2006 Comprehensive Annual Financial Report Comprehensive
Annual
Financial Report
City of
Wichita Falls,
Texas
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For Year Ended
September 30 2006
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2006
ISSUED BY:
DEPARTMENT OF FINANCE
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CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2006
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 25-56
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule-General Fund B-1 57
Notes to the Required Supplementary Information 58
Texas Municipal Retirement System -Analysis of Funding
Progress- Last Ten Plan Years B-2 59
Wichita Falls Firemen's Relief and Retirement Fund -Analysis
of Funding Progress B-3 60
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2006
TABLE OF CONTENTS (CONT'D.1
Exhibit Page
COMBINING FINANCIAL STATEMENTS:
Nonmajor Governmental Funds:
Combining Balance Sheet C-1 61
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances C-2 62
Nonmajor Enterprise Funds:
Combining Statement of Net Assets D-1 63
Combining Statement of Revenues, Expenses and
Changes in Fund Net Assets D-2 64
Combining Statement of Cash Flows D-3 65-66
Internal Service Funds:
Combining Statement of Net Assets E-1 67
Combining Statement of Revenues, Expenses
and Changes in Fund Net Assets E-2 68
Combining Statement of Cash Flows E-3 69
Agency Fund:
Statement of Changes in Assets and Liabilities F-1 70
Component Units:
Combining Statement of Net Assets G-1 71
Combining Statement of Activities G-2 72
SUPPORTING SCHEDULES:
Combined Schedule of Bonded Debt and Interest Maturities H-1 73
Combined Schedule of Bonds Payable H-2 74-77
Debt Service Coverage—Revenue Bonds H-3 78
Capital Assets Used in the Operation of Governmental
Funds—Schedule By Function and Activity H-4 79
Capital Assets Used in the Operation of Governmental
Funds—Schedule of Changes By Function and Activity H-5 80
Golf Fund—Capital Assets and Accumulated Depreciation H-6 81
Municipal Airport Fund—Capital Assets and Accumulated Depreciation H-7 82
Kickapoo Airport Fund—Capital Assets and Accumulated Depreciation H-8 83
Transit Fund—Capital Assets and Accumulated Depreciation H-9 84
Stormwater Drainage Fund-Capital Assets and Accumulated Depreciation H-10 85
Sanitation Fund—Capital Assets and Accumulated Depreciation H-11 86
Water and Sewer Fund—Capital Assets and Accumulated Depreciation H-12 87
Fleet Maintenance Fund—Capital Assets and Accumulated Depreciation H-13 88
Duplicating Services Fund—Capital Assets and Accumulated Depreciation H-14 89
Employee Benefit Trust Fund—Capital Assets and Accumulated Depreciation H-15 90
Wichita Falls Economic Development Corporation—Capital Assets and
Accumulated Depreciation H-16 91
CITY OF WICHITA FALLS, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2006
TABLE OF CONTENTS (CONT'D.)
Exhibit Page
STATISTICAL SECTION (UNAUDITED)
Net Assets By Component— Last Four Fiscal Years I-1 92
Changes in Net Assets— Last Four Fiscal Years 1-2 93-94
Fund Balances, Governmental Funds— Last Ten Fiscal Years 1-3 95
Changes in Fund Balances, Governmental Funds— Last Ten Fiscal Years 1-4 96
Tax Revenues By Source, Governmental Funds— Last Ten Fiscal Years 1-5 97
Assessed and Estimated Actual Value of Taxable Property— Last Ten Fiscal Years 1-6 98
Direct and Overlapping Property Tax Rates— Last Ten Fiscal Years 1-7 99
Principal Property Taxpayers—Current Year and Nine Years Ago 1-8 100
Property Tax Levies and Collections— Last Ten Fiscal Years 1-9 101
Ratios of Outstanding Debt by Type— Last Ten Fiscal Years 1-10 102
Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years I-11 103
Direct and Overlapping Governmental Activities Debt 1-12 104
Computation of Legal Debt Margin — Last Ten Fiscal Years 1-13 105
Pledged Revenue Coverage—Water and Sewer Revenue Bonds—
Last Ten Fiscal Years 1-14 106
Demographic Statistics—Last Ten Fiscal Years 1-15 107
Principal Employers—Current Year and Seven Years Ago 1-16 108
Full-Time Equivalent City Government Employees by Function/Program —
Last Eight Fiscal Years 1-17 109
Operating Indicators by Function/Program— Last Ten Fiscal Years 1-18 110
Capital Asset Statistics by Function/Program — Last Ten Fiscal Years 1-19 111
Graphics:
Cash and Investments J-1 112
Total Bonds Payable J-2 113
General Obligation Bonds Payable J-3 114
Revenue Bonds Payable J-4 115
General Fund Equity J-5 116
Comparison of Tax Levy and Collections J-6 117
Revenues by Source— FYE 9/30/06 J-7 118
Expenditures by Function—FYE 9/30/06 J-8 119
General Governmental Revenues (General Fund Only) J-9 120
General Governmental Expenditures (General Fund Only) J-10 121
Wichita
Introductory Section
Wichita
March 7,2007
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, 2006. 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, 2006, 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
fmancial 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 fmancial 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 fmancial 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.
The CAFR of the City of Wichita Falls, Texas, is reported in three sections; introductory, fmancial
and statistical. The introductory section, which is unaudited, includes this transmittal letter, the
GFOA Certificate of Achievement for Excellence in Financial Reporting, the government's
organizational chart and a list of principal City officials. The fmancial section contains the
independent auditors' report, MD&A, financial statements and related notes, required supplementary
information, and combining fund financial statements and schedules. The statistical section includes
selected financial and demographic information,generally presented on a multi-year basis.
1300 7th Street P.O.Box 1431 Wichita Falls,Texas 76307
GENERAL INFORMATION-CITY OF WICHIT A 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 City manufacture fiberglass
reinforcements, glass, automotive parts, laundry equipment, and pipe. North Texas State Hospital-
Wichita Falls Branch, Midwestern State University, James V. Allred Prison and Sheppard Air Force
Base are also large employers located within the City. The city has a Multi-Purpose Events Center,
which includes a coliseum,exhibit hall,and an agricultural arena/show barn. The 2006 population for
Wichita Falls, as estimated by the City's Community Planning and Development Department, is
107,635, an increase of 3.30% over the 2000 Census estimates, and an increase of 11.54% 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 bythe citizens at-large. The City
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Council appoints the City Manager, City Attorney, Municipal Court Judge and CityClerk. All other
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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 185
manufacturing firms representing approximately 14% of total employment within the city and
generating in excess of$300 million in annual payroll. 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, glass, and fiberglass 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.
Four area manufacturing facilities are foreign-owned, representing France, Sweden, and Switzerland.
The community has benefited in recent years through several major industrial expansions that have
contributed in excess of$180 million in new manufacturing investments.
In 2006, the City experienced moderate industrial development activity. The City continued to
develop a new industrial business park in the southeastern portion of the community, which is
designed to attract major industries to Wichita Falls. Over $3.8 million of 4A Economic
Development Sales Tax Funds have been committed to this project for land acquisition, development
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of streets, water and sewer lines, and landscaping. The Park is nearing completion and is ready to be
marketed to potential industries. The City and Board of Commerce and Industry were also
instrumentally involved in encouraging major operational expansions of PPG Industries, ATCO
Structures, Wichita Clutch, Wichita Power Transmission, Texas Transland, Excalibur Paint, and
Sharp Iron, Inc. A total of $4.5 million in 4A Economic Development Sales Tax Funds were
committed to these expansions for a total capital investment potential of approximately $45 million
and the creation of over 275 new jobs in the community.
In addition to providing cash incentives for industrial development, 4A Economic Development Sales
Tax Funds are being used to improve economic development marketing efforts. The marketing
initiative includes 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, Teleservice, and General Manufacturing. Sales tax funds
have also been used to assist with activities of a newly formed regional organization designed 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 Military Affairs
Committee was formed to increase the value of SAFB, strengthen community development and build
a stronger economy.
Residential and commercial construction activity continued to remain strong. The value of new
residential construction permits in the amount of$52,156,257 was virtually identical to the amount
issued in the 2004-05 fiscal year. In addition the value of commercial construction and expansion
permits totaled$70,227,905,which is an increase of 23.41% from the prior fiscal year. The following
expansions, new construction or consolidations in excess of $1,000,000 in value were undertaken
during the 2005-06 fiscal year:
• Region IX Education Service Center. A total of 19,250 sq. ft. addition with an estimated
value of$2,488,729.
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• Community Health Care Center. A total of 18,079 sq. ft. addition with an estimated value of
$1,750,000.
• Grace Church Youth Center. A total of 12,329 sq. ft.new construction with an estimated
value of$1,000,000.
• Kell West Health Clinic. A total of 12,056 sq. ft.new construction with an estimated value
of $1,500,000.
• City of Wichita Falls Water Administration Building. A total of 11,000 sq. ft.new
construction with an estimated value of$3,000,000.
• City of Wichita Falls Water Maintenance Building. A total of 6,500 sq. ft.new construction
with an estimated value of$1,499,000.
• Furniture Row. A total of 53,940 sq. ft.new construction with an estimated value of
$2,600,000.
• Ashley Furniture. A total of 40,000 sq. ft.new construction with an estimated value of
$2,648,363.
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• Academy Sports. A total of 85,008 sq. ft. new construction with an estimated value of
$3,100,000.
• Strip Mall. A total of 21,692 sq. ft.new construction with an estimated value of$1,300,000.
• Colonial Baptist Church. A total of 24,250 sq. ft.new construction with an estimated value of
$2,700,000.
• Harley Davidson. A total of 32,400 sq. ft.new construction with an estimated value of
$2,500,000.
• United Regional Health Care System. A total of 4,300 sq. ft.new construction with an
estimated value of$1,000,000.
• Convalescent Facility. A total of 58,167 sq. ft.new construction with an estimated value of
$5,250,000.
• Candlewood Suites. A total of 43,386 sq. ft.new construction with an estimated value of
$2,193,616.
• Motel. A total of 39,328 sq. ft.new construction with an estimated value of$4,000,000.
• Apartment Building. A total of 26,965 sq. ft.new construction with an estimated value of
$1,080,800.
Another indicator of performance of the local economy is the retail sales tax. The local sales tax rate
in the City is two percent. Retail sales in Wichita Falls grew by 7.98% when compared to the prior
fiscal year,resulting in an increase in revenue of$1,426,702 from the prior fiscal year.
MAJOR INITIATIVES
For The Year. The City Council has identified programs to meet citizens' requests for services and
to safeguard the environment. In August of 2005, the City Council approved the creation of the Tax
Increment Financing District Reinvestment Zone Number 2. This new TIF Zone is located in the
Lawrence Road area of the City. Wichita County also agreed to participate in this TIF District. This
fmancing mechanism is intended to offer incentives for both retail and commercial developments,
thereby increasing the City's property tax base and retail sales. Significant retail construction is
underway and the City is in the early phases of expending nearly$6 million on roadway and drainage
improvements in this TIF Zone. Much of the funding for the public improvements is expected to be
fmanced initially with 4B Sales Tax Corporation Funds and Storm Water Drainage Improvement
Funds. As private development continues in this district, it is anticipated that the 4B Sales Tax
Corporation will be reimbursed to the extent that TIF funds are generated and are available.
Work continues on the City's major water system improvement projects. In September 2001,the City
issued $118,770,000 of Water and Sewer System Revenue Bonds for improvements to the system
designed primarily to meet regulatory treatment requirements of the EPA and TCEQ and to expand
water supply and treatment capacities. Specific projects to be completed include(1)Kemp Reservoir
Pump Station and Pipeline; (2) 10 Million Gallon Per Day Reverse Osmosis Facility; (3) Cypress
Water Plant High Service Pump Station and Storage; (4) 10 Million Gallon Per Day Conventional
Treatment Expansion at the Cypress Water Plant; (5) Secondary Reservoir and Pump Station
Expansion; (6) Jasper Water Treatment Plant Modifications and Improvements; (7) River Road
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Advanced Water Treatment Facility; (8) Distribution and Elevated Storage Improvements; and (9)
New Water Plant Administration and Maintenance Facilities. Needless to say, these improvements
will dramatically improve the City's ability to supply and treat water for the citizens of this
community.
Significant improvement projects continue at the Kickapoo Downtown Airpark. Major improvements
completed in early phases of the Airport Master Plan include the reconstruction of the runway,
taxiway and connectors; extension and widening of the runway; improvements to the runway
extended safety area; runway lighting enhancements; and airfield signage improvements.
Approximately$6 million of improvements have been completed at the airport over the last few years,
of which 90%to 95%was financed with Federal Aviation Entitlement Funds. The remaining amount
has been financed with reserves in the City's two airport funds. Current improvements underway
with the 2006 FAA Aviation Entitlement Funds include hangar area pavement reconstruction,
drainage improvements,parking lot rehabilitation, security fencing and roadway improvements.
A project to expand the Wichita Falls-Wichita County Public Health District has been completed.
The Health Department facility was overcrowded prior to this expansion that consisted of 8,000
square feet of additional space. The new addition is being used to offer clinical services primarily to
low income patrons. The project cost was approximately $1.6 million and was funded with
Community Development Block Grant Funds.
The City spent approximately $100,000 during 2006 for consulting assistance to prepare a
Compensation and Classification Study for the City's employee position classifications. The study
was designed to evaluate both the internal and external equity of our existing pay plan and to make
recommendations for adjusting the pay ranges of the City's position classifications to 100% of the
market averages. These recommendations were incorporated into the 2006-07 budget and will
continue to be implemented in the administration of the City's pay plan.
For The Future.
During the 2006-07 budget process, a Five Year Capital Improvement Program was adopted that
identified priorities for the City's major capital improvement projects. This CIP was the first official
capital improvement planning document adopted by the City. One major element of the CIP consisted
of the need to issue over $21.375 million in 20 Year Certificates of Obligation for several capital
improvement projects. These projects include a $4.3 million renovation to the Weeks Park
Municipal Golf Course, $12.375 million for street and drainage improvements, $1.8 million for
renovations to the Police Firing Range, $1.4 million to construct a new fire station that will replace an
older fire station and improve response times, $1.5 million to construct four new softball fields and a
skateboarding park at the City's Sports Complex. The Certificates of Obligations were issued in
November 2006. The average annual debt service for this indebtedness is approximately$1.6 million
and is being funded primarily with 4B Sales Tax Funds, Storm Water Drainage Improvement Funds,
and General Funds that were made available due to the retirement of some other outstanding
obligations.
The City also approved the refunding of approximately $103 million of outstanding 2001 Series
Water and Sewer System Revenue Bonds to achieve lower interest rates on the remaining years of the
bonds. This refmancing,which was approved in February 2007,resulted in approximately$8 million
in actual debt service savings and$4 million in present value debt service savings.
Since the Multi-Purpose Events Center has been in operation, the City and County have contracted
with a private non-profit corporation for the day-to-day operations and maintenance of the facilities.
In September 2006, that operating arrangement was terminated and the City officially assumed
responsibility for the operations. As a result, the City is now accounting for these operations as a
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separate enterprise fund. The City continues to utilize a significant portion of its Hotel/Motel
Occupancy receipts to fund the operating deficit of the facilities.
The City is using 4B Sales Tax funds for consulting services to develop an RFP, evaluate proposals,
and assist with the implementation of mobile data terminals for the police and fire departments. This
project will include a city-wide wireless network, mobile data system application software that
interfaces with the Computer Aided Dispatch and Records Management Systems that have been
recently upgraded, and computer workstations in the public safety vehicles. This technological
advancement is estimated to cost $4 million and will significantly improve efficiencies in the City's
public safety operations.
The City has begun to respond to GASB 43 and 45 statements which require the City to report its
unfunded liability for post employment benefits other than retirement benefits. Principally, this will
involve reporting the future unfunded liability for retiree health care benefits that are offered by the
City. The City has hired an actuarial firm to determine the unfunded liability and to develop options
for addressing the liability over time.
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 30,2006, and
related appropriations are carried forward to the new fiscal year through a supplemental budgetary
allocation.
TREASURY MANAGEMENT
Cash which was temporarily idle during the year, including debt retirement funds, operating funds,
and bond proceeds,was invested in public fund investment pools and U. S. government securities.
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RISK MANAGEMENT
During 2005-06, the City of Wichita Falls continued a risk management program for worker's
compensation. Various risk control techniques,including employee accident prevention training,have
been utilized during the year to minimize accident-related losses.
OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the books of account, financial records, and
transactions of all administrative departments of the City by Certified Public Accountants. The
accounting firm of Edgin, Parkman, Fleming & Fleming, PC was selected by the Mayor and City
Council to satisfy this charter requirement. The auditors' report on the basic fmancial statements and
combining fund statements and schedules is included in the financial section of this report. In
addition to meeting the requirements set forth in the City Charter, the audit also was designed to meet
the requirements of the federal Single Audit Act Amendments of 1996 and related OMB Circular
A-133, and the State Single Audit Act. These reports are issued under separate cover.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Wichita Falls for its
CAFR for the fiscal year ended September 30, 2005. The Certificate of Achievement is a prestigious
national award recognizing conformance with the highest standards for preparation of a state and local
government fmancial report. In order to be awarded a Certificate of Achievement,a government must
publish an easily readable and efficiently organized comprehensive annual fmancial 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, department heads and employees
responsible for the fair presentation of the CAFR and for contributing to the sound fmancial 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 Wichita Falls' elected officials and City
Manager,who remain committed to fiscal integrity and financial leadership,is likewise appreciated.
Respectfully submitted,
1 ;it*.,(g7pizjify
Jim Dockery
Director of Finance
vii
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, 2005
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.
�CE OFpk,
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CITY OF WICHITA FALLS
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CITY OF WICHITA FALLS, TEXAS
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2006
Title Name
Mayor Lanham Lyne
Mayor Pro-Tem Ray Gonzalez
City Council Member Jim Ginnings
City Council Member Linda Ammons
City Council Member Rick Hatcher
City Council Member Dorothy Roberts-Burns
City Council Member Charles Elmore
City Manager Darron Leiker
City Attorney Bill Sullivan
Municipal Court Judge Larry Gillen
City Clerk Lydia Torres
Assistant City Manager Matt Benoit
Director of Aviation, Traffic and Transportation John Burrus
Director of Finance 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 Scott Taylor, P.E.
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Financial Section
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Ill a' EDGIN, PARKMAN, FLEMING & FLEMING, PC
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CERTIFIED PUBLIC ACCOUNTANTS
MICHAEL D. EDGIN,CPA
2405 KEMP BLVD.,SUITE B • P.O.Box 750 DAVID L. PARKMAN,CPA,CFE
IIWICHITA FALLS,TEXAS 76307-0750 A.PAUL FLEMING,CPA,CFE
J PH.(940)766-5550 • FAx(940)766-5778 J. MARK FLEMING,CPA
1
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, 2006, 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, 2006, 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 February 28, 2007 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 1
The Management's Discussion and Analysis, the schedules on the Texas Municipal Retirement
System and Wichita Falls Firemen's Relief and Retirement Fund, 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.
,,,„4 ;-41,..:4..„ , Pc
EDGIN, PARKMAN, FLEMING & FLEMING, PC
Wichita Falls, Texas
February 28, 2007
2
1111 . 1 EDGIN, PARKMAN, FLEMING & FLEMING, PC
:LriCERTIFIED PUBLIC ACCOUNTANTS
MICHAEL D.EDGIN,CPA
2405 KEMP BLVD.,SUITE B • P.O.Box 750 DAVID L. PARKMAN,CPA,CFE
WICHITA FALLS,TEXAS 76307-0750 A.PAUL FLEMING,CPA,CFE
J 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, 2006, 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, 2006, 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 February 28, 2007 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 and Wichita Falls Firemen's Relief and Retirement Fund, 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.
eaut.e, Pc
EDGIN, PARKMAN, FLEMING & FLEMING, PC
Wichita Falls, Texas
February 28, 2007
2
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Wichita*
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2006
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, 2006. 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, 2006, by
$303,481,154 (net assets). Of this amount, $32,651,159 (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 $18,466,875. This increase can be attributed primarily to
the following: significant reductions in the City's long term debt in both tax and revenue
supported bond indebtedness; additions to capital assets including the Health facility expansion,
Wichita Falls Business Park, and other infrastructure improvements principally donated by
developers; higher than anticipated interest earnings on the investment of idle funds; higher than
anticipated water and sewer service charges; and improved cash positions in the Storm Water
Drainage Fund, General Fund, and Employee Benefit Trust Fund.
At September 30, 2006, the City's governmental funds reported combined ending fund balances
of $26,680,591. Of this amount, $21,107,949, or 79.11%, 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
$11,503,795, or 20.39% of total General Fund expenditures.
The City's total debt decreased by $7,917,602 during the current fiscal year. The primary reason
for this reduction is because the City did not issue any additional debt during this fiscal year, but
continued to retire outstanding General Obligation Bonds, Water and Sewer System Revenue
Bonds, and Combination Tax and Revenue Bonds.
3
1300 7th Street P.O. Box 1431 Wichita Fatis,Texas 76307
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2006
(continued)
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Wichita Falls'
basic financial statements. The reporting focus is on the City as a whole and on individual major
funds. It is intended to present a comprehensive view of the City's financial activities. The basic
financial statements are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report
contains other supplementary information in addition to the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements, which can be found on pages 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. 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,
fleet maintenance services,and the municipal golf course.
4
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2006
(continued)
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 Wichita Falls/Wichita County
Multi-purpose Events Center.
Fund Financial Statements
The City of Wichita Falls,like other state and local governments,uses fund accounting to provide
more detailed information about the City's most significant funds, not the City as a whole. A
fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. Some funds are required to be established by
state law or bond covenants. However, the City Council establishes many other funds to help it
control and manage money for particular purposes or to show that it is meeting legal
responsibilities. All of the funds of the City can be divided into three categories: governmental
funds,proprietary funds and fiduciary funds.
Governmental Funds —These funds are used to account for the majority of the City's activities,
which are essentially the same functions reported as governmental funds in the government-wide
statements. However, unlike the government-wide financial statements, governmental fund
financial statements are reported using an accounting method identified as the modified accrual
basis of accounting, which measures cash and all other financial assets that can be readily
converted to cash. The governmental fund statements focus on near-term inflows and outflows of
expendable resources, as well as expendable resources available at the end of the fiscal year for
future spending. Such information may be useful in evaluating a government's near-term
financing requirements.
The focus of the governmental funds financial statements is narrower than that of the
government-wide financial statements. Therefore, it is useful to compare the information
presented for governmental funds with similar information presented for governmental funds 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 12 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
5
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30,2006
(continued)
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, municipal golf course, 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
financial statements.
Proprietary funds financial statements provide the same type of information as the business-type
activities shown in the government-wide fmancial statements, only in more detail and include
some of the internal service fund-type activities. The proprietary funds financial statements
provide separate information for the Water and Sewer Fund and the Sanitation Fund since they
are considered to be major funds of the City. The non-major proprietary funds are combined into
a single, aggregated presentation in the proprietary fund financial statements. Individual fund
data for each of the non-major proprietary funds are provided in the Combining Financial
Statement Section of this report.
Fiduciary Funds—Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City's own
programs. The accounting method used for fiduciary funds is much like that used for proprietary
funds. Agency funds are a component of fiduciary funds and are used to account for situations
where the City's role is purely custodial, such as receipt,temporary investment and remittance of
fiduciary funds to individuals, private organizations or other governments. The City maintains
one fiduciary fund. This fund is an agency fund used to account for property that has been
abandoned or unclaimed pending escheatment to the State of Texas.
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 fmancial statements. These
notes can be found on pages 25-56 of this report.
Government-Wide Financial Analysis
The City's combined net assets were $303,481,154 as of September 30, 2006, an increase of
$18,466,875, or 6.48% 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, $253,221,405, or 83.39%,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
6
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2006
(continued)
future spending. Although the City reports its capital assets net of related debt, the resources
needed to repay this debt must be provided from other sources since the capital assets themselves
cannot be used to liquidate these liabilities.
An additional portion of the City's net assets, $17,608,590, or 5.80%, represents resources that
are subject to external restrictions on how they may be used. The remaining balance of net assets,
$32,651,159 may be used to meet the government's ongoing obligations to citizens and creditors.
Net Assets
(in thousands)
Governmental Business-type
Activities Activities Total
2006 2005 2006 2005 2006 2005
Current and Other Assets $ 36,156 $ 34,323 $ 116,762 $ 131,581 $ 152,918 $ 165,904
Capital Assets 146,588 144,187 201,074 177,791 347,662 321,978
Total Assets 182,744 178,510 317,836 309,372 500,580 487,882
Long Term Liabilities 20,256 23,315 160,920 165,428 181,176 188,743
Other Liabilities 7,467 6,127 8,456 7,997 15,923 14,124
Total Liabilities 27,723 29,442 169,376 173,425 197,099 202,867
Net Assets:
Invested in Capital Assets,
Net of Related Debt 132,958 127,367 120,263 112,569 253,221 239,936
Restricted 1,374 1,201 16,235 15,679 17,609 16,880
Unrestricted 20,689 20,500 11,962 7,698 32,651 28,198
Total Net Assets $ 155.021 $ 149.068 $ 148.460 $ 135.946 $ 303.481 $ 285.014.
7
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2006
(continued)
CHANGES IN NET ASSETS
(in thousands)
Governmental Business-type
Activities Activities Total
2006 2005 2006 2005 2006 2005
Revenues:
Program Revenues:
Charges For Services $ 6,915 $ 6,444 $ 46,002 $ 41,886 $ 52,917 $ 48,330
Operating Grants and
Contributions 11,110 14,735 1,252 926 12,362 15,661
Capital Grants and Contributions 2,667 1,176 455 862 3,122 2,038
General Revenues:
Property Taxes 23,523 22,579 - - 23,523 22,579 I
Sales Taxes 19,272 17,846 - - 19,272 17,846
Other Taxes/Fees 7,487 6,823 - - 7,487 6,823
Investment Earnings 1,409 755 5,094 3,418 6,503 4,173 I
Miscellaneous 173 167 - (74) 173 93
Total Revenue 72,556 70,525 52,803 47,018 125,359 117,543
Expenses:
Administrative Services 10,648 9,175 - - 10,648 9,175 I
Police 17,734 17,108 - - 17,734 17,108
Fire 10,826 10,338 - - 10,826 10,338
Parks and Recreation 4,211 4,220 - - 4,211 4,220
Accounting/Finance 1,844 1,842 - - 1,844 1,842
Community Development 6,293 7,181 - - 6,293 7,181
Public Works 7,706 6,742 - - 7,706 6,742
Health 4,409 4,436 - - 4,409 4,436
Traffic and Transportation 2,527 2,182 - - 2,527 2,182
MPEC 2,166 2,015 - - 2,166 2,015
Interest and Fees on Long-term
Debt 722 843 - - 722 843
Golf - - 901 779 901 779
Municipal Airport - - 281 243 281 243
Kickapoo Airport - - 575 377 575 343
Transit - - 1,281 1,240 1,281 1,240
Sanitation - - 8,060 7,716 8,060 7,716
Water and Sewer - - 26,380 25,604 26,380 25,604
Stormwater Drainage - - 329 126 329 126
Total Expenses 69,086 66,082 37,807 36,085 106,893 102,167
Increase in Net Assets
Before Transfers 3,470 4,443 14,996 10,933 18,466 15,376
Transfers 2,483 474 (2,483) (474) - -
Increase in Net Assets 5,953 4,917 12,513 10,459 18,466 15,376
Net Assets-Beginning of Year 149,068 115,958 135,947 125,488 285,015 241,446
Prior Period Adjustment - 28,193 - - - 28,193
Net Assets-End of Year $155.021 $149.068 $148.460 $135.947 $303.481 $285.015
8
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30, 2006
(continued)
Financial Analysis of the Governmental Activities
Governmental Funds — The focus of the City of Wichita Falls' 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, 2006, the City's governmental funds reported combined fund balances of
$26,680,591. Approximately 79.11%, or $21,107,949 constitutes unreserved fund balance, which is
available for spending at the government's discretion. The remainder of the fund balance is reserved to
indicate that it is not available for spending because it has already been committed to pay for encumbrances
($3,240,845), inventory and prepaid items ($239,878), debt service ($1,312,424), and cemetery perpetual
care($779,495).
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 $11,503,795. 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 20.39% of total General Fund expenditures, while the total fund
balance represents 24.63% of total General Fund expenditures. The fund balance of the General Fund
increased by$848,859 during the current fiscal year. The primary reasons for this increase are as follows:
• Total Sales Tax Collections from retail sales exceeded original budget expectations significantly,
which provided revenue needed for an unanticipated large legal settlement.
• Interest earnings on the investment of the City's idle cash exceeded budgeted amounts by over
$376,000 due to rising interest rates.
• Franchise fees from the gas company exceeded budgetary expectations by approximately
$436,000 due to an increase in the company's gross receipts received from significantly higher gas
prices.
Financial Analysis of the Business-type Activities
Net assets for the City's Business-type Activities increased by$12,513,826, accounting for 67.76% of the
total growth in the City's net assets. Following are the key elements of this increase:
• A reduction of approximately $4,800,000 in long-term liabilities of the Water and Sewer Fund
primarily due to the revenue bond payments.
• An improved cash position in the Storm Water Drainage Fund due to lower than anticipated
expenditure activity.
• Significantly higher interest earnings on the investment of idle funds,particularly on unexpended
revenue bond proceeds issued for major water system capital improvements.
• Higher than anticipated water and sewer service charges resulting from high customer demands
for water.
General Fund Budgetary Highlights
The final amended expenditure budget for the General Fund, including transfers out, was increased by
$4,764,834 from the original adopted budget. Some of the primary reasons for this increase in
appropriations can be briefly summarized as follows:
9
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30, 2006
(continued)
• Approximately $2,183,000 of prior year encumbrances were carried forward to the 2005-06
amended budget, $1,700,000 of which was for the capital infrastructure improvements for the
street overlay program that were not completed at the close of the 2004-05 fiscal year.
• Approximately $220,000 was appropriated for additional costs associated with internal charges
from the Fleet Maintenance Fund to reimburse that fund for the high cost of fuel.
• An additional $845,000 in budgetary appropriations were needed to pay for a few legal
settlements.
• Over$630,000 was appropriated to purchase two fire engines.
• Over$633,000 was appropriated to various General Fund operating budgets to cover higher than
anticipated costs for electricity and gas services.
Actual revenues in the General Fund for the 2005-06 fiscal year were$55,989,083,which was $2,458,970
above fmal budgeted figures. However, over$1,053,000 of this amount is due to donations of streets and
drainage improvements from private developers that are recorded as revenues under the new reporting
model. In addition, the City received significantly more revenue than the amended budget from property
and sales tax collections,interest earnings,franchise fees from the gas company,and municipal court fines.
Actual expenditures in the General Fund for the 2005-06 fiscal year were$56,428,502 compared to a final
budget of$59,408,257. Much of this variance is due principally to a delay in a significant street overlay
program and telephone system replacement project until the ensuing fiscal 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, 2006, amounts to $347,661,671 (net of accumulated depreciation). This investment in
capital assets includes land,buildings,equipment,infrastructure and construction in progress.
Major capital asset events during this fiscal year included the following:
• Continued improvements on the Public Safety voice and data communication systems.
• Continued improvements to the water system,principally at Jasper and Cypress Water Treatment
Plants.
• Completion of the expansion of the Health Facility.
• Continued work on the Wichita Falls Business Park.
• Continued work on the Kickapoo Airport.
10
City of Wichita Falls, Texas
Management's Discussion and Analysis
September 30, 2006
(continued)
Capital Assets,net of Accumulated Depreciation
(in thousands)
Governmental Business-type
Activities Activities Total
2006 2005 2006 2005 2006 2005
Land $ 12,678 $ 12,678 $ 8,150 $7,838 $ 20,828 $ 20,516
Land Betterments 8,365 8,477 15,821 14,955 24,186 23,432
Buildings, Systems
and Improvements 47,994 47,242 102,888 92,539 150,882 139,781
Infrastructure 65,174 65,019 - - 65,174 65,019
Machinery and Equip 8,547 8,667 2,106 1,212 10,653 9,879
Furniture and Fixtures 23 33 16 20 39 53
Motor Vehicles - - 12,100 10,546 12,100 10,546
Construction in
Progress 3,807 2,071 59,993 49,681 63,800 51,752
Totals $ 146.588 $ 144.187 $201.074 $177.791 $ 347.662 $ 321.978
Additional information on the City's capital assets can be found in Note 7 on pages 39-42 of this report.
Long Term Debt-At the end of the current fiscal year, the City of Wichita Falls had a total bonded debt
and notes outstanding of$170,264,657. No additional bond indebtedness was incurred during the 2005-06
fiscal year.
Outstanding Debt at Year-End
(in thousands)
Governmental Business-type
Activities Activities Total
2006 2005 2006 2005 2006 2005
General Obligation Bonds $ 8,270 $ 10,725 $ - $ - $ 8,270 $ 10,725
Combination Tax and
Revenue Bonds 5,360 6,095 30,962 33,976 36,322 40,071
Util System Revenue
Bonds - - 124,824 126,538 124,824 126,538
Notes Payable 120 178 728 755 848 933
Total _$ 13.750 $ 16.998 $ 156.514 $ 161.269 $ 170.264 $ 178.267
11
City of Wichita Falls,Texas
Management's Discussion and Analysis
September 30, 2006
(continued)
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, 2006,
Standard&Poors had assigned a credit rating of AA for the City's General Obligation Bonds and a rating
of A+for its Water and Sewer System Revenue Bonds. It should be noted,however,that Standard&Poors
upgraded the City's credit rating for its Water and Sewer System Revenue Bonds to AA-in a recent review
that was conducted for the refunding of a significant portion of the City's Water and Sewer System
Revenue Bond indebtedness.
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, 2006, was
$.59246 per$100,which means that the City has a tax margin of$1.65754 per$100,and could raise up to
$61,647,728 additional tax revenue a year from the present assessed valuation of$3,719,230,165 before the
limit is reached. The current ratio of general bonded debt outstanding to the assessed value of all taxable
property is 0.37%.
Additional information about the City's long-term debt can be found in Note 12 on pages 47-50 of this
report.
Economic Factors and Next Year's Budgets and Rates
Overall, operating revenues in the General Fund are budgeted to increase by 7.77% from the 2005-06
adopted budget.
The largest revenue source of the City's General Fund is the property tax. Appraised property values for
the 2006 tax year, as certified by the Wichita County Appraisal District, increased 6.27% from the prior
year certified tax roll. The City maintained the property tax rate at$.59246 per $100 of assessed value,
which was the same as the 2005-06 fiscal year.
The second largest revenue source of the City's General Fund is the retail sales tax. The City experienced
an increase in sales tax collections of nearly 8.00% in 2005-06 compared to the prior fiscal year. In
addition, the average annual growth rate for the past several years has been approximately 4.00% and is
expected to continue at that rate in the 2006-07 fiscal year. Nevertheless, the City budgeted this revenue
source at a fairly conservative growth rate of 2.00% above the amount that was estimated would be
generated in 2005-06 when the budget was prepared in July 2006.
Retail Water and Sewer rates remained unchanged from the 2005-06 fiscal year because it is anticipated
that mandatory watering restrictions will not be required and significant rate increases were approved for
wholesale customers.
Sanitation Collection and Disposal Rates and Storm Water Drainage Fees remained unchanged also.
Requests for Information
This financial report is designed to provide a general overview of the City of Wichita Falls' finances for all
those with an interest in the government's finances. Questions concerning any of the information provided
in this report, or request for additional financial information, should be addressed to the City Finance
Department, 1300 Seventh Street,Wichita Falls,Texas 76301.
12
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EXHIBIT A-1
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2006
Primary Government
Governmental Business-type Component
Activities Activities Total Units
Assets
Cash and cash equivalents $ 22,601,654 $ 30,624,145 $ 53,225,799 $23,367,090
Investments 4,477,122 - 4,477,122 -
Receivables(net):
Taxes and assessments 1,041,819 - 1,041,819 27,966
Customer and trade - 4,740,187 4,740,187 -
Component unit 1,772,020 - 1,772,020 -
Government agencies 5,783,616 159,166 5,942,782 1,154,062
Other 2,051,731 230,422 2,282,153 97,526
Internal balances (1,931,031) 1,931,031 - -
Inventory 230,532 1,683,122 1,913,654 52,522
Prepaid items 125,110 33,833 158,943 96,377
Other assets 3,100 - 3,100 9,460
Deferred charges - 2,330,570 2,330,570 -
Restricted assets:
Cash and cash equivalents - 69,280,421 69,280,421 -
Investments - 5,695,488 5,695,488 -
Receivables:
Other - 54,414 54,414 -
Capital assets not being depreciated 16,485,023 68,142,736 84,627,759 -
Capital assets net of accumulated depreciation 130,102,991 132,930,921 263,033,912 2,468,254
Total assets 182,743,687 317,836,456 500,580,143 27,273,257
Liabilities
Accounts payable-trade 951,090 2,813,586 3,764,676 207,090
Accrued payroll 1,625,881 591,793 2,217,674 56,993
Payable to primary government - - - 1,772,020
Payable to government agencies 397,239 48,321 445,560 9,531
Estimated health claims payable 331,065 - 331,065 -
Other liabilities 4,113,492 2,515,514 6,629,006 153,084
Unearned revenue 48,064 - 48,064 -
Customer deposits - 2,487,315 2,487,315 -
Long-term liabilities:
Portion due or payable within one year 1,894,047 6,169,741 8,063,788 57,467
Portion due or payable after one year 18,361,954 154,749,887 173,111,841 -
Total liabilities 27,722,832 169,376,157 197,098,989 2,256,185
Net Assets
Invested in capital assets, net of related debt 132,958,014 120,263,391 253,221,405 2,468,254
Restricted for debt service 1,373,786 16,234,804 17,608,590 -
Unrestricted 20,689,055 11,962,104 32,651,159 22,548,818
Total net assets $ 155,020,855 $ 148,460,299 $303,481,154 $25,017,072
See accompanying notes to the basic financial statements.
13
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30,2006
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
Administrative services $ 10,648,044 $ 3,691,411 $ 589,083 $ -
Police 17,733,480 402,583 458,169 -
Fire 10,825,964 5,195 15,863 -
Parks and recreation 4,210,463 473,121 9,742 -
Accounting/finance 1,843,810 - - -
Community development 6,293,156 1,195,203 5,345,581 -
Public works 7,706,209 48,871 226,653 2,667,389
Health 4,409,374 807,002 2,515,280 -
Traffic and transportation 2,527,270 292,234 668,259 -
MPEC 2,166,331 - 240,723 -
Interest and fees on long-term debt 721,762 - 1,040,265 -
Total governmental activities 69,085,863 6,915,620 11,109,618 2,667,389
Business-type activities:
Golf 901,454 828,055 - -
Municipal Airport 281,117 448,384 - -
Kickapoo Airport 574,929 347,761 - -
Transit 1,280,540 214,771 1,251,770 -
Sanitation 8,059,991 9,517,673 - -
Water and sewer 26,380,183 33,436,585 - 455,217
Stormwater drainage 328,833 1,209,196 - -
Total business-type activities 37,807,047 46,002,425 1,251,770 455,217
Total primary government $ 106,892,910 $ 52,918,045 $ 12,361,388 $ 3,122,606
Component units:
Community development $ 3,120,800 $ - $ - $ -
Multi-Purpose Events Center 3,478,545 2,121,798 1,355,846 -
Total component units $ 6,599,345 $ 2,121,798 $ 1,355,846 $ -
General revenues:
Taxes:
Property tax
Sales tax
Franchise fees
Hotel occupancy tax
Beverage tax
Bingo tax
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets-beginning
Net assets-ending
See accompanying notes to the basic financial statements.
14
EXHIBIT A-2
Net(Expense)Revenue and
Changes in Net Assets
Primary Government
Governmental Business-type Component
Activities Activities Total Units
$ (6,367,550) $ - $ (6,367,550) $ -
(16,872,728) - (16,872,728) -
(10,804,906) - (10,804,906) -
(3,727,600) - (3,727,600) -
(1,843,810) - (1,843,810) -
247,628 - 247,628 -
(4,763,296) - (4,763,296) -
(1,087,092) - (1,087,092) -
(1,566,777) - (1,566,777) -
(1,925,608) - (1,925,608) -
318,503 - 318,503 -
(48,393,236) - (48,393,236) -
-
(73,399) (73,399) -
167,267 167,267 --
-
(227,168) (227,168) -
-
186,001 186,001 -
-
1,457,682 1,457,682 -
-
7,511,619 7,511,619 -
-
880,363 880,363 -
-
9,902,365 9,902,365 -
(48,393,236) 9,902,365 (38,490,871) -
-
- - (3,120,800)
- - - (901)
- - - (3,121,701)
23,522,746 - 23,522,746 318,983
19,272,204 - 19,272,204 6,424,068
5,740,202 - 5,740,202 -
1,333,747 - 1,333,747 -
234,075 - 234,075 -
178,666 - 178,666 -
1,409,188 5,094,418 6,503,606 1,035,948
172,500 - 172,500 -
2,482,958 (2,482,958) - -
54,346,286 2,611,460 56,957,746 7,778,999
5,953,050 12,513,825 18,466,875 4,657,298
149,067,805 135,946,474 285,014,279 20,359,774
$ 155,020,855 $ 148,460,299 $ 303,481,154 $ 25,017,072
EXHIBIT A-3
CITY OF WICHITA FALLS, TEXAS
BALANCE SHEET-GOVERNMENTAL FUNDS
SEPTEMBER 30, 2006
Total
Nonmajor Governmental
General Governmental Funds
Assets
Cash and cash equivalents $ 10,344,678 $ 10,549,936 $ 20,894,614
Investments 4,477,122 - 4,477,122
Receivables(net):
Taxes and assessments 828,384 213,435 1,041,819
Other City funds 806,053 - 806,053
Component unit 600 1,771,420 1,772,020
Government agencies 3,054,506 2,729,110 5,783,616
Other 2,040,707 11,024 2,051,731
Inventory 221,878 - 221,878
Prepaid items 91,084 18,000 109,084
Other assets 100 3,000 3,100
Total assets $ 21,865,112 $ 15,295,925 $ 37,161,037
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 564,567 $ 350,674 $ 915,241
Accrued payroll 1,526,506 91,591 1,618,097
Payable to other City funds - 789,542 789,542
Payable to government agencies 280,189 117,050 397,239
Notes payable - 120,443 120,443
Other liabilities 3,116,825 876,224 3,993,049
Deferred revenue 2,268,203 166,734 2,434,937
Claims and judgments payable 211,898 - 211,898
Total liabilities 7,968,188 2,512,258 10,480,446
Fund balances:
Reserved for encumbrances 2,171,251 1,069,594 3,240,845
Reserved for inventory and prepaid items 221,878 18,000 239,878
Reserved for debt service - 1,312,424 1,312,424
Reserved for perpetual care - 779,495 779,495
Unreserved,designated for subsequent
years expenditures reported in:
General Fund 3,000,000 - 3,000,000
Special Revenue Funds - 4,604,198 4,604,198
Capital Projects Funds - 4,857,539 4,857,539
Unreserved, undesignated reported in:
General Fund 8,503,795 - 8,503,795
Special Revenue Fund - 142,417 142,417
Total fund balances 13,896,924 12,783,667 26,680,591
Total liabilities and fund balances $ 21,865,112 $ 15,295,925 $ 37,161,037
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, 2006
Total fund balances -governmental funds (Exhibit A-3) $ 26,680,591
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 $244,134,047
Related accumulated depreciation 97,619,512 146,514,535
Property taxes receivable and municipal court fines are not available to pay for current
period expenditures and therefore are deferred in the funds. 2,386,873
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 13,630,000
Accrued vacation and sick leave 6,190,154
Claims and judgments payable 175,868
Accrued interest 47,149 (20,043,171)
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. 1,208,079
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. (1,726,052)
Total net assets - governmental activities (Exhibit A-1) $ 155,020,855
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, 2006
Total
Nonmajor Governmental
General Governmental Funds
Revenues
Taxes $ 46,523,093 $ 3,705,416 $ 50,228,509
Charges for services 2,393,367 203,677 2,597,044
Licenses and permits 2,206,023 - 2,206,023
Fines and forfeitures 2,317,736 164,080 2,481,816
Intergovernmental revenue 73,033 9,609,204 9,682,237
Contributions 1,053,355 3,041,415 4,094,770
Miscellaneous revenue 1,422,476 1,394,389 2,816,865
Total revenues 55,989,083 18,118,181 74,107,264
Expenditures
Administrative services 9,573,692 529,950 10,103,642
Police 16,485,817 742,249 17,228,066
Fire 10,705,505 34,146 10,739,651
Parks and recreation 3,784,927 325,086 4,110,013
Accounting/finance 1,765,350 - 1,765,350
Community development 1,450,811 4,904,325 6,355,136
Public works 4,807,286 321,098 5,128,384
Health 2,616,316 1,791,442 4,407,758
Traffic and transportation 2,149,349 160,505 2,309,854
MPEC - 1,355,846 1,355,846
Capital outlay 3,089,449 4,154,666 7,244,115
Debt service-principal - 3,190,000 3,190,000
Debt service- interest and paying agent fees - 731,921 731,921
Total expenditures 56,428,502 18,241,234 74,669,736
Excess of revenues over(under) expenditures (439,419) (123,053) (562,472)
Other Financing Sources (Uses)
Transfers in 2,027,800 1,254,659 3,282,459
Transfers out (739,522) (1,488,064) (2,227,586)
Total other financing sources (uses) 1,288,278 (233,405) 1,054,873
Net change in fund balance 848,859 (356,458) 492,401
Fund balances -beginning 13,048,067 13,140,125 26,188,192
Fund balances -ending $ 13,896,926 $ 12,783,667 $ 26,680,593
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, 2006
Net change in fund balances-total governmental funds(Exhibit A-5) $ 492,401
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 are as follows:
Capital outlay during the year $ 7,282,727
Depreciation expense for the year 4,834,538 2,448,189
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. (38,129)
Because property tax receivables and municipal court receivables will not be collected for
several months after the City's fiscal year ends,they are not considered'available'revenues and
are deferred in the governmental funds. Deferred revenues increased by this amount this year. 22,925
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 2005-06 were: 3,190,000
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 (352,462)
Claims and judgments payable 17,836 (334,626)
Interest on long-term debt in the Statement of Activities differs from the amount reported
in the governmental funds because interest is recognized as an expenditure in the funds
when it is due, and thus requires the use of current financial resources. In the Statement
of Activities, however, interest expense is recognized as the interest accrues, regardless
of when it is due.The decrease in accrued interest is as follows:
Accrued interest at September 30,2005 57,308
Accrued interest at September 30,2006 47,149 10,159
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. 613,892
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. (451,761)
Change in net assets of governmental activities(Exhibit A-2) $ 5,953,050
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 30,2006
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Assets
Current assets:
Cash and cash equivalents $ 15,734,197 $ 3,722,579 $ 2,854,914 $ 22,311,690 $ 2,728,951
Restricted cash,cash equivalents and
investments:
Cash and cash equivalents 76,570,965 - - 76,570,965 -
Investments 5,695,488 - - 5,695,488 -
Receivables(net):
Customer and trade 3,731,317 886,579 122,291 4,740,187 -
Government agencies 51,419 - 107,747 159,166 -
Other 140,005 - 66,621 206,626 23,796
Other(restricted) 54,414 - - 54,414 -
Inventory 815,787 - 142,376 958,163 733,613
Prepaid items 22,575 200 11,058 33,833 16,026
Total current assets 102,816,167 4,609,358 3,305,007 110,730,532 3,502,386
Noncurrent assets:
Deferred charges 2,330,570 - - 2,330,570 -
Capital assets, net of accumulated
depreciation 170,589,289 4,954,842 10,545,631 186,089,762 15,057,374
Total noncurrent assets 172,919,859 4,954,842 10,545,631 188,420,332 15,057,374
Total assets 275,736,026 9,564,200 13,850,638 299,150,864 18,559,760
See accompanying notes to the basic financial statements.
19
EXHIBIT A-7
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30,2006
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Liabilities
Current liabilities:
Accounts payable-trade 2,532,904 57,754 84,260 2,674,918 174,517
Accrued payroll 352,720 113,483 60,569 526,772 72,805
Accrued vacation and sick leave 256,833 112,697 43,291 412,821 48,208
Payable to other City funds 16,512 - - 16,512 -
Payable to government agencies - 45,347 2,974 48,321 -
Estimated health claims payable - - - - 331,065
Other liabilities 2,485,815 - 29,699 2,515,514 -
Revenue bonds-current maturities 4,885,173 - - 4,885,173 -
Accrued interest-revenue bonds 1,284,568 - - 1,284,568 -
Total current liabilities 11,814,525 329,281 220,793 12,364,599 626,595
Long-term liabilities:
Payable to U.S.Government 728,039 - - 728,039 -
Revenue bonds, less current maturities 150,901,002 - - 150,901,002 -
Estimated liability for landfill closure and
post-closure care costs - 2,660,749 - 2,660,749 -
Customer deposits 2,487,315 - - 2,487,315 -
Total long-term liabilities 154,116,356 2,660,749 - 156,777,105 -
Total liabilities 165,930,881 2,990,030 220,793 169,141,704 626,595
Net Assets
Invested in capital assets, net of
related debt 97,069,567 4,954,842 10,545,631 112,570,040 15,057,374
Restricted for debt service 16,234,804 - - 16,234,804 -
Unrestricted (3,499,226) 1,619,328 3,084,214 1,204,316 2,875,791
Total net assets $109,805,145 $ 6,574,170 $ 13,629,845 130,009,160 $17,933,165
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 18,451,144
Net assets of business type activities $148,460,304
See accompanying notes to the basic financial statements.
20
Wichita
TEXAS
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, 2006
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Operating revenues:
Charges for services $ 33,365,451 $ 9,498,594 $ 1,970,682 $44,834,727 $ 9,098,444
Rents,concessions and other 71,134 19,079 1,077,485 1,167,698 314,761
Contributions - - - - 7,423,118
Total operating revenues 33,436,585 9,517,673 3,048,167 46,002,425 16,836,323
Operating expenses:
Personnel services 7,119,560 3,166,541 1,528,110 11,814,211 1,821,632
Supplies and materials 1,336,432 185,090 379,804 1,901,326 3,344,938
Maintenance and repairs 1,251,134 353,623 227,074 1,831,831 1,791,113
Utilities and other services 5,420,013 3,823,020 517,652 9,760,685 142,521
Insurance and contract support 535,669 90,736 81,392 707,797 6,262,102
Other expenses 1,323,402 492,655 304,600 2,120,657 867,760
Depreciation and amortization 3,360,170 89,191 321,417 3,770,778 2,988,437
Total operating expenses 20,346,380 8,200,856 3,360,049 31,907,285 17,218,503
Operating income(loss) 13,090,205 1,316,817 (311,882) 14,095,140 (382,180)
Nonoperating revenues(expenses):
Interest income 4,790,808 195,015 108,595 5,094,418 81,721
Gain on sale/abandonment of capital assets 946 21,000 (107,030) (85,084) 188,474
Interest expense and paying agent fees (6,968,644) - - (6,968,644) -
Intergovernmental operating grants - - 1,251,770 1,251,770 -
Total nonoperating revenues(expenses) (2,176,890) 216,015 1,253,335 (707,540) 270,195
Income(loss)before contributions and transfers 10,913,315 1,532,832 941,453 13,387,600 (111,985)
Capital contributions 455,217 - - 455,217 -
Transfers in - 1,215 1,079,462 1,080,677 2,911,502
Transfers out (1,187,636) (3,009,383) (538,034) (4,735,053) (312,000)
Change in net assets 10,180,896 (1,475,336) 1,482,881 10,188,441 2,487,517
Net assets-beginning 99,624,249 8,049,506 12,146,964 15,445,648
Net assets-ending $109,805,145 $ 6,574,170 $13,629,845 $ 17,933,165
Adjustment to reflect the consolidation of internal service funds activities
related to enterprise funds 2,325,385
Change in net assets of business type activities $12,513,826
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 30,2006
Enterprise Funds
Nonmajor
Water and Enterprise Internal
Sewer Sanitation Funds Total Service Funds
Cash flows from operating activities:
Received from customers and users $ 33,023,114 $ 9,438,629 $ 3,018,668 $ 45,480,411 $ 16,834,941
Payments to suppliers (11,559,867) (5,527,355) (1,834,180) (18,921,402) (13,205,109)
Payments to employees (5,127,633) (2,308,062) (1,178,258) (8,613,953) (1,369,927)
Net cash provided by(used in)operating activities 16,335,614 1,603,212 6,230 17,945,056 2,259,905
Cash flows from noncapital financing activities:
Intergovernmental operating grants - - 1,236,263 1,236,263 -
Transfers in from other funds - 1,215 1,079,462 1,080,677 2,911,502
Transfers out to other funds (1,187,636) (3,009,383) (538,034) (4,735,053) (312,000)
Net cash provided(used)by noncapital financing activities (1,187,636) (3,008,168) 1,777,691 (2,418,113) 2,599,502
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (23,230,116) (442,963) (948,595) (24,621,674) (4,526,990)
Proceeds from sale of capital assets 146 21,000 - 21,146 254,980
Principal paid on long-term debt (4,352,399) - - (4,352,399) -
Interest and fees paid on long-term debt (7,799,241) - - (7,799,241) -
Net cash provided by(used for)capital and related
financing activities (35,381,610) (421,963) (948,595) (36,752,168) (4,272,010)
Cash flows from investing activities:
Interest on investments 4,790,808 195,015 108,595 5,094,418 81,721
Sale of investments 9,207,240 - - 9,207,240 -
Net cash provided by(used for)investing activities 13,998,048 195,015 108,595 14,301,658 81,721
Net Increase(Decrease)in Cash and Cash Equivalents (6,235,584) (1,631,904) 943,921 (6,923,567) 669,118
Cash and Cash Equivalents-Beginning 98,540,746 5,354,483 1,910,993 105,806,222 2,059,833
Cash and Cash Equivalents-Ending $ 92,305,162 $ 3,722,579 $ 2,854,914 $ 98,882,655 $ 2,728,951
Reconciliation of cash and cash equivalents on the balance
sheet to the statement of cash flows:
Cash and cash equivalents $ 15,734,197 $ 3,722,579 $ 2,854,914 $ 22,311,690 $ 2,728,951
Restricted assets-cash and cash equivalents 76,570,965 - - 76,570,965 -
Total cash and cash equivalents at end of year $ 92,305,162 $ 3,722,579 $ 2,854,914 $ 98,882,655 $ 2,728,951
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 30,2006
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) $ 13,090,205 $ 1,316,817 $ (311,882) $ 14,095,140 $ (382,180)
Adjustments to reconcile operating income(loss)
to net cash provided by(used in)operating
activities:
Depreciation and amortization 3,360,170 89,191 321,417 3,770,778 2,988,437
Customer deposits received 67,595 - - 67,595 -
(Increase)decrease in current assets:
Receivables:
Customer and trade (455,157) (79,044) (23,648) (557,849) -
Other (25,909) - (5,851) (31,760) (1,382)
Inventory (101,375) - (28,595) (129,970) 189,113
Prepaid items (21,036) (200) 694 (20,542) 17,499
Increase(decrease)in current liabilities:
Accounts payable-trade (262,520) (22,546) 26,598 (258,468) (97,988)
Accrued payroll 166,272 34,153 21,477 221,902 25,728
Accrued vacation and sick leave 12,221 19,787 2,608 34,616 791
Payable to other City funds 15,154 (487) (2,357) 12,310 (4,892)
Estimated health claims payable - - - - (475,221)
Payable to government agencies - 4,512 2,413 6,925 -
Other liabilities 489,994 - 3,356 493,350 -
Estimated liability for landfill closure - 241,029 - 241,029 -
Total adjustments 3,245,409 286,395 318,112 3,849,916 2,642,085
Net cash provided by(used in)
operating activities $ 16,335,614 $ 1,603,212 $ 6,230 $ 17,945,056 $ 2,259,905
Noncash capital and financing activities:
Capital assets received from developers $ 455,217 $ - $ - $ 455,217 $ -
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, 2006
Agency
Fund
Assets
Cash and cash equivalents $ 92,605
Liabilities
Other liabilities $ 92,605
See accompanying notes to the basic financial statements.
24
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2006
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. Financial Reporting Model
In June 1999, the GASB issued Statement No. 34, Basic Financial Statements — and
Management's Discussion and Analysis — for State and Local Governments. This statement,
known as the "Reporting Model" statement, affects the way the City prepares and presents
financial information. State and local governments traditionally have used a financial reporting
model substantially different from the one used to prepare privilege-sector financial reports.
GASB Statement No. 34 established new requirements and a new reporting model for the annual
financial reports of state and local governments. The Statement was developed to make annual
reports easier to understand and more useful to the people who use governmental financial
information to make decisions and includes:
Management's Discussion and Analysis — GASB Statement No. 34 requires that financial
statements be accompanied by a narrative introduction and analytical overview of the
government's financial activities in the form of a "management's discussion and analysis"
(MD&A). This analysis is similar to the analysis the private sector provides in their annual
reports.
Government-wide Financial Statements — The reporting model includes financial statements
prepared using full accrual accounting for all of the government's activities. Government-wide
financial statements do not provide information by fund or account group, but distinguish
between the City's governmental activities, business-type activities and activities of its discretely
presented component units on the statement of net assets and statement of activities.
Significantly, the City's statement of net assets includes both noncurrent assets and noncurrent
liabilities of the City, which were previously recorded in the General Fixed Assets Account
Group and the General Long-term Obligations Account Group (such as buildings and
infrastructure, including bridges and roads, and general obligation debt). Accrual accounting
also reports all of the revenues and cost of providing services each year, not just those received
or paid in the current year or soon thereafter.
In addition to the fixed assets previously recorded in the General Fixed Assets Account Group,
the City retroactively capitalized infrastructure assets. In addition, the government-wide
statement of activities reflects depreciation expenses on the City's capital assets, including
infrastructure. In addition to the government-wide financial statements, the City has prepared
governmental fund financial statements which continue to use the modified accrual basis of
accounting and the current financial resources measurement focus. Accordingly, the
25
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
accounting and financial reporting for the City's General Fund and Debt Service Funds, the
City's major governmental funds, is similar to that previously presented in the City's financial
statements, although the format of financial statements has been modified by GASB Statement
No. 34.
Statement of Net Assets — The Statement of Net Assets is designed to display the financial
position of the primary government (government and business-type activities) and its discretely
presented component units. Governments report all capital assets, including infrastructure, in
the government-wide Statement of Net Assets and report depreciation expense — the cost of
"using up" capital assets—in the Statement of Activities. The net assets of a government will be
broken down into three categories, 1) invested in capital assets, net of related debt; 2)
restricted; and 3) unrestricted.
Statement of Activities — The new government-wide statement of activities reports expenses
and revenues in a format that focuses on the cost of each of the government's functions. The
expense of individual functions is compared to the revenues generated directly by the function
(for instance, through user charges or intergovernmental grants).
B. 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.
26
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2006
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONT'D.)
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.
The Wichita Falls 4B Sales Tax Corporation. The Wichita Falls 4B Sales Tax Corporation is a
non-profit corporation formed in May 1997 for the purpose of increasing employment
opportunities and for public improvement projects such as parks, auditoriums, learning centers,
open space improvements, athletic and exhibition facilities, and the related maintenance and
operating costs of such projects. The Corporation operates under the authority of Vernon's
Civil Statutes, Article 5190.6, Section 4B. Since the City Council appoints its Board of
Directors, approves its budgets, and exercises final authority over its operations, the Wichita
Falls 4B Sales Tax Corporation is considered to be part of the City's reporting entity and
presented in the accompanying basic financial statements as a discretely presented
component unit. The Wichita Falls 4B Sales Tax Corporation utilizes full accrual accounting.
Wichita Falls Reinvestment Zone#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 terminates on
December 31, 2008, 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 each member of its Board, 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/Wichita County Multi-Purpose Events Center (MPEC). The Wichita Falls/Wichita
County Multi-Purpose Events Center (a non-profit entity) was established to operate the Multi-
Purpose Events Center (Center) for the City. The Center consists of a Coliseum, an Exhibit Hall
and an Agricultural Complex. Since the City appoints five members of the seven-member MPEC
Board, approves its budgets, and exercises final authority over its operations, MPEC is
27
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
considered to be a part of the City's reporting entity and presented in the accompanying basic
financial statements as a discretely presented component unit. The operations of MPEC also
include the operations of the Convention & Visitors Bureau. Effective October 1, 2006, the City
assumed full responsibility for the operations of MPEC. As a result, MPEC will no longer be
reported as a component unit after September 30, 2006. MPEC will be reported as a proprietary
fund of the City in future periods.
No separate audited financial statements are available for the City's blended and discretely
presented component units. Complete financial statements for the individual component units
may be obtained from the City's Director of Finance 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.
C. 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. 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.
28
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2006
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.
D. 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, sales tax and sales interest associated with the current fiscal period
are all susceptible to accrual and have been recognized as revenues of the current fiscal period. All
of the revenue items are considered to be measurable and available only when cash is received.
29
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
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
to follow subsequent private-sector guidance.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as
program revenues. Likewise, general revenues include all taxes.
30
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2006
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, golf 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.
E. 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 requires that government to use
them for a specific purpose or purposes established in the provider's enabling legislation.
• Voluntary nonexchange transactions result from legislative or contractual agreements, other
than exchanges, entered into willingly by two or more parties. Examples of the City's
voluntary nonexchange transactions include capital grants, state shared revenue and private
donations.
31
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
Providers of government-mandated nonexchange transactions and voluntary nonexchange
transactions should recognize liabilities and expenses/expenditures and recipients should
recognize receivables (or decrease in liabilities) and revenue when all applicable eligibility
requirements, including time requirements are met.
All nonexchange transactions occurring in governmental fund types are also subject to the modified
accrual revenue recognition criteria. Accordingly, assets and revenue should not be recognized
unless measurable and available.
F. 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
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.
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 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:
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
32
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2006
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)
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, 2006, the City's business-like activities incurred a
total of $7,440,874 of interest costs. Of this amount, $472,230 was capitalized on
construction projects and $6,968,644 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 the government-wide financial statements and proprietary fund types, bond premiums
and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the straight-line method in the government-wide financial statements. Bonds
payable are reported net of the applicable bond premium or discount. Issuance costs are
reported as deferred bond issue costs and amortized over the term of the related debt. In
addition, gains or losses on proprietary fund bond refunding are amortized over the term of
the lesser of the new bonds or the refunded bonds' life using the effective interest method. In
the governmental fund financials, bond proceeds are reported as another financing source.
Bond premiums and discounts in governmental funds are also recognized currently as other
financing sources or uses. Issuance costs, even if withheld from the actual net proceeds
received, are reported as debt service expenditures.
5. 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, Bureau of Justice Assistance, North Texas Regional Narcotics Task
Force, 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.
33
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
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.
34
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2006
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, 2006 is based on
management's estimate of probable losses in the amount of $387,766. 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. $211,898 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, 2004 to September 30, 2006:
Health Workers'
Care Compensation
Liability balance, October 1, 2004 $ 835,784 $ 534,822
Incurred claims/adjustments 6,443,723 1,009,754
Claim payments ( 6.473.221) ( 1.123.488)
Liability balance, September 30, 2005 806,286 421,088
Incurred claims/adjustments 5,693,158 1,122,990
Claim payments ( 6.168.379) ( 1.156.312)
Liability balance, September 30, 2006 $ 331.065 $ 387.766
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
35
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
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, 2006, the total amount of the City's
demand and time deposits per the general ledgers was $364,949, and the total amount per the
City's September 30, 2006 bank statements was $2,077,466. 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, 2006
are as follows:
Fair Value/ Average Weighted Average
Carrying Credit Quality/ Months to
Types of Investments Amount Cost Ratinas Maturity
Primary Government:
TexPool $106,656,450 $106,656,450 N/A 1.00
LOGIC 1,350,464 1,350,464 N/A 1.00
Money market account 14,177,535 14,177,535 N/A 1.00
Federal agency notes 10,172,611 10,102.512 AAA/Aaa 6.40
Total primary government
investments 132,357,060 132,286,961
Component Units:
TexPool 23,353,098 23,353.098 N/A 1.00
Total component unit
investments 23.353.098 23,353.098
Total investments $155.710.158 $155.640,059
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.
36
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2006
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.
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 significantly 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. At year end, the City was not exposed to interest rate risk since the City holds
all direct investments to maturity.
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.
37
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTD.)
SEPTEMBER 30, 2006
Note 4- RECEIVABLES
Receivables at September 30, 2006 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 $ 1,466,269 $ 298,218 $ - $ - $ - $ - $ 1,764,487 $ 27,966 $ 1,792,453
Customer and trade - - 4,392,294 1,103,231 148,225 - 5,643,750 - 5,643,750
Other City funds 806,053 - - - - - 806,053 - 806,053
Component unit 600 1,771,420 - - - - 1,772,020 - 1,772,020
Government agencies 3,054,506 2,729,110 51,419 - 107,747 - 5,942,782 1,154,061 7,096,843
w Other 5,603,756 11,024 140,004 - 66,620 23,796 5,845,200 97,526 5,942,726
Op
Restricted—other - - 54.414 - 54.414 - 54.414
Gross receivables 10,931,184 4,809,772 4,638,131 1,103,231 322,592 23,796 21,828,706 1,279,553 23,108,259
Less: Allowance for
uncollectible accounts ( 4.200.934) ( 84.783) ( 660.977) ( 216.652) ( 25,934) - ( 5.189.280) - ( 5,189,280)
Net total receivables $ 6 730 250 $4.724.989 $3_977 154 $ 886 579 $296 658 $23,796 $16_639 426 $1 279 553 $17 918 979
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$1,659,308 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 30,2006
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.
TheCityispermitted byits Home Rule Charter to levytaxes upto $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, 2006 was $.59246 per $100 which means that the City has a tax margin of
$1.65754 per $100, and could raise up to $61,647,728 additional tax revenue a year from the
present assessed valuation of$3,719,230,165 before the limit is reached.
Note 6 - RESTRICTED ASSETS- WATER AND SEWER FUND
Restricted assets in the Water and Sewer Fund, held for specific purposes in accordance with
bond ordinances or other legal restrictions, are comprised of the following:
For Debt Service:
Cash and cash equivalents $16,234,804
For Capital Improvements:
Cash and cash equivalents 57,848,846
Investments 5,695,488
Receivables 54,414
For Customer Deposits:
Cash and cash equivalents 2,487,315
Total R2.320.867
Note 7 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2006 was as follows:
39
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2006
Note 7 - CAPITAL ASSETS(CONT'D.)
Balance Balance
Governmental activities: October 1, September 30,
2005 Increases Decreases 2006
Capital assets not being depreciated:
Land $ 12,677,759 $ - $ - $ 12,677,759
Construction in progress 2.071.107 2,760.561 1.024.404 3.807.264
Total capital assets not being depreciated 14.748.866 2.760.561 1.024,404 16.485.023
Capital assets being depreciated:
Land betterments 10,794,753 - - 10,794,753
Buildings,systems and improvements 57,268,512 1,945,034 - 59,213,546
Infrastructure 137,968,950 3,818,884 1,034,853 140,752,981
Machinery and equipment 16,117,003 699,468 51,813 16,764,658
Furniture and fixtures 221,689 - - 221,689
Motor vehicles 31.485 - - 31.485
Total capital assets being depreciated 222.402.392 6.463.386 1,086.666 227,779.112
Less accumulated depreciation for:
Land betterments 2,318,206 111,925 - 2,430,131
Buildings,systems and improvements 10,026,830 1,192,408 - 11,219,238
Infrastructure 72,949,790 2,709,321 79,909 75,579,202
Machinery and equipment 7,449,911 819,591 51,813 8,217,689
Furniture and fixtures 188,382 9,994 - 198,376
Motor vehicles 31.485 - - 31.485
Total accumulated depreciation 92,964.604 4,843,239 131,722 97,676.121
Total capital assets being depreciated, net 129.437.788 1.620.147 954,944 130.102.991
Governmental activities capital
assets, net $144.186.654 $ 4.380.708 $1.979.348 $146.588.014
40
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2006
Note 7 - CAPITAL ASSETS(CONT'D.)
Balance Balance
Business-type activities: October 1, September 30,
2005 Increases Decreases 2006
Capital assets not being depreciated:
Land $ 7,838,017 $ 311,901 $ - $ 8,149,918
Construction in progress 49,681.735 21,454,477 11,143,394 59,992,818
Total capital assets not being depreciated 57,519.752 21,766,378 11,143,394 68,142,736
Capital assets being depreciated:
Land betterments 25,010,724 1,408,819 178,383 26,241,160
Buildings,systems and improvements 157,168,590 13,373,643 147,000 170,395,233
Machinery and equipment 5,894,941 192,535 22,901 6,064,575
Furniture and fixtures 48,553 - - 48,553
Motor vehicles 35,132.495 4.420,229 1.327.456 38.225.268
Total capital assets being depreciated 223.255,303 19.395.226 1,675.740 240.974.789
Less accumulated depreciation for:
Land betterments 10,055,603 435,877 71,353 10,420,127
Buildings,systems and improvements 64,629,283 3,024,232 147,000 67,506,515
Machinery and equipment 3,714,141 254,732 9,974 3,958,899
Furniture and fixtures 28,963 3,829 - 32,792
Motor vehicles 24.556.158 2.885.955 1.316.578 26.125.535
Total accumulated depreciation 102.984,148 6.604.625 1.544.905 108,043,868
Total capital assets being depreciated, net 120.271.155 12.790.601 130,835 132.930.921
Business-type activities capital
assets, net $177,790,907 $34,556.979 $11.274.229 $201.073.657
Depreciation expense was charged to functions as follows:
Governmental activities:
Administrative services $ 298,413
Police 604,048
Fire 124,358
Parks and recreation 71,373
Accounting/finance 95,193
Community development 26,801
Public works 2,477,924
Health 86,103
Traffic and transportation 248,541
MPEC 810,485
Total governmental depreciation $4.843.239
41
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
Note 7 - CAPITAL ASSETS (CONT'D.)
Business-type activities:
Golf $ 11,272
Municipal Airport 56,290
Kickapoo Airport 192,297
Transit 195,601
Sanitation 2,026,674
Water and sewer 4,080,785
Stormwater drainage 41.706
Total business-type depreciation $6 604,625
Note 8 - RETIREMENT PLANS
Texas Municipal Retirement System
Plan Description
The City provides pension benefits for substantially all of its full-time employees, except
firefighters, through a nontraditional, joint contributory, defined benefit plan in the state-wide
Texas Municipal Retirement System (TMRS), one of 811 administered by TMRS, an agent
multiple-employer public employee retirement system.
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.
42
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
Note 8 - RETIREMENT 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, 2005 valuation is effective for rates beginning January
2007).
Wichita Falls Firemen's Relief and Retirement Fund
Plan Description
The City provides pension benefits for all of its firefighters through a single employer defined
benefit pension plan. The Wichita Falls Firemen's Relief and Retirement Fund (Fund)operates
under an act passed in 1937 by the Texas State Legislature and adopted by the City's
firefighters.
Benefits are determined on a "formula" or a "final salary" plan. A firefighter who qualifies for a
retirement benefit will receive monthly retirement equal to 2.28% (2.10% prior to August 5,
1998) of the firefighter's highest three year average salary calculated over the seventy-eight
consecutive pay periods during the 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 actuarially reduced early retirement benefits before age 50,
provided the employee has accrued at least 20 years of service. The plan also provides death
and disability benefits. Members who terminate their service and are nonvested are entitled to
the excess of the member's contributions over any benefits previously received.
43
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2006
Note 8 - RETIREMENT 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, 2004
was 31.5 years.
Schedule of Actuarial Liabilities and Fundina Proaress
Texas
Municipal Firemen's Total
Retirement Relief and (Memorandum
System Retirement Only)
Actuarial Valuation Date 12/31/05 12/31/04*
Actuarial Value of Assets $ 71,393,893 $32,240,524 $103,634,417
Actuarial Accrued Liability(AAL) 101,093,789 42,178,490 143,272,279
Percentage Funded 70.6% 76.4% 72.3%
Unfunded Actuarial Accrued Liability(UAAL) 29,699,896 9,937,966 39,637,862
Annual Covered Payroll 32,846,479 7,175,196 40,021,675
UAAL as a Percentage of Covered Payroll 90.4% 138.5% 99.0%
Net Pension Obligation(NPO)at
the Beginning of the Period -0- -0- -0-
Annual Pension Cost:
Annual Required Contribution (ARC) $ 4,012,343 $ 783,396 $ 4,795,739
Interest on NPO -0- -0- -0-
Adjustment to the ARC -0- -0- -0-
Annual Pension Cost $ 4.012.343 $ 783,396 $ 4.795.739
44
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2006
Note 8 - RETIREMENT PLANS (CONT'D.)
Texas
Municipal Firemen's Total
Retirement Relief and (Memorandum
System Retirement Only)
Percentage of Annual Pension Costs Contributed 100% 100% 100%
Contributions Made $ 4,012,343 $ 783,396 $ 4,795,739
Increase in NPO -0- -0- -0-
NPO At the End of the Period $ -0- $ -0- $ -0-
Two preceding years:
2004:
Annual Pension Cost $ 3,845,167 $ 743,445 $ 4,588,612
Percentage of Annual Pension Costs
Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
2003:
Annual Pension Cost $ 4,262,660 $ 733,764 $ 4,996,424
Percentage of Annual Pension Costs
Costs Contributed 100% 100% 100%
NPO At the End of the Period -0- -0- -0-
*
The Wichita Falls Firemen's Relief and Retirement Fund has not had an actuarial valuation since
this date. A valuation is planned for December 31, 2006.
Actuarial Assumptions
Texas
Municipal Firemen's
Retirement Relief and
System Retirement
Actuarial Cost Method Unit Credit Entry Age
Amortization Method Level Percent of Payroll Level Percent of Payroll
Remaining Amortization Period 25 years 31.5 years
Amortization Period Open Closed
Asset Valuation Method Amortized Cost Smooth Market Value
Investment Rate of Return 8% 8%
Projected Salary Increases None 4.75%
Includes Inflation at None 4.75%
Cost-of-Living Adjustments None None
Both of the stand-alone financial reports for both 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.
45
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2006
Note 9 - 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 10 - 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, 1959 and expiring May 14, 2009. Additional rent is based on landing fees at
a rate of $1.8264 per scheduled landing. Landing fees collected and paid on this lease were
$9,006 for the fiscal year ended September 30, 2006.
Note 11 - 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, 2006.
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, 2006:
Year ending September 30:
2007 $161,954
2008 125,977
2009 89,872
2010 30,598
2011 10,262
Total minimum payments required $418.663
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, 2006:
Minimum rentals $210,257
Contingent rentals 9,006
Total rentals $219.263
46
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2006
Note 12 - LONG-TERM LIABILITIES
Long-term liabilities transactions for the year ended September 30, 2006 are summarized as
follows:
Balance at Balance at
October 1, Retired and September 30, Due Within
2005 Issued Transferred(1) 2006 One Year
Governmental Activities:
General obligation bonds $ 10,725,000 $ - $ 2,455,000 $ 8,270,000 $ 880,000
Combination tax and revenue bonds 6,095,000 - 735,000 5,360,000 755,000
Note payable 178,149 - 57,706 120,443 59,196
Accrued vacation and sick
leave payable 5,838,344 1,684,464 1,331,722 6,191,086 1,600,000
Claims and judgments payable 421.088 1,122,990 1.156.312 387.766 211.898
Total governmental activities 23,257,581 2.807.454 5.735.740 20.329.295 3.506.094
Business-tvoe Activities:
Utility system revenue bonds,
net of premium(discount) 126,538,189 - 1,713,947 124,824,242 1,788,084
Combination tax and revenue bonds 33,975,588 - 3,013,655 30,961,933 3,097,089
Accrued vacation and sick
leave payable 424,969 551,525 516,397 460,097 400,000
Note payable 755,438 - 27,399 728,039 28,291
Landfill closure,post-closure costs 2,419,720 241.029 - 2.660.749 -
Total business-type activities 164.113.904 792.554 5,271,398 159.635.060 5.313.464
Total long-term liabilities $187.371 485 $3 6n0.n0£t $11 007 418 $179 964 075 $8 919.556
(1) Includes bond premium amortization of$402,602 relative to the revenue bonds payable.
The portion of long-term liabilities due within one year as reflected on Exhibit A-1 includes $47,149
and $1,284,567 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, 2006, 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 9/30/06
General Obligation Bonds:
General Obligation Construction 3.75%- 9/01/21 $175,000 to $10,205,000 $ 8,270,000
and Refunding Bonds,Series 2001 5.375% $945,000
Total General Obligation Bonds 8.270.000
47
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2006
Note 12 - LONG-TERM LIABILITIES(CONT'D.)
Range of Final Annual Bonds
Interest Maturity Serial Bonds Outstanding
Rates Date Payments Authorized at 9/30/06
Combination Tax and Revenue
Bonds:
Combination Tax and Revenue 3.00%- 9/01/18 $335,000 to 7,550,000 5,360,000
Certificates of Obligation, 4.00% $775,000
Series 2003
Combination Tax and Revenue 2.00%- 8/01/12 $685,000 to 18,840,000 17,515,000
Refunding Bonds,Series 2004 5.00% $3,645,000
Plus bond premium 716,251
Combination Tax and Revenue 4.90%- 8/01/16 $115,000 to 14,020,000 11,850,000
Refunding Bonds,Series 2005 5.00% $2,650,000
Plus bond premium 880.682
Total Combination Tax and
Revenue Bonds 36.321.933
Revenue Bonds:
Water and Sewer Revenue Bonds:
Water&Sewer System 4.05%- 8/01/18 $180,000 to 5,500,000 3,815,000
Priority Lien Revenue Bonds, 4.65% $400,000
Series 1998B
Water&Sewer System 3.75%- 8/01/27 $1,220,000 to 118,770,000 111,935,000
Priority Lien Revenue 5.375% $11,515,000
Bonds,Series 2001
Plus bond premium 1,214,242
Water&Sewer Subordinate 3.14%- 8/01/18 $25,000 to 8,060,000 7,860,000
Lien Revenue Bonds, 4.59% $3,320,000
Series 1998
Total Revenue Bonds 124.824.242
Total All Bonds $169.416.175
48
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30,2006
Note 12 - LONG-TERM LIABILITIES (CONT'D.)
All of the General Obligation Bonds were issued on the full faith and credit of the City and are
secured by ad valorem taxes levied against all taxable property. These bonds are serviced by the
Debt Service Fund with an apportionment of the ad valorem tax levy. At September 30, 2006,
$421,272 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.
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, 2006 is classified as
follows:
Long-term $699,748
Current portion 28,291
Total $728.039
The City issued a note payable in December 2002 for the acquisition of an ice plant at the Multi-
Purpose Events Center Coliseum. The note is due in five annual installments of $62,780
beginning in December 2003. The note carries an interest rate of 2.81%.
49
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30, 2006
Note 12 - LONG-TERM LIABILITIES(CONT'D.)
Aggregate maturities of the long-term debt(principal and interest) for the years subsequent to September 30, 2006 are as follows:
Combination Tax and
Year Ending General Obligation Bonds Revenue Bonds Revenue Bonds Notes Payable Total
September 30. Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2007 $ 880,000 $ 387,569 $ 3,852,089 $1,202,401 $ 1,788,084 $ 6,279,556 $ 87,487 $ 27,267 $ 6,607,660 $ 7,896,793
2008 910,000 350,169 4,160,612 1,080,853 1,727,180 6,205,882 90,458 24,295 6,888,250 7,661,199
2009 945,000 312,631 3,854,464 974,726 1,786,394 6,139,825 30,161 21,813 6,616,019 7,448,995
2010 745,000 273,650 3,970,730 840,560 1,875,579 6,071,197 31,142 20,831 6,622,451 7,206,238
2011 340,000 241,988 4,082,400 739,065 1,944,611 5,991,200 32,155 19,818 6,399,166 6,992,071
(n 2012-2016 1,940,000 961,675 15,641,638 1,861,724 18,148,611 27,960,733 177,164 82,704 35,907,413 30,866,836
o 2017-2021 2,510,000 406,744 760,000 45,425 40,870,665 20,971,169 207,917 51,952 44,348,582 21,475,290
2022-2026 - - - - 52,339,983 9,343,374 191,998 15,862 52,531,981 9,359,236
2027-2030 - - - - 4.343.135 217.000 - - 4.343.135 217.000
Totals $ 8.270.000 $2.934.426 $36 321.933 $6 744 754 $124.824.242 $89.179.936 $848,482 $264,542 $170,264,657 $ 99.123,658
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2006
Note 13 - DEFEASED DEBT
Prior Years
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, 2006, $2,265,000 of the 1986
Water and Sewer Revenue Refunding Bonds are considered defeased.
Note 14 - LANDFILL AND TRANSFER STATION CLOSURE AND POSTCLOSURE CARE COSTS
State and federal laws and regulations require that the City place a final cover on its landfill when
closed, and perform certain maintenance and monitoring functions at the landfill site for thirty
years after closure. In accordance with the Texas Administrative Code, Title 30, Part 1, Chapter 7,
the City annually submits a financial assurance letter to the Texas Commission on Environmental
Quality (TCEQ). In addition to operating expenses related to current activities of the landfill, an
expense provision and related liability are being recognized based on the future closure and
postclosure care costs that will be incurred near or after the date the landfill no longer accepts
waste. The recognition of these landfill closure and postclosure care costs is based on the amount
of the landfill used during the year. The estimated liability for landfill closure and postclosure care
costs has a balance of $2,660,749 as of September 30, 2006, which is based on 14% usage of
the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of
$15,841,453 as the remaining estimated capacity is filled. The landfill is expected to be filled to
capacity in 2153. Actual costs may be higher due to inflation, change in technology, or changes in
regulations.
Note 15 - INTERFUND BALANCES
Balances due to and due from other funds at September 30, 2006 consisted of the following:
Due To Fund Due From Fund Amount Purpose
General Fund Nonmajor Governmental Funds $789,541 Short-term loan
General Fund Water and Sewer Fund 16.512 Short-term loan
Total $806,053
All amounts due are scheduled to be repaid within one year.
Balances due to and due from component units at September 30, 2006 consisted of the following:
Due To Fund Due From Fund Amount Purpose
General Fund MPEC $ 600 Short-term loan
Nonmajor Governmental Funds Wichita Falls 4B Sales Tax Corp. 1.771.420 Construction funding
Total $1.772.020
All amounts due are scheduled to be repaid within one year.
51
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2006
Note 15 - INTERFUND BALANCES (CONT'D.)
Transfers to and from other funds during the year ended September 30, 2006 were as follows:
Transfers From Transfers To Amount Reason
General Fund Nonmajor Enterprise Funds $ 264,029 Fund operating deficits
General Fund Nonmajor Enterprise Funds 28,000 Supplement operating grants
General Fund Nonmajor Governmental Funds 48,149 Supplement operating grants
General Fund Internal Service Fund 84,323 Purchase capital assets
General Fund Internal Service Fund 315,021 Fund operating deficits
Nonmajor Governmental Funds Nonmajor Governmental Funds 517,331 Fund debt service payment
Nonmajor Governmental Funds Nonmajor Governmental Funds 33,547 Fund operating deficit
Nonmajor Governmental Funds Nonmajor Enterprise Funds 787,433 Purchase capital assets
Nonmajor Governmental Funds Internal Service Funds 148,537 Purchase capital assets
Nonmajor Governmental Funds Sanitation Fund 1,215 Purchase capital assets
Water and Sewer Fund General Fund 616,145 Administrative overhead
Water and Sewer Fund Nonmajor Governmental Funds 500,000 Fund debt service payment
Water and Sewer Fund Internal Service Funds 71,491 Purchase capital assets
Sanitation Fund General Fund 1,099,655 Administrative overhead
Sanitation Fund Internal Service Funds 1,909,728 Purchase capital assets
Nonmajor Enterprise Funds Nonmajor Governmental Funds 155,632 Supplement operating grant
Nonmajor Enterprise Funds Internal Service Funds 382,402 Purchase capital assets
Internal Service Funds General Fund 312.000 Administrative overhead
Total $7.274.638
Note 16 - 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 $6,190,154 at September 30, 2006. This accrual is recorded as a long-term
liability in the Government-wide Statement of Net Assets.
Post-Retirement Health Care and Life Insurance Benefits
In addition to providing pension benefits, the City provides certain health care and life insurance
benefits for retired employees. Substantially all of the City's employees may become eligible for
those benefits if they reach normal retirement age while working for the City. The cost of retiree
health care is paid for by the retirees. The cost of life insurance benefits for 10 retirees is partially
funded by the City. The City's portion of these costs is recognized as expense when paid. For the
fiscal year ended September 30, 2006, these costs were not material to the financial statements.
52
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
Note 16 - 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 District Number 2 equally, at the base rate of$0.23 per one thousand gallons, which
is adjusted annually. The rate for the year ended September 30, 2006 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.
Multi-Purpose Events Center
The City owns an activities complex known as the Multi-Purpose Events Center (MPEC). These
assets are recorded in the government-wide statement of net assets. The management and
operations of the MPEC are contracted with a third party in which the City will fund any operating
deficits of the MPEC from the City's undesignated hotel/motel taxes. During the year ended
September 30, 2006, the City paid $1,355,846 to the third party to fund these operating deficits.
Construction Contracts
At September 30, 2006, the City was committed to several construction contracts. The amounts
for which the various funds are committed to complete these contracts are as follows:
General Fund $1,258,047
Nonmajor Governmental Funds 1,589,383
Water and Sewer Fund 3,880,785
Sanitation Fund 859,584
Nonmajor Enterprise Funds 85,170
Internal Service Funds 12,413
Total contract commitments $7.685,382
53
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
Note 16 - COMMITMENTS AND CONTINGENCIES (CONT'D.)
Economic Development Contracts - Discretely Presented Component Units
At September 30, 2006, the Wichita Falls Economic Development Corporation and the Wichita
Falls 4B Sales Tax Corporation were committed to several economic development contracts. The
amounts for which the component units are committed to complete these contracts are as follows:
Wichita Falls Economic Development Corporation $ 399,753
Wichita Falls 4B Sales Tax Corporation 451,237
Total contract commitments $ 850.990
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, Bureau of Justice Assistance, North Texas Regional Narcotics Task Force,
and numerous health-related grants.
In connection with these grants, the City is required to comply with specific terms and agreements
as well as applicable Federal and State laws and regulations. Such compliance is subject to
review and audit by the grantors and their representatives.
In the opinion of management, the City has complied with all requirements. However, since such
programs are subject to future audit or review, the possibility of disallowed expenditures exists. In
the event of any disallowance of claimed expenditures, the City expects the resulting liability to be
immaterial.
Note 17 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED
COMPONENT UNITS
The City has four component units that are discretely presented in the City's basic financial
statements. Condensed financial information for the year ended September 30, 2006 is as
follows:
54
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS(CONT'D.)
SEPTEMBER 30,2006
Note 17 - CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED
COMPONENT UNITS(CONT'D.)
Wichita Falls Wichita Falls Multi-
Economic 4B Sales Wichita Falls Purpose
Development Tax Reinvestment Events
Corporation Corporation Zone#1 Center Totals
Condensed statement of net assets:
Cash,investments and other
current assets $17,058,190 $7,101,176 $363,998 $ 281,639 $24,805,003
Capital assets,net of accumulated
depreciation 2.434.211 - - 34.043 2.468.254
Total assets 19.492,401 7.101.176 363.998 315.682 27.273.257
Accounts payable and other
current liabilities 133,859 - 20,000 330,306 484,165
Amount due to primary government - 1.771.420 - 600 1.772.020
Total liabilities 133.859 1.771.420 20.000 330.906 2.256.185
Net assets $19.358.542 $5.329.756 $343,998 ($ 15.224) $251)17 072
Condensed statement of activities:
Expenses:
Multi-Purpose Events Center $ - $ - $ - $3,478,545 $ 3,478,545
Community development 1.819.025 1.112.275 189.500 - 3.120.800
Total expenses 1.819.025 1.112.275 189.500 3.478.545 6.599.345
Program revenues:
Charges for services - - - 2,121,798 2,121,798
Operating grants and
contributions - - - 1.355.846 1.355.846
Total program revenues - - - 3.477.644 3.477.644
Net program expense ( 1.819.025) ( 1.112.275) ( 189,500) ( 901) ( 3.121.701)
General revenues:
Tax revenues 3,212,034 3,212,034 318,983 - 6,743,051
Non-tax general revenues 737.547 287.478 10.923 - 1.035.948
Total general revenues and
transfers 3.949.581 3.499.512 329.906 - 7.778.999
Change in net assets 2,130,556 2,387,237 140,406 ( 901) 4,657,298
Beginning net assets 17.227.986 2,942,519 203,592 ( 14.323) 20.359.774
Ending net assets $19.358.542 $5,329,756 $343,998 ($ 15.224) $25.017.072
55
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
SEPTEMBER 30, 2006
Note 18 - SUBSEQUENT EVENT
In November 2006, the City approved the issuance of Combination Tax and Revenue Certificates
of Obligation, Series 2006A, in the amount of $17,075,000. The proceeds 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.
The City also approved the issuance of Combination Tax and Revenue Certificates of Obligation,
Series 2006B. The proceeds from this issue will be used for the renovation of Weeks Park Golf
Course.
56
Required Supplemental Information
Wichita
E X S. -
EXHIBIT B-1
CITY OF WICHITA FALLS, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Variance With
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 44,911,143 $ 45,874,482 $ 46,523,093 $ 648,611
Charges for services 2,240,075 2,240,075 2,393,367 153,292
Licenses and permits 2,289,575 2,289,575 2,206,023 (83,552)
Fines and forfeitures 2,108,280 2,108,280 2,317,736 209,456
Intergovernmental revenue 70,500 70,500 73,033 2,533
Contributions - - 1,053,355 1,053,355
Miscellaneous revenue 947,201 947,201 1,422,476 475,275
Total revenues 52,566,774 53,530,113 55,989,083 2,458,970
Expenditures:
Current:
Administrative services 8,888,266 10,251,377 9,573,692 677,685
Police 17,058,732 17,021,761 16,485,817 535,944
Fire 10,525,227 10,722,710 10,705,505 17,205
Parks and recreation 3,837,354 3,978,351 3,784,927 193,424
Accounting/finance 1,874,718 1,869,886 1,765,350 104,536
Community development 1,495,596 1,521,593 1,450,811 70,782
Public works 4,726,359 4,854,476 4,807,286 47,190
Health 2,780,837 2,814,922 2,616,316 198,606
Traffic and transportation 1,854,809 2,200,723 2,149,349 51,374
Capital outlay 1,963,547 4,172,459 3,089,449 1,083,010
Total expenditures 55,005,445 59,408,258 56,428,502 2,979,756
Excess of revenues over(under) expenditures (2,438,671) (5,878,145) (439,419) 5,438,726
Other financing sources(uses):
Transfers in 2,055,542 2,055,542 2,027,800 (27,742)
Transfers out (372,346) (734,367) (739,522) (5,155)
Total other financing sources (uses) 1,683,196 1,321,175 1,288,278 (32,897)
Excess of revenues and other sources
over(under)expenditures and other uses (755,475) (4,556,970) 848,859 5,405,829
Fund balance-beginning 13,048,067 13,048,067 13,048,067 -
Fund balance-ending $ 12,292,592 $ 8,491,097 $ 13,896,926 $ 5,405,829
57
CITY OF WICHITA FALLS, TEXAS
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2006
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 all governmental funds on a
basis which is consistent with generally accepted accounting principles. However, the budgets for the
Capital Projects Funds are adopted for specific projects, are not binding, and may exceed one year.
The City Council must approve any transfer of appropriation balances or portions thereof from one
department to another. The City Manager has the authority, without City Council approval, to transfer
appropriation balances from one expenditure account to another within a single department of the City.
Supplemental appropriations of $4,402,813 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.
58
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)
12/31/96 $ 48,533,798 $ 62,979,458 77.1% $ 14,445,660 $ 23,859,734 60.5%
12/31/97 51,833,203 67,746,553 76.5% 15,913,350 24,726,606 64.4%
12/31/98 53,779,205 70,332,145 76.5% 16,552,940 25,833,511 64.1%
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%
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.
59
I
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)
12/31/96 $ 18,276,026 $ 20,042,040 91.2% $ 1,766,014 $ 4,794,594 36.8%
12/31/97 19,916,831 25,193,592 79.1% 5,276,761 4,712,854 112.0%
12/31/98(a) - - - - - -
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) - - - - - -
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. The last actuarial valuation update was completed as of December 31,2004. Additional historical trend
information will be disclosed in future periods as it becomes available.
(b) For the 2002 and 2004 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.
60
11
41113 I.1?
•
Combining Financial Statements
O'T
ty
\
\To
4.)
(41
fe•sk `04‘
Ile* l'eZ' '
, \
_
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.
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 bonds 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.
Miscellaneous Capital Proiects 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 30,2006
Special Revenue
Home
Community Investment Hotel/ Airport Miscellaneous
Development Section 8 Partnership Motel Improvement Special
Block Grant Housing Agreement Tax Grant Revenue
ASSETS
Cash and cash equivalents $ 50 $ 2,365,445 $ 265,752 $ 37,238 $ 372,608 $ 1,333,586
Receivables:
Taxes and assessments - - - 105,179 - -
Component Unit - - - - - -
Govemment agencies 619,014 - 535,811 - - 932,058
Other - 10,224 - - - 800
Prepaid items 18,000 - - - - -
Other assets - - - - - 3,000
Total assets $ 637,064 $ 2,375,669 $ 801,563 $ 142,417 $ 372,608 $ 2,269,444
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable-trade $ 103,018 $ 607 $ 14,500 $ - $ 13,024 $ 81,099
Accrued payroll 5,784 11,949 2,431 - - 71,133
Payable to other City funds 98,931 662 - - - 685,886
Payable to govemment agencies - 96,295 - - 18,053 2,702
Notes payable - - - - - -
Other liabilities - - 44,744 - - 378,178
Deferred revenue - - - - - 48,064
Total liabilities 207,733 109,513 61,675 - 31,077 1,267,062
Fund balance:
Reserved for encumbrances 98,852 - - - - 58,238
Reserved for prepaid items 18,000 - - - - -
Reserved for debt service - - - - - -
Reserved for perpetual care - - - - - -
Unreserved:
Designated for subsequent
years expenditures 312,479 2,266,156 739,888 - 341,531 944,144
Undesignated - - - 142,417 - -
Total fund balance 429,331 2,266,156 739,888 142,417 341,531 1,002,382
Total liabilities and fund balance $ 637,064 $ 2,375,669 $ 801,563 $ 142,417 $ 372,608 $ 2,269,444
61
EXHIBIT C-1
Permanent
Debt Service Capital Projects Fund
Total
Miscellaneous Nonmajor
Debt Excess 4B Sales Capital Perpetual Governmental
Service Sales Tax Tax Projects Projects Care Funds
$ 416,639 $ 263,972 $ - $ 4,715,151 $ 779,495 $ 10,549,936
108,256 - - - - 213,435
- - 1,771,420 - - 1,771,420
15,047 627,180 - - - 2,729,110
- - - - - 11,024
- - - - - 18,000
- - - - - 3,000
$ 539,942 $ 891,152 $ 1,771,420 $ 4,715,151 $ 779,495 $ 15,295,925
$ - $ - $ 17,375 $ 121,051 $ - $ 350,674
- - 294 - - 91,591
- - - 4,063 - 789,542
- - - - - 117,050
- - - 120,443 - 120,443
- - - 453,302 - 876,224
118,670 - - - - 166,734
118,670 - 17,669 698,859 - 2,512,258
- - 912,504 - - 1,069,594
- - - - - 18,000
421,272 891,152 - - - 1,312,424
- - - - 779,495 779,495
- - 841,247 4,016,292 - 9,461,737
- - - - - 142,417
421,272 891,152 1,753,751 4,016,292 779,495 12,783,667
$ 539,942 $ 891,152 $ 1,771,420 $ 4,715,151 $ 779,495 $ 15,295,925
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2006
Special Revenue
Home
Community Investment Hotel/ Airport Miscellaneous
Development Section 8 Partnership Motel Improvement Special
Block Grant Housing Agreement Tax Grant Revenue
Revenues:
Taxes $ - $ - $ - $ 1,308,820 $ - $ 174
Charges for services 20,782 - - - - 182,895
Fines and forfeitures - - - - - 164,080
Intergovernmental revenue 1,562,696 4,079,410 552,378 - 668,259 2,746,461
Contributions - - - - - 117,193
Miscellaneous revenue 149,052 113,136 60,618 12,792 87,500 500,938
Total revenues 1,732,530 4,192,546 612,996 1,321,612 755,759 3,711,741
Expenditures:
Current:
Administrative services 121,576 - - 116,000 - 263,174
Police - - - - - 694,661
Fire - - - - - 34,146
Parks and recreation - - - - - 325,086
Community development 870,199 3,485,746 383,946 - - 164,434
Public works 150,000 - - - - 81,968
Health 5,153 - - - - 1,786,289
Traffic and transportation - - - - 4,526 155,979
MPEC - - - 1,355,846 - -
Capital outlay 1,446,769 - - - - 347,477
Debt service:
Principal retirement - - - - - -
Interest and paying agent fees - - - - - -
Total expenditures 2,593,697 3,485,746 383,946 1,471,846 4,526 3,853,214
Excess of revenues over
(under)expenditures (861,167) 706,800 229,050 (150,234) 751,233 (141,473)
Other financing sources(uses):
Transfers in - - - - 155,632 81,696
Transfers out - - - (33,547) (786,405) (150,781)
Total other financing sources(uses) - - - (33,547) (630,773) (69,085)
Net change in fund balance (861,167) 706,800 229,050 (183,781) 120,460 (210,558)
Fund balance-beginning 1,290,498 1,559,356 510,838 326,198 221,071 1,212,940
Fund balance-ending $ 429,331 $ 2,266,156 $ 739,888 $ 142,417 $ 341,531 $ 1,002,382
62
EXHIBIT C-2
Permanent
Debt Service Capital Projects Fund
Total
Miscellaneous Nonmajor
Debt Excess 4B Sales Capital Perpetual Governmental
Service Sales Tax Tax Projects Projects Care Funds
$ 1,769,242 $ 627,180 $ - $ - $ - $ 3,705,416
- - - - - 203,677
- - - - - 164,080
- - - - - 9,609,204
1,040,265 - - 1,883,957 - 3,041,415
72,573 33,972 55,252 214,276 94,280 1,394,389
2,882,080 661,152 55,252 2,098,233 94,280 18,118,181
- - - 29,200 - 529,950
- - 47,588 - - 742,249
- - - - - 34,146
- - - - - 325,086
- - - - - 4,904,325
- - - 89,130 - 321,098
- - - - - 1,791,442
- - - - - 160,505
- - - - - 1,355,846
- - 699,550 1,660,870 - 4,154,666
3,190,000 - - - - 3,190,000
690,696 - - 41,225 - 731,921
3,880,696 - 747,138 1,820,425 - 18,241,234
(998,616) 661,152 (691,886) 277,808 94,280 (123,053)
1,017,331 - - - - 1,254,659
- (517,331) - - - (1,488,064)
1,017,331 (517,331) - - - (233,405)
18,715 143,821 (691,886) 277,808 94,280 (356,458)
402,557 747,331 2,445,637 3,738,484 685,215 13,140,125
$ 421,272 $ 891,152 $ 1,753,751 $ 4,016,292 $ 779,495 $ 12,783,667
Wichita
'TEXAS\
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.
Golf Fund
The Golf Fund was established to account for the operating revenues and expenses of the
Weeks Park Golf Course. The operations of the golf course, which include maintenance, the
pro shop and food service, are supported by green and cart fees, and merchandise and food
sales.
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 Drainaae 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, 2006
Municipal Kickapoo
Golf Airport Airport
ASSETS
Current assets:
Cash and cash equivalents $ 3,820 $ 548,802 $ 160,586
Receivables (net of allowance for
uncollectible accounts):
Customer and trade - - -
Government agencies - - -
Other 42 33,438 33,075
Inventory 87,067 - 55,309
Prepaid items 2,547 6,347 2,059
Total current assets 93,476 588,587 251,029
Capital assets, net of accumulated depreciation 66,025 636,869 6,088,402
Total assets 159,501 1,225,456 6,339,431
LIABILITIES
Current liabilities payable from current assets:
Accounts payable -trade 11,625 5,853 43,208
Accrued payroll 18,579 3,987 6,041
Accrued vacation and sick leave 14,188 7,353 4,872
Payable to government agencies 2,578 307 89
Other liabilities 11,080 2,750 57
Total current liabilities payable
from current assets 58,050 20,250 54,267
Net assets:
Invested in capital assets 66,025 636,869 6,088,402
Unrestricted 35,426 568,337 196,762
Total net assets $ 101,451 $ 1,205,206 $ 6,285,164
63
EXHIBIT D-1
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 41,462 $ 2,100,244 $ 2,854,914
122,291 122,291
107,747 - 107,747
66 - 66,621
- - 142,376
105 11,058
149,275 2,222,640 3,305,007
628,235 3,126,100 10,545,631
777,510 5,348,740 13,850,638
5,109 18,465 84,260
27,797 4,165 60,569
16,878 - 43,291
2,974
15,812 29,699
49,784 38,442 220,793
628,235 3,126,100 10,545,631
99,491 2,184,198 3,084,214
$ 727,726 $ 5,310,298 $ 13,629,845
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Municipal Kickapoo
Golf Airport Airport
Operating revenues:
Charges for services $ 546,701 $ - $ 14
Rents, concessions and other 281,354 448,384 347,747
Total operating revenues 828,055 448,384 347,761
Operating expenses:
Personnel services 491,876 71,252 178,015
Supplies and materials 209,279 2,661 5,441
Maintenance and repairs 11,729 34,588 4,701
Utilities and other services 109,589 98,274 81,364
Insurance and contract support 9,890 11,567 14,442
Other expenses 64,228 47,823 36,473
Depreciation and amortization 11,272 55,739 181,335
Total operating expenses 907,863 321,904 501,771
Operating income (loss) (79,808) 126,480 (154,010)
Nonoperating revenues (expenses):
Interest income - 27,012 6,843
Loss on disposal of capital assets - - (107,030)
Intergovernmental operating grants - - -
Total nonoperating revenues (expenses) - 27,012 (100,187)
Income (loss) before transfers (79,808) 153,492 (254,197)
Transfers:
Transfers in 87,558 - 814,405
Transfers out - (127,632) (34,490)
Net transfers 87,558 (127,632) 779,915
Net income (loss) 7,750 25,860 525,718
Net assets - beginning 93,701 1,179,346 5,759,446
Net assets -ending $ 101,451 $ 1,205,206 $ 6,285,164
64
EXHIBIT D-2
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 214,771 $ 1,209,196 $ 1,970,682
- - 1,077,485
214,7-71 1,209,196 3,048,167
701,288 85,679 1,528,110
162,384 39 379,804
162,522 13,534 227,074
152,847 75,578 517,652
45,493 - 81,392
42,736 113,340 304,600
31,365 41,706 321,417
1,298,635 329,876 3,360,049
(1,083,864) 879,320 (311,882)
- 74,740 108,595
- - (107,030)
1,251,770 - 1,251,770
1,251,770 74,740 1,253,335
167,906 954,060 941,453
177,499 - 1,079,462
(375,912) - (538,034)
(198,413) - 541,428
(30,507) 954,060 1,482,881
758,233 4,356,238 12,146,964
$ 727,726 $ 5,310,298 $ 13,629,845
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Municipal Kickapoo
Golf Airport Airport
Cash flows from operating activities:
Receipts from customers and users $ 827,962 $ 449,175 $ 341,278
Payments to suppliers (517,355) (215,675) (161,662)
Payments to employees (394,345) (49,897) (135,672)
Net cash provided (used) by operating activities (83,738) 183,603 43,944
Cash flows from noncapital financing activities:
Intergovernmental operating grants - - -
Transfers out to other funds - (127,632) (34,490)
Transfers from other funds 87,558 - 814,405
Net cash provided (used) by noncapital financing activities 87,558 (127,632) 779,915
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets - (57,603) (786,406)
Net cash provided by (used for) capital
and related financing activities - (57,603) (786,406)
Cash flows from investing activities:
Interest on investments - 27,012 6,843
Net cash provided by investing activities - 27,012 6,843
Net Increase (Decrease) in Cash and Cash Equivalents 3,820 25,380 44,296
Cash and Cash Equivalents- Beginning - 523,422 116,290
Cash and Cash Equivalents- Ending $ 3,820 $ 548,802 $ 160,586
65
EXHIBIT D-3
(Page 1 of 2)
Total
Nonmajor
Stormwater Enterprise
Transit Drainage Funds
$ 214,705 $ 1,185,548 $ 3,018,668
(726,693) (212,795) (1,834,180)
(533,083) (65,261) (1,178,258)
(1,045,071) 907,492 6,230
1,236,263 - 1,236,263
(375,912) - (538,034)
177,499 - 1,079,462
1,037,850 - 1,777,691
(4,840) (99,746) (948,595)
(4,840) (99,746) (948,595)
74,740 108,595
74,740 108,595
(12,061) 882,486 943,921
53,523 1,217,758 1,910,993
$ 41,462 $ 2,100,244 $ 2,854,914
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS(CONT'D.)
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Municipal Kickapoo
Golf Airport Airport
Cash flows from operating activities:
Operating income(loss) $ (79,808) $ 126,480 $ (154,010)
Adjustments to reconcile operating income(loss)
to net cash provided by(used in) operating
activities:
Depreciation and amortization 11,272 55,739 181,335
(Increase)decrease in current assets:
Receivables:
Customer and trade - - -
Other (93) 791 (6,483)
Inventory (6,536) - (22,059)
Prepaid items (388) (3,511) 4,605
Increase (decrease) in current liabilities:
Accounts payable-trade (14,971) (115) 38,691
Accrued payroll 4,640 1,926 2,489
Accrued vacation and sick leave 1,635 868 105
Payable to other City funds (1,763) (123) (471)
Payable to government agencies 133 2,246 34
Other liabilities 2,141 (698) (292)
Total adjustments (3,930) 57,123 197,954
Net cash provided by(used in)
operating activities $ (83,738) $ 183,603 $ 43,944
66
EXHIBIT D-3
(Page 2 of 2)
Stormwater
Transit Drainage Totals
$(1,083,864) $ 879,320 $ (311,882)
31,365 41,706 321,417
(23,648) (23,648)
(66) - (5,851)
(28,595)
(12) 694
(3,037) 6,030 26,598
10,531 1,891 21,477
2,608
(2,357)
2,413
- 2,205 3,356
38,793 28,172 318,112
$(1,045,071) $ 907,492 $ 6,230
. pet e,
,_-. pf)
._:- '
tst
1
Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the City on a cost-reimbursement
basis.
Fleet Maintenance Fund
The Fleet Maintenance Fund accounts for the costs associated with the operation,
maintenance and replacement of the City's vehicle and equipment fleet. City departments
which use the vehicles and equipment are charged a monthly rental fee based upon actual
operating costs associated with each class of vehicle or equipment.
Duplicating Services Fund
The Duplicating Services Fund accounts for the costs associated with the operation and
maintenance of the City's duplicating equipment. City departments which use the duplicating
services are charged a fee based upon actual usage.
Employee Benefit Trust Fund
The Employee Benefit Trust Fund is used to account for and administer group health
insurance, which is self-insured by the City, and life insurance for employees and covered
dependents.
EXHIBIT E-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2006
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
ASSETS
Current assets:
Cash and cash equivalents $ 1,021,911 $ 102,556 $ 1,604,484 $ 2,728,951
Receivables:
Other 23,796 - - 23,796
Inventory 724,959 8,654 - 733,613
Prepaid items - 15,876 150 16,026
Total current assets 1,770,666 127,086 1,604,634 3,502,386
Capital assets, net of accumulated depreciation 14,983,895 71,751 1,728 15,057,374
Total assets 16,754,561 198,837 1,606,362 18,559,760
LIABILITIES
Current liabilities:
Accounts payable-trade 138,668 11,778 24,071 174,517
Accrued payroll 65,021 2,476 5,308 72,805
Accrued vacation and sick leave 47,276 932 - 48,208
Estimated health claims payable - - 331,065 331,065
Total current liabilities 250,965 15,186 360,444 626,595
NET ASSETS
Invested in capital assets 14,983,895 71,751 1,728 15,057,374
Unrestricted 1,519,701 111,900 1,244,190 2,875,791
Total net assets $ 16,503,596 $ 183,651 $ 1,245,918 $ 17,933,165
67
CITY OF WICHITA FALLS, TEXAS EXHIBIT E-2
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Employee
Fleet Duplicating Benefit
P 9
Maintenance Services Trust Totals
Operating revenues:
Charges for services $ 8,836,911 $ 234,359 $ 27,174 $ 9,098,444
Rents,concessions and other 63,064 - 251,697 314,761
Contributions - - 7,423,118 7,423,118
Total operating revenues 8,899,975 234,359 7,701,989 16,836,323
Operating expenses:
Personnel services 1,587,598 72,622 161,412 1,821,632
Supplies and materials 3,312,330 30,309 2,299 3,344,938
Maintenance and repairs 1,785,680 5,433 - 1,791,113
Utilities and other services 132,322 1,339 8,860 142,521
Insurance and contract support 87,114 173 6,174,815 6,262,102
Other expenses 151,034 127,709 589,017 867,760
Depreciation and amortization 2,979,738 8,098 601 2,988,437
Total operating expenses 10,035,816 245,683 6,937,004 17,218,503
Operating income(loss) (1,135,841) (11,324) 764,985 (382,180)
Nonoperating revenues(expenses):
Interest income - - 81,721 81,721
Gain on sale of capital assets 188,474 - - 188,474
Total nonoperating revenues
(expenses) 188,474 - 81,721 270,195
Income(loss) before transfers (947,367) (11,324) 846,706 (111,985)
Transfers:
Transfers in 2,911,502 - - 2,911,502
Transfers out (312,000) - - (312,000)
Total transfers 2,599,502 - - 2,599,502
Net income (loss) 1,652,135 (11,324) 846,706 2,487,517
Net assets-beginning 14,851,461 194,975 399,212 15,445,648
Net assets-ending $ 16,503,596 $ 183,651 $ 1,245,918 $ 17,933,165
68
EXHIBIT E-3
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Employee
Fleet Duplicating Benefit
Maintenance Services Trust Totals
Cash flows from operating activities:
Receipts from customers and users $ 8,898,593 $ 234,359 $ 7,701,989 $ 16,834,941
Payments to suppliers (5,755,419) (160,321) (7,289,369) (13,205,109)
Payments to employees (1,194,473) (52,395) (123,059) (1,369,927)
Net cash provided by operating activities 1,948,701 21,643 289,561 2,259,905
Cash flows from noncapital financing activities:
Transfers in from other funds 2,911,502 - - 2,911,502
Transfers out to other funds (312,000) - - (312,000)
Net cash provided by noncapital financing activities 2,599,502 - - 2,599,502
Cash flows from capital and related
financing activities:
Acquisition of capital assets (4,526,990) - - (4,526,990)
Proceeds from sale of capital assets 254,980 - - 254,980
Net cash used for capital and
related financing activities (4,272,010) - - (4,272,010)
Cash flows from investing activities:
Interest on investments - - 81,721 81,721
Net Increase in Cash and Cash Equivalents 276,193 21,643 371,282 669,118
Cash and Cash Equivalents-Beginning 745,718 80,913 1,233,202 2,059,833
Cash and Cash Equivalents-Ending $ 1,021,911 $ 102,556 $ 1,604,484 $ 2,728,951
Cash flows from operating activities:
Operating income(loss) $ (1,135,841) $ (11,324) $ 764,985 $ (382,180)
Adjustments to reconcile operating income to net
cash provided(used)by operating activities:
Depreciation and amortization 2,979,738 8,098 601 2,988,437
(Increase)decrease in current assets:
Receivables:
Other (1,382) - - (1,382)
Inventory 188,445 668 - 189,113
Prepaid items 351 17,148 - 17,499
Increase(decrease)in current liabilities:
Accounts payable-trade (106,996) 6,223 2,785 (97,988)
Accrued payroll 23,946 649 1,133 25,728
Accrued vacation and sick leave 511 280 - 791
Payable to other City funds (71) (99) (4,722) (4,892)
Estimated health claims payable - - (475,221) (475,221)
Total adjustments 3,084,542 32,967 (475,424) 2,642,085
Net cash provided by
operating activities $ 1,948,701 $ 21,643 $ 289,561 $ 2,259,905
69
WichitahUs
TEXAS
Agency Fund
Escheatment Fund -The agency fund is used to account for assets held by the City of Wichita
Falls in a custodial capacity. The assets in this fund have been abandoned or remain
unclaimed pending escheatment to the State of Texas.
EXHIBIT F-1
CITY OF WICHITA FALLS, TEXAS
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deductions 9/30/2006
ESCHEATMENT FUND
Assets
Cash and cash equivalents $ 39,938 $ 60,478 $ 7,811 $ 92,605
Liabilities
Other liabilities $ 39,938 $ 60,478 $ 7,811 $ 92,605
70
Wichita ''o•
g4.7, A n
Wichitahj
A--
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 48 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/Wichita County Multi-Purpose Events Center
The Wichita Falls/Wichita County Multi-Purpose Events Center (a nonprofit entity) was
established to operate the Multi-Purpose Events Center (Center) for the City. The Center
consists of a Coliseum, an Exhibit Hall, and an Agricultural Complex.
EXHIBIT G-1
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF NET ASSETS
COMPONENT UNITS
SEPTEMBER 30, 2006
Wichita Falls WF/WC
Economic Wichita Falls Wichita Falls Multi-Purpose
Development 4B Sales Tax Reinvestment Events
Corporation Corporation Zone#1 Center Totals
Assets
Cash and cash equivalents $16,481,159 $ 6,427,768 $ 336,032 $ 122,131 $23,367,090
Receivables:
Taxes and assessments - - 27,966 - 27,966
Government agencies 577,031 577,031 - - 1,154,062
Other - - - 97,526 97,526
Inventory - - - 52,522 52,522
Prepaid items - 96,377 - - 96,377
Other assets - - - 9,460 9,460
Capital assets, net of accumulated depreciation 2,434,211 - - 34,043 2,468,254
Total assets 19,492,401 7,101,176 363,998 315,682 27,273,257
Liabilities
Accounts payable-trade 77,815 - 20,000 109,275 207,090
Accrued payroll - - - 56,993 56,993
Payable to primary government - 1,771,420 - 600 1,772,020
Payable to government agencies - - - 9,531 9,531
Other liabilities 56,044 - - 97,040 153,084
Long-term liabilities - - - 57,467 57,467
Total liabilities 133,859 1,771,420 20,000 330,906 2,256,185
Net assets
Investment in capital assets, net of related debt 2,434,211 - - 34,043 2,468,254
Unrestricted 16,924,331 5,329,756 343,998 (49,267) 22,548,818
Total net assets $19,358,542 $ 5,329,756 $ 343,998 $ (15,224) $25,017,072
71
CITY OF WICHITA FALLS, TEXAS
COMBINING STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Program Revenue
Operating
Charges for Grants and
Expenses Services Contributions
Community development
Wichita Falls Economic Development Corporation $ 1,819,025 $ - $ -
Wichita Falls 4B Sales Tax Corporation 1,112,275 - -
Wichita Falls Reinvestment Zone#1 189,500 - -
Total community development 3,120,800 - -
Multi-Purpose Events Center
WF/WC Multi-Purpose Events Center 3,478,545 2,121,798 1,355,846
Total component units $ 6,599,345 $ 2,121,798 $ 1,355,846
General revenues:
Taxes:
Property tax
Sales tax
Investment earnings
Total general revenues
Change in net assets
Net assets- beginning
Net assets-ending
72
EXHIBIT G-2
Net(Expense) Revenue and
Changes in Net Assets
Wichita Falls WF/WC
Economic Wichita Falls Wichita Falls Multi-Purpose
Development 4B Sales Tax Reinvestment Events
Corporation Corporation Zone#1 Center Totals
$ (1,819,025) $ - $ - $ - $ (1,819,025)
(1,112,275) - - (1,112,275)
- - (189,500) - (189,500)
(1,819,025) (1,112,275) (189,500) - (3,120,800)
- - (901) (901)
(1,819,025) (1,112,275) (189,500) (901) (3,121,701)
- - 318,983 - 318,983
3,212,034 3,212,034 - - 6,424,068
737,547 287,478 10,923 - 1,035,948
3,949,581 3,499,512 329,906 - 7,778,999
2,130,556 2,387,237 140,406 (901) 4,657,298
17,227,986 2,942,519 203,592 (14,323) 20,359,774
$ 19,358,542 $ 5,329,756 $ 343,998 $ (15,224) $ 25,017,072
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CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDED DEBT AND INTEREST MATURITIES
SEPTEMBER 30,2006
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)
2007 $ 880,000 $ 387,569 $ 1,267,569 $ 3,852,090 $ 1,202,401 $ 5,054,491 $ 1,763,084
2008 910,000 350,169 1,260,169 4,160,612 1,080,853 5,241,465 1,702,180
2009 945,000 312,631 1,257,631 3,854,464 974,726 4,829,190 1,761,394
2010 745,000 273,650 1,018,650 3,970,730 840,560 4,811,290 1,850,579
2011 340,000 241,987 581,987 4,082,400 739,065 4,821,465 1,919,611
2012 355,000 227,113 582,113 4,208,823 620,087 4,828,910 1,998,606
2013 370,000 210,694 580,694 2,745,112 467,688 3,212,800 3,452,439
2014 385,000 193,581 578,581 2,762,303 442,510 3,204,813 3,630,067
2015 405,000 175,775 580,775 2,888,049 313,118 3,201,167 3,817,567
2016 425,000 154,512 579,512 3,037,350 176,025 3,213,375 4,014,931
2017 450,000 132,200 582,200 375,000 30,025 405,025 4,212,151
2018 475,000 108,013 583,013 385,000 15,400 400,400 4,439,231
2019 500,000 82,481 582,481 - - - 8,136,144
2020 530,000 55,606 585,606 - - - 8,564,874
2021 555,000 28,444 583,444 - - - 9,018,266
2022 - - - - - - 9,456,786
2023 - - - - - - 9,924,985
2024 - - - - - - 10,442,382
2025 - - - - - - 10,989,377
2026 - - - - - - 11,526,453
2027 - - - - - - 4,343,135
$ 8,270,000 $ 2,934,425 $ 11,204,425 $ 36,321,933 $ 6,902,458 $ 43,224,391 $ 116,964,242
(1)Includes amortization of bond premium of$1,596,932.
(2)Includes amortization of bond premium of$1,214,242.
73
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
$ 5,920,529 $ 7,683,613 $ 25,000 $ 359,027 $ 384,027 $ 6,520,174 $ 7,869,526 $ 14,389,700
5,847,841 7,550,021 25,000 358,041 383,041 6,797,792 7,636,904 14,434,696
5,782,781 7,544,175 25,000 357,044 382,044 6,585,858 7,427,182 14,013,040
5,715,176 7,565,755 25,000 356,021 381,021 6,591,309 7,185,407 13,776,716
5,636,226 7,555,837 25,000 354,974 379,974 6,367,011 6,972,252 13,339,263
5,553,869 7,552,475 25,000 353,902 378,902 6,587,429 6,754,971 13,342,400
5,459,546 8,911,985 325,000 352,804 677,804 6,892,551 6,490,732 13,383,283
5,280,780 8,910,847 310,000 338,374 648,374 7,087,370 6,255,245 13,342,615
5,092,463 8,910,030 300,000 324,455 624,455 7,410,616 5,905,811 13,316,427
4,893,706 8,908,637 275,000 310,835 585,835 7,752,281 5,535,078 13,287,359
4,684,400 8,896,551 3,180,000 298,350 3,478,350 8,217,151 5,144,975 13,362,126
4,464,494 8,903,725 3,320,000 152,388 3,472,388 8,619,231 4,740,295 13,359,526
4,232,338 12,368,482 - - - 8,636,144 4,314,819 12,950,963
3,798,306 12,363,180 - - - 9,094,874 3,853,912 12,948,786
3,340,894 12,359,160 - - 9,573,266 3,369,338 12,942,604
2,892,394 12,349,180 - - - 9,456,786 2,892,394 12,349,180
2,421,644 12,346,629 - - - 9,924,985 2,421,644 12,346,629
1,895,336 12,337,718 - - - 10,442,382 1,895,336 12,337,718
1,341,250 12,330,627 - - - 10,989,377 1,341,250 12,330,627
792,750 12,319,203 - - - 11,526,453 792,750 12,319,203
217,000 4,560,135 - - - 4,343,135 217,000 4,560,135
$ 85,263,723 $ 202,227,965 $ 7,860,000 $ 3,916,215 $ 11,776,215 $ 169,416,175 $ 99,016,821 $ 268,432,996
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE
SEPTEMBER 30,2006
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)
74
EXHIBIT H-2
(Page 1 of 4)
Bonds
Retired or
Authorized Issued Refunded Outstanding
$ 10,205,000 $ 10,205,000 $ 1,935,000 $ 8,270,000
10,205,000 10,205,000 1,935,000 8,270,000
7,550,000 7,550,000 2,190,000 5,360,000
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.)
SEPTEMBER 30,2006
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
Total Combination Tax and Revenue Bonds
75
EXHIBIT H-2
(Page 2 of 4)
Bonds
Retired or
Authorized Issued Refunded Outstanding
18,840,000 18,840,000 1,325,000 17,515,000
1,060,889 344,638 716,251
14,020,000 14,020,000 2,170,000 11,850,000
1,050,891 170,209 880,682
40,410,000 42,521,780 6,199,847 36,321,933
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.)
SEPTEMBER 30, 2006
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 08/01/27 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)
3,055,000 (2013)
3,220,000 (2014)
3,395,000 (2015)
3,580,000 (2016)
3,760,000 (2017)
3,975,000 (2018)
8,075,000 (2019)
8,510,000 (2020)
8,970,000 (2021)
9,415,000 (2022)
9,890,000 (2023)
10,415,000 (2024)
10,970,000 (2025)
11,515,000 (2026)
4,340,000 (2027)
Water and Sewer System
Priority Lien Revenue
Bonds,Series 2001 -Premium
Total Priority Lien Revenue Bonds
76
EXHIBIT H-2
(Page 3 of 4)
Bonds
Retired or
Authorized Issued Refunded Outstanding
5,500,000 5,500,000 1,685,000 3,815,000
118,770,000 118,770,000 6,835,000 111,935,000
1,634,193 419,951 1,214,242
124,270,000 125,904,193 8,939,951 116,964,242
CITY OF WICHITA FALLS, TEXAS
COMBINED SCHEDULE OF BONDS PAYABLE(CONT'D.)
SEPTEMBER 30, 2006
Final
Interest Rates Issue Maturity Annual
and(Dates) Date Date Serial Payments
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)
310,000 (2014)
300,000 (2015)
275,000 (2016)
3,180,000 (2017)
3,320,000 (2018)
Total Subordinate Lien Bonds
Total Revenue Bonds
Total All Bonds
77
EXHIBIT H-2
(Page 4 of 4)
Bonds
Retired or
Authorized Issued Refunded Outstanding
8,060,000 8,060,000 200,000 7,860,000
8,060,000 8,060,000 200,000 7,860,000
132,330,000 133,964,193 9,139,951 124,824,242
$ 182,945,000 $ 186,690,973 $ 17,274,798 $ 169,416,175
Wichita
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EXA
EXHIBIT H-3
CITY OF WICHITA FALLS, TEXAS
DEBT SERVICE COVERAGE - REVENUE BONDS
SEPTEMBER 30, 2006
Water and Sewer Revenue Bonds:
Change in net assets (Exhibit A-8) $10,180,896
Add:
Depreciation and amortization $ 3,360,170
Interest expense and paying agent fees 6,968,644
Transfers out 1,187,636 11,516,450
Subtract:
West Texas Utilities water revenues •
460,238
Gain on sale/abandonment of capital assets 946
Capital contributions from developers 687,461
Transfers in - (1,148,645)
Net earnings for determining debt service coverage $20,548,701
Priority Subordinate
Lien Bonds Lien Bonds
Net earnings for determining debt service coverage $20,548,701
Principal and interest requirements to maturity $ 202,227,965 $11,776,215
Number of years remaining to pay bonds 21 12
Average annual principal and interest requirement 9,629,903 981,351
Minimum bond covenant debt service coverage 1.25 1.10
Minimum debt service coverage requirement $ 12,037,379 $ 1,079,486 13,116,865
Excess over debt service coverage requirements $ 7,431,836
78
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2006
Buildings Machinery
Land and and and
Betterments Improvements Equipment
Administrative services:
Mayor and City Council $ - $ 3,797 $ 1,376
City Manager 1,062,849 336,872 49,516
Personnel/Risk Management - - 15,152
Martin Luther King Center - 349,839 7,641
Library 477,942 4,523,930 644,703
General Public Information - - 320,113
Building Maintenance - 1,076,622 35,376
Nondepartmental - 518,881 181,299
Municipal Court 230,000 316,527 201,006
Legal - - 2,254
City Clerk - - 6,700
Homeland security - - 422,811
Total administrative services 1,770,791 7,126,468 1,887,947
Police 1,122,584 6,067,418 10,587,238
Fire 252,459 5,710,267 322,025
Parks and recreation:
Recreation 655,246 1,903,345 277,105
Park maintenance 8,946,251 1,031,596 67,851
Cemetery 20,200 - 11,115
Total parks and recreation 9,621,697 2,934,941 356,071
Accounting/finance:
Accounting/finance - - 13,265
Information Systems - - 2,105,227
Total accounting/finance - - 2,118,492
Community development:
Planning - - 78,448
Inspection - - 42,930
Code enforcement - - 67,568
Property management 1,161,884 420,891 73,881
Lake lot administration - - 1,018
Weed and Seed program - - 14,073
Total community development 1,161,884 420,891 277,918
Public works:
Engineering 125,806 29,665 148,275
Street maintenance 28,547 86,373 24,269
Infrastructure - - -
Total public works 154,353 116,038 172,544
Health:
Administration 34,820 2,857,894 395,133
General City nursing 76,411 1,123 96,599
Environmental health - - 30,014
Lab water pollution - - 43,285
Total health 111,231 2,859,017 565,031
Traffic and transportation - 31,045 122,526
Multi-Purpose Events Center 9,277,513 33,947,462 354,864
Wichita Falls Business Park - - -
Total capital assets used in the operation of governmental funds $ 23,472,512 $ 59,213,547 $ 16,764,656
79
EXHIBIT H-4
Motor
Furniture Vehicles
and and Construction
Fixtures Equipment Infrastructure in Progress Totals
$ 5,218 $ - $ - $ - $ 10,391
15,050 - - - 1,464,287
3,425 - - - 18,577
12,486 - - - 369,966
90,579 - - - 5,737,154
3,184 - - - 323,297
- - - 1,111,998
- - - 700,180
4,043 - - - 751,576
- - - - 2,254
- - - - 6,700
- - - 422,811
133,985 - - - 10,919,191
11,788 - - 1,870,192 19,659,220
1,755 - - - 6,286,506
12,818 - - - 2,848,514
- - - - 10,045,698
- - - - 31,315
12,818 - - - 12,925,527
- - - - 13,265
- - - - 2,105,227
- - - - 2,118,492
1,025 - - - 79,473
- - - - 42,930
- - - - 67,568
-
31,485 - - 1,688,141
- - - - 1,018
- - - - 14,073
1,025 31,485 - - 1,893,203
3,355 - - - 307,101
1,393 - - - 140,582
- - 134,204,425 - 134,204,425
4,748 - 134,204,425 - 134,652,108
21,835 - - 22,139 3,331,821
5,447 - - - 179,580
- - - - 30,014
- - - - 43,285
27,282 - - 22,139 3,584,700
- - 6,548,555 1,044,237 7,746,363
28,288 - - - 43,608,127
- - - 870,696 870,696
$ 221,689 $ 31,485 $ 140,752,980 $ 3,807,264 $ 244,264,133
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 30,2006
Beginning Ending
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Administrative services:
Mayor and City Council $ 11,916 $ - $ 1,525 $ 10,391
City Manager 1,464,287 - - 1,464,287
Personnel/Risk Management 17,461 1,116 - 18,577
Martin Luther King Center 369,966 - - 369,966
Library 5,745,496 9,762 18,104 5,737,154
General Public Information 297,182 26,115 - 323,297
Building Maintenance 1,108,989 3,009 - 1,111,998
Nondepartmental 700,180 - - 700,180
Municipal Court 743,527 9,553 1,504 751,576
Legal 2,254 - - 2,254
City Clerk 6,700 - - 6,700
Homeland security 245,776 177,035 - 422,811
Total administrative services 10,713,734 226,590 21,133 10,919,191
Police 18,891,104 775,214 7,098 19,659,220
Fire 6,284,206 2,300 - 6,286,506
Parks and recreation:
Recreation 2,839,594 8,920 - 2,848,514
Park maintenance 10,030,553 15,145 - 10,045,698
Cemetery 31,315 - - 31,315
Total parks and recreation 12,901,462 24,065 - 12,925,527
Accounting/finance:
Accounting/finance 13,265 - - 13,265
Information Systems 1,978,549 136,702 10,024 2,105,227
Total accounting/finance 1,991,814 136,702 10,024 2,118,492
Community development:
Planning 81,695 1,065 3,287 79,473
Inspection 41,588 1,342 - 42,930
Code enforcement 73,892 - 6,324 67,568
Property management 1,673,756 16,493 2,108 1,688,141
Lake lot administration 1,018 - - 1,018
Weed and Seed program 14,073 - - 14,073
Total community development 1,886,022 18,900 11,719 1,893,203
Public works:
Engineering 287,073 20,028 - 307,101
Street maintenance 140,582 - - 140,582
Infrastructure 130,519,900 3,684,525 - 134,204,425
Total public works 130,947,555 3,704,553 - 134,652,108
Health:
Administration 1,805,761 1,527,899 1,839 3,331,821
General city nursing 177,727 1,853 - 179,580
Environmental health 30,014 - - 30,014
Lab water pollution 41,646 1,639 - 43,285
Total health 2,055,148 1,531,391 1,839 3,584,700
Traffic and transportation 7,667,196 197,207 118,040 7,746,363
Multi-Purpose Events Center 43,608,127 - - 43,608,127
Wichita Falls Business Park 204,892 665,804 - 870,696
Total capital assets $ 237,151,260 $ 7,282,726 $ 169,853 $ 244,264,133
80
EXHIBIT H-6
CITY OF WICHITA FALLS, TEXAS
GOLF FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Land and betterments $ 48,019 $ - $ - $ 48,019
Buildings and improvements 16,861 - - 16,861
Machinery and equipment 86,936 - - 86,936
Furniture and fixtures 3,175 - - 3,175
Total capital assets 154,991 - - 154,991
Accumulated Depreciation:
Land and betterments 6,151 1,921 - 8,072
Buildings and improvements 7,324 1,134 - 8,458
Machinery and equipment 61,521 7,900 - 69,421
Furniture and fixtures 2,699 317 - 3,016
Total accumulated depreciation 77,695 11,272 - 88,967
Net capital assets $ 77,296 $ (11,272) $ - $ 66,024
81
EXHIBIT H-7
CITY OF WICHITA FALLS, TEXAS
MUNICIPAL AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Land and betterments $ 1,461,823 $ - $ - $1,461,823
Buildings and improvements 1,495,194 54,718 - 1,549,912
Machinery and equipment 32,452 2,885 - 35,337
Furniture and fixtures 36,705 - - 36,705
Total capital assets 3,026,174 57,603 - 3,083,777
Accumulated Depreciation:
Land and betterments 1,428,975 19,567 - 1,448,542
Buildings and improvements 928,492 30,249 - 958,741
Machinery and equipment 15,905 2,468 - 18,373
Furniture and fixtures 17,798 3,454 - 21,252
Total accumulated depreciation 2,391,170 55,738 - 2,446,908
Net capital assets $ 635,004 $ 1,865 $ - $ 636,869
82
EXHIBIT H-8
CITY OF WICHITA FALLS, TEXAS
KICKAPOO AIRPORT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Land and betterments $4,386,316 $ 1,116,511 $ 178,383 $ 5,324,444
Buildings and improvements 385,377 - - 385,377
Machinery and equipment 507,836 - - 507,836
Construction in progress 549,515 786,405 1,116,511 219,409
Total capital assets 5,829,044 1,902,916 1,294,894 6,437,066
Accumulated Depreciation:
Land and betterments 154,671 144,523 71,353 227,841
Buildings and improvements 63,242 11,525 - 74,767
Machinery and equipment 20,768 25,288 - 46,056
Total accumulated depreciation 238,681 181,336 71,353 348,664
Net capital assets $5,590,363 $ 1,721,580 $1,223,541 $ 6,088,402
83
EXHIBIT H-9
CITY OF WICHITA FALLS, TEXAS
TRANSIT FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Land and betterments $ 61,925 $ - $ - $ 61,925
Buildings and improvements 626,868 - - 626,868
Machinery and equipment 221,072 4,840 - 225,912
Furniture and fixtures 1,152 - - 1,152
Total capital assets 911,017 4,840 - 915,857
Accumulated Depreciation:
Buildings and improvements 171,263 7,729 - 178,992
Machinery and equipment 83,842 23,636 - 107,478
Furniture and fixtures 1,152 - - 1,152
Total accumulated depreciation 256,257 31,365 - 287,622
Net capital assets $ 654,760 $ (26,525) $ - $ 628,235
84
EXHIBIT H-10
CITY OF WICHITA FALLS, TEXAS
STORMWATER DRAINAGE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Drainage $2,564,877 $ 32,128 $ - $2,597,005
Machinery and equipment 71,399 - - 71,399
Construction in progress 468,431 67,618 - 536,049
Total capital assets 3,104,707 99,746 - 3,204,453
Accumulated Depreciation:
Drainage 19,546 31,965 - 51,511
Machinery and equipment 17,101 9,741 - 26,842
Total accumulated depreciation 36,647 41,706 - 78,353
Net capital assets $3,068,060 $ 58,040 $ - $3,126,100
85
EXHIBIT H-11
CITY OF WICHITA FALLS, TEXAS
SANITATION FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Land and betterments $2,368,313 $ 346,908 $ - $2,715,221
Buildings and improvements 2,370,382 - - 2,370,382
Machinery and equipment 161,358 30,205 - 191,563
Construction in progress 1,029,335 65,850 - 1,095,185
Total capital assets 5,929,388 442,963 - 6,372,351
Accumulated Depreciation:
Land and betterments 104,880 26,234 - 131,114
Buildings and improvements 1,125,072 49,867 - 1,174,939
Machinery and equipment 98,365 13,090 - 111,455
Total accumulated depreciation 1,328,317 89,191 - 1,417,508
Net capital assets $4,601,071 $ 353,772 $ - $4,954,843
86
EXHIBIT H-12
CITY OF WICHITA FALLS, TEXAS
WATER AND SEWER FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Land and betterments $ 24,088,689 $ 257,301 $ - $ 24,345,990
Buildings, systems and
improvements 145,698,934 13,272,235 147,000 158,824,169
Machinery and equipment 4,314,235 120,306 25,174 4,409,367
Furniture and fixtures 1,164 - - 1,164
Motor vehicles 1,235 - - 1,235
Construction in progress 47,627,746 20,534,602 10,026,881 58,135,467
Total capital assets 221,732,003 34,184,444 10,199,055 245,717,392
Accumulated Depreciation:
Land and betterments 8,360,928 243,632 - 8,604,560
Buildings, systems and
improvements 60,742,527 2,811,218 147,000 63,406,745
Machinery and equipment 2,965,152 159,367 9,974 3,114,545
Furniture and fixtures 960 58 - 1,018
Motor vehicles 1,235 - - 1,235
Total accumulated depreciation 72,070,802 3,214,275 156,974 75,128,103
Net capital assets $149,661,201 $ 30,970,169 $10,042,081 $170,589,289
87
EXHIBIT H-13
CITY OF WICHITA FALLS, TEXAS
FLEET MAINTENANCE FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Land and betterments $ 433,658 $ - $ - $ 433,658
Buildings and improvements 4,010,098 14,562 - 4,024,660
Machinery and equipment 503,230 34,299 - 537,529
Furniture and fixtures 6,358 - - 6,358
Motor vehicles 35,129,954 4,420,229 1,327,456 38,222,727
Construction in progress 6,706 - - 6,706
Total capital assets 40,090,004 4,469,090 1,327,456 43,231,638
Accumulated Depreciation:
Buildings and improvements 1,571,820 80,543 - 1,652,363
Machinery and equipment 451,485 13,242 - 464,727
Furniture and fixtures 6,357 - - 6,357
Motor vehicles and equipment 24,554,921 2,885,953 1,316,578 26,124,296
Total accumulated depreciation 26,584,583 2,979,738 1,316,578 28,247,743
Net capital assets $ 13,505,421 $ 1,489,352 $ 10,878 $ 14,983,895
88
EXHIBIT H-14
CITY OF WICHITA FALLS, TEXAS
DUPLICATING SERVICES FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Machinery and equipment $ 126,395 $ - $ - $ 126,395
Accumulated Depreciation:
Machinery and equipment 46,546 8,098 - 54,644
Net capital assets $ 79,849 $ (8,098) $ - $ 71,751
89
EXHIBIT H-15
CITY OF WICHITA FALLS, TEXAS
EMPLOYEE BENEFIT TRUST FUND
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Machinery and equipment $ 3,693 $ - $ - $ 3,693
Accumulated Depreciation:
Machinery and equipment 1,364 601 - 1,965
Net capital assets $ 2,329 $ (601) $ - $ 1,728
90
EXHIBIT H-16
CITY OF WICHITA FALLS, TEXAS
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
CAPITAL ASSETS AND ACCUMULATED DEPRECIATION
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Balance Balance
10/1/2005 Additions Deletions 9/30/2006
Capital Assets:
Land and betterments $ 1,229,679 $ 256,913 $ - $ 1,486,592
Buildings and improvements - 957,191 - 957,191
Total capital assets 1,229,679 1,214,104 - 2,443,783
Accumulated Depreciation:
Buildings and improvements - 9,572 - 9,572
Net capital assets $ 1,229,679 $ 1,204,532 $ - $ 2,434,211
91
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EXHIBIT I-1
CITY OF WICHITA FALLS, TEXAS
NET ASSETS BY COMPONENT
LAST FOUR FISCAL YEARS (UNAUDITED)
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006
Governmental activities
Invested in capital assets, net of related debt $ 64,632,911 $ 90,045,882 $ 127,366,654 $ 132,958,014
Restricted 597,966 626,256 1,200,845 1,373,786
Unrestricted 16,561,287 25,286,103 20,500,308 20,689,055
Total governmental activities net assets $ 81,792,164 $ 115,958,241 $ 149,067,807 $ 155,020,855
Business-type activities
Invested in capital assets,net of related debt $ 89,683,262 $ 99,419,642 $ 112,568,870 $ 120,263,391
Restricted 15,483,121 15,436,872 15,679,474 16,234,804
Unrestricted 14,109,004 10,631,269 7,698,134 11,962,104
Total business-type activities net assets $ 119,275,387 $ 125,487,783 $ 135,946,478 $ 148,460,299
Primary government
Invested in capital assets, net of related debt $ 154,316,173 $ 189,465,524 $ 239,935,524 $ 253,221,405
Restricted 16,081,087 16,063,128 16,880,319 17,608,590
Unrestricted 30,670,291 35,917,372 28,198,442 32,651,159
Total primary government net assets $ 201,067,551 $ 241,446,024 $ 285,014,285 $ 303,481,154
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
92
EXHIBIT 1-2
(Page 1 of 2)
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET ASSETS
LAST FOUR FISCAL YEARS(UNAUDITED)
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006
Expenses
Governmental activities:
Administrative services $ 9,816,232 $ 9,524,291 $ 9,174,786 $ 10,648,044
Police 16,082,473 16,283,542 17,107,502 17,733,480
Fire 9,742,147 10,058,363 10,337,851 10,825,964
Parks and recreation 4,112,071 4,164,247 4,220,079 4,210,463
Accounting/finance 1,721,239 1,851,988 1,841,475 1,843,810
Community development 7,536,269 7,897,167 7,181,397 6,293,156
Public works 5,627,020 6,404,132 6,742,355 7,706,209
Health 4,632,486 4,523,907 4,435,702 4,409,374
Traffic and transportation 2,138,240 1,983,322 2,181,799 2,527,270
MPEC 622,406 1,589,670 2,015,329 2,166,331
Interest and fees on long-term debt 905,959 921,705 843,358 721,762
Total governmental activities expenses 62,936,542 65,202,334 66,081,633 69,085,863
Business-type activities:
Golf 747,356 760,705 779,151 901,454
Municipal Airport 220,970 250,807 243,414 281,117
Kickapoo Airport 295,987 338,957 377,299 574,929
Transit 1,101,145 1,028,491 1,240,131 1,280,540
Sanitation 7,087,574 7,418,146 7,715,572 8,059,991
Water and Sewer 25,076,194 24,721,561 25,604,413 26,380,183
Stormwater drainage 10,633 112,082 125,989 328,833
Total business-type activities expenses 34,539,859 34,630,749 36,085,969 37,807,047
Total primary government expenses $ 97,476,401 $ 99,833,083 $ 102,167,602 $ 106,892,910
Program Revenues
Governmental activities:
Charges for services:
Administrative services $ 3,259,315 $ 3,631,020 $ 3,640,715 $ 3,691,411
Police 401,168 372,510 361,201 402,583
Fire 2,062 3,233 1,458 5,195
Parks and recreation 513,109 479,204 455,861 473,121
Community development 771,418 1,265,897 1,078,293 1,195,203
Public works - - - 48,871
Health 590,441 668,491 711,399 807,002
Traffic and transportation 202,392 214,266 195,585 292,234
Operating grants and contributions 9,469,723 11,968,460 14,734,689 11,109,618
Capital grants and contributions 2,608,168 6,970,138 1,176,107 2,667,389
Total governmental activities program revenues 17,817,796 25,573,219 22,355,308 20,692,627
93
EXHIBIT 1-2
(Page 2 of 2)
CITY OF WICHITA FALLS, TEXAS
CHANGES IN NET ASSETS(CONT'D.)
LAST FOUR FISCAL YEARS (UNAUDITED)
Fiscal Year
2002-2003 2003-2004 2004-2005 2005-2006
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
Kickapoo Airport 348,512 385,871 270,194 347,761
Transit 160,749 194,388 162,018 214,771
Sanitation 8,783,064 8,920,801 9,133,955 9,517,673
Water and Sewer 28,488,384 27,857,286 30,208,286 33,436,585
Stomiwater drainage 1,035,683 1,036,450 1,042,278 1,209,196
Operating grants and contributions 817,451 937,025 926,088 1,251,770
Capital grants and contributions 879,222 376,437 862,398 455,217
Total business-type activities program revenues 41,559,224 40,802,329 43,674,039 47,709,412
Total primary government program revenues $ 59,377,020 $ 66,375,548 $ 66,029,347 $ 68,402,039
Net(Expense)/Revenue •
Governmental activities $ (45,118,746) $ (39,629,115) $ (43,726,325) $ (48,393,236)
Business-type activities 7,019,365 6,171,580 7,588,070 9,902,365
Total primary government net expense $ (38,099,381) $ (33,457,535) $ (36,138,255) $ (38,490,871)
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
Sales tax 16,598,733 17,192,703 17,845,505 19,272,204
Franchise fees 5,286,038 5,218,860 5,191,741 5,740,202
Hotel occupancy tax 1,221,620 1,278,102 1,262,518 1,333,747
Beverage tax 196,663 202,841 204,727 234,075
Bingo tax 230,280 209,825 164,128 178,666
Investment earnings 404,146 379,150 754,935 1,409,188
Gain(loss)on sale of capital assets 3,045 (24,061) - -
Miscellaneous 309,168 482,908 166,648 172,500
Transfers 5,748,106 2,241,628 473,644 2,482,958
Total governmental activities 50,888,763 48,586,813 48,642,634 54,346,286
Business-type activities:
Investment earnings 2,238,809 1,764,311 3,417,875 5,094,418
Special items 1,167,155 518,133 (73,611) -
Transfers 3 698 431) (2,241,628) (473 644) (2,482,958
Total business-type activities (292,467) 40,816 2,870,620 2,611,460
Total primary government $ 50,596,296 $ 48,627,629 $ 51,513,254 $ 56,957,746
Change in Net Assets
Governmental activities $ 5,770,017 $ 8,957,698 $ 4,916,309 $ 5,953,050
Business-type activities 6,726,898 6,212,396 10,458,690 12,513,825
Total primary government $ 12,496,915 $ 15,170,094 $ 15,374,999 $ 18,466,875
94
CITY OF WICHITA FALLS, TEXAS
FUND BALANCES,GOVERNMENTAL FUNDS-
LAST TEN FISCAL YEARS (UNAUDITED)
1996-1997 1997-1998 1998-1999 1999-2000
General Fund
Reserved $ 4,376,470 $ 1,668,836 $ 1,293,074 $ 468,513
Unreserved 8,722,687 10,420,831 10,213,293 9,787,838
Total general fund $ 13,099,157 $ 12,089,667 $ 11,506,367 $ 10,256,351
All other Governmental Funds
Reserved $ 4,841,080 $ 1,780,037 $ 2,470,672 $ 2,174,801
Unreserved, reported in:
Special revenue funds 4,576,761 4,461,023 4,390,321 4,601,572
Capital projects funds 1,144,548 4,326,105 7,796,760 5,557,493
Total all other governmental funds $ 10,562,389 $ 10,567,165 $ 14,657,753 $ 12,333,866
95
EXHIBIT 1-3
Fiscal Year
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006
$ 1,328,430 $ 685,011 $ 1,914,615 $ 1,516,079 $ 2,439,595 $ 2,393,129
8,750,034 8,367,731 8,368,357 9,507,595 10,608,472 11,503,795
$ 10,078,464 $ 9,052,742 $ 10,282,972 $ 11,023,674 $ 13,048,067 $ 13,896,924
$ 1,853,775 $ 1,937,961 $ 3,240,727 $ 11,092,483 $ 5,102,543 $ 3,179,513
4,485,021 5,769,119 4,163,834 4,673,755 4,299,100 4,746,615
19,496,303 7,064,161 3,205,633 3,394,688 3,738,484 4,857,539
$ 25,835,099 $ 14,771,241 $ 10,610,194 $ 19,160,926 $ 13,140,127 $ 12,783,667
CITY OF WICHITA FALLS, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS -
LAST TEN FISCAL YEARS (UNAUDITED)
1996-1997 1997-1998 1998-1999 1999-2000
Revenues
Taxes $ 34,470,725 $ 35,942,790 $ 37,161,615 $ 40,069,102
Charges for services 1,641,506 2,098,408 2,309,728 1,763,969
Licenses and permits 673,422 435,572 535,989 660,715
Fines and forfeitures 1,604,994 1,692,722 1,268,941 1,551,929
Intergovernmental revenue 7,067,716 7,824,216 7,355,808 9,442,324
Contributions 3,675,521 376,228 106,902 88,612
Miscellaneous revenue 2,449,310 2,392,793 2,465,570 2,700,040
Total revenues 51,583,194 50,762,729 51,204,553 56,276,691
Expenditures
Administrative services 18,494,940 6,993,406 7,430,191 8,020,057
Police 11,670,629 12,007,525 12,535,741 13,944,759
Fire 6,979,178 7,575,584 7,881,872 8,389,594
Parks and recreation 3,201,188 3,392,125 3,312,665 4,025,279
Accounting/finance 283,958 1,141,181 1,300,773 1,331,432
Community development 549,654 5,701,686 5,474,886 5,518,983
Public works 5,131,490 6,444,668 5,276,132 6,048,016
Health 3,603,139 3,743,887 4,006,009 3,687,213
Traffic and transportation 1,449,844 1,829,116 1,723,929 1,768,336
MPEC Coliseum - - - -
Capital outlay 2,743,167 2,413,607 753,120 3,809,884
Debt service- principal 1,235,000 1,472,149 1,537,350 1,612,677
Debt service-interest 1,091,151 1,037,896 939,934 866,006
Total expenditures 56,433,338 53,752,830 52,172,602 59,022,236
Excess of revenues over(under)
expenditures (4,850,144) (2,990,101) (968,049) (2,745,545)
Other Financing Sources (Uses)
Transfers in 1,879,230 2,051,424 5,499,480 2,688,753
Transfer out (409,814) (418,669) (982,275) (3,031,155)
Proceeds from general obligation bonds - - - -
Payment to refunded bonds escrow agent - - - -
Total other financing sources (uses) 1,469,416 1,632,755 4,517,205 (342,402)
Net change in fund balances $ (3,380,728) $ (1,357,346) $ 3,549,156 $ (3,087,947)
Debt service as a percentage of
noncapital expenditures 4.33% 4.89% 4.82% 4.49%
96
EXHIBIT 1-4
Fiscal Year
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006
$ 40,422,984 $ 41,798,664 $ 44,425,106 $ 45,512,949 $ 47,236,518 $ 50,228,509
1,825,170 2,153,223 2,338,678 2,452,353 2,480,148 2,597,044
1,892,099 1,918,690 2,001,117 2,292,695 2,218,119 2,206,023
1,404,205 1,797,795 1,773,449 2,189,001 2,161,782 2,481,816
8,207,044 9,000,057 9,469,723 11,444,840 13,003,816 9,682,237
3,451,239 837,213 2,698,930 7,493,758 2,906,980 4,094,770
2,906,992 1,833,247 1,539,063 2,007,303 1,985,383 2,816,865
60,109,733 59,338,889 64,246,066 73,392,899 71,992,746 74,107,264
8,592,476 8,491,188 9,169,430 9,330,631 8,701,521 10,103,642
14,062,836 14,716,145 15,586,666 15,996,964 16,731,373 17,228,066
8,447,773 9,084,534 9,456,869 9,851,203 10,196,605 10,739,651
3,626,134 3,821,791 3,920,357 4,016,394 4,106,476 4,110,013
1,489,661 1,702,554 1,604,484 1,757,006 1,754,186 1,765,350
5,635,484 5,970,759 7,569,296 8,137,672 7,282,012 6,355,136
4,760,212 6,204,297 5,311,740 4,488,704 4,653,539 5,128,384
3,872,347 4,146,598 4,513,769 4,452,507 4,391,270 4,407,758
1,778,879 2,261,335 1,923,176 1,768,336 1,937,424 2,309,854
- - 57,848 783,244 1,205,153 1,355,846
4,852,858 13,910,949 10,333,520 8,235,652 10,171,128 7,244,115
1,690,000 1,805,000 2,120,000 2,970,000 3,050,000 3,190,000
875,128 1,181,524 924,557 900,526 852,624 731,921
59,683,788 73,296,674 72,491,712 72,688,839 75,033,311 74,669,736
425,945 (13,957,785) (8,245,646) 704,060 (3,040,565) (562,472)
14,439,112 3,450,446 6,805,264 7,142,007 6,922,585 3,282,459
(9,310,328) (1,436,580) (2,437,133) (6,393,643) (7,878,421) (2,227,586)
10,218,670 - 2,450,000 7,549,000 - -
(3,025,400) - (2,450,000) - -
12,322,054 2,013,866 4,368,131 8,297,364 (955,836) 1,054,873
$ 12,747,999 $(11,943,919) $ (3,877,515) $ 9,001,424 $ (3,996,401) $ 492,401
4.68% 5.03% 4.90% 6.01% 6.02% 5.82%
\ VX43
tr4lIf3IM
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
1996-1997 $18,856,292 $ 9,191,016 $ 5,197,123 $ 849,930 $ 172,690 $ 184,182 $34,451,233
1997-1998 15,139,681 14,280,125 5,243,568 916,330 171,350 191,736 35,942,790
1998-1999 15,793,043 14,567,316 5,422,604 1,026,786 166,792 181,553 37,158,094
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
97
CITY OF WICHITA FALLS, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY -
LAST TEN FISCAL YEARS (UNAUDITED)
Real Property Personal Property
Fiscal Assessed Estimated Assessed Estimated
Year Value Actual Value Value Actual Value
1996-1997 $ 2,053,175,337 $2,053,175,337 $530,055,655 $ 530,055,655
1997-1998 2,145,423,750 2,145,423,750 554,851,453 554,851,453
1998-1999 2,237,301,030 2,237,301,030 595,201,382 595,201,382
1999-2000 2,448,370,999 2,448,370,999 605,524,662 605,524,662
2000-2001 2,550,564,079 2,550,564,079 622,493,821 622,493,821
2001-2002 2,671,429,859 2,671,429,859 667,334,298 667,334,298
2002-2003 2,775,175,780 2,775,175,780 652,625,915 652,625,915
2003-2004 2,901,708,013 2,901,708,013 629,284,576 629,284,576
2004-2005 3,047,463,928 3,047,463,928 632,056,253 632,056,253
2005-2006 2,992,717,987 2,992,717,987 726,512,178 726,512,178
•
98
EXHIBIT I-6
Ratio of Total
Total Assessed to
Assessed Estimated Total Estimated
Value Actual Value Actual Value
$2,583,230,992 $ 2,583,230,992 100.00%
2,700,275,203 2,700,275,203 100.00%
2,832,502,412 2,832,502,412 100.00%
3,053,895,661 3,053,895,661 100.00%
3,173,057,900 3,173,057,900 100.00%
3,338,764,157 3,338,764,157 100.00%
3,427,801,695 3,427,801,695 100.00%
3,530,992,589 3,530,992,589 100.00%
3,679,520,181 3,679,520,181 100.00%
3,719,230,165 3,719,230,165 100.00%
EXHIBIT 1-7
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES-
LAST TEN FISCAL YEARS (UNAUDITED)
Fiscal Cityof Wichita Burkburnett CityView 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
1996-1997 $ 0.67 $ 0.37 $ 1.25 $ 1.26 $ - $ 1.38 $ 4.93
1997-1998 0.51 0.38 1.30 1.34 1.25 1.46 6.24
1998-1999 0.51 0.38 1.49 1.41 1.30 1.50 6.59
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 1.73 1.58 1.56 7.55
Notes:
(1) Burkburnett Independent School District-25%in Wichita Falls city limits
(2) City View Independent School District-90%in Wichita Falls city limits for 1997-98
and after and 84%in 1996-97 and prior
(3) Iowa Park Consolidated Independent School District-2%in Wichita Falls city limits.
Only for 1997-98 and after due to City annexation.
(4) Wichita Falls Independent School District-99%in Wichita Falls city limits
99
EXHIBIT 1-8
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
SEPTEMBER 30, 2006
2005-2006 1996-1997
Percentage Percentage
Taxable of Total Taxable of Total
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Valuation Value Rank Valuation
Sikes Senter LP $ 53,866,528 1 1.16% $ - N/A 0.00%
TXU Electric Delivery Co 39,409,836 2 0.85% 30,679,917 3 1.19%
Wal-Mart 34,786,987 3 0.75% 11,035,565 6 0.43%
Southwestern Bell 30,782,822 4 0.66% 44,111,410 2 1.71%
Clinics of North Texas 15,975,977 5 0.34% 10,895,111 7 0.42%
Lowe's Home Center 13,185,428 6 0.28% 15,774,600 4 0.61%
Cingular Wireless LLC 12,955,444 7 0.28% - N/A 0.00%
Kell West Hospital 11,895,939 8 0.26% - N/A 0.00%
HD Development Properties 11,718,281 9 0.25% - N/A 0.00%
Time Warner Cable 11,011,985 10 0.24% - N/A 0.00%
JMB Group Trust Ill - N/A 0.00% 45,329,282 1 1.76%
ABB Control - N/A 0.00% 12,808,348 5 0.50%
Deauville Partnership - N/A 0.00% 10,776,707 8 0.42%
Panhandle Manufacturing - N/A 0.00% 9,668,197 9 0.37%
Vetrotex Certainteed - N/A 0.00% 4,403,800 10 0.17%
Totals $ 235,589,227 5.06% $ 195,482,937 7.57%
100
Wichita
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
1996-1997 $ 17,482,018 $ 16,936,754 96.88% $ 491,323 $ 17,428,077 99.69%
1997-1998 13,848,037 13,376,885 96.60% 412,997 13,789,882 99.58%
1998-1999 14 526,149 13 952,221 96.05% 515,051 14,467,272 99.59%
1999-2000 16,115,557 15,690,461 97.36% 349,680 16,040,141 99.53%
2000-2001 16,791,261 16,365,706 97.47% 336,084 16,701,790 99.47%
2001-2002 17,635,425 17,210,516 97.59% 344,225 17,554,741 99.54%
2002-2003 19,439,511 18,962,880 97.55% 358,681 19,321,561 99.39%
2003-2004 20,039,039 19,646,529 98.04% 235,482 19,882,011 99.22%
2004-2005 20,919,473 20,494,272 97.97% 163,734 20,658,006 98.75%
2005-2006 22,034,951 21,612,888 98.08% - 21,612,888 98.08%
101
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
1996-1997 $ 18,320,000 $ - $ 7,176 $ 50,790,000
1997-1998 16,850,000 - 5,027 56,995,000
1998-1999 15,315,000 - 2,676 61,040,000
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
102
EXHIBIT 1-10
Business-type Activities
Combination Total Percentage
Tax and Note Primary of Personal Per
Revenue Bonds Payable Government Income Capita
$ - $ 945,737 $ 70,062,913 2.18% $ 678.17
- - 73,850,027 2.28% 709.27
- 902,629 77,260,305 2.12% 728.87
- 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
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
1996-1997 $ 18,320,000 $ - $ 18,320,000 0.71% $ 177.33
1997-1998 16,850,000 - 16,850,000 0.62% 161.83
1998-1999 15,315,000 - 15,315,000 0.54% 144.48
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
103
EXHIBIT I-12
CITY OF WICHITA FALLS, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT(UNAUDITED)
SEPTEMBER 30, 2006
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 $ 13,630,000 100% $ 13,630,000
Overlapping:
Wichita County 4,340,000 100% 4,340,000
Burkburnett Independent School District 15,686,679 25% 3,921,670
City View Independent School District 10,333,927 90% 9,300,534
Iowa Park Consolidated Independent
School District 5,037,491 2% 100,750
Wichita Falls Independent School District 26,687,201 99% 26,420,329
Total overlapping 62,085,298 44,083,283
Total direct and overlapping bonded debt $ 75,715,298 $ 57,713,283
Sources:
(1) Listed taxing jurisdictions
(2) Cityof Wichita Falls PlanningDepartment
P
104
CITY OF WICHITA FALLS, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN -
LAST TEN FISCAL YEARS (UNAUDITED)
Total assessed property value per 2005 tax roll $ 3,719,230,165
Maximum tax rate* $ 2.25/$100
Current tax rate for 2005 tax year .59246/$100
Maximum tax rate in excess of 2005 tax rate 1.65754/$100
Total legal debt margin $ 61,647,728
1996-1997 1997-1998 1998-1999 1999-2000
Assessed value $ 2,583,230,992 $ 2,700,275,203 $ 2,832,502,412 $ 3,053,895,661
Maximum tax rate $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100
Current tax rate .67675/$100 .512838/$100 .512838/$100 .55194/$100
Maximum tax rate in excess of current rate 1.57325/$100 1.737162/$100 1.737162/$100 1.69806/$100
Total legal debt margin $ 40,640,682 $ 46,908,155 $ 49,205,156 $ 51,856,981
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$100 assessed valuation. The 2005 tax rate is$.59246
per$100 assessed valuation.
Maximum tax levy established by City Charter
105
EXHIBIT I-13
Fiscal Year
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006
$ 3,173,057,900 $ 3,338,764,157 $ 3,427,801,695 $ 3,530,992,589 $ 3,679,520,181 $ 3,719,230,165
$ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100 $ 2.25/$100
.55194/$100 .55194/$100 .59246/$100 .59246/$100 .59246/$100 .59246/$100
1.69806/$100 1.69806/$100 1.65754/$100 1.65754/$100 1.65754/$100 1.65754/$100
$ 53,880,427 $ 56,694,219 $ 56,817,184 $ 58,527,615 $ 60,989,519 $ 61,647,728
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
1996-1997 $ 19,578,557 $ 12,352,266 $ 7,226,291
1997-1998 21,050,438 12,868,869 8,181,569
1998-1999 22,692,770 13,726,601 8,966,169
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
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.
106
EXHIBIT 1-14
Debt Service Requirement
Principal (3) Interest Total Coverage
$1,605,000 $ 2,740,348 $4,345,348 1.66
1,855,000 2,674,570 4,529,570 1.81
2,140,000 2,889,642 5,029,642 1.78
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
I
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)
1996-1997 103,312 $ 3,217,962,176 $ 31,148 35.4 13.1 16,606 4.3%
1997-1998 104,121 3,244,930,965 31,165 35.4 13.1 16,382 4.4%
1998-1999 106,000 3,640,252,000 34,342 35.4 13.1 14,780 4.7%
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%
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
107
EXHIBIT 1-16
CITY OF WICHITA FALLS, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND SEVEN YEARS AGO(UNAUDITED)
SEPTEMBER 30, 2006
2005-2006 1998-1999(1)
Percentage Percentage
of Total of Total
City City
Employer Employees Rank Employment Employees Rank Employment
Sheppard Air Force Base 11,670 1 15.95% 13,088 1 N/A
Wichita Falls ISD 2,023 2 2.76% 1,700 3 N/A
North Texas State Hospital 2,016 3 2.75% 1,055 6 N/A
United Regional Health Care System 1,871 4 2.56% 2,100 2 N/A
James B.Allred Prison Unit 1,120 5 1.53% 837 8 N/A
City of Wichita Falls 1,096 6 1.50% 1,394 4 N/A
Howmet Corporation 988 7 1.35% 1,078 5 N/A
Vetrotex America 888 8 1.21% 1,000 7 N/A
Cingular Wireless 787 9 1.02% - N/A -
Cryovac Division-Sealed Air Corp. 750 10 1.01% 738 9 N/A
Stanley Works, Mechanics Division - N/A - 550 N/A
Totals 23,209 31.64% 23,540 0.00%
Notes:
(1) This data was not available for 1996-1997. Therefore the City used the 1998-1999 data.
Sources:
1998-1999 data is from Texas Workforce Commission. 2005-2006 data is from Wichita Falls BCI &Texas A&M.
108
I
CITY OF WICHITA FALLS, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST EIGHT FISCAL YEARS (UNAUDITED)
1998-1999 1999-2000 2000-2001
Administrative services 85.1 85.3 84.3
Police 260.5 265.5 264.5
Fire 155.0 155.0 156.0
Parks and recreation 70.6 70.9 71.1
Accounting/finance 19.5 19.5 21.5
Community development 34.6 35.8 35.9
Public works 80.0 80.0 79.0
Health 99.6 84.5 82.8
Traffic and transportation 47.0 50.0 51.1
MPEC Coliseum - - -
Water and sewer 159.9 160.6 162.6
Sanitation 92.9 88.9 82.9
Golf 19.5 18.6 20.4
Municipal Airport 1.0 1.0 1.0
Kickapoo Airport - - 5.3
Transit 19.7 18.6 19.6
Stormwater Drainage - - -
Notes:
This data is unavailable for fiscal years prior to 1998-1999. The City will provide more data as it
becomes available.
109
EXHIBIT 1-17
2001-2002 2002-2003 2003-2004 2004-2005 2005-2006
87.5 91.6 92.3 95.5 99.9
268.5 278.5 285.5 286.5 286.5
156.0 156.0 156.0 156.0 156.0
75.0 74.7 75.8 75.8 75.8
22.6 22.6 22.4 22.4 22.4
36.4 39.4 38.7 38.7 38.7
79.3 79.6 80.0 80.2 80.2
81.8 80.0 84.1 76.9 77.1
51.4 51.4 51.3 51.5 51.5
166.9 166.9 169.2 172.0 177.5
81.0 81.0 81.0 81.0 81.0
20.3 20.3 19.8 19.7 19.2
1.0 1.0 1.0 1.0 1.0
6.5 6.5 4.8 5.0 5.0
18.0 17.0 19.3 19.3 19.3
- - 0.3 1.3 1.3
CITY OF WICHITA FALLS, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS(UNAUDITED)
1996-1997 1997-1998 1998-1999 1999-2000
General government
Building permits issued 6,378 2,535 7,172 8,769
Building inspections conducted - - - -
Police
Physical arrests 6,371 5,972 5,950 5,851
Parking violations 2,558 2,465 601 1,049
Traffic violations 9,059 7,625 8,659 20,805
Fire
Emergency responses 6,267 6,299 6,667 6,912
Fires extinguished 774 752 747 832
Inspections 850 850 850 850
Refuse collection
Refuse collected (tons) 70,774 73,880 72,371 71,971
Recyclables collected - - - -
Library
Volumes in collection 110,000 129,364 127,460 129,890
Total volumes borrowed - - - -
Water
New connections - - - -
Water main breaks - - - 869
Average daily consumption 22,924 26,733 27,391 24,591
(thousands of gallons)
Wastewater
Average daily sewage treatment - - - 11,348
(thousands of gallons)
Transit
Total route miles 396,219 416,531 427,259 426,081
Passengers 172,034 181,603 171,945 200,237
Notes:
Data was not available for all items for all years. The City will provide more data as it becomes available.
110
EXHIBIT 1-18
Fiscal Year
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006
10,541 9,177 10,270 10,159 8,904 7,553
- 10,076 12,276 12,600 13,092 12,591
5,406 7,992 7,927 7,847 8,284 8,571
1,009 1,024 558 1,284 1,615 327
17,553 18,978 19,946 23,385 21,075 24,126
7,484 7,542 7,040 7,535 7,677 8,234
864 663 775 668 757 792
850 850 850 850 850 850
75,229 73,435 74,426 82,973 79,555 78,165
- - - 1,926 2,328 2,018
137,502 150,686 157,641 210,976 225,941 172,391
- - 292,359 304,644 295,088 293,884
245 292 327 335 312 325
996 795 737 691 573 881
24,280 21,700 21,900 20,400 22,100 23,680
13,224 12,560 12,348 11,026 12,404 11,097
422,673 424,115 407,121 - 450,938 435,446
223,502 196,217 245,908 - 247,303 229,601
CITY OF WICHITA FALLS, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
1996-1997 1997-1998 1998-1999 1999-2000
Police
Stations 1 1 1 1
Patrol units - - - -
Fire stations 9 9 9 9
Refuse collection
Collection trucks - - - -
Other public works
Streets(miles) 543 525 585 565
Streetlights 6,928 7,000 7,026 7,166
Traffic signals - - - -
Parks and recreation
Acreage 1,092 1,092 1,100 1,100
Playgrounds 34 36 37 38
Golf courses 1 1 1 1
Water
Water mains(miles) 800 708 708 712
Fire hydrants - - - -
Storage capacity(thousands of gallons) - - - -
Wastewater
Sanitary sewers(miles) 490 499 499 506
Storm sewers(miles) 40 40 40 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.
111
EXHIBIT 1-19
Fiscal Year
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006
1 1 1 1 1 1
- - - - 114
8 8 8 8 8 8
- - - - - 34
542 542 542 542 585 585
7,377 7,457 7,600 7,738 7,825 7,926
- 109 111 111 102
1,100 1,200 1,200 1,100 1,200 1,200
39 41 43 45 47 47
1 1 1 1 1 1
712 635 720 714 566 830
- - - - - 6,000
- - - - 14,000
506 516 506 508 529 529
41 41 41 41 96 96
- - - - - 56,600
12 12 12 12 12 12
Vilti„.:1:C:4 t11112)64
r
EXHIBIT J-1
CITY OF WICHITA FALLS , TEXAS
CASH AND INVESTMENTS
•
180
160
Kov'tr0• : 0 ys,,
140
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•
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2003
2004 I
September 30, 2005
2006
(UNAUDITED)
112
EXHIBIT J-2
CITY OF WICH ITA FALLS , TEXAS
TOTAL BONDS PAYABLE
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a 44e PR,.,.� R O R
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150 v h° w��,,�,S.,Cv v h o w°oy d � hvv4avavv Syvo
2002 ° � � eM
2003 �a.
2004 `
2005
2006
September 30,
(UNAUDITED)
113
EXHIBIT J-3
CITY OF WICHITA FALLS , TEXAS
GENERAL OBLIGATION BONDS PAYABLE
25
20
/—
C `,.
O 15 .4—
Cl)
" s:
c6 10
O :
o i
ey � �
..•`•o d>>••. o•Y✓y Aftido i S `'r
3••'•• EWL
r:
oo ao 4444 CPC•C:4:::!�3• :::: ** 0
f
20(J .
2003
2004
September 30, 2005
2006
(UNAUDITED)
114
EXHIBIT J-4
CITY OF WICHITA FALLS , TEXAS
REVENUE BONDS PAYABLE
200 r---------\
175 •ay` ° o,ahv.,...
et a.• tittIN:es a iiiivs a:ii:Z• vh•,�pigs.6
g
h
150 h %� k ��
cn
aO 125 ;
C 1 0 0 \ ks.,-,..0...:.,,.3.,,,,,,.%. ...t...:44 : . p2lbf,114.,,*.kNI:44,...1,0*., •4..,.# 4... ....,;1..,,:, -4,—,,,,, .--;..,;.---..,..-
(V a °oo'a Pt. �a Vie;
O b
x
a
'•
50 p a .e S aZ
25 • `fin4, wh �'e;
��:0 ... kIi
� z t,, x $�^,r as
2002 r.,x � rh
2003 y
2004
2005
September 30, 2D06
(UNAUDITED)
115
EXHIBIT J-5
CITY OF WICHITA FALLS, TEXAS
GENERAL FUND EQUITY
14
= 12
o 4
o 2002
2003
2004
September 34, 2005 2006
0Reservetl/Oesignaled Undesignated
EXHIBIT J-6
CITY OF WICHITA FALLS , TEXAS
COMPARISON OF TAX LEVY AND COLLECTIONS
25
:i ,......r_ _0*.1:i::::::::11 Aiiiimmr"iiiiii
20 a`S� ::::::::::::::
.,.,4,1.i,.„,:............,1..................:11,..........,..............1:,,,,,....i.,
ifigi! ' -....!
ingsC ;y:;:iii i.;:tii, tititititoto: ':':4444.:*.x.x*; eto
15
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L.. 10
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c� .... ;,.....i.l.....••...,....,.............•.....i....j..••
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5 >4+ •••• ii,.......i....i...,,,i,
0 •
1998 1999 "'
2000 2001 ,11 Tax Levy
2002 2003 Tax Collections
2004 2005
Years Ended September 30, 2006
D Tax Collections ®Tax Levy
(UNAUDITED)
117
EXHIBIT J-7
CITY OF WICHITA FALLS, TEXAS
REVENUES BY SOURCE - FYE 9/30/06
Fines and forfeitures
2%
i:r1 kk`F1�}j$:.. ,, k`` '. N ,.. Charges
38%r services
1?: y\ti ti1tiF1 ti tifi41M1 ''a.x.\ S 4�. .. ��, ,
titi?1 r 4f f 1 4
ti.1�.-.2.ti,....*?ti Y*11-tijtijti-vs:s;c:?1?;:
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:.:. ,:• •:•r.r.r•:•r.r•:.:. •r•r.r.:•:•r.:.:.:,:• r..•.•.•
.4.4.4.4.1,M1,4.1•:.4.1�4*11.....1.4.1.4• „....:.::�,ti?ti:::M141.,;,..
...:.r.:.r.:.:.:r.r.:...: r...:.r.„„...:.•:.r,.,,, r.r..,:.: •:.:.°.r..
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• r•:•:•:.r.r.r•:.r.r.r.:.:.r.r.r•..:.r r..:p p..., ..i..:.•1r•
.rti M1?ti?t?y:y.�.4.4.4�.M1.4.:.:�.4.4jti:ti••�.M1.1.1.1.1.4.4.4•..:;:'::'::.:?ti?L?ti?ti:4
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:41.4?ti?:?S?1?y?1?'y?ti?1?ti?ti?ti:i?ti?tijti?1:::1j4t '�::•'.'•:':•':•:;• ac'
4'' ,r.r.r•r.r.r.r.r,r.r•r. • •..., ..
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1':14r1:y•4t•;4:1;•.f1.1?y:ti;•�.;1 :.:;.:ti::..;'.;ti,,,:=;..:':';,:
�ti?ti:�I
:.•':111A..W.VA4;1.•..:..;.: 1?PtiZ+ti:1 s.:}?ti:ti??:.!ti?ti�h�ti:.*::0 •''yPPP ..;Taxes 1 : :p,p' ,
'1.11!:::".....1.::
"i!4 :::?rii..1r r1r : ..39/ ti ,rr1??vs r ,
Licenses and permits
2%
Intergovernmental
Contributions 9%
Miscellaneous 4%
6%
(UNAUDITED)
118
EXHIBIT J-8
CITY OF WICHITA FALLS, TEXAS
EXPENDITURES BY FUNCTION - FYE 9/30/06
Administrative Services Police
15% 13%
;,
Debt Service Fire
8% 8%
*x `,+,�4 • ,, Parks and Recreation
•
—_______._„ . .. .,`s, ,„ Accounting/Finance
Capital Outlay 1• •at:12:r •si:::: //j 1%4.1.y.y.•::•r•r+r:r:F:i:i•r'i?i.r.i.i•
•1.1••1•\••L•L•1•\•1.4•� 2 f1:1:•��f:J.r.2.r.J1f..r.2.2.f.r.f.2.:.J.J.r.:.2 f r r � .
o :1�ti:1�1:tif1.4:1:4.ti.4..1.ti.1.1.1.ti.ti.1.4.ti.4.\.,..\.L.,.�•. ..1:1:1 ... � ....
6/O ..r.r.r.:.. r.r;:4`4:4:it%.{{?{:ti2•+::{{{t{t4::•:5::,:. ��� .:4,•::;.•;.;.•.•.•;.;:.•.;.•.•.•.;.;.•.;.};.;.:.;.}•::....v. �
:.r.2.r.2.r.r.r.r.2.2.:.r.r•i:' �\:fir:ta't``<??::?[<?:a�':L}?>'.:..:;}.�}.?F:..:.......{•:}?v•:•���.
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.:}"` •,, : �. �Foe:Ld,4�• ♦ d a � a
4* ra0r• ❖ *:: e :'• Community Developmen
.{: `^ 0. ,k eA� dkY 3 •, kye S r , 'o.•I...\ - :D: ':44..:�w' ° �:�0 oe ro �3••••••••s .*> + , ,
5%
Traffic and Transportatio
11%
Health Public Works
30 0 27%
(UNAUDITED)
119
EXHIBIT J-9
CITY OF WICHITA FALLS , TEXAS
GENERAL GOVERNMENTAL REVENUES (GENERAL FUND ONLY)
60
55
50 /
45
,� ...Darr,r„ :¢v: � f F , `*. h
40 rr = .
fA I I;
.EY '`�` v • �°` .. ;j.'¢".rah,• h` v`` •H' Ak �''• *�' yi•°. ,`Y,
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kmai
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4 $4� Q��'
•
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t'.. ::::*:166,...,.$6 . ."•••• ...74.**1:.li .4..':01111!1!!
1997 4 •
1998
1999 M s
2000 _ •
a
2001 •
2002 2003 •:•-•::''..lt.:4•...e.:.:44:4:28.)v‘''*...$4.t..:r4:irt!
2004 Years Ended September 30, 2005 2006
(UNAUDITED)
120
EXHIBIT J-10
CITY OF WICHITA FALLS TEXAS
GENERAL GOVERNMENTAL EXPENDITURES (GENERAL FUND ONLY)
60
55
50
4 5 n:L+:yy..Ye'..:• ye,',r`•. s° l...''.**:,:,,,,I**:***.''
yy: .i� :e.em::Cdw e. r.L.er.�.•.�Z+.'r 00 00. e •.
♦A 40
'' 35 '
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30 ':4•:*- 4 • p4 %SE '^^ y4 4' °4 .h •,,r 4 S
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y sy o��,•,oyr, ?'' "'°@°:do; �::5'�b$;t; � h ''o' •o,...wo:�¢•'doys v;So $$$:41.G'p.•d`dy✓ Sri.ao oho ovo..¢yoo.: b{40000
od: v, i ysod,•..,.,.,,, ',,,v ho °y000q,,,.o.o, z5oo+.o$o.e �._
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'r 'yd; Z000+❖:•:dsv 'o •°•a;•,y:5:°•'•�dod'I°; y0'.'o'•'hoo 4' "'�
5 '•:: d'`o4.00y r++ c .' b'hya,.eo; .ya •`h• 00„° 49. .
4:
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y �, .y•y,.,yr❖.o yd yyd•y.» $.1.v.o °oo°s�°ao •
o �:' ?>i y S ,o, h4'o h''`,yS4¢•:?od1.0 4$ooyy°o+''oS.•:„
J, . I; 0 34+ho'h :yy°�,y'•',,h�ti7.':yy> _' h° h °d,K `do°0o°; y 44 y 4 y4`'d•• .vt�'o,✓4 j a,`+,°+soh -. 1'4.
'4'd,. e "•A+.4'b o`o•�S a� h y. :y _ 4E,bo+3 d*°. 't; p 'y, o
1 997 • ♦ p` ..�� y !� d 0 y h
1998 ,- � 4 4yCs.h x ;d°4x $:' ;: 4°° °
4y °
2000 .4dyooy�4.+°od'+°yw iy yhr o s'
2001 2002 '
2003
Years Ended September 30, 2004 2005
2006
(UNAUDITED)
121