1,411 - - 1,411
Homeland security 561,472 17,660 - 579,132
Training center 229,914 77,014 - 306,928
Golf course 4,463,206 5,307 83,301 4,385,212
Total administrative services 15,747,408 433,050 1,618,335 14,562,123
Police 19,997,004 4,049,767 392,663 23,654,108
Fire 7,345,955 544,376 - 7,890,331
Parks and recreation:
Recreation 2,564,246 65,224 106,682 2,522,788
Park maintenance 12,856,128 624,133 15,065 13,465,196
Cemetery 37,323 103,719 - 141,042
Total parks and recreation 15,457,697 793,076 121,747 16,129,026
Accounting/finance:
Accounting/finance 5,275 - 4,083 1,192
Information Systems 2,035,033 125,526 180,925 1,979,634
Total accounting/finance 2,040,308 125,526 185,008 1,980,826
Community development:
Planning 45,795 - - 45,795
Inspection 7,447 - - 7,447
Code enforcement 66,550 - 66,550 -
Property management 1,613,096 1,729,179 133,032 3,209,243
Lake lot administration 1,018 - 1,018 -
Weed and Seed program 7,504 - - 7,504
Total community development 1,741,410 1,729,179 200,600 3,269,989
Public works:
Engineering 277,226 8,700 5,555 280,371
Street maintenance 143,846 14,960 25,370 133,436
Infrastructure 141,471,563 9,872,226 6,216,908 145,126,881
Total public works 141,892,635 9,895,886 6,247,833 145,540,688
Health:
Administration 3,250,949 1,636 15,205 3,237,380
General city nursing 126,499 - 13,117 113,382
Environmental health 19,998 - - 19,998
Lab water pollution 19,015 - 1,154 17,861
Animal reclaim center - 226,362 - 226,362
Total health 3,416,461 227,998 29,476 3,614,983
Traffic and transportation 8,037,892 338,915 96,249 8,280,558
Multi-Purpose Events Center 43,878,121 11,549 19,827 43,869,843
Wichita Falls Business Park 1,099,507 - - 1,099,507
Total capital assets $ 260,654,398 $ 18,149,322 $ 8,911,738 $ 269,891,982
91
EXHIBIT H-6
CITY OF WICHITA FALLS, TEXAS
MUNICIPAL AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Capital Assets:
Land and betterments $2,239,667 $ - $ - $2,239,667
Buildings and improvements 1,548,001 - - 1,548,001
Machinery and equipment 32,403 - - 32,403
Furniture and fixtures 36,705 - - 36,705
Construction in progress - 248,160 - 248,160
Total capital assets 3,856,776 248,160 - 4,104,936
Accumulated Depreciation:
Land and betterments 1,474,192 31,321 - 1,505,513
Buildings and improvements 1,017,682 29,316 - 1,046,998
Machinery and equipment 20,105 2,332 - 22,437
Furniture and fixtures 28,080 3,413 - 31,493
Total accumulated depreciation 2,540,059 66,382 - 2,606,441
Net capital assets $ 1,316,717 $ 181,778 $ - $ 1,498,495
92
EXHIBIT H-7
CITY OF WICHITA FALLS, TEXAS
KICKAPOO AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Capital Assets:
Land and betterments $5,408,967 $ 1,091,170 $ - $ 6,500,137
Buildings and improvements 2,592,116 666,900 - 3,259,016
Machinery and equipment 960,925 - 350,000 610,925
Construction in progress 220,058 7,192 220,058 7,192
Total capital assets 9,182,066 1,765,262 570,058 10,377,270
Accumulated Depreciation:
Land and betterments 533,720 168,440 - 702,160
Buildings and improvements 134,594 96,197 - 230,791
Machinery and equipment 106,986 32,089 - 139,075
Total accumulated depreciation 775,300 296,726 - 1,072,026
Net capital assets $8,406,766 $ 1,468,536 $ 570,058 $ 9,305,244
93
EXHIBIT H-8
CITY OF WICHITA FALLS, TEXAS
TRANSIT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Capital Assets:
Land and betterments $ 61,925 $ - $ - $ 61,925
Buildings and improvements 680,718 - - 680,718
Machinery and equipment 262,181 1,220 27,018 236,383
Total capital assets 1,004,824 1,220 27,018 979,026
Accumulated Depreciation:
Buildings and improvements 195,130 10,456 - 205,586
Machinery and equipment 150,619 24,022 17,698 156,943
Total accumulated depreciation 345,749 34,478 17,698 362,529
Net capital assets $ 659,075 $ (33,258) $ 9,320 $ 616,497
94
EXHIBIT H-9
CITY OF WICHITA FALLS, TEXAS
STORMWATER DRAINAGE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Capital Assets:
Drainage $2,818,157 $ 5,410,669 $ - $8,228,826
Land betterments 2,300 - - 2,300
Machinery and equipment 69,860 3,516 - 73,376
Construction in progress 2,794,972 3,906,084 5,450,724 1,250,332
Total capital assets 5,685,289 9,320,269 5,450,724 9,554,834
Accumulated Depreciation:
Drainage 40,351 7,161 - 47,512
Land betterments 58 115 - 173
Machinery and equipment 122,259 73,647 - 195,906
Total accumulated depreciation 162,668 80,923 - 243,591
Net capital assets $5,522,621 $ 9,239,346 $ 5,450,724 $9,311,243
95
EXHIBIT H-10
CITY OF WICHITA FALLS, TEXAS
SANITATION FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER
30, 2009
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Capital Assets:
Land and betterments $2,831,320 $ 2,188,886 $ 24,425 $4,995,781
Buildings and improvements 2,309,353 - 2,060 2,307,293
Machinery and equipment 310,108 - 23,047 287,061
Construction in progress 1,383,406 35,234 1,383,406 35,234
Total capital assets 6,834,187 2,224,120 1,432,938 7,625,369
Accumulated Depreciation:
Land and betterments 193,882 63,013 4,011 252,884
Buildings and improvements 1,232,161 47,549 2,060 1,277,650
Machinery and equipment 120,492 18,109 23,046 115,555
Total accumulated depreciation 1,546,535 128,671 29,117 1,646,089
Net capital assets $5,287,652 $ 2,095,449 $1,403,821 $5,979,280
96
EXHIBIT H-11
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Capital Assets:
Land and betterments $ 24,345,990 $ - $ 525 $ 24,345,465
Buildings, systems and
improvements 225,850,913 19,208,395 285,486 244,773,822
Machinery and equipment 4,510,459 79,953 9,425 4,580,987
Furniture and fixtures 1,164 - - 1,164
Motor vehicles 1,235 - - 1,235
Construction in progress 11,354,024 6,057,382 11,211,797 6,199,609
Total capital assets 266,063,785 25,345,730 11,507,233 279,902,282
Accumulated Depreciation:
Land and betterments 9,091,824 243,632 - 9,335,456
Buildings, systems and
improvements 70,069,967 4,509,231 169,670 74,409,528
Machinery and equipment 3,291,255 165,117 9,425 3,446,947
Furniture and fixtures 1,134 30 - 1,164
Motor vehicles 1,235 - - 1,235
Total accumulated depreciation 82,455,415 4,918,010 179,095 87,194,330
Net capital assets $183,608,370 $ 20,427,720 $11,328,138 $192,707,952
97
EXHIBIT H-12
CITY OF WICHITA FALLS, TEXAS
FLEET MAINTENANCE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Capital Assets:
Land and betterments $ 436,269 $ - $ - $ 436,269
Buildings and improvements 4,120,552 8,428 - 4,128,980
Machinery and equipment 579,169 347,057 - 926,226
Furniture and fixtures 6,358 - - 6,358
Motor vehicles 41,576,845 5,852,568 3,587,831 43,841,582
Construction in progress 6,706 - - 6,706
Total capital assets 46,725,899 6,208,053 3,587,831 49,346,121
Accumulated Depreciation:
Land and betterments - other 392 261 - 653
Buildings and improvements 1,816,575 85,911 - 1,902,486
Machinery and equipment 495,238 105,724 - 600,962
Furniture and fixtures 6,357 - - 6,357
Motor vehicles and equipment 28,494,674 3,036,992 3,302,044 28,229,622
Total accumulated depreciation 30,813,236 3,228,888 3,302,044 30,740,080
Net capital assets $ 15,912,663 $ 2,979,165 $ 285,787 $ 18,606,041
98
EXHIBIT H-13
CITY OF WICHITA FALLS, TEXAS
DUPLICATING SERVICES FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Capital Assets:
Machinery and equipment $ 116,690 $ - $ 1,695 $ 114,995
Accumulated Depreciation:
Machinery and equipment 57,009 6,571 1,695 61,885
Net capital assets $ 59,681 $ (6,571) $ - $ 53,110
99
EXHIBIT H-14
CITY OF WICHITA FALLS, TEXAS
EMPLOYEE BENEFIT TRUST FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Capital Assets:
Machinery and equipment $ 1,379 $ - $ - $ 1,379
Accumulated Depreciation:
Machinery and equipment 621 138 - 759
Net capital assets $ 758 $ (138) $ - $ 620
100
EXHIBIT H-15
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2009
Balance Balance
10/1/2008 Additions Deletions 9/30/2009
Capital Assets:
Land and betterments $ 1,469,797 $ - $ - $ 1,469,797
Buildings and improvements 957,191 - - 957,191
Total capital assets 2,426,988 - - 2,426,988
Accumulated Depreciation:
Buildings and improvements 47,859 19,144 - 67,003
Net capital assets $ 2,379,129 $ (19,144) $ - $ 2,359,985
101
Statistical Section (Unaudited)
This part of the City of Wichita Falls, Texas' comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the
government's overall financial health.
Contents Page
Financial Trends 102
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 108
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax.
Debt Capacity 112
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 117
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 119
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates to the
services the government provides and the activities it performs.
CITY OF WICHITA FALLS, TEXAS
NET ASSETS BY COMPONENT
LAST SEVEN FISCAL YEARS (UNAUDITED)
2002-2003 2003-2004 2004-2005
Governmental activities
Invested in capital assets, net of related debt $ 64,632,911 $ 90,045,882 $ 127,366,654
Restricted 597,966 626,256 1,200,845
Unrestricted 16,561,287 25,286,103 20,500,308
Total governmental activities net assets $ 81,792,164 $ 115,958,241 $ 149,067,807
Business-type activities
Invested in capital assets, net of related debt $ 89,683,262 $ 99,419,642 $ 112,568,870
Restricted 15,483,121 15,436,872 15,679,474
Unrestricted 14,109,004 10,631,269 7,698,134
Total business-type activities net assets $ 119,275,387 $ 125,487,783 $ 135,946,478
Primary government
Invested in capital assets, net of related debt $ 154,316,173 $ 189,465,524 $ 239,935,524
Restricted 16,081,087 16,063,128 16,880,319
Unrestricted 30,670,291 35,917,372 28,198,442
Total primary government net assets $ 201,067,551 $ 241,446,024 $ 285,014,285
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
102
IEXHIBIT I-1
2005-2006 2006-2007 2007-2008 2008-2009
$ 132,958,014 $ 133,737,880 $ 139,868,969 $ 138,550,295
1,373,786 1,541,859 1,631,963 1,186,730
20,689,055 27,487,733 21,189,932 14,880,792
$ 155,020,855 $ 162,767,472 $ 162,690,864 $ 154,617,817
$ 120,263,391 $ 132,852,246 $ 143,023,239 $ 156,170,924
16,234,804 12,681,053 12,945,497 12,958,909
11,962,104 12,513,454 12,810,854 10,712,005
$ 148,460,299 $ 158,046,753 $ 168,779,590 $ 179,841,838
$ 253,221,405 $ 266,590,126 $ 282,892,208 $ 294,721,219
17,608,590 14,222,912 14,577,460 14,145,639
32,651,159 40,001,187 34,000,786 25,592,797
$ 303,481,154 $ 320,814,225 $ 331,470,454 $ 334,459,655
EXHIBIT 1-2
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET ASSETS
LAST SEVEN FISCAL YEARS(UNAUDITED)
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Expenses
Governmental activities:
Administrative services $ 9,816,232 $ 9,524,291 $ 9,174,786 $ 10,648,044 $ 10,363,134 $ 11,662,086 $ 12,026,311
Police 16,082,473 16,283,542 17,107,502 17,733,480 18,587,210 20,527,967 21,008,696
Fire 9,742,147 10,058,363 10,337,851 10,825,964 11,295,623 12,492,842 13,028,146
Parks and recreation 4,112,071 4,164,247 4,220,079 4,210,463 4,478,311 5,107,579 5,757,363
Accounting/finance 1,721,239 1,851,988 1,841,475 1,843,810 1,893,389 2,231,952 2,473,024
Community development 7,536,269 7,897,167 7,181,397 6,293,156 6,573,917 6,921,352 7,584,142
Public works 5,627,020 6,404,132 6,742,355 7,706,209 8,616,348 8,314,596 8,282,164
Health 4,632,486 4,523,907 4,435,702 4,409,374 4,736,162 4,873,643 4,995,764
Traffic and transportation 2,138,240 1,983,322 2,181,799 2,527,270 2,590,309 2,679,026 2,499,869
Multi-Purpose Events Center 622,406 1,589,670 2,015,329 2,166,331 4,291,434 4,335,968 4,027,612
Interest and fees on long-tens debt 905,959 921,705 843,358 721,762 1,308,748 1,405,383 1,620,854
Total governmental activities expenses 62,936,542 65,202,334 66,081,633 69,085,863 74,734,585 80,552,394 83,303,985
Business-type activities:
Golf 747,356 760,705 779,151 901,454 - - -
Municipal Airport 220,970 250,807 243,414 281,117 276,368 310,980 289,195
O Kickapoo Airport 295,987 338,957 377,299 574,929 966,961 1,245,021 1,354,624
c' Transit 1,101,145 1,028,491 1,240,131 1,280,540 1,373,283 1,793,369 1,616,322
Sanitation 7,087,574 7,418,146 7,715,572 8,059,991 8,638,374 9,199,341 8,509,153
Water and Sewer 25,076,194 24,721,561 25,604,413 26,380,183 26,764,879 28,126,920 30,165,844
Stormwater drainage 10,633 112,082 125,989 328,833 355,697 407,035 477,415
Total business-type activities expenses 34,539,859 34,630,749 36,085,969 37,807,047 38,375,562 41,082,666 42,412,553
Total primary govemment expenses $ 97,476,401 $ 99,833,083 $ 102,167,602 $ 106,892,910 $ 113,110,147 $ 121,635,060 $ 125,716,518
Program Revenues
Governmental activities:
Charges for services:
Administrative services $ 3,259,315 $ 3,631,020 $ 3,640,715 $ 3,691,411 $ 3,327,519 $ 3,211,546 $ 4,267,891
Police 401,168 372,510 361,201 402,583 700,216 600,020 470,020
Fire 2,062 3,233 1,458 5,195 5,434 2,612 4,389
Parks and recreation 513,109 479,204 455,861 473,121 443,827 517,707 513,682
Community development 771,418 1,265,897 1,078,293 1,195,203 1,138,671 1,124,534 891,803
Public works - - - 48,871 7,286 100,000 165,363
Health 590,441 668,491 711,399 807,002 803,115 864,874 888,890
Traffic and transportation 202,392 214,266 195,585 292,234 212,911 154,941 164,350
Multi-Purpose Events Center - - - - 2,215,411 2,141,584 1,789,269
Operating grants and contributions 9,489,723 11,968,460 14,734,689 11,109,618 12,298,595 11,468,654 10,891,021
Capital grants and contributions 2,608,168 6,970,138 1,176,107 2,667,389 3,218,003 3,097,319 1,631,109
Total governmental activities program revenues 17,817,796 25,573,219 22,355,308 20,692,627 24,370,988 23,283,791 21,677,767
EXHIBIT 1-2
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET ASSETS(CONT'D.)
LAST SEVEN FISCAL YEARS(UNAUDITED)
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Business-type activities:
Charges for services:
Golf 687,153 677,498 622,434 828,055 - - -
Municipal Airport 359,006 416,573 446,388 448,384 441,471 430,561 544,332
Kickapoo Airport 348,512 385,871 270,194 347,761 789,522 1,025,300 745,444
Transit 160,749 194,388 162,018 214,771 206,109 224,856 229,483
Sanitation 8,783,064 8,920,801 9,133,955 9,517,673 9,917,386 10,939,617 12,025,478
Water and Sewer 28,488,384 27,857,286 30,208,286 33,436,585 30,031,969 33,042,845 33,888,553
Stormwater drainage 1,035,683 1,036,450 1,042,278 1,209,196 1,267,533 1,318,340 1,252,544
Operating grants and contributions 817,451 937,025 926,088 1,251,770 1,026,685 1,389,202 1,142,191
Capital grants and contributions 879,222 376,437 862,398 455,217 580,729 1,021,644 456,743
Total business-type activities program revenues 41,559,224 40,802,329 43,674,039 47,709,412 44,261,404 49,392,365 50,284,768
Total primary government program revenues $ 59,377,020 $ 66,375,548 $ 66,029,347 $ 68,402,039 $ 68,632,392 $ 72,676,156 $ 71,962,535
Net(Expense)/Revenue
Governmental activities $ (45,118,746) $ (39,629,115) $ (43,726,325) $ (48,393,236) $ (50,363,597) $ (57,268,603) $ (61,626,198)
Business-type activities 7,019,365 6,171,580 7,588,070 9,902,365 5,885,842 8,309,699 7,872,215
Total primary government net expense $ (38,099,381) $ (33,457,535) $ (36,138,255) $ (38,490,871) $ (44,477,755) $ (48,958,904) $ (53,753,983)
O
A
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property tax $ 20,890,964 $ 21,404,857 $ 22,578,788 $ 23,522,746 $ 24,975,158 $ 26,160,116 $ 27,869,849
Sales tax 16,598,733 17,192,703 17,845,505 19,272,204 20,068,529 21,353,896 20,451,906
Franchise fees 5,286,038 5,218,860 5,191,741 5,740,202 5,780,311 5,598,406 5,570,399
Hotel occupancy tax 1,221,620 1,278,102 1,262,518 1,333,747 1,417,397 1,560,353 1,506,423
Beverage tax 196,663 202,841 204,727 234,075 236,367 251,386 249,121
Bingo tax 230,280 209,825 164,128 178,666 166,223 168,864 109,739
Investment earnings 404,146 379,150 754,935 1,409,188 2,684,388 1,727,671 415,156
Gain(loss)on sale of capital assets 3,045 (24,061) - - - (397,404) -
Miscellaneous 309,168 482,908 166,648 172,500 712,358 242,811 134,983
Transfers 5,748,106 2,241,628 473,644 2,482,958 1,972,819 525,898 (2,439,625)
Total governmental activities 50,888,763 48,586,813 48,642,634 54,346,286 58,013,550 57,191,997 53,867,951
Business-type activities:
Investment earnings 2,238,809 1,764,311 3,417,875 5,094,416 5,575,703 2,949,036 602,872
Miscellaneous 1,167,155 518,133 (73,611) - 199,174 - 147,536
Transfers (3,698,431) (2,241,628) (473,644) (2,482,958) (1,972,819) (525,898) 2,439,625
Total business-type activities (292,467) 40,816 2,870,620 2,611,460 3,802,058 2,423,138 3,190,033
Total primary government $ 50,596,296 $ 48,627,629 $ 51,513,254 $ 56,957,746 $ 61,815,808 $ 59,615,135 $ 57,057,984
Change in Net Assets
Governmental activities $ 5,770,017 $ 8,957,698 $ 4,916,309 $ 5,953,050 $ 7,649,953 $ (76,606) $ (7,758,247)
Business-type activities 6,726,898 6,212,396 10,458,690 12,513,825 9,687,900 10,732,837 11,062,248
Total primary government $ 12,496,915 $ 15,170,094 $ 15,374,999 $ 18,466,875 $ 17,337,853 $ 10,656,231 $ 3,304,001
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
CITY OF WICHITA FALLS, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
1999-2000 2000-2001 2001-2002 2002-2003
General Fund
Reserved $ 468,513 $ 1,328,430 $ 685,011 $ 1,914,615
Unreserved 9,787,838 8,750,034 8,367,731 8,368,357
Total general fund $ 10,256,351 $ 10,078,464 $ 9,052,742 $ 10,282,972
All other Governmental Funds
Reserved $ 2,174,801 $ 1,853,775 $ 1,937,961 $ 3,240,727
Unreserved, reported in:
Special revenue funds 4,601,572 4,485,021 5,769,119 4,163,834
Capital projects funds 5,557,493 19,496,303 7,064,161 3,205,633
Total all other governmental funds $ 12,333,866 $ 25,835,099 $ 14,771,241 $ 10,610,194
105
EXHIBIT 1-3
Fiscal Year
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
$ 1,516,079 $ 2,439,595 $ 2,393,129 $ 3,161,776 $ 2,686,432 $ 1,499,613
9,507,595 10,608,472 11,503,795 15,569,840 14,500,836 13,042,044
$ 11,023,674 $ 13,048,067 $ 13,896,924 $ 18,731,616 $ 17,187,268 $ 14,541,657
$ 11,092,483 $ 5,102,543 $ 3,179,513 $ 2,371,514 $ 2,888,944 $ 6,254,620
4,673,755 4,299,100 4,746,615 7,089,584 6,180,559 4,808,127
3,394,688 3,738,484 4,857,539 23,458,510 15,033,333 10,963,970
$ 19,160,926 $ 13,140,127 $ 12,783,667 $ 32,919,608 $ 24,102,836 $ 22,026,717
CITY OF WICHITA FALLS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
1999-2000 2000-2001 2001-2002 2002-2003
Revenues
Taxes $ 40,069,102 $ 40,422,984 $ 41,798,664 $ 44,425,106
Charges for services 1,763,969 1,825,170 2,153,223 2,338,678
Licenses and permits 660,715 1,892,099 1,918,690 2,001,117
Fines and forfeitures 1,551,929 1,404,205 1,797,795 1,773,449
Intergovernmental revenue 9,442,324 8,207,044 9,000,057 9,469,723
Contributions 88,612 3,451,239 837,213 2,698,930
Miscellaneous revenue 2,700,040 2,906,992 1,833,247 1,539,063
Total revenues 56,276,691 60,109,733 59,338,889 64,246,066
Expenditures
Administrative services 8,020,057 8,592,476 8,491,188 9,169,430
Police 13,944,759 14,062,836 14,716,145 15,586,666
Fire 8,389,594 8,447,773 9,084,534 9,456,869
Parks and recreation 4,025,279 3,626,134 3,821,791 3,920,357
Accounting/finance 1,331,432 1,489,661 1,702,554 1,604,484
Community development 5,518,983 5,635,484 5,970,759 7,569,296
Public works 6,048,016 4,760,212 6,204,297 5,311,740
Health 3,687,213 3,872,347 4,146,598 4,513,769
Traffic and transportation 1,768,336 1,778,879 2,261,335 1,923,176
Multi-Purpose Events Center - - - 57,848
Capital outlay 3,809,884 4,852,858 13,910,949 10,333,520
Debt service- principal 1,612,677 1,690,000 1,805,000 2,120,000
Debt service- interest 866,006 875,128 1,181,524 924,557
Total expenditures 59,022,236 59,683,788 73,296,674 72,491,712
Excess of revenues over(under)
expenditures (2,745,545) 425,945 (13,957,785) (8,245,646)
Other Financing Sources (Uses)
Transfers in 2,688,753 14,439,112 3,450,446 6,805,264
Transfer out (3,031,155) (9,310,328) (1,436,580) (2,437,133)
Proceeds from general obligation bonds - 10,218,670 - 2,450,000
Payment to refunded bonds escrow agent - (3,025,400) - (2,450,000)
Total other financing sources (uses) (342,402) 12,322,054 2,013,866 4,368,131
Net change in fund balances $ (3,087,947) $ 12,747,999 $(11,943,919) $ (3,877,515)
Debt service as a percentage of
noncapital expenditures 4.49% 4.68% 5.03% 4.90%
106
EXHIBIT 1-4
Fiscal Year
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
$ 45,512,949 $ 47,236,518 $ 50,228,509 $ 52,637,318 $ 55,155,574 $ 55,752,982
2,452,353 2,480,148 2,597,044 3,202,699 3,270,930 3,689,717
2,292,695 2,218,119 2,206,023 2,215,813 2,116,140 1,887,434
2,189,001 2,161,782 2,481,816 2,127,062 1,964,391 1,970,612
11,444,840 13,003,816 9,682,237 11,136,433 8,428,310 9,287,371
7,493,758 2,906,980 4,094,770 4,366,961 6,137,663 3,234,759
2,007,303 1,985,383 2,816,865 6,664,315 5,369,689 3,804,438
73,392,899 71,992,746 74,107,264 82,350,601 82,442,697 79,627,313
9,330,631 8,701,521 10,103,642 9,965,494 10,873,576 11,315,351
15,996,964 16,731,373 17,228,066 18,068,168 19,524,824 20,182,150
9,851,203 10,196,605 10,739,651 11,238,422 12,206,774 12,833,183
4,016,394 4,106,476 4,110,013 4,373,460 4,841,597 5,457,410
1,757,006 1,754,186 1,765,350 1,811,690 2,087,572 2,327,608
8,137,672 7,282,012 6,355,136 6,652,162 6,925,581 7,433,617
4,488,704 4,653,539 5,128,384 6,038,790 5,606,784 5,452,172
4,452,507 4,391,270 4,407,758 4,728,414 4,775,418 4,950,213
1,768,336 1,937,424 2,309,854 2,355,249 2,459,070 2,292,890
783,244 1,205,153 1,355,846 3,498,189 3,506,091 3,208,713
8,235,652 10,171,128 7,244,115 7,093,636 15,219,394 12,088,928
2,970,000 3,050,000 3,190,000 2,510,000 2,395,000 2,065,000
900,526 852,624 731,921 1,271,106 1,456,540 1,364,831
72,688,839 75,033,311 74,669,736 79,604,780 91,878,221 90,972,066
704,060 (3,040,565) (562,472) 2,745,821 (9,435,524) (11,344,753)
7,142,007 6,922,585 3,282,459 5,922,091 7,268,938 5,530,309
(6,393,643) (7,878,421) (2,227,586) (5,401,565) (8,194,534) (9,433,265)
7,549,000 - - 21,702,048 - 10,840,779
8,297,364 (955,836) 1,054,873 22,222,574 (925,596) 6,937,823
$ 9,001,424 $ (3,996,401) $ 492,401 $ 24,968,395 $ (10,361,120) $ (4,406,930)
6.01% 6.02% 5.82% 5.21% 5.02% 4.35%
EXHIBIT 1-5
CITY OF WICHITA FALLS, TEXAS
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS-
LAST TEN FISCAL YEARS(UNAUDITED)
Fiscal Hotel
Year Property Sales Franchise Occupancy Beverage Bingo Total
1999-2000 $17,327,503 $15,832,239 $ 5,519,843 $1,048,419 $ 163,916 $ 173,603 $40,065,523
2000-2001 18,049,023 16,323,752 4,612,917 1,088,850 176,680 171,763 40,422,985
2001-2002 19,055,248 16,222,571 4,933,338 1,201,114 188,517 197,875 41,798,663
2002-2003 20,891,772 16,598,733 5,286,038 1,221,620 196,663 230,280 44,425,106
2003-2004 21,410,615 17,192,706 5,218,860 1,278,102 202,841 209,825 45,512,949
2004-2005 22,567,902 17,845,502 5,191,741 1,262,518 204,727 164,128 47,236,518
2005-2006 23,469,615 19,272,204 5,740,202 1,333,747 234,075 178,666 50,228,509
2006-2007 24,968,481 20,068,529 5,780,311 1,417,397 236,367 166,233 52,637,318
2007-2008 26,217,499 21,353,896 5,598,406 1,565,523 251,386 168,864 55,155,574
2008-2009 27,865,394 20,451,906 5,570,399 1,506,423 249,121 109,739 55,752,982
107
EXHIBIT 1-6
CITY OF WICHITA FALLS, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY-
LAST TEN FISCAL YEARS(UNAUDITED)
Personal Ratio of Total
Real Property Property Total Total Assessed to
Fiscal Assessed Assessed Assessed Direct Estimated Total Estimated
Year Value Value Value Tax Rate Actual Value Actual Value
1999-2000 $2,448,370,999 $ 605,524,662 $3,053,895,661 $0.55194 $3,053,895,661 100.00%
2000-2001 2,550,564,079 622,493,821 3,173,057,900 0.55194 3,173,057,900 100.00%
2001-2002 2,671,429,859 667,334,298 3,338,764,157 0.55194 3,338,764,157 100.00%
2002-2003 2,775,175,780 652,625,915 3,427,801,695 0.55194 3,427,801,695 100.00%
2003-2004 2,901,708,013 629,284,576 3,530,992,589 0.59246 3,530,992,589 100.00%
2004-2005 3,047,463,928 632,056,253 3,679,520,181 0.59246 3,679,520,181 100.00%
2005-2006 2,992,717,987 726,512,178 3,719,230,165 0.59246 3,719,230,165 100.00%
2006-2007 3,208,236,037 744,353,082 3,952,589,119 0.59246 3,952,589,119 100.00%
2007-2008 3,389,094,572 802,449,151 4,191,543,723 0.59246 4,191,543,723 100.00%
2008-2009 3,553,825,553 877,030,381 4,430,855,934 0.59526 4,430,855,934 100.00%
108
EXHIBIT 1-7
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES-
LAST TEN FISCAL YEARS (UNAUDITED)
Fiscal City of Wichita Burkbumett City View Iowa Park Wichita Falls
Year Wichita Falls County I.S.D. (1) I.S.D. (2) C.I.S.D.(3) I.S.D. (4) Totals
Tax Rates Per$100 Valuation
1999-2000 $ 0.55 $ 0.38 $ 1.49 $ 1.60 $ 1.24 $ 1.50 $ 6.76
2000-2001 0.55 0.40 1.59 1.69 1.40 1.54 7.17
2001-2002 0.55 0.40 1.61 1.69 1.40 1.54 7.19
2002-2003 0.59 0.42 1.63 1.69 1.61 1.56 7.50
2003-2004 0.59 0.45 1.64 1.69 1.58 1.56 7.51
2004-2005 0.59 0.46 1.64 1.73 1.58 1.56 7.56
2005-2006 0.59 0.46 1.63 1.75 1.58 1.56 7.57
2006-2007 0.59 0.45 1.50 1.60 1.45 1.39 6.98
2007-2008 0.59 0.45 1.28 1.27 1.12 1.19 5.90
2008-2009 0.60 0.43 1.31 1.26 1.12 1.20 5.92
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
109
EXHIBIT 1-8
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
SEPTEMBER 30, 2009
2008-2009 1999-2000
Percentage Percentage
Taxable of Total Taxable of Total
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Valuation Value Rank Valuation
Sikes Senter LP $ 52,964,416 1 1.20% $ - N/A 0.00%
Oncor Electric Delivery Co 39,368,627 2 0.89% 35,721,018 3 1.17%
Wal-Mart Stores Texas LP 25,904,572 3 0.58% 14,576,037 5 0.48%
Southwestern Bell 25,520,925 4 0.58% 40,869,418 2 1.34%
Wal-Mart Stores East Inc 18,854,411 5 0.43% - N/A 0.00%
Quail Creek Crossing Ltd 13,672,000 6 0.31% - N/A 0.00%
Lowe's Home Center 12,306,384 7 0.28% 13,160,329 6 0.43%
North American Pipe Corp 11,960,975 8 0.27% - N/A 0.00%
Clinics of North Texas LLP 11,352,391 9 0.26% 11,143,134 10 0.36%
Wal-Mart Real Estate Business Trust 11,429,636 10 0.26% - N/A 0.00%
JMB Group Trust III - N/A 0.00% 42,081,693 1 1.38%
Vista Cablevision - N/A 0.00% 16,066,740 4 0.53%
Sam's Club - N/A 0.00% 11,662,057 7 0.38%
Deauville Partnership - N/A 0.00% 11,542,311 8 0.38%
Panhandle Manufacturing - N/A 0.00% 11,507,276 9 0.38%
Totals $ 223,334,337 5.04% $ 208,330,013 6.83%
110
TEXAS4 1
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EXHIBIT 1-9
CITY OF WICHITA FALLS, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS-
LAST TEN FISCAL YEARS (UNAUDITED)
Collected within the
Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date
Fiscal for the Percentage in Subsequent Percentage
Year Fiscal Year Amount of Levy Years Amount of Levy
1999-2000 $ 16,115,557 $ 15,690,461 97.36% $ 368,413 $ 16,058,874 99.65%
2000-2001 16,791,261 16,365,706 97.47% 357,839 16,723,545 99.60%
2001-2002 17,635,425 17,210,516 97.59% 362,469 17,572,985 99.65%
2002-2003 19,439,511 18,962,880 97.55% 397,927 19,360,807 99.60%
2003-2004 20,039,039 19,646,529 98.04% 296,605 19,943,134 99.52%
2004-2005 20,919,473 20,494,272 97.97% 275,889 20,770,161 99.29%
2005-2006 22,034,951 21,612,888 98.08% 250,170 21,863,058 99.22%
2006-2007 23,421,270 23,043,185 98.39% 199,925 23,243,110 99.24%
2007-2008 24,833,219 24,408,683 98.29% 151,713 24,560,396 98.90%
2008-2009 26,375,113 25,905,854 98.22% - 25,905,854 98.22%
111
CITY OF WICHITA FALLS, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE-
LAST TEN FISCAL YEARS (UNAUDITED)
Governmental Activities
General Combination Utility
Fiscal Obligation Tax and Note System
Year Bonds Revenue Bonds Payable Revenue Bonds
1999-2000 $ 13,705,000 $ - $ - $ 58,695,000
2000-2001 19,215,000 - - 176,649,193
2001-2002 17,410,000 - - 172,349,440
2002-2003 15,290,000 - 54,561 168,368,339
2003-2004 13,060,000 6,810,000 234,186 144,747,898
2004-2005 10,725,000 6,095,000 178,149 126,538,189
2005-2006 8,270,000 5,360,000 120,443 124,824,242
2006-2007 7,390,000 25,396,016 61,093 123,869,328
2007-2008 6,480,000 23,867,228 - 121,887,613
2008-2009 5,535,000 33,524,726 - 119,841,741
112
EXHIBIT 1-10
Business-type Activities
Combination Capital Total Percentage
Tax and Note Lease Primary of Personal Per
Revenue Bonds Payable Payable Government Income Capita
$ - $ 880,018 $ - $ 73,280,018 1.95% $ 683.72
- 856,671 - 196,720,864 5.25% 1,887.97
- 832,565 - 190,592,005 4.95% 1,823.08
- 807,674 - 184,520,574 4.70% 1,762.17
19,900,889 781,974 - 185,534,947 4.56% 1,769.98
33,975,588 755,438 - 178,267,364 4.16% 1,667.98
30,961,933 728,039 - 170,264,657 3.81% 1,581.87
27,864,844 699,748 - 185,281,029 4.01% 1,721.38
24,479,232 670,537 - 177,384,610 3.71% 1,644.78
21,004,768 670,537 722,464 181,299,236 7.34% 1,711.42
EXHIBIT I-11
CITY OF WICHITA FALLS, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING -
LAST TEN FISCAL YEARS (UNAUDITED)
Governmental Activities Percentage of
General Combination Actual Taxable
Fiscal Obligation Tax and Value of Per
Year Bonds Revenue Bonds Total Property Capita
1999-2000 $ 13,705,000 $ - $ 13,705,000 0.45% $ 127.87
2000-2001 19,215,000 - 19,215,000 0.61% 184.41
2001-2002 17,410,000 - 17,410,000 0.52% 166.53
2002-2003 15,290,000 - 15,290,000 0.45% 146.02
2003-2004 13,060,000 6,810,000 19,870,000 0.56% 189.56
2004-2005 10,725,000 6,095,000 16,820,000 0.46% 157.38
2005-2006 8,270,000 5,360,000 13,630,000 0.37% 126.63
2006-2007 7,390,000 25,396,016 32,786,016 0.83% 304.60
2007-2008 6,480,000 23,867,228 30,347,228 0.72% 281.39
2008-2009 5,535,000 33,524,726 39,059,726 0.88% 368.71
113
EXHIBIT 1-12
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT(UNAUDITED)
SEPTEMBER 30, 2009
Percentage Amount
Gross Applicable Applicable
General Bonded to City of to City of
Debt(1) Wichita Falls(2) Wichita Falls
Direct:
City of Wichita Falls $ 39,059,726 100% $ 39,059,726
Overlapping:
Wichita County 2,630,000 100% 2,630,000
Burkburnett Independent School District 12,183,131 25% 3,045,783
City View Independent School District 9,032,286 90% 8,129,057
Iowa Park Consolidated Independent
School District 4,067,022 2% 81,340
Wichita Falls Independent School District 75,008,318 99% 74,258,235
Total overlapping 102,920,757 88,144,415
Total direct and overlapping bonded debt $ 141,980,483 $127,204,141
Sources:
(1) Listed taxing jurisdictions
(2) City of Wichita Falls Planning Department
114
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN -
LAST TEN FISCAL YEARS (UNAUDITED)
Total assessed property value per 2008 tax roll $ 4,430,855,934
Maximum tax rate* $ 2.25/$100
Current tax rate for 2007 tax year .59526/$100
Maximum tax rate in excess of 2007 tax rate 1.65474/$100
Total legal debt margin $ 73,319,145
1999-2000 2000-2001 2001-2002 2002-2003
Assessed value $ 3,053,895,661 $ 3,173,057,900 $ 3,338,764,157 $ 3,427,801,695
Maximum tax rate $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100
Current tax rate .55194/$100 .55194/$100 .55194/$100 .59246/$100
Maximum tax rate in excess of current rate 1.69806/$100 1.69806/$100 1.69806/$100 1.65754/$100
Total legal debt margin $ 51,856,981 $ 53,880,427 $ 56,694,219 $ 56,817,184
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$100 assessed valuation. The 2007 tax rate is$.59246
per$100 assessed valuation.
* Maximum tax levy established by City Charter
115
EXHIBIT 1-13
Fiscal Year
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
$ 3,530,992,589 $ 3,679,520,181 $ 3,719,230,165 $ 3,952,589,119 $ 4,191,543,723 $ 4,430,855,934
$ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100
.59246/$100 .59246/$100 .59246/$100 .59246/$100 .59246/$100 .59246/$100
1.65754/$100 1.65754/$100 1.65754/$100 1.65754/$100 1.65754/$100 1.65754/$100
$ 58,527,615 $ 60,989,519 $ 61,647,728 $ 65,515,746 $ 69,476,514 $ 73,319,145
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
1999-2000 $ 21,974,510 $ 13,688,360 $ 8,286,150
2000-2001 26,832,875 14,507,635 12,325,240
2001-2002 29,768,543 13,569,831 16,198,712
2002-2003 30,052,619 14,105,694 15,946,925
2003-2004 29,021,062 14,100,412 14,920,650
2004-2005 29,680,713 15,693,788 13,986,925
2005-2006 32,976,347 16,986,210 15,990,137
2006-2007 29,598,709 17,273,862 12,324,847
2007-2008 33,514,257 17,896,263 15,617,994
2008-2009 33,662,220 19,546,745 14,115,475
Notes:
(1) Includes operating revenues exclusive of water sales to West Texas Utilities and
capital contributions from developers of the Water and Sewer Fund (see Exhibit H-3).
(2) Includes operating expenses of the Water and Sewer Fund exclusive of depreciation
and amortization (see Exhibit H-3).
(3) Excludes bond premium amortization.
116
EXHIBIT 1-14
Debt Service Requirement
Principal (3) Interest Total Coverage
$2,345,000 $ 2,776,148 $ 5,121,148 1.62
2,555,000 2,567,085 5,122,085 2.41
4,220,000 8,087,504 12,307,504 1.32
3,895,000 8,412,955 12,307,955 1.30
4,070,000 8,403,349 12,473,349 1.20
4,385,000 8,078,748 12,463,748 1.12
4,505,000 7,600,831 12,105,831 1.32
4,985,000 6,608,627 11,593,627 1.06
5,165,000 6,424,544 11,589,544 1.35
5,410,000 6,185,216 11,595,216 1.22
EXHIBIT 1-15
CITY OF WICHITA FALLS, TEXAS
DEMOGRAPHIC STATISTICS-
LAST TEN FISCAL YEARS(UNAUDITED)
Per
Capita
Fiscal Estimated Personal Personal Median Education School Unemployment
Year Population(1) Income Income(2) Age Level(3) Enrollment(3) Rate(4)
1999-2000 107,178 $ 3,754,338,162 $ 35,029 35.4 13.1 14,084 4.4%
2000-2001 104,197 3,747,004,498 35,961 35.4 13.1 13,896 3.9%
2001-2002 104,544 3,849,710,474 36,824 35.4 13.1 14,059 6.3%
2002-2003 104,712 3,929,158,919 37,523 35.4 13.1 13,765 5.5%
2003-2004 104,823 4,067,057,042 38,799 35.4 13.1 13,857 3.6%
2004-2005 106,876 4,287,700,173 40,118 35.4 13.1 13,755 4.8%
2005-2006 107,635 4,464,967,184 41,482 35.4 13.1 13,743 4.2%
2006-2007 107,635 4,616,776,069 42,893 34.9 13.1 14,707 4.1%
2007-2008 107,847 4,783,148,919 44,351 34.9 13.3 14,533 5.5%
2008-2009 105,935 2,470,050,408 23,317 33.2 13.5 15,473 8.2%
Sources:
(1) City of Wichita Falls Planning Department for all years,except 2000-01 from U.S.Bureau of Census
(2) C.A.C.I.Marketing Services
(3) Wichita Falls I.S.D.-Educational level is grade equivalent of graduating senior
(4) Texas Workforce Commission
117
EXHIBIT 1-16
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND TEN YEARS AGO (UNAUDITED)
SEPTEMBER 30, 2009
2008-2009 1998-1999
Percentage Percentage
of Total of Total
City City
Employer Employees Rank Employment Employees Rank Employment
Sheppard Air Force Base 12 2 1 pp 0 1 17.060/0 13,088 1 N/A
Wichita Falls ISD 2,007 2 2.81% 1,700 3 N/A
North Texas State Hospital 1,947 3 2.72% 1,055 6 N/A
United Regional Health Care System 1,800 4 2.52% 2,100 2 N/A
City of Wichita Falls 1,350 5 1.89% 1,394 4 N/A
Midwestern State University 1,223 6 1.71% - N/A -
James B. Allred Prison Unit 975 7 1.36% 837 8 N/A
Howmet Corporation 860 8 1.20% 1,078 5 N/A
Cryovac Division -Sealed Air Corp. 781 9 1.09% 738 9 N/A
AT&T Wireless 669 10 0.94% - N/A -
Stanley Works, Mechanics Division - N/A - 550 10 N/A
Totals 23,813 33.30% 22,540 0.00%
Sources:
1998-1999 data is from Texas Workforce Commission. 2008-2009 data is from Wichita Falls BC!
Note:
The City was unable to locate data for the principal employers for 1999-2000. Therefore, 1998-1999 data is included.
118
CITY OF WICHITA FALLS, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
1999-2000 2000-2001 2001-2002 2002-2003
Administrative services 85.3 84.3 87.5 91.6
Police 265.5 264.5 268.5 278.5
Fire 155.0 156.0 156.0 156.0
Parks and recreation 70.9 71.1 75.0 74.7
Accounting/finance 19.5 21.5 22.6 22.6
Community development 35.8 35.9 36.4 39.4
Public works 80.0 79.0 79.3 79.6
Health 84.5 82.8 81.8 80.0
Traffic and transportation 50.0 51.1 51.4 51.4
Multi-Purpose Events Center - - - -
Water and sewer 160.6 162.6 166.9 166.9
Sanitation 88.9 82.9 81.0 81.0
Golf 18.6 20.4 20.3 20.3
Municipal Airport 1.0 1.0 1.0 1.0
Kickapoo Airport - 5.3 6.5 6.5
Transit 18.6 19.6 18.0 17.0
Stormwater Drainage - - - -
119
EXHIBIT 1-17
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
92.3 95.5 99.9 103.0 105.1 104.6
285.5 286.5 286.5 294.0 293.0 294.0
156.0 156.0 156.0 162.0 164.0 164.0
75.8 75.8 75.8 75.8 82.9 82.9
22.4 22.4 22.4 24.5 25.5 26.0
38.7 38.7 38.7 40.7 40.5 41.0
80.0 80.2 80.2 80.2 80.2 80.8
84.1 76.9 77.1 74.9 72.5 69.0
51.3 51.5 51.5 52.6 52.6 50.6
- - - 22.4 22.8 23.0
169.2 172.0 177.5 179.5 179.5 179.9
81.0 81.0 81.0 81.0 82.0 82.5
19.8 19.7 19.2 19.4 - -
1.0 1.0 1.0 1.6 1.6 1.6
4.8 5.0 5.0 4.4 4.4 4.4
19.3 19.3 19.3 19.2 19.6 22.1
0.3 1.3 1.3 1.3 1.3 1.3
CITY OF WICHITA FALLS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
1999-2000 2000-2001 2001-2002 2002-2003
General government
Building permits issued 8,769 10,541 9,177 10,270
Building inspections conducted - - 10,076 12,276
Police
Physical arrests 5,851 5,406 7,992 7,927
Parking violations 1,049 1,009 1,024 558
Traffic violations 20,805 17,553 18,978 19,946
Fire
Emergency responses 6,912 7,484 7,542 7,040
Fires extinguished 832 864 663 775
Inspections 850 850 850 850
Refuse collection
Refuse collected (tons) 71,971 75,229 73,435 74,426
Recyclables collected - - - -
Library
Volumes in collection 129,890 137,502 150,686 157,641
Total volumes borrowed - - - 292,359
Water
New connections - 245 292 327
Water main breaks 869 996 795 737
Average daily consumption 24,591 24,280 21,700 21,900
(thousands of gallons)
Wastewater
Average daily sewage treatment 11,348 13,224 12,560 12,348
(thousands of gallons)
Transit
Total route miles 426,081 422,673 424,115 407,121
Passengers 200,237 223,502 196,217 245,908
Notes:
Data was not available for all items for all years. The City will provide more data as it becomes available.
120
EXHIBIT 1-18
Fiscal Year
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
10,159 8,904 7,553 7,813 7,420 6,769
12,600 13,092 12,591 12,048 11,425 9,565
7,847 8,284 8,571 7,279 6,752 7,186
1,284 1,615 327 383 197 -
23,385 21,075 24,126 17,904 16,236 23,253
7,535 7,677 8,234 8,634 8,684 8,687
668 757 792 554 1,340 718
850 850 850 900 2,647 3,250
82,973 79,555 78,165 182,855 168,681 161,243
1,926 2,328 2,018 19,034 21,624 22,010
210,976 225,941 172,391 179,728 184,231 185,009
304,644 295,088 293,884 302,565 352,408 368,685
335 312 325 310 212 146
691 573 881 741 898 872
20,400 22,100 23,680 19,936 22,511 19,200
11,026 12,404 11,097 13,930 11,410 7,670
-
450,938 435,446 476,758 488,842 530,771
-
247,303 229,601 294,670 324,666 327,463
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
1999-2000 2000-2001 2001-2002 2002-2003
Police
Stations 1 1 1 1
Patrol units - - - -
Fire stations 9 8 8 8
Refuse collection
Collection trucks - - - -
Other public works
Streets(miles) 565 542 542 542
Streetlights 7,166 7,377 7,457 7,600
Traffic signals - - - 109
Parks and recreation
Acreage 1,100 1,100 1,200 1,200
Playgrounds 38 39 41 43
Golf courses 1 1 1 1
Water
Water mains(miles) 712 712 635 720
Fire hydrants - - - -
Storage capacity(thousands of gallons) - - - -
Wastewater
Sanitary sewers(miles) 506 506 516 506
Storm sewers(miles) 41 41 41 41
Treatment capacity(thousands of gallons) - - - -
Transit
Buses 12 12 12 12
Notes:
Data was not available for all items for all years. The City will provide more data as it becomes available.
121
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EXHIBIT J-1
CITY OF WICHITA FALLS, TEXAS
CASH AND INVESTMENTS
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September 30, 2008
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122
EXHIBIT j-2
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150 i - i
2005 2006 2007 2008 2009
Se
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(UNAUDITED)
123
EXHIBIT J-3
CITY OF WICHITA FALLS , TEXAS
GENERAL OBLIGATION BONDS PAYABLE
25 -��
20
O
15 —
Ccs 10
5
NUNO
0 � 'C•O:S.. 4•. 4 44
111
2005
2006 ya,
2007
September 30, 2008
2009
(UNAUDITED)
124
EXHIBIT J-4
CITY OF W ICH ITA FALLS , TEXAS
REVENUE BONDS PAYABLE
200 -/
175 -•/
150 -/
cn
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2006
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2007
2008
September 30, 2009
(UNAUDITED)
125
EXHIBIT J-5
CITY OF W ICHITA FALLS , TEXAS
GENERAL FUND EQUITY
zo --------
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2005
/ /
2006 September 30, 2008 � 2009 /
EXHIBIT J-6
CITY OF W ICH ITA FALLS , TEXAS
COMPARISON OF TAX LEVY AND COLLECTIONS
30 -------
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2000
2001 " -
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2005 I ,�/
2006 2007 I Tax Collections
Years Ended September 30, 2008 2009
❑Tax Collections E Tax Levy
(UNAUDITED)
127
EXHIBIT J-7
CITY OF WICHITA FALLS, TEXAS
REVENUES BY SOURCE - FYE 9/30/09
Fines and forfeitures
2%
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128
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EXHIBIT J-9
CITY OF WICHITA FALLS, TEXAS
GENERAL GOVERNMENTAL REVENUES (GENERAL FUND ONLY)
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2009
(UNAUDITED)
130
EXHIBIT J-10
CITY OF WICHITA FALLS, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES (GENERAL FUND ONLY)
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(UNAUDITED)
131